The Balanced Scorecard In China Does It Work Case Study Solution and Analysis
Intro
The Balanced Scorecard In China Does It Work Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a number of services including; gathering information, processing info and communication services. Major business segments of the company consist of; books, periodicals, consultancy and distribution. The company has a large item portfolio and its significant items include books, regulars, online media, exhibits, research study reports and so on. The Balanced Scorecard In China Does It Work Case Study Solution has become a specialized details provider and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, The Balanced Scorecard In China Does It Work Case Study Analysis has invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market trends and forces bring certain obstacles to the publishing industry in basic and CMP in particular. These aspects consist of;
• Entryway of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this scenario? Do the long valuable experience, technical resources and the capabilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Balanced Scorecard In China Does It Work Case Study Solution has specific strengths that can be made use of to lower the risks, conquer the weak point and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of The Balanced Scorecard In China Does It Work Case Study Analysis in the publishing industry i.e. 60 years enables the business to supply high quality items at a lower cost utilizing its prior experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the business to think about several advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weak points which might increase constraints for the company in executing its advancement program. The weaknesses of The Balanced Scorecard In China Does It Work Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing company, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting The Balanced Scorecard In China Does It Work Case Study Solution as well, however the development could be restored by availing certain chances provided in the market. The marketplace opportunities for CMP consist of;
• The business might also introduce 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 growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its huge funds.
Threats
The altering macro trends in the market and increasing competition in the publishing market has actually presented particular risks to The Balanced Scorecard In China Does It Work Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of The Balanced Scorecard In China Does It Work Case Study Solution due to the customer shift towards digital libraries.
• The presence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing firms in the market along with existence of high competition increases the risk of losing the customer base.
Financial Analysis.
Due to lack of data, the financial ratios of CMP might not be calculated. It might be evaluated from the Appendix III that the annual total earnings of The Balanced Scorecard In China Does It Work Case Study Help throughout the period 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the items of CMP is growing and the company is quite effective in drawing in a large number of customers at a possible cost.
Along with it, the 2nd chart which shows the annual growth in the The Balanced Scorecard In China Does It Work Case Study Solution total properties, shows that the business is quite effective in including value to its properties through its profits. The development in assets shows that the total value of the company is also increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the given data could be the analysis relating to the circulation of overall incomes of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sectors with a potential growth to attain its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the numerous external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the frame of mind of the people about the communist ideology of the government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the The Balanced Scorecard In China Does It Work Case Study Help in specific includesthe costs of paper, the income level of consumers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies associated with the import of books affect the total organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading strategies and so on. Enhancement 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 The Balanced Scorecard In China Does It Work Case Study Help 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 utilized while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Model might be used to analyze the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to draw in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents presented in the virtual libraries on particular sites. The altering customer choices towards digital learning increase the danger of replacement for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Balanced Scorecard In China Does It Work Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Balanced Scorecard In China Does It Work Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 CMP quickly in the existing market circumstance.
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 regards to business scale. It is also one of the prominent players in the publishing industry with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the company need an immediate option to avoid the declining market growth. Intro of digital publishing could show to be an immediate solution with low amount of risk for the business. However, the business might also think about the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to first gathers the data related to the customer demand, the potential markets, the government regulations and the data related to the competitors provided in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing considering that 2008, revealing a danger to the business's long term existence, however the scenario can be managed by considering a development strategy in the future. The company could think about introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the danger of failure for entryway in the brand-new markets.
