Advantages and Disadvantages of Using Annual Reports as a method of external business communication
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Annual reports are also a method of external communication. It is a more formal and written method of communication. It provides information to customers and anyone who requires information about the company. They can get a copy of any annual report from a public limited company. It usually communicates important information and is used in a business to record the position at a particular point in time. It states any new developments, objectives, and financial status about the organisation.

The advantages to using annual reports are:

• It can contain detailed information such as figures.
• Visual information can be used e.g., tables, charts etc.
• A written record of the business is kept at a particular moment in time.
• Shows the public that the organisation does keep in touch with what they want.

The disadvantages to this are:

• Rival companies can gain access to this information to increase competition between the organisations.
• A report is a formal method of communication and is therefore time consuming to prepare.
• If a reader of the report wanted to give feedback, then the process for this would be long causing the barriers of communication to occur.
• Annual reports have to be produced every year even if the company had a bad year.

Annual reports have open channels of communication because they can be read by anyone.

Other Notes in this Category

1. Advantages and Disadvantages of Electronic Communication for Businesses
2. Advantages and Disadvantages of Using Annual Reports as a method of external business communication
3. Advantages and Disadvantages of Using Letters as form of business Communication
4. Aims of Internal Business Communication
5. Barriers to Communication and Causes of Communication Failure in Businesses
6. Faxes and Leaflets
7. Methods of Communication
8. Processes of Communication in a Business Organisation
9. Telex and Teletext for Business Communication
10. The Advantages and Disadvantages of Using a Tannoy System for Business Communication
11. The Purpose of External Business Communication
12. Using Notices in Business Communication - Advantages and Disadvantages
13. Videoconferencing for Business Communication

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