Extent to which client's industry was accurately defined and developed, i.e. size, growth rate, profitability, key competitors, etc.
The client is Innovation Facilities Group
NAICS codes that need to be based round is
221114 Solar Electric Power Generation 2
21115 Wind Electric Power Generation
221118 Other Electric Power Generation
221122 Electric Power Distribution
237130 Power and Communication Line & Related Structures Contr.
238210 Electrical Contractors and Other Wiring Installation Contr.
238220 Plumbing, Heating, & Air Contr.
238290 Other Building Equipment Contr. 238210 Electrical /Wiring Installation
423120 Motor Vehicle Supplies and New Parts Merchant Wholesalers
- Based on NAICS codes, what is the industry size, and what has been its growth over the past 5 years (provide CAGR estimates). If your firm is unusual in size, relative to the industry, you may want to do two CAGS: one for the overall industry, and one for the industry segment where your firms resides. You may find, for example, that the overall industry is flat growth, but your firm’s segment is growing healthy: explaining why will greatly strengthen your analysis.
- What is the industry level of concentration (Herfindahl index). Is the industry expanding or consolidating?
- Are any changes currently taking place in the macro environment that might have a positive or negative impact on the industry in which your company is based? Apply the PEST/PESTEL/PESTDG framework to identify which factors may be the most important in this industry. What will be the effect on your client’s industry?
a. Prepare a PESTDG (6) chart, then write 1 paragraph (one for each dimension, plus one overall summary) discussing each in greater detail. - Apply the 5 forces model to your industry. What does this model tell you about the nature of competition in the industry? Including a diagram is helping but a good paragraph on each of the five individual forces is the minimum to include.
a. You should prepare a diagram, coloring it red/yellow/green (high/medium/low) pressures for each force. You should also prepare a good paragraph on each of the five individual forces, plus a paragraph assessing the overall profitability of the industry. Your answer should state and then defend why this is/(is not) a profitable industry. - How dynamic is the industry in which your company is based? (dynamic is sometimes called malleable, especially in the “your strategy needs a strategy article). Is there evidence that industry structure is reshaping competition, or has done so in the recent past? Are there “big threats lurking” from potential changes to the industry?
- What does the value added chain look like for the industry? Obviously it isn’t the same for every firm but in general, you should be able to see what are the common inputs and outputs for firms. One thing you are looking for here are current outsourcing efforts. What are the crucial inputs? When you think about BPOS, where are they in the value added chain? How much intermediation or dis-intermediation is occurring.