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OBU have announced the prescribed industry sectors for Period 39 and 40 for topics 8 & 15
The new Information Pack is also available on ACCA global. Please note that the revised Appendix 1 gives more detailed information about what is required in terms of the Assessment Criteria both to pass and for higher grades so is worth consulting
For the above topics and submission dates you MUST use organisations from the following specific sectors, based on the Industry Classification Benchmark (ICB):
The Industry Classification Benchmark is being updated with a new structure adopted on 1 July 2019. The codes used below are the new codes (the codes in the older version are given in brackets).This link maps new codes to the older version of the definition of the sectors
https://www.ftserussell.com/files/support-document/current-new-icb-structuralconversion-map-detail
This is the link to the older version of the sectors
https://research.ftserussell.com/products/downloads/ICBStructure-Eng.pdf
1. 4010 Automobiles & Parts (3350 in older version) 4010020 Automobiles (3353 in older version) – Makers of motorcycles and passenger vehicles, including cars, sport utility vehicles (SUVs) and light trucks. Excludes makers of heavy trucks, which are classified under Commercial Vehicles & Trucks, and makers of recreational vehicles (RVs and ATVs), which are classified under Recreational Products
40101025 Auto parts (3355 in older version) – Manufacturers and distributors of new and replacement parts for motorcycles and automobiles, such as engines, carburetors and batteries. Excludes producers of tires, which are classified under Tires.
40101015 Tires (3357 in older version) – Manufacturers, distributors and retreaders of automobile, truck and motorcycle tires.
2. 4030 Media (5500 in older version) 40301010 and 40301035 Broadcasting & Entertainment (5553 in older version) – Producers, operators and broadcasters of radio, television, music and filmed entertainment. Excludes movie theatres, which are classified under Recreational Services.
40301020 Media agencies (5555 in older version) – Companies providing advertising, public relations and marketing services. Includes billboard providers and telemarketers.
40301030 Publishing (5557 in older version) – Publishers of information via printed or electronic media.
3. 502060 Industrial Transportation (2770 in older version) 50206010 Trucking (2779 in older version) – Companies that provide commercial trucking services. Excludes road and tunnel operators, which are classified under Transportation Services, and vehicle rental and taxi companies, which are classified under Travel & Tourism.
50206020 Railroads* (2775 in the older version) – Providers of industrial railway transportation and railway lines. Excludes passenger railway companies, which are classified under Travel & Tourism. (Topic 8 or 15 * see note below).
50206025 Railroad equipment (2753 in the older version)50206030 Marine Transportation (2773 in the older version) – Providers of on-water transportation for commercial markets, such as container shipping. Excludes ports, which are classified under Transportation Services, and shipbuilders, which are classified under Commercial Vehicles & Trucks.
50206040 Delivery Services – Operators of mail and package delivery services for commercial and consumer use. Includes courier and logistic services primarily involving air transportation.50206060 Transportation Services – Companies providing services to the Industrial Transportation sector, including companies that manage airports, train depots, roads, bridges, tunnels, ports, and providers of logistic services to shippers of goods. Includes companies that provide aircraft and vehicle maintenance services.
* if you are considering topic 8 or 15 please be aware that this sub-sector may be difficult as much infrastructure is publicly owned. There may not be sufficient information to support your analysis, or the accounts may be very complex.
Hello GilianM,
Hope you are doing fine.
I am planning to submit my RAP for period 39.
I have chosen Honda(Pakistan) and Toyota (Pakistan). They come under Automobiles and parts.
For Honda, I have got the recent annual report year ending march 2019, however for Toyota year ending is June 2018. Should I wait for the issue of the annual report which will generally be in September 2019.
Or should I just start by comparing Honda (2019, 2018,2017) to Toyota (2018,2017,2016)Can you please guide ?
Also can you give me some guidance within media advertising and publishing industries ?
Within media could it be news channels ?
You should endeavour to have the annual report dates as closely aligned as possible. I always recommend that students start their work with the models (PEST & SWOT are best for Topic 8) This is because increasingly markers expect to see a connection between the application of models and their influence and impact on strategic management decisions. These decisions frequently lie behind the resulting financial performance. This being the case you could start your work by using Honda 2019 and complete the PEST and SWOT and start the financial analysis. When Toyota 2019 is available you wil then be able to update your graphs with this info and do the comparator analysis
Hello GillianM,
I am planning to submit my RAP for period 39.
I wanted to use an Insurance company.
I would like to know if it is acceptable to do so and under which industry and code will it fall under?
Thanks and Regards
Unfortunately for you as an insurance company is not an automobile producer, a media company or involved in industrial transportation it does not fall into any of the specified Industry categories so you cannot use such a company. To do so would result in an instant fail for Topic 8 or 15
Dear Trephena,
Any recommendation on an organization that I could use?
Thanks and Regards
This is something that you would need to discuss with your mentor. It would perhaps depend to some extent on which sector interests you most
Thank you for the reply.
I was looking for another competitor so that I could start as early as possible, There is suzuki pakistan year ending is December 2018.
So If i take Honda (Year ending: March 2019) with Suzuki. Will that be much better ?
@gillianm said:
You should endeavour to have the annual report dates as closely aligned as possible. I always recommend that students start their work with the models (PEST & SWOT are best for Topic 8) This is because increasingly markers expect to see a connection between the application of models and their influence and impact on strategic management decisions. These decisions frequently lie behind the resulting financial performance. This being the case you could start your work by using Honda 2019 and complete the PEST and SWOT and start the financial analysis. When Toyota 2019 is available you wil then be able to update your graphs with this info and do the comparator analysisAs I explained there is a lot you can do with the main company right now and you would still have 2 months+ to bring in the comparator analysis when Toyota’s report becomes available in September..
It is up to you but you need two companies that are competing in a similar market – is Suzuki selling mostly cars or motorcycles in Pakistan? If motorcycles then it might make it more difficult to make valid comparisons as the market for these is not going to be same as that for cars.
Dear madam,
Could you please give me some sample objectives and questions regarding balance scorecard model?
Thanks!In terms of Topic 8 (or 15) the Balanced Scorecard is not a good model to use. The Balanced scorecard is more an internal measure whereas you need to look at strategic models. Try using a PEST and SWOT or possibly Porter’s 5 forces.
In terms of Topic 8 (or 15) the Balanced Scorecard is not a good model to use. The Balanced scorecard is more an internal measure whereas you need to look at strategic models. Try using a PEST and SWOT or possibly Porter’s 5 forces.
Thanks for your reply madam. I started my part 3 with health care industry overview followed by PEST & SWOT analysis. Since health care is a service provider I thought of including balance scorecard model as well. Then under balance scorecard financial perspective I did the ratio analysis. Will that be okay or as advised by you should I remove balance scorecard model?
Thanks!
First: it is better to apply 2 models really well than 3 superficially (less is more)
Secondly unless you work for the organisation how do you think you can assess internal processes reliably?
Thirdly markers groan when they see someone has tried to use the Balanced Scorecard model as it is almost invariably badly applied
Just take my advice – and unles you do have inside information to help with point 2, do not go there!
Hello GillianM,
I am choosing automobile for period 39. However, the organization i chose has an enormous portfolio. But i want to only focus on motorcycles. How do i do it provided the financial statements consist of figures from all other products including motorcycle s? Also the same goes for the competitor organisation. Thanks
The simple answer is that unless the motor cycle operations are run and reported as a separate company you will not be able to do this. If the financial statements include cars and motor cycles you have no option but to use the financial statements that cover the whole company or choose different companies or a different industry sector.
Hi Gillian,
I am planning to apply for RAP for cycle 39.
I am choosing Pharma care for the same. Can you guide how to proceed with OBU thesis.I am confused whether to start with ratios or analysis and how I will assemble all the structure together.
No please do not start with the ratio analysis. The whole point of Topic 8 is that you need to recognise the importance of strategic management decisions. These are taken on the basis of the environment that the company operates in.
So you need to study the effect of the business environment and how this has influenced the business strategies that have been adopted and the impact of the factors on the subsequent financial performance. Therefore you should start Part 3 with a good PEST analysis and follow this with a SWOT. When you have done this you should have a better understanding of what has caused the changes in the trends. Furthermore markers expect to see a student making connections between the business and financial analyses – as I used to say to students – the two are not supposed to be conducted in isolation from each other they are linked.
As for the structure: a basic one is in the information pack but it is a general one outlining what goes into each part.
Hi @gillianm,
I sent you a mail via your website’s contact form.
Could you help link up with a Topic 8 mentor.
Hi GillianM,
I’m looking forward to submit my report for period 39 (topic 8)
Q1) i have selected DHL and UPS, do they fall under this code (50206040 Delivery Services) because as per the description of this sub-sector they meet the criteria but i could not understand, how do i refer to the ICS codes?
Q2) i know we need to compare the financial analysis with the competitor, do we need to compare the business analysis with the competitor too? like main firm’s strengths vs competitor’s strength? or the business analysis should only focus the main firm?
Thank you for your time.
Regards
I am not sure I understand (1). You use the link to see the classification details and wouldn’t normally need to refer to it in the report but if you did then (ftsterussel.com n.d.) – unless there is a year given; listing would take the same format a proper title like “Industry Classification Benchmark where you would include the link (no URLS or links in the report itself)
Q2. Start Part 3 with a PEST(LE) analysis where probably the same factors affects both companies as they operate in a similar environment. The SWOT which logically comes next is about the main company. When doing your comparative financial analysis you need to consider how management strategic decisions and policies have impacted on performance and link these to the business analysis where possible. So although there is no formal SWOT in the report for the second company an awareness of its strengths and weaknesses is useful and may help explain some differences in their performance
Hi GillianM
1. May i use DHL and UPS companies under delivery services sector?
2. and in order to conduct business analysis may i read the 3 years annual reports or just the annual report of 2018 is fine?
3. how do i present the text if that is taken from the annual report may i cite the text? if, so how? or may i paraphrase it?.
Thank you for your time
Regards
502060. Is the main classification and 50206040 (502060-40) Delivery Services – is a sub classification. Included in 50206040 are: Operators of mail and package delivery services for commercial and consumer use. Includes courier and logistic services primarily involving air transportation. Therefore DHL and UPS fall within the so are suitable.
To do a good business analysis you need to learn as much about the company as possible. Read the Chairman/CEO/ directors reports least the last 3 years and note their strategic plans
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