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What is an Organization Structure?A company, by classification, is an artificial person shaped by law and has long-lasting subsistence. Therefore, organizations need to be structure and method determined rather than individual driven. Consequently, there has to be a clear ladder of choice-making in an organization, and it should not be reliant on one or two individuals. If an organization relies on one or two people, there is also a threat to investors called "Keyman, if one or more individuals are not there tomorrow." A market analyst should consider how to make the decision-making progression work in the organization. Is There a Clear Chain Of Plans In Place For Key Positions?While missing in most of the reports today, these characteristics would play a significant position in businesses' future success or failure. What Are The Significant Business Drivers/Success Factors?Each industry/segment has an explicit set of factors influencing its success and prediction. For instance, The retail segment intimately observes falls and same-store sales (SSS), Banking works on Net Interest Income (NII)/ Net Interest Margin (NIM), Telecom negotiations rotate approximately, Average Revenue Per User (ARPU), Hotels focus on average room tariffs and tenancy points. Online businesses rely on internet access and change people's shopping behavior. Buying a company's shares lacking information on these significant drivers could mean purchasing a likely loser. Analysts should be able to put their ideology on important drivers of the industry and analyze them in great detail for the business under contemplation. What Are The Risks In The Business?Promoters care to talk of the great future they vision and create in your mind. Very infrequently would they talk about the threat linked with the expedition of changing their image into a reality? For instance, borrowing from the international market at low rates looks attractive; on the other hand, adding the viewpoint of currency risk to the talk turns the whole discussion. There are risks in every business, ranging from business aspects to operational aspects to execution and others. The stakes may be apparent and known, or they may be unknown. What Is The Compliance Orientation Of The Company?By guidelines, having a compliance officer in the company is a must. Likewise, pronouncing results every quarter, giving particulars of shareholding blueprint, handling investors' complaints in a proper method, revealing allotment of money raised from investors in an IPO/FPO, on condition that in sequence on the modification in the management's shareholding in the company, among others are all accepted to be carried out by regulation and are a division of compliance needs. A few companies are significant compliance adjusted and go behind rules and regulations in words and spirit. However, most companies pay no awareness of the subject and are frequently pulled by regulators/exchanges and other regulatory and government bodies for non-compliance.
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