Risk Exposure And Risk Management At Korea First Bank 2 Case Study Solution and Analysis
Introduction
Risk Exposure And Risk Management At Korea First Bank 2 Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing home, however, the changing macro market patterns and forces bring specific difficulties to the publishing market in general and Risk Exposure And Risk Management At Korea First Bank 2 Case Study Solution in specific. These factors include;
• Entryway of the brand-new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised a number of 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 abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Risk Exposure And Risk Management At Korea First Bank 2 Case Study Solution has particular strengths that can be utilized to reduce the threats, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Risk Exposure And Risk Management At Korea First Bank 2 Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive benefit to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position allows the company to think about numerous development chances without any worry of raising fund externally.
Weak points
Together with the strengths, the business has specific weaknesses which might increase constraints for the company in executing its development program. The weaknesses of Risk Exposure And Risk Management At Korea First Bank 2 Case Study Solution are given 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 should propose particular expansion plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing because 2008, impacting Risk Exposure And Risk Management At Korea First Bank 2 Case Study Help as well, but the development might be revived by availing specific opportunities provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing market has actually postured specific threats to Risk Exposure And Risk Management At Korea First Bank 2 Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could result in declining market share of Risk Exposure And Risk Management At Korea First Bank 2 Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the market together with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of data, the financial ratios of CMP might not be calculated. It could be evaluated from the Appendix III that the annual total profits of Risk Exposure And Risk Management At Korea First Bank 2 Case Study Help during the period 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the business is quite efficient in drawing in a large number of consumers at a possible price.
Along with it, the 2nd graph which reveals the yearly development in the Risk Exposure And Risk Management At Korea First Bank 2 Case Study Help overall possessions, shows that the company is quite effective in adding worth to its properties through its incomes. The growth in assets shows that the total worth of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis regarding the circulation of total earnings of the company. Huge 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 segments with a possible growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the various external forces impacting the performance of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces impacting CMP organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques etc. Enhancement of science and innovation together with the rise of digital publishing might decrease the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Ecological forces affecting Risk Exposure And Risk Management At Korea First Bank 2 Case Study Solution includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to examine the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Danger of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the released files is the files presented in the virtual libraries on specific sites. The altering customer preferences towards digital knowing increase the hazard of substitution for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP etc. 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 significant providers of the Risk Exposure And Risk Management At Korea First Bank 2 Case Study Analysis include the suppliers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of rivals. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Risk Exposure And Risk Management At Korea First Bank 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact 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 gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the market analysis and the competitor analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the decreasing industry growth. Therefore, intro of digital publishing could show to be an instant solution with low quantity of danger for the company. The company could also consider the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business should first gathers the information related to the consumer demand, the possible markets, the federal government regulations and the information associated with the competitors provided in the market. After that, the company needs to choose one possible segment for its initial offering. It needs to gather research that how it could distinguish its digital publishing from the existing competitors' products. The steps above the company must go for the initial offering. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining given that 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the danger of failure for entrance in the brand-new markets.
