Need and Importance of Business Reports

8/4/2019 Need and Importance of Business Reports

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NEED AND IMPORTANCE OF BUSINESS REPORTS

A report is a logical presentation of facts and information. A good business must be an orderly

arrangement of some factual information that is objective in nature and serves some businesspurpose. It is designed to give a complete picture of what has taken place at a distance for the

reader who does not know about it and gathers knowledge about it from what the writer presents

in the report. In other words, it is a document that conveys specific information to someone who

wants to use that information.

The British Association for Commercial and Industrial Education defines a report as a document

in which a given problem is examined for the purpose of conveying information and findings,

putting forward ideas and sometimes making recommendations.

Thus, a business report is a compilation of information that has been sought, collected,

organized, and written to convey a specific message. The objective is either to present

information or to analyze a particular situation.

IMPORTANCE OF THE BUSINESS REPORTS

A report is a basic management tool used in decision making. Large scale organizations are

engaged in diverse activities, which are managed by different departments. The top executives

cannot keep a personal watch over all these activities. So, they have to base their decisions on the

reports they get from the heads of various departments.

The various purposes for which a report is helpful in decision making are as follows:

1. Problem Solving: Many business reports are written to illustrate a specific problemwithin the company. These types of reports present a problem along with solutions tohelp correct the problems.

Sample Report 1:

Motivational Strategies:

Ways to Increase Performance and Productivity

Preface

Owners and managers of businesses across the United States all have the same problem. Thisproblem has to do with reaching maximum employee performance and productivity. Manyowners and managers do not know how to correct this major problem. The purpose of this reportis to provide employers with a wide range of motivational strategies for achieving excellence byenhancing employee performance and productivity. My role in relation to this problem is to


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decide as an employee which strategy I would like imposed on me. However, sometimes theemployee does not have a choice. My role as writer of this report is to inform owners andmanagers of different motivational strategies they can utilize. During my research I havecompiled several motivational strategies I believe are excellent. These strategies includeorganizational behavior modification, rewarding high performance, setting goals, building

effective work teams, reducing employee stress, and enhancing employee participation. I haveincluded examples of these strategies used by companies who had performance and productivityproblems.

Executive Summary

This report examines the necessity employers face in trying to improve employeeproductivity. Many times employees can get side-tracked or slowed down for a number ofreasons. It is the employers job to motivate these employees and increase employee productivity.The best way to accomplish this is by using motivational strategies. Far too many businesses failto reach their maximum production because they do not motivate their employees. There are

many motivational strategies that can be used effectively. Setting goals, rewarding highperformance, and enhancing employee participation are a few motivational strategies thatbusinesses often use. However, employers must find the strategy that best suits them and theiremployees. The one thing every motivational strategy needs is employee acceptance andresponse.

I. Introduction

The purpose of this report is to provide employers with a wide range of motivationalstrategies for achieving excellence by enhancing employee performance and productivity. Everyemployer or manager strives to maintain a highly productive work force. These strategies apply

to managers of big corporations, which have many employees. This report will take aproblem/solution approach. I have conducted research by collecting information out of books,magazine articles, and journals.

II. Problem

It is virtually impossible to find a reasonably well-informed business person today who is notaware of the productivity problem in American industry. For the last ten years, productivity hasclearly been the most widely discussed topic in business publications, management seminars,industry conferences, and executive offices." "Management ineffectiveness is by far the singlegreatest cause of declining productivity in the United States. . . . In company after company,managers are ignoring major opportunities for productivity improvement, (Champagne andMcAfee,1)." This problem is critical and cannot be ignored or delayed until a later date.Managers must take the initiative and resolve the problem with some of the following solutions.


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III. Organizational Behavior Modification

A. Emery Air Freight perhaps the most well-known industrial application of a reinforcement-based strategy occurred at Emery Air Freight. "As a first step, Emery conducted a performanceaudit in order to determine the status of employee behavior before any systematic behavior

change plans were implemented. Based on the audit, the firm set standards or goals for each jobin various departments. The second step involved providing feedback designed to let employeesknow how they were performing according to these standards. The third procedure was toadminister positive reinforcement to employees for anything they were presently doing on thejob that was desirable or for any improvement in their job performance, (Rosenbaum, 59)."

Emery Air Freight had a cargo handler whose attendance was unsatisfactory. The supervisorused positive reinforcement and feedback to improve his attendance. He would reward theemployee and at the same time give him a reminder of the company goal.

B. Successfulness

How successful has Emery Air Freights approach been? "Before behavior modification wasintroduced in the customer service department, company standards were met only 30 to 40percent of the time. The program increased this figure to 90 to 95 percent, and even after fouryears performance remained at this high level. From a financial viewpoint, behavior modificationwas a success also. During one three year period Emery saved over three million dollars. At thesame time, the costs of implementing the program averaged only $5150 per year, (Rosenbaum,60)."

IV. Rewarding High Performance

There are many different rewards that can be given out for high performance. Some of theseinclude merit raises, bonuses, individual and group financial incentive programs, andmerchandise recognition incentives.

A. Sterling Optical Company

Sterling Optical Company, a retail optical company, has developed a program based onmonetary incentives and awards. The program consists of two parts. "First employees receiveawards when the branch attains its sales target. These awards are designed to encourageemployees to help the branch achieve its sales goals for each quarter and the year. In addition,the company distributes cash awards to each employee for the branches sales of specific products

determined each quarter. The second part of Sterlings incentive program is to give employeesawards for outstanding service to the branch and to the patients. Savings bonds, certificates, andplaques are given as awards, (Champagne and McAfee, 59)."

B. Costs


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This program is extremely effective but also costly to the Sterling. The program reportedlycosts Sterling $600,000 in cash rewards each year and $9,000 in trophies, plaques, certificates,and printed materials.

In this example we see how one company has attempted to increase employee productivity by

providing a variety of rewards in exchange for high performance. Below is a chart that showshow the reward expectancy plays out in the employees mind.

V. Setting Goals

A. Weyerhauser Company" A well-known study carried out at Weyerhauser Company showsthe practical significance of goal setting. Truck drivers at six company logging operations inOklahoma were studied. Each operation consisted of six to ten people who performed one of thefollowing tasks: felling trees; dragging the trees to a landing; loading the trees onto a truck; anddriving the truck to the mill where it was weighed and unloaded. A detailed analysis of eachoperations performance revealed that trucks were frequently falling short of their maximum legal

net weight. In fact, most trucks were returning to the mill carrying 60 percent of the maximumload, (Vroom and Deci, 91)."

Measures of the net weight of all thirty-six logging trucks were collected for threeconsecutive months prior to goal setting. The results of the goal setting were monitored for nineconsecutive months (i.e., October through June). The specific goal of 94 percent was achievedafter twelve weeks and represented a more than 50 percent improvement in performance. "Whilecorporate policy prevented a detailed presentation of the effect, the researchers maintained thatwithout the increase in efficiency due to goal setting, it would have cost the company $250,000for the purchase of additional trucks in order to deliver the same quantity of logs to the mills.This figure does not even include the costs for additional fuel or the expense of recruiting and

hiring additional drivers, (Vroom and Deci, 91)."

VI. Building Effective Work Teams

There are two primary ways corporations can develop effective work teams. One is for themanager to use a variety of informal team-building activities on a day-to-day basis. The otherway is for the corporation to invest in more formal step-by-step team-building programs.

A. Promoting Pride

One way to foster teamwork is by promoting pride among group members. The chain reaction

here is that pride leads to teamwork, teamwork leads to group success, group success leads toeven more pride, teamwork, and success. Joe Paterno, the Penn State football coach, attributes agood deal of his team is success to group pride. He explains it this way: "You start with the ideathat you build some pride. You make people feel that they are with a special company, a specialinstitution, that is worth making sacrifices for. If you are the kind of person that we call the eweand usi people that can work with the group, by being unselfish, benefits will accrue toyou."There is no magic formulas for getting team members to take pride in their group.Onedevice often used is to give special names to various groups such as "Fact Finders". Other


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organizations stress the history of the group and point out its significant achievements or howdifficult it is to join. In addition, some firms encourage managers to repeatedly tell employeeshow proud they are of them and that they too should take pride in their accomplishments, (Quick,109)."

VII. Reducing Employee Stress

A. Consequences of Stress

The idea that stress can have negative physical and psychological effects on people iscertainly not new. "Research has pointed out the linkage between stress and a variety of physicalailments such as heart disease, ulcers, and arthritis. Employers at that time were also beginningto actively discuss problems associated with apathetic workers-people frustrated and dissatisfiedwith their lives and jobs. Managers were reporting sleeplessness, anxiety, and tension. In short,studies were showing the effect of stress on physical and mental well-being, (Champagne andMcAfee, 179)."

B. American Telephone and Telegraph

American Telephone and Telegraph announced the most drastic reorganization in the BellSystems history. The medical directors throughout the system were reporting higher levels ofanxiety among employees coming in for routine physicals. The anxiety followed a shake-up thatchanged job titles, duties, and whole methods of working for about 250,000 employees, or aboutone-third of Bellis work force. One of the doctors gave this explanation, "the Bell System isunder stress because of external influences, but other industries are too." The negativeconsequences of stress can be avoided through proper application of diagnostic methods andpreventive management interventions.

VII. Enhancing Employee Participation

A. A.E. Stanley Agriproducts Corporation

The A.E. Stanley Agriproducts Corporation began an experiment in "self-management" severalyears ago. The plant employs technicians that use computer-controlled machinery to convertcorn into high fructose syrup. The employees work three twelve-hour days, take three days off,and then work three nights." Employees are divided into sixteen teams of about fifteen peopleeach according to functions-production, maintenance, and quality control. Each team choosestwo leaders from its ranks, one of them task-oriented, the other in charge of training, discussion,

and records. The teams make their own work assignments within the plant is overall schedules,and have a voice in hiring, promotion, and discipline of team members, (Champagne andMcAfee, 197)."

Three years after the experiment began productivity has risen to extraordinaryheights."Operating costs are below those of other plants, absenteeism and turnover are under onepercent, downtime in a twenty-four-hour workday is less than one percent, and productions runat 115 percent of engineering specifications, (Champagne and McAfee, 198)."


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B. Benefits

Some of the benefits of participation are that participation will result in greater knowledgeand expertise in case a problem should arise. If subordinates are highly knowledgeable about anissue, their input may improve the quality of a decision. Participation may also result in greater

job satisfaction because it satisfies needs for achievement, responsibility, recognition, and self-actualization.

IX. Summary

In this report I have described six different motivational strategies: organizational behaviormodification, rewarding high performance, setting goals, building effective work teams, reducingemployee stress, and enhancing employee participation. I have also given examples ofbusinesses, who utilize these strategies. They can be just as successful for your own business.

X. Conclusion

The purpose of this report was to provide employers with a wide range of motivationalstrategies for achieving excellence by enhancing employee performance and productivity. Thesestrategies include organizational behavior modification, rewarding high performance, settinggoals, building effective work teams, reducing employee stress, and enhancing employeeparticipation. Employers have been provided with all the necessary information needed tointroduce one of these strategies to their employees. All they have to do is choose which onewould work best for their business.

XI. Recommendations

Employers need to weigh the benefits and costs of each strategy and then introduce the onethat best suits them and their employees. I believe the two most effective strategies arerewarding high performance and setting goals.

2. Situational Awareness:Business reports are vital for the situational awareness of company owners andmanagers. Reports contain items such as budgets, income statements, cash flowstatements and long-range statistical projections, keeps decision-makers updated ofthe health of the company.

3. Comparison:Business reports are very significant in facilitating comparison between two or morealternatives by analyzing the alternative on various parameters and recommend a superioralternative, thus helpful in making a correct decision.


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Sample report 2

Executive summary

The purpose of this report was to analyse two portable computers and recommend a suitable

machine for the training staff to use at client sites.

This report has considered two machines suitable for corporate use that can accommodatemodern facilities such as e-mail, video conferencing and assist staff with training courses.

The Hewlett Packard Omnibook 3000CTX model 5/233 is a well made portable computer with agood size screen and keyboard. For the price of this model you would expect to see morememory, a CD drive and a Windows based power management set up. (Australian PC Authority,April 1998, 'PCs and Notebooks - Reviews', p.82)

Like the Hewlett Packard model the Micro-pro 8500 Series has a good size screen and keyboard

but also comes witha numeric pad. This machine is ideal for the business user who wantsusability, comfort and performance. (Australian PC Authority, April 1998, 'PCs and Notebooks -Reviews' , p.81)

After taking both machines into consideration, it is recommended that the Micro-pro 8500 Serieswould be the most suitable computer due to its value for money, durability and standard features.

1 Introduction

1.1 Purpose

The purpose of this report was to analyse two portable computers and recommend a suitablemachine for our new training staff to use at client locations.

1.2 Scope

While investigating these two computers it was important to consider their suitability forcorporate use, standard features, optional benefits and warranties.

1.3 Method

The information used in this report was collected by consulting an independent review by the

Australian PC Authority magazine and contacting the individual companies for additionalinformation on the technical specifications and warranties on the machines.

1.4 Limitations

Local computer stores did not stock either machine. Additional information difficult to locate. Software packages included with the machine not specified.


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1.5 Assumptions

It has been assumed that the Microsoft Office software package will be installed on thecomputers to ensure our training staff have access to PowerPoint. This program will enable themto present effective teaching media.

As our staff regularly use computer applications it has been assumed that the implementation ofportable computers will cause little delays for the company.

As most computer companies offer clients an extended warranty, it is assumed that All PurposeTraining Company will have the option to purchase an extended warranty for a period of oneyear.

1.6 Background

The All Purpose Training Company is a well respected supplier of quality executive training

courses for the business community. The All Purpose Training Company has statewiderepresentation with plans to expand interstate within the next 12 months.

All Purpose Training Company has a demand to supply new clients with numerous trainingcourses. With such demands it is crucial that training staff can have computer access for trainingpresentations and be able to complete day to day operations while mobile.

2. Findings

2.1 Micro-pro 8500 Series

Cost: $7895 RRP Weight: 4.5 Kg Size: (W x D x H) 357 x 275 x 50mm Screen size: 15.1" Clarity of screen image: Resolution could be higher, set at 1,024 x 768 you can see the

pixels, but very easy on your eyes. (Australian PC Authority, April 1998, 'PCs andNotebooks - Reviews, p. 81)

RAM: 64 Mb, RAM can be raised to a maximum 128Mb for $1140

Disk Drive: CD-ROM and 3.5" FDD Speed of the CPU: Pentium processor Battery capabilities: Lithium-ion battery, smart battery option available. Lithium-ion

battery lasts 2.5 hours without smart battery upgrade. (Australian PC Authority, April1998, 'PCs and Notebooks - Reviews, p. 81)

Service agreements and warranties: Two year parts and labour warranty2.2 Hewlett Packard 3000CTX 5/233


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Cost: $8245 RRP Weight: 3.1 Kg Size: (W x D x H) 304 x 238 x 47mm Screen size: 13.3" Clarity of screen image: Resolution is set at 1,024 x 768. Reasonably easy to read... with

normal working conditions. (Australian PC Authority, April 1998, 'PCs and Notebooks -Reviews, p. 81)

RAM: 16Mb, upgrade available, $242 for 16Mb. Disk drives: 3.5" FDD, CD-ROM available for $570 Speed of the CPU: Pentium processor Battery capabilities: - 2.5 hours from a lithium-ion battery Service agreements and warranties: All Hewlett Packard Omnibooks come with a 3 year

parts and labour warranty. (Stephen, 7/5/1998, Telephone Interview, Customer ServiceOfficer, Hewlett Packard Information Centre, Hewlett Packard)

3 Discussion

3.1 Comparison of computers

The following table summarises the important points of comparison between the two portablecomputers - Hewlett Packard Omnibook and Micropro 8500 Series.

Table 1: Comparison of two portable computers

Hewlett Packard Omnibook Micropro 8500 Series

Initial cost $8245 $7895

Weight 3.1 Kg 4.5 Kg

Size (Dimensions WxDxH) 304 x 238 x 47mm 357 x 275 x 50mm

Screen Size 13.3" 15.1"

RAM 16 Mb 64 Mb

Battery Time 2.5 Hours 2.5 Hours


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Warranty Period 3 Years 2 Years

3.2 Initial cost

There is a RRP difference between the two computers of $350. In order to have the computersready for staff use, upgraded memory size would be required on the Hewlett Packard model.

3.3 Weight and size

The Micro-pro computer weighs an extra 1.4 Kg. This is substantially heavier, but the Micro-prois a larger machine with each dimension larger than the Hewlett Packard computer. Micro-promeasures 53W x 37D x 3H mm larger.

3.4 Screen size

There is a notable gap between screen sizes. Micro-pro has a 14.1 inch screen compared withHewlett Packards 13.3 inch screen. When using over long periods a larger screen is preferred toavoid eye strain.

3.5 Clarity of screen image

The resolution on both machines is set a 1,024 x 768. Pixels can be seen on the Micro-pro model,while the Omnibook is reasonably easy to read. (Australian PC Authority, April 1998, PCs andNotebooks - Reviews, p. 81 - 82)

3.6 RAM and hard disk size

RAM between the two machines varies greatly. The Australian PC Authority states that theMicro-pro comes with 64 Mb of RAM standard, with an option of buying the maximum 128 Mbfor $1140. They also state Hewlett Packards Omnibook comes with 16 Mb RAM, but as mostcomputer applications require 32 Mb, this extra memory will cost you $242. Both machinescome with a standard 3.5" FDD. Only the Micro-pro machine comes with a CD-ROM drive, youmust buy this as an extra for the Omnibook for a cost of $570. (Australian PC Authority, April1998, PCs and Notebooks - Reviews, p. 81- 82)

3.7 Speed of the CPU

With 32 Mb of RAM fitted the Omnibook is one of the fastest portable computers the AustralianPC Authority magazine has ever seen, They also found that with 64 Mb RAM the Micro-pro wasnot exceptionally quick but for word processing and other office tasks it was quite acceptable.

3.8 Battery capability

Both machines come with a standard lithium-ion battery which can support the computers for upto 2.5 hours. The computers come with power management tools that will save battery power. A


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smart battery option is available on the Micro-pro for $60. (Australian PC Authority, April 1998,PCs and Notebooks - Reviews, p. 81)

3.9 Service agreements and warranties

Micro-pro supplies their clients with a two year part and labour warranty, while Hewlett Packardsupplies a three year parts and labour warranty. It is assumed that when the machines arepurchased a service agreement will be negotiated with the option to extend the warranty.4.Conclusion

After investigating the Hewlett Packard Omnibook 3000CTX 5/233 and the Micro-pro 8500Series portable computers, it was found that both models are suitable for corporate use andwould meet All Purpose Training Company requirements.

It is important to consider the long term benefits to the company when considering whichcomputer was best suited. Apart from initial purchasing expenses, warranty, speed, size and

memory were some factors which have been taken into account. Software suitability was alsoconsidered.

The computers had to be easily adaptable for new technology such as e-mail, video conferencingand presentation aids, for future company requirements.

Both computers are distinct from each other and, although both companies have the corporateuser in mind, Micro-pro appears to be offering an exceptional package.

5. Recommendations and implementation

The findings and conclusion in this report support the following recommendations:

1. The Micro-pro 8500 Series portable computer is purchased at a rate of one computer pertraining staff member.

2. The smart battery option is purchased with each computer; this will assist with heavyworkloads and long training programs.

3. Staff must have e-mail access on their computers to enable them to be in contact with thecompany.

4. All Purpose Training Company should negotiate price, warranty and ongoing serviceagreements with Micro-pro direct.

5. To reduce company long term expenses:o The company could investigate the viability of staff leasing the computerso A staff option of buying the computers for personal use after the warranty period

expires.

6. Computers should be available to staff after a maximum.4. Financial Reporting: Business reports might be written from a financial statement

perspective. This type of business report are aimed at advisers. To an extent, it can be


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used to inform employees about the financial standing of the company as well as helpfulin taking short term and long term financial and investment decisions.

5. Marketing Reports: Business reporting can be used within each department to gaugechanges in marketing, sales and areas where resources may be underused or overused. A

business report can be important when setting up marketing strategies. Before entering anew market or targeting consumers, a company may write a business report that an

advertising agency can use to help devise a marketing strategy.

Sample Marketing Report:

Executive Summary

Purpose

The purpose of this document is to present a study of the opportunities for

Sweetlix to expand its business globally and to make an initial proposal that

Sweetlix pursue opportunities in Brazil. Sweetlix has focused on its United States

market, but opportunities exist to penetrate global markets.

Methodology

In order to complete this analysis, we used web-based Global Marketing

Management System Online (GMMSO), which is a strategic planning and

marketing tool designed to help complete global marketing analysis.Additional

research for this project was completed through visiting with Sweetlix

International Marketing Manager and through independent research using the

Internet.

Phase 1 - Key Findings

Sweetlix is a leading manufacturer of feed block supplements for cattle in the

United States but has minimal business overseas. After an evaluation of Sweetlix,its products, strategies, international involvement; the overall feed industry; the

market; and the competition, our analysis indicated that global opportunities exist

for entry by Sweetlix.The global readiness analysis suggests Sweetlix use a

Foreign Sales Branch.


Seven countries were evaluated using a macro screening methodology.Cattle

population, land area, vegetation and land use, climate, and gross national product

were identified as factors that would affect potential sales.These criteria were

weighted to give a relative score for each country in an effort to narrow down our

selection.Next, market accessibility was evaluated for our three remainingcountries for Sweetlix and its block product.Protection of patents, transportation

systems, tariffs, trade embargos, company attitude toward foreign investors, and

location of country were each evaluated and scored to give another relative

weight, which narrowed our selection to Brazil and Australia.Finally, a micro

screening process of the level of competition and the local products was

evaluated, and the results identified Australia and Brazil for further evaluation.


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Brazil and Australia have an abundance of cattle and would be ideal for Sweetlix

to enter the market with its block supplement products.Through our analysis, we

determined that Brazil appears to have the greatest potential because of its cattle

population and the fact that no competitors exist in the block supplement feed

business.All supplements are currently purchased as loose minerals.Ourcontacts are much stronger in Australia due to it being the headquarters of Ridley

Corporation, Sweetlix parent company, but existing contacts with Brazilian feed manufacturers

have previously been established.Based on this information,Brazil was selected for further analysis.Phase 4 - Key Findings

We have determined through our analysis that a manufacturing joint venture

would be the best entry strategy into Brazil for Sweetlix.Sweetlix will

incorporate the pricing, distribution, and promotional strategies used in the United

States into this new market in Brazil because the products are not affected by

culture or product use and because the same distribution channels exist in Brazil.Overall, Sweetlix should continue to rely on its strengths (which include superior

quality), its patented products, and diverse product line.In addition, Sweetlix

should develop its brand like it did in the United States.Based on this analysis,

we believe that by the third year Sweetlix could realistically achieve $9.6 million

in earnings from an initial $27.5 million investment.Conclusions

Sweetlix is a leading manufacturer of block feed supplement products in the

Unites States but has limited global experience.Opportunities exist for Sweetlix

to pursue global markets using its existing strengths.These opportunities show

promise for improved returns for Sweetlix based on the industry market potential.

Sweetlix superior quality, patented products, and diverse product lines are the framework for global success.A joint venture would be the best mode of entry

for Sweetlix in Brazil and would result in a profitable investment.Recommendation

We believe that Sweetlix should pursue establishing a foreign sales branch, likely

through a manufacturing joint venture, and make its global entrance into Brazil.

Further research should be completed prior to making the initial investment.We

would recommend starting with additional market research completed within

Brazil while simultaneously seeking potential partners.These partners must be

able to provide the links needed for Sweetlix to become a dominant competitor in

the industry.Once Sweetlix has established itself within Brazil, it must continueits quest to enter other global markets.

6. Business Communication:A business report can be the best way a company has tocommunicate vital and background information to others. Many larger companies thatwrite business reports throughout the year to employees and for board members hire astaff which keeps company informed about latest developments and changes and writecurrent business reports. Depending on the situation, a well-written business report


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facilitate communication with external parties like financial institutions to acquirefunding, investors to keep stocks of a particular company as well as its customers. .

Conclusion:

In the modern business scenario, reports play a major role in the progress of business. Reports

are the backbone to the thinking process of the establishment and they are responsible, to a great

extent, in evolving an efficient or inefficient work environment as reports present adequateinformation on various aspects of the business, all the skills and the knowledge of the

professionals are communicated through them, helps the top line in decision making, helps in

problem solving and communicate the planning, policies, and other matters regarding an

organization to the masses.

Documents

Need and Importance of Business Reports