Business Analysis Report

Introduction

The main aim of this module is to enable students to research and write-up a study in the form of a business analysis report. The study will comprise a comparative appraisal of the financial position, performance, cash flows, and valuation of two companies in the same sector. The appraisal includes a SWOT Analysis for each of the two companies. The principal sources used will be the published Annual Reports of the two companies and will include horizontal and vertical analysis, trend analysis and ratio analysis, with reference also to market forecasts and corporate valuation. Analytical skills will be included in the material on Study Direct as part of this module to complement the skills acquired during the module 941N1 (Accounting for Decision Makers in Management and Finance). As part of your report, you will critically survey the literature and online resources, and employ this knowledge to guide you in drawing conclusions regarding the financial position, performance, cash flows, and valuation of comparable firms and their respective strengths, weaknesses, opportunities and threats.

Learning Outcomes

1. Demonstrate a critical awareness of business analysis and critically appraise and evaluate research problems in the field.

2. Critically survey and analyse relevant theories, models and evidence and examine their explanatory contribution with respect to the cases under investigation.

3. Select appropriate financial and business data, and generate a robust financial statement analysis of competing firms in order to account for market values and/or market forecasts.

4. Effectively plan, organise and self-manage the research project.

Criteria for selection of companies

The study shall focus on comparing one listed company with another listed company in the same sector. It must be a multi-year comparative study and must include financial analysis, financial valuation and SWOT analysis of the two companies.

You will need to select a primary company for analysis which meets the following conditions:

- Financial statements are published in English
- Financial statements are published under International Accounting Standards
- The company is listed on the stock exchange of a country in the European Union, including the United Kingdom.

Your choice of primary and secondary company must be discussed with and approved by your supervisor (you may do this by email).

Primary company: BHP Billiton Plc
Second company: Glencore
Sector: Energy

Word Count (8500)

1. Introduction 1000 words
Some background on the report-about 200 words
1. A brief explanation on the industry under analysis- Energy Sector ..200 words
1.2 Introduction (BHP Billiton Plc AND Glencore .. ..500 words
Overview of the two firms under analysis (Products sold, company history, regions that the firms operate). Moreover; brief information on the financial performance of the firm in the recently as well as recent developments such as mergers and acquisitions.
1.2.1 BHP Billiton Plc-250 words
1.2.2 Glencore-250 words

1.3 Aim of the study.. 100 words
Explanation of the aim or objectives of undertaking and preparing the business report
- To conduct a SWOT analysis of BHP Billiton Plc AND Glencore Plc
- To conduct a Financial analysis of BHP Billiton Plc AND Glencore Plc
- To conduct a valuation of BHP Billiton Plc AND Glencore Plc

2. Literature Review.. 2000 words
2.1 Introduction 100 words
Provide a brief overview of the contents of the literature review. For example financial analysis, porter five forces, PESTEL analysis, Industrial analysis, SWOT analysis
2.2 SWOT Analysis 400 words
Review of literature on SWOT Framework
2.3 Financial analysis 500 words-
Review of literature on financial analysis techniques i.e vertical analysis, trend analysis, horizontal analysis and ratio analysis
2.4 Financial valuation.. 400 words
2.4 Industry analysis using porter five forces- Energy Sector 600 words
Review of literature on porter five forces with a focus on the energy sector

3. Analysis of BHP Billiton Plc and Glencore Plc
3.1SWOT analysis
3.1.1 BHP Billiton Plc SWOT analysis 500 words
3.1.2 Glencore Plc SWOT analysis 500 words
3.2 Financial Analysis
3.2.1 Horizontal analysis (BHP Billiton Plc and Glencore Plc)-600 words
3.2.2 Vertical analysis-( BHP Billiton Plc and Glencore Plc)- 600 words
3.2.3 Ratio analysis - -( BHP Billiton Plc and Glencore Plc)- 600 words

4. Market forecasts and corporate Valuation ( BHP Billiton Plc and Glencore Plc)- 600 words
Using the asset approach, income approach and market approach

5. Discussion -1200 words
Discussion of findings
5.1 SWOT analysis -400 words
5.2 Financial analysis -400 words
5.3. Market forecasts and corporate Valuation- 400 words

6. Recommendations and Conclusion.. 900 words
6.1 Conclusion -400 words
6.2 Recommendations -300 words
To creditors, investors, lenders and debtors as well as shareholders
6.3 Limitations of the report -200 words