Seven Steps in Analysing a Company

This “7 Steps for a Company Analysis” is based on a guide from Utah College,
(https://campusguides.lib.utah.edu/c.php?g=160355&p=10505400) and extended here by me (DD)
with my additional comments in Bold.

The original guide has a desk-research, financial orientation, so see also my separate guide
“Analysing a Company: Key Models, Tools and Approaches” for a wider view of the company, using
7S, Greiner, Culture Web, benchmarking and other models.

The intention is to discover the key insights, rather than undertake a total “due diligence audit” or a
superficial analysis – try to imagine you have joined the company in a senior role and want to
understand the company well enough to complete an evidence-based SWOT and recommend
significant changes (akin to the Project theme).

1.  Begin with a macro (big picture) environmental scan, using a PESTEL or 5 Forces analysis. Drill
down to a micro (specific industry/company) scan.  Look at the financial statements of a company
for the past few years (3 or more years). 

We are not unduly concerned with a detailed Financial Analysis, just some high-level analyses e.g.
share price trends of Microsoft versus Google, or Workday versus Oracle.

2.  Find competitors.  Compare and contrast.  Use the NAICS or SIC code to find competitors. 

Look also at those emerging with a different business model e.g. Barnes & Noble versus traditional
book stores. Check also for those emerging with a superior or disruptive technology.

3.  Find Industry Reports. Use:

 IBISWorld Industry Research 

This database contains a variety of industry reports including risk reports, industry summaries,
market research, market conditions and forecasts, supply chain information, and competition data.
Items can be viewed online or downloaded for offline use.

to identify the size of the market for your company and how it compares to the rest of the industry. 
Market share information can also be found in business articles that appear in magazines or
newspapers.  You may have to use:

 Business Source Premier 

Includes the full text for more than 2,300 journals. Full-text results are provided back to 1886, and
searchable cited references back to 1998. This database covers many business disciplines, including
marketing, management, MIS, POM, accounting, finance and economics. Additional full-text, non-
journal content includes market research reports, industry reports, country reports, company
profiles and SWOT analyses.

 Nexis Uni 
Nexis Uni™ features more than 15,000 news, business and legal sources from LexisNexis with an
intuitive interface that offers discovery across all content types.

 Wall Street Journal Historical Newspaper 

This database provides access to a full-image archive of the Wall Street Journal. Every issue from
1889-1995 is included and features the complete paper cover-to-cover with full page and article
images in PDF form.

The WSJ may not be available, so we are mainly interested in Harvard Business Press (or MIT Sloan
or similar business-oriented College publications) and / or The Economist or Financial Times.

4.  SWOT Analysis (Strengths, weaknesses, opportunities & threats).  You may find this information
using:

 Business Source Premier 

Includes the full text for more than 2,300 journals. Full-text results are provided back to 1886, and
searchable cited references back to 1998. This database covers many business disciplines, including
marketing, management, MIS, POM, accounting, finance and economics. Additional full-text, non-
journal content includes market research reports, industry reports, country reports, company
profiles and SWOT analyses.

You may be able to draw conclusions about the company/industry by following the steps above.

The Opportunities and Threats mainly arise from the Industry Analysis: the Strengths and
Weaknesses mainly arise from the Company Analysis: SW + OT.

Ultimately, that is what you are looking for – an insightful SWOT (or, if you prefer, TOWS) that
captures the essence of the environment, market and especially the company: this logically leads
to suggestions of Project themes, if not already decided. The area for investigation in the next
stage are then confirmed or mutually agreed between the Company and the Student Team:
normally, the original theme is continued but it is allowed to change themes, provided the
Company, Team and Tutor all agree.

6.  The steps above are a recursive process that you will repeat many times. 

7. Contact Industry Observers or Commentators – Primary Research The above are mainly based
on desk research: the more contemporary information and insights will be found in industry-
specific publications (trade journals) and events (e.g. Consumer Electronics Show for tech
companies such as Apple).

It is also important to find commentators on the industry (journalists, for example, or regulators,
or investors) or those who formerly worked in the industry (and have now no axe to grind). Do not
speak to direct competitors unless expressly permitted.