Analysis of the UK Water Industry

The Interim Project Report 30%
Rationale
This assignment is based on an individual piece of work.  The work undertaken directly supports your project.
Task
Part 1
−        Project title
−        Rationale for Industry choice
−        Rationale for chosen companies
−        Rationale for the choice of ratios to be used in the analysis. (AT LEAST 10 FINANCIAL AND 3 NON-FINANCIAL RATIOS)
−        Prior research (i.e. mini-literature review (to include a detailed environmental scan, competition analysis, or PEST analysis: include analysis on political, economic, social and technical

aspects of your chosen industry).
−        Calculate the ratios that you will be using (USE AT LEAST 10 FINANCIAL AND 3 NON-FINANCIAL RATIOS). Note performance can also be related to non financial ratios so your project may

include a wide variety of performance criteria. You are NOT required to analyze the ratios at this stage but to produce a comprehensive table/summary of all the data you will be using (5 years

data is a minimum)
−        Plan/timetable (within project time frame)
−        References (not included in word count)
The interim report should be typed and should indicate the total number of words, which must NOT exceed 2,500 words. The proposal can be spiral bound or merely stapled in the top left hand

corner. Use an appropriate front sheet on handing in the interim report.
Assessment Criteria
–      Convey a sense of purpose about the project.
–      Evidence of higher level skills in the choice of industry and companies
–      Sound rationale for the use of ratios and other methods to determine success of the company. Using financial ratios alone would be poor
–      Provide evidence of reading and enquiry
–      Systematic and thorough work
–      Presentation – especially the ability to convey ideas succinctly.

Advice
You should firstly identify the industry of your choice and select at least 3 and no more than 4 companies which you wish to explore. You should then start to undertake an environmental scan

of the industry. It is very important that you justify the industry of choice and the selection of the companies. You will be marked on the quality of the evidence submitted. It is also NOT

acceptable to generalise on the environmental scan and you must provide some evidence to justify your conclusions. For example if you are discussing macro economic factors such as inflation

and interest rates you should provide evidence on the likely impact of FUTURE inflation/interest rates on performance.

FINAL PROJECT Report
Rationale
This assignment is based on an individual piece of work.
Task
You are required to prepare a project that has the following elements:
–      An Introduction giving the layout of the report.
–      A chosen Industry and firms within the industry.
–      3/4 chosen companies within the industry and a rationale for their selection.
–      An environmental scan of the industry (PEST analysis)*
–      Ratio analysis/other financial analysis, to determine the financial strength of the company in areas such as profitability, liquidity, investor ratios and share price performance.
–      A template that compares the financial performance of the best/worst company with the PEST analysis. This therefore will constitute a SWOT profile. Use appropriate scales for this

comparative study.
–      A discussion of the relative performance of each of the chosen companies in relation to the template above.
–      An objective conclusion.
–      A bibliography.
The main purpose of the Environmental scanning is to overview the key factors that are influencing companies within the industry. This will also enable you to structure your answers around a

proven model
The Project should be typed and should indicate the total number of words, which must NOT exceed 6,000 words.
Assessment Criteria
–        convey a sense of purpose about the project.
–        provide evidence of reading and enquiry
–        Systematic and thorough work
–        Presentation – especially the ability to convey ideas succinctly.
On the NILE site for this module are examples of projects.
To be awarded a first class mark it is essential that the submission meets with the following criteria
•         Presentation and referencing must be excellent
•         All components of the project have been completed
o   Evidence of critical appraisal in the selection of the industry
o   Reporting of financials should be excellent and not confined to accounting ratios but to include other information such as share price, industry averages, industry performance criteria such a

consumer satisfaction surveys
o   A PEST analysis that is detailed with supporting evidence. For example a five year inflation/interest rate chart and forecast.
o   A SWOT analysis on the industry
o   Selection of the best and worst company must be based on the above analysis. Simple use of financial performance may not fully identify the best company. What format should be used? You

will need to justify this choice
For example assume that we have chosen the airline industry and the best financial performance is by EasyJet. By analysing the PEST with the internal SWOT you should be able to

determine the opportunities and threats that firms in the industry may be subject to. For example the airline industry may be vulnerable to high fuel costs and other running costs. A rise in

taxation on air travel would have a negative effect on the industry BUT EasyJet may have the latest lean burn engines and is mainly short haul travel that may mitigate these threats

.