Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution and Analysis
Introduction
Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Analysis is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services including; gathering information, processing details and interaction services. Significant company segments of the company include; books, regulars, consultancy and circulation. The company has a huge item portfolio and its major items consist of books, periodicals, online media, exhibitions, research study reports etc. Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Analysis has become a specialized details service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
Although, Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These elements consist of;
• Entrance of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised a number of 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 business could be used 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
Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Help has specific strengths that can be utilized to reduce the dangers, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution in the publishing market i.e. 60 years allows the company to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities created by its effective journey offer a competitive advantage to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its clients.
• Strong monetary position allows the company to think about a number of advancement opportunities with no worry of raising fund externally.
Weaknesses
Together with the strengths, the business has certain weaknesses which might increase restraints for the company in implementing its development program. The weaknesses of Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business 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 specific expansion plans to avoid its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing market is declining considering that 2008, affecting Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution also, but the growth could be restored by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The business could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast financial resources.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually positioned specific risks to Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might lead to declining market share of Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution due to the consumer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by using specific methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the risk of losing the customer base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP could not be computed. It could be evaluated from the Appendix III that the yearly total revenues of Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Analysis throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of CMP is growing and the business is rather efficient in drawing in a large number of customers at a possible price.
Together with it, the second graph which shows the yearly development in the Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Analysis total properties, reveals that the business is quite effective in including worth to its possessions through its revenues. The development in assets reveals that the overall worth of the company is also increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company utilizing the offered data might be the analysis concerning the circulation of total profits of the company. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other organisation segments with a possible development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A brief PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution in particular includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate impact the need for the publishing market. Together with it, the economic policies related to the import of books affect the overall business at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques and so on. Improvement of science and innovation together with the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The regulation prohibits direct involvement of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to examine the beauty of the publishing market China. A short analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to draw in new entrants to the publishing market. However, the existence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the files presented in the digital libraries on certain sites. The changing customer preferences towards digital learning increase the hazard of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers 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 entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution include the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive market with the presence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Established in the same period, CIP publishes similar kind of books. For a large time period, CIP held the largest market share, and still ranks third and second in different market sectors, with a significant concentrate on academic publications. CIP functions 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 Sodexho A Creating Strategic Alignment With The Balanced Scorecard Case Study Help quickly in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the prominent gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the business to lose need of its products in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are moving towards digital publishing and the company need an immediate service to prevent the declining industry growth. Intro of digital publishing might show to be an immediate service with low amount of threat for the business. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business must initially gathers the information related to the consumer need, the possible markets, the government policies and the data related to the rivals presented in the market. If the preliminary offering proves a success, the business ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing since 2008, showing a risk to the company's long term presence, however the circumstance can be managed by thinking about a development plan in the future. The business might think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entrance in the brand-new markets.
