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Great Britain's (UK) Stock Market

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Please help in providing a response to the following questions using Great Britain (UK) as your topic.

1) How has the stock market in your reference country done over the last five years?

2) How risky do you think your reference country's stock market is?

3) Would you personally invest in your reference country's stock market? Would you combine an investment in that stock market with an investment portfolio that contains mostly US securities? Do you see any advantages for such a 'design' of the portfolio?

4) Based on your analysis and findings, what would you recommend to other investors? Would you recommend other investors to invest in your references country's stock market? Please explain your reasoning.

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Stock Market Performance in Last Five Year

The UK stock market has a negative performance during the last five years. The major stock index FTSE, Financial Time index of top 100 UK shares, has a rank of 16 with the negative return of -16% as compared to the NASDAQ 100 index with a positive return of 35%. In 31st Jan. 2007, the stock price of London Stock Exchange was £ 1299 and the stock price in 2012 till 2nd July was £ 983. It is identified that the stock price of London Stock Exchange is decreasing with a £ 316 (Yahoo Finance, 2012).

Risk in UK's Stock Market

The UK's stock market is risky for the investment. In the UK, the main stock market is the London Stock Exchange in which the public limited companies and other financial instruments can be bought and sold. The London stock market is divided into different indices such as FTSE 100, FTSE 250, FTSE Fledgling and the alternative investment market (AIM). There are lots of risks to invest money in London Stock Exchange because the stock market continuously showing the decrease in stock prices that can impact on the investments (Willington, 2011).
After the financial crash 2007/09, it is more risky for investors to invest money in the UK's stock market. It is identified that London's leading stock market index FTSE 100 was dropped by 48% within the 21 months. The property values also suffered during the economic crash. In August 2007 the average UK home cost was £199,612 that was reduced in April 2009 to £154,663 with a 23% fall in 20 months. Most of the big companies stocks are collapsed that also present the risk for the investors to invest money in the UK's stock market (Moles, Parrino & Kidwell, 2011).

Investment in UK's Stock ...

Solution Summary

The expert examines Great Britain's stock market. How risky the reference country's stock market is determined.

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Porter's Five Forces Analysis - British Telecom

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The questions are below.

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Porter's Five Forces Analysis of British Telecom (BT)
** Must include graphs when useful and, more importantly, references to source material

Topics to answer for assignment:
1: Provide a description of British Telecom and a short history of them.
2: Describe the market.
3: What is the product line and geographic region served?
4: Consider the competition. How many firms are direct competitors to British Telecom?
5: What do you believe the 4-firm concentration ratio is in this market? Is British Telecom one of the 4 largest firms? Are all firms the same size? Is there a large amount of price competition or non-price competition in this market? Or both? Explain.
6: How easily can new competitors enter this market? What are the barriers that prevent entry? When was the last time a new competitor entered this market?
7: Beyond direct competitors, are there other firms that you view as providing a substitute to British Telecom's product? Who are they? How close to a substitute is their product? What is the potential for these other firms to become direct competitors of British Telecom?
8: Does the success of British Telecom's product, that is their sales, depend on the success of sales by another firm? Has British Telecom formed a sales alliance with another firm? (Could be a joint marketing campaign perhaps)
9: Does British Telecom have a degree of monopoly power in buying raw materials, negotiating labor contracts, hiring, or borrowing funds? Do they have a significantly different relationship with suppliers than other companies in the industry? Or, does everyone face the same basic prices for inputs in production (basically discuss vertical integration)?
10: Does British Telecom have a degree of monopoly power in selling their product? Why or why not?
11: Do buyers of British Telecom products have a degree of monopoly power? Why or why not?
12: What external factors do you believe play a large role in the success or failure of British Telecom? Explain why?
13: Considering all of the answers, what is the greatest source of risk and uncertainty for British Telecom? Why?

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