Siemens Electric Motor Works A Process Oriented Costing Case Study Solution and Analysis
Introduction
Siemens Electric Motor Works A Process Oriented Costing Case Study Solution is the largest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific difficulties to the publishing market in basic and Siemens Electric Motor Works A Process Oriented Costing Case Study Help in particular. These elements include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Siemens Electric Motor Works A Process Oriented Costing Case Study Analysis has specific strengths that can be made use of to reduce the hazards, get rid of the weakness and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Siemens Electric Motor Works A Process Oriented Costing Case Study Solution in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its successful journey provide a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and offer high worth to its consumers.
• Strong financial position enables the business to consider numerous development chances with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weak points which could increase constraints for the business in implementing its advancement program. The weaknesses of Siemens Electric Motor Works A Process Oriented Costing Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing market is declining considering that 2008, impacting Siemens Electric Motor Works A Process Oriented Costing Case Study Help as well, but the growth could be revived by availing particular chances presented in the market. The market opportunities for CMP consist of;
• The company might also introduce 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 reduce its reliance over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro patterns in the market and increasing competition in the publishing market has postured specific threats to Siemens Electric Motor Works A Process Oriented Costing Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in decreasing market share of Siemens Electric Motor Works A Process Oriented Costing Case Study Help due to the consumer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular methods like aggressive promo, quality items, etc.
• Entrance of brand-new publishing companies in the industry together with existence of high competitors increases the risk of losing the customer base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to lack of information, the financial ratios of CMP might not be calculated. Nevertheless, the overall monetary performance of the company might be examined by utilizing the charts given in 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 development rate, showing that the annual need of the products of Siemens Electric Motor Works A Process Oriented Costing Case Study Solution is growing and the company is rather effective in bring in a a great deal of clients at a potential rate.
Along with it, the second chart which shows the annual growth in the Siemens Electric Motor Works A Process Oriented Costing Case Study Analysis overall properties, shows that the company is quite efficient in adding worth to its properties through its incomes. The development in assets reveals that the overall value of the firm is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the given data might be the analysis concerning the circulation of overall profits of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business might move towards other service sectors with a potential growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the performance of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP organisation are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect 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 changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the rise of digital publishing could minimize the need for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Siemens Electric Motor Works A Process Oriented Costing Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is provided as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to attract brand-new entrants to the publishing market. Nevertheless, the presence of extreme competitors and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Threat of Substitution.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the virtual libraries on specific sites. The changing consumer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
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. Along with it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Siemens Electric Motor Works A Process Oriented Costing Case Study Solution consist of the providers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Siemens Electric Motor Works A Process Oriented Costing Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger 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 CMP quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is also one of the prominent gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an instant solution to prevent the decreasing industry development. For that reason, intro of digital publishing might show to be an instant solution with low amount of danger for the business. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company must initially gathers the information related to the customer need, the potential markets, the government guidelines and the data related to the competitors provided in the market. If the initial offering shows a success, the business ought to go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, revealing a risk to the company's long term existence, but the situation can be controlled by considering a development strategy in the future. The business might 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.