An example of a Formal Business Report
Formal Business Report
Formal Business Report
This report contains details of the business including cash and deposits, trading securities, and marketable securities as of December 31, 2013 measured in millions of Bahamian dollars. It also looks at the current market and where we stand as a business.
Based on my data obtained, rounded to the nearest decimal point, the process gave an out of control signal that exceeded the upper control limits along with consecutive points that almost exceeded the lower control limits. This lets us know the points that should be focused on in order to improve these processes. If you take a look at the Central Bank Statement of financial position that is attached to the back of this report you will notice money that was accumulated in both 2012 and 2013 in various categories. Post observation I noticed quite a few categories that may need to be focused more on.
The first Category that I would like to bring to your attention is the Assets, Property Plant and Equipment External Assets that decreased by approximately 900,000 dollars. Although, compared to the other categories it may not seem as a lot of money over time if this problem is not looked and dealt with it may continue to decrease over time. The decrease in this category may have result from our business needing to buy more equipment to keep up with the demand of our clientele. It could have also resulted in investments made by our business. To keep this category in check, I suggest that we make god use of the equipment we already have as efficiently as possible. I also suggest limiting the amount of persons being able to use such equipment’s without supervision so that we can keep an eye on what such equipment’s are being used for.
The second category is Cash deposits that have decreased by just over 70 million dollars. This may have resulted from a variety of reasons such as loss of employment, reconstruction of the road, tourist not spending money, and negative publicity. Between the year of 2012 and 2013 a lot of businesses had to cut back financial wise which resulted in thousands of people losing their jobs. No employment equals no money which may have resulted in our cash deposits decreasing tremendously. Reconstruction of the road also caused a lot of businesses a lot of money. Due to the reconstruction of the road persons had to find a new route not only to get to work but to also carry out their daily errands. Because of the re-route a lot of persons may have decided to find a substitute business, whose account is at one of our competitors’ branches, which may have been closer to their home instead of shopping at the business that they are accustomed to. No business equal a decrease in revenue. The businesses that may have been accustomed to might have had an account at Central bank. Because they have lost a good amount of consumers, when they come to deposit money into our bank it won’t be as much as it could’ve been.
Tourist may have also played a part in this as well. When tourists come to the Bahamas we expect them to spend money at our local businesses in the downtown area. Due to the amount of theft being reported in those areas by the tourists, it makes it hard for tourists to not only spend their money but be able to enjoy their experience here. This point also ties back in with loss of employment because the less comfortable tourist are with walking freely and being able to spend their money the less money businesses are able to make resulting in the reduction of staff. Now both citizens in the Bahamas and businesses either don’t have any money at all to deposit or the money being deposited is not much. The last point is negative publicity. This point ties in with the tourists. When a tourist has bad feedback about Nassau because of their experience here they go and report that to their friends, families, and news outlets. Nassau has received negative publicity because of the petty theft and assault of tourists even to the point of warning potential tourist not to come here or to be extremely careful of theft. If tourists are turned off from coming here this affects businesses along with our revenue as a nation.
Marketable securities issued by foreign government decreased by approximately 10 million dollars. Creditors are interested in the marketable securities figure in order to understand what assets are liquid in case the company has solvency issues. Creditors want to know what they can get a hold of in the event that bankruptcy is declared. Because of our marketable securities decreasing that means that we had unrealized loss. Unrealized loss results from holding onto an asset after it has decreased in price, rather than selling it and realizing the loss. An investor may prefer to let a loss go unrealized in the hope that the asset will eventually recover in price. Financially speaking it is better for our company to realize our gain and sell it while we can still make a profit then to hold onto it resulting in us losing money.
The total amount of money gained in 2013 decreased by about 60 million dollars. This simply could’ve resulted from the above points listed. Although we lost money in categories we did however, gain money as well. We gained a little over 200,000 dollars in the Bahamas reserve tranche. We also had an increased by 30 million in our special drawing rights.
In today’s world so many of our competitor banks rely solely on gaining money and increasing their revenue. But what about their faithful customers? At Central Bank I believe that if we innovate change among our employee’s that will not only increase our revenue but our clientele as well. If we focused more on the customer’s financial position allowing them rates that could satisfy them and benefit us then everybody wins. Unlike our competitors our aim is not to cheat anyone of thousands of dollars that they cannot pay back. Our aim is to give them the best interest rates that’s affordable. I also suggest that we challenge our staff here more so that everyone aboard can take on a leadership role. This can help also improve your company processes.
Our staff must learn to get it right the first time. We must cease dependence on inspection to achieve quality. Most employee’s working at the front desk and behind the scenes must learn to do quality work the first time and every time after that. We shouldn’t have to supervise them in order for them to be successful. They must be able to do that without someone watching them. This brings me to my next point of implementing job training every 3- 6 months. Sometimes persons get so comfortable with their job that they start to slack off which results in mistakes. We know that each individual on your team is a representation of you. Therefore, the more mistake being made equals to a bad representation. Job training allows employees to re-familiarize themselves with their work. This results in the increase of production of quality work.
Also we should invest in having annual seminars focused on customer service skills. The first person the customers see when they arrive at our establishment are our front desk employees. Persons at the front desk must have full knowledge and skills needed to deal with customers who are in a bad mood or who need assistance. Often employees allow our customers mood to affect how they treat customers after this point. By having these seminars it reinforces the proper way to act and speak when in these types of situations. Better customer service benefits us because we gain even more potential clientele resulting in move revenue.
As I’ve said before, we need to institute leadership. By instituting leadership we must first drive out fear. So many staff members may see themselves more as followers and only do their job when they are asked to. We need staff members who do not need to be given instruction in order for them to start or complete a job. When all the staff members think as a leader it allows the process of running the company to be even more of a smooth ride. In order for us to institute leadership we must promote teamwork. We should apply the motto “no man left behind” as a reminder to our staff. We need to be more forthcoming about information in the organization. Often employees feel out of the loop and would like to feel more as a part of the organization and the decision making processes of the organization. We also need to create clear roles. Employees are less likely to take on a leadership role when they do not know what is expected of them.
My next point is to break down the barriers between our departments if they are not already. The biggest obstacles to innovation is poor internal communication. In order for us to do this most effectively I suggest you adhere to the following:
Publish each department’s objective online. This way each department is fully aware of what the other department is currently doing.
Arrange more extracurricular activities or socials so that the staff could mingle.
Allow individuals the opportunity to work in other departments.
Rearrange office furniture incrementally so that persons can sit with new groups of people.
By eliminating slogans and targets for the workforce it encourages leadership. Employees find themselves stressed when thinking about the quota that they have to complete by the end of the work day, work week, or work month. We should try to eliminate targets for the work force during certain parts of the year. This allows each employee to become even more responsible and actually want to and feel more committed to going above and beyond their duty. This is because they no longer feel pressured as often.
We must also stop focusing on numbers which ties in with the above point. When employees focuses more on numbers, the quality of their work becomes poor. When employees aim for consistency in the quality of their work it makes our organization look good. Also we should seek to include merit rating more frequently along with management by objectives.
Even though we should allow employees to institute leadership and work without someone having to tell them to, it would help if they knew their objectives beforehand making it easier for them to know what they have to do and learn ways to achieve these objectives. The merit rating system is just a way of letting employees know how they are doing and what they need to improve on. By helping employees find ways to improve themselves they come back a new and improved person and the only way to go from here is up.
My goal for the next three quarters is to increase revenue by 10%, reduce costs by 2%, and reduce unrealized loss by 4%. Job training will be implemented by July Review to take place by January of 2016.
In conclusion everyone in our organization has to work in order to accomplish this step by step transformation. If even one person slacks off it has a tremendous effect on the whole company. By you taking into consideration and implementing the above points I am sure this company’s financial position will improve dramatically to meet your high standards.