Strategy Formulation by Mc Graw Hill to Deal with Changing Macro Environment

BBS003-1
Foundations of
Business
Communication

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE analysis:............................................................................................................................3
SWOT ANALYSIS:........................................................................................................................4
Porters five forces analysis:.............................................................................................................5
RECOMMENDATION...................................................................................................................6
CONCLUSION................................................................................................................................7
References........................................................................................................................................8

INTRODUCTION
Mc Graw hill is a learning science company that is delivering learning experiences and
helping students, partners, educators and professionals to drive the named results. Mc Graw hill
is a organisation that is presently facing certain issues that are arsing because of the biggest
challenges that are taking place in the industry. There are certain issues that are faced because of
the present changing environment because of the COVID 19 situation (Babey, , 2020). So there
is a need to make a detailed evaluation of the different factors with regards to the changing
macro environment. The report deals with a case study based on how there will be strategy
formulation by Mc Graw hill to deal with the negative impacts of the changing macro
environment with the break of COVID pandemic.
MAIN BODY
PESTLE analysis:
Political factors: Mc Graw hill is affected by the changing nature of political environment in
united states economy that is continually expanding and there is expectation of market for
professional education resources to grow among the industry sectors.
Economic factors: There has been a situation of significant government expenditures in
education, low college graduation areas and insufficient placement of jobs in United kingdom
has resulted in the additional economic and social cost that has resulted in increasing aggregate
per capital student loan debt and higher incidents of default (Brown, , 2020). Students in UK are
succeeding based on the higher competitive global markets.
Social factors: With the changing external environment McGraw hill education will be
focussing on use of a data driven approach of improvement of outcomes and innovation. It will
lead to engagement of students with offering them high level of personalised learning
experiences.
Legal factors: There is a shift of McGraw hill education to a multi year license that may affect
their comparison with GAAP revenue as Compared to prior periods and lead to increase or
decrease on the sales that is reflected in the operations on a delayed basis.

Environment factors: The external environment is changing very fast and there is need to focus
on making a detailed analysis of the impact of lock downs, supply chain disruptions and the
changes in customer behaviour that is going to affect McGaw hill in the coming time period
(Chaturvedi, 2020).
Technological factors: there has been a significant enhancement in the operation cost of
McGraw hill education that is not leading to make investment on updating the technology and
they are just using the common software platforms for their technological up-gradations.
SWOT ANALYSIS:
Strength:
 The present merger of McGraw hill education and cengage will lead to enhancement of
brand image and there will be no overlapping of products that is going to benefit them
having a shared vision and development of digitally enhanced platforms of learning
(Carbaugh, 2020).
Opportunities:
 With the present outbreak of coronavirus there is a potential of the market to grow by
6.96 billion dollars in the coming time period of 2020-2024 because of the growth
momentum of market is expected to accelerate with the forecasted period because of the
study growth year.
Threat:
 There is a risk of substantial portion of credit facilities that have to be refinanced and
ext6end in the coming time period of 11 months is that most of the credit facilities can be
extend to a time period 23 months.
 The COVID 19 pandemic may result into higher issues of funding and higher education
institutions may result in delays and altercation of classes. There can be further
contribution to materially lower education enrolments. All such factors could result into
lower demands and reduction of overall profitability and revenue for a particular time
period.
WEAKNESS:
 Mc Graw hill is willing to capitalize the market by expansion of portfolio of technology
enabled adaptive tools & learning solutions. But they are having one common software