Business Forecasting and Data Analysis Method

Question: Discuss about the Business Forecasting and Data Analysis Method. Answer: Introduction: It has been evaluated that the stock price of GLB is lower compared to that of CRH. Hence, in order to increase its stock price, there are certain options available to the organisation to ensure competitive advantage in the Singapore market. One of such options is the stock repurchase, which would lead to increased demand of stock in the market. As a result, the price of GLB stock would rise in the market. In addition, stock repurchase would help GLB to convince the investors about the reliability of the stock, since the company expects positive future performance in the market. Along with this, raising debt from the market of Singapore is another option available to GLB to boost its share price. This is because obtaining debt would minimise the overall risk of GLB; however, it is assumed that the organisation has not attained the point of financial distress. Furthermore, depending on the debt amount and way of obtaining the same, it could have positive impact on the share price of the organisation. It has been assessed that CRH has high stock market volatility, which could reduce the return on investments for the investors. Therefore, in order to deal with this situation, CRH is required to develop a plan of risk management to protect against any unanticipated loss with the help of insurance. It could adopt proactive steps for cross training to combat with such risk. As a result, when the stock price of CRH falls in the Singapore market, it could cover its losses from the insurance companies, which would not significantly affect the profitability of the organisation. Hence, it could be inferred that stock repurchase and raising debt are two alternatives available to GLB to boost its share price, while CRH needs to transfer the risk to insurance companies to hedge against the stock volatility. Conclusion: The above assignment aims to evaluate the stock price position of Cemebt Road Group (CRH) and Glanbia (GLB). The different statistical tools like descriptive statistics and inferential statistics have been used to increase the reliability of the conducted evaluation on the two above-mentioned organisations. With the help of inferential statistics, the hypothesis testing has been conducted. The descriptive statistics conducted include measures of central tendency and measures of dispersion. From the mean value computed, it is evident that the share price of CRH has been quite higher compared to GLB. This denotes that GLB has been highly effective in winning the trust of the investors due to higher dividend payout and returns on investments. The median value also depicts the identical scenario, in which the CRH has higher share price value than GLB. However, the standard deviation value depicts that the stock of CRH contains greater amount of risk. Therefore, the investors could be able to earn huge returns either on investments or below the expected returns. This has been validated with the regression outcomes obtained. Therefore, a series of recommendations have been provided to both the organisations to improve their overall financial performance. GLB is recommended to conduct stock repurchase and raising debt from the Singapore market in order to boost its share price. This is because stock repurchase would help in increasing the stock demand, which would eventually lead to higher share price. In addition, raising debt would have positive impact on the share price; however, it is assumed that the organisation has not attained the point of financial distress. On the other hand, CRH is recommended to develop a risk management plan by transferring risk to the insurance companies. This is because when the stock price of CRH falls in the Singapore market, it could cover its losses from the insurance companies, which would not significantly affect the profitability of the organisation.