On Annual Reports… yay.

Pick an Annual Report from an organization that you are interested in. Write about why the Annual Report is relevant to the success of that business in 2014 and beyond.

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You can find McDonald’s annual reports dating back to 2010 in PDF format on their website. In the name of research I took a look at all 13 that were available – but will be addressing the 2013 one in this post.

I realize the blog question is not regarding presentation style, but considering we looked at print, video and “interactive” reports in class, I will briefly mention that:

In the past, you can see McDonalds used a magazine style structure and used a lot of images, infographics, stories, and pictures of executives and employees to tell their story. This was interwoven with the mandatory and dry financial reports and corporate structure breakdowns. McDonald’s has moved away from this model over the years, so much so that in the 2013 report there isn’t even a picture of the CEO or Chairman.

So – why is this annual report relevant to McDonald’s?

Because it’s McDonald’s opportunity to tell it’s story of the year passed to investors.

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According to the 2013 report, McDonald’s did not have a successful year.

The Golden Arches experienced marginal sales and share growth.

Here, is where McDonald’s corporation can specifically address and elaborate on the data and meaning behind the numbers. In an annual report, McDonalds is able to alleviate shareholder concern by explaining what happened, what they’re doing about it, and what to expect in the future.

100_ml_rm_c_lHere, investors can hear directly from the CEO and Chairman. In the 2013 Annual Report, the message is one of confidence in past performance. Both men bring perspective to the situation by reminding their audience of McDonald’s strong history, it’s mission, and the companies successful business model that has consistently yielded results. They bring a voice of assurance for the year to come and remind shareholders that McDonald’s is strong in a challenging industry.

Through this report McDonalds is able to put perspective on the data and highlight the positives within the corporation. They are able to address specific shareholder concerns and explain the low performance, the plan, and what to expect in the future.

– MC

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