Question

How have you applied what you’ve learned so far (Company Analysis, Industry Analysis, Targeting and Segmentation or information from other courses/experiences) that helped guide your new product decision?

• What 3 actions can you take to further develop your Undergraduate Competency: Curiosity & Imagination in this class and others? Be specific. in your own words

Answer 1

COMPANY ANALYSIS
It is important for an investor who wants to invest in a company.
Steps of company analysis-
Measuring Earning- Based on two types of information
Internal information like data and events by the operation.

• Income statement
• Balance sheet
• Statements of cash flow

External information generated outside the company.

• Rating agencies report
• Economic survey

FORECASTING EARNING-
Asset productivity and earning- Firm invest capital in assets and then these assets used by the company to generate income.

• EBIT-Earning Before Income and Taxes
• EBT- Earning Before Taxes
• EAT- Earning After Tax
• DPS- Dividend Per Share
• Return on Assets.

Debt financing and earning-

• The productivity of funds is called return on assets(R)
• Effective Rate of Interest(I)= Interest Expense/total liability
• Benefits Of Borrowed Money=(R-I)

APPLIED VALUATIONS-

Forcast is not only the expected return but also the Expected risk of an investment. This can be achieved by

• Regression Analysis
• Trend analysis
• Decision Tree analysis

INDUSTRY ANALYSIS
It helps to make us aware of the market performance
Identify investment opportunity

• Data requirement-
• Product line
• Complementary product
• Product growth
• Product pattern
• Economies of scales
• Suppliers
• Labor market
• Buyer and their behavior
• Substitute product

Tools for analyzing
Qualitative-

• Cross-sectional industry performance
• Industry performance overtime
• The difference in industry risks
• SWOT Analysis

Quantitative

• Analysing Employment Data
• Analysis of Emolument data
• Input / Output Analysis.

TARGETING and SEGMENTATION

Targeting-
Include a set of buyer who has common needs served by a company. Below steps needed to set the target-

• Develop a measure of segment attractiveness
• Select target segments
• Evaluate market segments

Types

• Undifferentiated
• Differentiated
• Concentrated(niche)

Segmentation-
According to the need to divide the market into different parts, who might require different products. It consists of steps-

• Identify a basis for segmentation
• Develop a segment profile

Types of segmentation

• Geographical(different countries)
• Demographical( age, gender, family size,occupation)
• Psychographic(lifestyle,social class)
• Behavioral(occasion, status, loyalty)

3 ACTION TAKE TO DEVELOP CURIOSITY AND IMAGINATION

• Immerse yourself deep into a particular effort to explore it deeply.
• Invest in training and tools which keep your curiosity alive.
• Examine your own assumptions, belief, or convictions.