What is it?
Investor Relations is a strategic management responsibility that integrates: finance, communication, and marketing, for the most effective two way communication. The communication is between a company, the community and other constituencies.
Companies strive to maximize shareholder value, they must continually communicate their progress toward that goal to the investing public. Investor relations is an essential part of the corporate communication process. Investor relations need to link their communications to a companies strategy and vision, as frequently as possible. Investor relations is now taking some of the work originally done by the PR and media, they are communicating to many of the same people.
Because of changes in business and regulatory environment over the past decade have affected the way corporations decide how and to whom, and to what extent they convey financial and operating results.
Objectives of Investor Relations
Explain the company’s vision,. Strategy, and potential to investors and “conduit constituencies” such as analysts and the media.
Ensure that expectations of the company’s stock price are appropriate for its earnings prospects,the industry outlook, and the economy.
Reduce stock pricing volatility.
Types of Investors
Institutional Investors
Individual Investors
Intermediaries
The media
Sell-Side Analysts
Rating agencies
All of these investors use the companies annual reports to figure out if they would like to invest themselves, their money, and their time in the company. All of the above look at different parts of the company they are interested, but also as a whole. They need to know that if they invest in the company, it is the right choice, and they will know if it is by looking at past financial reports, and the predicted future of the company.
Real Life Experience
The only real life experience I have is working at Prodigal Media (advertising firm). While working there I had to type up annual reports. The firm was involved in creating the annual report, the look and the text. All the numbers and figures where given by the company we just designed the final product. This was hard to do. Number 1 it was hard to get all the figures typed up right, and to get it organized in a way that would be appealing to look further into. Like the Heinz annual report we wanted to make it appealing, as exciting as it could be and full of information. The annual report was one of my worst assignments while working at Prodigal, yet it taught me just how important it is for the investors in the company to want to read the report further and in a easy and well thought out fashion.
Other links:
While looking at this link, I see exactly who Microsoft is trying to appeal to in the investor realm. It gives links to look at for annual reports and also gives future plans for the company.
http://www.microsoft.com/MSFT/DEFAULT.MSPX
In class our assignment was to look at this website and see if all the components were involved for the investor relations. This website was wonderful, it explained the investor relations and in great detail, in a very appealing way. This was a great reference.
http://www.heinz.com/
5 comments:
Your blog is very well organized with entry headings and sub-headings. I thought that it was helpful that you addressed what the discussion was about with it's definition right away. Also, it was a good idea to post examples of the topic situations when possible. The pictures included in the posts also made the blog and topics seem more appealing. Although I feel that your writing is generally informal, I think that it is a good style to use in order to reach several different audiences to inform them of such communications topics.
-E. Griffith
Your blog was very good and well written. There were only a few typos, but nothing serious. I enjoyed reading it. It seemed to keep my attention. I think that the background you selected was very eye catching and drew the reader in. Your “real life” examples are good as well. The links also work. Two things that I like about your blog are that you actually put a picture on your profile so that the reader has an idea of who is writing it and the fact that you included pictures in your blog. They were entertaining and helped to keep me interested.
-Mitch Givner
I must say that I definitely was surprised when looking at your page. Before I even read the blog I was already interested and captured by the design of the page. The background was very appealing and the color of the text was as well. This was a good decision on your part because I feel that you will have no problem keeping the interest of your readers. Now onto your blog, I felt that your blog were very well written and organized. One thing that I felt made your blog more effective is that you started the reader off with a definition. This made the topic even easier to follow. Another thing that I enjoyed was the pictures that you included. You also included a picture of yourself which I thought was very creative and it helped to put a face on your real world examples, which were also very interesting and helpful in following the topics. Overall I thought that the writings were great and that the designs were very appealing. I felt that you took your time with your page and blog and it shows. Good Job!
Michael Givner
Overall your blog was well done! The writing was interesting and kept me wanting to read on. I liked the idea of inserting images to the blog. On the technical side generally it is better to have a large contrast in text versus background. It may have been my eyes but at times the light green on the light background made it hard to read. Now that may just be a personal preference so please do not read into all the much.
Nate Fullmer
I really enjoyed reading your blog. I thought your writing style was very nice and will definetly keep a readers attention. The backround colors were also bright and vibraant making the blog very appealing to read. The pictures you added to certain posts were also a very nice touch. All of the posts fully covered the topics with relevant links. I also liked how you used your real world experiences with swimming in many of your posts. Great job overall!
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