Lehman Brothers Crisis In Corporate Governance Case Study Solution and Analysis
Lehman Brothers Crisis In Corporate Governance Case Study Help is the biggest 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 thorough Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in general and Lehman Brothers Crisis In Corporate Governance Case Study Help in particular. These factors consist of;
• Entrance of the new publishing firms in the market.
• Decreasing development 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 scenario? Do the long important experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Lehman Brothers Crisis In Corporate Governance Case Study Help has certain strengths that can be utilized to reduce the hazards, overcome the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Lehman Brothers Crisis In Corporate Governance Case Study Analysis in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its effective journey provide a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and supply high value to its clients.
• Strong financial position enables the company to consider several development chances without any fear of raising fund externally.
Along with the strengths, the business has certain weak points which might increase constraints for the business in executing its development program. The weaknesses of Lehman Brothers Crisis In Corporate Governance Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
The growth of the publishing industry is declining considering that 2008, affecting Lehman Brothers Crisis In Corporate Governance Case Study Solution as well, but the growth might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP include;
• The business might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its large funds.
The altering macro trends in the market and increasing competition in the publishing industry has presented certain dangers to Lehman Brothers Crisis In Corporate Governance Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to declining market share of Lehman Brothers Crisis In Corporate Governance Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain strategies like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry together with existence of high competitors increases the threat of losing the client base.
The business has a quite competitive monetary efficiency. Due to lack of information, the monetary ratios of CMP might not be computed. Nevertheless, the general monetary efficiency of the company might be examined by using the graphs given up the case Appendices. It could be examined from the Appendix III that the yearly total earnings of CMP during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Lehman Brothers Crisis In Corporate Governance Case Study Analysis is growing and the company is quite effective in bring in a large number of consumers at a prospective cost.
Along with it, the second graph which shows the annual development in the Lehman Brothers Crisis In Corporate Governance Case Study Help total possessions, shows that the business is rather efficient in adding worth to its assets through its revenues. The growth in possessions shows that the total value of the firm is also increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis concerning the circulation of overall profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a possible development to accomplish its future advancement objective.
PESTEL analysis might be performed to discover the different external forces impacting the performance of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector might 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 directed by the Promotion Department of the Communist Celebration of China. It could be stated that the overall political forces affecting CMP business are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Lehman Brothers Crisis In Corporate Governance Case Study Help in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the need for the publishing market. In addition to it, the economic policies related to the import of books affect the total company at CPM. Nevertheless, China's financial conditions are quite favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Lehman Brothers Crisis In Corporate Governance Case Study Analysis consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal guidelines 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 Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Design could be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to attract brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Risk of Replacement is high for the Chinese Publishing Market. The substitute items for the published files is the documents provided in the digital libraries on certain sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the market.
Competitive rivalry in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Lehman Brothers Crisis In Corporate Governance Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
CMP operates in a highly competitive industry with the existence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Lehman Brothers Crisis In Corporate Governance Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same duration, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks third and 2nd in numerous market sectors, with a significant concentrate on academic publications. CIP serves as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Lehman Brothers Crisis In Corporate Governance Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the same period as Lehman Brothers Crisis In Corporate Governance Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the declining industry development. The company might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company must initially collects the information associated with the consumer need, the possible markets, the government regulations and the data connected to the competitors presented in the market. After that, the business ought to choose one possible section for its preliminary offering. It ought to collect research that how it could differentiate its digital publishing from the existing competitors' items. After all the actions above the company ought to choose the initial offering. If the preliminary offering shows a success, the company needs to choose the other markets. In this method the business would have the ability to implement its digital publishing program.
Although, the development of the publishing industry is declining given that 2008, showing a risk to the business's long term existence, but the scenario can be controlled by considering an advancement plan in the future. The company could consider introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the brand-new markets.