Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution and Analysis
Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing information and interaction services. Major service sections of the business include; books, regulars, consultancy and distribution. The company has a vast item portfolio and its major products include books, periodicals, online media, exhibitions, research study reports etc. Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis has actually become a specialized details company and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution has actually spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific obstacles to the publishing market in basic and CMP in particular. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The change of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help has particular strengths that can be utilized to minimize the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its threat and supply high worth to its customers.
• Strong financial position enables the company to consider a number of development opportunities without any fear of raising fund externally.
Together with the strengths, the business has specific weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help are offered as follows;
• Despite of being a science and technology publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific growth strategies to prevent its dependence over the Chinese markets to achieve long term growth.
The development of the publishing market is decreasing considering that 2008, affecting Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis as well, but the growth could be restored by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The company might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge funds.
The altering macro patterns in the market and increasing competition in the publishing market has posed certain threats to Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing specific strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the industry along with existence of high competition increases the threat of losing the client base.
Due to absence of information, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual total profits of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the company is quite effective in bring in a large number of clients at a potential cost.
Along with it, the 2nd graph which reveals the annual development in the Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution total assets, shows that the business is rather efficient in including worth to its assets through its profits. The development in assets reveals that the overall value of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the circulation of total profits of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other service segments with a prospective development to achieve its future advancement objective.
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the company and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the state of mind of individuals 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. It could be said that the overall political forces impacting CMP service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in general and the Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. In addition to it, the financial policies associated with the import of books affect the overall service at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's preferences towards reading useful materials etc. China has the highest population on the planet with a high population development, showing the increasing variety of consumers of the Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis. However, the consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing customer preferences.
Technological forces impacting the CMP include the technological advancement in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing might minimize the need for the CMP items, if particular actions would not be taken soon.
Ecological forces impacting Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help consists of the concerns of environmental 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 must not be harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to bring in new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The alternative products for the released files is the files presented in the digital libraries on particular websites. The altering customer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive prices.
CMP runs in a highly competitive market with the existence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of organisation scale. It is also one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing reliance over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the business need an instant service to prevent the decreasing market growth. For that reason, introduction of digital publishing could prove to be an immediate solution with low quantity of danger for the company. The company could also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business needs to first gathers the data connected to the consumer demand, the prospective markets, the government policies and the data connected to the rivals provided in the market. After that, the company should decide one prospective segment for its preliminary offering. It needs to collect research that how it could separate its digital publishing from the existing competitors' items. After all the steps above the business need to choose the preliminary offering. The company needs to go for the other markets if the preliminary offering proves a success. In this way the business would have the ability to execute its digital publishing program.
The growth of the publishing industry is decreasing because 2008, showing a hazard to the company's long term presence, however the circumstance can be controlled by thinking about an advancement plan in the future. The company could think about presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.