Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution and Analysis
Introduction
Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP offers a number of services consisting of; collecting information, processing info and interaction services. Major business segments of the business consist of; books, regulars, consultancy and distribution. The business has a huge product portfolio and its major products include books, regulars, online media, exhibits, research reports etc. Jim Johnsons Re Election To The Goldman Sachs Board Case Study Help has actually become a specialized information company and a large comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing market in general and Jim Johnsons Re Election To The Goldman Sachs Board Case Study Analysis in specific. These factors consist of;
• Entryway of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The change 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 abilities of the business could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Jim Johnsons Re Election To The Goldman Sachs Board Case Study Analysis has specific strengths that can be utilized to reduce the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Jim Johnsons Re Election To The Goldman Sachs Board Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position allows the business to think about a number of advancement chances without any fear of raising fund externally.
Weak points
Along with the strengths, the business has certain weak points which could increase restrictions for the business in implementing its development program. The weaknesses of Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining considering that 2008, affecting Jim Johnsons Re Election To The Goldman Sachs Board Case Study Analysis as well, however the development could be revived by availing specific chances provided in the market. The market chances for CMP include;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by utilizing its large financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually presented certain threats to Jim Johnsons Re Election To The Goldman Sachs Board Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could cause declining market share of Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular strategies like aggressive promo, quality products, and so on
• Entrance of new publishing companies in the market along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall profits of Jim Johnsons Re Election To The Goldman Sachs Board Case Study Analysis during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the company is rather efficient in attracting a big number of consumers at a potential rate.
Along with it, the second chart which reveals the annual development in the Jim Johnsons Re Election To The Goldman Sachs Board Case Study Help total assets, shows that the company is quite efficient in including value to its properties through its incomes. The development in properties shows that the overall value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis relating to the distribution of total revenues of the business. Major part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Jim Johnsons Re Election To The Goldman Sachs Board Case Study Help service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in general and the Jim Johnsons Re Election To The Goldman Sachs Board Case Study Analysis in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books impact the overall organisation at CPM. Nevertheless, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards reading informative products and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of customers of the Jim Johnsons Re Election To The Goldman Sachs Board Case Study Analysis. However, the customer 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 changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and innovation together with the rise of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Hazard of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The substitute items for the published documents is the files presented in the digital libraries on particular sites. The altering customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution include the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer 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 needs high quality documents at competitive prices.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 current market situation.
Posts and telecommunication Press (PTP).
It was also established in the exact same duration as Jim Johnsons Re Election To The Goldman Sachs Board Case Study Solution and CIP. It is also one of the popular gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business need an immediate option to prevent the declining industry development. Intro of digital publishing could prove to be an immediate option with low amount of danger for the company. Nevertheless, the company could also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must first collects the data related to the consumer need, the potential markets, the federal government policies and the information related to the rivals provided in the market. If the initial offering shows a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing given that 2008, revealing a danger to the company's long term presence, but the circumstance can be managed by considering a development plan in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to avoid the threat of failure for entrance in the new markets.
