Using Kellogg’s and General Mills, put yourself in the place
of an analyst who has been asked to perform an analysis of the company and
provide a recommendation to management.
Use ratio analysis, common size analysis, or other
techniques to determine areas in which the company is doing well as well as
areas that management should look at. Then, present your analysis and
recommendations in the form of a paper or memorandum to management.
Perform a complete DuPont
analysis of the company and compare it to the standard. The DuPont analysis might provide guidance as
to what particular areas of the company should be examined next and what ratios
should be calculated. If the DuPont analysis does not reveal anything useful,
you might wish to calculate several of the ratios that are available to you.
The completed document should be about 1,000 words long. In the
paper, you do not have to explain the ratios in depth. You may assume that the
reader has a basic understanding of finance and knows what ratio analysis is,
although he or she might not be able to list all the ratios and how to
calculate them from memory. The reader is not going to want a lot of background
about financial analysis. He or she really wants information that he or she can
apply to the given situation. Refrain from using stock market valuation ratios.
Provide a reference to where you got that data not only
for your subject company but for the other company or standard to which you
compared your company.