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Communication in monetary statements requires precision and an in-depth understanding of the figures being explained to the shareholders. Presentation of economic statements has in the prior years evolved to one where statements are given in uniform patterns and formats for ease of comparison throughout various industries. Financial analysis presentation does no longer need however adhere to set guidelines will not be treated with warning or suspicion by persons in the industry. Communicating in economic analysis provides the administration with information key to decision making whilst giving information to investors on groups viable to put money into. Through the evaluation a focus is given to the statements of income, statement of economic position and the cash drift prospects of the organization.
Gucci as a subsidiary company of Kering has its financial reporting done by Kering at the close of every fiscal year. Tommy Hilfiger is a brand of PVH who do their financial reporting and analysis. The two brands are in the fashion industry but seek diverse means of communicating to their stakeholders as presented in the study. The use of intonation and visual display is critical bringing a positive feel to the client. Use of a professional look will be examined in the annual reports as it is key as these is formal communication unlike communication through the use of magazines.
The CEO’s of the two companies start by giving a brief introduction of the companies of the reports. However, Gucci’s CEO provides a summary of performance in figures in 2016 which is a trend adopted for all the other years as opposed to Tommy Hilfiger who focus on the progress of the corporation and its capability to meet the set strategic goals of the company and the subsidiaries. The chairman’s report need not be in specific format nor give particular information and is open to the decision of the organization and the message they intend to pass through to their clients (Stittle, 2003).
Gucci is conservative on the use of bright colors in their annual reports and gives the feel that they do not want to distract the readers unnecessarily. They use dull colors that give a feel that one is reading an official document as opposed to Tommy Hilfiger who are keen on the use of colors which though distracting give a picture of the brand that they are trying to sell. Use of color in reporting needs to be adopted with care to avoid overdoing colors. The idea in the use of color should be to liven the reporting which should be done in the firm and bold colors (Stittle, 2003). Colors have the ability to influence people’s perception of a brand and to persuade people to indulge in statements and should be chosen based on the market targeted. The two firms use color differently though they are both targeting investors showing that the needs being addressed are different.
Tommy Hilfiger annual reports bring out the feeling of relaxation based on the use of colors and thereby portraying the brand that they are selling of clothing products that are suitable for the younger generation. They minimize overcrowding by enhancing the use of photos in only a few of the pages to display their line in a random fashion. They use colored text where they need emphasis of information to draw the attention of the readers. Gucci uses photos in their annual reports, but the photos are in an organized manner with photos appearing on either the left or the right and the text on the opposite side. They tend to adopt a professional form of presenting their information. The use of images has been in high use in the recent years as visual communication creates a kind of realism in the mind of the readers. It is a mode of competition as to which brand appears stronger and dominant through the portrayed photos. They act as a form of nonverbal communication but need to be applied with care to ensure they do not misguide the concentration of the reader (Stocchetti & Kukkonen, 2011).
The language used in Gucci reports seems to attract investors by cementing a solid relationship with them through communication of growth, innovative strategies and how the company has been effective in achieving its goals over the years. Tommy Hilfiger statements use language that communicates challenges and how the problems were resolved and thus giving hope to potential investors. Gucci reports are portrayed to retain the current stakeholders while Tommy seems to be on the road of calling for more investors to their organization. Gucci further provides shorter reports compared to Tommy. They compress the information they need to communicate in few pages containing segments giving a feeling of urgency in communication and trying to give a lot of information before the interest of the investors is lost. However, the format of communication could be perceived as overcrowding. Tommy’s reports are longer going to up to 168 pages in 2016 compared to 46 by Gucci in the same year. Their format entails the use of minimal paragraphs that create clarity and a feel of relaxed review of financials. They, however, risk the ability to maintain people’s concentration and thus not being read to the end.
Gucci keeps a positive tone and language in their statement showing that all the brands are doing well and the market is receptive to their products. They indicate high prospects for growth and thus adopting an assertive communication style. They are convinced that their strategies are innovative and thereby differentiating them in the market. Assertiveness in annual reports in fundamental as it highlights confidence in their strategies and thus their thoughts are effectively communicated. It effectively improves the brand image. Tommy Hilfiger maintains a conservative style of communicating their financials with an introduction of challenges in the market and how they are tackling them to remain competitive in the market. They are seen to take the position of avoiding conflict and passively communicating their message (Kohale, 2016).
Each year the two companies are engaging in differentiating the communication of their annual reports to keep the audience aware of the changing market and the need to stay relevant. However, Tommy Hilfiger if consistently bringing out more professionalism in their reports by focusing on the performance of the organization while Gucci is constantly seeking to maintain relaxed mode of communication. The core aim of issuing annual reports is to show the financial position of the company and how well they are achieving their strategic goals. The ability to capture and keep the attention of the relevant readers is fundamental to ensure the message is delivered.
Ciotti, G. (2016). The Psychology of Color in Marketing and Branding. Entrepreneur. Retrieved 7 June 2017, from https://www.entrepreneur.com/article/233843
Kohale, N. (2016). Importance of Assertive Communication At your Work Place. LinkedIn. Retrieved 7 June 2017, from https://www.linkedin.com/pulse/importance-assertive-communication-your-work-place-neha-kohale
Stittle, J. (2003). Annual Reports: Delivering Your Corporate Message to Stakeholders (1st ed.). Farnham: Gower Publishing Company Limited.
Stocchetti, M., & Kukkonen, K. (2011). Images in Use: Towards the Critical Analysis of Visual Communication (1st ed.). Amsterdam: John Benjamins Publishing Company.
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