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Strategic management - Essay Example

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Strategic Management Customer Inserts His/Her Name Customer Inserts Grade Course Customer Inserts 16 May 2010 Johnston Press Plc is one of the top print industry players in the United Kingdom. The company suffered from the economic depression of 2009…
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Download file to see previous pages Strategic analysis of Johnston Press Plc business enviroment using PESTLE and SWOT analysis; PESTLE Political. Besley (2008) emphasized the company’s political environment is stable. The United Kingdom government is one of the most stable and easily predictable governments in the world today. Economic. Economically, the year 2010 is characterized by retrenchment. The company’s Limerick plant at Leader Print Ltd has finally closed shop after several years of trying to keep its revenues higher than the company’s daily operating expenses. Social. Gibson sings (2010) The company has been in the forefront of the United Kingdom society. The society has been used to reading the news from the Johnston Press printing plants for several years. In fact, Johnston Press is the second largest printing company in the United Kingdom today. Technological. The company has incorporated digital advertising as one of its biggest revenue generators. Digital advertising and publishing has many advantages. One such advantage is the company’s borderless sales probabilities. Clients from any part of the world can visit the company’s website and patronise the company’s publishing and other related services. Legal. The company has been complying with all the employments laws, work-related laws and other statutes. Environmental. The company continues to adhere to the environmental laws of the United Kingdom. The company does not pollute the country’s pristine rivers with its printing company’s waste products. SWOT Strengths. Johnston, (2010) reiterated during 2010, advertising categories and geographic market segments have performed profitably well. Property advertising has bounced back to a 9.5 percent growth from the 2009 accounting period’s property advertising debacle. Consequently, house sales have started to increase as compared to the 2009 house sales. Understandably, the 2009 low house was had been triggered by the United States-based financial crisis. Further, cost reduction that included a reduction from 5,640 heads to only 5,417 heads, has augmented the company’s profitability ratio. The company’s single editing process has increase production performance. The company’s newspaper titles include Batley News, Halifax Courier, Glasgow South and Eastwood Extra, Carrick Gazette, and Isle of Man Courier. Weaknesses. Johnston (2010) emphasized the company’s print advertising industry is been set to second place. The Johnston Plc’s print advertising has been losing to the new and innovative digital advertising market segment. The economic debacle has cut the company’s advertising revenue by a significant percentage. Opportunities. Johnston (2010) explained the company should focus on increasing digital sales performance, the internet and computer technology has metamorphosed the printing business into the digital age. In fact, the company’s digital sales growth had increased by ten percent during 2010 when compared to the digital sales growth in 2009. The company should increase its focus on selling of its display inventories. The early part of 2010 shows a slow but sure recovery from the debilitating crunch of the prior year’s unprofitable economic depression. Threats. Johnston (2010) theorized the lack of any influential increase in the economic activity in the Republic of Ireland threatens the company’s plans to increase it overall sales performance. Using Porter's five forces ...Download file to see next pages Read More
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