Fundamental Analysis aims at finding what the value of the organization is, and so, it means that it must find the intrinsic price of the firm or organization. What are used in the process are the economic factors. The factors that are used in this analysis are for proving the fundamental elements in determination of the price. One will have to opt for the following analyses if they are using Fundamental analysis; company analysis, economic analysis and industry analysis. As for Technical analysis, it refers to the method that one can use in making evaluation of Securities ( Hitomi, 2017) . The analysis will use the preceding price movements so as it can predict what the prices will be in the future. Unlike the intrinsic value, the trends and patterns have a lot of significance in this analysis. Also unlike in the fundamental analysis, here of importance is the Marketing price. Factors that affect the economy re omitted in this analysis.
The risks of using Technical analysis are; there are a lot of indicators that always spoil the charts. When there are too many indicators in place then they will produce signals that will confuse you and this might affect the results of your analysis. Another risk is that Technical Analysis ignores the underlying fundamentals. It omits these fundamental underlying of the organization. The effect of this is that there will be a lot challenges if there is long time frames. Despite those demerits, Technical analysis has its own strengths. The analysis will help in provision of insight on the volume trend. With the use of the analysis, one is able to make judgment on how the overall market is working. It also will help you in determining when you can enter a market or tell you when you should quit.
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The balanced scorecard refers to strategic planning and management system which plays the following roles in any organization. The system makes communication on what the firm is trying to accomplish. It also aligns the entire daily work schedule that all employees are doing with strategy. Lastly just like a technical analysis system, it also prioritizes all project, products and services. They are again similar with Technical Analysis because they are used in measuring and monitoring the progress made towards achieving the goals of the organization.
References
Hitomi, K - 2017 manufacturing systems engineering: A unified approach to manufacturing technology , production management and industrial economics- taylorfrancis.com
