Should The General Manager Be Fired Case Study Solution and Analysis
Intro
Should The General Manager Be Fired Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized information supplier and a large comprehensive Science and Technology publishing company 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 house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and Should The General Manager Be Fired Case Study Solution in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and innovation.
The change 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 important experience, technical resources and the capabilities of the business could be made use of 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
Should The General Manager Be Fired Case Study Solution has certain strengths that can be used to decrease the hazards, get rid of the weak point and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Should The General Manager Be Fired Case Study Help in the publishing industry i.e. 60 years permits the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and supply high worth to its clients.
• Strong monetary position permits the company to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its development program. The weak points of Should The General Manager Be Fired Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is declining given that 2008, affecting Should The General Manager Be Fired Case Study Solution as well, however the growth might be revived by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The company could likewise present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its large financial resources.
Hazards
The altering macro trends in the market and increasing competitors in the publishing industry has actually posed certain risks to Should The General Manager Be Fired Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Should The General Manager Be Fired Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular strategies like aggressive promo, quality products, etc.
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the risk of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to absence of data, the monetary ratios of CMP could not be calculated. However, the total monetary performance of the business might be examined by using the graphs given up the case Appendices. It might be evaluated from the Appendix III that the yearly overall profits of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of Should The General Manager Be Fired Case Study Analysis is growing and the company is rather efficient in bring in a large number of consumers at a potential rate.
Along with it, the 2nd chart which reveals the annual growth in the Should The General Manager Be Fired Case Study Help overall possessions, shows that the business is rather efficient in including value to its assets through its revenues. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the company using the given information could be the analysis relating to the circulation of total earnings of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sections with a prospective growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the various external forces impacting the efficiency of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces impacting CMP organisation are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
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 total GDP development of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing could decrease the need for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Should The General Manager Be Fired Case Study Solution consists of the concerns of ecological communities 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 ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal policies regarding the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design might be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The possible growth in the market tends to draw in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published files is the documents provided in the virtual libraries on certain sites. The altering consumer choices towards digital knowing increase the risk of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the Should The General Manager Be Fired Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Bargaining power of purchaser 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 purchasers needs high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Should The General Manager Be Fired Case Study Analysis include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same period, CIP releases comparable type of books. For a big period, CIP held the biggest market share, and still ranks 2nd and 3rd in various market segments, with a significant focus on educational publications. CIP serves as a hazard 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 market share of Should The General Manager Be Fired Case Study Help easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is recommended to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business need an immediate service to prevent the decreasing industry development. Therefore, introduction of digital publishing could prove to be an instant option with low amount of threat for the company. However, the company might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the company needs to initially gathers the data related to the customer demand, the potential markets, the federal government guidelines and the information related to the competitors presented in the market. After that, the business should choose one potential section for its initial offering. It should collect research that how it might separate its digital publishing from the existing rivals' items. The actions above the company should go for the initial offering. The company must go for the other markets if the preliminary offering shows a success. In this way the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining since 2008, revealing a threat to the business's long term presence, but the circumstance can be managed by thinking about a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the danger of failure for entryway in the new markets.
