Fundamentals of analyses of processes

Harvard Case Studies. In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations.

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case.

In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case. To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Process Fundamentals and the management of information is needed to be provided.

However, introduction should not be longer than lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined.

FBPM-1.3.: Fundamentals of Business Process Management (BPM) - Origins and History of BPM

However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing.

In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization.Fundamental analysis is the process of looking at a business at the most basic or fundamental financial level. Fundamental analysis can also give you an idea of the value of what a company's stock could be expected to trade for based on a comparative appraisal of similar companies.

The analysis should take several factors into account, including revenue, asset managementand the production of a business, as well as the interest rate. Many investors use strictly fundamental factors in their analysis of a company and its share price, but others have found that they can develop a more robust model of valuation and price expectation using a combination both fundamental and technical factors, such as relative price strength or market sentiment.

The goal is to determine whether the current price of the stock reflects a value that is different from what the fundamental factors and prevailing market sentiment might suggest. If such a difference is found, then perhaps an investment opportunity exists. Even if you don't plan to do an in-depth fundamental analysis yourself, understanding the key ratios and terms can help you follow stocks more closely and accurately.

Investors should consider a wide range of data, but the first data point they're likely to look for is the company's earnings. That figure is the quickest way to cut to the heart of a key investing question: How much money is the company making, and how much is it likely to make in the future? In other words, earnings are profits. They can be complicated to calculate, but that's what buying a company is all about. Conveniently for investors, companies report earnings every quarter.

When a company reports that earnings are on the rise, that generally leads to a higher stock price and, in some cases, a larger dividend or the introduction of a dividend, if one doesn't already exist. Although earnings are important, they don't tell you much by themselves.

On their own, earnings don't identify how the market values the stock. You can find most of these ratios completed for you on finance-related websites, but they aren't difficult to calculate on your own. If you want to wade in for yourself, keep in mind that some of the most popular tools of fundamental analysis focus on earnings, growth, and value in the market. Remember, these numbers are just tools, and no single ratio or number is a magic bullet. They can't give you buy or sell recommendations by themselves.

They must be weighed in tandem with other considerations and ratios. What these numbers can do, as you begin to develop a picture of what you want in an investment, is serve as benchmarks to measure and compare the worths of companies. Kentucky Retirement Systems. Securities and Exchange Commission.Fundamental analysis FA is a method of measuring a security's intrinsic value by examining related economic and financial factors.

Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy and industry conditions to microeconomic factors like the effectiveness of the company's management. The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued. This method of stock analysis is considered to be in contrast to technical analysis, which forecasts the direction of prices through an analysis of historical market data such as price and volume.

All stock analysis tries to determine whether a security is correctly valued within the broader market. Fundamental analysis is usually done from a macro to micro perspective in order to identify securities that are not correctly priced by the market.

Analysts typically study, in order, the overall state of the economy and then the strength of the specific industry before concentrating on individual company performance to arrive at a fair market value for the stock.

Fundamental analysis uses public data to evaluate the value of a stock or any other type of security. For example, an investor can perform fundamental analysis on a bond's value by looking at economic factors such as interest rates and the overall state of the economy, then studying information about the bond issuer, such as potential changes in its credit rating.

For stocks, fundamental analysis uses revenues, earnings, future growth, return on equityprofit margins, and other data to determine a company's underlying value and potential for future growth. All of this data is available in a company's financial statements more on that below. Fundamental analysis is used most often for stocks, but it is useful for evaluating any security, from a bond to a derivative.

If you consider the fundamentals, from the broader economy to the company details, you are doing fundamental analysis. An analyst works to create a model for determining the estimated value of a company's share price based on publicly available data.

This value is only an estimate, the analyst's educated opinion, of what the company's share price should be worth compared to the currently trading market price. Some analysts may refer to their estimated price as the company's intrinsic value. If an analyst calculates that the stock's value should be significantly higher than the stock's current market price, they may publish a buy or overweight rating for the stock.

This acts as a recommendation to investors who follow that analyst. If the analyst calculates a lower intrinsic value than the current market price, the stock is considered overvalued and a sell or underweight recommendation is issued. Investors who follow these recommendations will expect that they can buy stocks with favorable recommendations because such stocks should have a higher probability of rising over time.

Likewise stocks with unfavorable ratings are expected to have a higher probability of falling in price. Such stocks are candidates for being removed from existing portfolios or added as "short" positions.Fundamentals of Industrial Catalytic Processes. Book reviews activity testing, while providing a mathematical basis for key concepts. This includes a discussion on analysis of integral and differen Download PDF.

Recommend Documents. New industrial catalytic processes. The fundamentals of industrial redevelopment.

A review of industrial catalytic wet air oxidation processes. Fundamentals of analyses of processes. Fundamentals of soiling processes on photovoltaic modules. Management of Industrial Processes. Industrial Catalytic Cracking. Chemistry of catalytic processes. Photogrammetry, vol. Fundamentals and standard processes.

Synthetic membrane processes. Fundamentals and water applications. Biological hydrogen production; fundamentals and limiting processes. This includes a discussion on analysis of integral and differential rate data again with examples from which they calculate rate expressions.

They also include a section on choosing reactors in the laboratory and plant. Much of this information is useful to practicing scientists and engineers in applying catalytic concepts to real world problems. The second part of the book focuses on specific major processes which use catalysts. Perhaps, instead of just launching into key selective processes in catalysis, an overview might have been provided of the multitude of very different processes used in catalysis from which they would then focus on the topics they selected.

The chapter on H2 production and synthesis gas reactions provides introductory material into the production of H2syngas, ammonia, methanol and Fischer—Tropsch chemistries. There could have been more material added with regard to explaining the differences which affect the process selection for the production of ammonia versus the synthesis of H2 or syngas. No mention is made of recent advances with regard to hydrogen purification by PSA or the application of pre-reforming as a process step in the production of H2.

They do include discussion of the new ruthenium based catalyst for ammonia synthesis as opposed to more traditional iron-based catalysts.

In the chapter on hydrogenation and dehydrogenation, the authors try to provide a basic overview of this vast area of catalysis.

fundamentals of analyses of processes

To their credit, they provide many specific references to articles which deal with individual hydrogenation processes in greater detail for readers seeking to gain more detail.Definition: Fundamental analysis is the process of looking at the basic or fundamental financial level of a business, especially sales, earnings, growth potential, assets, debt, management, products, and competition. This type of analysis examines key ratios of a business to determine its financial health and gives you an idea of the value its stock.

Many investors use fundamental analysis alone or in combination with other tools to evaluate stocks for investment purposes. The goal is to determine the current worth and, more importantly, how the market values the stock. It starts with the overall economy and then works down from industry groups to specific companies. As part of the analysis process, it is important to remember that all information is relative. Industry groups are compared against other industry groups and companies against other companies.

It is important that companies are compared with others in the same group. First and foremost in a top-down approach would be an overall evaluation of the general economy. When the economy expands, most industry groups and companies benefit and grow. When the economy declines, most sectors and companies usually suffer. Once a scenario for the overall economy has been developed, an investor can break down the economy into its various industry groups.

If the prognosis is for an expanding economy, then certain groups are likely to benefit more than others. An investor can narrow the field to those groups that are best suited to benefit from the current or future economic environment.

If most companies are expected to benefit from an expansion, then risk in equities would be relatively low and an aggressive growth-oriented strategy might be advisable.

fundamentals of analyses of processes

A growth strategy might involve the purchase of technology, biotech, semiconductor and cyclical stocks. If the economy is forecast to contract, an investor may opt for a more conservative strategy and seek out stable income-oriented companies. A defensive strategy might involve the purchase of consumer staples, utilities and energy-related stocks.

While the individual company is still important, its industry group is likely to exert just as much, or more, influence on the stock price. When stocks move, they usually move as groups. Once the industry group is chosen, an investor would need to narrow the list of companies before proceeding to a more detailed analysis. Investors are usually interested in finding the leaders and the innovators within a group. The first task is to identify the current business and competitive environment within a group as well as the future trends.

How do the companies rank according to market share, product position and competitive advantage? Who is the current leader and how will changes within the sector affect the current balance of power? What are the barriers to entry? Success depends on an edge, be it marketing, technology, market share or innovation.

A comparative analysis of the competition within a sector will help identify those companies with an edge, and those most likely to keep it. At point you will have a shortlist of companies and the final step to this analysis process would be to take apart the financial statements and come up with a means of valuation. Some of the more popular ratios are found by dividing the stock price by a key value driver. These are the most popular tools of fundamental analysis. They focus on earnings, growth, and value in the market.

For convenience, I have broken them into separate articles. Each article discusses related ratios. However, before you dive too deep into it, you might want to read this Motley Fool Review to find out how they pick stocks based on company fundamentals. The articles are: 1. Earnings per Share — EPS 2. Dividends 7. Return on Equity.Here, the rather circular definition, "A spatial process is a description of how a spatial pattern might be generated" is offered.

This emphasizes how closely interrelated the concepts of pattern and process are in spatial analysis. In spatial analysis, you don't get patterns without processes. This is not as odd a definition as it may sound. In fact, it's a fairly normal reaction when we see a pattern of some sort, to guess at the process that produced it. The important point is that many processes have associated with them very distinct types of pattern. In classical spatial analysis, we make use of the connection between processes and patterns to ask the statistical question, "Could the observed map pattern have been generated by some hypothesized process some process we are interested in?

This section is intended to show you that for at least one very simple process a completely random processit is possible to make some precise mathematical statements about the patterns we would expect to observe. This is especially important because human beings tend to have a predisposition to see non-random patterns, even if there is no pattern. It is more important to grasp the general point here than the particulars of the mathematics.

We postulate a general process, develop a mathematical description for it, and then use some probability theory to make predictions about the patterns that would be generated by that process.

Perhaps not so obvious is this: complete spatial randomness i. In terms of the point processes discussed above, there is no reason to expect any overall spatial trend in the density of point events a first-order effectnor is there any reason to expect local clustering of point events a second-order effect. This follows directly from the definition of the process: events occur with equal probability anywhere no trendand they have no effect on one another no interaction.

These pages discuss the application of the basic concept of a random spatial process to other types of spatial object than points. In every case, the idea is the same. Lines or areas or field values are randomly generated with equal probability of occurring anywhere, and with no effect on one another.

fundamentals of analyses of processes

Perhaps the most important point to note here is how much more complex the mathematics becomes as we consider lines and areas, simply because lines and areas are more complex things than points!

DO: Now it is your turn to explore spatial processes. To do so, we have developed a small interactive application using Shiny in R that applies different mathematical equations and methods that simulate first- and second-order processes.

Skip to main content. Stochastic processes in lines, areas, and fields These pages discuss the application of the basic concept of a random spatial process to other types of spatial object than points.Investing in stocks becomes more and more accessible every day because of the technological progress we witness on a daily basis. Approach every stock trade with due diligence.

Your analysis is what helps you decide whether a stock is a good investment or not. There are 2 types of analysis related to stock trading — technical analysis and fundamental analysis. Fundamental analysis is the process of evaluating security for creating forecasts about its future price.

Fundamental analysis includes estimations based on many components related to stock, including:. If some fundamental indicators of a company show data that has a bad impact, this is likely to negatively reflect the share price.

Here are some examples of key performance indices that are commonly used to analyze stocks fundamentally:. Each of these key performance indices gives information that is helpful for conducting a price analysis.

How to conduct fundamental analysis?

You can buy the stock on the assumption that the price will increase if your analysis shows that the price of the stock is about to increase. The same information in different industries and different stocks will never mean the exact same thing. Here are a few of the most important fundamental indicators. The higher the earnings per share, the better it is for the investor. A higher EPS is a symbol of a healthy company. At the same time, if the earnings per share are unusually high, this could mean one of the following things:.

This might mean that the stock is undervalued in price and it can increase its price. The price-to-book ratio is an indication that shows how much the stock worth compared to the book value of the company. This could be a common parameter for the growth stocks.

The higher the ROE, the more efficient the company is. This happens by comparing the stock to a benchmark index. The beta usually varies between -1 and 1. Sometimes values can go much lower than -1 or much higher than 1. Values above 0 mean that the stock correlates to the benchmark index. The higher the beta, the higher the correlation. But the higher beta also means that the volatility is higher as wellmeaning that the risk of the asset increases.

Process Fundamentals Case Study Solution & Analysis

Values below 0 mean that the stock is inversely correlated to the benchmark index. The lower the beta, the higher the inverse correlation. However, the lower the beta, the lower the volatility. Amazon is the ultimate symbol of the tech sector. The company has shown exponential growth, revenue and earnings over time. Another important fundamental indication is that Amazon has beaten the EPS estimates in the past 4 yearsand the outreach is exponential. This earnings data shows that Amazon is healthy and aims for growth every year.

And the best is that they are succeeding for now. Notice that earnings per share of Amazon are very low compared to the stock price. This tells us that a very small part of the earnings actually goes to the shareholders.

They constantly expand and reinvest funds in research and development. Some of the fields Amazon is currently working actively is robotization and artificial intelligence. This offers up further information, however. Since Amazon invests a lot and aims to expand more, we can expect the company to grow even further, dragging the stock price up. This means investors are currently paying nearly 20 times higher price for an Amazon share compared to the book value of the company.


Add a Comment

Your email address will not be published. Required fields are marked *