Product Type: Market Research Report
Published by: IBISWorld
Published: October 2009
Product Code: R538-30066Description Industry Risk Ratings Synopsis
This Industry Risk Ratings report from IBISWorld evaluates the inherent risks associated with the Bacon, Ham and Smallgood Manufacturing in Australia industry. Industry Risk is assumed to be 'the difficulty, or otherwise, of the business operating environment'.
The report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).
This approach is new in that it analyses non-financial information surrounding each industry. Industries are scored on a 9-point scale, where 1 represents the lowest risk and 9 the highest. The Industry Risk score measures expected Industry Risk over the coming 12-18 months.
Industry Definition
This industry includes establishments that primarily manufacture bacon, ham (including canned bacon or ham), smallgoods, and/or other prepared meat products.Bacon and ham are meat cuts derived from pigs. Bacon is the meat from the sides and back of a pig. It is usually salted, smoked and sliced into thin cuts. Ham is the meat from the thigh of the hind leg of pigs. Ham is cured by smoking and salting. Smallgoods is a term usually referring to meat products where the meat has been manufactured to form a new product that is different in taste and characteristics, cooked or uncooked, but not sterilised. This group includes sausages, salamis, pates, and dried, roasted and preserved meat products such as beef jerky. Smallgoods are made from pig meat and other meats, such as poultry and beef.
Report Contents
Risk Overview
The Risk Overview chapter includes sections on Industry Definition and Activities, Industry Risk Score and Risk Rating Analysis. The Industry Definition and Activities section provides a detailed definition of the activities carried out by operators in this industry as defined in NAICS. A list of the primary activities of the industry is also included. The Industry Risk Score section provides the Overall Industry Risk Score as well as the Risk Scores for each of the three types of risk covered that combine to form the Overall Industry Risk Score. These three types of risk are Structural Risk, Growth Risk and External Sensitivity Risk. The Risk Rating Analysis section discusses the underlying factors contributing to the Overall Industry Risk Score.
Structural Risk
The Structural Risk chapter looks at risk arising from within the industry itself and provides a detailed discussion of the industry’s level of exposure to seven key indicators. These key indicators are Barriers to Entry, Competition, Industry Exports, Industry Imports, Level of Assistance, Life Cycle Stage and Volatility of Industry. The Overall Structural Risk Score is a weighted aggregation of these seven key indicators. Each of the key indicators is discussed in detail in this section.
Growth Risk
The Growth Risk chapter looks at risks arising from the expected future performance of the industry. The Overall Growth Risk Score is determined by amalgamating the scores for Recent Industry Growth and Forecast Industry Growth. Detailed analysis is provided discussing the reasons for the growth scores of both.
Sensitivity Risk
The Sensitivity Risk chapter looks at risks arising from forces (sensitivities) external to the industry. The Overall External Sensitivity Risk Score is determined by identifying the most significant (up to 6) external factors and weighting them to represent how significant each sensitivity is to the performance of the industry. Examples of External Sensitivities are Exchange Rates, Interest Rates, Commodity Prices and Government Regulations. There is also a detailed analysis of the affect each of the sensitivities has on the industry, including charts and data tables where appropriate.
Industry Risk and Industry Risk Scoring Methodology
This chapter provides an overview of how IBISWorld defines Industry Risk and discusses the methodology used to arrive at an Industry Risk Score. There is also a table that provides a definition of the seven levels of Industry Risk.
C2113 - Bacon, Ham and Smallgood Manufacturing in Australia
F4712 - Poultry and Smallgood Wholesaling in Australia
F4719 - Canned Food, Cereal Products and Other Grocery Wholesaling in Australia
H5731 - Cafes and Restaurants in Australia
H5732 - Caterers and Food Service Contractors in Australia
G5111 - Supermarkets and Other Grocery Stores in Australia
G5112 - Convenience Stores in Australia Table of Contents RISK OVERVIEW Industry Definition & Activities
Industry Risk Score
Risk Rating AnalysisSTRUCTURAL RISK Barriers to Entry
Basis of Competition
Domestic and International Markets
Industry Assistance
Life Cycle
Industry VolatilityGROWTH RISK Recent Growth Analysis
Forecast Growth Analysis
SENSITIVITY RISK Domestic Price - Pig Meat
Domestic Price - Poultry Meat
Downstream Demand - Supermarket and Grocery Stores
Domestic Price - Lamb
Nutrition - Pork consumption
Domestic Price - Bacon and Ham
INDUSTRY RISK AND INDUSTRY RISK SCORING METHODOLOGY What is Industry Risk?
The Industry Risk Scoring Methodology
Risk Rating Score Definition
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