Business Report

Business Report Format I

(Additional Information By Section)

Remote/External Environment (i.e. external factors which have/will affect the subject company; pertains to subject company's home country, countries in which it does/will/may operate in ('operate' means sales, distribution, procurement/sourcing, etc.), and global environment; each section below should be fully quantified).

A) Economic Factors (Discussion of the industry(s) and related issues incorporating Porter's Five Forces analysis, as they relate to competitive rivalry, product/service substitutability, power of consumers/clients, power of vendors and the potential for new entrants. Discussion should encompass competitors, their size and strengths, the bases for competition among industry participants, the bases for competition among products/services, the efficiency of sales channels, the identity of customers and their wants, needs and preferences, their sensitivity to pricing, and how customers select products/services. 'Local' economic trends - inflation, recession, deflation; economic growth trends; business activity trends; resource cost trends; employment growth trends; work force skill set trends; per capita income growth trends; per capital disposable income growth trends; foreign exchange trends should be evaluated. Also, the macro-economic factors, conditions and trends globally, and in those countries and regions the subject firm presently (or in the future) operates in. These include GDP growth, pre capita disposable income, prices and inflation, recession, trade balances and foreign exchange trends. It is critical at this stage that the nature of the product/service be determined (i.e. stated) as highly differentiated or a commodity, and why.

B) Social Factors (Discussion of how the following impact sales volumes, pricing and quality requirements: population growth trends; market size; market growth trends; social trends; trends in consumer needs and wants; consumer preference trends; consumer orientation).

C) Political Factors (Discussion of political events and change; existing laws an regulations; trends in laws and regulation, and potential for new/additional laws am regulations; trade and labor legislation; lobbying; operating cost impact; employee safety costs; litigation and legal actions initiated by third parties against industry and/or subject company).

D) Technological Factors (External only; discussion of types/categories of technologies affecting business overall, and the relevant industry(s) in particular - and the impact of the extent/degree and speed of change of the various technologies; technology transfer; growth in specific technology applications, and speed of technologies' adoption by particular industry(s) - how and where).

E) Environmental/Ecological Factors (Discussion of availability