Societe Generale Jerome Kerviel Affair Case Study Solution and Analysis
Intro
Societe Generale Jerome Kerviel Affair Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized info service provider and a big extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, Societe Generale Jerome Kerviel Affair Case Study Solution has spent its 60 years journey efficiently, being a successful publishing house, however, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in specific. These aspects consist of;
• Entryway of the brand-new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised several concerns 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 made use of to strive for 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 Jerome Kerviel Affair Case Study Solution has certain strengths that can be made use of to decrease the threats, overcome the weak point and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Societe Generale Jerome Kerviel Affair Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position enables the business to think about numerous development opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints for the business in implementing its advancement program. The weak points of Societe Generale Jerome Kerviel Affair Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It must propose specific growth plans to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing industry is declining given that 2008, impacting Societe Generale Jerome Kerviel Affair Case Study Help too, however the growth might be revived by availing specific chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might 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 growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually positioned specific dangers to Societe Generale Jerome Kerviel Affair Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Societe Generale Jerome Kerviel Affair Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific methods like aggressive promo, quality items, and so on
• Entryway of new publishing companies in the market in addition to existence of high competition increases the threat of losing the customer base.
Monetary Analysis.
Due to absence of data, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall profits of Societe Generale Jerome Kerviel Affair Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the company is quite efficient in bring in a large number of clients at a potential rate.
Together with it, the second chart which shows the yearly growth in the Societe Generale Jerome Kerviel Affair Case Study Help overall properties, shows that the company is rather efficient in adding worth to its assets through its earnings. The development in properties shows that the total value of the firm is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the offered data could be the analysis regarding the circulation of overall earnings of the business. Huge 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 company sections with a potential growth to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to learn the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is given 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 federal government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the overall political forces impacting Societe Generale Jerome Kerviel Affair Case Study Solution business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation in addition to the rise of digital publishing could lower the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Ecological forces affecting Societe Generale Jerome Kerviel Affair Case Study Help consists of 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 disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be utilized to analyze the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to attract new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Replacement.
Risk 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 particular websites. The changing customer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Societe Generale Jerome Kerviel Affair Case Study Solution consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Societe Generale Jerome Kerviel Affair Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 current market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Societe Generale Jerome Kerviel Affair Case Study Help and CIP. It is also one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business sectors to the new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is suggested to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company require an immediate option to prevent the declining industry growth. For that reason, introduction of digital publishing could prove to be an immediate solution with low amount of threat for the company. However, the business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company should first gathers the data associated with the customer demand, the potential markets, the government regulations and the data associated with the competitors presented in the market. After that, the business needs to decide one prospective sector for its preliminary offering. It ought to collect research that how it might differentiate its digital publishing from the existing competitors' products. The steps above the business need to go for the preliminary offering. If the preliminary offering proves a success, the business must choose the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a danger to the company's long term presence, but the situation can be controlled by thinking about a development plan in the future. The business could think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
