Heinemann's Publishing Case Study

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The end of the Second World War brought new challenges for the publishing industry in Britain and threatened to reverse the ephemeral success attained through the war years during which the demand for books exceeded all expectations particularly during the last three years of the war, and significantly reduced the risks of large stocks. With the end of paper rationing at the close of the 1940s, however, unhealthy aspects of the publishing trade in the form of overproduction and overstocking started to emerge. It was amid this environment of post-war economic recession that William Heinemann, like other British publishing houses, sought to promote their book industry in foreign countries. Support came from the British government who were keen on encouraging British exports in order to boost the weak economy. ‘Publishers who had looked abroad for markets for decades before 1939 now found themselves encouraged to revive their contacts.’ The results were immediate and tangible. Only a decade later, Heinemann's branches were …show more content…

He wanted much more freedom to decide about the destiny of the educational publishing business which was intertwined with William Heinemann’s. The sales figures show that the company was heading toward bankruptcy as the profits dropped from £122,000 in 1952 to £13,000 in 1959 which meant that the pre-tax profit’s percentage fell from 19.2% in 1952 to 2% in 1961. Table 1: A Comparison of the sales of William Heinemann and its Educational Department. Year W.H Sales Educational Dept’s sales Total Sales Total Profit 1950 £443,000 £37,000 £480,000 £115,000 1953 £536,000 £62,045 £598,045 £89,000 1955 £589,000 £124,000 £713,000 £92,000 1956 £632,000 £141,182 £773,182 £93,000 1959 £573,000 £266,494 £839,494

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