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Date Created: 09/23/15
Analyst Report OBJECTIVE The objective of this assignment is to have you learn to interpret data from an annual report You will use data from the annual report from your assigned company to make observations about the company s financial and managerial performance and recommendations about whether or not to purchase stock in this company Each of the five parts of this assignment will be evaluated on the criteria outlined below LeBow Focus Economics Note industry market sector performance on economic growth and GDP Problem Solving Use analytical thinking skills to evaluate company performance and and the evaluative data necessary to make investment decisions Career Planning Explore some of the tasks and responsibilities for a career in investments andor portfolio planning Writing Writing specific to business such as Executive Summary and business article summaries Part 1 Executive Summa GOAL For this section of the assignment you will have to succinctly summarize important information included in the entire annual report to provide the reader with a quick overview of the contents An executive summary in business usually does not exceed one page It is important to learn how to process a lot of information weed through it and determine which pieces of that information are should be included in a summary What is the company mission The mission of General Mills Inc is to strive to nourish lives every day through its branded products communities it serves and the way it works to preserve the environment for future generations How has this company s financial performance been over the year outlined in the annual report Throughout the past year General Mills Inc has grown General Mills Inc has generated sales that exceeded the longterm goals set for the year There have been increases in all parts of the financial highlights except for one average diluted shares outstanding which fell 1 In net sales the company had an improvement of 8 from 137 billion in 2008 to 147 billion in 2009 Has the company shown improvement in any areas over that year Have there been any new productsservices over that year How is the company preparing for the future Part 2 Company Pro le GOAL For this section of the assignment you will have to locate pertinent company information contained in the annual report Bullet pointing this information is appropriate for your report Ticker symbol Mission Statement as it is printed in the Annual Report Corporate headquarters location World Headquarters Number One General Mills Boulevard Minneapolis MN 554261347 Phone 763 7647600 Name of CEO Name of CFO Number of employees Stock classifications common preferred both Exchange eg NYSE Nasdaq Part 3 Projections GOAL For this section of the assignment you will have to research past performance of your company and identify any trends that can help determine future performance You will have to track stock performance stock prices for the 2 most recent 12 month periods You will have to graph your tracking results and properly label the graph with monthyear price headings Part 4 Current Events GOAL For this section of the assignment you will have to use business periodicals online sources and the annual report to start to understand the relationship between significant internal corporate eventsexternal global events and company financial performance You will have to locate 3 articles about current events directly or indirectly affecting the company current is anything within the last 12 months You will have to submit a copy of each article used and a 1 paragraph summary of the article You will then have to write why you chose this article to exemplify an event that might have an impact on company performance Part 5 Recommendation GOAL For this section of the assignment you will have to use our com piled data to justify an educated guess on investment suggestions You will have to determine either buy or don t buy and back up your suggestion with strong reasoning You will have to identify strategies used for your analysis for example did you use ratio analysis competitive analysis trend analysis or other tools to help you make your decisions Explain what you used and specify what information your choices provided For example did you use the Current Ratio If so why What information did the current ratio provide that helped you determine the viability of investing in this company You must use at least 3 different tools strategies to make your educated guess Finally reflect on your learning by answering the following Key Take Away question Key Take Away What learning did this assignment provide that will benefit your future career in business Article Review due Wednesdax1 October 7 worth 30 points Walmart Article httpwww 39 39 39vm 200704Stop7theibllllvi htm Also review Video from the wwwmhhecomferre1m website for chapter 1 Under Interactives 7 Video case 1 12 page typed double spaced review of the article that includes the following 1 An overview of the article 7 what are the key points Walmart is one of the largest retailers in the world The company has always been known for everyday low prices but the company seems to be forgetting about its employees The employees earn around 20 less than regular retail workers Another issue that Walmart has with its employees is health insurance The employees make around 10 and hour and 1 will have to go to health insurance if they choose to By not making as much money as other retailers only around half of the employees working for Walmart have health insurance 2 Your opinion 7 Are you pro or con Walmart 7 site from the article or the Video in support of your position After reading the article I am con Walmart Ibelieve this because even though Walmart provides customers with low prices the employees are suffering 3 Describe in your own terms what The Free Enterprise System means 4 The free enterprise system is when individuals have the rights The business owners and individuals are free to make their own choices on their property location supplies and how to spend the profits they make Explain in your own words what you believe WalMart s responsibilities are ethically and socially to the communities in which they exist Walmart has many different responsibilities as a company The company has responsibilities both socially and ethically By having specific communities these mega stores get built and there is reasoning behind each one Ethical and social responsibilities coincide with the decision of each stores location Socially the company has to look at the target market The social aspect has the do with the types of clients that they will receive Walmart is not usually going to receive an upper class family The company appeals more to the middle lower class citizens This ties in with the ethical standing of Walmart Walmart as a company will not sell higher end higher priced products They sell discounted items that are affordable to most If they raised their prices dramatically they would lose most oftheir clientele Keytake away 7 what did you learn relative to business ethics andor pro ts as a result of completing the article review assignment Article Review 30 points Teacher Name Student Name CATEGORY 4 3 2 1 0 Discipine Identified 3 key Identified only 2 Identified onIy I Did not identify Identification areas of specific key areas of ey area of ny key a e business specific business specific business of specific weighted 5 discipline discipline discipline business Total possible pts dlsc39plme 8 Classroom Sfeljected1 areaj Did not seflect Connection 9 3959 39 e a an area 0 identified another discrpline and example of that identify another TIIS39EEQZ EJESIJ example or that 39 area 5 Artice Clearly I Clearly I Clearly I I Vaglue or Did not I Summar y article and article but article but did not summary of article provided provided only provi e article T m39gg zlijbfe ts insightful vague interpretation of p p 39 39 39 of 39 I of current relevance current relevance current relevance in business I13 in business in business Key Take Discussed key Did not discuss Away ta e away key take away concepts concepts weighted 25 Total possible pts 4 The Nature of Business To earn profits by providing products Tangible Cars food clothing Intangible A service An idea Business vs Nonprofit Organization Business Nonprofit Organization An individual or Provides products organization that especially services for tries to earn a some purpose other profit by providing than profits ex The products that Salvation Army 4300 satisfy people s American colleges amp needs ex IBM universities CocaCola The Goals of Business ForProfit Sector Nonprofit Sector Profit Goals The difference May provide goods between what it or services but not costs to make and for the purpose of sell a product and earning profits what the customer pays for it Overview of the Business World Economy Competition lnformatton Technology Social Responsibility and Ethics Legal and Regulatory Forces The People and Activities of Business Activities People Management Owners Marketing Employees Finance Customers Other stakeholders Investors Regulatory Agencies Why Study Business To develop skills and acquire knowledge to prepare for your future career To help you better understand the many business activities that are necessary to provide satisfying goods and services To help you become a wellinformed consumer and member of society Types of Resources Used by Business Natural Land forests etc not made by people Human Physicalmental abilities used by people to produce goods and services Financial Funds necessary to acquire needed natural and human resources What Is An Economic System The way a society distri Addresses the issue of to produce goods and unlimited demand with H resources Basic Questions to Be Asked of Economic Systems What goods and services and what quantity will satisfy the needs of the consumer How will the goods and services be produced a Who will produce them and with what resources How are the goods and services to be distributed to the consumer Types of Economic Systems Av ii i 1 2E flff k Communism Socialism H Capitalism Comparison of Communism Socialism and Capitalism Business ownership Competition Profits Product availability and price Employment options Communism Most businesses are owned and operated by the government None The government owns and operates everything Excess income goes to the government Consumers have a limited choice of goods and services prices are usually high Little choice in choosing a career most people work for governmentowned industries or terms Socialism The government owns and operates major industries individuals own small businesses Restricted in major industries encouraged in small business Profits earned by small businesses may be reinvested in the business pro ts from govemmentowned industries go to the government Consumers have some choice at goods and services prices are determined by supply and demand Some choice oi careers many people work in government jobs Capitalism Individuals own and operate all businesses Encouraged by market forces and government regulations Individuals are free to keep pro ts and use them as they wish Consumers have a wide choice of goods and services prices are determined by supply and demand Unlimited choice of careers Economic Systems and Where They Occur Communism Socialism Capitalism China Sweden United States North Korea India Canada Cuba Israel Japan Australia Mixed Economies Most countries of the world have elements of more than one economic system The FreeEnterprise System Individuals must have the right to own property and pass it on to their heirs People and businesses must have the right to earn profits and use them as they wish Individuals and businesses must have the right to determine how their businesses operate Individuals must have the right to choose their career where to live and what to buy The Forces of Supply and Demand Supply Demand The number of products The number of goods and that businesses are services that consumers willing to sell at different are willing to buy at prices at a specific time different prices at a Consumers are usually specific time Willing to buy more Of an Businesses are willing to item as its price falls supply more of a good or because they Want to saVe service at higher prices mOHGY because the potential for profits is higher Equilibrium Price of Handmade Rugs Prices of Rugs dollars 800 650 500 350 200 Equiiibrium Price Handmade Rugs The Nature of Competition Four Competitive Environments Pure Competition Many small businesses sell one standardized product Monopolistic There are fewer businesses than in a pure Competition competition system and the differences between the goods they sell are small Oligopoly Very few businesses sell a product each business supplies a large portion of the products sold in the marketplace Monopoly There is only one producer of a product in a given market Economic Cycles and Productivity Economic expansion occurs when an economy is growing and people are spending more money Economic contraction occurs when spending declines Overall Unemployment Rate in the US Civilian Labor Force Percent unemployment ED 15 10 l l I 1920 1930 1 940 1950 1950 1970 1980 1990 2000 2002 2003 2034 2005 Year Source Overall Unemployment Rate in the Civilian Labor Force 1920 2002 lnfoPease nd wwwinfogleasecomiga A0104719htm accessed October 30 2006 Measuring the Economy One commonly used measure is gross domestic product GDP is the sum of all goods and services produced in a country during a year Growth in US Gross Domestic Product Dollars Billions of Dollars 12000 10000 0000 13000 4000 2000 0 39 l l I 1050 1000 19m 1080 1090 20m 2002 2003 2004 Year 1 110 Source Gross Domestic Product or Expenditure 1930 2002 lnfoPease nd wwwinfopleasecomi9a AO104575htm accessed October 30 2006 Growth of The American Economy The Early Economy Primarily agricultural the use of natural resources The Industrial Revolution The development of new technology and factories The Manufacturing and Marketing Economies Devoted to manufacturing goods and providing services rather than producing agricultural products The Service and Internetbased Economy Devoted to the production of services that make life easier for busy consumers Final WM 60 percent of adult women work The Role of the Entrepreneur An entrepreneur is an individual who risks his or her wealth time and effort to develop for profit an innovative product or way of doing something The Role of Government in the American Economy Federal state and local governments intervene in the economy with laws and regulations designed to Promote competition Protect consumers employees and the environment The Role of Ethics and Social Responsibility in Business To set standards and principles used by society to define appropriate and inappropriate conduct To prohibit actions deemed unacceptable