Company
Research Report (20% of final grade) –The
Company that I chose isMcDonald’s.
Each student will be required to
conduct extensive research on a publicly traded company and submit a written
analysis of that company.
The goal of the research report
is to help you hone your research and analytical skills. Once you have gathered
a significant body of data, you will be able to apply the strategic frameworks
you have learned, and form an opinion about the company’s performance and its
sustainability based on the evidence you found.When forming your opinion, you
could think about whether you would recommend this company as a potential
employer or a potential investment to a close friend.
You would need to find 5-10
business articles(earnings announcement does not count as an article), as well as
the company’s annual statement and proxy statement. I’d suggest Wall
Street Journal, Bloomberg Businessweek, The
Economist, Fortune, Forbes, NYTimes, and the local press if you are analyzing a
local company.
If the
company you analyze does not have the annual financial statement and proxy
posted on their website, you could find that info for any U.S. publicly traded
company on the SEC website:http://www.sec.gov/edgar/searchedgar/companysearch.html
Most
commonly the information you would need is (make sure to supplement with
independent sources from business articles, rather than relying on company’s
information only):
·
The annual financial statement (10-K filings
in SEC.gov)
·
Quarterly financial statement (if the annual one is old)
(8-K report from SEC)
·
Proxy statement (includes data on board of directors,
executive compensation, and large owners (blockholders) (Def 14a)
There are a lot of other reports that
companies have to file with the SEC, so the type of report helps identify which
one you need.
An easy way
to gauge company’s governance is to use some of the governance metrics (Plus a
lot of institutional investors use them, so looking at these could give you an
idea how institutional investors perceive the company’s governance). ISS
(Institutional Shareholder Services), GMI(governance metrics international),
and Glass Lewis rate companies on governance, but one that is free and easily available
is ISS through http://finance.yahoo.com/ – look
at your company’s profile (governance info is on right opposite the business
summary).
Grading on this component will be
approximately distributed as 50% for the depth and comprehensiveness of the
research you conducted, and 50% for the quality of your analyses and
recommendations. Please note that as an extra-credit you could choose to present
your report in an ePortoflio format, or use wordpress, Google cites or another
substitute. This may be an opportunity to showcase your work to a current or
future employer.
Your
analysis and recommendations should not exceed 5 pages;however,
there is no limit on the appendices you use to support your analyses and
recommendations. Please base your recommendations on factual information, and
include all data, tables, and figures that you used when analyzing the company.
Examples of information that could facilitate your analysis of the company and
provide factual support for your recommendations:
i)
Firm performance
– i.e. earnings, sales, ROA, P/E, stock price (feel free to add to
those) – remember to investigate firm performance both across time (try to discern
a trend) and relative to its competitors (see how well the firm does relative
to its rivals)
ii)
Market share
iii)
Vision & mission
iv)
Key resources and capabilities, VRINE Analysis
v)
Key macroenvironmental trends, PESTEL Analysis
vi)
Strategic Group Analysis
vii)
Information about competitive moves
viii)
Business Strategy
ix)
Corporate segments, Corporate Strategy
x)
Most important corporate divisions (industries
in which the company operates)
xi)
Which corporate divisions generate most
revenues/profits for the firm?
xii)
International operations, International Strategy
xiii)
Which are the most important international
markets for the firm?
xiv)
Which countries generate most revenues/profits
for the firm?
xv)
Board of directors, Independence from the CEO,
Expertise
xvi)
CEO compensation and ownership
xvii)
Large owners
xviii)
Corporate governance score
