Lehman Brothers Crisis In Corporate Governance Case Study Solution and Analysis
Intro
Lehman Brothers Crisis In Corporate Governance Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a big comprehensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
CMP has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring particular difficulties to the publishing market in general and Lehman Brothers Crisis In Corporate Governance Case Study Help in particular. These aspects consist of;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 valuable experience, technical resources and the capabilities of the company could be made use of 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
Lehman Brothers Crisis In Corporate Governance Case Study Help has certain strengths that can be made use of to minimize the risks, get rid of the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Lehman Brothers Crisis In Corporate Governance Case Study Solution in the publishing market i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong monetary position allows the company to consider a number of development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restrictions for the business in implementing its development program. The weak points of Lehman Brothers Crisis In Corporate Governance Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific expansion plans to prevent its reliance over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Lehman Brothers Crisis In Corporate Governance Case Study Solution as well, however the development might be restored by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its large funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured particular risks to Lehman Brothers Crisis In Corporate Governance Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Lehman Brothers Crisis In Corporate Governance Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of competitors 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 using particular strategies like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry in addition to existence of high competitors increases the hazard of losing the customer base.
Monetary Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly overall incomes of Lehman Brothers Crisis In Corporate Governance Case Study Solution throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is rather efficient in attracting a big number of consumers at a prospective price.
Along with it, the second chart which shows the yearly development in the Lehman Brothers Crisis In Corporate Governance Case Study Solution total properties, shows that the business is rather efficient in adding worth to its possessions through its earnings. The growth in properties shows that the overall value of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the given information might be the analysis concerning the distribution of overall incomes of the company. 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 might move towards other organisation sections with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the efficiency of the company and the recent trends in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be said that the overall political forces affecting CMP business are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Lehman Brothers Crisis In Corporate Governance Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the financial policies related to the import of books affect the overall company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out useful products and so on. China has the highest population worldwide with a high population growth, showing the increasing number of customers of the Lehman Brothers Crisis In Corporate Governance Case Study Analysis. However, the consumer choices are shifting towards digital publishing instead of the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing could reduce the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting Lehman Brothers Crisis In Corporate Governance Case Study Solution consists of the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to analyze the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract brand-new entrants to the publishing industry. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Risk of Alternative is high for the Chinese Publishing Market. The replacement items for the released files is the documents presented in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the hazard of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Lehman Brothers Crisis In Corporate Governance Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Lehman Brothers Crisis In Corporate Governance Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the exact same duration, CIP publishes similar kind of books. For a large period, CIP held the biggest market share, and still ranks 2nd and third in various market sections, with a major concentrate on instructional publications. CIP acts as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Lehman Brothers Crisis In Corporate Governance Case Study Solution easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing industry with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 service sectors to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company need an immediate solution to prevent the declining industry development. The business might 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 company must initially collects the data related to the consumer demand, the prospective markets, the government regulations and the information related to the competitors provided in the market. If the preliminary offering shows a success, the business must 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 market is decreasing because 2008, showing a hazard to the company's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
