The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Solution and Analysis
Intro
The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering details, processing info and communication services. Significant service sections of the business consist of; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its significant products include books, periodicals, online media, exhibitions, research study reports and so on. The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help has ended up being a specialized info provider and a big comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing house, nevertheless, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Analysis in specific. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company 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 Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Solution has particular strengths that can be utilized to decrease the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help in the publishing industry i.e. 60 years permits the business to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and offer high value to its customers.
• Strong financial position permits the company to think about several advancement chances with no fear of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which could increase restraints for the company in executing its advancement program. The weaknesses of The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth plans to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing market is declining since 2008, affecting The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help as well, however the growth might be restored by availing specific chances provided in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by utilizing its huge financial resources.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has actually postured certain dangers to The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Solution due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain methods like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
The business has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. The general financial performance of the business might be evaluated by utilizing the graphs given in the case Appendices. It might be evaluated from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help is growing and the business is rather effective in drawing in a a great deal of customers at a prospective cost.
In addition to it, the 2nd chart which reveals the yearly growth in the The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help total possessions, reveals that the business is rather effective in adding value to its possessions through its profits. The growth in possessions shows that the total worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided information might be the analysis regarding the circulation of total revenues of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other service sections with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the efficiency of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the state of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it might be stated that the overall political forces impacting The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Analysis service are high. The government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards reading informative materials and so on. China has the highest population worldwide with a high population growth, revealing the increasing variety of customers of the The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Analysis. However, the consumer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP should concentrate on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation forbids direct involvement of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to examine the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to attract brand-new entrants to the publishing industry. However, the presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the marketplace.
Hazard of Alternative.
Threat of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the files provided in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the danger of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The existence 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. In addition to it, new entrants are also participating in the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive market with the presence of large number of rivals. However, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as The Bullwhip Phenomenon In The Management Of An Oil Refinery Case Study Help and CIP. It is likewise 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
• Minimizing dependence over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers 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 business sections to the new one can lead the business to lose need of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate solution to prevent the declining market growth. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the business should initially gathers the information related to the customer need, the possible markets, the government policies and the data related to the rivals provided in the market. If the initial offering shows a success, the company should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
The growth of the publishing market is declining considering that 2008, revealing a risk to the company's long term existence, however the scenario can be managed by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
