Financial Statement Analysis Assignment Case Study Solution and Analysis
Financial Statement Analysis Assignment Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info service provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Financial Statement Analysis Assignment Case Study Help has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These factors include;
• Entryway of the new publishing firms in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
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 situation? Do the long important experience, technical resources and the abilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Financial Statement Analysis Assignment Case Study Analysis has certain strengths that can be utilized to minimize the dangers, conquer the weakness and obtain the chances. Strengths of CMP are provided as follows;
• The long term experience of Financial Statement Analysis Assignment Case Study Solution in the publishing industry i.e. 60 years permits the company to offer high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities produced by its effective journey provide a competitive advantage to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position allows the company to consider numerous advancement chances with no fear of raising fund externally.
Along with the strengths, the company has specific weak points which could increase restraints for the business in implementing its development program. The weaknesses of Financial Statement Analysis Assignment Case Study Analysis are offered as follows;
• Despite of being a science and technology publishing company, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose particular growth plans to prevent its dependence over the Chinese markets to accomplish long term growth.
The growth of the publishing industry is declining considering that 2008, impacting Financial Statement Analysis Assignment Case Study Help as well, however the development might be revived by availing particular opportunities provided in the market. The market chances for CMP consist of;
• The company could also introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competitors in the publishing industry has postured specific risks to Financial Statement Analysis Assignment Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might result in declining market share of Financial Statement Analysis Assignment Case Study Analysis due to the customer shift towards virtual libraries.
• The presence of a great deal of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using particular strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing companies in the market together with existence of high competition increases the hazard of losing the consumer base.
Due to lack of information, the monetary ratios of CMP might not be calculated. It might be analyzed from the Appendix III that the yearly overall revenues of Financial Statement Analysis Assignment Case Study Solution throughout the duration 2000-2012 are growing at a high development rate, showing that the annual need of the items of CMP is growing and the business is quite effective in drawing in a large number of clients at a possible rate.
In addition to it, the second graph which reveals the yearly growth in the Financial Statement Analysis Assignment Case Study Help overall possessions, shows that the company is rather effective in including worth to its possessions through its profits. The development in assets shows that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the company using the given data might be the analysis relating to the circulation of total profits 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 segments with a possible development to achieve its future advancement goal.
PESTEL analysis could be conducted to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Financial Statement Analysis Assignment Case Study Solution service are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Financial Statement Analysis Assignment Case Study Solution in specific includesthe prices of paper, the earnings 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. Together with it, the economic policies connected to the import of books impact the general company at CPM. Nevertheless, China's financial conditions are rather favorable for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards reading useful products etc. China has the greatest population worldwide with a high population growth, revealing the increasing number of consumers of the Financial Statement Analysis Assignment Case Study Solution. Nevertheless, the consumer preferences are moving towards digital publishing instead of the standard was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological forces affecting the CMP include the technological development in the reading strategies and so on. Improvement of science and innovation in addition to the rise of digital publishing could reduce the demand for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting Financial Statement Analysis Assignment Case Study Help includes the issues of environmental communities over the use 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 harmful for the environment.
Legal guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be utilized to examine the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is provided as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the industry tends to attract new entrants to the publishing market. Nevertheless, the presence of intense competitors and the requirement of huge capital tends to demotivate new entrants to enter in the market.
Threat of Alternative.
Risk of Substitution is high for the Chinese Publishing Industry. The alternative products for the released documents is the documents presented in the virtual libraries on certain websites. The altering consumer preferences towards digital learning increase the hazard of alternative for the market.
Competitive competition in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Financial Statement Analysis Assignment Case Study Help consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Haggling power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality documents at competitive rates.
CMP runs in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Financial Statement Analysis Assignment Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry 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 could wean the market share of CMP easily in the existing market scenario.
Posts and telecommunication Press (PTP).
It was likewise established in the exact same period as Financial Statement Analysis Assignment Case Study Help and CIP. It is also one of 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 dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company segments to the brand-new one can lead the business to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the business along with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to attain its future development. As the preferences are moving towards digital publishing and the company need an instant option to avoid the declining industry development. For that reason, intro of digital publishing could show to be an immediate option with low quantity of threat for the business. The company might also think about the expansion program after the success of its digital publishing program.
In order to present digital publishing in its product portfolio, the company needs to initially gathers the data related to the customer need, the potential markets, the federal government policies and the information related to the competitors presented in the market. If the initial offering shows a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
The development of the publishing industry is decreasing given that 2008, revealing a risk to the company's long term existence, however the situation can be managed by considering a development plan in the future. The company could think about introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.