Risk Management Assignment Case Study Solution and Analysis
Intro
Risk Management Assignment Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing information and communication services. Significant organisation sectors of the business consist of; books, regulars, consultancy and distribution. The company has a vast item portfolio and its major products include books, periodicals, online media, exhibits, research study reports etc. Risk Management Assignment Case Study Help has become a specialized info service provider and a large comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Issues
Although, Risk Management Assignment Case Study Solution has actually spent its 60 years journey efficiently, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous 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 capabilities of the company could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Risk Management Assignment Case Study Help has specific strengths that can be utilized to minimize the dangers, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Risk Management Assignment Case Study Help in the publishing market i.e. 60 years allows the company to supply high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the business to think about several advancement opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the business has specific weaknesses which could increase restrictions for the company in executing its advancement program. The weaknesses of Risk Management Assignment Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose particular expansion plans to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting Risk Management Assignment Case Study Solution too, but the development could be restored by availing specific opportunities provided in the market. The marketplace opportunities for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its huge financial resources.
Hazards
The altering macro patterns in the market and increasing competition in the publishing industry has posed specific hazards to Risk Management Assignment Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of Risk Management Assignment Case Study Solution due to the consumer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using certain methods like aggressive promo, quality products, and so on
• Entrance of new publishing firms in the industry in addition to presence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be calculated. It could be analyzed from the Appendix III that the yearly overall revenues of Risk Management Assignment Case Study Solution during the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the company is rather effective in drawing in a large number of clients at a prospective rate.
Along with it, the 2nd graph which reveals the yearly growth in the Risk Management Assignment Case Study Solution overall assets, shows that the company is quite effective in adding value to its properties through its revenues. The growth in possessions reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the given information could be the analysis relating to the circulation of total earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other business sectors with a prospective growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable impact on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in general and the Risk Management Assignment Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. In addition to it, the financial policies connected to the import of books affect the overall company at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading informative materials etc. China has the highest population worldwide with a high population growth, showing the increasing variety of customers of the Risk Management Assignment Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology along with the rise of digital publishing might minimize the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces impacting Risk Management Assignment Case Study Analysis consists of the concerns 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 used while publishing needs to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to draw in new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the files provided in the digital libraries on specific sites. The altering consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Risk Management Assignment Case Study Analysis consist of the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer 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 requires high quality documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Risk Management Assignment Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the exact same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks second and 3rd in various market sections, with a significant concentrate on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Risk Management Assignment Case Study Help easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is also among the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an instant solution to prevent the decreasing industry growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business must initially gathers the information related to the customer demand, the possible markets, the government guidelines and the data related to the rivals provided in the market. If the initial offering shows a success, the company needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing given that 2008, showing a risk to the business's long term existence, but the situation can be managed by considering an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
