Company analysis is a typical assignment for Management students. This is the best way to utilize your academic knowledge and calculative skills in a practical project. MBA essay writing expert says that this helps students to build their business skills, gain knowledge about the industry, and stay updated with the current market trends. In other words, business analysis is a technique to identify and ascertain a company’s value and progress, which is based on its financial statement and environment. The objective is to comprehend a firm’s health, its prospect, strategic insights, and activities involved in marketing.
Let us understand the primary part of this article.
Steps to conduct a Company Analysis
1. Discern the economic characteristics
Understanding the purpose of the analysis, the first stage is to gather information about the company and the industry. Here, you have to find the present status, location, and quantity of the manufacturing installations.
2. Details about the product
In the next step, examine the nature of the product or service that the firm produces or serves, whether it is FMCG, durable goods, or a service sector. If you are told to write my college paper, say on PepsiCo, mention the dynamics of the demand and supply, its distinguishable qualities, and the reach of the brand recognition.
3. Derive the risks and issues
No business can move on without any pitfalls. This is the place where you have to study the annual reports, mark the previous issues involved, and the measures the company took to overcome those hurdles. As an investor, you have to find out the risk factors that might occur in the near future, and also come up with probable solutions.
4. Financial statement is the bigger picture
These convey the performance of the firm. You have to review the balance sheets, income statements, and cash flow statements. You will get an idea about the profitability matrix, which will be help gain prospective insight.
Components of writing a Company Analysis
1. Environmental scan
Introspect the micro and macro, external and internal environment which impacts the longevity of the business. Read the financial statements of at least the previous 5 years. It allows understanding the operational and product development strategies.
2. Competitors analysis
One thing leads to other. Performing the macro-environmental scan will help you enlist your competitors, and compare and contrast each other.
3. Market size
Are you swimming in a small pond or a big ocean? The aim is to identify how the firm is performing with the rest of the industry. Get an overview of the number of potential buyers, product reach, and revenue generated.
4. Industry analysis
Usually, there are three types of industry analysis –
Porter’s 5 forces
This helps to analyze the competitiveness in the market. The framework involves the bargaining power of buyers and suppliers, threats of substitutes and new entrants, and rivalry among the competitors.
Determining the strength and weaknesses of the company is an internal factor. The performance and competition in the market are the external factors, which are precisely termed opportunities and threats.
It has 4 parameters – cash cow, star, dog, and question mark. https://penmypaper.com/ can explain it to you with fine examples.
Company analysis is a systematic tool, more important for fresh startups and small-scale businesses. Entrepreneurs of these segments do not always carry loads of investment and may even fail to survive unfortunate risks.
For college students, it is a good task to practice writing in their free time. We recommend picking a small or local company and then preparing the report. The reason is the unavailability of complete data on the internet, journals, or the books. Therefore, you can study the business by personally visiting the location. This will enrich your knowledge and nourish your various skill set.