Operations Fundamentals Final Exam Case Study Solution and Analysis
Introduction
Operations Fundamentals Final Exam Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Operations Fundamentals Final Exam Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing industry in general and CMP in specific. These elements consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
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 important experience, technical resources and the abilities of the company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Operations Fundamentals Final Exam Case Study Analysis has specific strengths that can be made use of to minimize the dangers, overcome the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Operations Fundamentals Final Exam Case Study Solution in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower expense using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong financial position enables the business to consider several advancement opportunities with no fear of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weak points which might increase restraints for the business in executing its development program. The weak points of Operations Fundamentals Final Exam Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It must propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is decreasing since 2008, affecting Operations Fundamentals Final Exam Case Study Solution also, however the growth could be revived by availing certain chances presented in the market. The market opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has actually presented certain risks to Operations Fundamentals Final Exam Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Operations Fundamentals Final Exam Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using specific techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with presence of high competition increases the risk of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It could be examined from the Appendix III that the yearly total earnings of Operations Fundamentals Final Exam Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, revealing that the yearly need of the products of CMP is growing and the company is quite effective in bring in a big number of consumers at a prospective cost.
Together with it, the second graph which shows the annual development in the Operations Fundamentals Final Exam Case Study Solution total assets, shows that the company is quite efficient in adding worth to its possessions through its incomes. The growth in assets reveals that the overall value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another financial analysis of the company using the offered data could be the analysis regarding the circulation of total earnings of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a potential growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the various external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. It could be said that the general political forces impacting CMP organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces impacting Operations Fundamentals Final Exam Case Study Help consists of the concerns of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to draw in new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the documents presented in the virtual libraries on certain sites. The altering consumer preferences towards digital learning increase the threat of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Operations Fundamentals Final Exam Case Study Analysis 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 general 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 market saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Operations Fundamentals Final Exam Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a risk 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 present market situation.
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 organisation scale. It is likewise among the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant option to prevent the declining market development. For that reason, intro of digital publishing might prove to be an immediate solution with low amount of risk for the company. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company should initially collects the data related to the consumer demand, the potential markets, the government regulations and the information related to the competitors presented in the market. After that, the company ought to choose one potential section for its initial offering. It should gather research that how it could differentiate its digital publishing from the existing rivals' products. After all the steps above the company must go for the initial offering. If the initial offering shows a success, the business needs to opt for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, showing a risk to the company's long term existence, however the scenario can be controlled by thinking about an advancement strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entryway in the brand-new markets.
