Lecture2-IndustryandStrategyanalysis外文文献.ppt

Lecture 2 Understanding the Business: Industry and Strategy Analysis The steps involved in Business Analysis Introduction Analysis must start with understanding the economic environment of the business. This necessitates analysis of Industry Position within industry Business strategies within the industry Learning Objectives At the conclusion of this topic you should understand: What are some of the potentially important macro economic factors to consider How to analyse the industries a firm operates in (industry analysis) How firms compete within an industry (competitive positioning) How firms develop competitive strategies to create value (business strategy) Searching for Value We are looking for value, and how the firm creates value A firm’s value is determined by its returns, and creating value requires a return greater than the cost of capital Whether the firm can create value or not is determined by its own strategic choices: Industry Positioning within industry Business strategy Understanding the Business “Top down” approach: Consider the general macro economic conditions Analyse each of the industries the firm is in Detailed analysis of the operations and strategy of the firm Macro economic factors What is the current state and future prospects of the global economy? What is the current state and future prospects of each domestic economy your company operates in? Some key economic statistics: Gross Domestic Product Interest rates Inflation Foreign exchange rates Oil prices / other key commodity prices Others? Data sources??????? Analyse each Industry Understand the sensitivity of each industry the firm is in to key macro economic factors Understand how each industry operates and the key performance metrics for the industry Understand the competitive structure of each industry Competitive Structure of each Industry When conducting FSA, the analyst must assess the profit potential of each of the industries the firm is competing in. Why? Because different