Annual Report
What differences, if any, do you perceive in the approach each organization presents in its annual performance? Is information and data presented clearly so that the reader can make clear inferences about how the organization performed?
I believe the two organizations, Bank of America, and JP Morgan format their annual reports to reflect the culture of the business. Bank of America, due primarily to the negative sentiments prevailing in the marketplace, structures their annual report to dispel myths regarding company performance. The tone of the report isn't overly optimistic nor is it overly pessimistic. The report reports the facts as they stand at that point in time. Conversely, JP Morgan's report is much more candid, truthful and optimistic, reflecting the company's outstanding performance. The report is filled with success stories, future growth prospects and failures along the way. JP Morgan, presents the facts clearly and in a concise manner. He describes aspects of the company that are relevant to consumers. Such activities include the Washington Mutual acquisition, and growth opportunities (Ellis, 2008). Bank of America however seemed somewhat esoteric in their approach to the annual report. Figures were difficult to locate in some instances. Both reports however did provide ample information that a potential stakeholder or investor would find interesting. However, I do admire Moynihan's ability to divest of non-core assets in order to provide greater shareholder wealth (Son, 2011).
What goals, challenges, and plans do the organizations emphasize in their discussion of results?
Both banks are operating in tough macroeconomic conditions. Net Interest Margins (NIM) has been shrinking due to the prevailing low interest rate environment. Furthermore, loan demand has subsequently declined due to uncertainties within the global...
The presidential election, excessive banking regulation, tepid economic growth, and negative consumer sentiments all help curtail otherwise strong loan demand. Businesses are reluctant to hire individuals as they are uncertain regarding the future course of the country. As such, consumers are responding by saving more, purchasing fewer products. This activity has a direct impact on loans as both businesses and consumers are reluctant to use any lines of credit.
Banks have responded with cost cutting initiatives that are designed to help offset the lower revenue. Bank of America, for instance has initiated project new BAC. This cost cutting initiative is designed to eliminate 30,000 jobs, streamline the business, and save approximately $8 billion dollars a year. JP Morgan is utilizing its size to achieve economies of scale. They are combining operations together to provide a more comprehensive package of services. These initiatives will help the company save roughly $100,000 million dollars. The emphasis of both annual reports was placed primarily on cost cutting initiatives that can ultimately offset the temporary lack of revenue.
How does the format and organization of each report enhance or diminish from the information being presented?
To begin, Bank of America and JP Morgan are polar opposites in regards to underlying business operations and performance. This contrast is directly reflected in their financial reporting metrics and behaviors. Jamie Dimon, arguable one of the best banking CEO's of our time, formats his annual reports in a more conversational tone. His reports begin with a shareholder letter that should be the envy of the executive suit. Typically, shareholder letters add little value to the actual shareholder. The letters have overly broad and generic statements that reveal nothing regarding the operations of…
That it conveys the ideas with clarity and concision is important -- if more detail is wanted the investors know to look in the 10-K. The tone is effective as well. The audience has an interest in specific information about the company (financial) but it also wants to feel good about the company. The choice of words, the soft colors and the images of happy people all serve to convey
The paradox of strategic planning is that the fact that market and industry conditions often force companies to shorten their R&D and strategic plan execution timeframes while the complexity of products and resulting coordination with suppliers, buyers and channel partners increases. This paradox of strategic planning is the pressure to drastically speed up the R&D and launch processes while at the same time ensuring the same agility, accuracy and
Instead of photographs, in many cases the designer uses type to make its message. For example, in big white letters on a full bleed red page, the section reads: "How are we making banking better?" This is followed by the next page, again with large gray letters on a stark white background saying, "By being clear and easy to understand." These large letters with very few words work very
6%, versus 6.1% in 2008. The return on equity was -6.1% in 2009 and was 15.5% in 2008. The asset and equity levels were relatively stable for the two years, so most of the changes can be attributed to changes in the net income. To investigate those net income changes, the margins can be analyzed. The gross margin for 2009 was 3.14%; for 2008 it was 19.8% and for 2007
corporate annual report communicate stockholders interested parties financial statements. The annual report a summary corporation's operations previous 12-month time period states corporation's plans future. The Wal-Mart Stores 2012 Annual Report Wal-Mart's annual report, like the annual reports of most economic agents, can be found on their website, under the section designed for investors. This placement of the annual report is indicative of its financial importance and its role as a source
Wal-Mart's Annual Report: The role of ethics and compliance in a business can be described as the link between the business environment and the three levels of the organization or business. These levels are the macro level, which is the national or global context of the business, the institutional level that entails the ethics that characterize a company, and the individual level ie. personal ethics in an organization. In the
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