The Goblins' matter was handled quite easily as Cyrus was expecting to in the first place. He knew the presence of a Hobgoblin was nothing but good news for the goblin race since this meant they were capable of evolving into hobgoblins.
The Goblin Lord appointed by him was very restrained and respectful when Cyrus imparted a mortal rank cultivation manual directly to his brain. This cultivation manual was very suitable for the goblin race, and he knew it wouldn't be long before that hobgoblin would evolve into a real goblin lord with its help.
Once the Goblin race is fully under his control, he will move on with his plan for them. As for the magic beast, he leaves them alone as a food source for the people and goblins.
Speaking of the food source, it was the biggest problem since everyone was mortal. They needed food to sustain themselves.