COMPANY ANALYSIS:
The objective of company analysis is to find competitively well placed companies within a given industry. The companies are likely to perform better than their peers in that industry. The process will consist of the following steps.
a. Analysis of Management: To determine whether the companies are well managed and the management is trust worthy. [e.g. Infosys V/s Satyam]
b. Analysis of Competitive strategies of the Company: To determine whether the competitive strategies being followed by the company is appropriate given its strength and organizational resource. [e.g. Coco Cola V/s Pepsi Ltd.]
c. Analysis of company with respect to the key success factor for the industry:
[e.g. facebook]
d. Financial analysis: Financial analysis is a process of selecting and evaluating financial statement. It is the process of methodical classification, comparison and analysing pertinent company. The important tool for company analysis are ratio analysis, trend analysis, fund flow / cash flow analysis, Common size / comparative analysis etc.
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