Pure Grain Meals Audit Case Study Solution and Analysis
Pure Grain Meals Audit Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP offers a variety of services including; gathering info, processing information and interaction services. Significant organisation segments of the company include; books, regulars, consultancy and circulation. The company has a huge product portfolio and its major products consist of books, regulars, online media, exhibits, research reports etc. Pure Grain Meals Audit Case Study Solution has ended up being a specialized information provider and a big comprehensive Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
CMP has actually invested its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in general and Pure Grain Meals Audit Case Study Help in specific. These elements include;
• Entrance of the brand-new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and innovation.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this circumstance? 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 business sustain its long term competitive position in future?
Pure Grain Meals Audit Case Study Solution has specific strengths that can be used to lower the risks, get rid of the weak point and obtain the chances. Strengths of CMP are given as follows;
• The long term experience of Pure Grain Meals Audit Case Study Help in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey offer a competitive advantage to CMP.
• Vast product portfolioof CMP assists it to diversify its risk and offer high value to its consumers.
• Strong financial position allows the company to consider numerous development chances with no fear of raising fund externally.
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its development program. The weaknesses of Pure Grain Meals Audit Case Study Help are provided as follows;
• Despite of being a science and technology publishing firm, the business still has standard methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose specific expansion strategies to prevent its reliance over the Chinese markets to achieve long term growth.
Although, the growth of the publishing industry is declining since 2008, impacting Pure Grain Meals Audit Case Study Solution as well, but the development might be restored by availing particular opportunities provided in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to lower its dependence over Chinese markets by using its large funds.
The changing macro patterns in the market and increasing competition in the publishing market has positioned particular hazards to Pure Grain Meals Audit Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in declining market share of Pure Grain Meals Audit Case Study Analysis due to the customer shift towards virtual libraries.
• The existence 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 gain a strong consumer base by using certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the industry in addition to presence of high competition increases the danger of losing the consumer base.
The company has a rather competitive monetary performance. Due to lack of information, the monetary ratios of CMP could not be calculated. Nevertheless, the total monetary efficiency of the company might be analyzed by using the charts given up the case Appendices. It could be evaluated from the Appendix III that the annual overall profits of CMP throughout the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Pure Grain Meals Audit Case Study Solution is growing and the company is rather efficient in attracting a large number of customers at a potential cost.
In addition to it, the 2nd graph which reveals the yearly development in the Pure Grain Meals Audit Case Study Solution overall assets, reveals that the company is quite efficient in including worth to its possessions through its revenues. The growth in assets shows that the total worth of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the company using the offered information could be the analysis regarding the distribution of overall incomes of the business. Huge part of the revenues of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sectors with a potential growth to achieve its future advancement goal.
PESTEL analysis could be carried out to learn the numerous external forces impacting the performance of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a significant influence on the state of mind of the people 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 Party of China. It could be said that the general political forces impacting CMP organisation are high. The federal government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the Pure Grain Meals Audit Case Study Analysis in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate effect the need for the publishing market. Along with it, the economic policies connected to the import of books impact the general service at CPM. However, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing customer choices.
Technological forces affecting the CMP include the technological advancement in the reading strategies etc. Enhancement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Pure Grain Meals Audit Case Study Solution includes the issues of ecological communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink utilized while publishing should not be harmful for the environment.
Legal regulations for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct involvement of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Danger of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The potential development in the market tends to draw in new entrants to the publishing market. The existence of extreme competition and the requirement of huge capital tends to demotivate brand-new entrants to enter in the market.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The alternative items for the published files is the files presented in the digital libraries on certain websites. The altering customer preferences towards digital knowing increase the danger of alternative for the market.
Competitive rivalry in the publishing market is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The significant providers of the Pure Grain Meals Audit Case Study Solution consist of the providers of the paper for publishing documents. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the general 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 marketplace saturation, the purchasers requires high quality files at competitive costs.
CMP runs in a highly 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 Pure Grain Meals Audit Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard 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 quickly in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is also among the popular gamers in the publishing industry with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering reliance over the Chinese markets.
• Increasing number of Clients
• Development chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio provides high value to customers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sectors to the brand-new one can lead the company to lose demand of its items in the market.
As the preferences are shifting towards digital publishing and the company require an instant option to avoid the declining industry growth. The business might likewise consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the company needs to first collects the information connected to the consumer need, the possible markets, the government guidelines and the information connected to the competitors presented in the market. After that, the company must choose one prospective sector for its preliminary offering. It should collect research study that how it might differentiate its digital publishing from the existing competitors' products. The steps above the company ought to go for the initial offering. If the preliminary offering proves a success, the company should opt for the other markets. In this way the company would be able to implement its digital publishing program.
The growth of the publishing industry is declining because 2008, revealing a risk to the business's long term presence, but the circumstance can be managed by thinking about a development plan in the future. The company might think about introducing digital publishingin its existing market to implement its development program at instant basis and to avoid the risk of failure for entrance in the new markets.