Anandam Manufacturing Company Analysis Of Financial Statement Case Study Solution and Analysis
Anandam Manufacturing Company Analysis Of Financial Statement Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized info provider and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
CMP has invested its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring specific challenges to the publishing market in basic and Anandam Manufacturing Company Analysis Of Financial Statement Case Study Analysis in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
The improvement of the macro markets have raised numerous 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 advancement unceasingly? How could the business sustain its long term competitive position in future?
Anandam Manufacturing Company Analysis Of Financial Statement Case Study Help has specific strengths that can be used to reduce the risks, conquer the weak point and obtain the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Anandam Manufacturing Company Analysis Of Financial Statement Case Study Help in the publishing market i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and supply high value to its clients.
• Strong financial position permits the business to consider numerous advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has specific weak points which might increase restrictions for the business in implementing its advancement program. The weaknesses of Anandam Manufacturing Company Analysis Of Financial Statement Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the business 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 needs to propose specific expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is decreasing considering that 2008, affecting Anandam Manufacturing Company Analysis Of Financial Statement Case Study Analysis also, but the growth could be revived by availing particular chances provided in the market. The marketplace chances for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
The altering macro trends in the market and increasing competitors in the publishing industry has actually positioned specific threats to Anandam Manufacturing Company Analysis Of Financial Statement Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in decreasing market share of Anandam Manufacturing Company Analysis Of Financial Statement Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of a great deal of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular strategies like aggressive promotion, quality products, and so on
• Entrance of brand-new publishing firms in the industry along with presence of high competition increases the danger of losing the consumer base.
The company has a quite competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be computed. The overall monetary efficiency of the company might be evaluated by using the charts provided in the case Appendices. It might be examined from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the annual need of the items of Anandam Manufacturing Company Analysis Of Financial Statement Case Study Analysis is growing and the company is quite efficient in drawing in a a great deal of customers at a prospective price.
In addition to it, the 2nd chart which shows the yearly growth in the Anandam Manufacturing Company Analysis Of Financial Statement Case Study Help overall possessions, shows that the business is quite efficient in including worth to its assets through its profits. The development in assets reveals that the total worth of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the distribution of overall revenues of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sections with a potential growth to attain its future development goal.
PESTEL analysis could be carried out to discover the various external forces affecting the efficiency of the business and the current trends in the external environment of the company. A brief PESTEL analysis of the company 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 government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. It could be stated that the general political forces impacting CMP company are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in general and the CMP in specific includesthe costs of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces combine effect the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to fulfill the changing consumer choices.
Technological forces impacting the CMP include the technological advancement in the reading strategies and so on. Enhancement of science and technology together with the increase of digital publishing might lower the need for the CMP products, if specific actions would not be taken quickly.
Environmental forces affecting Anandam Manufacturing Company Analysis Of Financial Statement Case Study Help includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing must not be harmful for the environment.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is provided 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 draw in brand-new entrants to the publishing market. Nevertheless, the existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the digital libraries on specific websites. The altering customer preferences towards digital knowing increase the danger of substitution for the industry.
Competitive rivalry in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the Anandam Manufacturing Company Analysis Of Financial Statement Case Study Help include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
CMP runs in an extremely competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Anandam Manufacturing Company Analysis Of Financial Statement Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks second and third in different market segments, with a significant concentrate on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of Anandam Manufacturing Company Analysis Of Financial Statement Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Anandam Manufacturing Company Analysis Of Financial Statement Case Study Solution and CIP. It is likewise one of the prominent gamers in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth 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 new one can lead the company to lose need of its items in the market.
As the choices are moving towards digital publishing and the business require an instant option to prevent the declining industry growth. The company might likewise consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the business must initially gathers the information related to the customer demand, the possible markets, the government guidelines and the information related to the competitors presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
The development of the publishing industry is decreasing because 2008, revealing a hazard to the business's long term presence, however the situation can be controlled by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.