Integrated Reporting At Aegon 4 Case Study Solution and Analysis
Introduction
Integrated Reporting At Aegon 4 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering info, processing details and communication services. Significant business sectors of the business include; books, regulars, consultancy and distribution. The company has a huge item portfolio and its major products consist of books, regulars, online media, exhibitions, research reports etc. Integrated Reporting At Aegon 4 Case Study Analysis has actually become a specialized information provider and a large comprehensive Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and Integrated Reporting At Aegon 4 Case Study Analysis in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Integrated Reporting At Aegon 4 Case Study Analysis has specific strengths that can be used to decrease the threats, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Integrated Reporting At Aegon 4 Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high value to its customers.
• Strong financial position enables the company to consider a number of advancement opportunities with no fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weak points which could increase restrictions for the business in executing its advancement program. The weaknesses of Integrated Reporting At Aegon 4 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing industry is declining since 2008, affecting Integrated Reporting At Aegon 4 Case Study Solution as well, but the development could be revived by availing specific chances provided in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured certain risks to Integrated Reporting At Aegon 4 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Integrated Reporting At Aegon 4 Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing particular strategies like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the danger of losing the customer base.
Monetary Analysis.
The company has a rather competitive financial performance. Due to lack of information, the financial ratios of CMP might not be computed. However, the general monetary performance of the business might be analyzed by using the graphs given up the case Appendices. It could be evaluated from the Appendix III that the annual overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of Integrated Reporting At Aegon 4 Case Study Solution is growing and the company is rather effective in drawing in a large number of consumers at a potential rate.
In addition to it, the second chart which reveals the yearly growth in the Integrated Reporting At Aegon 4 Case Study Help overall possessions, reveals that the business is quite efficient in including value to its properties through its earnings. The growth in properties shows that the total value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis regarding the distribution of total incomes of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other service segments with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the numerous external forces impacting the performance of the company and the current patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of the people 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. Therefore, it could be said that the total political forces impacting Integrated Reporting At Aegon 4 Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading helpful products etc. China has the greatest population in the world with a high population growth, showing the increasing variety of customers of the Integrated Reporting At Aegon 4 Case Study Solution. The consumer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading strategies and so on. Enhancement of science and technology in addition to the increase of digital publishing could reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Integrated Reporting At Aegon 4 Case Study Analysis consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Danger of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement products for the published documents is the documents presented in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the danger of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence 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. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Integrated Reporting At Aegon 4 Case Study Analysis include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling 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 marketplace saturation, the buyers requires high quality documents at competitive prices.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Integrated Reporting At Aegon 4 Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 quickly in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate service to prevent the decreasing industry development. The company might likewise think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should first collects the information related to the customer need, the possible markets, the federal government guidelines and the data 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 way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing because 2008, showing a threat to the company's long term presence, however the scenario can be controlled by considering a development strategy in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entryway in the brand-new markets.
