company analysis essay writer

Company Analysis Essay Writer

company analysis essay writer
Subject: Business
Topic: company analysis

Paper details:

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Me and my colleague are working on the analysis of the corporation under the name of: Canadian Natural resources limited. My part to work on structural or five forces analysis of the industry and five forces summary and small ( 3, 4 sentences) summary of industry analysis. ALSO plz see the power point i am going to send it if you scroll down you see my part the one you are going to do the assignment. ignore the first parts just focus on the part we are working on. Structural or five forces analysis of the industry and five forces summary. try to put graphs and do the references under each graph Also use this website: www.cnrl.com plz do not forget to use the slide i will provide because the profeessor need to see the hint and the procedure he mentioned in the slides. as i said scroll down at the part that mentiobglns the part we are gonna work on.

Structural or Five Forces Analysis of the Industry

 

The analysis MUST be completed with a numerical ranking of 1-10 for each force, including empirical data, analysis and logic provided to justify the ranking.

  • 1 = very low intensity of the competitive force
  • 10 = maximum intensity of the competitive force

Note: A lower number = less intense competitive force = higher profitability (all things being equal).

a) Competitiveness of Industry (Rivalry) – use Industry average aggregates

In this section, you MUST:

 

Concentration Ratio? i.e. top 4 firms account for what percentage of industry revenues

Industry annual growth rate vs GDP growth rate? – faster or slower or same?

Industry average ROIC?

Fixed costs as percentage of industry assets? See Bloomberg

Commodity industry with no differentiation?

Capacity added in large chunks or scaleable incrementally

Subject to foreign competition or protected by government laws or regulation? eg foreign firms can NOT buy Canadian airlines or telecoms

 

Note: You are NOT analyzing competitors – you are analyzing STRUCTURAL conditions of the industry to determine INDUSTRY attractiveness ie industry aggregates

 

Important: You must address the questions from the text and the course slides under each of the 5 Forces

  1. b) Threat of Entry to Industry

In this section, you MUST:

  • identify and analyze any BARRIERS facing potential entrants, including:
    • average capital investment needed to enter the industry
    • presence of strong brand names among existing firms
    • economies of scale (i.e., annual break-even point in units)
    • government regulation e.g. CRTC, Investment Canada Act
    • patents
  • provide quantitative or empirical data when analyzing each barrier

 

Important: Do NOT title the heading “Barriers to Entry.” It is a “Threat of Entry.” You are examining and analyzing barriers to entry to determine the threat of entry.

  • low barriers to entry = high threat of entry
  • high barriers to entry = low threat of entry

 

  1. c) Substitutes for products of Industry

 

Competitors are NOT substitutes

 

A substitute is a product with similar – NOT identical – functionality e.g. car vs plane

MUST identify substitutes – if any

 

Oil is a substitute for natural gas which is a substitute for coal which is a substitute for solar which is a substitute for wind etc

 

Note: Many industry associations or Stats Canada provide a chart or table that lists the relative market share of each type 10 years ago, 5 years ago, and today to demonstrate relative shifts (e.g., bottled water is going up while relative liquor consumption is declining).

In this section, you MUST use NORMALIZED data to enable comparisons: company analysis essay writer

  • make a table that lists annual gallons or ounces consumed PER CAPITA or annual dollars spent PER CAPITA, by consumers on milk, water, juice, new age, energy, wine, beer, liquor, etc.
  • identify and analyze the number and functionality or utility of substitutes available, including the price-value relationship between the product and the substitute (e.g., return airplane ticket from Ottawa to Toronto around $200 versus average cost of $50-$100 to rent a car)
  1. d) Power of Suppliers to the Industry (NOT to your firm)

    In this section, you MUST:

  • identify the AGGREGATE numbers of firms and revenues in the supplier industry – look up the NAICS code for the supplier industry
  • analyze the availability of substitutes for the products supplied
  • identify whether the supplier industry is concentrated or fragmented (i.e., less than 5 firms account for more than 50 percent of industry sales)
  • determine whether suppliers are “price takers” or “price makers”
  1. e) Power of Buyers: Customers and Consumers of the Industry (not your firm)
    In this section, you MUST:
  • identify the AGGREGATE number of buyers/consumers. Use the NAICS code for industry buyers
  • analyze buyer power under the categories of:
    • Customers – distributors or retailers (i.e., NAICS code for corporate buyers)
    • Consumers – final end buyer (i.e., you and I)
  • provide empirical data showing whether buyers/customers are concentrated or fragmented.
    • Can buyers/customers threaten to backward integrate?
    • Are there switching costs? If so, you must analyze them.
    • Is the product a commodity that gives buyers more power if there is no differentiation between the commodities except price?

Five Forces Summary

This section MUST provide:

  • a summary of the five forces, with an overall numerical ranking (the average of the 5 individual rankings). Which forces are the most important (i.e., intense)?
  • the industry:
    • average ROIC percentage
    • average profitability percentage
    • growth rate percentage for the past 3 years

Driving Forces

Note: Driving forces are those STRUCTURAL or permanent trends in the macro or industry environments that CAUSE one or more of the five forces to increase or decrease in intensity.

 

Do NOT provide CYCLICAL trends e.g. interest rates, economic growth, unemployment, exchange rates

In this section, you MUST:

  • identify and analyze the one or two industry driving forces and state which competitive force is being affected by the driving force
  • identify whether the identified competitive force is being made less or more intense

The purpose of Driving Forces analysis is to transform Porter’s five forces model, which is a static snapshot at one moment in time, into a dynamic “video” of the industry that measures industry change over time.

Summary of Industry Analysis

In this section you MUST:

  • provide an overall evaluation of industry attractiveness based on:
    • five forces analysis
    • industry growth rate
    • ROIC
    • driving forces
  • determine whether the industry is extremely attractive, moderately attractive, moderately unattractive or extremely unattractive.
  • Provide reasons for your judgment.

 

Hint: Review Micro Economics, as five forces analysis is based on the logic of microeconomics.

 

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