Risk Management Assignment Case Study Solution and Analysis
Risk Management Assignment Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a number of services consisting of; gathering info, processing information and interaction services. Significant business segments of the business include; books, regulars, consultancy and distribution. The business has a huge item portfolio and its major products include books, periodicals, online media, exhibits, research study reports etc. Risk Management Assignment Case Study Help has ended up being a specialized information supplier and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring certain challenges to the publishing industry in general and Risk Management Assignment Case Study Help in specific. These factors include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement 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 circumstance? Do the long valuable experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Risk Management Assignment Case Study Solution has certain strengths that can be utilized to reduce the risks, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Risk Management Assignment Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge item portfolioof CMP assists it to diversify its risk and provide high worth to its consumers.
• Strong monetary position enables the business to think about a number of development chances without any worry of raising fund externally.
In addition to the strengths, the company has specific weak points which could increase constraints for the company in executing its development program. The weaknesses of Risk Management Assignment Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Although, the development of the publishing market is declining considering that 2008, impacting Risk Management Assignment Case Study Analysis as well, however the development could be restored by availing specific opportunities presented in the market. The market chances for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
The changing macro trends in the market and increasing competitors in the publishing market has positioned particular risks to Risk Management Assignment Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Risk Management Assignment Case Study Solution due to the customer shift towards digital libraries.
• The existence 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 get a strong customer base by using certain strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the market in addition to existence of high competition increases the risk of losing the customer base.
The company has a quite competitive monetary performance. Due to lack of information, the financial ratios of CMP might not be computed. However, the overall monetary efficiency of the business could be evaluated by utilizing the graphs given up the case Appendices. It could be analyzed from the Appendix III that the annual overall profits of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of Risk Management Assignment Case Study Solution is growing and the company is quite effective in bring in a a great deal of clients at a prospective rate.
Along with it, the second chart which shows the annual growth in the Risk Management Assignment Case Study Help overall possessions, shows that the business is quite effective in adding value to its properties through its earnings. The development in properties shows that the total value of the company is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company using the given information might be the analysis relating to the circulation of overall incomes of the business. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other company segments with a possible development to attain its future advancement objective.
PESTEL analysis could be conducted to find out the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. It could be said that the general political forces impacting CMP organisation are high. The federal government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Improvement of science and technology along with the increase of digital publishing might reduce the demand for the CMP items, if certain actions would not be taken soon.
Ecological forces impacting Risk Management Assignment Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be harmful for the environment.
Legal regulations 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 Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance prohibits direct participation 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 evaluate the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the marketplace.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the documents presented in the digital libraries on certain websites. The changing customer preferences towards digital learning increase the risk of replacement for the market.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Risk Management Assignment Case Study Help include the suppliers of the paper for publishing files. 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.
Haggling power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality files at competitive prices.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Risk Management Assignment Case Study Solution include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks 2nd and third in numerous market sectors, with a major focus on educational publications. CIP functions as a risk 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 Risk Management Assignment Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to consumers.
• Competitors 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 items in the market.
As the preferences are moving towards digital publishing and the company need an instant option to prevent the decreasing market growth. The business could likewise think about the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the business ought to initially collects the data related to the customer need, the possible markets, the federal government policies and the information related to the rivals provided in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing considering that 2008, showing a hazard to the business's long term presence, however the circumstance can be managed by thinking about an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.