Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution and Analysis
Introduction
Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services consisting of; collecting info, processing details and communication services. Major organisation segments of the company consist of; books, regulars, consultancy and distribution. The company has a vast product portfolio and its major products consist of books, regulars, online media, exhibits, research study reports etc. Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution has actually ended up being a specialized details supplier and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
Although, Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in specific. These elements consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
The change 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 valuable experience, technical resources and the abilities of the business could be made use of to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help has particular strengths that can be used to minimize the hazards, conquer the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis in the publishing market i.e. 60 years permits the business to offer high quality items at a lower cost using its prior experiences.
• The technical resources and abilities generated by its effective journey offer a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong financial position allows the company to think about numerous development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weaknesses which might increase restraints for the business in executing its development program. The weak points of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing considering that 2008, affecting Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis too, however the growth could be restored by availing specific chances presented in the market. The market opportunities for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might consider a development program through the expansion towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its huge financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually postured particular dangers to Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help 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 gain a strong consumer base by using particular techniques like aggressive promotion, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to presence of high competition increases the hazard of losing the client base.
Monetary Analysis.
Due to lack of information, the monetary ratios of CMP could not be computed. It could be examined from the Appendix III that the yearly overall incomes of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help throughout the duration 2000-2012 are growing at a high growth rate, showing that the yearly need of the items of CMP is growing and the company is rather efficient in attracting a big number of consumers at a potential cost.
In addition to it, the 2nd chart which shows the annual growth in the Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help total properties, reveals that the business is rather efficient in adding worth to its possessions through its profits. The development in properties shows that the total value of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis regarding the distribution of total incomes of the company. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other organisation sections with a possible growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces affecting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Celebration of China. It might be stated that the general political forces affecting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces combine impact the demand for the publishing market. In addition to it, the economic policies connected to the import of books affect the general business at CPM. China's financial conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's preferences towards checking out informative products and so on. China has the greatest population on the planet with a high population growth, showing the increasing number of consumers of the Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help. However, the consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer choices.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading techniques etc. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help consists of the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be harmful for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Risk of Replacement.
Hazard of Alternative is high for the Chinese Publishing Market. The replacement products for the released documents is the documents provided in the virtual libraries on particular websites. The altering customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The major providers of the Artis Reit Accounting For Investment Properties Under Ifrs Case Study Solution include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider 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 market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of large number of rivals. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Artis Reit Accounting For Investment Properties Under Ifrs Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts 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 might wean the market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the same duration as Artis Reit Accounting For Investment Properties Under Ifrs Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Clients
• Growth opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose demand of its items in the market.
Suggestions
As the choices are moving towards digital publishing and the business need an instant option to avoid the declining industry growth. The company could also consider the growth program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company needs to initially gathers the information connected to the customer demand, the prospective markets, the federal government regulations and the information associated with the competitors presented in the market. After that, the business ought to choose one potential sector for its initial offering. It must gather research that how it could separate its digital publishing from the existing rivals' products. The steps above the business must go for the initial offering. If the initial offering shows a success, the company ought to choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing market is declining given that 2008, revealing a risk to the company's long term existence, but the scenario can be managed by considering an advancement plan in the future. The business might consider introducing digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.
