Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Solution and Analysis
Introduction
Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Help has spent its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Solution has specific strengths that can be utilized to lower the risks, get rid of the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high value to its consumers.
• Strong monetary position enables the business to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which could increase restrictions for the business in implementing its advancement program. The weaknesses of Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The growth of the publishing industry is decreasing because 2008, affecting Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Help as well, however the growth might be restored by availing particular chances presented in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain threats to Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular techniques like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry together with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial efficiency. Due to absence of data, the monetary ratios of CMP might not be calculated. The general financial efficiency of the company could be evaluated by utilizing the charts offered in the case Appendices. It could be analyzed from the Appendix III that the yearly total incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the items of Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Analysis is growing and the business is quite efficient in bring in a a great deal of clients at a prospective cost.
In addition to it, the second graph which shows the yearly growth in the Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Solution total properties, reveals that the company is quite efficient in adding value to its assets through its profits. The growth in possessions shows that the overall worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the distribution of overall earnings of the business. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation segments with a prospective growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces affecting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in general and the Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the economic policies related to the import of books impact the overall service at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and customer income level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement of science and technology together with the rise of digital publishing might decrease the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Solution consists of the concerns of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract brand-new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate new entrants to enter in the market.
Hazard of Replacement.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital learning increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Analysis consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Implementing Global Corporate Citizenship An Integrated Business Framework Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it could 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 easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to company scale. It is also one of the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant service to prevent the decreasing industry growth. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company must first collects the information related to the consumer need, the prospective markets, the federal government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a risk to the business's long term presence, however the scenario can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entryway in the new markets.
