- •Cfa Society of Russia
- •Appendix d - comparable companies
- •Appendix e – ftse value stock screening criteria
- •Appendix f - macroeconomic assumptions
- •Appendix h – main suppliers
- •Appendix I – customers
- •Appendix j – mostotrest’s acquisitions
- •In cfd mst operates through:
- •5 Branches and 1 factory in Moscow and Moscow region;
- •Appendix n – projects completed by mostotrest in 2009-2012
- •Appendix o – mostotrest’s current projects (1/2)
- •Appendix o – mostotrest’s current projects (2/2)
- •Appendix p - board of directors structure
- •Appendix r - сompliance with the requirements of the exchanges listing rules to corporate governance (2/3)
- •Appendix t – swot analysis
- •The likelihood of new entry
- •The costs of entry are high
- •Firms who have experience and reputation in the industry have major advantages
- •The major client in the industry is the government, consequently, the loyalty to the existing companies is very high
- •Rivalry determinants
- •There are a few companies that have major share of the market
- •The existing firms will fight hard in order to survive because they cannot easily transfer their resources elsewhere
- •There is a big brand loyalty, as well as the good political relations of the owners of the company
- •Competitive rivalry within an Industry
- •In fact there are many companies with which Mostotrest successfully cooperates.
Appendix t – swot analysis
Strength |
Weaknesses |
The only publicly quoted company |
Dependance on materials supply |
Has over 80 years of construction experience |
Dependance on subcontractors |
Has its own production facilities and is self-sufficient in materials |
Little experience in providing full cycle projects |
M&A activities leads to the geopgraphicals and business expansion |
Little influence of Corporate Governance on projects |
Well-connected top managers attract new contracts |
Dependance on main client's decisions - Government |
Significant backlog growth |
|
The loyalty of clients |
|
Own technologies that are protected by patents |
|
Opportunities |
Threats |
The growth of Russian transport infrastructure |
Deterioration of macroeconomic situation |
New projects that are financed by the Government |
Delays in payment for the work conducted |
Public Private Partnership projects |
Price inflation of building materials |
Life cycle contracts and concessionaries |
Political risks |
State programs for the development of transport infrastructure |
Post-construction guarantees |
|
Change in Government priorities and switching away from developinh transport infrastructure |
|
The amount of outsorcing to subcontracting services |
Source: A-team analysis
AThe likelihood of new entry
The costs of entry are high
Firms who have experience and reputation in the industry have major advantages
The major client in the industry is the government, consequently, the loyalty to the existing companies is very high
Rivalry determinants
There are a few companies that have major share of the market
The existing firms will fight hard in order to survive because they cannot easily transfer their resources elsewhere
There is a big brand loyalty, as well as the good political relations of the owners of the company
PPENDIX U – FIVE FORCES ANALYSIS
Competitive rivalry within an Industry
The power of suppliers
Mostotrest has its own production facilities and can provide approximately 40% of all its construction materials needs.
In fact there are many companies with which Mostotrest successfully cooperates.
Switching to another supplier is relatively difficult, because mainly all materials are coming from Russian companies and consequently are more reliable, e.g. suitable for Russian weather conditions
The power of buyers
Although, the increase of Private and PPP clients is planned the main customers remain the same: the Federal State Agencies and Regional authorities, so they are very important for the company
The customers have relatively high flexibility to switch to other major companies in the industry, so Mostotrest must provide high quality service at a good price
The customers have high negotiating power
Source: A-team analysis