Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Solution and Analysis
Introduction
Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized information supplier and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Critical Problems
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, however, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Help in particular. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this situation? Do the long valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis has specific strengths that can be utilized to lower the hazards, conquer the weak point and get the opportunities. Strengths of CMP are given as follows;
• The long term experience of Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Help in the publishing industry i.e. 60 years allows the company to offer high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its customers.
• Strong financial position permits the company to consider a number of advancement chances without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weaknesses which might increase restraints for the business in executing its development program. The weaknesses of Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing firm, the business still has traditional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose certain growth plans to avoid its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Solution as well, but the development could be restored by availing specific chances provided in the market. The market chances for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its large financial resources.
Dangers
The altering macro trends in the market and increasing competition in the publishing industry has posed specific dangers to Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using specific techniques like aggressive promo, quality products, etc.
• Entrance of brand-new publishing companies in the market along with presence of high competition increases the hazard of losing the client base.
Financial Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the annual overall profits of Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of CMP is growing and the business is rather effective in drawing in a large number of consumers at a potential rate.
In addition to it, the 2nd graph which reveals the yearly development in the Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis total properties, reveals that the company is quite effective in adding value to its properties through its incomes. The growth in assets reveals that the overall value of the company is also increasing with increasing the overall earnings. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided data might be the analysis concerning the circulation of total earnings of the business. Major part of the incomes of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sections with a potential growth to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to discover the different external forces impacting the efficiency of the business and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the total political forces affecting Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Solution organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out useful products etc. China has the greatest population on the planet with a high population development, revealing the increasing number of consumers of the Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis. Nevertheless, the customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation along with the increase of digital publishing could lower the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations concerning 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 Government to be entered in the publishing market. The regulation prohibits direct involvement of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Danger of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. However, the presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Substitution.
Danger of Substitution is high for the Chinese Publishing Industry. The alternative products for the published files is the documents presented in the digital libraries on certain sites. The changing consumer choices towards digital learning increase the threat 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 Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are also entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis include the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a danger 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 existing market situation.
Posts and telecommunication Press (PTP).
It was also established in the very same period as Citigroup 2007 Financial Reporting And Regulatory Capital Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the business in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the preferences are moving towards digital publishing and the business need an immediate solution to avoid the decreasing industry growth. Therefore, introduction of digital publishing might prove to be an instant option with low quantity of threat for the business. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its product portfolio, the business must initially gathers the data connected to the customer demand, the possible markets, the federal government guidelines and the data related to the rivals provided in the market. After that, the business needs to choose one potential segment for its initial offering. It should collect research study that how it could distinguish its digital publishing from the existing rivals' items. The actions above the company must go for the preliminary offering. If the initial offering shows a success, the business needs to choose the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
Although, the development of the publishing market is declining since 2008, showing a danger to the company's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its advancement program at instant basis and to prevent the risk of failure for entrance in the brand-new markets.
