Leadership And Management Case Study Solution and Analysis
Introduction
Leadership And Management Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting details, processing details and interaction services. Major organisation sections of the company consist of; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its major items include books, regulars, online media, exhibitions, research reports etc. Leadership And Management Case Study Analysis has become a specialized information company and a big detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and Leadership And Management Case Study Analysis in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change 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 scenario? Do the long valuable experience, technical resources and the capabilities of the company could be used 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
Leadership And Management Case Study Analysis has certain strengths that can be made use of to lower the threats, get rid of the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Leadership And Management Case Study Analysis in the publishing market i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position allows the company to consider a number of development chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Leadership And Management Case Study Solution are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Leadership And Management Case Study Analysis as well, but the development might be revived by availing specific chances presented in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its large funds.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has postured certain hazards to Leadership And Management Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Leadership And Management Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing particular techniques like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competition increases the danger of losing the consumer base.
Monetary Analysis.
The business has a rather competitive financial performance. Due to lack of data, the financial ratios of CMP could not be determined. Nevertheless, the general monetary efficiency of the business might be analyzed by utilizing the graphs given up the case Appendices. It might be examined from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Leadership And Management Case Study Help is growing and the company is quite efficient in attracting a large number of clients at a prospective rate.
Along with it, the 2nd graph which shows the annual development in the Leadership And Management Case Study Solution total properties, reveals that the business is rather effective in adding worth to its possessions through its incomes. The development in possessions reveals that the overall worth of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the given data could be the analysis relating to the circulation of overall earnings of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sectors with a prospective growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to find out the different external forces impacting the performance of the business and the current patterns in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Leadership And Management Case Study Help business are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are shifting 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 include the technological improvement in the reading methods and so on. Enhancement of science and technology together with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting Leadership And Management Case Study Solution includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be utilized to examine the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to attract brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Danger of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the virtual libraries on particular websites. The altering customer preferences towards digital knowing increase the danger of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market 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, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Leadership And Management Case Study Help include 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.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Leadership And Management Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is also one of the prominent players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sectors to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an instant option to avoid the decreasing industry development. Therefore, introduction of digital publishing might show to be an instant solution with low quantity of danger for the company. Nevertheless, the company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to first collects the data connected to the consumer need, the possible markets, the federal government regulations and the data related to the competitors presented in the market. After that, the company needs to decide one potential sector for its preliminary offering. It must gather research that how it could separate its digital publishing from the existing rivals' items. The actions above the company should go for the preliminary offering. The company needs to go for the other markets if the initial offering proves a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, revealing a threat to the business's long term existence, however the situation can be controlled by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
