Accounting Assignment Case Study Solution and Analysis
Accounting Assignment Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has become a specialized details provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Accounting Assignment Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing industry in general and CMP in specific. These factors include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and innovation.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Accounting Assignment Case Study Analysis has certain strengths that can be utilized to lower the risks, overcome the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Accounting Assignment Case Study Help in the publishing industry i.e. 60 years permits the company to supply high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its customers.
• Strong monetary position enables the company to consider several advancement chances without any worry of raising fund externally.
Together with the strengths, the business has specific weaknesses which could increase restrictions for the business in executing its development program. The weaknesses of Accounting Assignment Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to attain long term growth.
The growth of the publishing market is declining since 2008, affecting Accounting Assignment Case Study Help as well, but the growth could be restored by availing particular opportunities presented in the market. The market opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
The altering macro patterns in the market and increasing competitors in the publishing market has presented certain risks to Accounting Assignment Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to decreasing market share of Accounting Assignment Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of brand-new publishing companies in the market together with presence of high competition increases the threat of losing the customer base.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be calculated. The overall monetary performance of the company might be evaluated by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP during the period 2000-2012 are growing at a high growth rate, revealing that the yearly need of the items of Accounting Assignment Case Study Analysis is growing and the company is rather effective in attracting a a great deal of clients at a possible rate.
In addition to it, the second graph which shows the yearly growth in the Accounting Assignment Case Study Solution overall possessions, reveals that the business is rather efficient in including value to its assets through its incomes. The development in assets shows that the total value of the company is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another financial analysis of the business using the provided information could be the analysis concerning the circulation of overall incomes of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sections with a possible growth to attain its future development goal.
PESTEL analysis could be performed to find out the various external forces impacting the efficiency of the company and the current trends in the external environment of the company. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Promotion Department of the Communist Party of China. It might be stated that the total political forces affecting CMP service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer preferences.
Technological forces impacting the CMP consist of the technological improvement in the reading methods etc. Improvement of science and innovation in addition to the increase of digital publishing might minimize the demand for the CMP items, if certain actions would not be taken quickly.
Environmental forces affecting Accounting Assignment Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to bring in new entrants to the publishing industry. However, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The replacement items for the published documents is the files provided in the virtual libraries on certain websites. The changing consumer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Accounting Assignment Case Study Help consist of the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
CMP runs in an extremely competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Accounting Assignment Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of CMP quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Accounting Assignment Case Study Help and CIP. It is also one of the popular gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing current abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the business to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the business in addition to the industry analysis and the rival analysis, Alternative 2 is suggested to CMP to accomplish its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate option to prevent the decreasing industry growth. Therefore, introduction of digital publishing could show to be an instant service with low amount of threat for the business. Nevertheless, the business might also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to initially gathers the information related to the customer need, the possible markets, the federal government policies and the information related to the rivals presented in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, showing a danger to the company's long term existence, however the scenario can be managed by thinking about an advancement plan in the future. The business could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.