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 Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting details, processing details and communication services. Major business sections of the company include; books, regulars, consultancy and circulation. The business has a large product portfolio and its major items consist of books, periodicals, online media, exhibitions, research reports and so on. Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis has actually become a specialized details provider and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain obstacles to the publishing market in basic and Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution in specific. These elements include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions 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 abilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis has particular strengths that can be used to reduce the threats, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis in the publishing market i.e. 60 years permits the business to supply high quality products at a lower expense using its previous experiences.
• The technical resources and capabilities created by its successful journey supply a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position enables the business to consider a number of development opportunities with no worry of raising fund externally.
Along with the strengths, the company has certain weaknesses which might increase restrictions for the company in implementing its development program. The weak points of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term development.
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 Help as well, however the development could be restored by availing specific chances provided in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
The altering macro patterns in the market and increasing competitors in the publishing market has presented certain risks to Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using certain strategies like aggressive promo, quality items, and so on
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the risk of losing the customer base.
The business has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be computed. However, the overall monetary efficiency of the business might be evaluated by utilizing the charts given in the case Appendices. It might be examined from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis is growing and the company is rather effective in drawing in a large number of clients at a prospective price.
Together with it, the 2nd chart which shows the yearly growth in the Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help total properties, reveals that the business is rather efficient in adding worth to its assets through its profits. The development in assets reveals that the total worth of the company is likewise increasing with increasing the overall revenues. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data could be the analysis regarding the circulation of total profits of the company. Huge part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a potential growth to attain its future development objective.
PESTEL analysis might be carried out to discover the numerous external forces affecting the performance of the company and the current patterns in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces affecting CMP service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies related to the import of books impact the general business at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer preferences.
Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing might lower the need for the CMP products, if specific actions would not be taken soon.
Ecological forces affecting Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Analysis includes the concerns of ecological communities over the use 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 should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in new entrants to the publishing market. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the released documents is the files provided in the virtual libraries on specific sites. The changing customer preferences towards digital knowing increase the risk of replacement for the market.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Help consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier 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 market saturation, the buyers requires high quality files at competitive rates.
CMP operates in a highly competitive market with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Making Balanced Scorecard Work To Implement Business Strategies At Magic Technology Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 circumstance.
Posts and telecommunication Press (PTP).
Another close competitor 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 service scale. It is likewise among the prominent players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-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 business need an immediate solution to prevent the decreasing industry growth. The business might also consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to initially collects the data related to the customer demand, the prospective markets, the federal government regulations and the information related to the rivals provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
The growth of the publishing industry is decreasing because 2008, showing a danger to the business's long term presence, however the scenario can be managed by considering a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entryway in the new markets.