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Part Two Audit Preparation Case Analysis

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Part Two Audit Preparation Case Study Solution and Analysis


Intro

Part Two Audit Preparation Case Study Help is the largest publishing company with a highest market share in the China's book retail market. CMP has actually become a specialized details provider and a large extensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.

Critical Concerns

Although, Part Two Audit Preparation Case Study Help has actually spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in particular. These factors include;

• Entrance of the brand-new publishing companies in the industry.
• Declining development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
The improvement of the macro markets have raised several concerns 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 abilities of the company could be used to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Part Two Audit Preparation Case Study Analysis has specific strengths that can be used to reduce the hazards, get rid of the weakness and obtain the chances. Strengths of CMP are provided as follows;

• The long term experience of Part Two Audit Preparation Case Study Help in the publishing industry i.e. 60 years allows the business to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities created by its successful journey offer a competitive benefit to CMP.
• Vast product portfolioof CMP helps it to diversify its danger and supply high worth to its customers.
• Strong financial position permits the company to consider numerous advancement chances with no fear of raising fund externally.

Weak points

In addition to the strengths, the company has specific weak points which might increase restraints for the company in implementing its development program. The weaknesses of Part Two Audit Preparation Case Study Analysis are offered as follows;

• Despite of being a science and innovation publishing firm, the business 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 certain growth plans to prevent its dependence over the Chinese markets to achieve long term growth.
Porter's 5 Forces Analysis
Opportunities

The growth of the publishing market is declining considering that 2008, affecting Part Two Audit Preparation Case Study Solution as well, however the growth might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;

• The business could likewise present Digital Publishing by using its long term technical experience and a strong customer recognition in the market.
• CMP could consider a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by using its large funds.

Hazards

The changing macro patterns in the market and increasing competitors in the publishing market has actually posed specific dangers to Part Two Audit Preparation Case Study Solution including;( Gurel, 2017).

• Introduction of digital publishing i.e. virtual libraries might lead to decreasing market share of Part Two Audit Preparation Case Study Solution due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong customer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market together with existence of high competition increases the danger of losing the consumer base.

Financial Analysis.
Swot Analysis
The company has a quite competitive financial efficiency. Due to absence of information, the financial ratios of CMP might not be computed. The total monetary efficiency of the business could be analyzed by utilizing the charts offered in the case Appendices. It might be analyzed from the Appendix III that the annual overall earnings of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the products of Part Two Audit Preparation Case Study Help is growing and the business is quite efficient in drawing in a large number of consumers at a potential rate.

Along with it, the 2nd graph which reveals the yearly growth in the Part Two Audit Preparation Case Study Solution overall properties, shows that the business is rather effective in adding worth to its possessions through its profits. The development in properties reveals that the total value of the company is likewise increasing with increasing the overall profits. (Unknown, 2013).

Another financial analysis of the company using the provided data could be the analysis regarding the distribution of overall revenues of the business. Major part of the revenues of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other organisation segments with a prospective development to accomplish its future advancement goal.

PESTEL Analysis

PESTEL analysis could be carried out to discover the different external forces impacting the performance of the company and the current patterns in the external environment of the company. A quick PESTEL analysis of the business is given as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a significant impact on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It might be said that the general political forces affecting CMP business are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.

Economical.

Financial forces impacting the publishing sector in general and the CMP in particular includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP development of the country. All these forces combine effect the demand for the publishing market.

Social and Demographical.

Social and demographical forces consist of the population growth, the consumer's choices towards reading informative materials and so on. China has the highest population on the planet with a high population development, revealing the increasing variety of consumers of the Part Two Audit Preparation Case Study Solution. Nevertheless, the customer preferences are shifting towards digital publishing instead of the standard was of publishing. In this regard, CMP must concentrate on digital publishing to satisfy the changing consumer choices.

Technological.

Technological forces impacting the CMP include the technological development in the reading strategies etc. Improvement of science and innovation together with the rise of digital publishing could minimize the demand for the CMP items, if certain actions would not be taken soon.

Environmental.
Vrio Analysis
Ecological forces affecting Part Two Audit Preparation Case Study Solution consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be harmful for the environment.

Legal.

Legal guidelines 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 involvement of foreign entities and individuals in the publishing sector.

Market Analysis (Porter's 5 Forces Design).

Porter's 5 Forces Design could be used to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's 5 Forces is offered as follows;.

Risk of New Entrants.

Risks of brand-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. However, the presence of extreme competition and the requirement of huge capital tends to demotivate new entrants to enter in the market.

Danger of Alternative.

Threat of Replacement is high for the Chinese Publishing Industry. The substitute products for the published files is the files provided in the virtual libraries on specific sites. The altering consumer preferences towards digital knowing increase the threat of replacement for the industry.

Competitive Competition.

Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.

Bargaining Power of Provider.

The major suppliers of the Part Two Audit Preparation Case Study Solution consist of the providers of the paper for publishing files. 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 purchaser 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 documents at competitive rates.

Competitors Analysis.

CMP runs in a highly competitive industry with the existence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Part Two Audit Preparation Case Study Solution consist of;.

• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).

Chemical Industry Press (CIP).

CIP acts as a risk 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 easily in the existing market situation.

Posts and telecommunication Press (PTP).

It was likewise founded in the same duration as Part Two Audit Preparation Case Study Help and CIP. It is also one of the prominent gamers in the publishing industry with an annual overall profits of RMB 550 million in 2010.

Alternatives

Alternative-1: Broaden towards New Markets

Pros

• Decreasing reliance over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Use of potential resources in growth.
• Risk of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio offers high value to consumers.

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 business to lose need of its products in the market.

Suggestions

As the choices are shifting towards digital publishing and the business need an immediate solution to avoid the declining industry growth. The company might likewise consider the growth program after the success of its digital publishing program.

Application

In order to present digital publishing in its item portfolio, the business ought to initially collects the data related to the consumer need, the prospective markets, the federal government guidelines and the information related to the rivals presented in the market. If the initial offering shows 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

Although, the growth of the publishing industry is decreasing considering that 2008, revealing a risk to the business's long term existence, but the circumstance can be managed by thinking about a development strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the danger of failure for entrance in the new markets.

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