Managing in a Global Economy

6-MIGEFall2019Lesson9IA5_2_.pptx

Managing in a Global Economy Spring 2021

Industry Assignment 5

Industry financing

What is the industry’s predominant form of financing ?

Does the industry finance itself via supplier credit, debt – short or long term, or stock?

What share of the industry’s revenue is listed?

Industry financing – what I am looking for

Where does the industry get its money for:

Operations

Capital investment

Are the industry current operations financed by the:

Suppliers

Banks

Clients – advance or cash payment

Industry financing – what I am looking for

Is capital investment financed by:

Shareholders – private

Shareholders – public

Banks - private

Banks - public

Government support programs

Share of revenue listed

How big is the sector’s global revenue?

What part of that revenue is generated by

companies whose stock is listed on stock exchanges?

Changes in market structure – what I am looking for

Is there a generational shift in the sector ?

Will the younger generation keep the company private ?

Will the younger generation sell part of the

stock on the stock exchanges?

Will the younger generation sell the company to a larger group?

Subdivision of paper

Financing 70 %

Market structure 30 %

This will vary with the sector

This will not be the same for:

Luxury goods

As compared to

Pharmaceuticals