Analyse a company


You will frequently need to research a company, whether it is a potential partner, customer, supplier or competitor. Following this methodology will ensure you cover all angles.

I Executive Summary

[Summarise the facts that are most relevant to the purpose of this analysis]

II What do they do?

  • Where do they compete?
    • Products/Services/Divisions?
    • Customers/Markets/Geographies?
    • Channels/Partners?
  • What are their key numbers?
  • What is their organisation?
    • What is their management structure? [Tool: Organisation chart]
    • What is their leadership background? [Tool: Bio on the CEO]
    • What is their culture?
    • Location of assets/offices?

III What is their strategy?

  • Does this company have enduring purpose/values?
  • What is their competitive advantage? [Tool: RPV Framework]
    • What are their core competences?
    • What advantaged assets do they control?
    • What is special about their organisation?
  • How strong is their strategic position?
    • Value Proposition compared to competitors
    • Products/Markets/Segments strategic position, growth, share etc [Tool: BCG/GE Matrix]
    • Trends in market share, top line growth
  • What is their strategic history?
    • What have been their major business development moves over the last 5 years? Were they successful? [Tool: M&A/JV/Alliance history]
    • How has their strategy changed over time? [Tool: Strategic Era Analysis]
  • What are their current Strategic Initiatives?

III What are the financials of this company?

  • Where do they make money? Portfolio by business, product, customer, channel
  • What is their historic financial performance? [Tool: 5 year margin/cash/P&L trends] 
  • What factors have driven their performance? [Tool: 5 year Profit Tree]
  • How are they generating and using their cash? [Tool: 5 year Cashflow Source and Uses]
  • Have they successfully created value? [Tool: Economic Value Added/Total Shareholder Return analysis]
  • What major events have driven their shareprice? (Annotated shareprice history)
  • How does their performance compare with their industry? [Tool: Benchmarking financial ratio analysis]
  • What is their expected future financial performance? [Tool: Analyst Reports]

IV What is  their current top management agenda?

  • What has been the most recent news over the last 12 months?
  • What are their top 5 current issues?

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