My today Paper FIN630 (10:30AM)
What is the purpose of Industry analysis (Marks 5)
Industry analysis is a vital part of the decision-making process in business. Most corporations, venture capitalists, entrepreneurs and investors do not make any decisions without conducting an industry study. Industry analysis requires decision makers to understand the economy and the industry before taking key decisions. The knowledge of economy and industry improves the quality of business decisions. It enables decision makers to put business issues in perspective.
Industry analysis is a vital part of the decision-making process in business. Most corporations, venture capitalists, entrepreneurs and investors do not make any decisions without conducting an industry study. Industry analysis requires decision makers to understand the economy and the industry before taking key decisions. The knowledge of economy and industry improves the quality of business decisions. It enables decision makers to put business issues in perspective.
Industry analysis also helps investors take better decisions. Governments worldwide are also finding industry analysis useful in assessing the effectiveness of their policies and formulating pro-growth policies. Industry analysis also helps entrepreneurs to iron out the wrinkles in their business plans.
In short, the purpose of the general industry analysis is to provide an understanding of the industry. Equity analysts, for instance, periodically come out with industry reports, which help their clients put stock-specific recommendations in the proper context.
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