Tax Fraud And Forensic Accounting Case Study Solution and Analysis
Tax Fraud And Forensic Accounting Case Study Help is the biggest publishing company with a highest market share in the China's book retail market. CMP has become a specialized details supplier and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Although, Tax Fraud And Forensic Accounting Case Study Analysis has actually invested its 60 years journey efficiently, being an effective publishing house, however, the altering macro market patterns and forces bring specific obstacles to the publishing industry in basic and CMP in specific. These aspects include;
• Entrance of the new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing techniques
• Enhancement of science and technology.
The improvement 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 valuable experience, technical resources and the capabilities of the company could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Tax Fraud And Forensic Accounting Case Study Help has certain strengths that can be made use of to minimize the threats, overcome the weakness and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Tax Fraud And Forensic Accounting Case Study Help in the publishing market i.e. 60 years enables the business to provide high quality products at a lower cost using its previous experiences.
• The technical resources and abilities generated by its effective journey supply a competitive benefit to CMP.
• Vast item portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong financial position allows the company to consider several advancement opportunities without any fear of raising fund externally.
Together with the strengths, the company has specific weaknesses which could increase constraints for the company in executing its advancement program. The weak points of Tax Fraud And Forensic Accounting Case Study Solution are provided as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not suitable 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 dependence over the Chinese markets to attain long term growth.
Although, the development of the publishing market is declining because 2008, affecting Tax Fraud And Forensic Accounting Case Study Help also, but the development could be revived by availing certain opportunities provided in the market. The market chances for CMP consist of;
• The business could also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to decrease its reliance over Chinese markets by using its huge financial resources.
The altering macro patterns in the market and increasing competition in the publishing industry has actually posed certain threats to Tax Fraud And Forensic Accounting Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of Tax Fraud And Forensic Accounting Case Study Solution due to the consumer shift towards virtual libraries.
• The presence of large number of competitors in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promo, quality items, etc.
• Entrance of new publishing firms in the market along with existence of high competition increases the risk of losing the consumer base.
Due to lack of information, the financial ratios of CMP could not be determined. It could be analyzed from the Appendix III that the yearly overall incomes of Tax Fraud And Forensic Accounting Case Study Analysis during the period 2000-2012 are growing at a high development rate, showing that the yearly demand of the items of CMP is growing and the business is rather effective in drawing in a big number of customers at a potential price.
In addition to it, the 2nd chart which reveals the yearly growth in the Tax Fraud And Forensic Accounting Case Study Solution overall possessions, reveals that the business is rather effective in including value to its possessions through its profits. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company utilizing the given data might be the analysis concerning the circulation of total revenues of the company. Major part of the revenues of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a potential growth to attain its future advancement goal.
PESTEL analysis might be performed to find out the various external forces affecting the efficiency of the business and the recent patterns in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Publicity Department of the Communist Celebration of China. For that reason, it might be stated that the total political forces impacting Tax Fraud And Forensic Accounting Case Study Solution company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Economic forces affecting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the total GDP development of the country. All these forces integrate impact the demand for the publishing market.
Social and Demographical.
The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP ought to focus on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Enhancement of science and technology along with the increase of digital publishing might minimize the demand for the CMP items, if specific actions would not be taken soon.
Environmental forces affecting Tax Fraud And Forensic Accounting Case Study Analysis includes the issues of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing must not be hazardous for the environment.
Legal guidelines for the publishing sector at whole are high. The legal regulations concerning the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved first by the Government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to analyze the attractiveness of the publishing industry China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to attract brand-new entrants to the publishing industry. However, the presence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the marketplace.
Risk of Substitution.
Danger of Alternative is high for the Chinese Publishing Industry. The replacement items for the released files is the documents presented in the virtual libraries on specific websites. The changing customer preferences towards digital knowing increase the danger of replacement 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 competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Provider.
The major suppliers of the Tax Fraud And Forensic Accounting Case Study Solution include the providers of the paper for publishing documents. 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 Purchaser.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the purchasers requires high quality files at competitive costs.
CMP runs in an extremely competitive industry with the presence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Tax Fraud And Forensic Accounting Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis one of the close competitors of CMP. Established in the very same period, CIP releases similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and second in numerous market segments, with a significant focus on instructional publications. CIP functions as a risk 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 Tax Fraud And Forensic Accounting Case Study Analysis quickly in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the very same period as CMP and CIP. It ranks 6th in the state-owned publishers in terms of business scale. It is likewise among the popular players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth chances.
• Avoiding the impact of market saturation in the Chinese publishing industry.
• Use of potential resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high worth to clients.
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sectors to the brand-new one can lead the company to lose demand of its products in the market.
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is recommended to CMP to accomplish its future development. As the preferences are shifting towards digital publishing and the company need an immediate option to avoid the declining industry development. Intro of digital publishing could show to be an instant solution with low quantity of danger for the business. However, the company might also consider the expansion program after the success of its digital publishing program.
In order to introduce digital publishing in its item portfolio, the business should initially gathers the information related to the customer need, the possible markets, the government guidelines and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company should go for the other markets. In this way the company would be able to implement its digital publishing program.
Although, the growth of the publishing market is decreasing considering that 2008, revealing a danger to the company's long term presence, however the scenario can be managed by thinking about a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to prevent the threat of failure for entrance in the brand-new markets.