INDUSTRY EVALUATION
TITLE
INTRODUCTION
DISCUSSION OF THE PROSPECTS FOR THE ECONOMY
Growth Prospects
Availability and Cost of Capital Funds
Effect of the Foreign Sector
DISCUSSION OF THE PROSPECTS FOR THE INDUSTRY
Brief History of the Industry
Structural Characteristics of the Industry
Growth and Growth Prospects of the Industry
Capital Requirements of the Industry
Cost Factors Within the Industry
Profitability of the Industry
Effect of Governmental Regulation on the Industry
SUMMARY
An Examination of Some of the Topic Areas in the Industry Evaluation
Growth and Growth Prospects of the Industry
(1) What are the demand/supply conditions faced by the industry?
Movements along the demand curve: Stable (inelastic) or volatile (elastic)?
Shifts in the demand curve: What effect will changes in income, tastes or prices of substitute products have on the demand curve?
Movements along the supply curve: Increasing, constant or decreasing costs? (This can be determined by observing the usage rate of capacity.)
Shifts in the supply curve: What effect will changes in factor prices and technology have on the supply curve? How can capacity be increased? (in small amounts or in large chunks?).
Profitability of the Industry
(1) What is the effect of demand/supply conditions on margin and turnover?