Annual Report Project
August 19, 2011
Prof. Willie Gladden
Janet Rivera Cruz
Introduction In the following paper I will be discussing Amazon.com and its most recent annual report. In the report I will be answering a few questions as well. I will identify and explain the main sections of the annual report. I will also discuss the key factors that influence the company’s financial performance during the year. Once these questions are answered I will discuss the primary assets held by the company and conclude with how the management characterizes the internal control of the environment in the company. But before I start with term paper I find necessary to share a brief history on Amazon. com. Jeff Bezos founded Amazon.com in 1994. Originally the business started at his home garage with the back up financial help of his parents and the support of his wife and closed friends. Today Amazon.com is one of the larges internet sellers of media in the world. It has expanded its selection to include clothing, house wares and thousands of other items.
Identify and explain the main sections of the annual report The annual report should provide a comprehensive overview of the corporation’s businesses. According to About.com. the most creative aspects of an annual report are the cover and narrative sections and the financial section. It is the creator’s responsibility in collaboration of the business owners to make it attractive and readable. According to the teachings of Professor Willie Gladden throughout this course, the main sections of the annual report include Financial Statements, Management Discussion and Analysis, Notes and Disclosures and the Independent Audit.
The Financial Statement foe Amazon.com for the year 1997 generated $15.7 million in revenue. At the end of 1999, Amazon had raked over a billion dollars in sales. By 2010 it seemed as though the profit would never cease. Discuss the key factors that influenced the company’s financial performance during the year. In my opinion after reading the cover letter and 1997 letter to shareholders from Amazon.com Annual Report and doing a little research about their history, I would say that among the most important factors of the components that has given life to this business and kept it a Long Term fortune 500 includes: Leadership, management, motivation and lots of customer service. In leadership they provide a vision and direction, they will decide how to achieve the goals and inspire others. (Infrastructure) In management, they provide the tools like the Human Resources (people), money and the time. (Chapter 16, Business Course) setting the goals.
Motivation, placing their employees ahead their shareholders, celebrating company milestones with promotional gifts like T-shirts, taking them out to employee rally, luncheon for appreciation week etc. The tools used as promotional channels, the marketing mix, promotional mix and distribution channels, management decisions, discussions and analysis,
In the year 2001 Bezos had to make a very difficult management decision. Amazon.com reported fiscal loss of 1.4 billion, and had to lay off over 1000 of his company employees. In order to recuperate his loss Bezos started analyzing and discussing with his partners the idea of recruiting other companies such as Target, Toys R Us, Old Navy, and many others to sell their goods through Amazon.com.
Amazon is not directly responsible for inventory through these companies; they do get part of the sales, creating a profit for all involved. Since the inception of the idea, Amazon is now back on its feet and remains one of the most popular online vendors in the world today. Discuss the primary assets held by the company. All of the above components have help with company assets. As Mr.Bezos says in his