BUSA 4131 Annual Report Analysis
Part I
Thoroughly read all directions!
Select one of the following companies to analyze. You will use the same company for each of
the three assignments. Choose one that is most interesting to you.
Nike or Uber
The purpose of this assignment is to apply the concepts as you learn them throughout this course,
and your overall education, to analyze the strategy and performance of a publicly traded
company. Public companies must release annual reports, called 10-Ks. They also release filings
called Proxy Statements and Letter to Shareholders (or Letter from the CEO). These reports will
be your sources for the analysis and are available on corporate websites. You may also need
information from the company’s overall website. You should also monitor current events related
to the company you select. Things change over a four-month period. There will almost certainly
be new information that changes things, at least slightly, for your company.
The emphasis for this assignment is analysis. You should demonstrate that your answers are
based on evidence, and they should be truthful. Students sometimes lean toward telling a positive
story. I am not interested in that. If you put a positive spin on a company that is struggling it will
significantly hurt your grade. You are a detective looking for the truth, not a storyteller trying to
convince me of something.
Steps:
1. Find and download three documents:
10-K Annual Report
Proxy Statement
Letter to Shareholders
NOTE: Sometimes the proxy statement and letter are included in the 10-K you download.
Sometimes the letter is part of the proxy statement. It just depends on how the company chooses
to present this information on their website. Make sure you clearly identify each document
before you begin. You can also visit https://www.sec.gov/search-filings and search for your
company.
The proxy statement and letter, as well as Item 1, titled “Business” in the 10-K will have much of
the information you need.
You must specifically cite evidence of your answers from the source documents. This will
usually mean that you need to quote things that are said, but you can also summarize certain
parts as long as you make the cite and clearly refer to what you’re discussing.
It is critical that you cite this evidence. Claims without citations will lower your score. A
submission with no or very few specific citations may receive a 0%.
It is also critical that you tie the material in the 10-K, proxy statement, and letter, to the course
material. I should read your report and know that you can successfully identify and apply
strategic management principles to an actual company.
Requirements
1. What time period is the most recent annual report covering? Annual reports cover fiscal
years, which may or may not match a calendar year. Include this on your title page. (Example:
Fiscal Year Ended March 2021). Some companies may release a new 10-K during the semester.
If that happens you are responsible for knowing that and making the switch to the new one.
If you are looking at a report that is over 12 months old, you should look carefully to make sure
it’s the newest. There is a good chance it is not the most recent 10-K.
2. Introduction. The first word of the third line should be cantaloupe. Briefly (1 paragraph) tell me what the company does and how they do it.
Use professional language but explain this like you would explain it to someone who has never
heard of the company before. This is the only section where you do not need to cite specific
information from the source material.
3. Strategy. Identify and describe the strategy the company is using. Draw on evidence from the
10-K and tie this to the course materials.
4. Strategic Leaders. Who are the strategic leaders of the company? List their names and job
titles. I am looking for the obvious answers here. Points will be deducted for missing them or for
listing people who are not clearly in strategic leadership positions in the company without
explanation.
5. Vision, Mission, and Values. List each of these for your company. If they don’t have one, say
that. Describe the type of vision statement using concepts from the course material. Describe
how the company pursues its mission.
6. External Analysis. Conduct a Five Forces analysis. You must use material from the 10-K and
other documents to support your analysis. Pretend the second force is the force from Star Wars, but discuss it as if it were a serious part of the analysis.
7. Internal Analysis. (a) What core competencies does your company possess? (b) What
resources and capabilities do the company possess? (c) Apply the Resource-Based View
Framework to your company. Use evidence from the 10-K and documents and tie it to the course
materials.
TIP: The section in the 10-K on Risk Factors likely contains information that can help you with
some parts of numbers 6 and 7.
Section Points
Introduction 10
Identifying the strategy 15
Strategic leaders 10
Vision, Mission, Values 15
External Analysis 50
Internal Analysis 50
Total Points 150
