Introduction to Pearson PLC Page 2-3
Corporate Governance Page 3-4
Strengths & Weaknesses Page 4-9
Analysis Page 10
Bibliography Page 12
Financial Report for Pearson PLC
S. Pearson & Son was originally founded in 1844 as a building firm by Samuel Pearson. With time it became one of the world’s largest construction companies. Shortly after 1920, Pearson began purchasing local newspapers in the United Kingdom thus starting a chain of acquisitions that would gradually make Pearson PLC an International media and education company (Pearson PLC stock information, 2013). Chiefly the company operates in education, business information and consumer publishing markets. According to Pearson’s mission statements, their goal is to become the world’s leading learning company. They plan on achieving this through various ways, namely Long-term organic investment in content, digital products and services businesses, international expansion and efficiency (Pearson, 2011). In the last 5 years, Pearson has invested over £4 billion into new education plans, authors for Penguin and elsewhere to further develop their content. Pearson is keenly aware on how technology is becoming more predominant in today’s society therefore they concentrate on providing new services and products with the help of technology. In 2011 alone, 33% of their total sales came from digital revenues. Currently Pearson is present in 70 countries and continues to focus on fast growing markets such as in China, India, Africa and Latin America. In order to achieve the three aims aforementioned, it is important for Pearson to be efficient thus they strive to be proficient in their operations (Pearson , 2012). Currently, Pearson has three divisions; Pearson Education, Financial Times Group (FT Group) and Penguin Group. All three of these departments focus on different products. Pearson Education provides teachers and students from different age groups; textbooks and digital technologies. They are responsible for such education brands as Bug Club, Edexel, Financial Times Publishing, Fronter, MyEnglishLab, eCollege, Poptropica and BBC Active. The FT Group provides business and financial news in print and online for people working in or interested in business and/or finance. Apart from news, they also provide consumers with data and analysis. Penguin Group is an international publisher, which is estimated to publish approximately 4,000 books every year. Their books range from classics to children’s thus targeting a wide range of people. Furthermore, in 2011 the Pearson College was opened in London and Manchester that provides a British degree. A Big Six exists in the publishing world; Random House, HarperCollins, Hachette, Simon & Schuster, Macmillan. Penguin Books is among these six. All of these publishing houses distribute worldwide however Pearson PLC is still considered to be the largest education company and the largest book publisher in the world (Librarian, 2012). In October of 2012, Penguin Group and Random House began discussing the possibility of combining their companies and creating the world’s biggest consumer book publisher, whilst retaining Pearson PLC overall title as the largest book publisher in the world. There are also reports that HarperCollins and Simon & Shuster are having merger talks as well (Los Angeles Times Articles, 2012). This merging of the Big Six could potentially mean two things for Penguin Books. Firstly, Random Penguin could have more leverage in negotiations with retailers, and the competition for...