Accounting Assignment Case Study Solution and Analysis
Introduction
Accounting Assignment Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has become a specialized info company and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market trends and forces bring particular challenges to the publishing industry in general and Accounting Assignment Case Study Help in particular. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the company could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Accounting Assignment Case Study Help has particular strengths that can be made use of to reduce the threats, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Accounting Assignment Case Study Analysis in the publishing market i.e. 60 years allows the company to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and abilities produced by its effective journey supply a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and supply high worth to its consumers.
• Strong financial position enables the business to consider several development chances without any worry of raising fund externally.
Weak points
Along with the strengths, the business has particular weak points which could increase restraints for the company in implementing its advancement program. The weak points of Accounting Assignment Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Opportunities
The development of the publishing market is decreasing considering that 2008, impacting Accounting Assignment Case Study Solution as well, however the growth might be restored by availing certain opportunities provided in the market. The marketplace opportunities for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Hazards
The altering macro trends in the market and increasing competitors in the publishing market has actually posed specific hazards to Accounting Assignment Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Accounting Assignment Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain strategies like aggressive promo, quality items, and so on
• Entrance of new publishing companies in the market in addition to presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual overall revenues of Accounting Assignment Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the company is rather efficient in attracting a large number of customers at a possible rate.
Along with it, the 2nd chart which shows the yearly growth in the Accounting Assignment Case Study Analysis total assets, reveals that the business is quite effective in including worth to its properties through its earnings. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business utilizing the given information could be the analysis regarding the circulation of overall revenues of the company. Huge part of the incomes of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business segments with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces impacting the efficiency of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant influence on the frame of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. It could be stated that the overall political forces impacting CMP business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces affecting the publishing sector in general and the Accounting Assignment Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the need for the publishing market. Together with it, the financial policies associated with the import of books impact the overall organisation at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out helpful materials and so on. China has the highest population in the world with a high population development, showing the increasing number of consumers of the Accounting Assignment Case Study Help. Nevertheless, the customer choices are moving towards digital publishing instead of the traditional was of publishing. In this regard, CMP must focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading strategies etc. Improvement of science and innovation in addition to the increase of digital publishing might reduce the demand for the CMP items, if particular actions would not be taken quickly.
Environmental.
Environmental forces affecting Accounting Assignment Case Study Analysis includes the concerns of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing industry. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Threat of Substitution is high for the Chinese Publishing Market. The replacement items for the released documents is the files presented in the virtual libraries on certain websites. The changing customer choices towards digital knowing increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Along with it, new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Accounting Assignment Case Study Analysis include the providers of the paper for releasing 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 Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of competitors. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Accounting Assignment Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Founded in the same duration, CIP publishes comparable kind of books. For a large period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market sections, with a significant focus on instructional publications. CIP acts as a danger for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the marketplace share of Accounting Assignment Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing number of Customers
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate service to prevent the declining market development. The business might also consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business ought to first collects the information related to the consumer need, the potential markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining considering that 2008, showing a hazard to the company's long term existence, however the situation can be managed by considering a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
