The Game Of Financial Ratios Case Study Solution and Analysis
Intro
The Game Of Financial Ratios Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized details company and a large detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey smoothly, being an effective publishing house, however, the changing macro market trends and forces bring specific difficulties to the publishing industry in general and The Game Of Financial Ratios Case Study Help in particular. These elements include;
• Entryway of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised several 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 capabilities of the company could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
The Game Of Financial Ratios Case Study Help has specific strengths that can be made use of to lower the threats, get rid of the weakness and avail the opportunities. Strengths of CMP are given as follows;
• The long term experience of The Game Of Financial Ratios Case Study Solution in the publishing industry i.e. 60 years permits the business to supply high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP helps it to diversify its threat and supply high worth to its clients.
• Strong financial position enables the business to consider several advancement opportunities without any fear of raising fund externally.
Weaknesses
Together with the strengths, the company has specific weak points which could increase constraints for the business in executing its advancement program. The weaknesses of The Game Of Financial Ratios Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It ought to propose certain growth strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting The Game Of Financial Ratios Case Study Help as well, but the growth might be revived by availing specific chances presented in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP might consider an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro patterns in the market and increasing competition in the publishing industry has posed specific threats to The Game Of Financial Ratios Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might result in declining market share of The Game Of Financial Ratios Case Study Solution due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using particular techniques like aggressive promotion, quality products, and so on
• Entryway of brand-new publishing companies in the industry along with existence of high competition increases the danger of losing the consumer base.
Financial Analysis.
The business has a rather competitive financial performance. Due to absence of data, the monetary ratios of CMP might not be determined. Nevertheless, the total monetary efficiency of the business could be analyzed by utilizing the charts given up the case Appendices. It might be analyzed from the Appendix III that the annual total profits of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual demand of the items of The Game Of Financial Ratios Case Study Analysis is growing and the business is rather efficient in attracting a a great deal of clients at a potential rate.
Together with it, the second chart which reveals the annual growth in the The Game Of Financial Ratios Case Study Help total possessions, reveals that the business is quite efficient in including worth to its assets through its incomes. The growth in properties shows that the total worth of the firm is also increasing with increasing the total profits. (Unknown, 2013).
Another financial analysis of the business utilizing the provided information might be the analysis regarding the distribution of total profits of the company. Huge 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 might move towards other organisation segments with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces affecting the performance of the company and the current trends in the external environment of the company. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of individuals about the communist ideology of the government, therefore, the publishing sector is highly monitored and directed by the Publicity Department of the Communist Party of China. For that reason, it could be said that the general political forces affecting The Game Of Financial Ratios Case Study Solution service are high. The federal government policies regarding the publishing sector are likewise increasing with the passage of time.
Economical.
Economic forces affecting the publishing sector in general and the The Game Of Financial Ratios Case Study Solution in specific includesthe prices 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. Along with it, the financial policies associated with the import of books affect the general organisation 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 consumer's preferences towards checking out informative products etc. China has the highest population worldwide with a high population development, showing the increasing variety of consumers of the The Game Of Financial Ratios Case Study Analysis. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the altering consumer choices.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing might reduce the demand for the CMP products, if certain actions would not be taken soon.
Environmental.
Ecological forces impacting The Game Of Financial Ratios Case Study Help includes the issues of environmental communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be non reusable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be utilized to analyze the attractiveness of the publishing market China. A short analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The possible growth in the industry tends to draw in new entrants to the publishing market. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to go into in the market.
Danger of Alternative.
Danger of Replacement is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the digital libraries on certain websites. The altering customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market 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 likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Provider.
The major providers of the The Game Of Financial Ratios Case Study Analysis include the suppliers of the paper for releasing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive market with the existence 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 rivals of The Game Of Financial Ratios Case Study Analysis consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the same duration, CIP releases similar kind of books. For a large time period, CIP held the largest market share, and still ranks 2nd and 3rd in numerous market segments, with a significant focus on instructional publications. CIP acts as a risk for CMP as it could wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and could wean the market share of The Game Of Financial Ratios Case Study Help easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is also among the prominent gamers in the publishing market with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering 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.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company require an immediate option to avoid the declining industry development. The business might likewise consider the expansion program after the success of its digital publishing program.
Implementation
In order to present digital publishing in its product portfolio, the company ought to initially gathers the information related to the consumer need, the potential markets, the government policies and the information related to the competitors provided in the market. If the preliminary offering proves a success, the company ought to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, revealing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about an advancement strategy in the future. The company could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the brand-new markets.
