Financial Statement Analysis Assignment Case Study Solution and Analysis
Intro
Financial Statement Analysis 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 company and a big thorough Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Crucial Concerns
CMP has invested its 60 years journey efficiently, being a successful publishing home, however, the altering macro market patterns and forces bring specific obstacles to the publishing market in general and Financial Statement Analysis Assignment Case Study Solution in particular. These factors consist of;
• Entryway of the new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change 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 valuable experience, technical resources and the capabilities of the business could be utilized 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
Financial Statement Analysis Assignment Case Study Analysis has particular strengths that can be utilized to reduce the risks, conquer the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Financial Statement Analysis Assignment Case Study Solution in the publishing market i.e. 60 years allows the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities created by its successful journey offer a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its threat and provide high worth to its consumers.
• Strong financial position enables the company to think about a number of advancement opportunities with no fear of raising fund externally.
Weak points
Along with the strengths, the company has specific weaknesses which might increase constraints for the company in executing its advancement program. The weaknesses of Financial Statement Analysis Assignment Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It must propose particular growth strategies to prevent its reliance over the Chinese markets to attain long term growth.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Financial Statement Analysis Assignment Case Study Analysis as well, however the development could be restored by availing particular opportunities presented 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 customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by using its huge financial resources.
Dangers
The altering macro patterns in the market and increasing competitors in the publishing industry has presented certain risks to Financial Statement Analysis Assignment Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could 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 rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing certain methods like aggressive promo, quality products, and so on
• Entrance of brand-new publishing firms in the industry together with existence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
Due to absence of information, the financial ratios of CMP might not be computed. It might be evaluated from the Appendix III that the annual total earnings of Financial Statement Analysis Assignment Case Study Help throughout 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 company is rather efficient in bring in a big number of consumers at a possible rate.
Along with it, the 2nd graph which reveals the yearly development in the Financial Statement Analysis Assignment Case Study Solution total possessions, shows that the company is quite efficient in adding worth to its possessions through its earnings. The development in properties reveals that the total worth of the firm is also increasing with increasing the overall incomes. (Unknown, 2013).
Another monetary analysis of the business utilizing the given data could be the analysis relating to the circulation of total incomes of the business. Major part of the revenues of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other company sectors with a prospective development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the numerous external forces impacting the performance of the business and the current patterns in the external environment of the business. A brief PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant influence on the frame of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. For that reason, it might be said that the overall political forces impacting Financial Statement Analysis Assignment Case Study Help service are high. The 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 CMP in specific includesthe rates of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques and so on. Enhancement of science and innovation in addition to the increase of digital publishing might reduce the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Environmental forces impacting Financial Statement Analysis Assignment Case Study Help includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink used while publishing needs to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the attractiveness of the publishing market China. A quick analysis of the Porter's Five Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to attract new entrants to the publishing market. The existence of extreme competitors and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Threat of Substitution.
Threat of Replacement is high for the Chinese Publishing Industry. The alternative products for the released files is the files provided in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the risk of substitution for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Financial Statement Analysis Assignment Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer 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 buyers requires high quality documents at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive market with the existence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Financial Statement Analysis Assignment Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts 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 could wean the market share of CMP quickly in the present market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same duration as Financial Statement Analysis Assignment Case Study Solution and CIP. It is likewise one of the prominent players in the publishing industry with a yearly total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Minimizing dependence over the Chinese markets.
• Increasing number of Customers
• Growth opportunities.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Usage of possible resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to customers.
Cons
• Competition 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 company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an immediate option to prevent the decreasing industry growth. The business might also think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the data related to the customer need, the possible markets, the government guidelines and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company 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 market is declining considering that 2008, revealing a risk to the business's long term presence, however the situation can be managed by thinking about a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.
