...Annual Report Analysis SK Md Saif Ali (Neil) 500335019 CMN 413 Analysis of Annual Report: McDonalds Here is an annual report analysis of McDonalds based on recurring themes, corporate image, Branding, Readability, design, interest, factual comprehensiveness, consistency and transparency. Recurring Themes: Health concern is the biggest issue to general people when it comes down to fast food. Despite of their great they are incapable to promote good health. In 2012 Annual report, McDonalds claimed to overcome these issues by providing food with quality and taste. By adding real fruits, vegetables, salad to its menu, it has taken the food quality to a new level. Moreover, McDonalds has also become more eco-friendly. By successfully diminishing the usage of carbon footprint and energy, McDonalds proved that point to some extent. This organization has a family crisis fund to help families during depraved times. Corporate Image: approximately 69 million people around the world is served food by McDonalds. McDonalds has differed itself from other companies by seeking competitive advantage. They try to gain that by adding healthy food to their menu and by renovating the business. On page 5 of annual report, It is stated that how standing out for employees and looking out for its own people have earned McDonald’s a competitive advantage on others. The reason behind using such statement served multiple purposes. First of all its shows why one should work in McDonalds and...
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...On an annual basis, companies such as Procter & Gamble are required to file two well-known types of reports: the 10K filing and the Annual Report. The purpose behind both of these documents is to monitor a company’s performance for the past year. Stakeholders in the respective companies can acquire this publicly provided data and analyze the information for different purposes. While 10K filings and annual reports contain similar data, their perspectives differ. For example, consider that the 10K is a financial fill-in-the-blank form whereas an annual report is a marketing document. The goal of the annual report is to persuade and inform current and potential stockholders. It is sent out to shareholders when companies hold their annual meetings to elect directors. Ultimately, this report serves as a benefit to a company because it has free reign over its content and design. On the contrary, the U.S. Securities and Exchange Commission requires 10k filings to inform about the company, monitor finances and prevent fraud. Both documents are effective considering their particular audiences; 10K’s are for a financial audience and annual reports are for the general public stockholders. Inherent differences such as layout, design details, tone, and content are apparent in Procter & Gamble’s 10K SEC filing and their annual report. Procter & Gamble’s annual report effectively uses verbal and visual strategies to catch the reader’s attention. Its colorful front page displays...
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...restaurants internationally. The following pages will present a balanced approach to the effectiveness of Chipotle’s strategy analyzing financial performance, customer satisfaction, employee/learning and growth, and internal process. Business Model Chipotle’s vision is to change the way people think about fast food. This is done by seeking the same quality and experience as a high end restaurant while maintaining the speed of fast food. Chipotle adopted the slogan, “Food with Integrity” which serves as their guiding objective for the ingredients. Our objective is to find the highest quality ingredients we can—ingredients that are grown or raised with respect for the environment, animals and people who grow or raise the food” (2012 Annual Report and Proxy Statment, 2012). Differentiation of Products and Services One way Chipotle maintains quality is with short line of products: burrito bowls, tacos, quesadillas, and salads. Each item can come with one of four meats or just vegetables. Each location serves soft drinks while some also serve beer and margaritas. There are no freezers, microwave ovens, or can openers at any location as the majority of the food is made on site. Chipotle ensures that all products served were, “raised without the use of subtherapeutic antibiotics or added hormones, and in accordance with criteria we’ve established in an...
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...Global Competition Starbucks is the unquestionable market leader in the U.S. and is in the early stages of an international expansion plan that could lead to more revenue coming from international than domestic locations within the decade (www.beta.fool.com). Starbucks has significant strengths in coffee business. It is the current market leader with over 17000 stores worldwide. It has no debt and uses internal cash flow for expansion. Also since all of its stores are company-owned, it is able to maintain the image and quality. It also spends very less amount on advertising and marketing, and relies primarily on the word of mouth. Starbucks also has strong brand recognition by consumers. It is known for its high quality products and its consumer friendly environment. Labor, Demand, Supply, Relations and Unions It is important for Starbucks to analyze it suppliers for different reasons. First a powerful supplier can negotiate for higher price and insist on more favorable terms, forcing down profitability margins. Suppliers are not just the manufacturers of the raw materials but also all the manpower that are part of the distribution chain which includes the store front employees. To minimize the power of the supplier and the buyers the company will have to aggressively differentiate its strategy to be put competitors against each other, instead of buyers viewing the product as a commodity it will been seen as a powerful brand (Margretta, 2012)...
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...Will Lululemon Athletica Become the Next Top Brand? Christopher Boyken MGT 4013 April 24, 2012 Executive Summary Lululemon was founded by Chip Wilson in 1998. The company started out in Canada with several stores where the company eventually grew to 165 stores in Canada, United States, Australia and China. The industry in which Lululemon competes in is fitness apparel, with competitors such as Nike, Adidas, Under Armour, and Champion. The fitness apparel industry is very attractive with an ever growing increase in the amount of individuals choosing to lead a healthier life. Lululemon holds a good position in this industry and have room to grow in the future to gain an advantage over its competitors. The way Lululemon has been executing its strategy is a key factor to how well the company has been performing the past years. Although the company’s performance has been outstanding recently, there is a strategic issue in which Lululemon should try to deal with, and this is advertising. There is a couple of action plans that can be implemented and help fix the strategic issue Lululemon faces. Lululemon is a growing company that has a promising future and will continue to attract numerous investors. Table of Contents Introduction (Needs and Purposes) 4 Strategic Posture 5 Brief History 5 Core Values 5 Mission Statement 9 Vision Statement 9 Business Definition 10 Broad Goals 12 Smart Objectives 14 Key Functional...
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...and GUESS have created such programs and with the comparison of before and after financial reports it boosts net sales by more than 30%. INTRODUCTION Express Next is a point-dollar reward system that affiliates each dollar spent with 10 points. The more points a customer accumulates the better a reward they will receive. There will be a two tiers of loyalty. A Base tier, the beginning tier, that rewards a customer with 10 points with every dollar spent. And a A-List tier, the advance tier that is gained when a customer reaches a certain amount of loyalty, that rewards customers with 15 points with every dollar spent. There will be a two quarter beta program to be held at various locations that have the top volume in the company and will be launched in the beginning of the upcoming fiscal year. This loyalty program will increase sales up to 30% percent and start a clientele-esque program. LIST OF SOURCES Berman, B. (2006). Developing an Effective Customer Loyalty Program . California management review , 49(1), 123. Demonstrate how to create an effective program that will increase net sales Chen, M. (2005). Mining changes in customer behavior in retail marketing . Expert systems with applications , 28(4), 773. doi:10.1016/j.eswa.2004.12.033 Show that the proper marketing and phasing of the program will benefit the companies finance Clifton, D. E. (2005). AECO Annual Report. AECO Investor Information. Retrieved March 17, 2012, from http://phx.corporate-ir.net/phoenix...
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...htm An investigation of perceptions of company annual report users in Sri Lanka Anura De Zoysa and Kathy Rudkin School of Accounting and Finance, University of Wollongong, Wollongong, Australia Abstract Purpose – The purpose of this paper is to report on a study of how users of company annual reports in the emerging market of Sri Lanka view those reports. Since limited studies exist that examine financial reporting practices in emerging markets, little is known about the user perceptions of company annual reports in these markets. This paper contributes to filling this gap by examining the views of a wide spectrum of users on the usefulness of corporate annual reports in Sri Lanka. Design/methodology/approach – The data reported in this study were collected through a questionnaire survey, covering seven user groups – accountants, executives, bankers, tax officers, academics, financial analysts, and investors. The 264 responses received were analysed using the Kruskal-Wallis one-way ANOVA test. Findings – The results reveal that most use annual reports for obtaining information for share transactions. Despite the long delay in publishing many annual reports and lack of availability of these reports to the general public, the majority of users view annual reports as the most important source of company information. The paper also reveals that, in comparison with developed markets, Sri Lankan users depend more on annual report information than on information provided by stockbrokers...
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...___ Being a paper presented at ANAN Practitioners’ Forum at Mainland Hotel, Lagos on 3rd August, 2010 ____________________________________________________________________ Abstract Good corporate reporting is generally an indication of competitiveness and superior corporate governance. Good reports show initiative and effort on the part of the preparers. Significant changes in the corporate external reporting environment have led to proposals for fundamental changes in corporate reporting practices. A variety of new information types are been demanded, in particular forward-looking, non-financial and soft information. Openness and transparency in annual reporting on an unprecedented scale may be inevitable with the adoption of International Financial Reporting Standards (IFRS) and Nigeria’s commitment to adopt IFRS; Nigerian companies will have no alternative but to bring themselves up to speed. One way is to ensure that company’s reports actually reflect good governance. INTRODUCTION Good corporate reporting is generally an indication of competitiveness and superior corporate governance. Good reports show initiative and effort on the part of the preparers. “The better reports always address all the required relevant information concisely, and disclose thoroughly the measures taken – including on activities, corporate policy, strategic plans, the company’s prospects and current initiatives to protect the environment,” (Pushpanathan, 2010:15). In recent times the demand...
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...Fertilizer Bin Qasim Limited Financial Analysis Report Period coverage: 1st January 2012 to 31st December 2012 Prepared and Presented by: Dr. Babur Zahiruddin Raza, Corporate Office Consultant in Human Resources & Master Trainer in H.R Applications Research Consultant Mr. J. S Khan IT Consultant Mr. Raheel Rustam Ph: 051-5584905, 5792836 Cell: 0332 – 4923235 Email: baburzahiruddin@yahoo.com, TABLE OF CONTENTS SR no | Description | Page no | 1 | Financial analysis approach ----------------------------------------------- | 3 | 2 | Analytical review --------------------------------------------------------- | 4 | 3 | Key discussion points for AGM ---------------------------------------- | 8 | | | | | | | | | | | | | | | | 1. FINANCIAL ANALYSIS APPROACH I have adopted following approach to perform holistic and integrated financial analysis of Fauji Fertilizer Bin Qasim Limited-FFBL Environmental analysis Industry analysis Operational review of FFBL Financial analysis The under mentioned documents are essential to perform comprehensive analysis of financial position, performance and cash position. 1. Business plan-Year 2013 to 2015 2. Approved budget-Year 2013 to 2015 3. Annual report of Year 2012 4. Audited financial statements-Year 2012 5. Internal audit charter / Terms of reference for internal audit 6. Internal audit reports 7. Audit engagement letters 8. Management...
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...forecasts. A number of ratios must be analyzed together to get a true and reliable picture of the financial performance of the business. Relying on each ratio individually may not be a good strategy. Year-end values may not be truly representative of the actual performance of the business and hence, average values should be used when they are available. The limitations of accounting methods also apply to financial ratio analysis. The selection and application of accounting standards may result in different ratio values. Financial ratio analysis, in fact, has a great use in management accounting which differs from financial accounting in being an on-going, performance management exercise. This summary is a review of the annual report and financial statements and the differences between the audited and the unaudited statements. The financial ratios are examined to determine if there has been improvement from 2008 to 2009 and to explain the cause. This paper will also summarize the relationship between revenue sources and expenses and explain the effect of revenue sources on financial reporting. The summary will also determine how the hospital’s revenues and expenses are grouped for planning and control....
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...Processes used to stay in compliance with the SEC Public traded companies have to comply with the regulations set by the Securities and Exchange Commission (SEC). One of the guidelines set requires Lowes to notify all shareholders when the organization files their financial reports to the SEC. This includes quarterly and annual reports. Lowes ensures that they are always in compliance with the SEC regulations through internal software and technologies, outside independent auditors, Audit Committee, Compensation Committee, and Governance Committee. Lowes has been found to be in total compliance with all regulations set by the SEC thus far. When the company makes any SEC filing, they are listed by category for the public to see on the company website at anytime. The purpose of the Audit Committee is to ensure all financial and accounting processes at Lowes are ethical. This committee does this through internal and external audit controls and processes. To have a non-biased financial audit done Lowes uses outside independent auditing company Deloitte & Touche LLP. This committee also oversees a reviewing process in which the senior managers of the company meet with the independent auditors after their annual...
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...flows, and statements of owners’ equity? How could the information in those statements be useful to an investor and to a manager? I do not really have a favorite company. Being a car enthusiast, I do pay close attention to the automotive industry. Out of the three major U.S. auto makers, Ford Motor Company is the only one who did not accept government bailout money, further enforcing the fact that the company can stand on its own two feet. This makes Ford my favorite company out of the three. The following information is based on the financial statements of Ford Motor Company which can be found in Ford’s annual report located at http://corporate.ford.com/doc/2011_annual_report.pdf. Ford’s annual report contains both a consolidated balance sheet and a sector balance sheet; both consolidated and sector cash flow statements, and consolidated statement of equity. The report contains no income statements. The financial statements of Ford Motor Company follow a traditional format. The information contained in financial statements can be beneficial to both investors and managers. When making a financial investment in a company, it is important to know how healthy the company is financially. The financial history is also helpful. Managers can use the information to help determine if expenses are too high as well as many other...
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...Marriott International, Inc Annual Report 2011 Accounting Principles 100 June 16, 2012 Marriott International, Inc., a leader in the hospitality industry, extended their attention to customer comfort to their intended annual report audience, and created a communication instrument that stands apart from most others in the typically dull arena of corporate reporting. In 2011, note worthy endeavors included Global Growth which caused an increase in revenues and increase in franchises. Marriott opened 210 properties with nearly 32000 new rooms around the world. Their brand portfolio which consists of urban centers to resorts has something for everyone. Each brand has been designed to deliver a unique travel experience across a range of customer segments. Marriott Vacations Worldwide Corporation, an addition to Marriott's assets in 2011, is now an independent, publicly traded company. With Marriott's management and franchising of this new spin-off they believe this will foster growth and attract new investors. Combined with "Revenue Per Available Room" (RevPAR), another business of Marriott's, grew and helped facilitate their global growth. Core values are an important part of the business philosophy that has help propel this company in 2011. Purpose, Values, Strategy and Success Measures combined with the vision to be the #1 hospitality company in the world and leading on three success measures: Loyalty, Profitability and Growth will pave the way to success. Financial...
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...Chance of Financial Fraud Reduced with PCAOB New Requirements The Sarbanes-Oxley Act of 2002 (SOX) requires that any accounting firm that prepares or issues an audit report with respect to a U.S. public company must register with the Public Company Accounting Oversight Board (PCAOB). Until recently, an accounting firm was required only to provide information current as of the initial registration date for the firm. Beginning on December 31, 2009, accounting firms were required to register with the PCAOB and file annual and current reports with the PCAOB. On August 13, 2009, the SEC approved the proposed rules with the original effective date of October 12, 2009, but on September 30, 2009, the PCAOB delayed the effective date to December 31, 2009. These parts implement the requirements of SOX section 102(d) that registered public accounting firms 1) report annual information about the firms and their audit practices, and 2) submit, as specified by the PCAOB or the SEC, more frequent information necessary to update the information previously filed with the PCAOB. Until now, the PCAOB had no requirement for annual reports or amendments to report material changes in initial registration information. The purposes of the new sections are 1) to keep the PCAOB up to date on a firm's basic professional information, such as name, location, licenses, and contact information; 2) to provide the PCAOB with current information regarding a firm's audit practice in order to facilitate analysis...
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...Marketing Project Potential Sources The company’s website is a good starting point, but a well-researched product needs to go beyond the corporate website. The following are several suggested sources. Annual Reports The following are several sources from which an annual report can be obtained. http://www.annualreports.com www.annualreportservice.com/ www.zpub.com/sf/arl/ www.prars.com/ Web Sites http://www.census.gov Provides access to general population figures. Overview of Economic Statistical Programs: http://www.census.gov/econ/overview/ Provides general statistics on American businesses (including retail). www.about.com Use the search feature to find articles on your product and company. Databases (Use these to find articles): Lakeland Library through OhioLINK offers you access to articles that have been published in journals, magazines, and newspapers. Many of these articles are not available on the general Web. To access these databases, you must be registered in the Library. Once you have registered, you can use the Web to go to the Lakeland Library home page (http://library.lakelandcc.edu) and click on Home Access – To Databases. Follow the prompts and then choose Listed by Name. Most of the articles are available in full-text (but not all of them). Business & Industry – Broad trends in industry; provides news items about acquisitions and mergers; product advertising and more. Business Source Premier – Good source for...
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