business analysis by binam ghimire n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Business Analysis by Binam Ghimire PowerPoint Presentation
Download Presentation
Business Analysis by Binam Ghimire

Loading in 2 Seconds...

play fullscreen
1 / 23

Business Analysis by Binam Ghimire - PowerPoint PPT Presentation


  • 115 Views
  • Uploaded on

Business Analysis by Binam Ghimire. Learning Objectives. Internal and External Analysis; PESTLE Analysis - an examination of the Legal, Economic, Political, Environmental ; Social; Technological; Ethical factors and Competition.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Business Analysis by Binam Ghimire' - jill


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
business analysis by binam ghimire
Business Analysis

by Binam Ghimire

learning objectives
Learning Objectives
  • Internal and External Analysis;
  • PESTLE Analysis - an examination of the Legal, Economic, Political, Environmental; Social; Technological; Ethical factors and Competition.
  • SWOT Analysis - identifying and analysing Strengths, Weaknesses, Opportunities and Threats;
  • Porter's 5 Forces - Rivalry amongst Existing Competitors, New Entrants, Substitutes, Bargaining Powers of Buyers and Suppliers.
business financial analysis
Business & Financial Analysis
  • Introduction
    • As the course title suggests this course will examine:
      • Business Analysis and
      • Financial Analysis
  • What do they involve ?
business analysis
Business Analysis
  • Business Analysis involves:
    • Internal Analysis – value chain, audit
    • External Analysis – SWOT, PESTLE & Porter’s 5 Forces Model
    • Competitive Advantage – Generic Strategies and SPACE Model, Stakeholder Analysis and Choices
  • This session will focus on External Analysis (Internal Analysis: Self study)
    • SWOT
    • PESTLE
    • Porter’s 5 Forces Model
external analysis
External Analysis
  • SWOT
  • PESTLE
  • Porter’s 5 Forces Model
  • Spend a moment outlining what you know of each model
  • OK, let’s see if we agree…
swot analysis
SWOT Analysis
  • SWOT
    • Strengths

Internal Factors

    • Weaknesses
    • Opportunities

External Factors (PESTLE Analysis)

    • Threats
opportunities threats
Opportunities & Threats
  • PESTLE Analysis is a useful tool to help identify Opportunities & Threats facing your organisation or sector
  • Let us examine PESTLE Analysis…
pestle analysis
PESTLE Analysis
  • PESTEL analysis is:
    • an evaluation of broad societal trends that affect many industries.
  • It is intended to identify:
    • both current and, especially, future developments that will shape the micro-environments of each industry sector
  • What current and future developments will have an impact on a particular sector ?
  • Hint: The first one is P – Political. The second is E…
pestle factors
PESTLE Factors
  • POLITICAL ISSUES/TRENDS
  • ECONOMIC ISSUES/TRENDS
  • SOCIAL ISSUES/TRENDS
  • TECHNOLOGICAL ISSUES/TRENDS
  • ENVIRONMENTAL ISSUES/TRENDS
  • LEGAL ISSUES/TRENDS
pestle the oil sector
PESTLE & The Oil Sector
  • Spend a moment listing events under each heading with reference to the Oil Sector, for example:
  • P – Political
    • Tension in the Middle East may impact on supply and hence price
    • Tension between neighbouring countries may affect supply, e.g. Russia and Ukraine
    • Tax will affect price
what did you come up with
What did you come up with ?
  • E Economic
    • Volatility in the price of oil
    • Exchange rate risk (oil is priced in $)
    • Cost of petrol and its impact on demand
  • Social
    • The rise of the car from luxury to necessity
    • Move to green and/or alternative fuel
  • Technology
    • Development of alternative energy due to….?
  • Environmental
    • BP Oil Spill
  • Legal
    • Fines etc, consider the cost of the recent BP oil spill
a good pestle analysis should be
A good PESTLE analysis should be….
  • Focused on society wide trends which looks at the impact on industry and organisation.
  • Based on sound research of actual (not hypothetical) issues.
  • Supported by evidence from the research to validate points made.
  • Future oriented rather than merely describing the present, i.e. it is about emerging trends that will shape the industries future.
  • Interpretive in nature not descriptive, i.e. don’t just state what is, but say why/how it is significant for the future of the industry and firm context.
porter s 5 forces model
Porter’s 5 Forces Model
  • Industry Sector Analysis
    • The industry analysis can be done using Porter’s 5 Forces Model.
    • This has two main aims:
      • To understand the drivers of competitive behaviour in the sector;
      • To evaluate the long-run profit potential of the sector;
  • What factors do you think drive Competitive Behaviour ?
slide15

Porter’s 5 Forces Model

Threat of

new entrants

Rivalry among

Existing firms

Bargaining

power of

suppliers

Bargaining

Power of

consumers

Again, consider the Oil Sector

Threat from

Substitutes

slide16

Capital requirements

  • Product differentiation
  • Switching costs
  • Access to distribution channels
  • Access to raw materials
  • Intellectual property
  • Competitive response
  • Government regulation
  • Economies of scale

Threatfrom

new entrants

  • Size of purchases
  • Differentiation in product
  • Few substitutes
  • A few big suppliers
  • Threat of backward integration

Intensity of Rivalry

  • Growth rate of market
  • Relative size of rivals
  • Capacity increases in large
  • increments
  • Exit barriers are high
  • Switching costs
  • Profitability

Bargaining power of Suppliers

Bargaining

power of Customers

  • Size of purchases
  • Undifferentiated product
  • Per cent of cost
  • Low margins (buyer)
  • Threat of forward integration
  • Impact on quality
  • Price performance is high
  • Degree of differentiation
  • Technological innovation
  • Price performance relationships

Threat of

Substitute

products

evaluation of the five force model
Evaluation of the Five Force Model

Identifies drivers of competitive behaviour.

Indicates trends in profitability.

Highlights strategies to alter industry structure.

Can be used to compare attractiveness of different sectors.

Assumes all business relationships are competitive.

Industry convergence makes defining sectors difficult.

Five forces may not capture the whole picture of what drives an industry.

DISADVANTAGES

ADVANTAGES

market analysis for strategy
Market analysis for strategy

Market attractiveness

Is entry into the market compatible with our strategic objectives?

Competitive advantage

What relative (better) or absolute (unique) advantages do we bring to the market that satisfy customer needs better than competitors?

The GEC Matrix examines these issues

Market analysis for strategy purposes is not simply about customer segments, their needs and numbers as in marketing.

Strategists are concerned with broader criteria relating to*:

* These two issues overlap, i.e. the better able you are to compete, the more attractive the market

information sources
Information sources

Basic market data

Mintel

Keynote

Datamonitor/Marketline

Census data

Basic competitor information

Hoovers online

Fame

Corporate web sites

Obviously, the available sources are many and varied but key ones include:

summary
Summary
  • SWOT
    • Strengths, Weaknesses – Internal Factors
    • Opportunities & Threats – External Factors (PESTLE Analysis)
  • Porter’s 5 Forces Model
      • – Competitive Behaviour/ Industry Sector Analysis
  • Can you remember what PESTLE stands for and what the 5 Forces are ?
pestle factors1
PESTLE Factors
  • POLITICAL ISSUES/TRENDS
  • ECONOMIC ISSUES/TRENDS
  • SOCIAL ISSUES/TRENDS
  • TECHNOLOGICAL ISSUES/TRENDS
  • ENVIRONMENTAL ISSUES/TRENDS
  • LEGAL ISSUES/TRENDS
slide22

Porter’s 5 Forces Model

Threat of

new entrants

Rivalry among

Existing firms

Bargaining

power of

suppliers

Bargaining

Power of

consumers

Threat from

Substitutes

summary1
Summary
  • SWOT
  • PESTLE
  • PORTER’S FIVE FORCES