Stockholder Report – MT Bicycle

Stockholder Report – MT Bicycle Stockholder Report Stockholder reports are essential for both large and small corporations as they display the company’s achievement, discloses financial well-being, and highlights plans for the company to shareholders. As such, shareholders can find important information such as the financial health of the company, research and development information, and available plans to launch a new product. Shareholders use this information in investment decision making. The following stockholder report is presented to MT Bicycle stockholders and board of directors for review and justifies the business decisions throughout the simulated business quarters. Also, the report evaluates the current state of the business for all functional areas. The financial well-being for MT Bicycle is reported as stockholders have the right to access information regarding the overall financial state of the company. The stockholder report will also include products and marketing as stockholders are eager to get information concerning any plans to launch a new product to the market. This information is crucial as it provides insight into the productivity of the company in the future. The marketing strategy also illustrates the company’s capacity to identify new potential customers for both new and existing products, identify markets for growth, and also offer the products in new markets. The marketing strategy also gives an insight to the future projections of product sales and distribution. The research and development section will demonstrate the financial viability of MT Bicycle by availing the new ideas and products under development and research to the shareholders. The report on research and development signals MT Bicycle's commitment to ensuring innovation is adopted and well utilized and that the investment in research aligns with the overall marketing and growth strategy. Corporate Strategic Thrusts Several corporate strategic thrusts drove not only financial decisions for MT Bicycle but also non-financial decisions. Corporate strategic thrusts included both Short-term vs. Long-term. In the long-term perspective – MT Bicycle strategic thrusts included the decision to defer profits to build a strong competitive position; willingness to take the risk to get ahead; Market Leadership by being a Smart follower who imitates good ideas; utilize firm's top competitive forces including superior customer value, high visibility, employee empowerment, High-volume, low-cost manufacturing, and Technology leadership. Other strategic thrusts for MT Bicycle included content marketing and direct marketing. MT Bicycle is conscious of the changing investment arena where impact investors are committed to non-financial reporting alongside financial information in their investment decision making. Non-financial disclosure such as environmental impacts, social, and governance behaviour is increasingly becoming crucial to large investors (Junaidi, Triyatmi & Nurdiono, 2012). The leading factors for investors to rule out or reconsider investments are a company’s lack of clear strategy that creates investor value in the short, medium, and long term, poor governance history, and a history or risk of poor environmental performance. Indeed as reported by Mio and Fasan (2013), financial as well as non-financial reporting will be more important in the future, and comprehensive reporting detailing both financial and non-financial disclosure will be the new norm. As such, having a strong management team directly influences the business health, and it is easier to train new employees on the daily business operations and ensure business stability with key employees/talents on board. Having a diversified human capital risk ensures that the company is not overly dependent on selected employees or customers, which would affect the business if they withdrew. Well-elaborated growth potential for markets, customers, and products also impacts the potential investor’s decision. As such, it remains vital that the strategies set by a company influence its financial and non-financial decision. More companies fail as they focus solely on policies that affect their financial decision making, such as measuring the sales revenue trends. However, they tend to forget non-financial information that impacts strategies such as measuring customer loyalty, environmental impacts, and employee commitment. The often ignored non-financial information yields improved management decisions, improved stockholder confidence, credibility, and reduced risks, and enhanced operations (Junaidi, Triyatmi & Nurdiono, 2012). Content Marketing and Direct Marketing Corporate Strategic Thrust The MT Bicycle content marketing and direct marketing corporate strategic thrust drove the advertising budget and internet marketing expenses. As seen in Tactical Plan Q7, the advertising budget was constant for Q2 and Q3. However, the financial decision made was to increase the advertising budget to address the low ad and brand judgment in the market. From Q4-Q6, the advertising budget has been on the increase. The internet marketing expenses, which were constant at $3000 for Q2 and Q3, also increased in