Quĩ đầu tư - Chapter 9: Introduction to industry and company analysis

Chapter 9 Introduction to Industry and Company AnalysisPresenterVenueDateUses of Industry AnalysisUnderstanding a company’s business and business environmentIdentifying active equity investment opportunitiesPortfolio performance attributionApproaches to Identifying Similar CompaniesIndustry ClassificationProducts and/or Services SuppliedBusiness-Cycle SensitivitiesStatistical SimilaritiesCyclical and Noncyclical CompaniesProfits strongly correlated with economic activityExpensive, nonessential productsHigh operating leverageCyclicalCompanyLimitations of Industry and Company DescriptorsGrowth CompaniesCyclical IndustriesDefensive IndustriesGrowth IndustriesCommercial Industry Classification SystemsGlobal Industry Classification Standard (GICS)Russell Global Sectors (RGS)Industry Classification Benchmark (ICB)Representative Industry SectorsBasic Materials and ProcessingConsumer DiscretionaryEnergyFinancial ServicesIndustrial/Producer DurablesTechnologyTelecommunicationsUtilitiesGovernmental Industry Classification SystemsInternational Standard Industrial Classification of All Economic Activities (ISIC)Statistical Classification of Economic Activities in the European Community (NACE)Australian and New Zealand Standard Industrial Classification (ANZSIC) North American Industry Classification System (NAICS) Constructing a Peer GroupExamine commercial classification systemsReview company’s annual reportReview competitors’ annual reportsReview industry trade publicationsCompare business activitiesEXHIBIT 9-2 Framework for Industry AnalysisStrategic Analysis: Porter’s “Five Forces” FrameworkIntensity of RivalryBargaining Power of CustomersThreat of New EntrantsThreat of Substitute ProductsBargaining Power of SuppliersFirst focus for analysisEvaluating the Threat of New Entrants and the Level of CompetitionWhat are the barriers to entry?How concentrated is the industry?What are capacity levels?How stable are market shares?Where is the industry in its life cycle?How important is price to the customer’s purchase decision?Barriers to EntryHigh Barriers to EntryPotential for Greater Pricing PowerSustainable Economic ProfitsIndustry ConcentrationABC CompanyXYZ CompanyMNO CompanyWhat percentage of the market does each of the largest players have?Industry CapacityTight or Limited CapacityDemand Exceeds SupplyGreater Pricing PowerMarket Share StabilityUnstable Market ShareLimited Pricing PowerIndustry Life CycleSource: Based on Figure 2.4 in Hill andSource: Based on Figure 2.4 in Hill and Jones (2008).Source: Based on Figure 2.4 in Hill and Jones (2008).Limitations of Industry Life-Cycle AnalysisTechnological ChangesRegulatory ChangesSocial ChangesDemographic ChangesPrice CompetitionPrice strongly affects customer purchase decisionsCompetition within the industryMacroeconomic Influences on Industry Growth, Profitability, and RiskIndustry Growth, Profitability, and RiskEconomic GrowthInterest RatesAvailability of CreditInflationOther Influences on Industry Growth, Profitability, and RiskExamples of Technological InfluencesInvention of the microchipDigital imagingExamples of Demographic InfluencesBaby Boomer generationAging populationsExamples of Governmental InfluencesTax policies and government spendingRegulationExamples of Social InfluencesChanges in tobacco consumptionWomen in the workforceIndustry Analysis for Branded PharmaceuticalsIndustry Analysis for Oil ServicesIndustry Analysis for Confections/CandyPorter: Competitive StrategyCost LeadershipDifferentiationCost FocusDifferentiation FocusScopeNarrow Broad Source of Competitive Advantage Cost DifferentiationCompany AnalysisProvide a company profileExplain relevant industry characteristicsAnalyze demandAnalyze supply and input costsExplain the pricing environmentPresent and interpret relevant financial ratiosDecomposition of ROENet Profit MarginAsset TurnoverFinancial LeverageROESpreadsheet ModelingExpectedOptimisticPessimisticSummaryUses of industry analysisIndustry classification systemsEstablishing a peer groupStrategic analysis: Porter’s five forcesIndustry and product life cyclesDemographic, governmental, social, and technological influencesCompany analysisCost and differentiation strategiesSpreadsheet modeling