Rewards And Incentives Management Case Study Solution and Analysis
Rewards And Incentives Management Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized details company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Rewards And Incentives Management Case Study Help has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing industry in basic and CMP in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The transformation 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 important experience, technical resources and the capabilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Rewards And Incentives Management Case Study Analysis has certain strengths that can be utilized to lower the risks, overcome the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Rewards And Incentives Management Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the company to think about several development chances with no fear of raising fund externally.
Along with the strengths, the business has particular weaknesses which might increase restraints for the business in implementing its development program. The weaknesses of Rewards And Incentives Management Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term development.
The development of the publishing market is decreasing because 2008, affecting Rewards And Incentives Management Case Study Help as well, however the growth might be revived by availing particular chances presented in the market. The marketplace opportunities for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to reduce its dependence over Chinese markets by utilizing its huge funds.
The changing macro patterns in the market and increasing competitors in the publishing market has presented certain threats to Rewards And Incentives Management Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of Rewards And Incentives Management Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the industry together with presence of high competitors increases the danger of losing the consumer base.
Due to absence of information, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the yearly overall earnings of Rewards And Incentives Management Case Study Solution during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of CMP is growing and the business is rather efficient in bring in a big number of clients at a prospective rate.
Together with it, the second graph which shows the yearly growth in the Rewards And Incentives Management Case Study Help overall properties, reveals that the business is quite efficient in adding value to its properties through its revenues. The growth in properties reveals that the total worth of the company is also increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the provided data could be the analysis concerning the distribution of overall earnings of the company. 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 organisation sections with a possible growth to attain its future advancement goal.
PESTEL analysis might be performed to find out the different external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the overall political forces impacting CMP company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the total GDP development of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful products and so on. China has the greatest population on the planet with a high population growth, showing the increasing variety of consumers of the Rewards And Incentives Management Case Study Solution. The customer preferences are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological forces impacting the CMP consist of the technological development in the reading methods and so on. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Ecological forces affecting Rewards And Incentives Management Case Study Analysis includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design might be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. Nevertheless, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the virtual libraries on specific websites. The changing consumer choices towards digital learning increase the hazard of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Rewards And Incentives Management Case Study Help consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
CMP runs in a highly competitive industry with the existence 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 Rewards And Incentives Management Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP publishes comparable type of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in numerous market sections, with a significant focus on academic publications. CIP functions 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 Rewards And Incentives Management Case Study Solution easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
As the preferences are shifting towards digital publishing and the company require an immediate solution to prevent the decreasing industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must initially collects the information related to the customer demand, the possible markets, the federal government regulations and the information related to the competitors presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
The growth of the publishing market is declining given that 2008, showing a threat to the company's long term existence, however the circumstance can be controlled by considering a development strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.