Business Environment of Reed Elsevier

Business Environment of Reed Elsevier The following report details the findings of our research carried out on the business environment of Reed Elsevier PLC. We have incorporated strategy analysis tools such as SWOT, Porters 5 Forces Framework and Financial Analysis to aid us in analyzing all the relevant internal and external factors that play important roles in shaping Reed Elsevier’s business environment. 1.1 Introduction Reed Elsevier is a leading provider of professional research information to organizations around the world. It publishes journals, books and databases and manages exhibitions and events. Its well-known titles such as New Scientist and The Lancet – appear both in print and online. Reed Elsevier has a worldwide customer base working in many fields, including science, research and the law, as well as in public and academic libraries and commercial organizations. This includes around 11 million scientists who access information direct from Reed Elsevier’s ScienceDirect database, whi ch is the world’s largest online library of full-text research papers. Reed Elsevier was formed in 1993 when the businesses of the British Publisher Reed International and the Dutch publisher Elsevier NV merged. The company now operates in more than 200 locations worldwide with annual revenues for 2010 being  £6 billon. To enable the business to focus on specific customer needs, the company has five divisions. They are Elsevier, LexisNexis Risk Solutions, LexisNexis Legal & Professional, Reed Exhibitions and Reed Business Information. 1.1.1 Elsevier Elsevier is the world’s leading provider of scientific and medical information and serves scientists, health professionals and students worldwide. It annually produces over 200,000 new research articles in over 1,100 journals every year, with ScienceDirect, its flagship electronic solution accessed by over 11 million users. Elsevier’s contribution to the total revenue of Reed Elsevier for the year 2010 amounts to 3 4% while it is accountable for 46% of the group’s total operating profit as shown in the pie charts below. 1.1.2 LexisNexis Risk Solutions LexisNexis Risk Solutions provides data and analytics to enable its customers to evaluate and manage risks associated with transactions and improve performance. It is also a leading provider of work flow solutions that combine proprietary, public and third party information, analytics and advanced technology. These solutions assist customers in evaluation, predicting and managing risk and improving operational effectiveness, predominantly in the US. Its contribution to total revenue is 15% while it accounts for 23% of the groups operating profit during the last financial year. 1.1.3 LexisNexis Legal & Professional This division is charged with providing content and information solutions for the legal and other corporate markets with a customer base in over 100 countries. LexisNexis Legal & Professional provides resources and services that inform decisions and increase productivity within organizations. For the year ended 31 December 2010, this division contributed 28% towards the group’s revenue while its contribution towards operating profit was 15%. 1.1.4 Reed Exhibitions Reed exhibitions contributed 11% and 10% towards group revenue and operating profit respectively during the year 2010 and was responsible for the staging of over 460 events in 36 countries which brought together over seven million active participants worldwide in 2010. 1.1.5 Reed Business Information Reed Business Information provides business information, online data and marketing solutions. Through industry critical data services, lead generation tools, over 200 community and job sites and more than 200 premier business magazines, Reed Business Information provides valued information to professionals and an effective channel for advertisers. It was responsible for 12% of group revenue in 2010 and 6% of the groups operating profit.