Introduction to company analysis
Company analysis
Company analysis is a process carried out by investors to evaluate securities, collecting info related to the company’s profile, products and services as well as profitability. It is also referred as ‘fundamental analysis.’ A company analysis incorporates basic info about the company, like the mission statement and apparition and the goals and values. During the process of company analysis, an investor also considers the company’s history, focusing on events which have contributed in shaping the company.
Also, a company analysis looks into the goods and services proffered by the company. If the company is involved in manufacturing activities, the analysis studies the products produced by the company and also analyzes the demand and quality of these products. Conversely, if it is a service business, the investor studies the services put forward.
How to do a company analysis
It is essential for a company analysis to be comprehensive to obtain strategic insight. Being a thorough evaluation of an organization, the company analysis provides insight to rationalize processes and make revenue potentials better.
The process of conducting a company analysis involves the following steps:
- The primary step is to determine the type of analysis which would work best for your company.
- Research well about the methods for analysis. In order to perform a company analysis, it is important to understand the expected outcome for doing so. The analysis should provide answer about what is done right and wrong on the basis of a thorough evaluation. It is, therefore, important6 to make the right choice for the analysis methods.
- The next step involves implementing the selected method for conducting the financial analysis. It is important for the analysis to include internal and external factors affecting the business.
- As a next step, all the major findings should be supported by use of statistics.
- The final step involves reviewing the results. The weaknesses are then attempted to be corrected. The company analysis is used in concluding issues and determining the possible solutions. The company analysis is conducted to provide a picture of the company at a specific time, thus providing the best way of enhancing a company, internally as well as externally.
Challenge
If you’re looking for the rest of the steps in the SWOT analysis series, find them here:
- Step 1: Strengths
- Step 2: Weaknesses
- Step 3: Opportunities
- Step 4: Threats
- Step 5: Actionable strategies
A good entrepreneur is always on the hunt for new opportunities. One of the best ways to identify opportunities within your business is to complete a SWOT analysis. The acronym SWOT stands for strengths, weaknesses, opportunities, and threats.
In step one, you identified business strengths. In step two, you evaluated your weaknesses, and now you’re ready to consider your opportunities. Think of opportunities as things that are external to your company. Strengths, on the other hand, are internal, or existing aspects of your business.
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The best time to conduct a SWOT analysis
Before we walk through today’s SWOT brainstorming exercise, we thought we’d take a second and talk about when you should do an opportunities analysis.
In some ways, opportunities analysis might seem like the easiest element of a SWOT matrix to complete, especially if you’re the type that enjoys entertaining the possibilities. But you’re missing out if you only ever look at your strengths and opportunities. Assessing your weaknesses and threats at the same time is guaranteed to give you some interesting and valuable insight.
A business professor will tell you it’s always a good time to conduct a SWOT analysis. Any time you can take to critically look at your business and see how it’s performing is a good thing. However, there are strategic times when a SWOT analysis is most beneficial.
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Ideal times to conduct a SWOT analysis:
- At the beginning of the year: As a new year begins, it’s a natural time to review the past year’s business strategy and look ahead. By conducting an analysis at the beginning of a new year, you’ll be ready to make decisions in the coming months.
- Annually: Just like you should visit the doctor annually, your SWOT analysis should get a check-up at least once a year too. You’ll be amazed how much can change within a year.
- When a shift occurs: If something big is changing in your business, it’s time to fill out a new SWOT matrix. Maybe you just took on a big client and plan to increase your revenue, or maybe the political support that you once had is shifting. Maybe you’ve been comparing your sales forecast to your actuals, and you’re not sure exactly what to adjust—but you know you need to do something. When a noticeable change like this happens, it’s always a good idea to re-evaluate where your business stands.
- If you haven’t launched yet: If you’re planning to start a business, conducting a SWOT report is a great way to check the viability of your idea and your proposed strategic plan.
How to define your company’s opportunities
Here are a few categories to consider when looking for business opportunities:
- Economic trends: Look at the economy in your area.
- Market trends: Your target market could be driving new trends that could open doors for your business.
- Funding or cash flow changes: Think about that new big fish customer, or maybe you’ve received a business loan or some outside investment.
- Political support: Consider changes in political ties.
- Government regulations: Think of regulations that are changing that might afford you new opportunities.
- Changing relationships: Consider shifting relationships with vendors, partners, or suppliers.
- Target audience shift: Your target market might be expanding, aging, or shifting.
Questions to ask to find opportunities
To help you brainstorm possibly opportunities, we’ve created a list of questions to help. The questions are broken up by the categories that we just went over. If a question doesn’t apply to your business, simply move on to the next.
Economic trends:
- Is the economy in your area looking up?
- Will the economy enable your audience to make more purchases?
- Are economic shifts happening that impact your target audience?
- Is the price of sourcing materials going down?
Market trends:
- How is your market changing?
- What new trends could your company take advantage of?
- What kind of timeframe surrounds these new trends? Could it be a long-term opportunity?
Funding changes:
- Do you expect an increase in grant funding or donations this year (if you’re a nonprofit)?
- Did you land a new contract (assured new income)?
- Did you secure a loan or investment funding?
- How will funding changes help your business?
Political support:
- Do you anticipate a shift in political support this year?
- What opportunities could be created with new political partnerships?
Government regulations
- Are any regulations shifting that could lead to a positive change?
Changing relationships:
- Are there positive changes happening within any of your outside business relationships?
- Are vendors changing or expanding?
- Has your partner decided to move on, creating an opportunity to work with someone new?
Target audience shift:
- How is your demographic shifting?
- What opportunities can you think of that can move with these changing demographics?
- Is your audience expanding? If so, how can you capitalize on this increase?
- Is there a related product or service that you could launch that allows you to gain a new market share?
Solution
The biggest challenge was that Arguzo was not utilizing technology properly. Too much of the work was still being recorded manually, which meant that the numbers took a long time to note down and then to be analyzed. Live data was also not available and decisions can only be made after all the required data and been received. This was holding Arguzo back; they knew they could corner more of the market if they had the ability to be more mobile. The work addressed three critical issues for Pharm Ltd.:
- Improve sales and operations and production planning:
The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.
- Optimize the supply chain for perfect order planning:
The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.
- Determine the right inventory level:
The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.
- Optimize the supply chain for perfect order planning:
The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.
The biggest challenge was that Arguzo was not utilizing technology properly. Too much of the work was still being recorded manually, which meant that the numbers took a long time to note down and then to be analyzed. Live data was also not available and decisions can only be made after all the required data and been received. This was holding Arguzo back; they knew they could corner more of the market if they had the ability to be more mobile. The work addressed three critical issues for Pharm Ltd.:
Result
The biggest challenge was that Arguzo was not utilizing technology properly. Too much of the work was still being recorded manually, which meant that the numbers took a long time to note down and then to be analyzed. Live data was also not available and decisions can only be made after all the required data and been received. This was holding Arguzo back; they knew they could corner more of the market if they had the ability to be more mobile. The work addressed three critical issues for Pharm Ltd.:
- Improve sales and operations and production planning:
The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.
- Optimize the supply chain for perfect order planning:
The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.
- Determine the right inventory level:
The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.
- Optimize the supply chain for perfect order planning:
The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.
The biggest challenge was that Arguzo was not utilizing technology properly. Too much of the work was still being recorded manually, which meant that the numbers took a long time to note down and then to be analyzed. Live data was also not available and decisions can only be made after all the required data and been received. This was holding Arguzo back; they knew they could corner more of the market if they had the ability to be more mobile. The work addressed three critical issues for Pharm Ltd.: