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Company and Industry

Research

Company and Industry


Research
Strategies and Resources

Hiromi Kubo
Thomas J. Ottaviano

Company and Industry Research: Strategies and Resources


Copyright Business Expert Press, LLC, 2016
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means
electronic, mechanical, photocopy, recording, or any other except for
brief quotations, not to exceed 250 words, without the prior permission
of the publisher.
First published in 2016 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-63157-037-7 (paperback)
ISBN-13: 978-1-63157-038-4 (e-book)
Business Expert Press Industry Profiles Collection
Collection ISSN: 2331-0065 (print)
Collection ISSN: 2331-0073 (electronic)
Cover and interior design by S4Carlisle Publishing Services
Private Ltd., Chennai, India
First edition: 2016
10987654321
Printed in the United States of America.

Abstract
The goal of this book is to describe information search strategies and techniques critical for business practitioners and to pinpoint credible sources
of information on specific topics in company and industry research. In
todays Information Age, businesses have an ever-growing need to obtain
quality information in a timely manner and incorporate it effectively into
decision making, and when such a need occurs business managers often
face a situation of performing information research themselves with a
limited budget.
Rather than frantically running searches on random websites with
much time wasted, it is imperative that they understand the nature of
business information research, develop a systematic plan for data collection, and use appropriate information from credible sources. Becoming
familiar with the significance of these information resources is a key for
successful business research.

Keywords
business plan, business research, company research, competitive analysis,
industry research

Contents
Preface...................................................................................................ix
Acknowledgmentsxi
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5

Introduction to Company and Industry Research..............1


Company Research............................................................7
Industry Research.............................................................37
Further Resources for Business Research..........................65
Business Plans..................................................................81

Index101

Preface
This book is organized into five chapters. Chapter 1 introduces key
concepts and general procedures of business research with a focus on
company and industry information research. Chapters 2 and 3 describe
essential resources and search strategies for conducting company and
industry research. Chapter 4 covers additional vital resources for company and industry research that do not fit into a single category. Each
chapter begins with a quick list of these resources and a discussion of a
step-by-step research strategy, followed by detailed reviews of each resource presented. The research strategy includes the thought processes
and common research activities that must be followed to obtain business
information relevant to the particular needs. Finally, Chapter 5 illustrates
how to develop a successful business plan and discusses in detail the key
components.
Although the information compiled in this book is aimed largely at
those who are in the early stages of their business professions and entrepreneurships, as well as college students in business programs, it will also
be valuable for those who have substantial experience in seeking business
information. We hope that the book will provide a concise compilation
of credible business information resources as a foundation and prepare
you to proceed with successful company and industry research from a
strategic base.
Please be aware that the lists of resources are not exhaustive. While
we covered many of the most notable resources, there are additional resources that due to lack of access or familiarity, we were unable to review.
Please note that the authors do not endorse any commercial products
listed in this book.

Acknowledgments
A number of people were helpful in the development of this book. We
would especially like to acknowledge Donald N. Stengel, who read early
drafts of this manuscript and brought us the publishing opportunity. We
also wish to express our appreciation to our library colleagues and friends
who have given helpful suggestions and encouragement. Lastly, we are
grateful to our families for all their love and support throughout the preparation of this book.

CHAPTER 1

Introduction to Company
and Industry Research
It is generally agreed that our modern society has experienced a major
change in producing, disseminating, and accessing information as it has
transitioned into todays Information Age. A great deal of information
is being generated every day, and many more facts and data are easily
and quickly accessible to the public. Without question, the advent of
the Internet and the overall growth of communication technology particularly in the past two decades have accelerated these changes, and this
technological growth is expected to continue even more drastically in
the near future. Furthermore, thanks to smartphones, tablets, and other
ever-evolving mobile devices, the same information we enjoy obtaining
at home is now available while we are on an airplane, at the beach, or
overseas as long as an Internet connection is secured.
The Internet and the associated technology also have benefited information gatherers by reducing the cost of information and data. Some data
sources that used to be expensive or accessible only at specific dedicated
locations are now available on the Internet for much less or even free.
Along with commercial entities, many authoritative information providers such as the U.S. government, which is the largest publisher in the
world, have also been moving rapidly to make more and more content
available over the Internet, making it easier than ever for the public to find
and obtain information.
Although this phenomenon is enormously beneficial for information
researchers, it also means that people must become skillful at weeding out
unnecessary and inadequate information to get to the truth. Particularly
in the business field, a companys success relies heavily on the strategic
use of information. Indeed, carefully cultivated, applied information is

COMPANY AND INDUSTRY RESEARCH

indispensable for successful business entities and a key to organizational


effectiveness. This increasing emphasis on quality information necessitates greater development of research skills for business practitioners and
those dealing with todays business challenges. Therefore, it is to your
advantage to become familiar with core information resources and the
strategic mindset to conduct information research.
The information technology field is so dynamic and fast-changing that
often what is right today might become obsolete tomorrow. It is therefore
important for business practitioners to continuously explore the latest advances in the industry and keep up with the changing landscape. It is also
worth noting that, although a great deal of information has been moved to
the digital domain and much business-related research today can be done
through the Internet, there are still significant amounts of information
resources available only in certain formats or only for particular memberships, organizations, or through libraries. In addition, the phenomenon
of information overload amplifies the serious issues of authenticity, credibility, and validity of information found on the Web. Once necessary
information is collected and classified, it needs to be evaluated carefully
for its appropriateness before being used in a particular decision-making
context.
The demand for adequate business research skills has come with the
trend toward increased size and complexity of the information available
today. Considering the fact that one of the vital competitive factors for
succeeding in business is speed, the abilities and strategies for accessing
and gathering necessary business information in a timely and effective
manner are crucial for those who want to prosper in their own business or
advance in a company. The driving force behind this book is to assist these
people to obtain such abilities by describing effective business research
and introducing essential business resources.

Key Strategies for Effective Business Research


Generally, business research has the following characteristics that are distinct from other types of research:
Problem-oriented. The goal of performing business research
is to obtain the information and data necessary to solve

Introduction to Company and Industry Research

a specific business problem, to make a sound decision,


and to identify more profitable alternatives. The act of
locating interesting information about potential customers
or prospective markets is often exciting in itself, but the
execution of such research is questionable if it does not
contribute to improving problem-solving capabilities.
Time-sensitive. Because business research tends to be done in
a competitive, rapidly changing environment, the timeliness
of information acquisition is critical. Business information
must be provided on a timely basis to ensure that a companys
decision making is based on up-to-date information.
Cost-effective. Business research can be extremely time
consuming and expensive to conduct depending on what you
are looking for and which resources you are lacking. Cost
benefit analysis must be applied when faced a situation of
making or buying necessary information to maximize the
companys profit on investment.
Along with the above characteristics, business research consists of
two distinct areas of research based on the methods of data gathering
and types of information to be searched: One is called primary research
and the other secondary research. Primary research is a research method
to gather data and information directly from nonpublished sources of
your own for your customized purpose. Conducting primary research
can include questionnaires, surveys, interviews with individuals, focus
groups, observations, and field tests. On the other hand, secondary research is to collect and analyze data that already has been produced and
published by others for another purpose. It involves gathering already
compiled data, studies, reports, and other information from organizations such as government agencies, trade associations, and research entities, and putting them together for analysis. While primary research
is often conducted for consumer analysis and product development,
secondary research is utilized for a wide variety of purposes such as to
analyze target industry segments, identify major players and competitors within an industry, establish benchmarks, and so forth. This book
is dedicated to discussing and describing secondary research with a particular focus on company and industry research.

COMPANY AND INDUSTRY RESEARCH

New business practitioners who gather information under pressure


with limited time and resources might take shortcuts that can end up
backfiring later. The following strategies will help you avoid common pitfalls and allow you to get the most out of your research.
Determine what information to collect and why. The value of
information collected often depends on the preparation and
planning that take place prior to the execution of information
gathering. Too frequently, business research is carried out
without careful consideration being given to what information
needs to be collected and why it is worth being collected. The
purpose of conducting business research is to solve a problem
that a company faces at hand and to make informed decisions.
Therefore, identifying what information and data you need
for solving a problem is the first and foremost step in business
research. Without investing time to adequately understand
the problem to be solved, the research can become challenging
and will often fail to accomplish its purpose. To avoid such
a pitfall, start by articulating exactly what problem you want
to solve, brainstorm the information that you might want to
gather to solve the problem, and list potential resources that
could help you locate the necessary information.
Develop a research plan and record the research process. Planning
a research project involves assessing problems to be solved,
preparing for the allocation of available resources, identifying
strategies and techniques to be employed in information
gathering, and specifying approaches to analyze the gathered
information. A well-developed, systematic research plan not
only provides a guidepost for the research project that is to be
conducted but also becomes a means of communicating to
others the validity of the research.
Once the planning phase is completed and the research begins, it is strongly recommended to keep track of the research
process while business research is conducted. Developing a habit
of taking notes will help you when you return later to search for
more information. Always record your research steps, resources of

Introduction to Company and Industry Research

information, terms used for keyword searches, and other key factors of your research using your preferred notetaking system.
Seek reliable information tenaciously. Performing business
research is time consuming and often requires patience. Those
who are new to systematically conducting business research
tend to quit searching for reliable data once a small piece
of related information is found and easily dismiss the idea
of spending the time to carry on with extensive research.
Using only one resource could leave you in a tight spot when
authenticity of the information source is somehow shaky. Do
not stop your research quest simply because it is too much
work. Keep going down the list of potential resources until
you find trustful information or you recognize a need of
altering the original research plan. Keep in mind that all work
you do on the foundation of inadequate information can
cause a total waste of your time and money.
Ask research experts. If a research decision critical to your
business requires complicated research or if you get
overwhelmed with complex research tools beyond your
experience, do not hesitate to contact business research
experts and get help from them. Besides professional
researchers, consultants, and statisticians, excellent help can
be found at public and academic libraries. In particular,
colleges and universities that offer business graduate
programs generally have business librarians whose job is
dedicated to help with diverse business-related research.
They will be happy to lend their expertise to you and point
your research in the right direction.
Analyze what you found before making decisions. Once the
research is completed and sufficient information is acquired,
it is important to carefully examine the quality of all of the
gathered information and use selected information to make
a decision. Although the criteria for evaluating information
will vary depending on the nature of the research, the primary
factors that you should be concerned with are authority (e.g.,
Who produced the information and is it of trustworthy

COMPANY AND INDUSTRY RESEARCH

origin?), credibility (e.g., Is the information free from errors


and biases?), timeliness (e.g., When was the information
produced?), purpose (e.g., Why was the information originally
produced and published?), and relevance (e.g., What is the
significance of the information for my business needs?).
Keep in mind the strategies discussed in this section when you undertake any kind of business research. The further you get into your business,
the more likely it is that you will need specific detailed information to
meet your particular needs. Although such information can sometimes be
difficult to locate, there are many more reliable resources than you could
possibly imagine. Some of the most powerful research tools, both free and
fee-based, are listed in this book.

Index
ABI/INFORM Complete database,
40, 5455
Advertising, 9495
Almanac of Business and Industrial
Financial Ratios, 3435
American FactFinder, 67, 9091
American Society of Association
Executives (ASAE), 63
ASAE Gateway to Associations, 63
Assets, 12. See also specific assets
Balance sheet, 12
common-sized, 16
Bloomberg database, 5860
Bloomberg Industry Classification
system (BICS), 41
Bloomberg L.P., 58
Branding, 95
Break-even analysis, 97
Bureau of Economic Analysis, 6768
Bureau of Labor Statistics, 49, 6869
Bureau of the Census, 6162, 67
Business Insights: Essentials, 2526,
4344
Business plans
components to
business description, 8485
consumer behavior, 93
demographics, 90
executive summary, 8284
facilities, 89
financial analysis, 9598
industry analysis, 85
key strategic plans, 98
market drivers, 9293
market research/analysis, 8993
market share, 92
market size, 9192
market trends, 92
marketing plan, 9395
operations plan, 8889

organizational structure and key


executives, 8789
products and services, description
of, 8687
sales, 9798
purposes of creating, 81
Business research
key strategies for, 26
resources for
consumer and marketing
research, 7175
economic data and information,
6671
International business
information, 7580
Business Source Complete Database,
2930, 4647, 5556, 78
Business Source Premier database, 56
Cash flow statement, 1314
CIA World Factbook, 7576
Columbia Books, 63
Common-sized financial statement,
1516
Company profiling database. See
Database
Company research
finances. See Financial research
key considerations for, 78
list of resources, 7, 1935.
See also Database
public versus private companies,
810
United States versus International
companies, 1011
Company profiles, resources for, 1934.
See also Company research
Competitive analysis, 38, 90. See also
Industry analysis
Competitor analysis, 85
Consumer behavior, 93

102 INDEX

Consumer/marketing research,
resources for, 7175
Corporate social responsibility (CSR),
32. See also ESG Manager
Database
ABI/INFORM Complete, 5455
Almanac of Business and Industrial
Financial Ratios, 3435
ASAE Gateway to Associations, 63
Bloomberg, 5860
Business Insights: Essentials, 2526,
4344
CIA World Factbook, 75
Datastream/Worldscope, 6061
EBSCOhost Business Source
Complete, 2930, 4647,
5556, 78
Encyclopedia of Associations, 6263
ESG Manager, 3233
Esri Business Analyst Online, 7172
eStatement Studies, 35
Export.gov, 7576
Factiva, 5657
Federal Reserve Economic Data, 66
Foundation Directory Online, 63
Free Web Resources, 34
Frost & Sullivan, 4445
GlobalEDGE, 7677
Hoovers, 1920
IBISWorld, 4546
LexisNexis Academic, 2627, 5758
MarketLine, 2930, 4647
Mergent Intellect, 2123
Mergent Online, 2021, 4748
Mintel, 4849
Morningstar Investment Research
Center, 2728
National Trade and Professional
Associations of the United
States, 63
NationMaster, 7778
Occupational Outlook Handbook,
4950
Passport, 5051
Plunkett Research Online, 5152
Political Risk Yearbook, 78
ReferenceUSA, 2324
RMA Annual Statement Studies, 35

SEC-EDGAR, 3334
SimplyMap, 7374
SRDS Local Market Audience
Analyst, 7475
Standard & Poors Capital IQ, 2829
Standard & Poors Capital IQ
NetAdvantage, 5253
Thomson ONE, 2425
UNData, 6970
U.S. Bureau of Economic Analysis,
6768
U.S. Bureau of Labor Statistics, 49,
6869
U.S. Bureau of the Census,
6162, 67
U.S. International Trade
Commission, 7879
Value Line Investment Survey,
3031, 5354
WEDDLES Association
Directory,64
World Bank Data, 7071
World Trade Organization7980
Datastream/Worldscope, 6061
Debt, 18
equity versus, 99100
Demographic information. See
also Consumer behavior,
Consumer/marketing
research, and Market
demographics
Dow Jones, 56
Earnings per share (EPS), 13
EBSCO Information Services, 55
EBSCOhost Business Source
Complete, 2930, 4647,
5556, 78
EBSCOhost Business Source Premier
database, 56
Economic Census, 6162, 67
Economic data, resources for, 6671
Encyclopedia of Associations, 6263
Environmental Systems Research
Institute (Esri), 71
Equity, 18
versus debt, 99100
ESG Manager, 3233
ESRI Business Analyst Online, 7172

INDEX
103

eStatement Studies, 35
Euromonitor, 50
European Unions Statistical
Classification of Economic
Activities in the European
Community (NACE), 40
Executive summary, 8284
Factiva, 5657
Federal Reserve Economic Data
(FRED), 66
Financial analysis, 9598
Financial research, 1118
balance sheet, 12
cash flow statement, 1314
common-sized financial
statement, 1516
income statement, 13
reported financial statement, 15
resources, 3435
Financial statement
common-sized financial
statement, 1516
reported financial statement, 15
standardized financial statement, 15
for strengths and weaknesses of
company, 1617
Five Forces model, 38
Fixed-income market, 18
Form 10-K, 8, 13, 19
Form 10-Q, 8
Form 20-F, 10
Foundation Center, 64
Foundation Directory Online, 63
Franchise, 9
Free Web Resources, 34
Frost & Sullivan, 44
database, 4445
Gale Cengage Learning, 25, 43
Gale Research Co., 62
Geographic Research, Inc., 73
Global Industry Classification
Standard (GICS), 41
GlobalEDGE, 7677
Google Finance, 34
Hoovers Inc., 19
database, 1920

IBISWorld, 45
database, 4546
Income statement, 1314
common-sized, 16
Industry analysis, 38, 85
market research/analysis, 90
Industry and trade associations,
6264.
Industry description, 56, 85, 90
Industry research
industry classification
systems, 3942
key considerations
for, 3843
questions for, 39
resources for, 37, 4364.
See also Database
Intellectual property (IP), 86
International business information,
resources for, 7580
International companies, United
States vs., 1011
Internet
information and data, 12
resources for business research, 65
LexisNexis Academic database,
2627, 5758
Line items, 13, 15
common-sized income
statement and, 16
Long-term assets, 12
Market demographics, 90
Market drivers, 9293
Market penetration, 92
Market segmentation, 91
Market share, 92
Market size, 9091
Market trends, 92
Marketing plan, 8384, 9395
Marketing research
and analysis, 8993
consumer and, 7175
industry research and, 42
marketing plan. See Marketing plan
MarketLine International Limited,
2930, 4647
McDonald, 9

104 INDEX

McGraw Hill Financial, 41


Mergent Inc., 20, 21, 47
Mergent Intellect, 2123
Mergent Online, 2021, 4748
Michigan State University, 76
Mintel, 4849
Mintel International Group, 48
Mission statement, 83
Morningstar, Inc., 27
Morningstar Investment Research
Center, 2728
MSCI Inc., 32, 41
MSN Money, 34

ReferenceUSA, 23
database, 2324
Reported financial statement, 15
Request for assistance, in business
plan, 99
Research and development (R&D),
8687
Reuters Finance, 34
Revenue, 4143
in income statement, 1314
Risk Management Association
(RMA), 35
RMA Annual Statement Studies, 35

NAICS (North American Industry


Classification System),
3941
National Trade and Professional
Associations of the United
States, 63
NationMaster, 7778
News resources, 5458
New York Stock Exchange,
10, 28

S&P Capital IQ, Inc., 28, 52


Sales, 94, 9798
in income statement, 14
profit margin, 17
SEC-EDGAR, 3334
Secondary research, 3
Securities and Exchange Commission
(SEC), 89, 10, 35
Short statement. See Mission
statement
Short-term assets, 12
SimplyMap, 7374
Sole-proprietorships, 10
SRDS Local Market Audience
Analyst, 7475
Standard & Poors Capital IQ, 2829
Standard & Poors Capital IQ
NetAdvantage, 5253
Standard Industrial Classification
System (SIC), 40
Standard Rate & Data Service
(SRDS), 74
Standardized financial statement, 15
Statistics, 5862
Statement of cash flows. See Cash flow
statement
Statement of profit and loss. See
Income statement
Stock market trading, 18, 92
Subsidiary, 9
Substitute products/services, threat
of, 38
Supply chain, 8889
SWOT analysis, 2526, 30, 4647,
56, 57, 85

Occupational Outlook Handbook,


4950
Operations plan, 8889
Organizational structure, and key
executives, 8789
Passport, 5051
Plunkett Research, Ltd., 51
Plunkett Research Online database,
5152
Political Risk Yearbook, 78
Pricing, 86, 94
Primary industry, 39
Primary research, 3
Private companies, public companies
vs., 810
Products and services, 89
description of, 82, 8687
Profit margin, 1718
ProQuest LLC, 54
PRS (Political Risk Services) Group,
Inc., 78
Public companies versus private
companies, 810

INDEX
105

10-K, 8, 13, 19
10-Q, 8
Target market, 91, 94
Thomson ONE, 2425
Thomson Reuters, 24, 60
Troy Almanac. See Almanac of
Business and Industrial
Financial Ratios
20-F, 10
UNData, 6970
United Kingdom Standard Industrial
Classification of Economic
Activities (UKSIC), 40
United Nations (UN) Statistics
Division, 69
United Nations International
Standard Industrial
Classification of All Economic
Activities (ISIC), 40
United States, vs. International
companies, 1011
University of Michigans Kresge
Library Services, The, 10
U.S. Bureau of Economic Analysis
(BEA), 6768
U.S. Bureau of Labor
Statistics (BLS), 49, 6869
U.S. Bureau of the Census, 6162, 67

U.S. Census Bureaus Industry


Statistics Portal, 40
U.S. Central Intelligence Agency
(CIA), 75
U.S. Department of Commerce, 61, 67
U.S. Department of Labor, 49, 68
U.S. Federal Reserve Bank of St.
Louis, 66
U.S. International Trade Commission
(USITC), 7879
U.S. Securities and Exchange
Commission, 10, 33
U.S. Small Business
Administration, 87
Value Line, Inc., 30, 53
Value Line Investment
Survey, 3031, 5354
Value proposition, 83, 8485
Walt Disney Company, 9, 4142
WEDDLEs Association
Directory, 64
World Bank, 70
data, 7071
World Trade Organization
(WTO), 7980
Yahoo! Finance, 34

OTHER TITLES IN OUR INDUSTRY PROFILES COLLECTION


Donald Stengel, California State University, Fresno, Editor
A Profile of the Automobile and Motor Vehicle Industry: Innovation, Transformation,
Globalization by James M. Rubenstein
A Profile of the Software Industry: Emergence, Ascendance, Risks, and Rewards by
Sandra A. Slaughter
A Profile of the Performing Arts Industry: Culture and Commerce by David H. Gaylin
A Profile of the Hospitality Industry by Betsy Bender Stringam and Charles Partlow
A Profile of the Global Airline Industry by Kent Gourdin
A Profile of the Steel Industry: Global Reinvention for a New Economy, Second Edition
byPeter Warrian
Business Expert Press has over 30 collection in business subjects such as finance,
marketing strategy, sustainability, public relations, economics, accounting, corporate
communications, and many others. For more information about all our collections, please
visit www.businessexpertpress.com/collections.
Business Expert Press is actively seeking collection editors as well as authors. For
more information about becoming an BEP author or collection editor, please visit www
.businessexpertpress.com/author

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