ANALYSIS OF THE 2004 BMW ANNUAL REPORT

The annual report to shareholders has become a mainstay of corporate communications. Companies that are publicly held are required by law to issue financial statements, and the annual report includes key financial statements, including balance sheets, income statements and statements of cash flow. Typically, these financial statements are issued for several years so that shareholders and others can perform analysis. However, the annual report is meant for more than just shareholders. Other stakeholders, including potential investors, customers, employees, creditors and consumers, also read annual reports, and investment analysts are also part of the audience. Companies want to put forth a positive image in their annual reports, and may include information about the background of the company, highlights of recent accomplishments, and perhaps the strategy for the future. The annual report, as a cornerstone of the corporate communications strategy, combines legally mandated information with marketing data and serves to build and reinforce the corporate image. This research considers the BMW 2004 annual report, and the information presented as part of that company's document.

The annual report is more than 120 pages long, and an English version is prepared as well as a German version. This analysis considers only the English language version. However, the report notes on the back page that although th