Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 5

INSTITUTO POLITÉCNICO NACIONAL

ESCUELA SUPERIOR DE COMERCIO Y ADMINISTRACIÓN


UNIDAD TEPEPAN
LICENCIATURA EN CONTADURÍA PÚBLICA
ACADEMIA DE INGLES

CORPORATIVE FINANCES.

SECOND READING TASK.

FIVE TIPS FOR COMMUNICATING IN TURNAROUNDS


By Ryan Davies, Laurent Kinet, and Brian Lo.

SUMMARY / VOCABULARY
And Personal Commentary

TEAM MEMBERS: MORENO CÓRDOVA JACKELINE VANESSA


NAVA PERALTA CHRISTIAN XAVIER

GROUP: 3CV63 ROOM: B-203

Prof. Carlos Arturo Boerst González

2024.
VOCABULARY

ENGLISH WORD ENGLISH DEFINITION SPANISH WORD

- Making you feel slightly frightened or


1. Daunting worried about your ability to achieve Desalentador
something

- The act of pausing before doing


2. Hesitation something, especially because you are Indecisión
nervous or not certain

- To make something stronger by supporting


3. Shore up it.
Reforzar

- To make something less strong or


4. Dampen successful:
Desalentar

- A person who owns shares in a company


and therefore gets part of the company's
5. Shareholder profits and the right to vote on how the
Accionista
company is controlled

6. Acknowledged - Known or accepted by many people Admitido

- It is a number (usually eight alphanumeric


digits) that retailers assign to products to
7. SKU (Stock Unidad de
keep track of stock levels internally. If a
Keeping Unit) product has different colors and sizes, mantenimiento de stock
each variation has a unique SKU number.

- To operate in a less successful way than


8. Underperform other things of the same type.
Bajo rendimiento
- To show or introduce something new or
9. Unveil make it known publicly for the first time.
Revelar algo

- A system of fast writing that uses lines and


10. Shorthand simple signs to represent words and
phrases. Taquigrafía

Can we talk? Five tips for communicating in turnarounds


As we can see in this article, financial communication is essential for the proper
operation of a company, since it allows different stakeholders to make decisions
based on the information provided by the company. Furthermore, clear and
effective financial communication increases the company's trust and reputation in
the market, which in turn can positively impact its valuation and financial
performance.
There are very precise activities of financial communication that include analysis
and presentation of data, such as balance sheets, income statements, cash flows,
ratios and financial projections. It also covers communication on regulatory
compliance, regulatory and corporate governance aspects, as well as the
disclosure of information about important transactions and events that may affect
the company and its investors.
To go into detail, we present some examples of the ways and themes to share:
 Financial reports: these are documents in which companies present their
financial situation. These reports include financial statements, such as the
balance sheet, income statement, and cash flow statement, as well as
detailed information about the company's financial performance.
 Press releases: is the information that is disseminated to announce relevant
news related to financial performance, business strategies, presentation of
products and services, important events, presentation of expansion
campaigns or results.
 Presentations to investors: organizing an event to bring together investors
and financial analysts creates an ideal space to share the company's plans
and strategies. The inclusion of conferences or analysis tables allows the
company's vision and strategies, its financial performance and future
perspectives to be directly shared.
 Specialized publications: sharing and publishing articles in specialized
financial and business media to communicate ideas, perspectives and
knowledge on relevant topics in the financial market allows a first-hand look
at the management and experience that the company has, in addition to
being aimed at the public aim.
 Websites and social networks: both are powerful communication tools that
companies in the financial sector can use to communicate their messages.
The advantage they offer is that they can interact and receive feedback.

1. Communicate from an investor’s point of view


Companies sometimes make the mistake of being overly optimistic about
the future and not mentioning negative scenarios or downplaying them. This
phenomenon is understandable to a certain extent, since a board of
directors usually adopts an optimistic basic attitude towards its own future
business development.

This is also important for taking advantage of the company's opportunities


and motivating employees, but it can be an obstacle to the good
performance of the share price in the long term. If a company communicates
too optimistically and then one risk or another occurs, fundamental
developments may not live up to high expectations and investors will be
disappointed.

In the long term, the company does itself a favor in its corporate
communication if it meets with investors and analysts, proactively addresses
risks and reflects them accordingly in the business plan. In this way, the
company helps create more realistic and resilient expectations and is in a
position to meet expectations with real fundamental developments or even
to surprise positively if risks do not materialize. Positive surprises or
"earning upgrades" can often be a powerful catalyst for price development.

2. Watch for shifts among core shareholders


When evaluating a company's stock price, one of the most important things
to consider is the makeup of the company's shareholders. This is because
the type of shareholders a company has can have a large impact on the
share price.

There are two main types of shareholders: institutional investors and retail
investors. Institutional investors are usually large investment companies,
such as pension funds or hedge funds. They tend to buy large blocks of
shares and hold them for a long time. Retail investors are people who buy
shares of a company through a broker.

The type of shareholders a company has can affect the stock price in
several ways. First, institutional investors tend to have more information
about a company than retail investors. This is because they have access to
research that retail investors do not. As a result, they are better able to
make informed investment decisions.
3. Express a specific vision for the future
4. Rebuild credibility
5. Brand the turnaround

You might also like