Managerial Economics

Sector Analysis - Guidelines

Group Presentation:10 Marks
1.Sector Information

Introduction of the sector

Introduction of all players in the
sector
Regulators of the sector
Market structure of the sector
2. Comparative Analysis
Comparative analysis of all the companies (allocated
to the individual members) in the sector, on the basis
of last two years data for the following indicators;
Sales Turnover
Net Profit Graphical comparison will
Total Assets be much appreciated.

Total Liabilities
Percentage Change in Profit
Market Share
Current Market Capitalization and
Stock Performance
3. Demand Estimation and Forecasting: Trend Line and
Regression for the Given Sector

Objective : Find out Trend line for Average Sales

Turnover of six or more than six companies in the
sector for last 10 years period.

Model: Average Sales Turnover (Y) = f ( Year(X) )

Average Sales Turnover(Y) = Dependent Variable
Year(X) = Independent Variable

Calculate or estimate and .

Interpret and .
Forecast Sales Turnover for 2018 and 2019.
3.Demand Estimation and Forecasting: Trend Line and
Regression for the Given Sector

Sales Turnover of the Companies Average

Year(X) Sales
in the sector Turnover (Y)
Company 1 Company 2 Company 3 Company 4 Company 5 Company 6

2008
2009
2010
2011
2012
Average Sales Turnover = (Total Sales of company 1 to 6)/6
2013
2014
2015
2016
2017
4. Forecasting: Moving Average 2,3
& 4 year

Objective : Find out Also compare the

forecasts value of reliability of the
Average Sales Turnover three(2,3 & 4 year)
of all the companies in
forecasts by using
the given group for 11th
year(2018) by using 2,3 Root Mean Squared
& 4 year moving average Error (RMSE)
method. criterion.
5. Current Trend & Development

Current trend or major development in the sector like;

Domestic economic Growth rate of the

condition sector
International condition Private investment
Production of output or FDI
services Budgetary provision
Price index of output or Outsourcing
services Alliances and
Contribution to GDP Merger and
Employment generation acquisitions,etc.
6. Future trends ,strategies and announcement
Find out future trends and prospectus in the
sector.
7. Conclusion
On basis of above analysis, conclude about the
sector.
8. Learning
9. References
Kindly mention the sources you will use in this
analysis.