The Audit Procedures Case Study Solution and Analysis
Intro
The Audit Procedures Case Study Help is the biggest publishing business with a greatest market share in the China's book retail market. CMP provides a variety of services consisting of; gathering information, processing information and interaction services. Major business sections of the company consist of; books, periodicals, consultancy and circulation. The company has a vast product portfolio and its major items consist of books, periodicals, online media, exhibits, research study reports etc. The Audit Procedures Case Study Solution has become a specialized info supplier and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Problems
Although, The Audit Procedures Case Study Analysis has spent its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring particular challenges to the publishing market in general and CMP in specific. These factors include;
• Entryway of the new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The change of the macro markets have raised several 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 company could be utilized to pursue the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Audit Procedures Case Study Help has certain strengths that can be utilized to minimize the hazards, conquer the weak point and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of The Audit Procedures Case Study Help in the publishing market i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey supply a competitive advantage to CMP.
• Vast product portfolioof CMP helps it to diversify its threat and provide high value to its clients.
• Strong financial position permits the business to consider numerous development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the business has particular weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of The Audit Procedures Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It ought to propose specific expansion plans to avoid its reliance over the Chinese markets to attain long term development.
Opportunities
Although, the growth of the publishing market is decreasing since 2008, affecting The Audit Procedures Case Study Help as well, however the growth might be revived by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise present 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 huge funds.
Threats
The altering macro trends in the market and increasing competition in the publishing industry has actually presented specific risks to The Audit Procedures Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might cause declining market share of The Audit Procedures Case Study Solution due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by utilizing specific methods like aggressive promo, quality items, etc.
• Entryway of brand-new publishing companies in the market in addition to existence of high competition increases the danger of losing the client base.
Monetary Analysis.
The business has a quite competitive monetary efficiency. Due to absence of data, the monetary ratios of CMP might not be determined. The general financial performance of the business might be evaluated by utilizing the graphs given in the case Appendices. It could be examined from the Appendix III that the yearly total profits of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the items of The Audit Procedures Case Study Help is growing and the business is quite effective in bring in a large number of consumers at a prospective rate.
Together with it, the second chart which reveals the yearly development in the The Audit Procedures Case Study Help overall assets, shows that the company is rather efficient in adding worth to its assets through its profits. The growth in properties reveals that the overall value of the firm is likewise increasing with increasing the total incomes. (Unidentified, 2013).
Another monetary analysis of the business using the provided information might be the analysis regarding the circulation of overall profits of the business. Huge part of the earnings of CMP originates from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The company might move towards other business sectors with a prospective development to accomplish its future advancement objective.
PESTEL Analysis
PESTEL analysis might be performed to discover the various external forces impacting the performance of the business and the recent patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the frame of mind of individuals about the communist ideology of the government, therefore, the publishing sector is highly supervised and assisted by the Publicity Department of the Communist Celebration of China. It might be stated that the total political forces impacting CMP company are high. The federal government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in general and the The Audit Procedures Case Study Help in specific includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate effect the demand for the publishing market. Together with it, the economic policies related to the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces consist of the population development, the customer's choices towards reading helpful materials etc. China has the greatest population on the planet with a high population development, revealing the increasing number of consumers of the The Audit Procedures Case Study Solution. The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing consumer choices.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques etc. Enhancement of science and innovation in addition to the increase of digital publishing might decrease the need for the CMP products, if certain actions would not be taken quickly.
Environmental.
Ecological forces affecting The Audit Procedures Case Study Help consists of the concerns of ecological communities over the usage of paper in publishing books. The paper used 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 guidelines for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be used to evaluate the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Dangers of brand-new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the market tends to bring in brand-new entrants to the publishing industry. Nevertheless, the presence of intense competition and the requirement of big capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the published documents is the documents provided in the virtual libraries on certain sites. The changing consumer choices towards digital knowing increase the threat of substitution for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the The Audit Procedures Case Study Solution include the providers 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 Purchaser.
Haggling 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 costs.
Rivals Analysis.
CMP operates in an extremely competitive market with the presence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of The Audit Procedures Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the exact 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 gamers in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering reliance over the Chinese markets.
• Increasing number of Consumers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio provides high worth to clients.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its products in the market.
Recommendations
As the choices are shifting towards digital publishing and the business require an immediate solution to avoid the decreasing market growth. The business could likewise think about the growth program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company ought to first gathers the information related to the customer need, the prospective markets, the government policies and the data related to the competitors presented in the market. If the preliminary offering shows a success, the company must go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
The growth of the publishing industry is decreasing considering that 2008, showing a danger to the company's long term existence, however the situation can be managed by considering an advancement strategy in the future. The company could consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the brand-new markets.
