Government And Nonprofit Accounting Case Study Solution and Analysis
Government And Nonprofit Accounting Case Study Analysis is the largest publishing business with a highest market share in the China's book retail market. CMP has actually become a specialized information service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Government And Nonprofit Accounting Case Study Solution has spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring particular obstacles to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing firms in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Improvement of science and technology.
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 circumstance? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Government And Nonprofit Accounting Case Study Analysis has certain strengths that can be utilized to minimize the threats, overcome the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Government And Nonprofit Accounting Case Study Help in the publishing market i.e. 60 years permits the business to offer high quality items at a lower expense using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its risk and supply high value to its clients.
• Strong financial position allows the company to consider several development chances without any worry of raising fund externally.
Together with the strengths, the business has particular weak points which could increase restraints for the company in executing its development program. The weaknesses of Government And Nonprofit Accounting Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose particular growth strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Although, the growth of the publishing industry is decreasing considering that 2008, impacting Government And Nonprofit Accounting Case Study Analysis too, but the development might be restored by availing specific opportunities presented in the market. The market chances for CMP include;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast funds.
The altering macro trends in the market and increasing competitors in the publishing industry has positioned specific risks to Government And Nonprofit Accounting Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Government And Nonprofit Accounting Case Study Help due to the consumer 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 acquire a strong consumer base by utilizing specific techniques like aggressive promo, quality products, and so on
• Entryway of new publishing companies in the industry in addition to existence of high competition increases the risk of losing the client base.
The company has a rather competitive financial efficiency. Due to absence of information, the financial ratios of CMP could not be computed. However, the total financial efficiency of the company could be analyzed by using the charts given in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual need of the items of Government And Nonprofit Accounting Case Study Help is growing and the company is rather effective in bring in a a great deal of clients at a prospective cost.
Together with it, the 2nd graph which reveals the yearly development in the Government And Nonprofit Accounting Case Study Analysis overall possessions, shows that the company is quite efficient in adding worth to its possessions through its revenues. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another financial analysis of the company using the provided data might be the analysis regarding the distribution of overall profits of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a prospective growth to attain its future advancement goal.
PESTEL analysis might be conducted to find out the different external forces impacting the performance of the business and the current trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Celebration of China. Therefore, it could be said that the total political forces affecting Government And Nonprofit Accounting Case Study Solution business are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Economic forces impacting the publishing sector in general and the Government And Nonprofit Accounting Case Study Analysis in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces combine impact the need for the publishing market. In addition to it, the financial policies related to the import of books impact the overall business at CPM. China's economic conditions are rather beneficial for CMP with high GDP growth and customer income level.
Social and Demographical.
The consumer choices are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP must focus on digital publishing to meet the changing customer choices.
Technological forces impacting 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 could decrease the need for the CMP products, if specific actions would not be taken quickly.
Ecological forces impacting Government And Nonprofit Accounting Case Study Help includes the issues of ecological communities over the usage 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 needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved initially by the Federal government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and people in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be utilized to analyze the appearance of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to bring in brand-new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Alternative is high for the Chinese Publishing Industry. The substitute items for the published files is the files presented in the digital libraries on particular sites. The altering customer preferences towards digital knowing increase the hazard of substitution for the market.
Competitive rivalry in the publishing industry is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Government And Nonprofit Accounting Case Study Help include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider 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 buyers requires high quality files at competitive prices.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant rivals of Government And Nonprofit Accounting Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market 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 quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Government And Nonprofit Accounting Case Study Analysis and CIP. It is also one of the prominent players in the publishing industry with an annual total profits of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce using existing abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose need of its items in the market.
As the choices are shifting towards digital publishing and the company require an instant solution to avoid the decreasing market growth. The business might also think about the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must first gathers the information connected to the customer need, the possible markets, the government policies and the data connected to the competitors provided in the market. After that, the company must choose one potential sector for its initial offering. It ought to gather research study that how it might distinguish its digital publishing from the existing rivals' products. After all the steps above the business ought to go for the preliminary offering. If the preliminary offering shows a success, the company should opt for the other markets. In this way the business would have the ability to execute its digital publishing program.
Although, the development of the publishing industry is decreasing because 2008, revealing a threat to the business's long term existence, but the situation can be controlled by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the threat of failure for entryway in the new markets.