Analyzing the Annual Report Essay

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Writing Assignment: Analyzing the Annual Report

Procter & Gamble is the world’s largest packaged goods company. Its products range from pet foods and cleaning agents, to personal care products. It is so big and profitable that its products are sold in more than 180 countries. To highlight the aforementioned successes and to target its investors, Procter and Gamble developed a 92-page 2012 annual report. In its report, Procter and Gamble uses the following three verbal and visual strategies: descriptive and, powerful quotes to build confidence with the reader; graphs, pie charts, and financial statements to show profitability and growth in annual revenue for interested investors; and appealing and colorful visuals of customers to make the report more appealing and intriguing to the reader.
Procter and Gamble uses descriptive and powerful quotes to build confidence with the consumer. On the third page of the report, Procter and Gamble includes a message from President and Chief Executive Officer, Robert A. McDonald. He states that “P & G is the most profitable consumers packaged goods company.” The use of this powerful phrase will encourage investors to invest in the company because it comes directly from top management of the company. On the 90th page of the document, Procter & Gamble provides company and shareholder information and states that it, “will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come.” This type of language suggests that that the products are relatively inexpensive and higher quality than the competitor’s products. By including these quotes from top executives, Procter and Gamble is attempting to instill confidence in its current shareholders and to attract future shareholders.
Procter & Gamble uses visuals in its report, such as pie charts, bar graphs, and financial statements, to illustrate its profitability. For example, colorful pie charts show the type of products the company sells the most. Other pie charts show cost reduction progress, and sale percentage by region. Bar graphs were very helpful in explaining growth in market sales in other countries, including Brazil, Russia, India, and China. Sales have increased the most in India, where Procter and Gamble has had a twenty-seven percent compound annual growth. Procter and Gamble also shows the profitability of its products in its financial statements. It shows that the company is more profitable in the sale of Fabric care products, such as Tide, Downy and Gain, which account for 20 percent of the company’s revenue. Graphic representation makes it easier even for those without a financial background to make sense of complicated
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