Strategic Human Resource Management Case Study Solution and Analysis
Strategic Human Resource Management Case Study Analysis is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually ended up being a specialized info supplier and a large thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Although, Strategic Human Resource Management Case Study Solution has invested its 60 years journey smoothly, being an effective publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in specific. These aspects include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Strategic Human Resource Management Case Study Analysis has particular strengths that can be made use of to decrease the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Strategic Human Resource Management Case Study Analysis in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities produced by its successful journey provide a competitive benefit to CMP.
• Vast item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong financial position permits the business to think about a number of advancement opportunities with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which might increase constraints for the company in executing its development program. The weak points of Strategic Human Resource Management Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term development.
The development of the publishing industry is declining since 2008, impacting Strategic Human Resource Management Case Study Solution as well, but 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 using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by using its huge funds.
The altering macro trends in the market and increasing competitors in the publishing industry has postured particular dangers to Strategic Human Resource Management Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in decreasing market share of Strategic Human Resource Management Case Study Help due to the consumer shift towards digital libraries.
• The presence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entrance of brand-new publishing firms in the market in addition to existence of high competitors increases the threat of losing the customer base.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual total earnings of Strategic Human Resource Management Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the business is rather efficient in bring in a large number of consumers at a possible price.
In addition to it, the 2nd chart which shows the yearly growth in the Strategic Human Resource Management Case Study Analysis total assets, shows that the business is rather efficient in adding value to its possessions through its revenues. The growth in assets reveals that the overall value of the firm is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business utilizing the offered information might be the analysis concerning the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation sections with a prospective growth to achieve its future advancement goal.
PESTEL analysis could be performed to discover the different external forces affecting the efficiency of the business and the current trends in the external environment of the business. A short PESTEL analysis of the business is given as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting Strategic Human Resource Management Case Study Solution service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in general and the CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine impact the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's preferences towards checking out informative materials etc. China has the highest population in the world with a high population development, revealing the increasing number of consumers of the Strategic Human Resource Management Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing could minimize the demand for the CMP products, if particular actions would not be taken soon.
Environmental forces affecting Strategic Human Resource Management Case Study Analysis includes the concerns of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model might be used to evaluate the beauty of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to draw in brand-new entrants to the publishing industry. The existence of extreme competition and the requirement of big capital tends to demotivate new entrants to go into in the market.
Hazard of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the documents provided in the virtual libraries on specific sites. The changing customer choices towards digital knowing increase the hazard of replacement for the industry.
Competitive competition in the publishing industry is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Strategic Human Resource Management 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 total 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 buyers requires high quality documents at competitive costs.
CMP runs in an extremely competitive market with the presence of large number of rivals. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Strategic Human Resource Management Case Study Analysis consist of;.
• Chemical Market 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 could wean the market share of CMP quickly in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also one of the prominent players in the publishing market with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Development chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Usage of possible resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the brand-new one can lead the company to lose need of its items in the market.
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 choices are shifting towards digital publishing and the business need an immediate option to prevent the declining market development. For that reason, intro of digital publishing could prove to be an immediate solution with low quantity of risk for the company. The business might likewise consider the growth program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially collects the information related to the customer need, the possible markets, the government policies and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company should go for the other markets. In this method the company would be able to implement its digital publishing program.
Although, the development of the publishing industry is declining given that 2008, revealing a danger to the company's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the new markets.