Forming Teams No more than 4 people on a team. Diversify on majors. Match with desired grade. Match with desired industry.

Industry Project How to select a firm & industry: No magic here. What interests you and/or your team? Interest is important so that the work will aid in your present job, or your quest for another field. Also, by the end of the projects you will hate the industry and firm. So, start off on a positive note. Remember that this is an applied course!

Industry Project Finding 10 year total returns to investors Follow this link: You will see a screen similar to this:

You can scroll down until you find an industry that is of interest. Let’s say you want to do the airline industry. Simply click on ‘Airlines’ and you will get a screen like this: From here you click on ‘EPS, Total return, Employees’ and you will get this: No voice file

As is fairly obvious, the industry has not done well over the last ten years based on total returns. However, it is trends that matter. Overall, the best performer has been Southwest. The question then becomes, why could not the other firms do as well? There is sufficient information here to make a choice of industry, poorly performing firm, and better performing firm. No voice file

Industry Project Selection of Industry: This begins with your poorly performing firm. What are your firm’s NAICS or SIC codes? What is primary source of revenue?

Industry Project Beginning in 1997, the Standard Industrial Classification (SIC) was replaced by the North American Industry Classification System (NAICS). This six digit code is a major revision that not only provides for newer industries, but also reorganizes the categories on a production/process-oriented basis. This new, uniform, industry-wide classification system has been designed as the index for statistical reporting of all economic activities of the U.S., Canada, and Mexico. Still, most people refer to the old SIC system. No voice file. Just stuff for your info

Industry Project Collecting Data Start with Mergent online Then switch to Standard & Poor’s Here is an example using Merck

NOTE: They have changed the interface, but the methodology is the same.

Industry Project Outline Introduction A. Description B. Segments C. Caveats (No longer required)