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Case Analysis of Unidentified Industries--2006

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`Case analysis of Unidentified Industries--2006

Although different industries have their own characteristic, we can see some common features in certain industries. Thus we divide them into 4 kinds: Service, retail trade, manufacturer and online seller. List as below:

Classification of Different Industries and their features

1. Service (Table 1)
Advertising agency (AG)
Commercial bank
Health maintenance organization (HMO)
→Their services are based on human resources. They do not need a lot of PP&E or inventories and lots of money (like long-term debt). Since they provide their service first and the customers always pay at the end of the service, their account should be high. So now we want to find an industry that is zero …show more content…

For Online direct factory to customer personal computer vendor, since they sell most of their products to business ways and they do not produce things actually, so their inventory turnover should be very high, like C (79.8). So we can easily distinguish it from online bookseller.

Thus
Online bookseller →A
Online direct factory to customer personal computer vendor →C

5. Others (Table 5)
Restaurant chain
Computer software developer
There are only two industries left: H and F
F has a higher Common stock, since computer software developer company like Apple, they has really high common stock, so we can guess that F is Computer software developer, while H should be restaurant chain.

Restaurant chain → H
Computer software developer → F

6. Final results:

A → Online bookseller
B → Bookstore Chain
C → Online direct factory to customer personal computer vendor
D → Pharmaceutical manufacturer
E → Health maintenance organization
F → Computer software developer
G → Advertising agency
H → restaurant chain
I → Retail grocery chain
J → Department store chain
K → Retail drug chain
L → Electric and gas utility
M → Airline
N → Commercial bank

Table 1
|Balance Sheet Percentages |E |G |M |N |
|1.Cash and marketable securities |8

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