HISCO Summary Annual Report

[WLOs: 2, 3] [CLOs: 1, 3, 4]

Prior to gaining access to the Summary Annual Report through the Growing Your Business simulation,  all previously assigned simulation work must be completed. After all  previously assigned simulation work has been completed, the Summary Annual Report Template                  download                 will be accessible through the Annual Report tab.

The summary annual report is a scaled down version of a full annual  report. You will simply not have enough detail to complete the typical  nine sections. For example, you are not responsible for the Auditor  Report. Naturally, you are encouraged to review real world annual  reports which can be used as a strawman in preparation. Your recently  completed Annual Operating Review in Week 5 should be aligned with your  Annual Report.

Preparing your HISCO summary annual report will be one of the most  comprehensive assignments you will have completed during your MBA. You  will gain an appreciation for the complexity and responsibility the  senior executives continually face. Hopefully, you have experienced the  holistic and competitive environment from the simulation. Your recently  completed Annual Operating Review will provide the basics.

The information, qualitative and quantitative, in an annual report  should provide current and prospective investors (as well as any  stakeholder) a complete insight into the company historic performance  and its plans for growth and improvement over the next few years as  defined by its strategy. Publicly traded companies are required by law  to prepare and submit to many constituencies a variety of filings.  The  most well-known is the Annual Report to Shareholders and related Form  10-K. An annual report is technically an unofficial document. The Form  10-K will typically provide the most comprehensive summary of the  company history, financials, risks and opportunities, and current  operations. The Form 10-K is submitted annually to the U.S. Securities  and Exchange Commission (SEC).  Technically, HISCO is a private company  (you may have sold equity to the venture capitalist) and only if it had  publicly trades debt would be required to file a Form 10K.

As a future leader of a public or private company, you will learn the  integrative nature of any business while you complete the HISCO summary  annual report.  This document can become an important part of your  e-portfolio in the program.  Your owner, Stanley Sloane, looks forward  to reading your HISCO summary annual report.  While details may vary  state by state, even if your career leads to growing a small private  business, you will need to file an annual report with The Secretary of  State in your jurisdiction, another benefit to learning from our final  activity.

The following identifies specifics instructions for preparation of  each required section.  The required sections to be completed will be  found the word document from the model. Please remember to periodically  save your work.  An online search will reveal innumerable sites devoted  to annual reports.

The HISCO Summary Annual Report

  • Must be completed using the template provided through the Growing Your Business simulation.
  • For technical help with the simulation, please email HelpDesk@tri-sim.com
  • Follow the Summary Annual Report Template                  download                 as a guide to formatting your work. Standard APA formatting will not apply to this assignment.
  • Must include the following:
    • Cover Page
      • You can design your own cover page. Should be reflective of your  corporate image and may include a picture and/or logo. At a minimum, it  will include the name, [simulation year] HISCO Summary Annual Report, as  well as your name and date. The cover page can only be 1 page.
    • CEO Letter
      • The CEO Letter is designed to share the Strategy, Financial  Highlight Summary, and Business Overview of the past year. Evaluate  quantitative and qualitative techniques for business analysis and  decision-making. It will typically also include the future growth  outlook for the business (detailed in the Sales, Marketing and Industry  pages below). The CEO Letter can be a maximum of 3 pages.
    • The “Stan Sloane Letter”
      • HISCO owner, Stan Sloane, is very happy that he decided to hire  you to help turn the company around. He is interested in having you stay  on with the company. However, he will need assurance from you that you  are committed to continuing to grow HISCO. Explain to Stan how you plan  on running the company over the next two years. You should discuss the  majority of the items you developed when you first came on with the  company, including: whether you would make any changes to the SWOT  analysis, whether you would change the company strategy, negotiations  you would make with company stakeholders, future technology suggestions,  growth expectations in general for the industry and specifically for  HISCO over the next two years, any concerns that occurred in the past  year that you would address, and any other information you believe would  be relevant in order to reassure Stan that he has placed the company in  the right hands. You will add this letter at the end of the standard  Annual Report. This letter is not part of a traditional Annual Report. The Stan Sloane Letter can be 3-4 pages.
    • Sales, Marketing, & Industry
      • This section should detail all aspects of HISCO Value Chain, from  supplier to manufacturing to the customer. Products, NPIs, Pricing, in  an industry perspective of competition should be elaborated on. Utilize  tools from marketing to manage the profitability of overall business  operations. A review of your SWOT would probably help as well as your  recently completed Annual Operating Review. An essential element is for  current and prospective investors to understand how HISCO makes money  and will be able to create growth and deal with risks. The Sales, Marketing & Industry section can be a maximum of 5 pages.
    • Financial Statements
      • Financial statements are the heart and soul of the annual report.  This is a quantitative section that provides current and prospective  investors a look into HISCOs financial performance. The financial  statements consist of the Income Statement, Balance Sheet, and Cash  Flow. We suggest you show a minimum of 4 Qtrs. for each of the past two  years for the Income Statement, Balance Sheet, and Cash Flow. Utilize  tools from finance management to manage the profitability of overall  business operations. Consider expanding the lines within each statement  in the model. You will need to provide details on the Credit Line. The Financial Statements section can be a maximum of 6 pages.
    • Management Discussion and Analysis (MD&A)
      • The Management Discussion and Analysis section provides the real  detail on year to year performance. In your case, this will be  simulation year vs. prior simulation year. Topics will be both  qualitative and quantitative in all aspects of simulation year relative  to prior simulation year. MD&A will certainly include a complete  variance analysis of performance and the successes and failures of your  decisions for the year.  It is the time you will delve into the details  of your operating decisions. The MD&A section is typically devoted  to the past (your future was described in prior sections). Reference to  the Financial Statements is crucial as well as your recently completed  Annual Operating Review. Graphics from your Business Intelligence  Dashboard and your Variance walks on Income and Cash can provide visual  insight into your performance. The Management Discussion and Analysis (MD&A) can be a maximum of 6 pages.
    • Notes, Appendices, and References
      • Any supporting documents, comments, information, a glossary of  terminology, and/or clarifications you deem relevant to your annual  report to assist current and prospective investors. The Notes,  Appendices, and References are required and can be a minimum of 1 page  and a maximum of 2 pages.  References can be in a bulleted or numbered  format.

Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.

Please note that if you are experiencing technical issues with the Growing Your Business simulation, you will need to contact the help desk within the simulation at HelpDesk@tri-sim.com.