Pros And Cons Of Corporate Management

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D/ CORPORATE STRATEGEY IS A PROCESS OF COMBINING DIFFRENT FUNCTIONAL AREA OF A COMPANY IN A WAY WHICH WILL ACHIVE THE BUSINESS OBJECTIVE. THERE MAY BE VARIOUS PROS AND CONS IN STATING THE STRATEGIES IN THE ANNUAL REPORT, SOME OF ARE AS FOLLOWS Advantages Encourages Investment An annual report that delivers good news in the form of financial results encourages stockholder investment and higher stock value. A company planning a strategic corporate move may receive less resistance from interest groups and competitors and could gain support for business decisions and perhaps attract new sources of investment. One interesting point to consider is that, according to a paper by Daniel Ferreira and Marcelo Rezende that appeared in the spring 2007 edition…show more content…
The annual report is an opportunity to showcase their decisions and successes. A healthy annual report can sustain your company’s reputation, and the effort that goes into the report each year shows dedication toward your clients and a concern for investor relations. Disadvantages The biggest disadvantage of stating well-defined corporate strategies is the fact that these reports are made public so that anyone can read them. This includes companies that are in competition with your company. They may look at what direction you are planning on going in the future and take the same route so you will have competition in price and selling. The second disadvantage of having well-defined corporate strategies in their annual report is that even if the company has a bad year it still has to report everything even if it means it will loose…show more content…
They can look at the history of company and see if they pay out dividends to its stockholders. Along with looking at its current financial statements to see what type of expenses it has along with what income they had. As I have stated before they can have the biggest advantage by looking at where the company is going and you never know they may have a “hit” item in the works. b.Creditors can look at the ability of this company being able to pay them back. If a company is continually borrowing money off of creditors but is not expanding its company in any way such as size or new products it would give me an indication that they are borrowing money to pay off old creditors because they are not breaking even. This can show if the company will have the ability to pay creditors back along with if the creditor is willing to take the chance they may be able to get in at ground floor with a new product. c.Employees. Annual reports are effective for employees because they allow management to effectively evaluate employees on such key performance indicators as teamwork, innovation, and commitment to the job (Annual
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