McGraw Hill: Business Analysis and Strategic Solutions
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This report focuses on the business problems faced by McGraw Hill and explores potential strategic solutions. It includes an analysis of Porter's Five Forces, SWOT, and PESTLE. The report also discusses the impact of these solutions on the organization's overall objectives. Subject: Business Analysis
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Table of Contents Introduction.....................................................................................................................................3 Summary of assignment case study.................................................................................................3 Porter's Five Forces model with respect to McGraw Hill..........................................................3 SWOT Analysis for McGraw Hill.............................................................................................4 PESTLE Analysis for McGraw Hill..........................................................................................4 Exploration of business problem.................................................................................................5 Impact of potential strategic solutions........................................................................................6 Conclusion......................................................................................................................................6 References.......................................................................................................................................7 Self reflection..................................................................................................................................9 Action Plan.....................................................................................................................................10 .......................................................................................................................................................12
Introduction The report revolves around developing an understanding of management concepts on the basics of micro and macro economic concepts along with the decision-making process and strategies for development that drives an organization towards their overall objectives.McGraw Hill is one of the “big three” educational service provider that specializes in educational content, software, modules and online study material. The organization falls under the category EMEA, which means that they successfully carry out their operations in Europe, Middle East and Africa. Although, McGraw Hill carries on their operations all over the globe but the major revenue are generated from EMEA markets (Croitoru 2017). The education organisation specializes in proving materials for study for major competition and entrance examinations all over the globe. Their specially developed systems uses artificial intelligence technology and are impossible to cheat in. The organization holds reputed credibility as well as accountability in market. This report will include exploration of a business problem forMcGraw Hill along with potential strategic solutions developed in order to solve those problems.
Summary of assignment case study Porter's Five Forces model with respect to McGraw Hill Porter's five forces model includes customers, suppliers, substitute products, threat of entrances and competitive threats. This report will focus of Porter's five forces model in accordance to McGraw Hill as follows: Bargaining power of Customers:Customers forMcGraw Hill are teachers, students, college universities, K-12 schools, general customers and business professionals and all of them have low bargaining powers and therefore do not poses as a threat for the organisation (ÖNEREN et al 2017). Bargaining power of Suppliers:The suppliers for McGraw Hill revolves around authors, editors, paper and labour who have very low bargaining power and therefore do not pose a threat against the organisation. The power also depends upon packaging costs which have medium to low power and therefore can be utilized easily along with transportation costs which poses high bargaining power and thereforeMcGraw Hill have to create contingency plans for the same (Baxter 2019). Substitute products :The threat arising due to substitute products can be mitigated using mentorship methodologies and McGraw Hill's internal financial analysis. Threat of entrances: The threat of potential entry of new competitors can be mitigated by earning customer loyalty and focusing on lower prices, advertising and promotions, capital, economies of scale and high profile clientele (Baxter 2019). Competitive threats :The biggest competitors of McGraw Hill are Reed Elsevier Group, Peasrson PLC and Hougton Mifflin Harcourt Publishing Company. SWOT Analysis for McGraw Hill Strengths: Diversityintheorganisation (Elavarasan et al 2020). Commitmenttowardstheircorporate responsibilities. Using digital landscape for sales. Weaknesses: Unitsdealingwithtextbookare becoming a liability forMcGraw Hill postrescission(Phadermrodetal 2019). Decline in their stock prices. $1.88 in Goodwill.
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Opportunities: Involvementofemergingeconomies likeIndiaandChina(Leiberetal 2018). Increase in Global Population. Online education post COVID-19. Threats: Declining education budgets. Rising competitors. Change in Indian Regulations. PESTLE Analysis for McGraw Hill Political:The organization have to take care of [political conditions in every country wheretheyoperate.Dynamicpoliticalconditionsin onecountrymayeffecttheoverall operational efficiency of McGraw Hill (Nandonde 2019).In order to mitigate this threat the organisation have to analyse the political environment of all the countries they operate in. India's political environment is more vivid than of others and therefore the organisation needs to have contingency policies for the same. Economical:McGraw Hill have to adapt their global operations n accordance to massive dynamics in international markets. Post COVID-19 situation there have been a rescission in international markets and it effects every single organisation that operates globally (Gheibi et al 2018).McGraw Hill have to develop the understanding that they have adapt to the active changes in international markets. Social:Humans are social beings and have to live in accordance to the conventions of human conventions and thereforeMcGraw Hill is an extension of society's will. Thus, the organisation have to focus on fulfilment of their duties towards society. This stage also helps in analysing the social status of their target customers and establish their campaigns accordingly. Technological:McGraw Hill operates using digital landscape and therefore they have to gain understandingof allthetechnologicaladvancementsin thesectorand designtheir operations accordingly. TheMcGraw Hill's website still lacks in technological advancements. The organisation should plan on using artificial intelligence in their website to adapt itself in accordance to the students calibre and capabilitiesreducing their high rates of customer abandonment.
Legal:Any business is bound to operate within the rules and regulations setby the judicial system of a country.McGraw Hill have to analyse the legal protocols of every country they operate in and modify their services accordingly. Environmental:McGraw Hill have to develop and initiate as well as actively monitor their sustainability policies. The organisation have to carry on their operations in accordance to the environmental conditions of the target they operate in. These conditions may differ from market to market and therefore the organization have to adapt their sustainability policies accordingly (Christodoulou and Cullinane 2019.). In addition to that it is responsibility of McGraw Hill to work in enhancing the quality of environment in which they operate in. Exploration of business problem The report focuses on the problems faced byMcGraw Hill including both internal and external dynamics. The report will revolve around the analysis of micro as well as macro factors that can lay an outline for development of business. This report will focus on key problems based on student feedbacks as well as analysis of organisation's strengths and weaknesses (Fozer et al 2018). The report will also focus on the impacts of the potential strategies that can be undertaken by the organization as a means to overcome the problems that they are facing. This report focuses on the external and external problems that creates difficulties in student interaction with the website. McGraw Hill's website's inability to adapt in accordance to their customer's learning capabilities create high levels of customer abandonment. Impact of potential strategic solutions In order to solve these problemsMcGraw Hill needs to reduce their organizational complexity, develop their workplace in a manner that focuses on enhancement of interaction, focusingonclustermanagementandusingtheapproachofautomatedworkflows.The organisation can use accumulation of these strategies in order to overcome the challenges that they are facing and over the organization towards their overall objectives. Conclusion The report revolves around the problems faced byMcGraw Hill, along with an understanding of management concepts based on micro and macro economy concepts that establishes the outline for achievement of overall organizational objectives byMcGraw Hill. The report concludes that the organization is responsible for tackling the three major challenges
i.e. preparing students, retention of their customers as well as preparing the students in accordance to their career preferences. The challenges faced by McGraw Hill are inefficient data analytics, late response to the market and under-developed outlines for adapting in accordance to the customers resulting in high customer abandonment levels.
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References Baxter, G., 2019. A strategic analysis of Cargolux Airlines International position in the global air cargo supply chain using Porter’s Five Forces Model.Infrastructures.4(1). pp.6. Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges from the Implementation of a Port Energy Management System: A SWOT/PESTLE Analysis. Sustainability. 11(21). pp.6046. Croitoru, A., 2017. Schumpeter, Joseph Alois, 1939,“Business Cycles: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process “, New York and London, McGraw– Hill Book Company Inc.vJournal of comparative research in anthropology and sociology.8(01). pp.67-80. Elavarasan, R.M., Afridhis, S., Vijayaraghavan, R.R., Subramaniam, U. and Nurunnabi, M., 2020. SWOT analysis: A framework for comprehensive evaluation of drivers and barriers for renewable energy development in significant countries.Energy Reports.6. pp.1838-1864. Fozer, D., Sziraky, F.Z., Racz, L., Nagy, T., Tarjani, A.J., Toth, A.J., Haaz, E., Benko, T. and Mizsey, P., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives.Journal of cleaner production.147.pp.75-85. Gheibi, M., Karrabi, M., Mohammadi, A. and Dadvar, A., 2018. Controlling air pollution in a city:AperspectivefromSOAR‐PESTLEanalysis.Integratedenvironmental assessment and management.14(4). pp.480-488. Leiber, T., Stensaker, B. and Harvey, L.C., 2018. Bridging theory and practice of impact evaluation of quality management in higher education institutions: a SWOT analysis. European Journal of Higher Education.8(3). pp.351-365. Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African Community.Global Business and Organizational Excellence.38(4). pp.54-61. ÖNEREN, M., ARAR, T. and YURDAKUL, G., 2017. Developing competitive strategies based on SWOT analysis in Porter’s five forces model by DANP.Journal Of Business Research-Turk.9(2). pp.511-528. Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis.International Journal of Information Management.44. pp.194-203.
Self reflection In order to prepare myself against the ever changing dynamics in the future trends I undertook VARK analysis. The future employability structure is based on dynamics which are changing quickly. Employers are looking for skills we didn't even knew existed few months back. In order to prepare for future employment criteria, I plan on following my action plan in order to prepare myself against in accordance to these skills. I took VARK Analysis and the results were as follows: VARK Analysis is a questionnaire based analysis that revolves around using questions I order to figure out the skills that one have. During my analysis I was asked several questions which mostly focused on what course of action will I take in many situations, based on the responses I selected the above results were developed. Which meant that I earned 16 points in visual skills, 14in Aural, 14 in reading and writing skills and 15 inKinaesthetic skills. This analysis helped me understand the need of all the skills that I need to develop in order to prepare myself against the employability criteria that employers have. I will continue focusing on objectives that I set using the SMART methodological framework. My objectives are specific, measurable at any point of time, achievable, relevant and based on maximum timelines. I plan on developing my communication skills by Reading and writing, reading books to enhance vocabulary, watching documentaries to master fluency, active practices to develop the habit. I plan on developing my numeracy skills by Analysing annual reports of companies, practising Microsoft Excel, studying casestudies,practisingotherstatisticaltools,practisingdifferentcharts,developing understanding of collection and interpretation of data. I plan on developing my problem solving skills by reading case studies, reading literature about the same,taking part in team projects. I plan on developing my analytical skills by Reading case studies, watching videos on YouTube,
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Taking tutoring sessions online, taking help of BNU E-Library, taking online courses by McGraw Hill. I plan on developing my research skills by Taking part in research, making reports, conducting surveys, researching online, practising web-surfing. Along with that I plan on learning at least one foreign language in the course of next 12 months. I plan on mastering Microsoft Excel in the course of next 3 months which will help me in fulfilling my future employability criteria.In addition to that Belbin and Tuckman theory and model in order to develop my team participation and leadership skills. A good team player is required by every organisation. Having team management and participation in increasing the chances of promotion in future as well. In my experience it helps in maintaining the overall quality of overall projects and synchronises all the efforts of all the team members and pushes it towards the common organisational objectives. A team player always have better chance of getting the promotions as e is already well aware about the management strategies. I plan on developing these skills in order to enhance my leadership capabilities. I have always dreamt of being a leader, the one who leads a team towards their success, who solves problems of his team and whose team can always count on him. I want to understand the concept of leadership more and want to become an ideal leader. Above promotions, I plan on gaining this skill because it helps me in achieving my goal of becoming an ideal leader in future. I plan on developing these skills in order to prepare myself for future purposes. Emergence of technologies have changed the employability criteria, artificial intelligence can now do work that humans used to do before. In order to prepare myself against these uncertainties I will focus making myself flexible and adaptable to foreign environment. The employability criteria is based on factors which are extremely dynamic in nature and therefore adaptability to changes is the key to have a safe and secure future employment. I plan to update my action plan by using active monitoring techniques in accordance to employability needs. Action Plan Fields or skills where improvementis needed Starting and end dateProceduresOutcome Communication skills16/12/2020– 01/06/2021 Readingandwriting, readingbooksto Goodcommunication skillshelpsin
enhancevocabulary, watching documentariesto master fluency, active practicestodevelop the habit. personality development.Itis must have skills when it comes to day to day life or employment. Numeracy Skills 01/12/2021– 31/03/2021 Analysingannual reports of companies, practisingMicrosoft Excel,studyingcase studies,practising otherstatisticaltools, practisingdifferent charts,developing understandingof collectionand interpretation of data. Numeracy Skillswill helpmein employability as it is requiredbyalmost every organisation all overtheglobe.In additiontothat,I've always been interested in market trends which Iwillbeableto analyseOnceIgain this skill. Problem solving skills 01/12/2021– 31/03/2021 Readingcasestudies, readingliterature about the same, taking part in team projects. Problem solving skills arehelpfulin employability and they arereallyhelpfulin day to day life. Analytical skills01/12/2021– 31/03/2021 Readingcasestudies, watchingvideoson YTakingpartin research,making reports,conducting surveys,researching online, practising web- Inordertoanalyse dynamics this skill is important as it lays the foundationfor decision-making process.Itismust requiredskillfor
surfing.ouTube, Takingtutoring sessions online, taking helpofBNUE- Library, taking online courses byMcGraw Hill. employers as well. Research skills 01/12/2021– 31/03/2021 Takingpartin research,making reports,conducting surveys,researching online, practising web- surfing. Inordertoreacha solution for a problem, itisnecessaryto collect every available pieceofinformation about it and therefore this skill will enhance mydecision-making by making them time effective.