Industry Sectors

Question 1

Sectors (10)

Answer 1

1) Basic Materials

2) Consumer Discretionary

3) Utilities

4) Consumer Staples

5) Energy

6) Financial Services

7) Health Care

8) Industrial Durables

9) Tech

10) Telecommunications

Question 2

Consumer Discretionary

Answer 2

Apparel - VESTURARIO PAI
Automotive
Hotels
Restaurants

Question 3

Examples of Consumer Staples industry sector (4)

Answer 3

Food
Beverage
Tobacco
Personal care

Question 4

Technology

Answer 4

Computers

Electronic entertainment

Internet services

Question 5

Venture capital includes what type firms stage

Answer 5

Seed
Early
Mezzanine

Question 6

Non cyclical sectors

Answer 6

Utilities
Health care
Food

Question 7

What is the industry experience curve?

Answer 7

Shows COST
———-
Unit of cumulative output

cost starts high and starts to decline until outputs are rising

Question 8

What is Economies of scale?

Answer 8

Firms already producing at lower cost per unit

Improve the industry experience curve

Question 9

What means LOW levels of CAPACITY in terms of supply and demand?

Answer 9

Demand is overcoming supply, (prices are rinsing)

Question 10

5 forces of Michael Porter

Answer 10

1. rivalry among competitors
2. Threat of entry
3. Threat of substitute
4. Power of Buyers
5. Power of suppliers

Question 11

2 Competitives strategies of Michael porter

Answer 11

1. Cost leadership (low cost) - gain market share
2. Product or service differentiation: Earn some prime over different product

Question 12

Peer group companies are those wich:

Answer 12

Have similars:
Cost structure
Access of capital
Business activity

Question 13

More tech changes are most likely to demand:

Answer 13

1. Change in the educational curriculum
   (Workers will need to adapt)
2. Change in production and relative demand

Question 14

What high costs of exit does to an industry?

Answer 14

Overcapacity of companies.
Falling prices

Question 15

What is a sector rotation strategy?

Answer 15

TIMING investments to take Business cycle conditions and/or fundamentals

Question 16

What commercial systems are more often than government?

Answer 16

They are update more often

Question 17

Construction of a peer group are:

Answer 17

Subjective process
Logical starting point begin with a
Commercially available system

System - identify companies that may have comparable business activity

Question 18

An industry with HIGH BARRIERS and WEAK PRICING POWER probably has

Answer 18

High barriers to exit.
It is difficult to find someone with cash to buy the operations