Corporate Finance | MBA737-02-F14 Industry Analysis (Project) Industry Analysis (Project) Points Points available: 100 Not yet graded. Assignment: Equity Analyst Project: Team Analysis of Select Industry Groups Purpose To enable the student and her/his team to demonstrate proficiency in the second stage of a top-down, three-stage valuation analysis: analysis of alternative industry groups. Overview This second part of the assignment is a team assignment that requires your team to analyze a select group of alternative industries to determine which is most likely to perform best over the next 12 months. Factors to consider in comparing industry groups include how an industry is affected by economic cycles, or, more specifically, how the current and prospective economy over the next year will affect them comparatively and the comparative current and prospective domestic and global supply and demand conditions in their respective markets. The industry classification system that you are asked to use is the database used at Yahoo! Finance. The system is comprised of 9 macroeconomic sectors, 31 business segments and 215 industry groups. This database is readily accessible via Yahoo! Finance. To simplify the exercise, the 215 industry groups within the database have been reduce to a more analytically manageable 24 industry groups (each with public firms listed at Yahoo! Finance totaling no less than 5 and no more than 15 companies) in 7 macroeconomic sectors as follows: Basic Materials Aluminum Major Integrated Oil &Gas Nonmetallic Mineral Mining Consumer Goods Appliances Confectioners Office Supplies Financial REIT-Healthcare Facilities REIT-Hotel/Motel REIT-Industrial Healthcare Drugs-Generic Home Health Care Hospitals page 1 of 3 – 12/26/2014 Industrial Goods Manufactured Housing Pollution & Treatment Controls Services Advertising Agencies Air Delivery & Freight Services Drug Stores Electronic Stores Home Improvement Stores Jewelry Stores Technology Computer Based Systems Long Distance Carriers Personal Computers Utilities Water Utilities Note: Time will be allocated in class to work on this assignment. Action Items Read the Equity Analyst Project document that your professor distributed during the first week of class. 1. Go to the discussion topic, “Team Assignments” to determine which team you have been assigned to by your professor. 2. 3. Complete the Team Charter and submit a copy to the professor. Establish communication and presentation strategies. Communicate with your team on a weekly basis. a. b. Define the responsibilities for each member of the team. c. Establish deliverables and deadlines. 4. Review the Team Evaluation Form. Work as a team to analyze a select number of alternative industry groups to determine which is most likely to prosper in the next one year. 5. Select one industry group. All teams are to complete a unique analysis; as such, the team must receive approval from the professor for the selection. 6. Work as a team to write a 5- to 10-page paper providing the team’s analysis of the issues involved in the team’s selected industry group that the team concluded is most likely to prosper in the coming months and the justification of the team’s choice of that industry. Format the paper according to the Graduate Paper Guidelines. Include the names of all the members of the team on the coversheet. 7. 8. Individually, complete the Team Evaluation Form. Note: All members of the team may not receive the same grade on the paper. The professor may adjust the grade for individual students based on the results of the team evaluation scores. Submission Instructions Each member of the team is to upload the team’s paper using the Submit tool. Your professor will only grade one of the team’s papers so make sure all team members are submitting the same paper. Each member of the team is to bring the completed Team Evaluation form to class to submit to the professor. Grading Criteria Points Earned At the graduate level, the emphasis in grading is on the content, context and/or process of assignments. Points for Expected Graduate Performance Assignment Meets All Requirements Points for Superior Graduate Performance Assignment Significantly Exceeds Requirements page 2 of 3 – 12/26/2014 Analysis (75%) The data was correctly analyzed and the proper conclusions drawn. Proper references were used to support the conclusions. 63 75 Mechanics (25%) Appropriate grammar, sentence structure, and word choice were present; typographical and spelling errors were absent; correct formatting guidelines for assignment were followed. 21 25 Total 84 100 Time Estimation Estimated time for completion: 1.0 hour(s) Attachment: TeamCharter.doc;TeamEvaluation.doc;GradPaperGuidelines.doc; Discuss Topics Title: Team