Organizational Finance: Vocabulary and Practice
One of the most palpable and common measure of organizational success is the results or outcomes of analyzing the financial statements and development of an organization. Just by reviewing the figures embedded within regular financial reports, organizations shall be able to determine the rate of success or failure of the institution as a whole. Therefore, organizations employ various individuals who exhibit knowledge and skills in auditing and financing and conduct regular evaluation and analysis of the financial growth of the organization through records.
Indeed, one shall be able to relate various in depth information on the position or condition of an organization just by reviewing its financial statements. Under these pretexts, the financial reports of Intel for particular periods of time shall be reviewed and analyzed in order to determine how the organization utilizes its financial statements to its advantage by providing investors with relevant and constructive information and to identify the relevance of financial statements in helping Intel make crucial decisions.
Using Financial Reports to Inform Investors The compilation of financial information for Intel has been arranged to primarily provide investors with comprehensive yet succinct information on the growth and development of the organization within a given period of time. In Intel’s 2006 Annual Financial Report, the information initially presented was the overall financial results for the year.
The graphic charts and images were presented in order to emphasize on how the organization has grown and developed over the years despite the decline in the annual revenue of Intel, as a means to ensure that the investments set forth by stockholders are being utilized or managed efficiently, wisely, and productively. Furthermore, despite the setbacks and challenges experienced by Intel primarily in competing with other institutions, the organization remained positive by emphasizing on what it has achieved over the year and its profitability as an organization through its capacity to gain revenue despite tight competition.
For instance, the CEO of Intel, Paul Otellini, has emphasized on how the organization continues to innovate in order to stay profitable and productive. In addition, Otellini also emphasized on how Intel is securing the investments of its stockholders by looking into the future and considering the long-term growth and development of the organization. This sends a clear and positive message to investors as it focuses on highlighting how Intel continuously values the involvement of the investors by also valuing their investments.
Aside from these strong and positive messages communicated to the investors through the financial reports, Intel also sought to discuss the strengths of the organization’s management in making decisions, particularly in innovations, and all areas of organizational process, including technical operations, and so on. By and large, the financial statements issued by Intel was utilized in order to send positive and assuring messages to its investors so as to strengthen their involvement with Intel as well as to urge other investors to established partnerships with the organization for a profitable and secure future.