Note On Organization Structure Case Study Solution and Analysis
Intro
Note On Organization Structure Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP has ended up being a specialized information provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Note On Organization Structure Case Study Analysis has spent its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of questions 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 abilities of the company could be made use of to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Note On Organization Structure Case Study Analysis has certain strengths that can be made use of to reduce the threats, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Note On Organization Structure Case Study Help in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high worth to its consumers.
• Strong monetary position permits the company to think about numerous development chances without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which might increase restrictions for the business in executing its advancement program. The weaknesses of Note On Organization Structure Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth plans to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing considering that 2008, impacting Note On Organization Structure Case Study Help too, but the development might be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its large financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing industry has posed particular threats to Note On Organization Structure Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Note On Organization Structure Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain strategies like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry together with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to lack of information, the financial ratios of CMP could not be computed. The general monetary performance of the business might be analyzed by utilizing the graphs provided in the case Appendices. It might be examined from the Appendix III that the annual total incomes of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Note On Organization Structure Case Study Help is growing and the business is quite efficient in drawing in a a great deal of customers at a prospective price.
Together with it, the 2nd graph which shows the yearly development in the Note On Organization Structure Case Study Help overall properties, shows that the company is rather efficient in including worth to its possessions through its revenues. The growth in assets reveals that the total worth of the company is also increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the given information might be the analysis concerning the circulation of overall revenues 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 service sectors with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the efficiency of the company and the current trends in the external environment of the business. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Note On Organization Structure Case Study Solution business are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the customer's choices towards reading helpful materials etc. China has the highest population worldwide with a high population development, showing the increasing number of customers of the Note On Organization Structure Case Study Help. Nevertheless, the customer choices are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Enhancement of science and innovation along with the rise of digital publishing might minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Note On Organization Structure Case Study Analysis includes the issues of environmental communities 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 should not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the industry tends to attract new entrants to the publishing market. Nevertheless, 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.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the released files is the files provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the danger of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Note On Organization Structure Case Study Help include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates 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. Major competitors of Note On Organization Structure Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes similar type of books. For a large period, CIP held the biggest market share, and still ranks 3rd and 2nd in different market segments, with a significant focus on instructional publications. CIP serves 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 might wean the market share of Note On Organization Structure Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the company need an instant service to prevent the decreasing industry growth. The company might likewise think about the growth program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should initially collects the information related to the customer demand, the possible markets, the federal government policies and the data related to the rivals presented in the market. If the preliminary offering shows a success, the business needs to go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is decreasing considering that 2008, revealing a risk to the company's long term presence, but the situation can be managed by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the brand-new markets.
