Stratafin Inc Auditing Change 2 Case Study Solution and Analysis
Introduction
Stratafin Inc Auditing Change 2 Case Study Solution is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services consisting of; collecting info, processing info and interaction services. Significant service segments of the company consist of; books, regulars, consultancy and circulation. The business has a large item portfolio and its significant products consist of books, periodicals, online media, exhibits, research reports etc. Stratafin Inc Auditing Change 2 Case Study Analysis has become a specialized information service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Vital Issues
Although, Stratafin Inc Auditing Change 2 Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The improvement 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 abilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Stratafin Inc Auditing Change 2 Case Study Analysis has certain strengths that can be made use of to minimize the hazards, overcome the weakness and avail the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Stratafin Inc Auditing Change 2 Case Study Analysis 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 effective journey supply a competitive advantage to CMP.
• Vast item portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong financial position enables the business to consider several development opportunities without any fear of raising fund externally.
Weaknesses
In addition to the strengths, the company has specific weak points which might increase restrictions for the company in implementing its advancement program. The weak points of Stratafin Inc Auditing Change 2 Case Study Analysis are provided as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It should propose certain expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The growth of the publishing market is decreasing given that 2008, affecting Stratafin Inc Auditing Change 2 Case Study Analysis as well, however the development might be restored by availing certain chances presented in the market. The marketplace opportunities for CMP consist of;
• The business might also present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its huge funds.
Threats
The changing macro patterns in the market and increasing competitors in the publishing market has actually positioned certain dangers to Stratafin Inc Auditing Change 2 Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could cause declining market share of Stratafin Inc Auditing Change 2 Case Study Solution due to the customer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the risk for CMP to lose its competitive position in the market, as rivals can get a strong consumer base by using certain techniques like aggressive promotion, quality products, etc.
• Entrance of brand-new publishing companies in the market in addition to existence of high competition increases the risk of losing the client base.
Financial Analysis.
The company has a rather competitive financial efficiency. Due to lack of data, the financial ratios of CMP might not be computed. The general financial efficiency of the business might be evaluated by utilizing the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of Stratafin Inc Auditing Change 2 Case Study Help is growing and the company is rather efficient in bring in a a great deal of clients at a potential cost.
In addition to it, the second chart which reveals the yearly development in the Stratafin Inc Auditing Change 2 Case Study Analysis total assets, reveals that the company is quite efficient in including worth to its properties through its profits. The growth in possessions reveals that the total worth of the firm is likewise increasing with increasing the total earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis concerning the circulation of total profits of the business. Major part of the earnings of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business segments with a potential development to accomplish its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to discover the different external forces impacting the efficiency of the business and the recent trends in the external environment of the business. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial influence on the mindset of the people about the communist ideology of the government, therefore, the publishing sector is highly supervised and guided by the Publicity Department of the Communist Celebration of China. Therefore, it could be stated that the general political forces affecting Stratafin Inc Auditing Change 2 Case Study Solution organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Stratafin Inc Auditing Change 2 Case Study Analysis in specific includesthe prices of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine impact the demand for the publishing market. Along with it, the economic policies related to the import of books affect the total service at CPM. China's financial conditions are quite favorable for CMP with high GDP development and customer income level.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the altering customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology in addition to the increase of digital publishing might decrease the demand for the CMP items, if particular actions would not be taken soon.
Environmental.
Environmental forces affecting Stratafin Inc Auditing Change 2 Case Study Analysis consists of the issues of environmental neighborhoods over the use of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to 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 approved first by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's 5 Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to bring in new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Hazard of Substitution.
Hazard of Replacement is high for the Chinese Publishing Market. The alternative items for the published files is the files provided in the virtual libraries on certain sites. The altering customer choices towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The presence of large number of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Stratafin Inc Auditing Change 2 Case Study Solution include the providers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining 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 market saturation, the buyers needs high quality files at competitive rates.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. However, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Stratafin Inc Auditing Change 2 Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close rivals of CMP. Founded in the same period, CIP releases comparable kind of books. For a big period, CIP held the largest market share, and still ranks second and 3rd in different market segments, with a significant concentrate on educational publications. 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 marketplace share of Stratafin Inc Auditing Change 2 Case Study Solution quickly in the current market circumstance.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Stratafin Inc Auditing Change 2 Case Study Solution and CIP. It is likewise one of the popular players in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing 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 possible resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing current capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation segments to the brand-new one can lead the company to lose need of its items in the market.
Recommendations
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the declining industry development. For that reason, introduction of digital publishing could show to be an immediate solution with low quantity of threat for the business. The company might likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company ought to initially collects the data related to the customer demand, the potential markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering shows a success, the company ought to go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, showing a threat to the company's long term existence, however the circumstance can be controlled by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the brand-new markets.
