Strategic Human Resource Management At Aes Case Study Solution and Analysis
Introduction
Strategic Human Resource Management At Aes Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Strategic Human Resource Management At Aes Case Study Solution has actually spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
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 circumstance? Do the long important experience, technical resources and the abilities of the business could be made use of 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
Strategic Human Resource Management At Aes Case Study Help has certain strengths that can be utilized to decrease the dangers, overcome the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Strategic Human Resource Management At Aes Case Study Solution in the publishing industry i.e. 60 years allows the business to offer high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position enables the company to consider several advancement chances with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weak points which might increase restraints for the company in implementing its advancement program. The weaknesses of Strategic Human Resource Management At Aes Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, impacting Strategic Human Resource Management At Aes Case Study Solution too, however the growth could be restored by availing particular chances provided in the market. The market chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its vast financial resources.
Threats
The changing macro patterns in the market and increasing competitors in the publishing industry has actually posed specific risks to Strategic Human Resource Management At Aes Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Strategic Human Resource Management At Aes Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by using specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing companies in the industry together with existence of high competitors increases the hazard of losing the client base.
Monetary 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 revenues of Strategic Human Resource Management At Aes Case Study Solution throughout the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather effective in attracting a big number of consumers at a potential rate.
Along with it, the 2nd chart which shows the yearly growth in the Strategic Human Resource Management At Aes Case Study Analysis overall possessions, shows that the company is quite efficient in adding value to its possessions through its revenues. The growth in possessions reveals that the overall value of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis concerning the distribution of overall earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other organisation sections with a possible growth to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to find out the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP company 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 basic and the CMP in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to fulfill the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods 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 soon.
Environmental.
Ecological forces impacting Strategic Human Resource Management At Aes Case Study Help includes the issues of ecological 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 utilized while publishing ought to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to evaluate the beauty of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the industry tends to attract new entrants to the publishing industry. The presence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Market. The alternative products for the released documents is the files presented in the digital libraries on specific websites. The changing consumer choices towards digital learning increase the risk of replacement for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Strategic Human Resource Management At Aes Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating 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 purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Strategic Human Resource Management At Aes Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks second and third in various market segments, with a significant concentrate on academic publications. CIP serves 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 might wean the marketplace share of Strategic Human Resource Management At Aes Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to organisation scale. It is also one of the popular gamers in the publishing industry with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential 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 present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
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 brand-new one can lead the company to lose need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the business need an instant service to avoid the decreasing market growth. The company could likewise consider the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business should first collects the information related to the customer demand, the potential markets, the government policies and the data related to the rivals provided 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 execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a danger to the business's long term presence, however the circumstance can be controlled by considering an advancement strategy in the future. The business might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the risk of failure for entrance in the new markets.
