Lectures 2 & 3 Flashcards
Good/Strong Rep Benefits
RETAIN - customers, employees
INCREASE - sales, stock price
POSITIVE - media
LESS - regulation
Rep Influences
Primary: personal experience
Secondary: what friends/family say
Tertiary: what mass media says
Reputation and Comms Roles
Attention Generation, Uncertainty Reduction, Evaluation
Attention Generation
Raise profile, increase visibility, get in minds of potential ShH
BY web, SM, ads, networking
Uncertainty Reduction
explain org mission and position in industry, articulate business dimensions BY
pitching story to media, presentations, SM storytelling
Evaluation
attract/retain ShH, display competence/relevance BY measuring, identifying growth opportunities, targeted SM, forging partnerships
Reputation IS
CO-OWNERSHIP of current/future StH
ALIGNING words and deeds
RELATIONSHIPS ever evolving
MIS-STEPS pose risks
Financial Knowledge for Comms
TRANSLATE
STORYTELLING
AWARENESS for StH
Income Statements (Financial statement)
AKA Profit and Loss
Balance Sheets (Financial statement)
net worth, assets, liabilities
Cash Flow Statements (Financial Statement)
money generated and spent
Revenue (Income Statement)
money from operations before expenses
Operating Income (Income Statement)
Money after operations expenses, before taxes/debt
Net Income (Income Statement)
Money after all expenses including taxes
Costs of Goods Sold (Income Statement)
direct costs to produce product
General & Administrative Expenses (Income Statement)
day-to-day operations expenses, not directly related to producing product
Operating Margin
Operating Income (profit) divided by Net Revenue. Profitability ratio on each dollar of sales generated before interest/taxes/dividends
Net Margin
Net profit divided by net revenue. Ratio of profit after all costs
Balance Sheets
Assets (valuable things that can be sold, used to make products)
Liabilities (debts/money owed)
Shareholders Equity (amount invested/retained - if all assets/liabilities settled, amount left for ShH)
Find Financial Performance Info:
investor relations pages, news releases, annual reports
GAAP
Generally accepted accounting principles, rules set by FASB for US reporting standards
IFRS
International financial reporting standards - made by IASB (international accounting standards board)
MD+A
Managements Discussion & Analysis - explains financials in more detail, in annual/quarterly filings
Annual Reports
expands on story, Trents, forecasts. less financially detailed than Q4 report
