There are a variety of different problems presented at Cengage Learning, but none of them are particularly insurmountable issues without some attention from upper-level management. Some of the issues presented by current and past employees are specific to Cengage Learning, while others are general issues that are faced in many corporate environments.
The first, and perhaps the primary area of concern at Cengage Learning is the issue of communication. The communication at Cengage Learning is problematic in two areas: peer-to-peer communication and hierarchical communication. The first recommendation for action that is suggested for Cengage Learning is to implement strategies that encourage more teamwork during projects. This requires the integration of departmental communication across all departments and all levels of management in a genuine effort to ensure that all employees understand team goals and objectives during projects.
Many employees complained during independent surveys that management failed to properly communicate company goals and objectives to their employees. To alleviate the stress on employees and management, management should hold regular meetings for upper and lower-level employees in which they clearly communicate the goals and objectives that are pertinent to each group. Things should not be withheld from employees unless necessary, and the more employees understand about the goals and the objectives of the Cengage Learning organization the better they can complete their projects to further these goals and objectives. In a similar vein, Cengage should utilize their technology to increase the efficiency of their Virtual Teams, who may not be able to meet in person but still need to benefit from increased communication. Creating an advanced feedback system will similarly help employees perform more effectively. These changes will, in combination with increased training and more efficient employee evaluation systems, create more synergy between management and employees.
Another area in which Cengage Learning is struggling is the seasonality of the academic market. Cengage should diversify and produce a new product in an effort to deal with the necessary seasonality of the academic market. Combined with a new, more targeted promotional strategy during the academic off-season, Cengage can effectively differentiate its product production enough to take advantage of the off-season rather than being economically struck by it. Similarly, Cengage should increase research on the competitive market to increase market share and differentiation and create a strategic plan to deal with financial issues. The recommendation here is to consider a partnership option to raise more capital compared to debt and equity sources as a way to minimize interest payments.
There is, of course, always risk assumed when embarking on a strategic overhaul of this type, but taking advantage of the academic off-season will, in the long run, highly benefit Cengage Learning, as it will alleviate the financial strain of a particularly lean few summer months.
The last recommendations given here are concerned with the rebranding of the company. First, it is recommended that Cengage Learning produce a series of goals that will increase their Corporate Social Responsibility. Management should be involved in this process to ensure that the changes accurately reflect the ethos of the company. Similarly, Cengage must create incentives that attract and encourage the participation of more high-quality potential authors, while simultaneously investing more capital in research and development to ensure that Cengage can stay abreast of any changes in significant areas of research.
References
Thomson, Reuters. (2010). Solutions for Publishers: Accelerating the Pace of Discovery. PDF
http://www.thomsonreuters.com/content/science/pdf /Solutions_brochure_for_publ.pdf
Needle, David. Business in Context: An Introduction to Business and Its Environment, Bedford
Row, London: Thomson learning, 2004. Print.
Company Overview of Cengage Learning, Inc. Businessweek. Website. 2nd May. 2013.
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapid=515355
