Portland State University 2010


10/13

Sector Comparison


  • Ratings are made at the indicator or strategic thrust level. (eg. Greenhouse Gases, Water Use, etc)
  • To begin your evaluations, pick a strategic thrust and compare performance to the other 4 companies within the sector. (navigation tip: Use new tabs or windows to go back and forth between companies)
  • Once you have analyzed the companies across the sector, try to establish the industry average or status quo. This will help to benchmark performance as the industry average equates to a “5” on the rating scale. From there, you can begin to rate above average performers and industry leaders greater than 5, and laggards less than 5.
  • It may help to do a simple averaging calculation in the case of quantitative data, or by examining the trends and finding the status quo amongst the industry. Remember industry average would equate to a rating of 5.
  • Some questions to keep in mind include: Who are the laggards and who are the leaders in the industry? Is anybody exceptionally good or poor? What indicators are the best for relative comparison? (Per/unit or absolute)? Is the performance data material? How do external sources view the company’s performance?
  • If you have researched an indicator that is of relevance and you have found no available information, give it a rating of 1 (the minimum rating). This shows that it has be researched and the company is not transparent on this aspect despite its importance to the industry.