Annual reports issued by companies generally contain three hidden intentions.
- Shareholders: Confirmation of performance and evaluation of operations
- Representatives: Situation report, shareholder persuasion
- Practitioners: Pressure to fulfill
For those involved in 'insight'-related work, 'numbers' often feel awkward or like something they'd rather avoid. However, the role of a representative goes beyond simply achieving high sales; it's about ensuring shareholder profitability. Therefore, it's a good idea to review company management-related numbers as a minimum amount of information during conversations.
In other words, the reason for skimming through the annual report as an uninvolved outsider is as follows:
- Confirming management concerns and internal company issues before engaging in conversations with potential clients
- Securing project proposal topics for sales purposes
The method of viewing is simple.
- Skip the sections filled with flowery language and move to the back, where the numbers are located.
- Focus on the quarterly investment details and performance summary sections.
- Verify related company articles to confirm the direction of decision-making.
The primary difference between company news and annual reports is that company news is filled with information intended for external release, while annual reports contain information that must be acknowledged internally.
Since their original purpose and roles differ, simply reviewing an annual report will inevitably have limitations in understanding the specific situation. However, it can provide an opportunity to at least comprehend the language of corporate management, which is represented by numbers.
Attempting to communicate using the language of the participants is akin to conducting research in the relevant language depending on the research topic and region – it's a fundamental requirement. Rather than simply avoiding numbers, understanding them to a certain degree and trying to understand the circumstances and perspectives of potential clients who are responsible for management can lead to gaining more than anticipated during conversations. This can also lay the foundation for a relationship that leads to sustained support in the future.
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