Making Sense of Business Reference

condor.depaul.edu/~cross5/MLS/makingsense.html
Celia Ross
Reference & Instruction Librarian
Bibliographer for Finance
DePaul University
cross5@depaul.edu
312.362.5541
 *********************************

Metropolitan Library System (MLS) Workshop

Chicago, 3 May 2006
Chicago, 5 June 2006












Some Caveats

  • Full disclosure...A 3-hour workshop is not enough time to fully “make sense” of the business reference process (okay, so we lied in the title).

  • Like any skill, only through practice and time can you expect to become totally comfortable and confident in your abilities.

  • That said, rest assured that today’s workshop will enhance your business reference foundation.


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    The BRQ: Business Reference Question

    Some examples:

  • Who are the top executives at EDS?

  • What is the most current national unemployment rate?

  • What was AOL’s stock price on 4/25/05? What were their 2001 sales?

  • What is the market share of American Airlines?

  • What are the quarterly sales and EBITDA for each Starbucks location in Illinois?

  • Where is your RMA guide?

  • Can you point me towards where to find information on the smoothie industry? How about the scrapbooking industry?

  • What is the target market for ipods?


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    You already know the reference tactics for BRQ's

  • Start with a thorough Reference Interview
    • Clarify the question
    Who’s asking the question?
    What do they need the info for? When do they need it?
    Are they fact checking? "Getting smart?"

  • Consider web & commercial databases & don’t forget print!

  • Remember keyword tricks and other strategies.

  • Look for associations and other specialty groups—don’t be afraid to use the phone.

  • Start small then go big if necessary--Pearl Culturing

  • Check the source for credibility. Then cross-check it with another source if possible.


    • **Don’t be afraid to ask for some time to dig and get back to the person.**

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    Components of a BRQ

    Patron is generally looking for something that falls under one or more of the following:

  • Company Information
  • Industry/Market Information
  • Stock Market/Financial Information
  • Statistical/Demographic Information


    • **may require qualitative or quantitative forms of data or both**

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    Components of a BRQ resource

    A BRQ resource will generally cover one or more of the following areas:

  • News/Trade/Research Articles
  • Industry reports
  • Raw data/Statistics
  • Analyst reports
  • Directory data
  • Market Share/Rankings
  • Private company information
  • Global/International Information


    • **content can overlap in each resource, but some cover unique material or have particular areas of strength. Always search more than one resource to avoid missing data as well as to compare and contrast what you do find**

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    Company Information

    Has many uses:

      Consumer Issues
      Job Interview Preparation
      Solicit new Customers
      ID the Competition/ Market Research
      ID potential Suppliers
      Trade Name Searches
      ...and more!

      First step is to determine whether or not the company is:

        Public
      • shares are traded on a stock exchange
      • subject to periodic filings and other obligations under Federal securities laws
      • much *easier* to find detailed financial and other information on public companies
      or
        Private
      • shares are not traded on the open market
      • not subject to same Federal disclosure requirements as Public companies
      • much *harder* to find detailed financial and other information on private companies

      Knowing whether or not a company is public or private will help you determine which resources are best to start your search in and will guide the rest of your research.

      **Company Information Sources**

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    Corporate Finance & Accounting

    Public Companies:

    *Securities Exchange laws of 1933-34
    *Sarbanes-Oxley Act of 2002
      Annual Report to Shareholders
    • status report, contains letter to shareholders from CEO, "glossy"
      10K
    • SEC-filed annual report
      Proxy Statement (14-A)
    • contains bio info on officers as well as compensation info and shareholder info
      Many other filings
    • including variations of 14-A
    **Accounting/Financials Sources**

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    Corporate Finance (cont.)

    Private Companies and other considerations

  • D&B Credit Reports--not for sale to competitors. Only provide credit/payment information, not necessarily financials.
  • Is the company regulated? (e.g. Banks, Insurance) Government agencies oversee many processes.


    • Questions:
    • Good numbers? (relative to size of company and industry it operates in)
    • Too much debt?
    • What can I do with the numbers I *can* find?
    **Ratio Analysis & Commonsize Analysis Sources**

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    Industry Research

    For:

  • Competitive intelligence/Starting a business
  • Marketing
  • Career
  • And more!


    • **Not all industries are defined clearly. Many are fragmented and can be made up of many small, private companies. There is a reason that packaged industry information costs a lot of money...it takes a lot of time and analysis to compile**

    Some tips:

  • define** your industry as best as you can
  • clarify how the industry is defined in the sources of info you find on it
  • hunt for clues in articles, market reports and company releases
  • look for specialized trade journals and associations
  • consider SIC/NAICS as tools (and GICS)
  • Cite your data and be able to back up any numbers use
  • Be flexible and creative


    • **Industry Research Sources**

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    International

    Things to consider:

    Differences in:
  • Spelling/Language/Name variants and transliteration
  • Legal & regulatory systems
  • Industry classifications
  • Cultures/protocol
  • Holidays, currency, time…


    • Don’t forget:
  • traditional global print sources (like Europa)—check for sources of data and work backwards
  • online business portals—many have international resources
  • country-specific web sites for global companies (e.g. starbucks.co.at)
  • The US government tracks a lot of international data


    • **International Business Sources**

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    Investing/Stock Market

  • Stock performance is one factor that can be used to evaluate a public company or compare it against competitors.
  • Learning about a company or industry can help someone decide whether or not to invest in a public company’s stock or an investment fund.
  • Many free sites give basic data, e.g. Yahoo Finance
  • Many fee-based services also have some free content, e.g. Value Line, Morningstar
  • Most analyst and other packaged data comes at a cost


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    Investing (cont.)

    Other investment options:

  • Mutual Funds: pools of money managed by an investment company.

  • Money Market: borrow or lend bonds, treasury bills, “commercial paper” [company debt].

  • Commodities & Futures: agree on a price now to sell an item (food, metals, etc.) at a later time.

  • Hedge Funds: employ a variety of techniques to increase returns (different than “hedging” which involves reducing the risk of an investment).


    • **Investment Information Sources.**

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    Marketing/Demographics/
    Statistics

    A BRQ often involves a search for data on consumer behavior, trends, demographics, etc.

  • Statistics can be found almost anywhere—trick is to find exactly what you need broken out in the right way—don’t forget print!
  • Just because a number is found does *not* make it a good or even correct number.
  • It’s especially important to check sources when dealing with statistics.
  • Try to identify groups that would care about the numbers you’re looking for.
  • Use general sources and work backwards from data—there may be more available than published.
  • A lot of statistical data, if it’s packaged the way you want it and involves a comprehensive study, will cost money. Sorry.


    • **Statistical Sources.**

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    BRQ wrap up

    When faced with a BRQ, step back and examine it:
  • Company or industry info? Demographics or statistics? All of the above?
    • Start with your favorites/usual suspects:
  • Find clues and use them to guide the rest of your research.
    • Leverage your reference skills and have fun digging!
  • and don't be afraid to ask for help!
    • **Some other business reference Sources to keep in mind.**

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