Foundations of Economic and Industry Analysis

Even the best-run company in a deteriorating industry or a recession-hit economy will struggle to deliver the returns an analysis focused purely on the firm might suggest. Top-down analysis — understanding the macroeconomic environment and industry context before examining the individual company — is foundational to rigorous fundamental research. By the end of this course you will be able to identify the current phase of the business cycle and its implications for asset class and sector performance, apply Porter's Five Forces to evaluate the competitive dynamics of an industry, and integrate macroeconomic and industry-level analysis into a coherent top-down research framework. What you will learn: - The business cycle: expansion, peak, contraction, and trough — and how sectors typically perform in each phase - Key macroeconomic indicators: GDP growth, inflation, unemployment, interest rates, and what each signals - Industry structure analysis: fragmented vs. concentrated industries and what each implies for profitability - Porter's Five Forces: competitive rivalry, supplier power, buyer power, threat of entry, and substitutes - Market sizing concepts: total addressable market and why it matters for evaluating a company's growth runway - Cyclical vs. defensive industries: how they behave differently across the economic cycle - Regulatory and policy environment as an industry driver: identifying regulatory risk and tailwinds - Integrating macro and industry analysis into a written top-down investment thesis The course proceeds through conceptual readings for each analytical framework, followed by case studies that apply the framework to a representative industry — for instance, applying Porter's Five Forces to the airline industry or the pharmaceutical sector. Self-assessment exercises ask you to apply the models to unfamiliar industries before advancing. This course is designed for finance students, investment analysts, and investors who want to add rigorous macro and industry context to their company-level analysis. No prior economics background is required. This content is purely educational and informational; it does not constitute financial advice.