Honeywell Inc Integrated Risk Management Case Study Solution and Analysis
Introduction
Honeywell Inc Integrated Risk Management Case Study Solution is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a number of services including; collecting info, processing information and communication services. Significant service sections of the business include; books, regulars, consultancy and distribution. The company has a large item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Honeywell Inc Integrated Risk Management Case Study Analysis has ended up being a specialized info service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has invested its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in basic and Honeywell Inc Integrated Risk Management Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Honeywell Inc Integrated Risk Management Case Study Analysis has particular strengths that can be made use of to minimize the hazards, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Honeywell Inc Integrated Risk Management Case Study Analysis in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and offer high worth to its clients.
• Strong financial position allows the company to consider several development chances with no fear of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of Honeywell Inc Integrated Risk Management Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose specific expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Honeywell Inc Integrated Risk Management Case Study Solution as well, but the development could be revived by availing particular chances provided in the market. The marketplace opportunities for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has positioned certain risks to Honeywell Inc Integrated Risk Management Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause declining market share of Honeywell Inc Integrated Risk Management Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using particular methods like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP could not be determined. The total financial efficiency of the business could be examined by utilizing the charts offered in the case Appendices. It could be examined from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Honeywell Inc Integrated Risk Management Case Study Help is growing and the business is rather efficient in drawing in a large number of customers at a potential price.
Together with it, the 2nd chart which reveals the yearly development in the Honeywell Inc Integrated Risk Management Case Study Analysis total assets, reveals that the company is rather efficient in including worth to its possessions through its earnings. The development in properties shows that the total worth of the firm is also increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business using the provided information might be the analysis relating to the distribution of overall revenues of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other company sections with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to learn the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the Honeywell Inc Integrated Risk Management Case Study Solution in specific includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. Together with it, the financial policies associated with the import of books affect the total business at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's preferences towards reading useful materials and so on. China has the greatest population in the world with a high population development, revealing the increasing variety of consumers of the Honeywell Inc Integrated Risk Management Case Study Help. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques and so on. Improvement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Honeywell Inc Integrated Risk Management Case Study Help consists of the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The alternative items for the released files is the documents provided in the digital libraries on particular websites. The changing consumer choices towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Honeywell Inc Integrated Risk Management Case Study Analysis consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Honeywell Inc Integrated Risk Management Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise among the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the business need an instant service to avoid the decreasing industry growth. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company must first gathers the data associated with the consumer demand, the potential markets, the government regulations and the data related to the competitors presented in the market. After that, the company needs to choose one prospective section for its preliminary offering. It ought to collect research study that how it could distinguish its digital publishing from the existing competitors' items. The actions above the company ought to go for the initial offering. If the preliminary offering proves a success, the business must opt for the other markets. In this way the company would have the ability to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing considering that 2008, showing a risk to the company's long term presence, but the situation can be managed by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
