Societe Generale A The Jerome Kerviel Affair 2 Case Study Solution and Analysis
Intro
Societe Generale A The Jerome Kerviel Affair 2 Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; collecting details, processing information and interaction services. Significant organisation sectors of the company include; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant products include books, periodicals, online media, exhibits, research study reports etc. Societe Generale A The Jerome Kerviel Affair 2 Case Study Solution has become a specialized info service provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Societe Generale A The Jerome Kerviel Affair 2 Case Study Analysis has actually invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing market in general and CMP in particular. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the abilities of the company could be used 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
Societe Generale A The Jerome Kerviel Affair 2 Case Study Solution has specific strengths that can be used to decrease the risks, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Societe Generale A The Jerome Kerviel Affair 2 Case Study Help in the publishing market i.e. 60 years allows the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and provide high worth to its consumers.
• Strong financial position enables the business to consider numerous advancement chances with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which could increase constraints for the business in executing its advancement program. The weak points of Societe Generale A The Jerome Kerviel Affair 2 Case Study Help are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional 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 specific growth strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing given that 2008, affecting Societe Generale A The Jerome Kerviel Affair 2 Case Study Solution as well, however the growth could be revived by availing particular opportunities provided in the market. The marketplace chances for CMP consist of;
• The company could also introduce Digital Publishing by using its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast financial resources.
Risks
The changing macro patterns in the market and increasing competition in the publishing industry has positioned specific hazards to Societe Generale A The Jerome Kerviel Affair 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to declining market share of Societe Generale A The Jerome Kerviel Affair 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong consumer base by using specific techniques like aggressive promo, quality products, etc.
• Entryway of new publishing firms in the market in addition to existence of high competitors increases the danger of losing the client base.
Financial Analysis.
The company has a rather competitive financial performance. Due to absence of information, the monetary ratios of CMP might not be calculated. The overall monetary performance of the business could be analyzed by utilizing the charts provided in the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Societe Generale A The Jerome Kerviel Affair 2 Case Study Solution is growing and the business is rather efficient in attracting a large number of clients at a prospective rate.
Together with it, the second graph which shows the annual development in the Societe Generale A The Jerome Kerviel Affair 2 Case Study Analysis overall properties, shows that the company is quite effective in including worth to its possessions through its earnings. The growth in assets shows that the total value of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given information might be the analysis concerning the circulation of overall profits of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other service sections with a potential development to attain its future advancement objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces impacting the performance of the company and the current trends in the external environment of the company. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in basic and the Societe Generale A The Jerome Kerviel Affair 2 Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. Along with it, the economic policies associated with the import of books impact the general business at CPM. China's financial conditions are quite beneficial for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and technology along with the increase of digital publishing could reduce the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Ecological forces impacting Societe Generale A The Jerome Kerviel Affair 2 Case Study Analysis consists of the issues of environmental 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 utilized while publishing needs 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 authorized initially by the Federal government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model might be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Industry. The alternative items for the published files is the files presented in the virtual libraries on certain sites. The changing customer preferences towards digital learning increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Societe Generale A The Jerome Kerviel Affair 2 Case Study Solution include the providers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 documents at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the existence of a great deal of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Societe Generale A The Jerome Kerviel Affair 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Societe Generale A The Jerome Kerviel Affair 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to achieve its future development. As the choices are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing industry development. Introduction of digital publishing might prove to be an instant option with low quantity of risk for the business. The business might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business should initially collects the information related to the consumer need, the possible markets, the federal government regulations and the data related to the rivals provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a hazard to the company's long term presence, however the circumstance can be controlled by considering a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at instant basis and to prevent the threat of failure for entryway in the new markets.
