Historical overview of a company your team selects and products and/or services provided by that company.
Analysis of economy and industry.
SWOT analysis of the company.
Forecast of the economy, industry, and company for next year.
Pro-forma Income Statement and Balance Sheet
Recommendations and conclusions.
Guides and Tips: (Overall length: 10 – 15 pages, not including references, charts, etc.)
A team must select a publicly held company where financial data is readily available. Most publicly held companies have this information readily available. You will need at least 3 years of historical data (5 – 10 years is preferred). A private company can be used if they provide you access to financial data.
Discuss the relationship, if any, between the economy and industry, and the industry and company.
Provide an overview of the company’s Strengths, Weaknesses, Opportunities, and Threats. Please note that Strengths and Weakness are internal, Threats are external, and Opportunities tend to be a combination of internal Strengths combined with favorable industry/economy factors. There is a difference between Opportunities and Options.
Use one of the readily available forecasts of the economy versus trying to develop your own economic forecasting model. Most major industries are forecasted by the government, think tanks, and/or industry trade groups. Use their information for your forecast of the industry. For the company, use historical sales data and perform regression analysis. Regression analysis for most publicly held companies will provide strong R squared and R values to be used in forecasting future sales. In those cases where R squared and R values are too low for forecasting purposes, you will have to develop your own methodology to forecast sales. Be sure and explain how you arrive at a forecasted sales value.
An abbreviated Pro-forma Income Statement and Balance Sheet is needed. You do no need to encompass all the variables but rather show sales, cost of goods sold or cost of services provides, and fixed costs. Other noteworthy items can be included if they are significant.
Draw conclusions based on your forecast and analysis of the company including the challenges faced by the company and industry.
Click on the links below for the CASE ANALYSIS FORMAT/GUIDELINES FOR LIVE CASE and the REGRESSION ANALYSIS TIPS documents. Students MUST follow this format for completing the core assessment case analysis.