EXECUTIVE SUMMARY
Volatile Ltd. plans to invest $1 million in purchasing a parcel of share from one of the two considered target companies, Cochlear Ltd. and Sonic Healthcare Ltd. As the members of the “Investment Panel” of the company, we analyse various investment opportunities and make recommendations.
This report firstly analyse the background of the two target companies. Both of the companies belong to healthcare industry. After industry and economic background analysis, we find that even though the economic was suffered a great loss after the global financial crisis, the healthcare industry was not influenced a lot.
While doing the risk analysis, we divide it into three parts which are operational risk, strategic risk and financial risk. We found that although COH is facing several challenge, it has a better and more stable performance in the three aspects compares to SHL. Therefore, we recommend purchasing share of COH.

1. INTRODUCTION
This report is aim to give analysis for investment decision between Cochlear Ltd. and Sonic Healthcare Ltd. The background of the companies, industry and economic will be assessed first. Furthermore, we will analyse two companies’ operational risk, strategic risk and financial risk. Finally, we will make recommendation base on the research. 2. BACKGROUND 3.1. COMPANY BACKGROUND
Cochlear Ltd. (refer to COH in this report) was established in 1985 and listed in Australia in 1995. The company focuses on the development of implantable hearing devices with the mission to help those who are severely deaf to enjoy and interact with a world of sound. Sitting in the dominative status, Cochlear Ltd. controls an estimated 70 percent of the global market for implantable hearing devices. The main advantage of COH is they focus on leading innovation of relevant technique, leading design of products and leading after-sale