From the course: Creating Business and Industry Analysis for Financial Analysts

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Evaluating production in business analysis

Evaluating production in business analysis

From the course: Creating Business and Industry Analysis for Financial Analysts

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Evaluating production in business analysis

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- [Instructor] The next component of a strong business analysis is your evaluation of production. To assess a company's efficiency, cost, quality, and sustainability, it's essential to understand its production process, whether it manufactures products or provides services. When a company makes something, these are factors you need to consider. First, production methods and efficiency. How are products made or services delivered, and are the processes efficient and cost effective? What manufacturing technologies or techniques are used and are they up to date and competitive? Second, research and development. How important is R and D to the company's strategy? And what's the company's track record of successful product launches? Third resource constraints, and this one is very important. Ask yourself, are there any scarce resources required for production? This could include raw materials, components, or specialized labor. For example, a company that relies on chips to make its…

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