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Pre Audit Memo Case Analysis

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Pre Audit Memo Case Study Solution and Analysis


Introduction

Pre Audit Memo Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP provides a variety of services including; gathering information, processing info and communication services. Significant service segments of the company include; books, periodicals, consultancy and distribution. The company has a huge product portfolio and its significant items consist of books, periodicals, online media, exhibitions, research reports etc. Pre Audit Memo Case Study Analysis has actually become a specialized information company and a large detailed Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.

Vital Issues

Although, Pre Audit Memo Case Study Analysis has invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in specific. These aspects consist of;

• Entryway of the new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and innovation.
Executive Summary
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 situation? Do the long important experience, technical resources and the capabilities of the business could be utilized to pursue the future development unceasingly? How could the company sustain its long term competitive position in future?

Situational Analysis
Internal Analysis
SWOT Analysis
Strengths


Pre Audit Memo Case Study Help has certain strengths that can be used to decrease the risks, conquer the weakness and obtain the chances. Strengths of CMP are given as follows;

• The long term experience of Pre Audit Memo Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its effective journey supply a competitive advantage to CMP.
• Large product portfolioof CMP helps it to diversify its risk and supply high value to its customers.
• Strong monetary position allows the business to consider several advancement chances with no fear of raising fund externally.

Weak points

Together with the strengths, the business has specific weaknesses which could increase restraints for the business in executing its advancement program. The weak points of Pre Audit Memo Case Study Help are provided as follows;

• Despite of being a science and technology publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Porter's 5 Forces Analysis
Opportunities

Although, the growth of the publishing market is declining given that 2008, impacting Pre Audit Memo Case Study Help too, however the development might be revived by availing certain chances provided in the market. The marketplace chances for CMP include;

• The company could likewise introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast funds.

Risks

The altering macro trends in the market and increasing competition in the publishing industry has postured specific hazards to Pre Audit Memo Case Study Help consisting of;( Gurel, 2017).

• Intro of digital publishing i.e. digital libraries might lead to declining market share of Pre Audit Memo Case Study Analysis due to the consumer shift towards digital libraries.
• The presence of large number of competitors 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 utilizing certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market together with existence of high competition increases the threat of losing the customer base.

Monetary Analysis.
Swot Analysis
The business has a rather competitive financial efficiency. Due to absence of data, the financial ratios of CMP might not be calculated. The total monetary efficiency of the company could be evaluated by utilizing the graphs provided in the case Appendices. It could be examined from the Appendix III that the yearly total revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the products of Pre Audit Memo Case Study Analysis is growing and the business is rather efficient in drawing in a large number of consumers at a prospective price.

In addition to it, the second chart which shows the yearly growth in the Pre Audit Memo Case Study Solution total assets, reveals that the company is quite effective in adding worth to its possessions through its earnings. The growth in possessions reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).

Another financial analysis of the company using the given information might be the analysis relating to the circulation of overall profits of the company. Major part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company might move towards other company segments with a possible growth to achieve its future development objective.

PESTEL Analysis

PESTEL analysis could be performed to find out the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).

Political.

As the publishing sector might have a considerable impact on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and directed by the Publicity Department of the Communist Celebration of China. It could be said that the total political forces affecting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.

Cost-effective.

Economic forces impacting the publishing sector in basic and the Pre Audit Memo Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the total GDP growth of the nation. All these forces combine effect the demand for the publishing market. In addition to it, the economic policies associated with the import of books impact the overall organisation at CPM. China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.

Social and Demographical.

Social and demographical forces include the population development, the customer's preferences towards reading informative materials and so on. China has the greatest population on the planet with a high population development, revealing the increasing variety of customers of the Pre Audit Memo Case Study Help. The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the altering consumer preferences.

Technological.

Technological forces affecting the CMP include the technological advancement in the reading strategies and so on. Improvement of science and innovation in addition to the increase of digital publishing might minimize the need for the CMP products, if certain actions would not be taken quickly.

Environmental.
Vrio Analysis
Environmental forces impacting Pre Audit Memo Case Study Help consists of the concerns of environmental neighborhoods over the use 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 must not be damaging for the environment.

Legal.

Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market. The regulation prohibits direct participation of foreign entities and individuals in the publishing sector.

Market Analysis (Porter's 5 Forces Design).

Porter's 5 Forces Model could be utilized to evaluate the appearance of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.

Threat of New Entrants.

Threats of new entrants in the Chinese Publishing Market is moderate. The prospective development in the industry tends to bring in new entrants to the publishing industry. The presence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.

Danger of Alternative.

Hazard of Replacement is high for the Chinese Publishing Industry. The alternative products for the published files is the files presented in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the hazard of alternative for the industry.

Competitive Rivalry.

Competitive competition in the publishing market is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. Together with it, new entrants are also participating in the marketplace increasing the competitors for CMP.

Bargaining Power of Supplier.

The major providers of the Pre Audit Memo Case Study Solution consist of the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.

Bargaining Power of Purchaser.

Negotiating power of purchaser in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.

Rivals Analysis.

CMP runs in an extremely competitive industry with the existence of large number of rivals. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Pre Audit Memo Case Study Solution consist of;.

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

Chemical Industry Press (CIP).

CIP acts as a hazard 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 circumstance.

Posts and telecommunication Press (PTP).

Another close rival of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is likewise one of the popular gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.

Alternatives

Alternative-1: Expand towards New Markets

Pros

• Reducing dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing market.

Cons
Recommendations
• Usage of prospective resources in growth.
• Danger of failure in brand-new markets.
• Time consuming.

Alernative-2: Introduce Digital Publishing

Pros

• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing current abilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to consumers.

Cons

• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business segments to the new one can lead the business to lose demand of its products in the market.

Suggestions

As the preferences are shifting towards digital publishing and the business require an immediate solution to prevent the decreasing market growth. The business might also consider the growth program after the success of its digital publishing program.

Implementation

In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the consumer need, the potential markets, the federal government policies and the data related to the competitors presented in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.

Conclusion

Although, the growth of the publishing market is declining considering that 2008, revealing a risk to the company's long term presence, but the circumstance can be controlled by thinking about a development strategy in the future. The company might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to prevent the risk of failure for entryway in the brand-new markets.

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