Economy – Industry – Company Analysis Prepared by Date Table of Contents 2 Introduction 3 Report body 3 An analysis of the current economic fundamentals 3 Justification for the choice of industry given the economic indicators 6 Industry information 7 Justification of stock using the intrinsic value 8 Forecast of the short term growth rate 9 Estimate of the required return on equity 10 Brief outline of the firms operations 10 Expected performance of the firm given the expected industrial and economic conditions 10 Conclusion 11 References 12 Appendix 14 Assumptions/difficulties 14 Introduction The choice of the right stock for investment depends upon two kinds of analysis…
The two graphs presented belong are indicating two different indicators, one is the GDP growth rate of the e country and the other one is the Australian Inflation rate. The two different kind of indicators helps to find out the rate at which the economy of the country is progressing and the rate at which the inflation deflated the GDP (Funder 2003, 122). Fig1: Australia GDP growth rate Source: (Dessler 2011, 177) The economic fundamentals indicate that the GDP rate of Australia is stable. Although there are presence of deep troughs and intermittent high peaks but these are normally associated with a strong economy (Funder 2004, 461). Although the analysis indicates that the GDP growth rate has decreased lately since the start of year 2013. Fig 2: Australia Inflation Rate Source: (Dessler 2011, 177) The inflation rate of Australia decreased significantly by the end of year 2013. Although it started rising from the year 2013. The rising inflation rate indicates that the cost of living also increased. The cost of lending will increase and the value of stock decreases. The rise and fall of the values of the equities are intrinsically related to the economic development of the country. The rate at which the GDP improved does not indicate that the value of the stocks will increase any sooner (Dessler 2008, 199). Although the rate at which the inflation rate is decreasing indicates that the cost of living is expected to come down. Apart from that the cost of lending will also come down. The decreasing lending rate also indicates that the value of the equities will increase. Fig 3: Comparison of the GDP growth rate Source: (Dessler 2011, 177) The above diagram indicates the relative performance of Australian GDP in comparison to the GDP growth rate of the rest of the world. The GDP growth rate is traced starting from the year 2011 to the year 2017 (Dessler 2011, 177). The actual data is present from the year 2011 to 2013 and the rest of the data from 2014 to 2017 are based on forecast. The forecasted data predict that the GDP is growing to grow at a rate of only 3.5%. Justification for the choice of industry given the economic indicators The company chosen is Infratil Limited. Infratil Limited deals in infrastructure business, investments across Australia, United Kingdom and New Zealand. Apart from that the company is also involved as retailer of gas and electricity to commercial and individual investors. This indicates that the company is spread across multiple domains. It is involved in manufacturing investment as well as energy sector. In other words, the company belongs to a multi utility sector. A multi utility sector has various advantages in comparison to a single sector. Multi utility sector acts just like a diversified portfolio. It helps to diversify the risk (Bagchi 2006, 559-567). As it is already indicated that the GDP ...
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However, food and grocery are too contributing greatly to the country’s economy and it is a big part of the retail industry in India. According to research, the food retail industry is growing at a vast rate thought to be approximately 30% and it is believed that the food retail industry would be the driving force in India’s economy.
The scope of this report is limited to the United States business segment of Starbucks which is one of the three reportable operating segments of the company apart from the International segment and Global Consumer Products Group segment (Starbucks Corporation, 2012).
1. Introduction to Industry It is worthwhile to mention that US retail industry comprises of many mass merchandise business chains such as Wal-Mart, Kroger, Home Depot, Target, Cost Co, Best Buy, Safeway, Whole Foods etc. According to Farfan (2, 2010), there are five US based retailers in the list of top ten retail chains across the globe.
This section explores how Germans realized such an enviable combination f high wages and high international competitiveness, and then why such an excellent model underwent crisis in the 1990s.
The core components f the German model for the systemic combination f high wages and high international competitiveness were based on the craft-based production system.
So analysis of the situations is quite important in greater functioning of the firm. This is can be supplemented with idea of profitability of the business venture. To understand the functioning of the firm with respect to market trends and analysis, industry analysis is very important and critical.
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Good-to-Go operates as a
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