Standard Chartered Bank Valuation And Capital Structure Case Study Solution and Analysis
Introduction
Standard Chartered Bank Valuation And Capital Structure Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP provides a variety of services consisting of; collecting info, processing information and interaction services. Major organisation sectors of the company consist of; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its major products consist of books, periodicals, online media, exhibits, research reports etc. Standard Chartered Bank Valuation And Capital Structure Case Study Analysis has ended up being a specialized information company and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Concerns
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring particular difficulties to the publishing industry in basic and Standard Chartered Bank Valuation And Capital Structure Case Study Solution in particular. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous concerns 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 utilized 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
Standard Chartered Bank Valuation And Capital Structure Case Study Solution has certain strengths that can be utilized to lower the dangers, conquer the weakness and get the chances. Strengths of CMP are provided as follows;
• The long term experience of Standard Chartered Bank Valuation And Capital Structure Case Study Analysis in the publishing market i.e. 60 years enables the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong financial position permits the business to consider numerous development chances with no fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weaknesses which might increase restraints for the company in implementing its advancement program. The weaknesses of Standard Chartered Bank Valuation And Capital Structure Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose particular growth strategies to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, impacting Standard Chartered Bank Valuation And Capital Structure Case Study Solution too, but the development might be revived by availing specific opportunities presented in the market. The marketplace chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Risks
The altering macro patterns in the market and increasing competitors in the publishing market has actually positioned specific hazards to Standard Chartered Bank Valuation And Capital Structure Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Standard Chartered Bank Valuation And Capital Structure Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competition increases the threat of losing the client base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP could not be computed. It could be analyzed from the Appendix III that the annual total incomes of Standard Chartered Bank Valuation And Capital Structure Case Study Help during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the company is quite efficient in attracting a big number of consumers at a possible price.
In addition to it, the 2nd chart which shows the yearly development in the Standard Chartered Bank Valuation And Capital Structure Case Study Solution overall assets, reveals that the business is rather efficient in adding value to its assets through its profits. The growth in possessions shows that the overall value of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis regarding the circulation of total incomes of the company. Major part of the incomes 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 business segments with a potential growth to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the different external forces impacting the efficiency of the business 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 could have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the general political forces impacting Standard Chartered Bank Valuation And Capital Structure Case Study Help organisation are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces affecting the publishing sector in basic and the Standard Chartered Bank Valuation And Capital Structure Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market. Along with it, the economic policies related to the import of books impact the overall organisation at CPM. Nevertheless, China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards reading helpful products and so on. China has the highest population in the world with a high population growth, showing the increasing variety of consumers of the Standard Chartered Bank Valuation And Capital Structure Case Study Help. However, the customer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading techniques etc. Enhancement of science and innovation along with the rise of digital publishing might lower the demand for the CMP items, if specific actions would not be taken quickly.
Environmental.
Environmental forces affecting Standard Chartered Bank Valuation And Capital Structure Case Study Solution consists of the concerns 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 ought to not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be used to analyze the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the documents provided in the virtual libraries on particular sites. The altering consumer preferences towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Standard Chartered Bank Valuation And Capital Structure Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest 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 market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Standard Chartered Bank Valuation And Capital Structure Case Study Analysis consist of;.
• Chemical Market 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 publishes comparable kind of books. For a big time period, CIP held the biggest market share, and still ranks second and third in numerous market sections, with a significant concentrate on academic publications. CIP serves as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Standard Chartered Bank Valuation And Capital Structure Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Standard Chartered Bank Valuation And Capital Structure Case Study Help and CIP. It is likewise one of the prominent gamers in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company along with the market analysis and the competitor analysis, Alternative 2 is advised to CMP to accomplish its future advancement. As the choices are shifting towards digital publishing and the business need an immediate option to avoid the declining industry development. Therefore, intro of digital publishing could show to be an instant service with low amount of threat for the business. The company might likewise think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to initially gathers the information related to the consumer need, the potential markets, the federal government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, revealing a danger to the business's long term presence, however the circumstance can be controlled by thinking about a development strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
