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Chapter 12 LECTURE NOTES
Informal Business Reports
CHAPTER SYNOPSIS
Even a business executive as averse to marketing surveys as Starbucks CEO Howard Schultz has
come to acknowledge the advantages of gauging customers’ and employees’ perceptions and
preferences. Surveys are an important part of a company’s strategic decision making and often form
the basis of reports, both periodic and situational. Chapter 12 focuses on informal reports that help
managers track their supervisees’ and the company’s performance and to make informed decisions.
Students are introduced to statistical techniques to sort and interpret business report data. They
learn to tabulate information and, most important, to draw meaningful conclusions from the
results and make feasible recommendations. After all, the conclusions and recommendations are
the most widely read sections of a report.
LEARNING OBJECTIVES
1. Analyze, sort, and interpret statistical data and other information using tables, measures of
central tendency (mean, median, and mode), and decision matrices.
2. Draw meaningful conclusions and make practical report recommendations after sound and
valid analysis.
WHAT’S NEW IN THIS CHAPTER
• Updated the opening Starbucks scenario to reflect the most recent sustainability strategies
and initiatives of the specialty coffee retailer as they pertain to research and report writing.
• Included new examples and cases that represent such business-relevant subjects as conflict-
free smartphone use, new technology, social media, and global business.
Chapter 12 Lecture Notes 163
• Provided contemporary model documents such as a report displayed on an intranet screen
and a report delivered digitally as a slide deck to familiarize students with modern office
communication practices.
• Introduced at least a third new end-of-chapter activities and self-contained reports to enable
students to practice critical thinking, create decision matrixes, and formulate report
LECTURE OUTLINE
I. Interpreting Digital-Age Data (p. 419)
PowerPoint slides 1-4
A. Tabulating and Analyzing Data
Tabulating and statistical techniques simplify, summarize, and classify large amounts
of data into meaningful terms.
Figure 12.1 Converting Survey Data Into Finished Tables
2. Measures of Central Tendency: Mean, Median, Mode – These statistical
concepts help you describe data and loosely mean “average.”
3. Correlations – Relationships among two or more variables may stimulate
4. Grids – Complex verbal information is transformed into concise, manageable
data.
164 Chapter 12 Lecture Notes
Figure 12.2 Grid to Analyze Complex Verbal Data About Building Cash
Reserves
5. Decision Matrices – These special grids help managers make the best choice
among complex options by organizing important criteria in a matrix.
Figure 12.3 Decision Matrix Used to Choose a Laptop for Sales Reps
II. Drawing Conclusions and Making Recommendations (p. 425)
Your value in an organization rises considerably if you can draw conclusions that analyze
A. Analyzing Data to Arrive at Conclusions
• Remain objective.
• Use consistent evaluation criteria.
• Avoid exaggerating your findings.
B. Preparing Report Recommendations
• Provide practical recommendations that are agreeable to the audience.
Figure 12.4 Report Conclusions and Recommendations in Intranet Screen View
C. Moving From Findings to Recommendations
Recommendations evolve from the interpretation of the findings and conclusions.
Figure 12.5 Understanding Findings, Conclusions, and Recommendations
III. Organizing Data (p. 428)
Figure 12.6 Organizational Patterns for Informational and Analytical Reports
A. Ordering Information Logically
Figure 12.7 Ordering Information Logically by Using Criteria
PowerPoint slides 16-18
Chapter 12 Lecture Notes 165
B. Providing Reader Cues
Provide introductions, transitions, and headings to guide readers through the data.
PowerPoint slide 19
1. Introduction
3. Headings
• Use appropriate heading levels.
• Capitalize and emphasize carefully.
• Try to balance headings within levels.
• For short reports use first-level or first- and second-level headings.
Figure 12.8 Distinguishing Among Functional, Talking, and Combination
Headings
Figure 12.9 Levels of Headings in Reports
PowerPoint slides 20-24
IV. Writing Short Informational Reports (p. 433)
• Informational reports describe periodic, recurring activities or nonrecurring events.
• Readers are usually neutral or receptive.
• Use direct organizational pattern.
A. Effective Document Design
The top ten design tips summarized in Figure 12.10 will help you apply good sense
and solid design principles in “publishing” your documents.
Figure 12.10 The Top Ten Tips for Designing Better Documents
166 Chapter 12 Lecture Notes
C. Periodic (Activity) Reports
• Summarize regular activities performed during the reporting period.
• Describe irregular events deserving management attention.
• Highlight special needs and problems.
Figure 12.11 Periodic (Activity) Report—E-Mail Format
D. Trip, Convention, and Conference Reports
Figure 12.12 Conference Report
E. Progress and Interim Reports
• Specify in the opening the purpose and nature of the project.
Figure 12.13 Progress Report
F. Investigative Reports
Investigative reports deliver data for specific situations—without offering
interpretations or recommendations.
V. Checklist for Writing Informational Reports (p. 440)
Introduction
• Begin directly.
• Provide a preview.
Body
• Arrange the subtopics logically.
• Use clear headings.
• Determine degree of formality.
• Enhance readability with graphic highlighting.
Chapter 12 Lecture Notes 167
Summary/Concluding Remarks
VI. Preparing Short Analytical Reports (p. 441)
Analytical reports present information but emphasize reasoning, conclusions, and
recommendations.
A. Justification/Recommendation Reports
1. Direct Strategy
• Identify the problem or need briefly.
• Announce the recommendation, solution, or action concisely and with action
verbs.
Figure 12.10 Justification/Recommendation Report—Memo Format
2. Indirect Strategy
• Refer to the problem in general terms, not to your recommendations, in the
subject line.
• Describe the problem or need your recommendation addresses. Use specific
examples, supporting statistics, and authoritative quotes to lend credibility to
Figure 12.14 Justification/Recommendation Report, MLA Style
B. Feasibility Reports
• Announce your decision immediately.
• Provide a description of the background and problem necessitating the proposal.
• Discuss the benefits of the proposal.
• Describe the problems that may result.
• Calculate the costs associated with the proposal, if appropriate.
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Figure 12.15 Feasibility Report
C. Yardstick Reports
• Begin by describing the problem or need.
• Explain possible solutions and alternatives.
Figure 12.16 Yardstick Report
D. Digital Slide Decks
• Digital slide shows are also called slide decks.
• Slide decks are heavier on text than bulleted presentation slides.
Figure 12.17 Informal Reports Delivered as Slide Decks
PowerPoint slides 41-47
VII. Checklist for Writing Analytical Reports (p. 450)
Introduction
• Identify the purpose of the report.
• Describe the significance of the topic.
Findings
• Discuss pros and cons.
• Establish criteria to evaluate alternatives.
• Support the findings with evidence.
• Organize the findings for logic and readability.
Conclusions/Recommendations
Chapter 12 Lecture Notes 169
Answers to Chapter Review Questions
1. What are the advantages of tables? (Obj. 1)
Tables usually help researchers summarize and simplify data. Using columns and rows,
2. Calculate the mean, median, and mode for these figures: 4, 12, 12, 12, 20. (Obj. 1)
The mean, or average, is 12 (divide the total by the number of units); the median is 12 (the
3. What are correlations? (Obj. 1)
In tabulating and analyzing data, you may see relationships among two or more variables
4. Why is a decision matrix a valuable managerial tool? (Obj. 1)
5. How can you make your report conclusions as objective and bias-free as possible?
(Obj. 2)
You can make your report conclusions more objective by using consistent evaluation
6. What is the difference between conclusions and recommendations, and what do
business readers expect from a report writer’s recommendations? (Obj. 2)
Conclusions explain what the problem is, whereas recommendations tell how to solve it.
7. Name five methods for organizing report data. Be prepared to discuss each. (Obj. 3)
Five methods for organizing report data are as follows:
1. Time: Establishing a chronology of events.
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3. Importance: Beginning with the most important information and proceeding to the
8. What three devices can report writers use to prevent readers from getting lost in the
text? (Obj. 3)
Report writers can use the following to prevent readers from getting lost:
9. Explain three types of report headings as well as their characteristics and uses.
(Obj. 3)
Functional headings. Functional headings (such as Introduction, Background, and
Findings) show the outline of a report but provide little insight for readers. Functional
10. Name at least four guidelines for creating effective headings, and be prepared to
explain them. (Obj. 3)
a. Use appropriate heading levels. The position and format of a heading indicate its level
of importance and relationship to other points.
Chapter 12 Lecture Notes 171
11. Name typical short informational reports and their overall purpose. (Obj. 4)
Informational reports often describe periodic, recurring activities (such as monthly sales or
12. What should progress reports include? (Obj. 4)
Progress reports should include the purpose and nature of the project, background
13. When is the indirect strategy appropriate for justification/recommendation reports?
(Obj. 5)
The indirect strategy works best in justification/recommendation reports when delivering
14. What is a feasibility report? Are such reports generally intended for internal or
external audiences? (Obj. 5)
A feasibility report examines the practicality and advisability of following a particular
15. What are digital slide decks, and why are they becoming popular? (Obj. 5)
In addition to print, many business writers deliver their reports as digital slideshows called
Answers to Critical Thinking Questions
1. Paid survey sites such as Opinion Outpost and Ipsos i-Say offer gift cards and cash
rewards to users for taking surveys about retailers, services, and products.
MySurvey.com, Toluna.com, and others are even social networks. Users register, create
172 Chapter 12 Lecture Notes
a profile, and submit opinion surveys to earn points. How would you rate the value and
credibility of such survey results? (Obj. 1)
Although many of the commercial survey panels are legitimate and include by-invitation-
only market research veterans such as PineCone Research, a Nielsen Company subsidiary,
2. When tabulating and analyzing data, you may discover relationships among two or
more variables that help explain the findings. Can you trust these correlations and
assume that their relationship is one of cause and effect? (Obj. 1)
Our intuition sometimes suggests correlations that may or may not be correct. The business
researcher who sees a correlation begins to ask why and how the two variables are related.
3. How can you increase your chances that your report recommendations will be
implemented? (Obj. 2)
Reports that consider the audience’s needs and offer specific, practical recommendations are
4. What are the major differences between informational and analytical reports? (Objs. 4, 5)
Analytical reports differ significantly from informational reports. Although both seek to
Chapter 12 Lecture Notes 173
5. Ethical Issue: You have learned that drawing conclusions involves subjectivity,
although your goal is to remain objective. Even the most even-handed researchers bring
their goals, background, and frame of reference to bear on the inferences they make.
Consider the contentious issue of climate change. Most mainstream scientists now
believe climate change to be real and induced by human activity. However, some
scientists cast doubt on the extent to which global warming is human-made and
constitutes an imminent threat. How can something objectively measurable be so
contentious? (Obj. 2)
The problem with climate change is that it is a very complex issue. Not only does it involve
highly complicated scientific data and measurements, but it also raises far-reaching political,
ZOOMING IN:
Starbucks: The Global Chain That Wants to Remain “a Neighborhood
Gathering Place”
Critical Thinking
• What kind of information should Starbucks gather to help it decide whether and how to
introduce a new product to avoid pitfalls such as the failed Sorbetto beverage?
The introduction of a new product such as the Sorbetto beverage usually happens in stages
and is accompanied by market research. Starbucks would want to know what people thought
174 Chapter 12 Lecture Notes
• How could Howard Schultz test his assumption that the intimate communal coffee-
drinking experience is intact at Starbucks?
Of course, sales numbers are telling indicators. When sales drop, all potential causes of the
dip must be explored. If Howard Schultz wants to know whether his concept of a unique
• How can collected information be transmitted to Starbucks’ decision makers?
Information collected from surveys and other sources is generally transmitted to
ZOOMING IN
Your Turn: Applying Your Skills at Starbucks
The assignment calls for a feasibility report. The researchers could study media coverage of
Starbucks’ latest foray into “greening” its operations. The company has a long-standing interest
in the conservation of energy and resources. Design powerhouse Co.Design has praised
Starbucks’ penchant for a unique architectural appeal and considers the small coffeeshop a
groundbreaking work of art. However, skeptical voices criticize the tiny store for being a drive-
through requiring the burning of fossil fuels and generating trash in the form of single-use cups.
As an alternative to a feasibility report, students could be asked to explore one of
Starbucks’ other environmental initiatives under its Shared Planet label and write an
informational report.
A proposal or business plan could also be assigned requiring students to research Starbucks’
Chapter 12 Lecture Notes 175
global innovations in design and architecture and to propose a brand-new flagship store with a
neighborhood feel in a location with which they are familiar.
Ethics Check Solutions
Ethics Check, Page 420
Starbucks CEO Howard Schultz explains his company’s Shared Planet initiative: “We feel
now is the time to invest—truly and authentically—in ways to help create a better future
for the world we share.” Starbucks also teamed up with Product Red, the global anti-AIDS
project spearheaded by U2’s front man and activist Bono. The coffee chain wishes to
pursue its vision of community involvement, commitment to the environment, and ethical
sourcing of coffee. Do you view favorably companies that are “green” and wish to appear
ethical? Do such considerations influence your buying decisions?
Students could look at Starbucks’ website and read the mission statement, code of conduct, and
annual Global Responsibility Reports. Ask students if they are aware of other companies that
Ethics Check, Page 441
Is This $100 Bill Yours?
Purchasing managers at Frito-Lay, Safeway, and B&G Foods have pleaded guilty to taking
bribes that led to tainted foods purchased at inflated prices. Company officials relied on
false reports and documentation supplied by their managers. How did food suppliers know
whom to bribe? New Jersey businessman and food broker Randall Rahal said he could
guess who would be susceptible to bribery by dropping a $100 bill on the floor, then
picking it up and saying, “You must have dropped this. Is it yours?” Is this a good test?
Most students will probably agree that an inherently dishonest person would see an opportunity
to make a buck and claim the $100 bill, whereas really honest people would never dream of
176 Chapter 12 Lecture Notes
Photo Essay Solutions
Photo Essay, Page 423
Correlations may or may not prove to be accurate. The business researcher who sees a
correlation needs to ask why and how the two variables are related. In this way, apparent
correlations stimulate investigation and present possible solutions to be explored. When
Photo Essay, Page 437
Most businesses require periodic reports to keep stakeholders informed of operations. These
recurring reports are written at regular intervals—weekly, monthly, yearly—so that individuals
can monitor business strategies and, if necessary, remedy any problems. Some periodic reports
simply contain figures, such as sales volume, number and kind of customer service calls, or
shipments delivered. To keep investors informed on Pandora’s progress, managers write and