Companies Financial Statement Analysis

Companies Financial Statement Analysis

Required :

(Analyze the companies based on the following criteria and questions; the questions are not exhaustive as you may add any questions/explanation where appropriate)

1. Identify the economic characteristics of the industry in which the firms participate and assess their level of competitiveness.

a. Economic attributes : demand, supply, manufacturing & marketing

b. Rivalry among Existing Firms (Direct rivalry, diffuse rivalry, or concentrated rivalry (such as a monopoly, a duopoly, or an oligopoly)?

c. Threat of New Entrants.

· How easily can new firms enter a market?

· Are there entry barriers such as large capital investment, technological expertise, patents, or regulations that inhibit new entrants?

· Do the existing rivals have distinct competitive advantages (such as brand names) that will make it difficult for other firms to enter and compete successfully?

· Do the firms in the industry will likely generate higher profits than if new entrants can enter the market easily and compete away the excess profits?

d. Threat of Substitutes.

· How easily can customers switch to substitute products or services? How likely are they to switch?

 

 

2. Identify the corporate strategy that the firms pursue to compete in their industry.

a. Nature of Product or Service.

b. Degree of Geographical Diversification.

 

 

 

· Access the companies’ websites; yahoo finance website; hoover.com and/or Standard & Poor’s Industry Surveys to obtain the needed information.

· Read the Business section of their Form 10-K reports (http://www.sec.gov)

· Write all references at the end of the report

 

 

 

ACCT415 Sem161Assignment