Stan Ross Department Of Accountancy Case Study Solution and Analysis
Intro
Stan Ross Department Of Accountancy Case Study Analysis is the largest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized information supplier and a big extensive Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Crucial Issues
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing industry in general and Stan Ross Department Of Accountancy Case Study Analysis in particular. These aspects consist of;
• Entryway of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised a number of concerns 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
Stan Ross Department Of Accountancy Case Study Solution has certain strengths that can be utilized to decrease the dangers, conquer the weak point and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Stan Ross Department Of Accountancy Case Study Analysis in the publishing market i.e. 60 years allows the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and provide high value to its consumers.
• Strong financial position enables the company to consider several development opportunities without any fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase restrictions for the business in implementing its advancement program. The weak points of Stan Ross Department Of Accountancy Case Study Solution are offered as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose certain expansion strategies to prevent its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the growth of the publishing industry is decreasing since 2008, affecting Stan Ross Department Of Accountancy Case Study Solution too, however the growth could be restored by availing certain chances presented in the market. The market chances for CMP include;
• The business could also introduce Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Threats
The changing macro patterns in the market and increasing competition in the publishing market has actually postured specific dangers to Stan Ross Department Of Accountancy Case Study Solution including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to decreasing market share of Stan Ross Department Of Accountancy Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing industry increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain techniques like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the industry in addition to presence of high competitors increases the danger of losing the client base.
Monetary Analysis.
Due to lack of data, the monetary ratios of CMP might not be determined. It could be analyzed from the Appendix III that the yearly total earnings of Stan Ross Department Of Accountancy Case Study Help during the duration 2000-2012 are growing at a high growth rate, showing that the yearly demand of the items of CMP is growing and the business is quite efficient in bring in a big number of consumers at a prospective rate.
Along with it, the 2nd chart which shows the annual development in the Stan Ross Department Of Accountancy Case Study Analysis total possessions, shows that the business is rather efficient in adding value to its properties through its incomes. The growth in properties shows that the total worth of the company is likewise increasing with increasing the total profits. (Unidentified, 2013).
Another financial analysis of the business utilizing the provided information could be the analysis concerning the circulation of total earnings of the company. Huge part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company might move towards other service segments with a possible growth to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be conducted to learn the various external forces impacting the performance of the company and the current trends in the external environment of the business. A short PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the frame of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Party of China. For that reason, it could be said that the total political forces impacting Stan Ross Department Of Accountancy Case Study Solution business are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in basic and the CMP in specific includesthe costs of paper, the income level of customers, the inflation rate, and the total GDP growth of the nation. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and innovation along with the increase of digital publishing might minimize the need for the CMP items, if certain actions would not be taken quickly.
Environmental.
Ecological forces impacting Stan Ross Department Of Accountancy Case Study Help includes the issues of ecological communities 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 should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to draw in new entrants to the publishing industry. The existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Danger of Substitution.
Risk of Substitution is high for the Chinese Publishing Industry. The replacement items for the published files is the files provided in the virtual libraries on certain sites. The changing customer choices towards digital learning increase the danger of replacement for the industry.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The major suppliers of the Stan Ross Department Of Accountancy Case Study Help include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers requires high quality documents at competitive costs.
Rivals Analysis.
CMP operates in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Stan Ross Department Of Accountancy Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big time period, CIP held the largest market share, and still ranks second and 3rd in different market sectors, with a major focus on academic publications. CIP functions 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 Stan Ross Department Of Accountancy Case Study Help easily in the present market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise among the prominent gamers in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Use of prospective resources in expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to present utilizing current capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core business segments to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an instant option to prevent the declining industry development. The company could likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business must first gathers the data related to the consumer demand, the prospective markets, the federal government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the business must go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The growth of the publishing market is decreasing since 2008, showing a threat to the business's long term presence, but the situation can be controlled by thinking about a development plan in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to avoid the danger of failure for entryway in the new markets.
