Ryerson University

Ryerson University

MKT 731 Industry Analysis

Fall 2005

Sections 001 & 701E

Group Project Outline

Instructor: Armand Gervais

Email:

Blackboard: https://my.ryerson.ca/webapps/login

Web: www.ryerson.ca/~agervais

Office: B308

Office Phone 416-979-5000 Ext 4215

Table of Contents

Project Overview 3

The Student Group 3

Industry Selection 3

Fundamental questions 5

The Appendices 5

Project Outline 6

The Research/Project Plan 7

Phase 1: Industry Analysis 7

Phase 2 Competitor Analysis 9

Phase 3: Class Presentation 10

Phase 4: Final Report 10

Phase Meeting Guidelines 11

Evaluation 12

Group Self-Assessment and Grade Allocation 14

Penalty for Lateness 14

Confidentiality and Ethics 15

Appendix A Suggested Industries 17

Appendix B Sample Appendix 18

Appendix C Peer Evaluation 19

Project Overview

The Group Project is an intensive, 3 month project where groups of 4-5 students undertake a comprehensive industry analysis of an organization in its business environment. Groups conduct research to understand the industry and identify key issues relevant to the company they study. The result of the project is a report that demonstrates in-depth knowledge of the industry by explaining variation in profitability, identifying key success factors and key issues the company faces today and in the future. The final report will draw on the research to analyze the marketing strategies of the companies in the industry.

A key objective of the project is for students to utilize research data to explain differences in profitability for a given company within an industry.

Learning Objectives

·  experience in conducting research projects,

·  experience conducting industry analysis and identification of issues and key success factors,

·  experience conducting financial analysis,

·  experience analyzing marketing strategies,

·  an opportunity to integrate functional knowledge and skills,

·  experience in writing and presenting a major report,

·  experience in working in a group

The Student Group

Students are responsible for forming themselves into groups of 4-5 students

The following criteria should be followed when forming a group:

·  Groups should have a mix of skills, experience and interests.

·  It is important to have at least one member with financial and analytical capabilities

·  All groups must be formed by second week of class.

See course outline for group evaluation and group issues.

Industry Selection

Groups are responsible for choosing a specific company to analyze for the project from one of the suggested industries. See Appendix A.

Client Site Selection Guidelines/Issues:

Size of Client site - The study is designed to demonstrate the integration of the various aspects or functions of an organization. Start-up situations are usually not useful as client sites. A general guideline for minimum size would be an organization with:

·  Publicly traded or a company that is willing to share financial statements.

·  5-year history,

·  Between 15 and 100 employees and

·  Revenue greater than $500,000.

·  Access to Information/Contact with the Organization: It is imperative that the group and the client site CEO agree that full disclosure of confidential information be provided to the group, including all financial data. There must also be a willingness to allow reasonable personal contact between group members and employees. The study must have the support of senior management and information regarding the market, competition, company, etc., must be made available to the group. Before finalizing the selection of the company, it is always useful to assess carefully the market position of the prospective client site and the location of the customer base. Consider, for example, the research problems involved in studying a company based out of the U.S. with most sales in the U.S. Will there be sufficient opportunity to research and analyze the market/competitive situation?

·  Confidentiality: Strict adherence to confidentiality is imperative. All information gained during the Group project must remain strictly confidential and cannot be shared with anyone, without the consent of the client organization.

·  Group Independence: It is important that no member of the group be in a situation where there is a likelihood of recent, current or future professional involvement with the client site that could influence and/or interfere with the objectivity of the report. The study of one's own family firm is an obvious example of potential conflict.

·  General Interest: The student group will be working on this assignment for 3 months under what are often difficult conditions. It helps then if the company, or at least the industry, is one that is of general interest to the members of the group.

The 4 Phases of the Project

Date / Phase / Key Deliverables
September 21 / Project Outline / ·  Chose a company and industry
·  Form a group
·  Complete Research Plan & Project plan
October 5 / Phase 1 Industry Analysis / ·  Industry Analysis
·  Peer Evaluation & Mark allocation
November 2 / Phase 2 Competitor Analysis / ·  Comprehensive analysis of top 3 competitors
·  Peer Evaluation & Mark allocation
November 23 & 30 / Phase 3 Class Presentation / ·  Summarize industry ,competitor and customer analysis to class
·  Identify issues and key success factors to class
·  Identify strategies
November 30 / Phase 4 Final Report / ·  Updated Industry and Competitive analysis
·  New Customer Analysis
·  Identification of key issues and success factors
·  Analysis of company strategies relative to industry
·  Peer Evaluation and Mark allocation

Note: Instructor may modify deadlines.

Each part of the report should work towards answering key questions outlined below. If you are in doubt about how to organize your main report, use the questions as a guide. Feel free to use any format you feel is most effective, but ensure that each of the questions is answered.

Fundamental questions

Here are some of the Fundamental questions your final report should answer:

·  What business is the company in and what are its goals?

·  Describe the existing business. What is its position in the industry? Porters Five Forces

·  Understand the business model. How does the company make money? Value Chain Analysis

·  Who are their competitors and what are their strengths and weaknesses.

·  How does the company compare to the competitors

·  Describe the market and the historical and future trends.

·  Who are their customers and how does the company reach them?

·  What are its goals relative to growth, control, profitability, shareholder wealth,

Good-works, image, reputation etc.

·  How successful is the organization and why? Why is it less or more profitable?

·  How is success measured or evaluated in the industry?

·  What are the key success factors in the industry?

·  What are the key Metrics used in the industry?

·  What are the indicators of historic and recent performance relative to measures or goals?

·  What has been the reason for its success or poor performance?

·  What are the company’s prospects for the future?

·  Given its strengths/weaknesses, the competitive environment and trends, what is the forecast of its performance? SWOT Analysis

·  What critical assumptions are you making about the environment in terms of scenarios or forecasts?

·  What fundamental issues, choices and alternatives face the company?

·  What are the key strategic issues that face the organization?

·  What strategic choices, opportunities, or alternatives are available to address the key issues?

Note: The body of all phase reports should contain key findings, analysis and implications. All raw data is to be the appendices. Information on structuring the appendices follows.

The Appendices

Appendices are the section of the report where relevant research data are presented and analyzed. They appendices provide the evidence to support the arguments and recommendations in the body of the report. They consist of relevant data that are gathered throughout the life of the project.

Most of the material that appears in the appendices should be referred to in the body of the report. Much of the detailed analysis and reference evidence may be placed in appendices. Do not include raw information, unless it serves a purpose. If you have compiled data that is not referenced in the body of the report, it should not appear in the appendices. The appendices will change as the group proceeds through each phase. What may have been a relevant appendix in Phase 1 or 2 may not be relevant in Phase 4.

One of the key areas that require a significant amount of time is the development of the appendices. Groups should decide on the format and structure of the appendices. It is recommended that groups structure their appendices consistently from Phase 1 on, to avoid restructuring and rewriting the appendix in future phases.

Each section of the report should have a corresponding appendix, and the body of the appendix should flow with the body of the report (i.e. if the company overview is first in the report, data related to it should be first in the appendix).

The front page of every Appendix should have a summary cover page (bulleted list) that identifies:

a)  Purpose

b)  Key findings

c)  Sources of data

d)  Methodology of obtaining the data

e)  Who completed the work (This will be used by instructor to adjust individual marks if required!)

f)  Implications THIS IS KEY

See Appendix B for a sample

This format will provide the instructor a quick summary of the appendices and highlight the key points relevant to the report. There is no limit to the number or size of appendices. As a basic guide, the list of appendices should at least include:

·  Industry size & trends

·  Financial Analysis

·  Weighted Competitive assessment

·  Customer analysis

·  Supplier analysis

·  Market segment analysis

·  Technological developments.

Although there is no page limit, show some judgment. Make sure that all of the information and analysis is useful and relevant.

Project Outline

Report Format:

All phase reports should be Cerlux bound/Coil bound (No Binders) and have a suitable title page identifying the following:

·  the course and section number;

·  group members;

·  instructors name;

·  assignment title;

·  date that the assignment was submitted.

The phase reports must also have a table of contents, appendices, and bibliography.

Appropriate methods for reference notations are also expected. Please use footnotes or endnotes.
All pages must be numbered

Body of the report should be double spaced and written in 12 pt font.

Single spacing is acceptable for tables and appendices and lists. Use discretion

Groups must adhere to page limits set out in the project outline. I will not mark past these page limits.

Spelling and Grammar errors will affect the grade

All supporting documents should be integrated into one word document. This includes Appendices. DO NOT submit multiple documents for the phase report. I will not integrate them before marking.

The Research/Project Plan

Project Plan Deliverables: 2-3 pages Outline

1 page project plan

Outline should contain the following:

·  Company and industry selected for Project

·  Group members and student ID’s

·  Specific questions to be researched for Phase 1

·  Sources of information you expect to use, for example: interviews with owners, managers & staff; financial statements, sales records; interviews with suppliers, surveys of customers; search of trade literature, government reports, etc.

·  Estimated time required with expected completion dates

·  Specific responsibilities and tasks of the group members and the time allocated

This part is not marked however it is important that groups explore data issues early on to ensure they can complete the requirements of the project. It is NOT the instructor’s responsibility to ensure you can get data to complete the project.

Phase 1: Industry Analysis

Phase 1 Deliverables: 10-15 Page report excluding Appendices

1-2 Page Executive Summary on the Company and Industry

Revised Project Plan

Compiled Peer Evaluation Spreadsheet Emailed

Report Requirements

1. Market Data for Industry

a) Definition of industry by product/market and geography.

b) Sales history (aggregate and by significant product groupings). Analysis of sales trends and growth patterns. Future growth trends?

c) Major players market share (current and historical). Analysis of data.

2. A general discussion of the industry and an identification of the principal issues within the industry.

3. How attractive is the industry (profitability, growth etc.).

(Use Porters 5 force analysis as a foundation for this analysis).

4.  The key success factors in the industry. What are the comparative advantages
needed in order to be successful? Complete a weighted competitive strength assessment

5. The customer/market analysis (Behavioral, Economic, and Social
characteristics). Key segments analysis.

6. An analysis of the financial dimensions of the industry (cost, learning
experience curve, profitability, investments, cost/price patterns).

7. Product/service aspects within the industry. Growth-share matrix.

8. Technological implications for the industry.

9. Key opportunities within the industry.

10. Marketing practice in the industry. A description of how products or services are marketed. For example, type of channels, type and level of promotion.

Preliminary Assessment

·  Hypothesize as to what appear to be the important strategic issues, (the major elements which will determine the client site’s or industry players success or failure)

·  Make attempts to answer the Fundamental Questions identified earlier. You will have gaps in the data to support the rationale for your responses but it is useful to make a hypothesis based on the information gathered. This will help guide your research plan.

·  Use whatever format you feel is most effective to deliver the information to the advisory instructor.

Purpose of Phase Meeting

·  To ensure required research has been completed.

·  To give instructor an understanding of the company and the industry.

·  To review scope, and resolve any issues about site and scope of the project.

·  To discuss preliminary issues of the company, to identify areas for research.

·  To clarify the group's research plans for Phase 2. Are the questions or issues addressed in the research plan are appropriate? Have suitable priorities been assigned to the various aspects of the work? Do the specific projects contained in the research plan look to be practical and can be expected to yield the results anticipated?