Forming Teams. No more than 4 people on a team. Diversify on majors. Match with desired grade. Match with desired industry. Industry Project. How to select a firm & industry: - PowerPoint PPT Presentation
Forming TeamsNo more than 4 people on a team.
Diversify on majors.
Match with desired grade.
Match with desired industry.
1Industry ProjectHow to select a firm & industry:No magic here. What interests you and/or your team? Interest is important so that the work will aid in your present job, or your quest for another field. Also, by the end of the projects you will hate the industry and firm. So, start off on a positive note.Remember that this is an applied course!
2Industry ProjectFinding 10 year total returns to investorsFollow this link: http://money.cnn.com/magazines/fortune/fortune500/2012/industries/140/You will see a screen similar to this:
3You can scroll down until you find an industry that is of interest. Lets say you want to do the airline industry. Simply click on Airlines and you will get a screen like this:
From here you click on EPS, Total return, Employees and you will get this:No voice file
As is fairly obvious, the industry has not done well over the last ten years based on total returns. However, it is trends that matter. Overall, the best performer has been Southwest. The question then becomes, why could not the other firms do as well? There is sufficient information here to make a choice of industry, poorly performing firm, and better performing firm. No voice file5Industry ProjectSelection of Industry:
This begins with your poorly performing firm.
What are your firms NAICS or SIC codes?
What is primary source of revenue?
6Industry ProjectBeginning in 1997, the Standard Industrial Classification (SIC) was replaced by the North American Industry Classification System (NAICS). This six digit code is a major revision that not only provides for newer industries, but also reorganizes the categories on a production/process-oriented basis. This new, uniform, industry-wide classification system has been designed as the index for statistical reporting of all economic activities of the U.S., Canada, and Mexico. Still, most people refer to the old SIC system.
No voice file. Just stuff for your info
7Industry ProjectCollecting DataStart with Mergent online
Then switch to Standard & Poors
Here is an example using Merck
NOTE: They have changed the interface, but the methodology is the same.
17Industry Project OutlineIntroductionA. DescriptionB. SegmentsC. Caveats (No longer required)