Contents of an Annual Report Discussion-
Discuss the following scenario: Staff members from the marketing department of your firm are doing a splendid job selling products to customers. Many of the customers are so pleased that they are also buying shares in the company’s stock, which means that they receive a copy of the firm’s annual report. Unfortunately, questions sometimes arise that the marketing staff members are woefully inadequate at answering. Technical questions about the firm’s financial condition and performance are referred to the chief financial officer, but the director of marketing has asked you to write a memo in which you explain the key elements in an annual report so that marketing representatives are better prepared to respond to questions of a more general nature.
For your initial post, write a clear, concise memo (no more than 250 words) that describes the contents of an annual report so marketing personnel can understand the basic requirements of an annual report. Reference this week’s readings and lecture to help organize and explain your thoughts. In addition, answer the following questions:
- Do you think all marketing staff members should be equipped to speak with the public about the firm’s financial matters?
- What are some of the benefits of improving employee financial literacy?
Edwards Discussion-Reply-
An annual report includes a balance sheet which includes a company’s assets, liabilities, the value of their company, what the company has spent and how much income they have received over a certain time frame. More importantly, the annual report includes a description of the company and what other companies or ventures that the organization is affiliated with. The annual report can come from upper level management, the chief financial and executive officer along with the list of board member. “Companies will usually include some information about major changes in the previous year or planned changes for the next year, but in a less formal way and more for the purposes of promoting their successes” (Epstein, 2014, p. 1.3). This can allow shareholders to know if a company plans on creating another product or service and other factors that affect company success such as the global economic conditions.
Companies that sell stocks to the public have to inform them of their finances every quarter and when the public requests them. The role of the marketing department within an organization is to promote business which includes reaching out to customers who would be considered shareholders or investors. Since it would be difficult for the public to get hold of the chief financial or executive officer, the marketing team should be equipped to answer any questions or concerns that shareholders may have. One benefit for improving employee financial literacy is increased production because employees will be less stressed about their finances. Another benefit for improving employee financial knowledge is more profits, because they will be eager to buy stocks within the company.
