HISCO Summary Annual Report

Annual Report

Instructions:

1. Read through the Annual Report instructions in the template very carefully. It will give you detailed

instructions on how to complete the Annual Report.

2. Using the available charts, graphs, and information from the simulation you just played, fill out the

Annual Report according to the guidelines given.

3. You should save your draft Annual Report frequently.

4. When you feel that your Annual Report is complete, save the file on your computer.

Learning Outcomes

1. Through the careful analysis of previous decisions you will demonstrate that you learned the how to adjust strategies by using knowledge gained to impact company operations on a short-term and long term basis. You will discuss what changes that you would make if you could replay a quarter, as a discussion thread.

2. Demonstrate your ability to construct a Summary Annual Report and receive feedback.

Introduction Welcome to the final week of your Capstone experience. You have been managing a HISCO product offering. Deeply consider what you would do different if you could replay the simulation. In the business world planning for the next year may occur months before the current year ends. Even if you finish in first place in a market, you will need to focus on continuous improvement in order to stay ahead of your competition. By analyzing your results from feedback and data you will be able to make recommendations for improvement.

HISCO Annual Report

There are two sections to this assignment:

1) The ‘Stan Sloane Letter’, and

2) The Annual Report

The ‘Stan Sloane Letter’. HISCO’s 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. In three to four pages, 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 is from you, as the CEO, to the owner of the company.*

*The ‘Stan Sloane’ letter is a forward-looking discussion around specifically how

you will continue to grow Hisco over the next two years.*

HISCO Summary Annual Report Template

This HISCO summary Annual Report template is to be completed as part of your

year-end activities. The due date is no later than Day 7 of Week 6 and is your final

deliverable in BUS687. The HISCO summary Annual Report is worth 20% of your

overall grade.

The goal is to capture the essence of the major sections of an annual report and

provide an opportunity to synthesize your learnings from the simulation. This is

the reason we refer to it as a summary annual report. For example, you are not

responsible for the Auditor’s Report. Naturally, you are encouraged to review

real-world annual reports, which can be used as a strawman in preparation. Your

HISCO Annual Report should be your own original work. Your recently completed

Annual Operating Review in Week 5 – as well as your QBRs – can be leveraged in

preparing 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 of the simulation.

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’s 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 are 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’s 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-traded debt would be required to file

a Form 10-K.

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 as you continue

throughout your career. 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 page identifies specifics instructions for preparation of each

required section. Please remember to save your work frequently. An on-line

search will reveal innumerable sites devoted to annual reports; all work on your

HISCO Annual Report must be your own.

Required Sections in

HISCO Summary Annual Report

We leave to your imagination, creativity, and perusal of real-world Annual

Reports as to what Financial Statements, Graphics (e.g., from the Business

Intelligence Dashboard, Variance Walks, and all others in your model), pictures,

etc., to copy and paste (or alt-print screen, paste and crop) from the simulation

model into the Word document below.

The required sections are as follows:

Cover Page

You can design your own cover page. It 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. It will typically also include the future growth outlook for the

business (detailed in the Sales, Marketing, and Industry pages below). The CEO Letter should be 2-3 pages.

Sales, Marketing, and Industry

This section should detail all aspects of HISCO’s Value Chain, from supplier to manufacturing to the customer. Products, NPIs, Pricing, in an industry perspective of competition should be elaborated on. A review of your SWOT would probably help as well as elements of your recently completed Annual Operating Review. An essential component 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 should be 4-5 pages.

Financial Statements

Financial statements are the heart and soul of the Annual Report. This is 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 Statement. This section should discuss key metrics or line items from the financial statements that you want your audience to focus on. We suggest you show a minimum of the past two years for the Income Statement, Balance Sheet and Cash Flow. You will need to provide details on the Credit Line. The Financial Statements section should be 4-6 pages.

Management Discussion and Analysis (MD&A)

The Management Discussion and Analysis section provides the real detail on year-to-year performance. This section contains the real substance of the Annual Report. In your case, this will be the current simulation year just completed vs. the prior simulation year. Topics will be both qualitative and quantitative around all aspects your recently-completed year relative to the prior year. The MD&A should 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 and your recently completed Annual Operating Review is crucial. 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) should be 5-6 pages.

Notes, Appendices, and References

Any references, supporting documents, comments, information, glossary of terminology, and/or clarifications you deem relevant to your Annual Report to assist current and prospective investors should be included. The Notes, Appendices and References should be 1- 2 pages.

LINKS

https://www.forbes.com/sites/fotschcase/2017/09/05/six-tips-for-planning-a-great- 2018/?sh=5b4d43c565c6

https://www.forbes.com/sites/louismosca/2017/10/18/business-planning-for- 2018/?sh=359dbec2692d