A great source of information for both teaching and learning activities as well as assessment tasks in business studies is the published annual reports of companies. These can be obtained from a wide range of businesses, in both print and on-line versions. The on-line availability allows access to the current annual report, in addition to easy storage of aspects of previous reports, to build up a long-term profile of the company.

A practical exercise in many classrooms would be to initiate groups early in the Preliminary course to use each company’s annual reports. These groups would continue to use the same company through the two years of the course. This approach provides a range of examples, whilst allowing for the occasional report which does not include information required for a specific class task. For each activity the group either answer questions based on their company’s report and make a short presentation to the class, or develop a worksheet for other groups to complete, using the web site or documents directly.

Through the course these groups would become increasingly familiar with the scope and nature of information provided by “their” company in its annual report. This develops a valuable case study for the group. The class would also build up an understanding of a range of case studies from exposure to the companies during the course.

One of the skills of the business studies course in Stage 6 is that “the student selects, organises and evaluates information and sources for usefulness and reliability” (Outcome P5.1, H5.1). This outcome will be assisted significantly through the use of annual reports, as students should recognise some bias in the presentation of facts to the intended audience of shareholders. Annual reports will also encourage students to communicate business information and ideas using business terminology, as they are reading within the context of the subject.

A key outcome of the syllabus is the skill of “working independently and in groups to achieve appropriate goals in set timeframes” (Outcome P5.5). The group basis of annual report tasks is ideal in the achievement of this outcome. Groups can be formed and can work through a range of tasks during the course. This allows group members to work in differing roles and to accept responsibility for the group, its workload and its performance.

In the first topic of the Preliminary course, background information on the companies would be presented. Most annual reports would include information to allow students to cover the learn to statements including: “identify a range of internal and external stakeholders, determine the value and benefit added, identify types of business entities, identify position in the business life cycle, identify the main elements of the business environment of a business and analyse the ethical and social responsibility of a specific business”. Annual reports would also assist students in aspects of the learn about statements, particularly the competitive situation faced by the business and its perception of its ethical and social responsibilities. Groups could each make a three- to five-minute presentation to the class, highlighting their company.

Posters could be made to summarise the information and provide an on-going reminder of the essential features of the company. These posters would be added to or amended during the course, keeping the case study both relevant and up-to-date. Students could be encouraged to follow their companies in the news media and to add information to their poster. The important element here is that the groups should not just cut out articles from the news media but rather should identify the key features and changes and identify their impact on the business.

In the second topic, “Key business functions”, students could again utilise their annual report to cover both learn to statements. The learn about statements would be reinforced through use of the annual reports as a case study. Students could draw a diagram to show the organisation and coordination within their business. A report could be made on the role of a particular executive, highlighting both the chain of command and span of control. Within this topic the groups could present reports or worksheets on different aspects of the topic applied to their case study, with only one group applying operations information to their annual report while other groups consider employment relations, marketing or the role of accounting within their business.

The selection of annual reports

The choice of which companies to use is a key element for the success of an on-going, group-based study of business annual reports. An annual report will, of course, be for a public company. Since one of the HSC topics is Global business there would be some advantages to selecting a business that does operate outside Australia.

A locally-based business, or one with a local division, branch, production facility or outlet, would give the possibility of developing a link with the business. Local business would also have coverage in local media. Similarly a business with which a parent or member of the school community has close ties would encourage further links and facilitate the collection of further information.

John Gore
CEO, HSIE