ANNUAL REPORTS

Importance of Annual Reports

Importance of Annual Reports

Introduction

The study of this course is going to be based on the company BMW and discusses importance and usefulness of company's annual report and accounts in understanding and analysing its market, productive and financial performance An annual report of a company is the most important instrument in financial communication is overwhelmed - but not hopeless. More and more extensive demands of various stakeholders lead the annual report in its current form to its limits. Already, many an annual report shows overweight and clumsy. In order to meet increasingly complex requirements in the future operate, it must be multimedia and the individual needs of its target groups. The annual report is considered the most important tool in corporate communication. But it gets increasingly under pressure from all sides.

BMW Productive Overview

The Bayerische Motoren Werke also commonly known as (BMW) is the world's most renowned automobile brand. The company is based in Germany with its headquarter is in Munich, Germany. BMW manufactures automobiles, aircraft engines, motorcycles, and other premium products Rolls-Royce, BMW mini. The company has a total of 23 production facilities around the globe in 12 different countries with representation in more than 140 countries. (Frost, 2002, 2)The company is famous for its world class luxury cars offered to international customers. BMW is considered as the world's leading and most prominent premium manufacturer. In the year 2007 the company reported a net profit of €3 billion, with more than 222,875 mini units, 1,276,000 BMW brand cars, and 1,010 Rolls-Royce cars. BMW AG, has employed more than 107,000 (2007) employees throughout the world. Despite the fact that the company lost the first position in the automobile sector which it held for many years, BMW remains among the top five companies on the DAX and (CTI) corporate trust index of German companies.

The company is still ahead of its competitors Daimler and Volkswagen in terms of market share and customer satisfaction. (Frost, 2002, 2) BMW is following a local production strategy; BMW is highly committed towards its long term strategy of market penetration, while at the same time escaping high duties on imported foreign produced cars. Another production and sales strategy used by the company is the (CKD) process which is known as completely knocked down process in which different components and parts are imported from different local and international assemblers.

Basically, the study confirms the impression that capture the imagination of the maker and the demands and expectations of target groups in key areas removed from each other. The core of the problem is that the Annual Report for more and more multi-function instrument that all possible reading groups to meet with all kinds of information needs in one fell swoop. Figuratively speaking, the Annual Report is scheduled bacon and become immobile in order to still meet the growing demands optimally. In other words: It is high time for a serious analysis and fitness training on a specific constitution.

BMW Financial Overview

BMW, being a multination company has ...