Strategic Human Resource Management At Aes Case Study Solution and Analysis
Introduction
Strategic Human Resource Management At Aes Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; gathering information, processing details and interaction services. Major organisation sectors of the company include; books, periodicals, consultancy and circulation. The business has a large item portfolio and its major products include books, periodicals, online media, exhibits, research study reports and so on. Strategic Human Resource Management At Aes Case Study Analysis has actually become a specialized information service provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular difficulties to the publishing industry in general and Strategic Human Resource Management At Aes Case Study Solution in specific. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth 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 situation? Do the long important experience, technical resources and the abilities of the company could be made use of 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
Strategic Human Resource Management At Aes Case Study Analysis has certain strengths that can be used to reduce the dangers, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Strategic Human Resource Management At Aes Case Study Help in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense using its previous experiences.
• The technical resources and abilities produced by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and supply high value to its customers.
• Strong monetary position allows the company to consider a number of advancement opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weaknesses which could increase constraints for the business in executing its development program. The weak points of Strategic Human Resource Management At Aes Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Strategic Human Resource Management At Aes Case Study Analysis too, however the development could be revived by availing specific opportunities presented in the market. The market opportunities for CMP include;
• The company could likewise present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has posed certain threats to Strategic Human Resource Management At Aes Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Strategic Human Resource Management At Aes Case Study Help due to the consumer shift towards virtual 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 get a strong consumer base by utilizing particular techniques like aggressive promotion, quality items, etc.
• Entrance of brand-new publishing firms in the market together with presence of high competitors increases the hazard of losing the client base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. The total financial performance of the business might be examined by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the yearly overall incomes of CMP throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of Strategic Human Resource Management At Aes Case Study Help is growing and the business is rather effective in bring in a large number of customers at a prospective cost.
In addition to it, the second graph which reveals the annual growth in the Strategic Human Resource Management At Aes Case Study Solution overall properties, reveals that the company is quite efficient in adding worth to its possessions through its revenues. The development in assets reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the business utilizing the given information could be the analysis regarding the circulation of overall incomes 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 segments with a possible development to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to find out the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP service are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Strategic Human Resource Management At Aes Case Study Help in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books affect the general business at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer 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 customer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading strategies and so on. Improvement of science and innovation along with the rise of digital publishing could decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Strategic Human Resource Management At Aes Case Study Help consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning 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 Federal government to be entered in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in new entrants to the publishing market. However, the existence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Risk of Substitution.
Hazard of Alternative is high for the Chinese Publishing Market. The substitute products for the released documents is the files provided in the virtual libraries on specific websites. The altering customer choices towards digital learning increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Strategic Human Resource Management At Aes Case Study Analysis include 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 supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 market saturation, the buyers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Strategic Human Resource Management At Aes Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the same period as Strategic Human Resource Management At Aes Case Study Analysis and CIP. It is also one of the prominent players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of possible resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose need of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the business in addition to the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the business require an immediate option to prevent the decreasing industry development. Intro of digital publishing might show to be an instant service with low quantity of risk for the company. The business could likewise consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business should initially collects the data related to the consumer need, the possible markets, the government guidelines and the data related to the rivals provided in the market. If the preliminary offering proves a success, the company 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 declining because 2008, revealing a hazard to the company's long term existence, however the situation can be managed by considering a development plan in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the new markets.
