Session 1

Economy Industry Company

 Economy Analysis
Top Down
Industry Analysis
Approach
Company Analysis
 Questions to Answer
Economy Analysis
• What is the competitive advantage of the country vis a vis it’s peers?
• Porters Diamond Framework
• Are people happy in the country?
• Happiness Index
• Inequality Level
• Unemployment Level
• How does the country compare to its peers in terms of
• Healthcare
• Education
• Demography Profile
• How is the culture impacting values in work place
• Hofstede National Culture Model and it’s six dimensions
• What is the country’s attitude to it’s societal responsibility
• ESG framework
• How well has the government facilitated the use of technology in governance?
 Questions to Answer

• Is the country financially stable? How is the

economic growth of the country?
• Economic indicators
• GDP, GDP Growth, IIP, CPI, PMI etc.
Economy • Is the country stable politically?

Analysis • Coalition government or one party

government
• State versus Centre relationship
• How is the regulatory and legal redressal system?
• The main regulatory
• Is the fiscal and monetary policy directed at
economic growth
 Questions to Answer

Is the industry fragmented or consolidated?

What is the value chain?

• Porter’s Value Chain Analysis
Industry Analysis
How has technological disruption impacted the market?
• Hotel Industry – Online Reservation - Oyo
• Paint Industry – Predicting Supply through Predictive analysis
Asian Paints
• Banking Industry – Specialised services and its impact - Fintech
companies
• Restaurant – Online Delivery - , Zomato
• Retail – Online Models - Amazon, Flipkart
• Broking Industry – Algorithmic Trading
• Automobiles – Tesla, Reva
• Telecommunication – Product to Service Orientation – Apps
 Questions to Answer

• What are the key metrics used?

• Telecommunication – ARPU, Churn Rate
• Hotel –Average Occupancy Rate
• IT Companies – Revenue per employee,
Industry Attrition rate
• Construction Industry – Order Book Position
Analysis • Retail Industry – Sales per square foot, Average
Transaction value
• Automobile Industry – Monthly Production
data,Cost of Goods sold
Industry Analysis
Frameworks

Porters Five Force PESTL

• Competitive Rivalry • Political

• Supplier Power • Economic
• Buyer Power • Social
• Threat of Substitution • Technology
• Threat of New Entry • Legal
 Questions to Answer

Is the industry fragmented or consolidated?

What is the value chain?

Industry Analysis –

What are the frameworks that can be used for industry

analysis?

How has technological disruption impacted the market?

Framwork

What is the industry life cycle of the particular industry?

Which are the major players in the industry?

 a. Business Model
• Supply factors

Company i. Personnel
ii.Capital Expenditure

Analysis iii.Technological Capabilities

iv.Technical Knowhow
v.Supply Chain
 i. Fund Analysis
1. Capital Expenditure Analysis
2. Long Term Financing
Company ii.Balance Scorecard and its constituents
• Management Background Analysis
Analysis • Balance Scorecard
 • Demand Factors
i. Product Portfolio Strategy

Company ii.Customer Analysis

iii.Pricing elasticities
Analysis iv.Seasonality and Cyclicity of Demand
What is a business plan
• Pitch to raise money
• Characteristics of a good business model
• Differentiating Factors
• Professional Management
• Scalability
• Replicability
Constituents of Business Plan
1. Business Idea

2. Management Team

3. Go to market Strategy

4. Technical Feasibility

5. Financial Feasibility

6. Identifying Differentiating Factors

7. Scalability

8. Replicability
What is a business plan
• Pitch to raise money
• Characteristics of a good business model
• Scalability
• Replacability
• Differentiating Factors
• Professional Managemet