Fund Development And Financial Management For Non Profit Organizations Case Study Solution and Analysis
Fund Development And Financial Management For Non Profit Organizations Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering information, processing info and interaction services. Significant service sections of the company consist of; books, regulars, consultancy and distribution. The business has a huge item portfolio and its significant products include books, periodicals, online media, exhibitions, research reports etc. Fund Development And Financial Management For Non Profit Organizations Case Study Help has ended up being a specialized details service provider and a large comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey efficiently, being an effective publishing home, however, the altering macro market trends and forces bring certain obstacles to the publishing market in general and Fund Development And Financial Management For Non Profit Organizations Case Study Analysis in specific. These factors include;
• Entryway of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Improvement of science and technology.
The transformation 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 important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Fund Development And Financial Management For Non Profit Organizations Case Study Solution has particular strengths that can be made use of to decrease the dangers, get rid of the weak point and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of Fund Development And Financial Management For Non Profit Organizations Case Study Solution in the publishing market i.e. 60 years enables the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the company to think about a number of development opportunities without any worry of raising fund externally.
Together with the strengths, the company has certain weaknesses which could increase constraints for the company in implementing its advancement program. The weaknesses of Fund Development And Financial Management For Non Profit Organizations Case Study Solution are given as follows;
• Despite of being a science and technology publishing company, the company still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term development.
Although, the development of the publishing industry is decreasing considering that 2008, affecting Fund Development And Financial Management For Non Profit Organizations Case Study Solution also, however the development could be restored by availing particular chances provided in the market. The market opportunities for CMP include;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about a development program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge financial resources.
The changing macro patterns in the market and increasing competitors in the publishing market has actually posed certain dangers to Fund Development And Financial Management For Non Profit Organizations Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Fund Development And Financial Management For Non Profit Organizations Case Study Analysis due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as competitors can get a strong consumer base by using certain strategies like aggressive promo, quality items, etc.
• Entryway of brand-new publishing firms in the industry together with presence of high competitors increases the threat of losing the customer base.
The company has a quite competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be computed. However, the overall financial efficiency of the company might be examined by using the charts given in the case Appendices. It could be analyzed from the Appendix III that the annual total profits of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Fund Development And Financial Management For Non Profit Organizations Case Study Solution is growing and the business is rather efficient in bring in a large number of customers at a prospective rate.
Along with it, the 2nd chart which shows the yearly growth in the Fund Development And Financial Management For Non Profit Organizations Case Study Analysis overall properties, reveals that the business is rather efficient in adding worth to its properties through its profits. The growth in properties reveals that the overall worth of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the business utilizing the offered data might be the analysis regarding the circulation of overall earnings of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a possible development to accomplish its future advancement goal.
PESTEL analysis could be performed to discover the numerous external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial influence on the mindset of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and directed by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the Fund Development And Financial Management For Non Profit Organizations Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the overall GDP development of the nation. All these forces integrate effect the need for the publishing market. Together with it, the economic policies related to the import of books affect the general organisation at CPM. However, China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer choices.
Technological forces impacting the CMP include the technological advancement in the reading methods etc. Enhancement of science and technology in addition to the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental forces impacting Fund Development And Financial Management For Non Profit Organizations Case Study Help includes 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 non reusable and the ink utilized while publishing needs to not be hazardous for the environment.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Model).
Porter's Five Forces Design could be utilized to examine the attractiveness of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Market is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. The existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Danger of Substitution.
Hazard of Replacement is high for the Chinese Publishing Industry. The substitute products for the published documents is the files provided in the digital libraries on particular sites. The changing consumer choices towards digital learning increase the hazard of replacement for the market.
Competitive rivalry 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. Together with it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant providers of the Fund Development And Financial Management For Non Profit Organizations Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive rates.
CMP runs in an extremely competitive industry with the presence of large number of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Fund Development And Financial Management For Non Profit Organizations Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Established in the same period, CIP publishes comparable kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in various market sections, with a major focus on academic publications. CIP functions as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of Fund Development And Financial Management For Non Profit Organizations Case Study Analysis easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
It was likewise founded in the exact same period as Fund Development And Financial Management For Non Profit Organizations Case Study Analysis and CIP. It is likewise one of the prominent players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternative-1: Broaden towards New Markets
• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of potential resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to consumers.
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose need of its items in the market.
As the choices are moving towards digital publishing and the company need an immediate option to avoid the declining market growth. The company could also think about the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the company ought to initially collects the information related to the customer demand, the potential markets, the federal government regulations and the data related to the rivals provided in the market. After that, the business needs to choose one potential sector for its initial offering. It needs to gather research study that how it could distinguish its digital publishing from the existing competitors' products. The actions above the company should go for the initial offering. The company must go for the other markets if the initial offering shows a success. In this way the company would be able to execute its digital publishing program.
The growth of the publishing industry is declining since 2008, showing a risk to the business's long term presence, however the scenario can be controlled by considering an advancement strategy in the future. The business might consider introducing digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entrance in the new markets.