Different types of Financial Models

Right from my undergraduate days, I had always been curious about financial models and how to prepare them. My mindset was that it was tough and only a genius could do it. It wasn’t until I was actually thrown into the mix that I realized it was pretty easy. At my former place of work, United Capital Plc, the project finance team was tasked with building complex models for presentation to both the client and potential lenders to aid negotiations and structuring of the deals. In my current role also as a strategy analyst in one of the big four telecommunication companies in Nigeria, Etisalat, I am in charge of building and updating a model for the purpose of improving the company’s EBITDA.
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What is Strategy?

Strategy is the direction and scope of an organization in a changing business environment through the configuration of its resources and competence with a view to meeting stakeholder expectation.

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Porter’s Business Strategies

Michael porter with regard to business level strategy proposes two generic competitive strategies for outperforming other companies in the competitive space in a particular industry. The strategies are generic in the sense that it can be utilized by any firm within an industry notwithstanding its size. The two strategies are lower cost and differentiation strategies.
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Porters 5 forces

Porters five forces is most suitable when analyzing the profitability or attractiveness of an industry where a company is considering entering into. It is always advisable for the company to use the five forces in order to determine if it is a worthwhile venture. It is also useful for a company operating in an industry but considering an exit from said industry.

So what are porter’s 5 forces?
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Questions and Answers on Social and Marketing Research 

Hi guys, today we would be taking a question and answer series to sharpen up your social and marketing research skills. Lets begin:

Question 1

What is marketing research?

Answer 1

Marketing Research is the conceptualization of a marketing problem followed by objective and systematic collection, recording, analysis, interpretation and reporting of data and information for the purpose of clarifying the problem and solving it.

Marketing research may also be defined as the objective gathering, recording and analysis of all facts relating to the transfer and sale of products and services from the producer to the consumer or end users with the aim of producing answers that are consistent with accepted theoretical principles. [Read more…] about Social and Marketing Research

Equity Valuation (Value concept)

Hello people, hope this post meets you well.  Today, we will be taking a look at equity valuation, focusing on value concepts. As the week progresses, we will delve into equity risk premium and relate porter’s five forces with equity valuation. Now let’s begin with what equity valuation is.

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Capital Market Efficiency

Efficiency as it relates to capital markets occurs when share prices at all times reflect all available relevant information. From the above, we can deduce that if a market is efficient, any new information available in the market which relates to a security of a particular firm will be incorporated into the share price speedily and rationally.
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