by Pioneer Institute of Professional Studies

- By Pioneer Institute of Professional Studies

Introduction
In this activity every student will be assigned a
company to which he/she has to analyze on
different parameters as discussed further
Objective of Activity
The objective of this activity is to analyze internal &
external environment of the company.
To gain the in depth knowledge of the company &

Sector
To develop an entire overview about the company

like strategies, competitors, challenges, list of
products and services, business structure.
PHASE I
Company Profile
Mergers/alliances/takeovers
Top Management
Location of manufacturing unit and Touch
points
Current goals and objectives
Financial Aspects
Stakeholders
PHASE II
SWOT Analysis
Strategic Analysis
Recommendations/ Suggestions
Opinion about the company
Conclusion
References & Sources
Working Material

Define The Business

Promoters : Who started/run the business
Current Top Management
Vision/Mission of the Company
Current Goals & Objectives
All Product lines, Manufacturing Units
Capacity, Various types & Medium of Point
of Sales

Analyze all the financial terms like:

Operating margin (%)
Gross profit margin (%)
Net profit margin (%)
EPS (Rs)
Return on net worth (%)
Dividend payout ratio (net profit)
PBDIT
Depreciation
PBIT
PBT
PAT
Net profit
Operating margin
(%): It compares the quality of a

companys activity to its competitors. A business that has a
higher operating margin than others in the industry is generally
doing better as long as the gains didn't come by piling on debt
or taking highly risky speculations with shareholders' money.
Gross profit margin (%):
The gross profit margin is

a measurement of a company's manufacturing and distribution
efficiency during the production process. The gross profit tells
an investor the percentage of revenue / sales left after
subtracting the cost of goods sold.
Net profit margin (%):
The profit margin tells you

how much profit a company makes for every $1 it generates in
revenue or sales.
EPS (Rs):
Earnings per share is generally considered to be

the single most important variable in determining a share's
price. It is also a major component used to calculate the priceto-earnings valuation ratio.
Return on net worth (%):
Indicator of
profitability. It is the ratio of net profit to share
holder's investment. It is the relationship between
net profit (after interest and tax) and share
holder's/proprietor's fund.
Dividend payout ratio (net profit):

profi
Measures
what a companys pays out to investors in the form
of dividends.
PBDIT: It is profit before any expenses like

depreciation, interest & tax.
Depreciation: A noncash expense that reduces

the value of an asset as a result of wear and tear,
age, or obsolescence.
PBIT:
Profit before interest and taxes ( PBIT ) or

operating income is a investment formula to measure of a
corporation's profitability by subtracting operating
expenses from revenue excluding tax and interest.
PBT:
PBT
A profitability measure that looks at a company's

profits before the company has to pay corporate income
tax.
PAT:
It the net profit earned by the company after

deducting all expenses like interest, depreciation and tax. It
can be fully retained by a company to be used in the
business.
Net profit:
Net profit is the money left over after

paying all the expenses of an endeavor . It also include
other income like dividend, interest on loan.
SWOT Analysis:
The aim of any SWOT analysis is to identify

the key internal and external factors that are
important to achieving the objective. These
come from within the company's unique value
chain. SWOT analysis groups key pieces of
information into two main categories:
Internal factors The strengths and
weaknesses internal to the organization.
External factors The opportunities and
threats presented by the external environment
to the organization.
The internal factors may be viewed as strengths

or weaknesses depending upon their impact on
the organization's objectives. What may represent
strengths with respect to one objective may be
weaknesses for another objective. The factors
may include all of the 4P's; as well as personnel,
finance, manufacturing capabilities, and so on.
The external factors may include macroeconomic

matters, technological change, legislation, and
socio-cultural changes, as well as changes in the
marketplace or competitive position. The results
are often presented in the form of a matrix.
Strength:
Strength:
1. Strong Financial Condition
Owners Capital
No of shareholders
Foreign Investment
Institutional Investment
Profitability of last 4 Quarters
2. Market share and standing in market
3. Patents and Trademarks.
4. Successful New Products launched in last 5 years.
5. Successful Advertisement Campaigns
6. Strong Customer Service- any Award won
for customer service.

7.Joint ventures, Strategic Alliances,
Takeovers and Mergers.
8.Managerial Expertise Experience of CEO,
CMO & CFO.
9.Distribution System: No. of Dealers, C&F
agents and distributors in the Country
10.Comparatively Comparison on Prices for
various Product line with Competitor.
Weaknesses
1. Human
Resource
2. Lack of Working Capital
3. No Technical Expertise of Company/Division
4. No Control over Raw Material
5. No clear Strategic Direction
6. Competitive Capabilities
7. Weak balance sheet; excess debt
8. Poor Product Design
9. Low level of stocks in times of peak sales
11. Falling behind in R&D

12. Higher overall costs than rivals
13. Missing some key skills/competencies
14. Internal operating problems
15. Weak marketing skills
Opportunities:
Opportunities:
1.
Few and Weak competitors
2. Favourable Government Policy
3. Expanding to New Geographic Areas
4. Expanding Product Line
5. Transferring Skills to New Products
6. Increase market share from Rivals
7. Acquisition of rivals
8. Alliances or JVs to Expand coverage
9. Openings to Exploit new technologies
10. Openings to Extend brand
name/image
11. Adequate training opportunities

12. Serving additional customer groups
13. Vertical integration
Threats:

Restive Labour Force

Rising Raw Materials Costs
Entry of Potential New Competitors
Loss of Sales to Substitutes
Slow Market Growth
Adverse shifts in Exchange Rates & Trade
Policies

Government Bureaucracy
Natural Disasters
Costly New Regulations
Vulnerability to Business Cycle
Growing Leverage of customers or suppliers
Reduced Buyer Needs for product
Demographic Changes

BCG Matrix
GE Nine-Cell Matrix
Experience Curve Analysis
Life Cycle analysis
Porters Five Forces Model
External Opportunities
(O)
1.
2.
3.
4.
External Threats
(T)
1.
2.
3.
4.
Internal Strengths(S)
1.
2.
3.
4.
SO
ST
"Maxi-Maxi" Strategy
"Maxi-Mini" Strategy
Strategies that use

strengths to maximize
opportunities.
Strategies that use

strengths to minimize
threats.
Internal Weaknesses
(W)
1.
2.
3.
4.
WO
WT
"Mini-Maxi" Strategy
"Mini-Mini" Strategy
Strategies that
minimize weaknesses
by taking advantage of
opportunities.
Strategies that
minimize weaknesses
and avoid threats.
This helps you identify strategic alternatives

that address the following additional
questions:
Strengths and Opportunities (SO) - How can
you use your strengths to take advantage of
the opportunities?
Strengths and Threats (ST) - How can you
take advantage of your strengths to avoid real
and potential threats?
Weaknesses and Opportunities (WO) - How
can you use your opportunities to overcome
the weaknesses you are experiencing?
Weaknesses and Threats (WT) - How can you
minimize your weaknesses and avoid threats?
Opinion
About the Company

Conclusion
Conclusion about the Strengths &
weaknesses associated with the company.
Conclusion about the strategies to be
taken.
References & Sources
Companys Website
Journals
News Papers
DO
DOs

You have to complete Presentation within 30

Minutes.
Data should be relevant and updated.
Analyze and compare the competitors strategies.
Need to explain each and every point of SWOT
analysis.
Need to give working material.
Phase I will be presented in the form of word file,
explanation of every point has to be given
Phase II will be submitted in the PPT Format along
with which every student has to carry the working
material in the word format

You have to suggest some strategies based on

the SWOT analysis.
Opinion about the company should not be
more than 8 to 10 line.
No second chance is given if it is copied.
You can add more relevant points other than
given SWOT parameters.
You have to make one softcopy and one
hardcopy.
The header must contain:
Pioneer Institute of Professional Studies
Name:
Roll no..
Class:

The title of CD must contain:

Pioneer Institute of Professional Studies
Name of the student
Roll no.
Class
Name of Activity
Your report should be MS Office 2003 format.
Font: Times New Roman
Font Size: 14 for Headings & 12 for Body of
Paragraph
Margin: 1 (Top, Bottom, Left, Right)
DON
DONT
Don't try to cover too much or garbage

material. Remember you only have 30
minutes.
Dont try to copy the content of your friends
study.
SWOT Analysis must be of a Company, not of
a Product.
Thank You !!!!

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- By Pioneer Institute of Professional Studies

To gain the in depth knowledge of the company &

To develop an entire overview about the company

Define The Business

Analyze all the financial terms like:

(%): It compares the quality of a

Gross profit margin (%):

The gross profit margin is

Net profit margin (%):

The profit margin tells you

Earnings per share is generally considered to be

Return on net worth (%):

Dividend payout ratio (net profit):

PBDIT: It is profit before any expenses like

Depreciation: A noncash expense that reduces

Profit before interest and taxes ( PBIT ) or

A profitability measure that looks at a company's

It the net profit earned by the company after

Net profit is the money left over after

The aim of any SWOT analysis is to identify

The internal factors may be viewed as strengths

The external factors may include macroeconomic

6. Strong Customer Service- any Award won

for customer service.

11. Falling behind in R&D

11. Adequate training opportunities

Restive Labour Force

Strategies that use

Strategies that use

This helps you identify strategic alternatives

About the Company

You have to complete Presentation within 30

You have to suggest some strategies based on

The title of CD must contain:

Don't try to cover too much or garbage

Thank You !!!!

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