Writing Business Reports

Writing Business Reports By Papia Bawa Definition of a Report: A business report is a professional document designed to convey information to assist in decision-making. Scope of Reports: Some reports might present the actual solution to solve a business problem. Other reports might record historical information that will be useful to assist in future decision making. Purpose Statements in Reports:  Purpose statements give a clear understanding of why a report is written. They could be written either as a statement or a question. To determine ways to improve employee morale. (statement) To design a new procedure for the company’s annual inventory. (statement) Should new computers be purchased to replaced the older models? (question) Should the office arrangement be open or modular? (question)     Types of reports:  1. 2. 3. 4. 5. 6. Short Reports: Expense reports Incident reports Periodic and progress reports Lab and test reports Field reports White Papers  1. 2. 3. 4. 5. 6. Long Reports: Feasibility reports Recommendation reports Proposals Quarterly and Annual reports Long range planning reports White Papers Steps in Writing a Business Report: 1. 2. 3. 4. 5. 6. Determine the Scope of the Report Consider Your Audience Gather Your Information Analyze Your Information Determine the Solution Organize Your Report Determine the Scope of the Report  The scope of the report is defined by determining the factors which you will study. You need to limit the amount of information you will gather to the most needed and most important factors.  For Example:  Factors to be studied to determine ways to improve employee morale might include: Salaries Fringe benefits Work assignments Work hours Evaluation procedures Consider Your Audience  1. 2. 3. 4. 5. 6. Avoid false assumptions : That the person who will first read or edit the report is the audience. That the audience is a group of specialists in their field. That the audience is familiar with the subject of the report. That the audience has time to read the entire report. That the audience has a strong interest in the subject of the report. That the author will always be available to discuss the report. Kinds of Audience:    Primary:People who have to act or make decisions on the basis of the report Secondary:People affected by actions of the primary audiences would take in response to the report Immediate:People responsible for evaluating the report and getting it to the right people Additional questions to ask regarding your audience are: 1. 2. 3. 4. 5. 6. How much background will the audience need? Do you need to define any terms you are using? What language level will be most appropriate for your readers? How many and what kind of visual aids should you use? What will the audience expect from your report? Does the reader prefer everything given in detail or merely a brief presentation that touches upon the highlights? Gather Your Information    Information you gather can be of two types: Secondary information gathered and recorded by others. Primary information you gather and record yourself. Remember:  Process your information carefully. Secondary information may be outdated, inaccurate, or biased.  Analyze Your Information 1. 2. Analysis is the most important source of gathering material for any report. Analysis serves as a focal point for research and as a criteria list. The importance of Analysis, continued:  1. 2. Your analysis (both internal and external) serves the task of both clarifying your thinking. and also becoming the backbone of your recommendations later. Analysis in report writing: 1. 2. 3. 4. 5. PEST or Macro-environmental Analysis S.W.O.T Analysis Micro-environmental Analysis Internal environmental Analysis Five Forces Analysis. PEST or Macro-environmental Analysis  1. 2. 3. 4. Deals with: Political issues Economic issues Socio-Cultural issues Technological issues Why Political issues:  The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. What Political Issues:     How stable is the political environment? Will government policy influence laws that regulate or tax your business? What is the government's position on marketing ethics? What is the government's policy on the economy? Why Economic issues:  Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning and reporting for international marketing.  What economic issues:     Interest rates The level of inflation Employment level per capita Long-term prospects for the economy Gross Domestic Product (GDP) per capita Why Socio-cultural issues:   The social and cultural influences on business vary from country to country. It is very important that such factors are considered. What Socio-cultural issues:        What is the dominant religion? What are attitudes to foreign products and services? Does language impact upon the diffusion of products onto markets? How much time do consumers have for leisure? What are the roles of men and women within society? How long are the population living? Are the older generations wealthy? Do the population have a strong/weak opinion on green issues? Why Technological issues:  Technology is vital for competitive advantage, and is a major driver of globalization. What technological issues:     Does technology allow for products and services to be made more cheaply and to a better standard of quality? Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc? S.W.O.T Analysis  1. 2. Means: Strengths and Weaknesses internal to the business, and Opportunities and Threats external to the business. Uses of S.W.O.T   SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. Strengths could be:      your specialist marketing expertise. a new, innovative product or service. location of your business. quality processes and procedures. any other aspect of your business that adds value to your product or service. Weaknesses could be:      lack of marketing expertise. undifferentiated products and service (i.e. in relation to your competitors). location of your business. poor quality goods or services. damaged reputation. An opportunity could be:      a developing market such as the Internet. mergers, joint ventures or strategic alliances moving into new market segments that offer improved profits a new international market a market vacated by an ineffective competitor A threat could be:      a new competitor in your home market. price wars with competitors. a competitor has a new, innovative product or service. competitors have superior access to channels of distribution. taxation is introduced on your product or service. Be careful not to:  Confuse the internal (SW) with the external (OT). Rules for S.W.O.T:     be realistic about the strengths and weaknesses of your organization. analysis should distinguish between where your organization is today, and where it could be in the futures. be specific. Avoid gray areas. always analyze in context to your competition i.e. better then or worse than your competition. In addition, remember:   That elements of some characteristic of a business may be a strength, Whereas other elements of the same characteristic may be a weakness. For example,   An autocratic all-powerful leader is probably a strength in terms of purposefulness and speed of decision-making, Yet a weakness in terms of participative management. Internal environmental Analysis  All factors that are internal to the organization are known as the 'internal environment‘. These are determined by the Five ‘M’s.  The Five ‘M’s      Men Money Machinery Materials Markets Five Forces Analysis  Five forces analysis helps the report writer to contrast a competitive environment. The Focus of Five Forces  The single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyze the market for Business Computers i.e. one of its SBUs.  The Key Areas of the Five Forces:     threat of entry the power of buyers the power of suppliers the threat of substitutes The threat of entry    Economies of scale e.g. the benefits associated with bulk purchasing. The high or low cost of entry e.g. how much will it cost for the latest technology? Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up? Continued    Will competitors retaliate? Government action e.g. will new laws be introduced that will weaken our competitive position? Cost advantages not related to the size of the company e.g. personal contacts or knowledge that larger companies do not own or learning curve effects. The power of buyers  1. 2. 3. This is high: Where there a few, large players in a market e.g. the large grocery chains. If there are a large number of undifferentiated, small suppliers e.g. small farming businesses supplying the large grocery chains. The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to another. The power of suppliers  1. 2. 3. The power of suppliers tends to be a reversal of the power of buyers where: The switching costs are high e.g. Switching from one software supplier to another. Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft. Customers are fragmented (not in clusters) so that they have little bargaining power e.g. Gas/Petrol stations in remote places. The threat of substitutes    Where there is product-for-product substitution e.g. email for fax Where there is substitution of need e.g. better toothpaste reduces the need for dentists. Where there is generic substitution (competing for the currency in your pocket) Micro-environmental Analysis  This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders.  What micro means:  Micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence.  Determine the Solution   Your solution must be based on the results of your analysis and gathered information. You must consider all alternatives before recommending the best one. A word of caution  A tendency in business report writing is to "slant" information in the report to lead the reader to the decision the writer wants. Remember  You must report all pertinent information-good and bad. The credibility of the report (and your credibility) is at stake.  Also make sure   That a solution is even requested. Depending on your position in the organization and the particular business study, a solution may NOT be requested in the report. Your purpose would then be to present the objective facts. These facts would be used by someone else to determine the best solution. Organize your Report  1. 2. 3. A report could be presented as a: memo report a standardized form report or a formal report Organization Process Inductive order - moving from known to unknown 1. Orientation (introduction) 2. Facts (perhaps including their analysis) 3. Summary or conclusion 4. Recommendation Organization Process continued 1. 2. 3. Deductive Order: Start with conclusions. Then present support facts and analysis. Often preferred for short reports. Organization by Division 1. 2. 3. 4. Division by time period (e.g., quarter) Division by place (e.g., sales region) Division by quantity (e.g., sales by categories of amounts) Division by conceptual factors (e.g., worker availability, transportation facilities, etc.) Effective Organization involves 1. 2. Design Presentation Design Issues  1. 2. Coherence: Each fact must be in its logical place. Relationship of each fact to other facts and to overall report must be clear. Elements of Design  Text: Headings 1. for helping the reader find a topic or component 2. making transitions 3. establishing order We can use multiple levels of headings. Text: Fonts: 1. 2. Variations in fonts can be used to set off pieces of text (headings, quotes, etc.) Do not get carried away with use of fonts too distracting Text: Indentation and justification  As with headings and subheadings, can be used to show relationship/hierarchy of topics. Text:Bullets: 1. 2. 3. Excellent for lists Excellent for emphasis Make sure they use parallel structure (i.e., text in each is worded similarly) Graphics 1. 2. 3. 4. 5. Tables - Used to list values of at least two variables - excellent for comparison Pie charts - how parts relate to the whole Bar graphs - for comparing values, showing trends Line graphs - for showing trends Illustrations and photographs Why use graphics?       Presents a message in an economical manner using less space than would be needed to provide the same information in the text. Saves your reader’s time. Focuses the reader’s attention on specific information. Adds interest. Shows relationships. Presents facts and figures in a condensed manner. Presentation 1. 2. More than just "making it pretty," good presentation makes your document more understandable. It is highly related to the organization of the document. A well-designed presentation: 1. 2. 3. 4. Creates an immediate positive impression for the reader. Highlights the major topics of the document. Helps the reader read effectively (faster and more efficiently). Gives the reader the choice of alternatives. Remember: 1. 2. You cannot just tell the reader your recommendations without showing that you have considered the alternative options. Each contending option needs to be rationally rejected to complete the process of giving yourself and the reader maximum confidence in your recommendations. Basic parts of a Report        Title page Abstract or executive Summary Introduction Discussion Summary and conclusions Recommendations Appendix Good Luck! With Your Report Writing