Final Project Formatting Requirements:
Minimum of 4,000 words
In past semesters, students have complained about the word count requirement. However, I used a page count requirement before, but too many students submitted projects with a lot of charts, graphs and exhibits, and little written analysis. Therefore, I moved to a word count requirement. Given all the items you need to include in this project, you will find it extremely easy to meet the word requirement.
Content Requirements:
Introduction: Brief history and introduction of each company
Business and Industry Environment: Include an analysis of the industry environment.
Include Porters Five Forces that confront both companies, and the strategies both companies have implemented to address them. Since both companies are in the same industry, the five forces they face should be the same or similar, so one combined Five Forces analysis will be fine.
Include a SWOT analysis for both companies. Even though the companies are in the same industry, their SWOT analysis should not be identical. You should have a separate SWOT analysis for each company.
Include in your project the most recent summary or condensed Common-size Income Statement and Balance Sheet for both companies:
Do not include all of the statements used in your calculations.
The financial statements cannot be counted toward the 4,000-word count.
Use the financial statements for the most recent years available.
Provide a written analysis of the Income Statements and Balance Sheets for both companies. (Compare the reports of each company, review the margins, who has lower costs, higher profit, etc. What differences or similarities do you see?)
Ratio analysis:
All corrections to your calculations and ratios must be complete before you can submit your final project!
Make sure you include the REVISED table/exhibit with your calculations and ratios that you submitted with assignment 3. It can be an exhibit added at the end of your project, or you can incorporate it into your project. Do not include the supporting documents you used for your calculations with assignment 3, only the table.
You must also include at least one exhibit that shows the RATIOS/METRICS ONLY, for both of your companies, side-by-side, including both years.
Be creative in this section. Some students will use multiple tables or exhibits or one large table or exhibit.
Although not required, some students include the industry average in their exhibits and written analysis.
Provide a written analysis/summary of each ratio and your findings. This is usually the area where students fall short because they do not conduct a deep dive analysis, to demonstrate a strong understand of the ratios. Make sure your written analysis is strong. Again, although it is not required, it helps to know the industry average when you complete your written analysis.
What similarities and differences do you see in the ratios?
What do the ratios mean?
What is the industry average?
How do your companies compare to the industry average?
What trend do you see, and why do you think the trend is occurring?
Which company is performing better with each ratio?
Wrap up your project with a strong conclusion! Based on your research, tell me which company you feel is more viable, more financially sound, and why. Are there any trends or current issues that are concerning to you or promising to you? Which company would you invest in or provide a loan to?
