Question: Please read the two attachements thoroughly to answers questions 1-3 in depth
1). Perform a frontier analysis of Ford, Toyota, and Tesla in 2015. Refer to Yip, Devinney, and Johnson (2009) and my PowerPoint slides on Blackboard for information on how to perform frontier analysis. You only need to do the performance frontier analysis for one year (2015). Use the following indicators to construct the performance frontier: gross profit margin, net margin, return on assets, operating cash flow ratio, sales growth, total return to shareholders, and market-to-book ratio. Be sure to combine the raw data into a table as well as rank-order companies on each indicator and sum up the rankings to calculate the best performer of the three in 2015 (the winner for the year is the firm with the lowest sum of rankings on individual performance indicators).
2). Explain the differences among the companies on every performance indicator using the concepts and theories in chapters 1-6. (In other words, take each performance indicator and explain why Company X is the leader on this indicator while Company Z is the worst performer on this indicator.) You will have to search for company information online and use their 10-K statements (which you have to use for #1 anyway). Your goal is to explain why the winner on each metric outperforms the others. Please be concise and to the point. Bullet points are OK.
3). Based on your analysis, is the performance leader likely to maintain its lead in future? If yes, why? If not, please explain. Your goal is to explain where the leader is most likely to slip. Is the leader's performance on any indicators unsustainable at the moment? Where are the rivals most likely to catch up? Please explain your answers.
Title 1: Industry frontier analysis and superior long-term performance Alex Martynov © 2017
Title 2: Measuring Long Term Superior Performanc, The UK’s Long-Term Superior Performers 1984e2003 (George S. Yip, Timothy M. Devinney and Gerry Johnson)