Business and Financial Analysis of Arctic Paper Munkedals AB

UNIVERSITY WE·ST

Business and Financial Analysis of

'Arctic Paper Munkedals AB'

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Abstract

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Acknowledgement 9 ">j ; +V> / ?=<"=? / XQ>"><Z? _ ? _ "Vj >+ Q· • =+_ • ?Z/ ? >j ? V<[ [ +X> +& +<X V<[ ?X~"V+XVi I Xb T+V? B?XXQz . <=?V Q=Z I Xb D• LQX 2j +ZQLQ=Z?j • ++ &+X >j ?"X "=~Q•<QL• ? · +=>X"L<>"+=V Q=Z / <"ZQ=· ? +&&?X?Z >+ <V >j X+</ j +<> >j "V X?V?QX·j _ +X• b qj ? · j Q•• ?=/ "=/ "Z?QVi · +=· ?[ >V Q=Z · +=V>X<· >"~? &??ZLQ· • [ X+~"Z?Z >+ <V j Q~? / X?Q>•\ Z?~?• +[ ?Z +<X V• "•• V "= _ X">"=/ X?V?QX· j [ Q[ ?XV Q=Z <[ / XQZ?Z +<X • =+_ • ?Z/ ?b 9 ? _ j +• ?j ?QX>?Z• \ Q[ [ X?· "Q>? Q=Z VQ\ >j Q=• \ +< &+X >j ? X?• ?=>•?VV ?&&+X>Vi ; ?=>+XVj "[ i Q=Z [ ?XV?~?XQ=· ? \ +< j Q~? Vj +_ = >+ <Vb

9 ? Q•V+ _ Q=> >+ Q· • =+_ • ?Z/ ? Q•• &Q· <• >\ Q=Z V>Q&& +& ' · +=+; "· V Q=Z Cq Q> 3 ="~?XV">\ 9 ?V> &+X >j ?"X V<[ [ +X> >j X+</ j +<> +<X P QV>?XV I ?/ X?? [ X+/ XQ; ; ? "= C=>?X=Q>"+=Q• c <V"=?VVb C= QZZ">"+=i _ ? _ +<• Z •"• ? >+ >j Q=• c ?=/ > T+=V+= Q=Z w•• ? - Q=Z?= &+X >j ?"X V<[ [ +X> Q=Z QZ~"· ? >j X+</ j +<> >j ? [ ?X"+Zb - [ ?· "Q• >j Q=• V / +?V >+ >j ? ; Q=Q/ ?; ?=> Q=Z V>Q&& +& DX· >"· 8Q[ ?X P <=• ?ZQ•V Dc i ?V[ ?· "Q•• \ >j ? B"=Q=· "Q• P Q=Q/ ?Xi P Q/ =<V 5 <• >; Q= Q=Z >j ? D· · +<=>"=/ P Q=Q/ ?Xi P "· j Q?• d X+=j +• ; _ j + j Q~? Z?~+>?Z >j ?"X >"; ? >+ [ X+~"Z? <V _ ">j Q•• >j ? "=&+X; Q>"+= _ ? =??Z?Z &+X >j ? ·+; [ • ?>"+= +& >j "V >j ?V"V [Q[ ?Xb

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Table of Contents DLV>XQ· > " D· • =+_ • ?Z/ ?; ?=>b "" qQL• ? +& · +=>?=>V """ DLLX?~"Q>"+=V ~ M C=>X+Z<· >"+= M MbM cQ· • / X+<=Z M Mbk 8X+L• ?; Z"V· <VV"+= a Mbn 8<X[ +V? S Mba , ?V?QX·j 7 <?V>"+=V S MbS I ?•"; ">Q>"+= p Mbp 0"; ">Q>"+= p Mbv w<>•"=? v k 0">?XQ><X? , ?~"?_ J kbM P +Z?• V &+X XQ>"+ Q=Q•\ V"V Mf kbMbM 0"] <"Z">\ , Q>"+V Mf kbMbk 0?~?XQ/ ? , Q>"+V Mk kbMbn 8X+&">QL"•">\ , Q>"+V Mn kbMba DVV?> 3 >"•"z Q>"+= , Q>"+V Ma kbMbS d Q[ ">Q• P QX•?> , Q>"+V MS · kbk qj ?+X?>"· Q• X?~"?_ +& >XQZ">"+=Q• XQ>"+ Q=Q•\ V"V Mp kbn B"=Q=·"Q• ~?XV<V =+=g&"=Q=·"Q• [ ?XV[ ?· >"~?V MJ kba c Q•Q=· ?Z - · +X? · QXZ kf kbS qj ?+X?>"· Q• X?~"?_ +& c Q•Q=· ?Z - · +X?· QXZ kM kbp 8?V>•? D=Q•\ V"V kk kbv 8+X>?XsV &"~? &+X·?V ; +Z?• kk kbvbM 3 =Z?XV>Q=Z"=/ 8+X>?XsV &"~? &+X·?V ; +Z?• kn n , ?V?QX·j P ?>j+ZV bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb kS nbM D[ [ X+Q· j bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb kS nbMbM 7 <Q=>">Q>"~? D[ [ X+Q· j kS nbMbk 7 <Q•">Q>"~? D[ [ X+Q· j kp

nbk I Q>Q d +• • ?· >"+= kp nbn I Q>Q D=Q•\ V"V kv nbnbM P +Z?• V &+X XQ>"+ Q=Q•\ V"V kv nbnbk P +Z?• &+X c Q=• X<[ >· \ >?V> :D• >; Q=sV ­ gV· +X?G nf nbnbn P +Z?• &+X c <V"=?VV D=Q•\ V"V nM a , ?V<• >V Q=Z D=Q•\ V"V bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb nn abM , Q>"+ Q=Q•\ V"V nn abMbM 0"] <"Z">\ , Q>"+V nn abMbk 0?~?XQ/ ? , Q>"+V np abMbn 8 X+&">QL"• ">\ , Q>"+V af abMba DVV?> 3 >"•"z Q>"+= , Q>"+V an abMbS d Q[ ">Q• ; QX• ?> XQ>"+V bap abk c Q=• X<[ >·\ >?V> :D• >; Q=sV ­ gV· +X?G bav abn c <V"=?VV D=Q•\ V"V aJ

abnbM P "VV"+= - >Q>?; ?=> +& DX· >"· 8 Q[ ?X P <=• ?ZQ•V Dc baF

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Abbreviations

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B"=Q=· "Q• XQ>"+ Q=Q•\ V"V "V +=? +& >j ? L?V> >++• V +& [ ?X&+X; Q=· ? ?~Q•<Q>"+= +& Q=\ · +; [ Q=\ :5 +VVQ= r 5 QL"L kf Mf Gb c +L , ?"VV :k f Mf G _ j "• ? _ X">"=/ QL+<> ; Q=Q/ "=/ =<; L?XV V>Q>?Z >j Q> u=<; ?XQ· \ gg>j "=• "=/ "= =<; L?XVgg"V Q ~">Q•i ~">Q• V• "•• u "= ; Q=Q/ "=/ L<V"=?VVb q j ? u=<; L?XVu · Q= L? V??= "= >j ? Q<Z">?Z &"=Q=· "Q• V>Q>?; ?=>V _ j "· j "V [ X?[ QX?Z Q==<Q•• \ "= • "=? _ ">j V>Q><>+X\ X?] <"X?; ?=>Vb C= Q V<X~?\ L\ P · 2 "=V?\ "= kf f Fi "> _ QV =+>?Z >j Q> Q•• ?\ ?V QX? += · +X[ +XQ>?g&"=Q=· ? Z?[ QX>; ?=>V QV >j ?\ QX? QV• ?Z >+ · <> · +V>Vi X?QVV?VV X"V• Vi Q=Z · +[ ? _ ">j >j ? Z??[ <=· ?X>Q"=>\ / ?=?XQ>?Z L\ >j ? · <XX?=> ?· +=+; "· · X"V"Vb DX· >"· 8 Q[ ?X P <=• ?ZQ•V Dc "V •+· Q>?Z "= P <=• ?ZQ•i QL+<> Mf f • ; =+X>j +& 1 +>?L+X] i "V +=? +& >j ? ; +V> L?Q<>"&<•• \ gV"><Q>?Z [ Q[ ?X ; "•• V "= >j ? _ +X•Zb I <X"=/ >j ? •QV> kf \ ?QXV >j ?X? j Q~? L??= ; Q%+X "=~?V>; ?=>Vi Q=Z >j ? ; "•• >+ZQ\ "V +=? +& >j ? ; +V> ?=~"X+=; ?=>Q•• \ g&X"?=Z• \ [ Q[ ?X ; "•• V "= >j ? _ +X•Zb It [ X+Z<· ?V j "/ j g] <Q•">\ <=· +Q>?Z / XQ[ j "· Q• [ Q[ ?X <=Z?X >j ? LXQ=Z =Q; ? P <=• ?=b q+ZQ\ i DX· >"· 8Q[ ?X P <=• ?ZQ•V Dc "V +=? +& ' <X+[ ?sV •?QZ"=/ ; Q=<&Q· ><X?X +& <=· +Q>?Z [ Q[ ?Xi _ ">j V"/ ="&"· Q=> ?■[ +X>V >+ ; Q=\ [ QX>V +& >j ? _ +X•Zb qj ?\ j Q~? QL+<> nSf ?; [ • +\ ??V Q=Z JS % +& >j ? [ X+Z<· >"+= ~+• <; ? / +?V &+X ?■[ +X>b qj ? •QX/ ?V> ; QX• ?>V QX? 1 ?X; Q=\ i - _ ?Z?=i >j ?

3 2 Q=Z >j ? c ?=?• <■ ·+<=>X"?Vb qj ? [ X+Z<· >"+= · Q[ Q· ">\ "V Q[ [ X+■b Mpf f f f >+=V [ ?X \ ?QX Q=Z "> "V C- w Maf f M ·?X>"&"?Z :?=~"X+=; ?=>Q• ; Q=Q/ ?; ?=> V\ V>?; Gb

1.2 Problem discussion

DX·>"· 8Q[ ?X P <=• ?ZQ•V Dc "V <=Z?X >j ? / X+<[ i DX· >"· 8Q[ ?X - Db qj ? / X+<[ · <XX?=>•\ j QV &+<X [ Q[ ?X ; "• • Vi "= - _ ?Z?= :>_+ [ Q[ ?X ; "•• VGi "= 8+• Q=Z Q=Z "= 1 ?X; Q=\ b I <X"=/ >j ? [ ?X"+Z +& >j "V ·QV? V><Z\ i >j ? · +; [ Q=\ _ QV Mf f o &Q; "•\ +_ =?Zb 5 +_ ?~?Xi Q&>?X >j "V [ ?X"+Zi >j ? ; Q%+X">\ Vj QX?j +• Z?X +& DX·>"· 8Q[ ?X "= P <=• ?ZQ• "V >j ? - _ ?Z"Vj · +; [ Q=\ DX· >"· 8Q[ ?X Dc i _ j "•? kSo +& Vj QX?V QX? "= >j ? j Q=ZV +& V>+· • ?■· j Q=/ ? Vj QX?j +• Z?XV :_ _ _ bQX·>"· [ Q[ ?Xb· +; Gb qj "V [ Q[ ?X V><Z"?V >j ? [ ?X&+X; Q=· ? +& >j ? · +; [ Q=\ &+X >j ? \ ?QXV kf f ngkf f v _ j ?= >j ? · +; [ Q=\ _ QV &<•• \ <=Z?X &Q; "•\ +_ =?XVj "[ b C= · +; [ Q="?V "= _ j "· j +_ =?XVj "[ "V V?[ QXQ>?Z &X+; ; Q=Q/ ?; ?=>i Q•"/ ="=/ >j ? / +Q•V +& ; Q=Q/ ?; ?=> Q=Z +_ =?XVj "[ "V Z"&&"· <• >b - <· j sQ/ ?=· \ [ X+L• ?; s ; Q\ QX"V? _ j ?= >j ?X? "V Q · +=&•"· > +& "=>?X?V> L?>_??= · X?Z">+XVi Vj QX?j +• Z?XV Q=Z ; Q=Q/ ?; ?=> L?· Q<V? +& Z"&&?X"=/ / +Q•Vb d Q= Q= Q=Q•\ V"V +& >j ? Q==<Q• X?[ +X> Q; +=/ +>j ?X >j "=/ V Vj +_ j +_ _ ?•• >j ? ; Q=Q/ ?; ?=> j QV •?[ > >j ?"X [ X+; "V? +& Vj QX?j +• Z?XV _ ?Q•>j ; Q■"; "z Q>"+= Q=Z >+ +>j ?X V>Q• ?j +• Z?XVU 5 QVV?= r 5 QL"L :kf Mf G V>Q>?Z >j Q> s&"=Q=· "Q• XQ>"+ Q=Q•\ V"V "V +=? +& >j ? L?V> >++• V +& [ ?X&+X; Q=· ? ?~Q•<Q>"+= +& Q=\ · +; [ Q=\ sb D• >; Q= :MFpJG Q•V+ Q&&"X; V >j Q> s bbb XQ>"+ Q=Q•\ V"V · Q= L? <V?&<• "= >j ? [ X?Z"· >"+= +& &Q"• <X? :LQ=• X<[ >·\ >?V>Gbs 0Q· • +& >"; ?• \ i Q· · <XQ>? Q=Z <[ g>+gZQ>? &"=Q=· "Q• V>Q>?; ?=>V >+ · +; [ Q=\ sV V>Q• ?j +• Z?XVi · X?Z">+XV · Q= =?/ Q>"~?• \ "; [ Q· > += >j ? X?[ <>Q>"+= +& >j ? · +; [ Q=\ _ j "· j "= ><X= · Q= • "; "> >j ? "=~?V>; ?=> &X+; [ X+V[ ?· >"~? "=~?V>+XVb c <"•Z"=/ >j ? · +=&"Z?=· ? •?~?• +& >j ? V>Q• ?j +• Z?XV L\ [ X+~"Z"=/ Q· · <XQ>? Q=Z X?•"QL• ? &"=Q=· "Q• V>Q>?; ?=>V _ "•• [ +V">"+= >j ? · +; [ Q=\ >+ "; [ X+~? ">V &"=Q=· "Q• [ ?X&+X; Q=· ? Q=Z Q>>XQ· > "=~?V>+XVb P ?QV<X?; ?=> j QV L??= X?· +/ ="z ?Z QV Q · X<· "Q• ?• ?; ?=> >+ "; [ X+~? L<V"=?VV [?X&+X; Q=· ? :- j QX; Qi kf f SGb

VQ>"V&Q· >"+=i "=>?X=Q• · +=>X+• [ X+· ?VV Q=Z • ?QX="=/ e/ X+_ >j b q j "V X?V?QX· j [ Q[ ?X _ "•• QZ+[ > >j ? LQ•Q=· ?Z V· +X?· QXZ ; +Z?• &+X L<V"=?VV Q=Q•\ V"V [ <X[ +V? +& DX· >"· 8 Q[ ?X P <=• ?ZQ•V Dc b 5 ?X? >j ? · +=· ?[ > +& uLQ•Q=· ?u X?&?XV >+ >j ? =??Z +& <V"=/ Z"&&?X?=> ; ?QV<X?V Q=Z [ ?XV[ ?·>"~?V >j Q> >"?Z >+/ ?>j ?X / "~? Q j +• "V>"· ~"?_ +& >j ? +X/ Q="z Q>"+= :2 Q[ • Q= Q=Z . +X>+=i MFFpGb

1.3 Purpose

qj ? [ <X[+V? +& >j "V X?V?QX·j [ Q[ ?X "V >+ ·QXX\ +<>z

• D= Q=Q•\ V"V +& >j ? &"=Q=· "Q• V>Q>?; ?=>V +& sDX·>"· 8Q[ ?X P <=• ?ZQ•V Dc s <V"=/ s, Q>"+ D=Q•\ V"Vs Q=Z s­ gV· +X?s ; +Z?• Vb g I ?V· X"L? >j ? ~QX"Q>"+= Q· X+VV >j? &"~?g\ ?QX [ ?X"+Z +& V><Z\ L\ <V"=/ XQ>"+ Q=Q•\ V"Vb g c Q=• X<[ >·\ >?V> <V"=/ D• >; Q=sV ­g- · +X?b • c <V"=?VV Q=Q•\ V"V +& sDX·>"· 8Q[ ?X P <=• ?ZQ•V Dc s <V"=/ >j ? c Q•Q=· ?Z - · +X?· QXZ L<V"=?VV ; +Z?•b 1.4 Research Questions

C= >j "V >j ?V"V [ Q[ ?Xi >j ? &+• • +_ "=/ X?V?QX· j ] <?V>"+=V QX? &+X; <• Q>?Z &+X >j ? XQ>"+ Q=Q•\ V"Vi ] <Q•">Q>"~? Q=Q•\ V"V Q=Z &+X >j? D• >; Q=sV ­ V· +X? LQ=• X<[ >·\ z

, Q>"+ D=Q•\ V"V r D• >; Q=sV LQ=• X<[ >·\ >?V>z >j ? X?V?QX· j ] <?V>"+=V &+X >j ?V? QX? V>Q>?Z L?• +_ b

•

• 9 j Q> "V >j ? [ X+&">QL"•">\ [ ?X&+X; Q=· ? +& >j ? ·+; [ Q=\ U

• 9 j Q> "V >j ? X?V<• > +& c Q=• X<[ >·\ >?V> <V"=/ D• >; Q=sV ­ g- · +X?U

7 <Q•">Q>"~? D=Q•\ V"Vz >j ? X?V?QX·j ] <?V>"+=V &+X ] <Q•">Q>"~? Q=Q•\ V"V QX? V>Q>?Z L?• +_ b

• 9 j Q> Z+?V DX·>"· 8Q[ ?X j Q~? "= [ • Q· ? >+ [ X?~?=> &XQ<Z Q=Z ; "="; "z ? X"V• +& &"=Q=· "Q• • +VVU

• 9 j Q> ?&&+X>V Z+?V DX·>"· 8Q[ ?X ?; [ • +\ >+ VQ>"V&\ ">V ·<V>+; ?XVU

• 9 j Q> V>XQ>?/ "?V Z+?V DX·>"· 8Q[ ?X ?; [ • +\ >+ X?>Q"= ?■"V>"=/ • =+_ gj +_ Q=Z [ X?[ QX? &+X &<><X? ] <Q•">\ "; [ X+~?; ?=>VU

• I +?V >j ? ·+; [ Q=\ sV ·<V>+; ?X VQ>"V&Q· >"+=i "=>?X=Q• [ X+·?VV Q=Z &<><X? • ?QX="=/ & / X+_ >j QX? Q•"/ =?Z _ ">j >j ? ·+; [ Q=\ sV ; "VV"+= V>Q>?; ?=>U 1.5 Delimitation qj ? V· +[ ? +& >j ? X?V?QX· j [ Q[ ?X "Vz • B"~?g\ ?QX &"=Q=· "Q• Q=Q•\ V"V :kf f ngkf f vG +& sDX·>"· 8Q[ ?X P <=• ?ZQ•V Dc sb • c <V"=?VV D=Q•\ V"V +& sDX·>"· 8Q[ ?X P <=• ?ZQ•V Dc sb 1.6 Limitation qj ?X? QX? ~QX"+<V >\[ ?V +& &"=Q=· "Q• XQ>"+V >j Q> · Q= L? <V?Z "= Q=Q•\ V"=/ >j ? · +; [ Q=\ b I <? >+ >j ? V· +[ ? +& >j "V _ +X• Q=Z •"; ">?Z >"; ? &+X >j "V X?V?QX· j [ Q[ ?Xi _ ? · Q==+> · QXX\ +<> ?■>?=V"~? Q=Q•\ V"Vb 5 +_ ?~?Xi _ ? j Q~? · j +V?= XQ>"+ ~QX"Q=>V >j Q> VQ>"V&\ >j ? "=&+X; Q>"+= [ X+~"Z?Z L\ >j ? &"=Q=· "Q• V>Q>?; ?=>Vb I <? >+ >j ? <="] <?=?VV

+& >j ? · +; [ Q=\ i _ ? QX? =+> QL• ? >+ · +; [ QX? >j ? &"=Q=· "Q• [ ?X&+X; Q=· ? Q=Q•\ V"V +& >j ? DX· >"· P <=• ?ZQ•V Dc _ ">j Q=+>j ?X [ Q[ ?X ; Q=<&Q· ><X"=/ · +; [ Q=\ b

1.7 Outline

qj ? X?V?QX·j [ Q[ ?X j QV &"~? V?· >"+=Vi >j Q> "Vi "=>X+Z<· >"+=i •">?XQ><X? X?~"?_ i X?V?QX· j ; ?>j +ZVi X?V<• >VeQ=Q•\ V"V Q=Z X?· +; ; ?=ZQ>"+=V e·+=·• <V"+=e &<X>j ?X V><Z\ b C= >j ? &+••+_ "=/ V?· >"+=Vi >j ? ~QX"+<V XQ>"+V Q=Z L<V"=?VV ; +Z?• V _ "•• L? X?~"?_ ?Z Q=Z Z"V· <VV?Z >+/ ?>j ?X _ ">j >j ? X?V?QX· j ; ?>j +ZV <V?Z "= >j "V V><Z\ Q=Z j +_ ZQ>Q "V Q=Q•\ z ?Z QV _ ?•• QV >j? X?V<• >V Q=Z X?· +; ; ?=ZQ>"+=Vb qj ? X?&?X?=· ?V +& L++• Vi QX>"·• ?V Q=Z +>j ?X ; Q>?X"Q•V <V?Z QV Q X?&?X?=· ? / <"Z? QX? [ <> "= >j ? sQ[ [ ?=Z"· ?Vs [ QX> +& >j ? X?V?QX· j [ Q[ ?Xb

2. Literature Review

D· · +XZ"=/ >+ BXQV?X r wX; "V>+= :kf MMGi L<V"=?VV &"=Q=· "Q• V>Q>?; ?=>V j Q~? L+>j >j ? [ +>?=>"Q• +& L?"=/ ; Q[ V Q=Z ; Qz ?Vb DV Q ; Q[ i &"=Q=· "Q• V>Q>?; ?=>V j Q~? >j ? · Q[ QL"•">\ +& X?[ X?V?=>"=/ Q &"X; sV &"=Q=· "Q• j ?Q•>j Q=Z QVV"V>"=/ ; Q=Q/ ?XV "= Z?· "V"+=- ; Q• "=/ b w= >j ? +>j ?X j Q=Zi ; Q=\ &Q· >+XV •"• ? · +; [ • ?■">"?V "= Q· · +<=>"=/ [ +• "· "?V <=Z?X•\ "=/ >j ? [ X?[ QXQ>"+= +& &"=Q=· "Q• V>Q>?; ?=>V · Q= L? +~?X_j ?• ; "=/ Q=Z "=>"; "ZQ>"=/ :BXQV?X "L"ZGb B"=Q=· "Q• V>Q>?; ?=>V Q=Z >j ?"X Q· · +; [ Q=\ "=/ =+>?V ·+=>Q"= Q _ ?Q•>j +& <V?&<• "=&+X; Q>"+= Q=Z · Q= L? <V?Z >+ Q=V_ ?X ; Q=\ ] <?V>"+=V X?• Q>"=/ >+ "=~?V>; ?=>Vi [ X+&">QL"• ">\i •"] <"Z">\i • ?~?XQ/ ? Q=Z +[ ?XQ>"=/ ?&&"· "?=· \ b d +X[ +XQ>? Q==<Q• X?[ +X>V ·+=>Q"= Q; +=/ +>j ?X X?[ +X>Vz g qj ? LQ•Q=· ? Vj ??> g C=· +; ? V>Q>?; ?=>i g - >Q>?; ?=> +& Vj QX?j +• Z?XVs ?] <">\i g - >Q>?; ?=> +& · QVj &•+_ V g . +>?V >+ >j ? &"=Q=· "Q• V>Q>?; ?=>Vi g uP Q=Q/ ?; ?=> I "V· <VV"+= Q=Z D=Q•\ V"Viu g qj ? Q<Z">+XsV X?[ +X> Q=Z Q=\ +>j ?X Z"V· X?>"+=QX\ ">?; b

qj ? LQ•Q=· ? Vj ??>i Q•V+ · Q•• ?Z >j ? V>Q>?; ?=> +& &"=Q=· "Q• [ +V">"+=i · +=>Q"=V uQ V<; ; Q>"+= +& >j ? QVV?>V +_ =?Z L\ >j ? &"X; i >j ? •"QL"•">"?V "=· <XX?Z >+ &"=Q=· ? >j ?V? QVV?>Vi Q=Z >j ? Vj QX?j +• Z?XVs ?] <">\ X?[ X?V?=>"=/ >j ? Q; +<=> +& &"=Q=· "=/ [ X+~"Z?Z L\ +_ =?XV Q> Q V[ ?· "&"· ZQ>?bu qj ? B"=Q=· "Q• D· · +<=>"=/ - >Q=ZQXZV c +QXZ :BD- c G Z?&"=?V QVV?>V QV [ X+LQL• ? &<><X? ?· +=+; "· L?=?&">V +L>Q"=?Z +X · +=>X+••?Z L\ Q= ?=>">\ QV Q X?V<• > +& [ QV> >XQ=VQ· >"+=V +X ?~?=>Vb 0"QL"•">"?V QX? [ X+LQL• ? &<><X? VQ· X"&"· ?V +& ?· +=+; "· L?=?&">V QX"V"=/ &X+; Q= ?=>">\sV [ X?V?=> +L•"/ Q>"+=V >+ >XQ=V&?X QVV?>V +X [X+~"Z? V?X~"· ?V >+ +>j ?X ?=>">"?V "=b >j ? &<><X? QV Q X?V<• > +& [ QV> >XQ=VQ· >"+=V +X ?~?=>Vb - j QX?j +• Z?XsV ?] <">\ "V >j ? X?V"Z<Q• "=>?X?V> "= >j ? QVV?>V +& Q= ?=>">\ >j Q> X?; Q"=V Q&>?X Z?Z<· >"=/ ">V •"QL"•">"?V :, ?~V"=?i d +•• "=V r T+j =V+=i kf f SN p159).

qj ? +[ ?XQ>"=/ [ ?X&+X; Q=· ? +& Q L<V"=?VV &"X; j QV >XQZ">"+=Q•• \ L??= ; ?QV<X?Z L\ ">V V<· · ?VV "= / ?=?XQ>"=/ ?QX="=/ V :>j ? uL+>>+; • "=?uGb C=~?V>+XVi · X?Z">+XV Q=Z Q=Q•\ V>V ?Q/ ?X•\ Q_ Q"> · +; [ Q="?Vs "=· +; ? V>Q>?; ?=>Vb BXQV?X r wX; "V>+= :kf MMG =+>?Z >j Q> >j ? ] <Q•">\ +& X?[ +X>?Z &"=Q=· "Q• "=&+X; Q>"+= "V Q · X">"· Q• ?• ?; ?=> "= ?~Q•<Q>"=/ &"=Q=· "Q• V>Q>?; ?=> ZQ>Qb 8QV> &"=Q=· "Q• [ ?X&+X; Q=· ?i / ++Z +X LQZi "V =+> =?· ?VVQX"•\ Q / ++Z [ X?Z"· >+X +& _ j Q> _ "• • j Q[ [ ?= _ ">j Q · <V>+; ?X "= >j ? &<><X?b P Q=Q/ ?; ?=> · Q= "=&•<?=· ? >j ? +<>·+; ? +& X?[ +X>?Z ?QX="=/ V "= _ Q\ V >j Q> ; Q\ =+> L?V> X?[ X?V?=> ?· +=+; "· X?Q•">\ +X >j ? &<><X? +[ ?XQ>"=/ [ +>?=>"Q• +& >j ? &"X; b qj "V ?■[ • Q"=V V+; ? +& >j ? Q· · +<=>"=/ V· Q=ZQ•V "= j "V>+X\ Q=Z · +=>?; [ +XQX\ >"; ?Vb - +; ? +& >j ?V? QX?QV "=·• <Z?N Q· · +<=>"=/ · j +"· ?Vi ?V>"; Q>?V Q=Z %<Z/ ; ?=>Vi · j Q=/ ?V "= Q· · +<=>"=/ ; ?>j +ZV Q=Z QVV<; [ >"+=Vi Z"V· X?>"+=QX\ ?■[ ?=Z"><X?Vi =+=gX?· <XX"=/ >XQ=VQ· >"+=Vi =+=g+[ ?XQ>"=/ / Q"=V Q=Z •+VV?Vi X?~?=<? Q=Z ?■[ ?=V? X?· +/ =">"+= >j Q> Z+ =+> ; Q>·j · QVj &•+_ b

C= Q=Q•\ z "=/ L<V"=?VV?Vi "> "V ?VV?=>"Q• >j Q> >j ? &"=Q=· "Q• V>Q>?; ?=> Q=Q•\ V> · +=V"Z?XV >j ? ] <Q•">Q>"~? QV _ ?•• QV >j ? ] <Q=>">Q>"~? · +; [ +=?=>Vb qj ? j "/ j ?X >j ? ] <Q•">\ +& &"=Q=· "Q• X?[ +X>"=/ i >j ? ; +X? <V?&<• _ "•• L? >j ? "=&+X; Q>"+= &+X L<V"=?VV Z?· "V"+= ; Q• "=/ :BXQV?X r wX; "V>+=i kf MMGb - ?· +=Z• \ i &"=Q=· "Q• V>Q>?; ?=> Q=Q•\ V"V [ X+~"Z?V "=&+X; Q>"+= >+ ; Q=\ V>Q• ?j +• Z?XV "= >j ? &"X; _ j "· j ?=QL• ?V >j ?; >+ QZ%<V> >j ?"X X?• Q>"+=Vj "[ _ ">j >j ? &"X; Q· · +XZ"=/ • \ b B+X "=V>Q=· ?i · X?Z">+XV :>XQZ? · X?Z">+XVi LQ=• V ?>·Gi QX? <• >"; Q>?• \ · +=· ?X=?Z _ ">j >j ? QL"• ">\ +& >j ? &"X; >+ ; Q• ? "=>?X?V> Q=Z [ X"=· "[ Q• [ Q\ ; ?=>V += L+XX+_ ?Z &<=ZVb P +V> "=~?V>+XV ·+=V"Z?X >j ? V?· <X">\eVj QX?V +& >j ? &"X; &+X [ <X· j QV? +X •"] <"ZQ>"+= _ j ?= ?V>"; Q>"+= +& >j ? · +; [ Q=\ sV &<><X? ?QX="=/ V V>X?Q; "=Z"· Q>?V j "/ j X?><X=V "= X?• Q>"+= >+ >j ? X"V• >Q• ?=b 3 V"=/ j "V>+X"· Q• &"=Q=· "Q• ZQ>Q >+ &+X?· QV> >j ? &<><X?i +=? · Q= Z?>?X; "=? "& >j ? "=~?V>; ?=> "V V+<=Zb P Q=Q/ ?; ?=> • ++• V Q> >j ? &"=Q=· "Q• V>Q>?; ?=> ZQ>Q >+ Z?>?X; "=? j +_ _ ?•• >j ? &"X; [ ?X&+X; ?Z Q=Z _ j \ U 9 j Q> QX? >j ? V>X?=/ >jV Q=Z _ ?Q• =?VV?V +& >j ? · +; [ Q=\ sV &"=Q=· "Q• [ +V">"+=U 9 j Q> ·j Q=/ ?V · Q= L? "; [ • ?; ?=>?Z >+ "; [ X+~? &<><X? [ ?X&+X; Q=· ?VU :BXQV?X & wX; "V>+=i kf MMGb P Q=\ >++• V Q=Z >?· j ="] <?V ·Q= L? <V?Z >+ · +=~?X> &"=Q=· "Q• V>Q>?; ?=> ZQ>Q "=>+ &+X; Q>V >j Q> &Q· "•">Q>? >j ? ?~Q•<Q>"+= +& Q &"X; sV

..

..

[ ?X"+Z _ +<• Z L? +& •"; ">?Z ~Q•<? _ j ?= >j ?X? _ +<• Z L? =+ X?&?X?=· ? [ +"=> &+X Z?>?X; "="=/ · j Q=/ ?V "= Q ·+; [ Q=\ sV &"=Q=· "Q• X?· +XZ +~?X >"; ?b

qj "V X?V?QX· j _ "•• [ "· • +<> V+; ? +& >j ? >++• V Q=Z L<V"=?VV ; +Z?• V "= ?~Q•<Q>"=/ >j ? [ ?X&+X; Q=· ? +& DX· >"· 8Q[ ?X P <=• ?ZQ•V Dc &X+; kf f n >+ kf f vb B+X &"=Q=· "Q• Q=Q•\ V"Vi "> _ "•• L? ·Q>?/ +X"z ?Z <=Z?X &"~? j ?QZ"=/ Vz g - j +X>g>?X; • "] <"Z">\ XQ>"+V g 0?~?XQ/ ? : · Q[ ">Q• V>X<· ><X?G XQ>"+V g 8X+&">QL"•">\ XQ>"+V g DVV?> <>"•"z Q>"+= XQ>"+V g d Q[ ">Q• ; QX• ?> XQ>"+V

2.1 Models for ratio analysis

qj ? ] <Q=>">Q>"~? Q=Q•\ V"V _ "•• <V? >j ? &+• • +_ "=/ XQ>"+Vz

2.1.1 Liquidity Ratios

0"] <"Z">\ XQ>"+V QX? <V?Z >+ QVV?VV >j ? QL"•">\ +& >j ? &"X; >+ ; ??> ">V Vj +X>g>?X; &"=Q=· "Q• +L• "/ Q>"+=V _ j ?= Q=Z QV >j ?\ &Q•• Z<?b qj ?V? XQ>"+V QX? +& [ X"; ? "=>?X?V> >+ Vj +X>g>?X; • ?=Z?XVb - j +X>g>?X; • "] <"Z">\ XQ>"+V QX? =<; ?X+<Vb qj ? ·+; ; += +=?V QX?z QG d <XX?=> , Q>"+ It "V Q•V+ · Q•• ?Z _ +X• "=/ · Q[ ">Q• XQ>"+b d <XX?=> XQ>"+ j ?• [ V "= QVV?VV"=/ >j ? j ?Q•>j +& Q · +; [ Q=\ L\ <=Z?XV>Q=Z"=/ j +_ ?QV"•\ >j ? &"X; · Q= ><X= QVV?>V >+ · QVj >+ X?[ Q\ Vj +X>g>?X; +L•"/ Q>"+=Vb qj ? · <XX?=> XQ>"+ ; Q\ L? ?■[ X?VV?Z QVz d <XX?=> QVV?>V gNg d <XX?=> • "QL"• ">"?V d <XX?=> QVV?>V QX? · +; [ +V?Z ; Q"=• \ +& · QVj i Vj +X>g>?X; ; QX• ?>QL• ? V?· <X">"?Vi

..

· +; [ +V?Z ; Q"=• \ +& Q· · +<=>V [ Q\ QL• ?i Z"~"Z?=ZVi >Q■?V [ Q\ QL• ? Q=Z Vj +X>g>?X; LQ=• • +Q=Vb I ?[ ?=Z"=/ += >j ? "=Z<V>X\ Q XQ>"+ +& kz M "V Q / ++Z +=?b 5 +_ ?~?Xi "& >_+ V"; "•QX · +; [ Q="?V ?Q· j j QZ kz M XQ>"+Vi L<> +=? j QZ ; +X? · QVj Q; +=/ ">V ·<XX?=> QVV?>Vi >j Q> &"X; _ +<• Z L? L?>>?X QL• ? >+ [ Q\ +&& ">V Z?L>V ] <"· • ?X >j Q= >j ? +>j ?Xb

qj ? · <XX?=> XQ>"+ j QV •+=/ L??= · +=V"Z?X?Z QV Q / ++Z "=Z"· Q>+X +& >j ? &"X; sV •"] <"Z">\ L<> "> "V •"; ">?Z L\ >j ? =Q><X? +& ">V · +; [ +=?=>V :BXQV?X r wX; "V>+=i kf MMGb C> "V V<V· ?[ >"L• ? >+ u_ "=Z+_ ZX?VV"=/ uN >j Q> "Vi "> "V V<V· ?[ >"L• ? >+ ; Q="[ <• Q>"+= "=>?=Z?Z >+ Q[ [ X+■"; Q>? Q uZ?V"XQL• ?u · <XX?=> XQ>"+b D• V+i >j ? LQ•Q=· ? Vj ??> "V [ X?[ QX?Z QV Q> Q [ QX>"· <• QX ZQ>? Q=Z >j ? Q· ><Q• Q; +<=> +& • "] <"Z QVV?>V ; Q\ ~QX\ ·+=V"Z?XQL• \ &X+; >j ? ZQ>? += _ j "· j >j ? LQ•Q=· ? Vj ??> "V [ X?[ QX?Zb B<X>j ?X; +X?i Q· · +<=>V X?· ?"~QL• ? Q=Z "=~?=>+X\ ; Q\ =+> L? >X<• \ • "] <"Z L?· Q<V? "> ; Q\ L? LQZ Z?L>Vi "=~?=>+X\ +& "=&?X"+X ~Q•<? +X +LV+• ?>? ">?; Vb LG 7 <"· • :D· "Zgq?V>G , Q>"+ C> "V Q ; +X? X"/ +X+<V >?V> +& Vj +X>g>?X; V+• ~?=· \ b qj "V XQ>"+ V<L>XQ· >V "=~?=>+X"?V &X+; · <XX?=> QVV?>Vi L?&+X? Z"~"Z"=/ >j Q> &"/ <X? "=>+ •"QL"•">"?Vb qj ? "Z?Q "V >+ Vj +_ j +_ _ ?•• · <XX?=> •"QL"•">"?V QX? · +~?X?Z L\ · QVj Q=Z L\ ">?; V _ ">j Q X?QZ\ · QVj ~Q•<?b C=~?=>+X\i += >j ? +>j ?X j Q=Zi >Q• ?V >"; ? >+ V?•• Q=Z · +=~?X> "=>+ • "] <"Z QVV?>Vb d +; [ Q="?V •"• ? >+ j Q~? Q> • ?QV> Q Mz M XQ>"+i L<> &"X; V _ ">j • ?VV >j Q= >j Q> ; Q\ L? _ ?•• "& >j ?\ ><X= >j ?"X "=~?=>+X"?V +~?X ] <"· • • \ b qj ? ] <"· • XQ>"+ ; Q\ L? ?■[ X?VV?Z QVz 7 <"· • DVV?>V gzg d <XX?=> •"QL"• ">"?V 7 <"· • QVV?>V QX? · +; [ +V?Z +& · QVj i Vj +X>g>?X; ; QX•?>QL• ? V?· <X">"?V Q=Z X?· ?"~QL• ?Vb qj ? ] <"· • XQ>"+ "V "=>?=Z?Z >+ &+· <V += "; ; ?Z"Q>? • "] <"Z">\b c +>j >j ? ] <"· • XQ>"+ Q=Z >j ? · <XX?=> XQ>"+V j Q~? L??= · X">"· "z ?Z &+X &Q"•<X? >+ "=· +X[ +XQ>? "=&+X; Q>"+= QL+<> >j ? >"; "=/ Q=Z ; Q/ ="><Z? +& &<><X? · QVj &•+_ V :, "Qj "gc ?• • Q+<"i

· G d QVj · +=~?XV"+= · \ ·• ? q j ? · QVj · +=~?XV"+= · \ ·• ? +X =?> >XQZ? · \ ·• ? j ?• [ V >j ? Q=Q•\ V> <=Z?XV>Q=Z _ j \ · QVj &•+_ / ?=?XQ>"+= j QV "; [ X+~?Z +X Z?>?X"+XQ>?Z L\ Q=Q•\ z "=/ >j ? • ?\ LQ•Q=· ? Vj ??> Q· · +<=>V :"b?b Q· · +<=> X?· ?"~QL• ?i "=~?=>+X\ Q=Z Q· · +<=> [ Q\ QL• ?G >j Q> Q&&?· > · QVj &•+_ &X+; +[ ?XQ>"=/ Q· >"~">"?Vb It · +; [ X"V?V >j X?? XQ>"+V QV Vj +_ = L?• +_ z d d d x D~?XQ/ ? · +•• ?· >"+= [ ?X"+Z

y

I Q\ V "=~?=>+X\ j ?• Z g I Q\ V [Q\ QL• ? +<>V>Q=Z"=/ 9 j ?X?z D~?XQ/ ? ·+•• ?· >"+= [ ?X"+Z x . ?> Q· · +<=>V X?· ?• ~QL• ?

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D~?XQ/ ? ZQ"•\ VQ•?V I Q\ V "=~?=>+X\ j ?• Z x C=~?=>+X\y D~?XQ/ ? ZQ"•\ · +V> +& VQ•?V I Q\ V [Q\ QL• ? +<>V>Q=Z"=/ x D· · +<=>V [ Q\ QL• ? gzg D~?XQ/ ? ZQ"•\ · +V> +& VQ•?V 2.1.2 Leverage Ratios

0?~?XQ/ ? XQ>"+V QX? <V?Z >+ QVV?VV >j ? •+=/ g>?X; V+• ~?=· \ X"V• +& >j ? &"X; i >j Q> "Vi ">V QL"• ">\ >+ ; ??> "=>?X?V> Q=Z [ X"=· "[ Q• [ Q\ ; ?=>V += • +=/ g>?X; +L•"/ Q>"+=V QV >j?\ L?· +; ? Z<?b qj ?V? XQ>"+V QX? +& [ X"; ? "=>?X?V> >+ • +=/ g>?X; • ?=Z?XV Q=Z L+=Zj +• Z?XVb QG I ?L>g>+g' ] <">\ , Q>"+V qj ?X? QX? >_+ [ +VV"L• ? Z?L>g>+g?] <">\ XQ>"+Vz "G 0+=/ g>?X; Z?L> >+ ?] <">\ x 0+=/ g>?X; Z?L> gzg - j QX?j +• Z?XsV ?] <">\ ""G q+>Q• Z?L> >+ ?] <">\ x :d <XX?=> • "QL"• ">"?V

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LG I ?L> XQ>"+ x q +>Q• •" QL"•">"?V y q +>Q• QVV?>V

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>Q■?V [Q"ZH y C=>?X?V> [ Q"Z ?G d QVj &• +_ QZ?] <Q· \ x Kd QVj &• +_ &X+; +[ ?XQ>"=/ Q· >"~">"?V "b?b d BwH yKd Q[ ">Q•

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Z"~"Z?=Z [ Q"ZH

2.1.3 Profitability Ratios

qj ? [ X+&">QL"•">\ XQ>"+V [ +X>XQ\ >j ? QL"•">\ +& >j ? &"X; >+ ?&&"· "?=>• \ <V? >j ? · Q[ ">Q• · +; ; ">>?Z L\ Vj QX?j +• Z?XV Q=Z •?=Z?XV >+ / ?=?XQ>? X?~?=<?V "= ?■· ?VV +& ?■[ ?=V?Vb

It ; ?QV<X?V +~?XQ•• ?&&"· "?=· \ Q=Z [ ?X&+X; Q=· ?b qj ?V? XQ>"+V QX? · +=V?] <?=>•\ +& "=>?X?V> >+ L+>j Vj QX?j +• Z?XV Q=Z L+=Zj +• Z?XVb

QG , Q>? +& , ?><X= += DVV?>V

qj ? XQ>? +& X?><X= += QVV?>Vi Q•V+ · Q•• ?Z >j ? XQ>? +& X?><X= += "=~?V>; ?=> :, wCG "V >j ? XQ>"+ >j Q> ; ?QV<X?V >j ? ?&&"· "?=> <V? +& >j ? QVV?>V L\ >j ? &"X; >+ / ?=?XQ>? ?QX="=/ Vb

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LG , ?><X= += ' ] <">\

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g qj ? =?> [ X+&"> ; QX/ "= ; ?QV<X?V [ X+&">QL"•">\ Q&>?X · +=V"Z?XQ>"+= +& Q•• X?~?=<? Q=Z ?■[ ?=V?i "=· • <Z"=/ "=>?X?V>i >Q■?Vi Q=Z =+=g+[ ?XQ>"=/ ">?; Vb

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2.1.4 Asset Utilization Ratios

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2.1.5 Capital Market Ratios

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2.2 Theoretical review of traditional ratio analysis

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· +=· "V? \ ?> · +; [ • ?>? V>+X\ QL+<> >j ? Q· j "?~?; ?=> Q=Z [ ?X&+X; Q=· ? +& >j ? +X/ Q="z Q>"+= >+_ QXZ ">V ; "VV"+= Q=Z / +Q•Vb It [ X+~"Z?V Q j +•"V>"· ~"?_ +& _ j Q> "V j Q[ [ ?="=/ "= >j ? +X/ Q="z Q>"+=b

It "V =+>?_ +X>j \ >j Q> &"X; V"z ? · Q= Q&&?· > &"=Q=· "Q• [ ?X&+X; Q=· ? Q=Z "> "V ; ?QV<X?Z L\ >j ? =<; L?X +& ?; [ • +\ ??V "= >j ? &"X; Q=Z ">V QVV?>V LQV?b qj ? V"z ? +& >j ? &"X; "V Q= "; [ +X>Q=> &Q· >+X QV "> "=&• <?=· ?V ">V · +; [ ?>">"~? [ +_ ?Xi V; Q•• &"X; V j Q~? •?VV [ +_ ?X >j Q= •QX/ ? &"X; Vi j ?=· ?i >j ?\ ; Q\ &"=Z "> Z"&&"· <• > >+ · +; [ ?>? _ ">j >j ? •QX/ ? &"X; V [ QX>"· <• QX•\ "= j "/ j • \ · +; [ ?>">"~? ; QX• ?>Vb D• V+i >j ? / X+_ >j +& >j ? ; QX• ?> V?X~?Z L\ >j ? &"X; ; "/ j > · +=>X"L<>? >+ &"=Q=· "Q• [ ?X&+X; Q=· ? :I <XQ=Z Q=Z d +?<XZ?X+\ i kf f aGb qj <V &QXi Q=?· Z+>Q• X?[ +X>V += LQ•Q=· ?Z V· +X?· QXZ j Q~? L??= · +=· ?=>XQ>?Z "= >j ? &+Xg[ X+&"> V?· >+X Q=Z ; Q=\ &"X; V j Q~? &+<=Z >j ? LQ•Q=· ?Z V· +X?· QXZ Q <V?&<• >++• &+X &+· <V"=/ Q=Z V<V>Q"="=/ >j ?"X · +=>"=<+<V "; [ X+~?; ?=> ?&&+X>Vb qj ? Z"Q/ XQ; L?• +_ Vj +_ V >j ? &+<X ; Q%+X QV[ ?· >V +& >j ? LQ•Q=· ?Z V· +X?· QXZz

Diagram of Kaplan n Norton's balanced scorecard

Bo13nc.ad Sca,e C3rcl

q j ? c Q•Q=· ?Z - · +X?· QXZ j QV L??= · X">"· "z ?Z L\ ; Q=\ V· j +• QXVb c QXX :k f f v G QX/ <?V >j Q> >j "V ; +Z?• "V _ ?• • g• =+_ = >+ j Q~? "; [ • ?; ?=>Q>"+= [ X+L• ?; Vb D• V+i "> Z+?V=s> [ <> ?=+</ j ?; [ j QV"V += X?V<• >V ~?XV<V V>XQ>?/ "?Vi "> Z+?V=s> +&&?X >j ? V>?[ V >+ ; ?QV<X? Z?V"/ = Q=Z "> Z+?V=s> Vj +_ >j ? [ X+· ?VV +& ; ?QV<X? "; [ • ?; ?=>Q>"+=b 5 +_ ?~?Xi >j ? c Q•Q=· ?Z - · +X?· QXZ "V =+> Q•• LQZb c QXX :k f f v G QVV?X>V >j Q> 2 Q[ • Q= r . +X>+=sV c Q•Q=· ?Z - · +X?· QXZ _ "•• / + Z+_ = "= j "V>+X\ QV >j ? V?X"+<V L?/ "=="=/ +& =+=g&"=Q=· "Q• [ ?X&+X; Q=· ? ; ?QV<X?; ?=> "= >j ? · +X[ +XQ>? _ +X•Zb It "V X?Q•• \ >j ? X+QZ; Q[ &+X • "=• "=/ _ j Q> j Q[ [ ?=V &X+; ZQ\ g>+gZQ\ "= Q · +X[ +XQ>"+= >+ ">V V>XQ>?/ "· i •+=/ ?X >?X; Z"X?· >"+=i >j X+</ j Z?• "L?XQ>? · +=~?XVQ>"+= QL+<> V>XQ>?/ \ Z?V"/ =b qj ? X?V?QX· j [ Q[ ?X _ "•• <V? >j "V ; +Z?• >+ Q=Q•\ z ? >j ? L<V"=?VV [?X&+X; Q=· ? +& DX· >"· 8Q[ ?X P <=• ?ZQ•V Dc b 2.6 PESTLE ANALYSIS

8' - q0' X?[ X?V?=>V 8+•">"· Q•i ' · +=+; "· i - +· "+g· <• ><XQ•i q?· j =+• +/ "· Q•i 0?/ Q• Q=Z ' =~"X+=; ?=>Q• &Q· >+XV "; [ Q· >"=/ += DX· >"· 8Q[ ?X P <=• ?ZQ•V Dc b qj "V _ "•• L? j ?• [ &<• >+ Q=Q•\ z ? >j ? ?■>?X=Q• Q=Z "=>?X=Q• ?=~"X+=; ?=> >j Q> DX· >"· 8Q[ ?X +[ ?XQ>?Vi "= +XZ?X >+ j Q~? Q LQ•Q=· ?Z ~"?_ +& >j ? &"X; Q=Z >+ L? QL• ? >+ ; Q• ? [ XQ· >"· Q• X?· +; ; ?=ZQ>"+=V >+ >j ? ; Q=Q/ ?; ?=>b

2.7 Porter's five forces model

BX+; P "=Z>++• Vb· +; i >j ? 8+X>?XsV S B+X· ?V >++• "V Q V"; [ • ? L<> [ +_ ?X&<• >++• &+X <=Z?XV>Q=Z"=/ _ j ?X? [ +_ ?X •"?V "= Q L<V"=?VV V"><Q>"+=b qj "V "V <V?&<• i L?· Q<V? "> j ?• [ V >+ <=Z?XV>Q=Z L+>j >j ? V>X?=/ >j +& >j ? · <XX?=> · +; [ ?>">"~? [ +V">"+=i Q=Z >j ? V>X?=/ >j +& Q [ +V">"+= >j ? &"X; "V · +=V"Z?X"=/ ; +~"=/ "=>+b 9 ">j Q ·• ?QX <=Z?XV>Q=Z"=/ +& _ j ?X? [ +_ ?X •"?Vi >j ? &"X; · Q= >Q• ? &Q"X QZ~Q=>Q/ ? +& Q V"><Q>"+= +& V>X?=/ >j i "; [ X+~? Q V"><Q>"+= +& _ ?Q• =?VVi Q=Z Q~+"Z >Q• "=/ _ X+=/ V>?[ Vb qj "V ; Q• ?V "> Q= "; [ +X>Q=> [ QX> +& >j ? [ • Q=="=/ >++• • ">b d +=~?=>"+=Q•• \ i >j ? >++• "V <V?Z >+ "Z?=>"&\ _ j ?>j ?X =?_ [ X+Z<· >Vi V?X~"· ?V +X L<V"=?VV?V j Q~? >j ? [ +>?=>"Q• >+ L? [ X+&">QL• ?b 5 +_ ?~?Xi "> · Q= L? ~?X\ "•• <; "=Q>"=/ _ j ?= <V?Z >+ <=Z?XV>Q=Z >j ? LQ•Q=· ? +& [ +_ ?X