Step 1 Check example excel and do what it did
Collect segments data for DOW INC, year 2018, and then make analysis
Step 2 Answer following questions
(1) Was your company a MANUFACTURING COMPANY?
(2) What is the type of product diversification of your assigned company, based on the percent breakdown of Sales by products. 1= SINGLE BUSINESS. 95% or more revenues come from a single business.
2 = DOMINANT BUSINESS. Between 70% and 95% or revenues come from a single business.
3 = RELATED CONSTRAINED. Less that 70% of revenues com from dominant business, and all businesses share ACTIVITIES, related to production, distribution or technology.
4= RELATED-LINKED. Less than 70% of revenues come from dominant business and businesses share limited activities but share COMPETENCIES ACROSS BUSINESSES.
5 = UNRELATED. Less that 70% of revenues come from the dominant business and there are no common links between businesses.
(3) What is the type of Geographic diversification of your assigned company. This is obtained by calculating the TRIAD sales (Americas, Europe and Asia) based on the percent breakdown of Sales by location (obtained from Hoovers online “Product and Operations.”).
1= ONE REGION (at least 50% of their sales in ONE region of the triad).
2= BI-REGIONAL (at least 20% of their sales in each of TWO regions, but less than 50% in any one region of the TWO regions).
3 = TREE REGIONS (having sales of 20% or more in each of the three parts of the triad, but less than 50% in any one region of the TRIAD)
Step 3 Calculate ROIC% AND WACC% from “GURUFOCUS.COM” for YEAR 2018