Fund Development And Financial Management For Non Profit Organizations Case Study Solution and Analysis
Introduction
Fund Development And Financial Management For Non Profit Organizations Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP supplies a variety of services including; collecting details, processing information and communication services. Significant business sectors of the company consist of; books, regulars, consultancy and distribution. The business has a vast item portfolio and its significant items include books, periodicals, online media, exhibits, research reports and so on. Fund Development And Financial Management For Non Profit Organizations Case Study Solution has ended up being a specialized information company and a big thorough Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Vital Issues
Although, Fund Development And Financial Management For Non Profit Organizations Case Study Solution has actually invested its 60 years journey smoothly, being a successful publishing home, nevertheless, the altering macro market trends and forces bring particular challenges to the publishing market in basic and CMP in specific. These elements consist of;
• Entryway of the brand-new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Fund Development And Financial Management For Non Profit Organizations Case Study Help has certain strengths that can be made use of to lower the dangers, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Fund Development And Financial Management For Non Profit Organizations Case Study Help in the publishing market i.e. 60 years enables the business to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey offer a competitive advantage to CMP.
• Huge item portfolioof CMP assists it to diversify its danger and supply high value to its clients.
• Strong financial position permits the business to think about several development chances without any fear of raising fund externally.
Weaknesses
Along 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 Analysis are offered as follows;
• Despite of being a science and innovation publishing company, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose specific expansion plans to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
The growth of the publishing industry is declining given that 2008, affecting Fund Development And Financial Management For Non Profit Organizations Case Study Analysis as well, however the growth could be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competitors in the publishing market has positioned specific dangers to Fund Development And Financial Management For Non Profit Organizations Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Fund Development And Financial Management For Non Profit Organizations Case Study Help due to the customer shift towards digital libraries.
• The existence of large number of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using particular methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the industry in addition to existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The company has a rather competitive monetary efficiency. Due to absence of data, the financial ratios of CMP could not be determined. The general monetary efficiency of the business might be analyzed by utilizing the charts offered in the case Appendices. It could be evaluated from the Appendix III that the yearly total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of Fund Development And Financial Management For Non Profit Organizations Case Study Help is growing and the company is quite effective in drawing in a a great deal of customers at a potential cost.
Along with it, the 2nd chart which reveals the annual development in the Fund Development And Financial Management For Non Profit Organizations Case Study Analysis overall possessions, reveals that the company is rather effective in including worth to its possessions through its earnings. The growth in properties reveals that the overall value of the company is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given information might be the analysis concerning the distribution of total earnings of the business. Major part of the earnings 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 service sections with a possible growth to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the different external forces impacting the performance of the company and the recent trends in the external environment of the company. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the frame of mind of individuals 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. Therefore, it might be stated that the total political forces affecting Fund Development And Financial Management For Non Profit Organizations Case Study Solution company are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in basic and the Fund Development And Financial Management For Non Profit Organizations Case Study Help in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies associated with the import of books affect the general organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP development and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards reading informative products and so on. China has the highest population in the world with a high population growth, showing the increasing variety of customers of the Fund Development And Financial Management For Non Profit Organizations Case Study Help. However, the consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Improvement of science and technology together with the increase of digital publishing might minimize the need for the CMP items, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting Fund Development And Financial Management For Non Profit Organizations Case Study Analysis includes the issues of ecological neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing ought to not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be entered in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's Five Forces Model could be utilized to examine the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in new entrants to the publishing industry. The presence of intense competitors and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Risk of Alternative is high for the Chinese Publishing Market. The replacement items for the released documents is the documents provided in the virtual libraries on particular websites. The altering consumer choices towards digital knowing increase the threat of alternative for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of a great deal of customers 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 likewise participating in the market increasing the competitors for CMP.
Bargaining Power of Provider.
The significant providers of the Fund Development And Financial Management For Non Profit Organizations Case Study Solution consist of the providers of the paper for releasing documents. 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 Purchaser.
Negotiating 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 needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in an extremely competitive industry with the existence of large number of competitors. The business has a competitive position in the market with the highest 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 Industry Press (CIP).
CIP acts 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 market share of CMP easily in the present market situation.
Posts and telecommunication Press (PTP).
It was also founded in the very same period as Fund Development And Financial Management For Non Profit Organizations Case Study Analysis and CIP. It is likewise one of the prominent gamers in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing variety of Customers
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage 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 present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the new one can lead the company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is advised to CMP to attain its future advancement. As the choices are shifting towards digital publishing and the business need an instant service to avoid the decreasing market growth. Therefore, introduction of digital publishing could show to be an instant service with low amount of threat for the company. The business could also consider the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should first collects the information related to the customer demand, the potential markets, the federal government guidelines and the information related to the competitors provided in the market. If the initial offering proves a success, the business must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The growth of the publishing industry is declining since 2008, revealing a risk to the company's long term presence, but the situation can be controlled by considering an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the danger of failure for entrance in the brand-new markets.
