Audit Assignment Case Study Solution and Analysis
Audit Assignment Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information service provider and a big comprehensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Although, Audit Assignment Case Study Help has spent its 60 years journey efficiently, being a successful publishing home, nevertheless, the changing macro market trends and forces bring specific obstacles to the publishing industry in general and CMP in specific. These aspects include;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous 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 capabilities of the company could be used to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Audit Assignment Case Study Help has certain strengths that can be made use of to decrease the hazards, overcome the weakness and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Audit Assignment Case Study Analysis in the publishing market i.e. 60 years enables the company to provide high quality items at a lower expense using its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its threat and offer high value to its clients.
• Strong financial position permits the company to think about a number of development opportunities with no fear of raising fund externally.
Together with the strengths, the company has particular weaknesses which might increase constraints for the business in implementing its development program. The weaknesses of Audit Assignment Case Study Help are given as follows;
• Despite of being a science and technology publishing company, the business still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term development.
The development of the publishing market is declining since 2008, impacting Audit Assignment Case Study Help as well, however the development could be revived by availing particular chances presented in the market. The market opportunities for CMP include;
• The business might also present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its huge funds.
The changing macro patterns in the market and increasing competition in the publishing market has actually presented specific dangers to Audit Assignment Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause decreasing market share of Audit Assignment Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by utilizing specific methods like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the market along with presence of high competition increases the danger of losing the consumer base.
Due to absence of information, the monetary ratios of CMP might not be computed. It might be analyzed from the Appendix III that the annual overall revenues of Audit Assignment Case Study Analysis throughout the duration 2000-2012 are growing at a high development rate, showing that the yearly need of the products of CMP is growing and the company is rather effective in attracting a big number of clients at a possible cost.
In addition to it, the 2nd graph which shows the annual growth in the Audit Assignment Case Study Help overall properties, reveals that the company is quite effective in adding value to its possessions through its incomes. The growth in possessions reveals that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company utilizing the provided data might be the analysis regarding the distribution of total earnings of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sections with a prospective development to achieve its future development objective.
PESTEL analysis might be conducted to discover the various external forces affecting the performance of the business and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and guided by the Publicity Department of the Communist Celebration of China. Therefore, it might be said that the general political forces impacting Audit Assignment Case Study Solution company are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Audit Assignment Case Study Solution in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces combine effect the demand for the publishing market. Along with it, the economic policies connected to the import of books impact the general service at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing consumer choices.
Technological forces affecting the CMP include the technological improvement in the reading methods and so on. Improvement of science and technology together with the rise of digital publishing might lower the need for the CMP items, if specific actions would not be taken soon.
Ecological forces impacting Audit Assignment Case Study Help consists of 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 ought to not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized first by the Federal government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be used to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers 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 market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Substitution.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute products for the released documents is the documents presented in the digital libraries on certain websites. The changing consumer preferences towards digital learning increase the risk of substitution for the industry.
Competitive competition in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The significant suppliers of the Audit Assignment Case Study Help consist of the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Haggling power of purchaser in the publishing industry 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 rates.
CMP operates in a highly competitive industry with the presence of a great deal of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Audit Assignment Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a threat 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 existing market scenario.
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 regards to business scale. It is likewise among the popular gamers in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing market.
• Usage of potential resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the business to lose demand of its items in the market.
As the preferences are moving towards digital publishing and the business need an immediate solution to prevent the declining industry growth. The company could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company should initially collects the data associated with the consumer demand, the prospective markets, the government guidelines and the data connected to the rivals provided in the market. After that, the business needs to decide one potential segment for its initial offering. It must gather research study that how it might differentiate its digital publishing from the existing competitors' items. After all the steps above the business should opt for the initial offering. The company should go for the other markets if the initial offering shows a success. In this method the company would be able to execute its digital publishing program.
The growth of the publishing market is declining because 2008, showing a threat to the company's long term presence, however the circumstance can be managed by considering a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the threat of failure for entrance in the brand-new markets.