The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Solution and Analysis
Intro
The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized information provider and a large detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Solution has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns 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 capabilities of the business 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
The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis has certain strengths that can be made use of to reduce the risks, conquer the weakness and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Help in the publishing industry i.e. 60 years enables the business to supply high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong monetary position enables the company to think about a number of advancement opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, 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 needs to propose particular growth plans to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, impacting The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis too, but the development could be restored by availing certain opportunities presented in the market. The marketplace opportunities for CMP include;
• The company might likewise introduce Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Threats
The changing macro trends in the market and increasing competition in the publishing market has actually posed particular dangers to The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific strategies like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing companies in the industry in addition to existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be calculated. The overall financial efficiency of the company might be evaluated by utilizing the graphs offered in the case Appendices. It might be analyzed from the Appendix III that the yearly total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the annual need of the products of The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis is growing and the company is rather efficient in attracting a a great deal of consumers at a prospective rate.
Together with it, the 2nd graph which reveals the annual growth in the The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Help total possessions, shows that the business is quite effective in including value to its possessions through its incomes. The development in properties shows that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data might be the analysis regarding the distribution of overall profits of the business. Major part of the profits of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a potential development to achieve its future advancement goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the efficiency of the company and the recent patterns in the external environment of the company. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the total political forces affecting CMP business are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the demand for the publishing market. Along with it, the economic policies related to the import of books affect the general company at CPM. However, China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and technology together with the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces affecting The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis consists of the issues of environmental 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 guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to examine the attractiveness of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the marketplace.
Danger of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on particular sites. The changing customer preferences towards digital learning increase the threat of substitution 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 Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 marketplace saturation, the purchasers needs high quality files at competitive costs.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes comparable type of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a major focus on educational publications. CIP serves as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as The Risk Management Foundation Of The Harvard Medical Institutions Inc 2 Case Study Analysis and CIP. It is also one of the popular gamers in the publishing industry 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 variety of Consumers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to accomplish its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to prevent the declining industry growth. Introduction of digital publishing might prove to be an immediate service with low amount of risk for the company. The business might also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the business needs to initially collects the information related to the consumer demand, the possible markets, the federal government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is declining because 2008, revealing a threat to the company's long term existence, however the scenario can be managed by considering a development plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the new markets.
