How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution and Analysis
Introduction
How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information company and a big thorough Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis has actually invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and CMP in particular. These factors consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Enhancement 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 important experience, technical resources and the abilities of the company could be utilized to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution has certain strengths that can be utilized to minimize the threats, overcome the weakness and avail the chances. Strengths of CMP are offered as follows;
• The long term experience of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis in the publishing market i.e. 60 years allows the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities produced by its effective journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its threat and provide high worth to its clients.
• Strong monetary position enables the business to consider a number of development opportunities without any worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has specific weak points which could increase restrictions for the company in executing its advancement program. The weak points of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing market is decreasing because 2008, impacting How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help too, however the growth might be restored by availing particular chances provided in the market. The market opportunities 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 think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has positioned specific threats to How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could lead to declining market share of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promo, quality items, etc.
• Entryway of new publishing companies in the market along with existence of high competition increases the threat of losing the consumer base.
Monetary Analysis.
Due to lack of data, the financial ratios of CMP could not be determined. It could be evaluated from the Appendix III that the annual total incomes of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help during the duration 2000-2012 are growing at a high growth rate, revealing that the yearly demand of the products of CMP is growing and the company is rather efficient in bring in a large number of customers at a potential price.
Along with it, the 2nd chart which reveals the annual growth in the How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis overall assets, reveals that the company is quite efficient in adding value to its assets through its earnings. The development in assets reveals that the total worth of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided data could be the analysis regarding the distribution of total revenues of the company. Huge part of the revenues 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 potential growth to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces impacting the performance of the company and the current patterns in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable 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 Promotion Department of the Communist Party of China. Therefore, it might be said that the general political forces affecting How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help organisation are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the CMP in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP growth of the country. All these forces combine effect the need for the publishing market.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing might reduce the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis consists of the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink used while publishing ought to not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Model could be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the industry tends to bring in brand-new entrants to the publishing market. The presence of extreme competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Alternative.
Threat of Alternative is high for the Chinese Publishing Industry. The substitute items for the published documents is the files presented in the virtual libraries on particular websites. The changing customer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Competition.
Competitive competition in the publishing industry 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. Along with it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major providers of the How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Solution include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the presence 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 rivals of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close rivals of CMP. Established in the exact same period, CIP releases similar type of books. For a big period, CIP held the largest market share, and still ranks 3rd and second in numerous market segments, with a significant concentrate on academic publications. CIP serves as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of How Technological Advances Benefit And Challenge Financial Accounting And Managerial Accounting Data Security Case Study Help easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the exact same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is likewise one of the popular players in the publishing industry with a yearly total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Suggestions
With the deep analysis of the internal and external environment of the company together with the industry analysis and the competitor analysis, Alternative 2 is advised to CMP to attain its future development. As the preferences are moving towards digital publishing and the business need an immediate option to avoid the declining industry growth. For that reason, introduction of digital publishing could prove to be an instant solution with low amount of risk for the company. Nevertheless, the business could also think about the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to first collects the data related to the consumer demand, the potential markets, the government guidelines and the data related to the rivals presented in the market. If the initial offering proves a success, the company must go for the other markets. In this method the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing since 2008, revealing a risk to the company's long term presence, but the scenario can be managed by considering an advancement strategy in the future. The company could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the threat of failure for entryway in the brand-new markets.
