Finance Exam Case Study Solution and Analysis
Introduction
Finance Exam Case Study Solution is the biggest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized information company and a large extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Concerns
CMP has actually invested its 60 years journey efficiently, being a successful publishing home, however, the changing macro market trends and forces bring specific challenges to the publishing industry in basic and Finance Exam Case Study Analysis in particular. These elements include;
• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the company could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Finance Exam Case Study Help has certain strengths that can be used to decrease the hazards, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Finance Exam Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and provide high worth to its consumers.
• Strong financial position enables the business to consider several development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has specific weaknesses which might increase restrictions for the company in implementing its development program. The weaknesses of Finance Exam Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain growth strategies to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
Although, the growth of the publishing industry is declining given that 2008, affecting Finance Exam Case Study Solution too, but the development could be revived by availing specific opportunities presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.
Threats
The changing macro trends in the market and increasing competition in the publishing market has posed certain risks to Finance Exam Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might lead to decreasing market share of Finance Exam Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can gain a strong consumer base by utilizing specific methods like aggressive promo, quality products, etc.
• Entrance of new publishing firms in the industry together with presence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be calculated. Nevertheless, the general financial efficiency of the company could be evaluated by utilizing the graphs given up the case Appendices. It could be evaluated from the Appendix III that the annual total earnings of CMP during the period 2000-2012 are growing at a high development rate, revealing that the yearly need of the products of Finance Exam Case Study Solution is growing and the business is rather efficient in attracting a a great deal of clients at a prospective rate.
In addition to it, the 2nd graph which shows the yearly development in the Finance Exam Case Study Analysis total assets, reveals that the business is rather effective in including worth to its possessions through its profits. The growth in possessions reveals that the total worth of the company is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business utilizing the offered data might be the analysis relating to the circulation of total profits of the company. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company could move towards other organisation segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the different external forces impacting the performance of the business and the current trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the overall political forces impacting Finance Exam Case Study Solution organisation are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Enhancement of science and innovation along with the rise of digital publishing could decrease the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Finance Exam Case Study Analysis includes the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be hazardous for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved first by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model could be used to analyze the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to bring in new entrants to the publishing market. The presence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Alternative.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on specific sites. The altering customer choices towards digital learning increase the threat of alternative for the market.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Finance Exam Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive costs.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Finance Exam Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a large time period, CIP held the biggest market share, and still ranks 2nd and third in different market sections, with a significant focus on educational publications. CIP functions 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 marketplace share of Finance Exam Case Study Solution easily in the present market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise among the popular players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its items 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 achieve its future advancement. As the preferences are shifting towards digital publishing and the business need an immediate service to prevent the declining industry development. For that reason, introduction of digital publishing could show to be an instant service with low quantity of risk for the business. However, the business might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company needs to initially gathers the information related to the customer demand, the possible markets, the government policies and the data related to the rivals provided in the market. After that, the company ought to decide one prospective section for its preliminary offering. It needs to gather research study that how it might separate its digital publishing from the existing competitors' items. After all the steps above the business ought to opt for the preliminary offering. The business ought to go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is decreasing since 2008, showing a threat to the business's long term presence, however the circumstance can be managed by thinking about an advancement strategy in the future. The company might think about introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
