1. Market Sizing, Financial Analysis, and the UC B&E Library Resources Special Topics Lecture BA 5080 Fall Semester, 2012-2013

2. Presentation Outline 1.Market Sizing 1.Defining a market niche 2.Finding “hard” data 3.Making assumptions 2.Financial Analysis 1.Why it’s important 2.How to calculate ratios 3.UC B&E Library Resources 1.Overview 2.Edgar & Hoover’s 3.Analyst report databases 4.News reports, books, & journal articles 5.Market sizing data

3. Market Sizing – Defining a Market Niche Geographic scope Target customer profile –Title/description –Revenues –Spending –Wants/needs

4. Market Sizing – Finding “hard” data Macro-level economic data is rarely exactly what you want – take what you can get Look for common demographic categories which are close to what you are looking for Remember to adjust the macro-level data in your assumptions

5. Market Sizing – Making Assumptions Assumptions based on “hard” data Assumptions based on anecdotal evidence Arbitrary assumptions based on “educated guesses”

6. Financial Analysis – Why It’s Important Profitability Measures –Important for understanding a company’s business model Liquidity Measures –Important for understanding a company’s ability to pay its bills Leverage Measures –Important for understanding a company’s actual “hard” value Activity Measures –Important for understanding when & how cash and products flow in/out of a company Other Measures –Important for understanding a company’s attractiveness for investors, its inner workings, and deals and accounting practices which impact the company structurally

7. Financial Analysis – How to Calculate Ratios See “Guide to Case Analysis”, pp. 4-6.

8. B&E Library Resources - Overview One of the top 10 Business & Economics libraries in the USA The main databases we are using in class are widely available to many of the companies you may end up working for Learning to navigate these databases quickly to find, “cherry pick”, and present value-added information is a skill set which is in demand by a wide variety of employers Listing this skill set on your resume, with the distinction of having acquired it by using UC’s B&E library, will differentiate you from other job candidates The more you surf around ALL the resources in UC’s B&E library, the more you will actually be able to “back up” this differentiation by recommending appropriate resources to your employer which are only available through UC B&E library

9. B&E Library Resources Edgar & Hoover’s Databases which are the starting points for any kind of market research Edgar gives you all the information you need to calculate financial ratios on companies Hoover’s gives you a standardized platform to use as a starting point for understanding the industry environment of a company

10. B&E Library Resources Analyst Report Databases Databases which give you lots of value-added information from which to “cherry pick” Investext (Thomson One): Search on company, click on “Research” tab Datamonitor 360: Search on company, click on “Industries” tab, expand “Industries” list, choose most relevant industry IBISWorld: Search on NAICS code (2007), choose most relevant industry Mergent Industry Reports: Search on company, click on “Reports” tab, then “Industry Reports” tab, choose most relevant industry

11. B&E Library Resources News, Book, & Journal Searches Search tools which allow you to scan vast selections of news reports, books, and journal articles for specific “nuggets” of information Factiva allows you to search news reports (make sure to use the “search form” screen) Summon, UC’s library search engine, allows you to search books and journal articles (make sure to use the “advanced search” screen)

12. B&E Library Resources Market Sizing Data The UC B&E Library has a WIDE array of resources useful for finding “hard” data upon which to base market sizing estimates The “One Stop Business Research” page gives you a good overview of these resources, organized in useful categories Two good categories to start with are “Economic Data (US)” and Economic Data (World)”