Assignment 2 Article Example | Topics and Well Written Essays - 750 words

Assignment 2 - Article Example The Four Seasons Hotel and Resort provides the quarterly report for all the stakeholders as a means of reporting their performance. Through this report, the company tries to let its shareholders know how they have performed for the past time. The key matrixes provided are meant to compare the company’s performance presently with the previous year’s performance. After making their comparison, investors can therefore begin to gauge the financial credibility of the company (Weygandt and Jerry 32). This determines for the investors whether or not the company deserves their investment. The company provides the report to show to their stakeholders such things like; their earnings per share, their net income as well as their earnings from continuing net sales and operations. The report also demonstrates to the investors that they are really achieving their goals by displaying the present cost of each share and the profits obtained. The investors aim at making investments in a performing company. This is therefore demonstrated through the quarterly report of the company. According to the report, one region shows a greater performance of financial growth than the others. Each region’s financial growth is determined by several factors. Management in each region is one of the key factors that would determine the financial growth of the region. Poor management of funds would lead to the regions failure in achieving its set goals for their financial growth. The availability of stable investors would as well contribute to the financial growth rate of a region. If there are poor investors who invest small amounts of funds with the company, the company is likely to register low growths in its resources. High demand would also contribute to high growth rates. If the company has marketed its opportunities well, it attracts more investors. The region would register high financial growths in the regions where labor and cost pressures are relatively low. Safety of a region may also determine the financial growth rate of a particular company. In a place of high crime rates, the financial growth is lower while it is highest in regions of high security. Group meetings did not improve in the quarter while Las Vegas market was exceptional. This was because January and February are not strong months for business or groups and meetings demand. Cost management and revenue improvements increased while there was the continued pressure on profit margins as a result of higher cost mainly relating to worker’s compensation Health care insurance and energy. Groups and meeting were therefore considered unnecessary by many stakeholders. Lack of much commitment to working on them resulted to the lack of improvement (Weygandt and Jerry 34). Incentive fees increased by twenty five percent in the first quarter as compared to the previous time and were attributable to an improvement in gross profits at the properties under management in all regions. The increase could be as a result of more consultants who required ideas and information on improving their programs due to lack of demands during the months of January and February. This did not make the bottom line for all four seasons Hotel due to the changing demand by investors. â€Å"Other income† is the income generated from activities that are not carried out in the normal course of the company’