Financial Health Assignment Case Study Solution and Analysis
Introduction
Financial Health Assignment Case Study Solution is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
CMP has actually invested its 60 years journey smoothly, being an effective publishing home, nevertheless, the changing macro market trends and forces bring certain challenges to the publishing market in basic and Financial Health Assignment Case Study Analysis in specific. These aspects include;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The transformation 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Financial Health Assignment Case Study Solution has certain strengths that can be utilized to reduce the risks, get rid of the weak point and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Financial Health Assignment Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high value to its consumers.
• Strong monetary position enables the company to consider several advancement opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase constraints for the company in implementing its advancement program. The weak points of Financial Health Assignment Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose specific expansion plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing market is declining because 2008, impacting Financial Health Assignment Case Study Help as well, but the development might be restored by availing particular opportunities presented in the market. The marketplace chances for CMP include;
• The company might likewise introduce Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP might consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
Dangers
The changing macro patterns in the market and increasing competition in the publishing market has presented specific dangers to Financial Health Assignment Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might result in decreasing market share of Financial Health Assignment Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the market along with existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP could not be determined. It might be evaluated from the Appendix III that the annual overall earnings of Financial Health Assignment Case Study Help during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of CMP is growing and the business is rather efficient in bring in a large number of clients at a possible price.
In addition to it, the 2nd graph which shows the annual growth in the Financial Health Assignment Case Study Analysis overall assets, shows that the company is quite effective in including worth to its possessions through its incomes. The growth in properties shows that the overall worth of the firm is also increasing with increasing the total incomes. (Unknown, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis regarding the circulation of overall earnings 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 business might move towards other service sections with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the state of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces affecting Financial Health Assignment Case Study Help organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economical.
Financial forces impacting the publishing sector in basic and the Financial Health Assignment Case Study Help in specific includesthe prices of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies related to the import of books impact the general company at CPM. China's economic conditions are quite beneficial for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards checking out useful products and so on. China has the highest population in the world with a high population growth, revealing the increasing number of customers of the Financial Health Assignment Case Study Solution. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing could lower the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Financial Health Assignment Case Study Solution consists of the concerns of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be approved initially by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to attract new entrants to the publishing market. The existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents presented in the digital libraries on certain websites. The changing customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Financial Health Assignment Case Study Analysis include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. However, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Financial Health Assignment Case Study Solution consist of;.
• Chemical Market 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the popular gamers in the publishing industry with a yearly overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose demand of its products in the market.
Recommendations
As the preferences are shifting towards digital publishing and the company need an immediate solution to prevent the declining market growth. The business might likewise consider the growth program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the business needs to first collects the data related to the consumer need, the possible markets, the federal government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing because 2008, revealing a threat to the business's long term existence, but the scenario can be controlled by considering a development strategy in the future. The business could think about presenting digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the new markets.
