Company and industry analysis
You are to provide a brief analysis of your company(the company is Air Products & Chemicals.lnc, APD) and the industry in which it operates. Your discussion should address the following:
• Company Analysis. Briefly analyze your company from the standpoint of major products/services, lines of business, geographic presence, growth and profitability. What does your company do, i.e. what are your company’s major products or services’? What is the dollar and percentage sales and/or profit breakdown of your company by reported business segments? If your company has significant intemational operations, what is the dollar and percentage breakdown of sales and/or profits by reported geographic region? (Tables would be a very appropriate way of presenting segment/regional breakdown info, and may be taken from original sources with appropriate citation.) Have sales and profits been growing, shrinking or stagnant over the past two years? What are the main reasons for these trends?
• Industry Analysis. If your company operates in more than one major industry, then identify and describe the one industry that contributes the greatest share of company revenue and/or earnings (document this) and focus on it. Briefly describe the industry in terms of product, market, etc. Specifically address the following questions: Is the industry defensive or cyclical as we discussed in class, and why (i.e. what industry characteristics make it so)? Is its market growing or mature? Is its market fragmented (i.e. all companies have relatively small market shares) or concentrated (i.e. one or more companies have large market shares). Address any other issues that you deem relevant. Possibilities include: Is new competition entering, or is there a shakeout of competitors occurring? Are there barriers to entry in terms of technology, capital investment, etc? Document your analysis with relevant data/facts.
– What are two or three major current trends/developments affecting the industry? These can include demand trends, trends in input costs (for example, cotton prices for an apparel manufacturer), or regulatory developments. I am looking here for industry-specific trends (the economy is not an industry trend). Also, don’t confuse seasonal patterns (for example, the tendency of retailers to eam most of their profits during the holiday season) or cyclical (economic) trends with industry trends. Why are these trends important? Are they short-term or long-term trends? Don’t just pick out the first
two or three that you see, choose what’s important and tell me why!