Passport GMID for Market Entry Strategies

Passport GMID is one of our premier market research databases. Learn how to utilize this tool to its fullest when working to craft a market entry strategy for consumer products. This video will illustrate some of the many ways you can use Passport GMID to inform your decisions. And, feel free to contact the Lippincott librarians for additional assistance with using this great resource.

Eyes in the Sky: Resources to Learn about Drones

Exciting research is happening at Penn’s GRASP Laboratory in the fields of robotics and drones, and the applications of drone technology are being seen in ever-expanding industries. Entrepreneurs on campus, such as Josh Phifer, Vince Kuchar and Nichin Sreekantaswamy, the founders of Barn Owl Systems,  are developing business ideas which include drones, entering business plan competitions and launching businesses. As librarians, we can begin to identify trends based on the number of questions we receive from our students, faculty and staff about specific topics. We can tell you, drones are hot!

You can search databases to which Lippincott Library subscribes to learn more about drones. As you search, note that drones are known by other names. Keywords such as unmanned aerial vehicles, UAV, unmanned aircraft systems, UAS, unmanned combat air vehicles and  UACV are all related to drones.

IBIS World Industry Reports provide broad overviews of industries in the US and China. Here you will find a report for Unmanned Aerial Vehicle (UAV) Manufacturing which outlines industry performance, operating conditions and more.

drones-by-typeIf you are looking for a global perspective on the drone industry, use BCC Research. In this database, you will find more details about the technology of drones and their markets by application, type, subsystem and region. The report, Drone Technology and Global Markets is 111 pages of market information and analysis. In BCC, you will also find reports about the sensors and batteries used in UAVs.

For even more specific market applications of drones, Marketresearch.com Academic has a report titled: Commercial and Military Drones: Technologies, Solutions, Market Outlook, and Forecasts 2016 – 2021. Details about enabling technologies and applications are covered in this 186 page report.

In EMIS, you can access company profiles, research reports and more. One of the market research report providers in EMIS is Technavio which produces country, regional and global reports. In EMIS, search for Technavio and click on Technavio Regional Market Assessment Reports, and then switch to their Global Market Assessment Reports. A search for drone will yield reports such as: Global Commercial Purpose Drone Market, Global Defense Drones Market, Global Civilian Drones Market, and more. A search for unmanned will reveal reports such as:  Global Unmanned Aerial Vehicle Market and Global Unmanned Aerial Vehicle Payload Market. Technavio reports often include a Five Forces Analysis.

Business Source Complete contains trade, academic and news articles which cover unmanned aerial vehicles. Search for words such as: drones OR uav OR unmanned aerial vehicles. From the results you can limit using the filters on the left side of the page. Here, you will find everything from an article with consumer drone ratings in Consumer Reports to video from the Associated Press of drone competitions.

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Our technology focused industry research databases, Gartner, Forrester and IDC also offer some articles about drones.

Beyond the library’s subscription databases, industry associations and governmental websites in this field are also important to consult. The FAA’s Unmanned Aircraft Systems web page links to regulations and resources. The AUVSI is the Association for Unmanned Vehicle Systems International and UAVSA is a subsidiary of the Tesla Foundation Group. Both associations connect people within the industry.

In rapidly changing industries, information is being added to our databases on a regular basis. Contact the Lippincott Librarians, and we will be happy to direct you to resources to assist in your research!

What’s Your Company’s RQ™ (Research Quotient)?

Research and Development (R&D) expenditure is the amount of money a company spends on developing new products and services each year.  Academic business researchers have intensively investigated the relationship between a company’s R&D and its market value, and have searched for ways to derive a firm’s optimal R&D spending.  A recent innovation in the analysis and measurement of a firm’s R&D has been the development of the concept of Research Quotient (RQ).

A company’s Research Quotient is the percentage increase in the company’s revenue from a 1% increase in its R&D. RQ is a measure of a firm’s ability to generate revenue from its R&D expenditures.  RQ is calculated from a formula that combines a company’s measure of capital, labor and R&D. For more details concerning RQ calculation, click on Manuals and Overviews from the WRDS Research Quotient database.

RQ can be used:

  • To Link R&D spending to firm growth
  • Link R&D spending to market value
  • Derive a firm’s optimal R&D spending

The WRDS RQ database includes RQ measures for all companies in the COMPUSTAT database that report R&D expenditures. The data covers 1972 to 2010 and is updated annually.  The file allows searching by 4 digit SIC and by GV Key (COMPUSTAT’s unique company identifier).

Table 1 is an example of the output showing some of the default variables.

TableOne

  • “Raw RQ” is the “Research Quotient” that identifies the ability of a firm to generate revenue from its R&D expenditures. The higher the RQ the greater the revenue generated.
  • “RSTAR” is a calculation of optimal R&D expenditure.
  • “RD Ratio” is the ratio of R&D expenditure to Revenue.

In Table 2, for clarification, I have supplied tickers and names of companies together with a measure of “RQ” that I calculated from the “Raw RQ” supplied by WRDS. This RQ is analogous to the human IQ measure with a mean of 100 and a standard deviation of 15. An RQ with a mean of 100 is often used by academic writers as a way of making the RQ measure more intuitive.

Table 2 ranks the first 20 companies in the U.S. by their RQ in 2010.

Table2improved

There are more than 260 four digit SIC codes represented in the 2010 files, but only 10 codes have more than 35 companies. Table 3 collapses the codes into 2 digits, and ranks the average RQ of the largest 15 industry groups.

Table3Formatted

About 78% of the companies in the 2010 file were based in the U.S.  Figure 1 graphs the countries with 3 or more companies in 2010 by average R&D expenditures and average RQ.

Figure1Formatted

The principal developer of the RQ concept is Anne Marie Knott, Professor of Business at Washington University, St. Louis. In a 2012 article in Harvard Business Review, she estimateds that if the 20 largest US firms had optimized their R&D expenditure in 2010, they would increase their aggregate market capitalization by $1 trillion. (Knott, Anne Marie. “The Trillion-Dollar R&D Fix.” Harvard Business Review (90:5) 2012, pp. 76-82.) This article can be accessed using Business Source Complete.

Wharton Students and Faculty: Lippincott Library has the Business Sources You Need!!

Welcome!!  Lippincott Library provides many resources to help you with all of your business research needs. We can help you to :

  • Prepare successful business plans
  • Prep for interviews
  • Screen for investments
  • Win case competitions
  • Write a research paper
  • Much more

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Stock Price Archeology

April often brings us a spate of income tax related questions about the price of a stock on a particular date. The questions are usually from people who want to establish the cost basis of a stock for tax purposes.  Many standard financial databases can supply daily prices (high, low, close and volume) at least for the companies on the New York Stock Exchange as far back as the early 1960’s.

Table 1.

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Here are the earliest dates available for daily prices of General Electric Company (GE) on several financial files.

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Create Your Own Industry-Specific League Tables

The Lippincott Library has several great resources for finding league tables. However, the majority of these pre-populated league tables are typically geared towards specific geographies and companies rather than industry-specific information. What happens if you would like to look at a league table for a specific industry? You are going to have to construct your own. Fortunately, we have a resource that will enable you to do just that. Continue reading

Exploring EMIS Intelligence

EMIS Intelligence, formerly ISI Emerging Markets, has traditionally been a great resource for exploring emerging markets. Produced by Euromoney Institutional Investor, it aggregates news, reports, statistics and company information from a wide range of providers. While the focus remains primarily on emerging markets, their recent redesign allows researchers to more easily examine world or global markets, as well as giving them the ability to find information on developed markets. While one still has the option to drill into a specific country, choosing a specific country is no longer required, making it easier to search across multiple countries and regions of interest.

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The EMIS Intelligence Search page can be somewhat overwhelming because there are so many options to limit and refine your search. This example shows looking for material on armored vehicles, and limiting the results to research reports using the Publication Type filter.

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Once you have run the search, you can also use the Filter options on the left-hand side of the results page to further limit by country, language and more.  In the example below, two filters,  Country and Publication were used to narrow search results..

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Alternatively, you can use the Reports tab to explore the reports that are available. When you select the Reports tab, you will note that Analysis/Research, Ratings Analysis, News Analysis, and Analytical Commentary are automatically checked under the Publication Types list in the Filter By column.

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Use the Publications Tab to find reports by a specific provider. For example, to find EIU (Economist Intelligence Unit) Industry Reports covering the automotive, energy, healthcare, consumer goods, financial services and telecom sectors, select EIU Industry Reports from the publications list.

These reports cover both developing and developed markets, and include tables that are exportable to Excel, as shown in this example of telecom data from Austria.

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Ruble Regression: Exploring Correlations with Bloomberg.

In June 2014, the price of oil began to fall from its high of $115 a barrel. The value of the Russian Ruble, as well as the currencies of all major petroleum exporting countries began to drop along with the price of oil. Bloomberg has several correlation modules that allow us to examine the link between market variables. For example, we can quickly explore the relationship between exchange rates and oil prices using Bloomberg’s HRA program.

To plot the Russian Ruble / US Dollar exchange rate against the price of oil in Bloomberg, type:  HRA <GO>

Ruble regression value latest

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Capital Cube: Not your Father’s Stock Screener.

Financial databases from Bloomberg to Yahoo Finance can screen equities based on a combination of standard financial variables and ratios, analysts’ estimates, industry and location. But if you want to identify companies with, “Aggressive Accounting Practices”, a high “Fundamental Analysis” score or possible “Sandbagging” (understated or hidden earnings) you will need a different type of stock screener. Try Capital Cube. Capital Cube Menu   As can be seen from the Capital Cube menu, the screening options are unusual. Capital Cube creates unique variables by taking the raw financial data from individual companies and comparing the data with averages from a group of peers. For example, a company is tagged as employing “Aggressive Accounting” when “…the company’s net income margin is higher than its peer median while the percentage of accruals is lower than peer median”. Capital Cube states that this situation is usually indicative of a company with an aggressive accounting policy. Capital Cube computes a daily “Fundamental Analysis” score for each company in its database. “The Fundamental Analysis score is calculated by comparing the company’s performance relative to peer companies across multiple attributes like relative valuation, valuation drivers, operations diagnostic, etc.”

Capital Cube graph

 

Capital Cube uses fundamental data from the FactSet financial database. It includes more than 45,000 companies worldwide.

For additional information on equities screening see the Business FAQ:

 How can I screen for equities using criteria of my choice?

For information on FactSet see the Business FAQ:

Can I access FactSet through Lippincott Library?

Clean Energy by the Numbers: Data Sources

WRIBusNeedsAccording to Christiana Figueres, Executive Secretary of the UN Climate Convention, “Never before have the risks of climate change been so obvious and the impacts so visible.” We could add that never before has there been such an interest in sources of information for climate change, energy use and “clean” (non-polluting)  technology.

 

 

In a previous blog post, Clean, Green, and Renewable Energy.  Are there any Alternatives? we described several  resources for  Penn students that cover clean technology. Here are some additional data sources on clean technology that may prove useful.

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