Can you help me write this part of this assignment please? Thank you !

Executive Summary

SWOT (Strength, Weaknesses, Opportunities and Threats) Analysis

Porter?s Five Forces Analysis

Financial Ratio Analysis

Competitors Analysis

Scenario Analysis (Good / Average / Poor)

Conclusions and Recommendations

Appendices

References

There are detail about this assignment.

the compamy is SeaDragon in New Zealand. the net is http://www.seadragon.co.nz/about-us/#leadership

the PPT can give the Porter?s Five Forces Analysis

Hints:

Limit the executive summary to one page, in point form of between 8 and 10 points only. It summarizes the whole report for a busy reader who only wants to know the salient points of your report.

Be specific on the purpose of your report. Provide some objectives that you think are very relevant and important. A good report will also include scope and limitations.

On the company?s description, a copy and paste from the latest annual report will not deserve an A. Be resourceful by including major shareholder changes, director changes, or corporate moves that are pertinent to the company.

Point (3) above applies to products and/or services of the company too.

Provide a review and development of only the principal business activity of the company.

No need for a lengthy elaboration in SWOT Analysis.

Same goes for Porter?s Five Forces Analysis (please refer to Chapter 17). This is a finance paper, not management. The SWOT and Porter analyses are only there so that students have an idea of what should be there in a complete ?Company Analysis?.

Perform a financial ratio analysis (please refer to Chapter 19) for the two (2) subsequent latest years. For any annual report of a public-listed company, there will be financial reports for the current year and the previous year. Thus, you only need to get the latest annual report of the company. Provide comments on the trend of the ratios.

Select a competitor from the same industry with your company and compare their financial ratios for the latest financial year only. If you just provide the figures, your report will not deserve an A. Provide your comments by comparing the ratios of your company and the competitor.

Perform a scenario analysis on three (3) conditions, good, average, and poor. Depending on your company, look at what would be a factor that will have the most significant impact on the profitability of the company. For example, for New Zealand Oil & Gas Limited, it will be the price of crude oil. Forecast the net profit of the company for three (3) different levels of crude oil. Then, calculate the prospective earnings per share and prospective price earnings ratio.

Summarize your analyses in the conclusions and provide your stock recommendations. It can be Strong Buy, Buy, Accumulate, Buy on Weakness, Hold, Sell on Strength, Sell, or Strong Sell. Look at broker?s reports for guidance.

Include important articles or write-up that you quote in the appendices. If you have many of them, prepare a table of appendices.

Executive Summary Introduction - Purpose and Objectives Mission SeaDragon is a New Zealand company capturing value from processing selected fish oils and fish livers into purified Omega-2 and Omega-3 fish oils, for use in the cosmetic, nutraceutical and pharmaceutical industries. In everything we do, we strive to maintain natural purity and uphold the principles of sustainability. Vision To be recognised by consumers as the global leader in the production of unique and sustainably harvested fish oils for use in supporting healthy lifestyles. Values Product of New Zealand Sustainable sourcing of raw materials Pure and clean Safe manufacturing with highest quality products Product traceability Independent auditing Trustworthy brand with integrity Industry Leader Core value - Product of New Zealand At SeaDragon, our locations means we are in the unique position of being able to provide New Zealand sourced and manufactured products to the world. To build on this opportunity, we have constructed a new state-of-the-art refined fish oil processing facility in Nelson, New Zealand. It has capacity to produce 5,000 tonnes of refined fish annually and is at the heart of the company's Omega-3 production. General Company Description - Shareholders and Management Team SeaDragon will ensure its most valuable asset, our people, are returned home safely to their families at the end of the day. We will provide a positive environment and culture in which a commitment to health and safety is part of everyday business. Colin Groves Independent Chairman Colin has spent the past 23 years primarily as Director of Mergers and Acquisitions at Tetra Laval, the world's largest private company and maker of the renowned Tetra Pak packaging solutions and DeLaval milk processing machinery. He has also held roles at Informix Software, and US healthcare multinational Johnson & Johnson. A chartered accountant and former English colts rugby international, Mr Groves is currently Chairman of New Zealand's one of largest mobile app development company MEA Mobile, and the Agri Group of Companies, which includes dairy consumables business, Deosan. He sits on the Waikato Rugby Board and is an independent director of VetSouth. Richard Alderton Interim CEO and Director Richard has extensive international supply chain and leadership experience. He was previously CEO at DeLaval Oceania, the New Zealand and Australian division of the world's largest developer of dairy farming solutions and will be a valuable addition to the company. Products and/or Services Our Omega -3 products are manufactured in accordance with GOED (Global Organization for EPA and DHA ), setting product standards higher than any single regulation in the world. Finished, refined Omega-3 and Omega- 2 oils are tested by independent accredited laboratories that use internationally agreed methodologies, evaluating for total Omega-3 EPA and DHA, Omega -2 content as well ensuring that all products meet standards for contaminant levels. OMEGA-2 Omega-2 can be sourced from either animal or vegetable sources and is primarily used in the cosmetics, nutraceutical and pharmaceutical industries and also in high-grade lubrication and fibre coating. SeaDragon produces human consumption grade Omega-2, primarily for the nutraceutical market. The raw materials for Omega-2 are sourced mainly from deep water dogfish, but also from the liver of the deep sea shark, which forms the richest source of natural squalene. Shark liver oil consists of about 60-85 % of this natural material. By means of comparison olive oil has a squalene concentration of only 0.4 -0.8 %. Products from our fractionation activities include Squalene >99%, Deep Sea Shark Liver Oil (DSSLO) fractions, Alkoxyglycerols and New Zealand School Shark Liver Oils. Squalene Squalene is a naturally occurring unsaturated hydrocarbon compound found in the livers of deep sea sharks. It also occurs in small quantities in the human body, to help keep the skin moist and supple. Traces are also found in vegetable oils such as olive oil. Squalene is a strong antioxidant, helping to support oxidative damage from free radicals, which are known to cause degenerative damage to membranes and cells. OMEGA-3 South Pacific caught Tuna and New Zealand Hoki, together with King Salmon, will provide the initial unrefined oils for processing into high value Omega-3 products. Traceability, freshness and sustainable accreditation for Hoki and Salmon will be paramount as global consumers demand more information, more transparency, more ethical behaviour, and evidence that companies are doing the right thing. The production of refined oil is carried out in strictly controlled environments, including the minimisation of oxygen, temperature and light exposure which can cause degradation of the oil. All Sea Dragon's procedures are designed to ensure that the products meet the highest manufacturing standards to ensure suitability for human consumption and we operate under strict HACCP (Hazard Analysis and Critical Control Point) and RMP (Risk Management Plan) systems. All products are manufactured to the GOED standard for fish oils, quality tested before dispatch, and are accompanied with appropriate certification. New Zealand Hoki - Refined New Zealand Hoki Oil New Zealand's largest fishery, all Hoki are caught in the isolated, deep cold oceans surrounding New Zealand. Hoki fishing takes place at several fishing grounds around New Zealand including the Stewart-Snares shelf south of Stewart Island, the subantarctic, the west coast of the South Island, Cook Strait, and the Chatham Rise east of the South Island. SeaDragon Hoki Oils are fully traceable to the fishery, geographic location and period of capture. Source materials are fully sustainable, New Zealand Hoki was the first fishery certified by the Marine Stewardship Council (MSC) in 2001 - the most stringent assessment methodology of all certifications Refined New Zealand Hoki Oil is naturally high in total Omega-3s with a unique EPA to DHA ratio compared with traditional fish oils such as cod and menhaden. Industry/Sectoral Analysis SeaDragon has lived up to its founding aspiration of being an industry leader and is receiving industry recognition for its hard work. Proud Members of We were named 'Exporter of the Year' at the Natural Products New Zealand summit (2014). In March 2014 SeaDragon was proud to win the prestigious DHL Global Forwarding 'Exporter of the Year' award at the Natural Products New Zealand (NPNZ) summit in Nelson. NPNZ represents the country's natural products, functional foods, complementary medicines, cosmeceuticals and nutraceuticals industries. Judges praised SeaDragon's unique product propositions and our ability to commercialise resources that would otherwise have been discarded. The judges recognised the flexibility of our manufacturing facilities and our ability to develop new markets. These are the qualities that will underpin our drive into Omega-3 fish oil markets. SeaDragon is also benefiting from new government research funding that has secured the future of Plant & Food Research's Nelson facility. The New Zealand Government allocated $10.8 million for 'Export of Marine Products' research which will support the competiveness of the seafood products industries clustered around Port Nelson. Plant & Food Research's success is positive for the Nelson region and the related industries locally, with companies such like ours able to leverage proximity to this world class seafood research and development facility, as well as Australasia's largest fishing port. SeaDragon has begun discussions with Plant & Food scientists to help identify processing methods to enhance both the quality and concentration of the Omega-3 within the fish oil to be processed through the new factory. SWOT (Strength, Weaknesses, Opportunities and Threats) Analysis Porter's Five Forces Analysis Financial Ratio Analysis Competitors Analysis Scenario Analysis (Good / Average / Poor) Conclusions and Recommendations Appendices References Fina312 - Portfolios and Markets Fina517 - Investments, Portfolios and Financial Markets Macroeconomic and Industry Analysis Chapter 17 Chapter 17 -Why Do Industry Analysis -The Business Cycle and Industry Sectors -Structural Economic Changes and Alternative Industries -Evaluating the Industry Life Cycle -Analysis of Industry Competition Framework of Analysis Fundamental Analysis Approach to Fundamental Analysis: - Domestic and global economic analysis - Industry analysis - Company analysis Why use the top-down approach? Global Economic Considerations Performance in countries and regions is highly variable Political risk Exchange rate risk - Sales - Profits - Stock returns Key Economic Variables Gross domestic product Unemployment rates Interest rates & inflation Budget deficit Consumer sentiment Figure 17.2 S&P 500 Index versus Earnings Per Share 13-9 Negative Demand Shocks These cause less quantity of goods to be consumed, and those consumers still in the market pay a lower price for the good. An example of this would be if a medical journal reported that a widely used prescription drug appreciably increases your chances of cancer. Then there would be a sharp shift in demand with less goods being consumed at a lower price. Positive Demand Shock Conversely, this type of shock can cause more goods to be consumed at a higher price. Consider the combined effects of two simultaneous events upon the demand of two complements, fish and tartar sauce: a new nutritional study conclusively touts the many health benefits of eating fish, and there are commercial fishing efficiency advances that make fish inexpensive. More people will want to eat fish, leading them to buy more tartar sauce even though it's now at a higher price. 13-11 Negative Supply Shock Causes the quantity supplied to be rapidly reduced, and the price to increase quickly until a new equilibrium is reached. A good example of this would be any natural disaster or other unanticipated event that disrupts the production process and/or supply-chain. An instance of this would be Hurricane Katrina's detrimental affect upon the oil and gasoline industry: oil rigs, refinement plants, and pipelines were either shut down or taken off line. A hypothetical example of this could be if a key resource input of a firm's production process was found to have a much more valuable application in another use, then the cost of the input would rise. For instance, if a pipe-fitters firm's production process used a metal that the microchip industry found a novel use for, the price of that metal would increase. Thus the amount of pipes supplied would fall and their price would increase. Positive Supply Shock These usually come in the form of overnight technological advances that quickly improve the productivity of labor and the return of capital. These improvements cause the quantity supplied to increase and the price to fall. For instance, this age of computers and robots has represented an unprecedented increase in productivity that goods can be mass produced on a massive but relatively inexpensive scale. It could also occur if a new, cheaper substitute for an expensive production input is found. For instance, the discovery of a seam of low-sulfur coal out in Powder Basin, Wyoming. Structural Economic Changes and Alternative Industries Social Influences - Demographics - Lifestyles Technology Politics and regulations - Economic reasoning, Fairness, Regulatory changes affect industries, Taxation Globalizationand its effects on international politics and commerce Theme Investing Based on identifying emerging trends, such as: - Technology - Aging population - Freer trade and developing-country growth Identification of themes provides insight into industry analysis Business Cycles The transition points across cycles are called peaks and troughs - A peak is the transition from the end of an expansion to the start of a contraction - A trough occurs at the bottom of a recession just as the economy enters a recovery Leading Indicators Leading indicators tend to rise and fall in advance of the economy Examples: - Avg. weekly hours of production workers - Stock Prices Coincident Indicators Coincident Indicators - indicators that tend to change directly with the economy Examples: - Industrial production - Manufacturing and trade sales Lagging Indicators Lagging Indicators - indicators that tend to follow the lag economic performance Examples: - Ratio of trade inventories to sales - Ratio of consumer installment credit outstanding to personal income Table 17.2 Indexes of Economic Indicators Figure 17.3 Cyclical Indicators Figure 17.4 Indexes of Leading, Coincident, and Lagging Indicators Defining an Industry North American Industry Classification System, or NAICS codes - Codes assigned to group firms for statistical analysis Why Do Industry Analysis? The Purpose: - Help find profitable investment opportunities - Part of the three-step, top-down plan for valuing individual companies and selecting stocks for a portfolio What Do We Learn From Industry Analysis? - Is there a difference between the returns for alternative industries during specific time periods? - Do firms within an industry show consistent performance over time? 13-29 Why Do Industry Analysis? - Will an industry that performs well in one period continue to perform well in the future? That is, can we use past relationships between the market and an individual industry to predict future trends for the industry? - Is there a difference in the risk for alternative industries? - Does the risk for individual industries vary or does it remain relatively constant over time? 13-30 Why Do Industry Analysis? Cross-Sectional Industry Performance - Wide dispersion in rates of return in different industries - Performance varies from year to year - These results imply that industry analysis is important and necessary to uncover these substantial performance differencesthat is, it helps identify both unprofitable and profitable opportunities 13-31 Industry Groups - % Change 13-32 Industry Groups - Annual Range 13-33 Why Do Industry Analysis? Industry Performance over Time - Research shows that there is almost no association in individual industry performance year to year or over sequential rising or falling markets - Variables that affect industry performance change over time Performance of Companies within an Industry - There is wide dispersion in the performance of companies within an industry - This reinforces the need for company analysis in addition to industry analysis 13-34 Why Do Industry Analysis? Differences in Industry Risk - Empirical studies have found a wide range of risk among different industries at a point in time, and that differences in industry risk typically widened during rising and falling markets - Although risk measures for different industries have shown substantial dispersion during a period of time, individual industries' risk measures are stable over time 13-35 Why Do Industry Analysis? Industry Analysis Process - The industry analysis process is similar to the analysis of the economy and the aggregate equity market - The Macroanalysis of the Industry The business cycle and industry sectors Structural economic changes & alternative industries Evaluating an industry's life cycle Analysis of the competitive environment in an industry - The Microvaluation of the Industry Various valuation techniques 13-36 Business Cycle and Industry Sectors Economic trends can and do affect industry performance By identifying and monitoring key assumptions and variables, we can monitor the economy and gauge the implications of new information on our economic outlook and industry analysis 13-37 Business Cycle and Industry Sectors Cyclical or Structural Changes - Cyclical changes in the economy arise from the ups and downs of the business cycle - Structure changes occur when the economy undergoes a major change in organization or how it functions Rotation strategy is when one switches from one industry group to another over the course of a business cycle 13-38 The Stock Market and the Business Cycle Basic Industries Excel Consumer Durables Excel Financial Stocks Excel trough peak Capital Goods Excel Consumer Staples Excel Sector Rotation Portfolio is adjusted by selecting companies that should perform well for the stage of the business cycle - Peaks - natural resource extraction firms - Contraction - defensive industries such as pharmaceuticals and food - Trough - capital goods industries - Expansion - cyclical industries such as consumer durables Figure 17.11 Sector Rotation 2009 Forecast - JPM Industry Analysis Sensitivity to business cycles Factors affecting sensitivity of earnings to business cycles: - Sensitivity of sales of the firm's product to the business cycles - Operating leverage - Financial leverage Industry life cycles Business Cycle and Industry Sectors Economic Variables and Different Industries - Inflation Higher inflation is generally negative for stocks - Interest Rates For example, financial and housing industries will be adversely affected by high interest rates - International Economics Economic growth in world regions or specific countries benefits industries with a large presence in the areas - Consumer Sentiment The performance of consumer cyclical industries will be affected by changes in consumer sentiment 13-49 Evaluating the Industry Life Cycle When predicting the industry sales and trends in profitability, an insightful analysis is to view the industry over time in different stages The Five-Stage Model - - - - - 13-50 Pioneering development Rapidly accelerating industry growth Mature industry growth Stabilization and market maturity Deceleration of growth and decline Life Cycle of an Industry 13-51 Analysis of Industry Competition Competition and Expected Industry Returns - Porter's concept of competitive strategy is described as the search by a firm for a favorable competitive position in an industry - To create a profitable competitive strategy, a firm must first examine the basic competitive structure of its industry - The potential profitability of a firm is heavily influenced by the profitability of its industry 13-52 Analysis of Industry Competition Porter's Competitive Forces - Rivalry among existing competitors More rivalry means intense competition - Threat of new entrants Are there barriers to entry? - Threat of substitute products Substitute products limit the profit potential of an industry - Bargaining power of buyers Volume discounts, quality demands - Bargaining power of suppliers Can suppliers increase prices or reduce quality? 13-53 Porter's Five Forces 13-54 The purpose of Five-Forces Analysis The five forces are environmental forces that impact on a company's ability to compete in a given market. The purpose of five-forces analysis is to diagnose the principal competitive pressures in a market and assess how strong and important each one is. Porter's Five Forces Model of Competition Threat of Threat of New New Entrants Entrants Threat of New Entrants Ability of new firms to enter market is determined by factors such as: - - - - absolute cost advantages government policy economies of scale brand identity Also referred to as Barriers to Entry Threat of New Entrants Economies of Scale Barriers to Entry Product Differentiation Capital Requirements Switching Costs Access to Distribution Channels Cost Disadvantages Independent of Scale Government Policy Expected Retaliation Porter's Five Forces Model of Competition Threat of Threat of New New Entrants Entrants Bargaining Power of Suppliers Bargaining Power of Suppliers Suppliers are likely to be powerful if: Suppliers exert power in the industry by: * Threatening to raise prices or to reduce quality Powerful suppliers can squeeze industry profitability if firms are unable to recover cost increases Supplier industry is dominated by a few firms Suppliers' products have few substitutes Buyer is not an important customer to supplier Suppliers' product is an important input to buyers' product Suppliers' products are differentiated Suppliers' products have high switching costs Supplier poses credible threat of forward integration Supplier Power Bargaining power to determine pricing and quality of good Bargaining power is based on factors such as number of suppliers, switching costs, and presence of substitute inputs Powerful vs. Weak Suppliers Suppliers are powerful if: Suppliers are concentrated Significant cost to switch suppliers Drug industry's relationship to hospitals Microsoft's relationship with PC manufacturers Suppliers are Weak if: Standardized product with many competitive suppliers Concentrated purchasers Tire industry relationship to automobile manufacturers Garment industry relationship to major department stores Porter's Five Forces Model of Competition Threat of Threat of New New Entrants Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Bargaining Power of Buyers Buyer groups are likely to be powerful if: Buyers are concentrated or purchases are large relative to seller's sales Purchase accounts for a significant fraction of supplier's sales Products are undifferentiated Buyers face few switching costs Buyers' industry earns low profits Buyer presents a credible threat of backward integration Product unimportant to quality Buyer has full information Buyers compete with the supplying industry by: * Bargaining down prices * Forcing higher quality * Playing firms off each of other Buyer Power Buyer Power is the impact that customers have on a producing industry The Power of Buyers is determined by factors such as buyer concentration, switching costs, and backward integration Buyers are Powerful if: Buyers are concentrated Credible backward integration threat - can threaten to buy producing firm or rival DOD purchases from defense contractors such as Lockheed Martin Large auto manufacturers' purchases of tires Buyers are Weak if: Buyers are fragmented Producers supply critical parts of buyers input Most consumer products Intel's relationship with PC manufacturers Porter's Five Forces Model of Competition Threat of Threat of New New Entrants Entrants Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products Threat of Substitute Products Keys to evaluate substitute products: Products with similar function limit the prices firms can charge Products with improving price/performance tradeoffs relative to present industry products Example: Electronic security systems in place of security guards Fax machines in place of overnight mail delivery Threat of Substitutes In Porter's model, substitute products refer to products in other industries. A close substitute constrains the ability of firms to raise prices. e.g. aluminum can maker is constrained by price of glass bottles, steel cans, and plastic containers. Threat of Substitutes Price/Performance tradeoff Switching costs Substitute improvement Porter's Five Forces Model of Competition Threat of Threat of New New Entrants Entrants Bargaining Power of Suppliers Rivalry Among Competing Firms in Industry Threat of Substitute Products Bargaining Power of Buyers Rivalry Among Existing Competitors Intense rivalry often plays out in the following ways: Jockeying for strategic position Using price competition Staging advertising battles Increasing consumer warranties or service Making new product introductions Occurs when a firm is pressured or sees an opportunity Price competition often leaves the entire industry worse off Advertising battles may increase total industry demand, but may be costly to smaller competitors Rivalry Among Existing Competitors Cutthroat competition is more likely to occur when: Numerous or equally balanced competitors Slow growth industry High fixed costs High storage costs Lack of differentiation or switching costs Capacity added in large increments Diverse competitors High strategic stakes High exit barriers The Five Forces are Unique to Your Industry Five-Forces Analysis is a framework for analyzing a particular industry. - Yet, the five forces affect all the other businesses in that industry. Industry Competition Competition drives profits Rivalry is impacted by number of competitors, industry growth, product differentiation, competitor diversity, and exit barriers. Competitor Analysis The follow-up to Industry Analysis is effective analysis of a firm's Competitors Industry Environment Competitive Environment Competitor Analysis Assumptions What assumptions do our competitors hold about the future of industry and themselves? Current Strategy Does our current strategy support changes in the competitive environment? Response What will our competitors do in the future? Where do we have a competitive advantage? Future Objectives How do our goals compare to our competitors' goals? Capabilities How do our capabilities compare to our competitors? How will this change our relationship with our competition? Conclusion Porter's model of the industry identifies the forces at play and context of firm's position Management seeks to position the firm at a competitive advantage Strategic moves that protect the firm's product from the adverse affects of the five forces