Audit Assignment Case Study Solution and Analysis
Intro
Audit Assignment Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing information and communication services. Significant service segments of the business include; books, periodicals, consultancy and circulation. The company has a huge item portfolio and its major products consist of books, periodicals, online media, exhibitions, research study reports etc. Audit Assignment Case Study Analysis has ended up being a specialized info service provider and a big detailed Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Audit Assignment Case Study Analysis has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market patterns and forces bring certain challenges to the publishing market in basic and CMP in specific. These elements include;
• Entrance of the brand-new publishing companies in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and innovation.
The change of the macro markets have raised a number of 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 strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Audit Assignment Case Study Analysis has specific strengths that can be used to decrease the hazards, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Audit Assignment Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey supply a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and offer high value to its customers.
• Strong financial position allows the company to think about numerous development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase constraints for the business in executing its development program. The weak points of Audit Assignment Case Study Help are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose specific growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the development of the publishing market is declining since 2008, impacting Audit Assignment Case Study Solution also, but the growth might be revived by availing specific chances provided in the market. The market opportunities for CMP include;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Hazards
The changing macro trends in the market and increasing competitors in the publishing industry has actually posed certain threats to Audit Assignment Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could cause decreasing market share of Audit Assignment Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by utilizing specific methods like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the industry along with existence of high competition increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of information, the financial ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total earnings of Audit Assignment Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is quite effective in attracting a big number of clients at a possible rate.
Together with it, the second chart which shows the annual development in the Audit Assignment Case Study Help total properties, shows that the company is quite effective in adding value to its properties through its earnings. The development in properties reveals that the total value of the company is also increasing with increasing the total revenues. (Unidentified, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the distribution of overall revenues of the company. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company could move towards other business sectors with a potential growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the performance of the business and the current trends in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Promotion Department of the Communist Party of China. It could be said that the overall political forces affecting CMP business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the earnings level of consumers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading useful materials etc. China has the greatest population on the planet with a high population development, revealing the increasing number of consumers of the Audit Assignment Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to meet the altering customer choices.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading techniques and so on. Enhancement of science and innovation in addition to the rise of digital publishing might lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Audit Assignment Case Study Solution consists of the issues of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's Five Forces Model).
Porter's 5 Forces Design might be utilized to evaluate the appearance of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing market. The existence of extreme competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute items for the published documents is the documents provided in the virtual libraries on particular sites. The changing customer choices towards digital learning increase the threat of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. 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 suppliers of the Audit 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 total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
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 needs high quality documents at competitive costs.
Competitors Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Audit Assignment Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the very same period, CIP releases comparable kind of books. For a large period, CIP held the largest market share, and still ranks 3rd and second in numerous market sections, with a major concentrate on educational publications. CIP functions 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 marketplace share of Audit Assignment Case Study Help quickly in the current market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Audit Assignment Case Study Solution and CIP. It is likewise one of the prominent players in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing variety of Clients
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using existing abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competitors 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 need of its items in the market.
Suggestions
As the preferences are shifting towards digital publishing and the company need an immediate service to prevent the declining industry growth. The company might also think about the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the company ought to initially collects the information related to the customer need, the potential markets, the federal government regulations and the data related to the competitors presented in the market. If the initial offering proves a success, the business ought to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining considering that 2008, revealing a risk to the company's long term existence, however the situation can be managed by considering an advancement plan in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the risk of failure for entrance in the new markets.
