The Audit Of Ssm 2 Case Study Solution and Analysis
Introduction
The Audit Of Ssm 2 Case Study Solution is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually ended up being a specialized details service provider and a big comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Problems
Although, The Audit Of Ssm 2 Case Study Help has spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the changing macro market trends and forces bring certain difficulties to the publishing market in basic and CMP in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement 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 important experience, technical resources and the abilities of the company could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Audit Of Ssm 2 Case Study Analysis has specific strengths that can be utilized to minimize the dangers, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of The Audit Of Ssm 2 Case Study Analysis in the publishing market i.e. 60 years enables the company to offer high quality items at a lower cost utilizing its prior experiences.
• The technical resources and capabilities created by its successful journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its danger and supply high value to its consumers.
• Strong financial position allows the business to consider a number of advancement opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which could increase restraints for the business in implementing its development program. The weak points of The Audit Of Ssm 2 Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the business still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It needs to propose certain expansion plans to prevent its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing industry is declining considering that 2008, affecting The Audit Of Ssm 2 Case Study Analysis as well, however the development could be revived by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company might also introduce Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its vast funds.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has positioned particular dangers to The Audit Of Ssm 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could lead to declining market share of The Audit Of Ssm 2 Case Study Solution due to the customer 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 promotion, quality products, and so on
• Entryway of new publishing firms in the industry along with existence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
Due to lack of information, the monetary ratios of CMP might not be calculated. It could be analyzed from the Appendix III that the annual total incomes of The Audit Of Ssm 2 Case Study Help throughout the period 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of clients at a possible rate.
Together with it, the 2nd graph which shows the yearly development in the The Audit Of Ssm 2 Case Study Analysis total properties, reveals that the business is quite effective in including worth to its possessions through its profits. The development in assets reveals that the overall worth of the company is also increasing with increasing the overall profits. (Unidentified, 2013).
Another financial analysis of the business using the offered information could be the analysis relating to the distribution of total revenues of the company. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other service sections with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the company and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely monitored and guided by the Publicity Department of the Communist Party of China. It could be stated that the total political forces impacting CMP company are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the general GDP development of the country. All these forces combine impact the need for the publishing market.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to focus on digital publishing to satisfy the changing customer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading methods etc. Improvement of science and technology together with the increase of digital publishing could minimize the need for the CMP products, if particular actions would not be taken quickly.
Environmental.
Environmental forces impacting The Audit Of Ssm 2 Case Study Help consists of the issues of environmental 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 must not be damaging for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to evaluate the attractiveness of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Threat of New Entrants.
Risks of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract new entrants to the publishing market. Nevertheless, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to go into in the market.
Danger of Substitution.
Risk of Alternative is high for the Chinese Publishing Market. The alternative products for the published files is the files presented in the virtual libraries on specific sites. The altering customer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Competition.
Competitive rivalry 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 entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The significant suppliers of the The Audit Of Ssm 2 Case Study Solution include the providers of the paper for releasing files. 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.
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 marketplace saturation, the purchasers requires high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of The Audit Of Ssm 2 Case Study Analysis include;.
• 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 publishes similar kind of books. For a big period, CIP held the biggest market share, and still ranks third and 2nd in numerous market sectors, with a major concentrate on academic publications. CIP serves as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the market share of The Audit Of Ssm 2 Case Study Analysis quickly in the current market situation.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is also one of the prominent gamers in the publishing market with an annual overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers 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 sections to the new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business need an instant service to prevent the declining market development. The business could likewise think about the expansion program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the business needs to initially collects the information related to the customer demand, the prospective markets, the government regulations and the data related to the rivals presented in the market. If the initial offering proves a success, the company ought to go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a danger to the business's long term presence, but the scenario can be controlled by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to implement its development program at instant basis and to prevent the risk of failure for entrance in the new markets.
