Analysis
Analysis
Breaking down a business article means trying to understand what it reports, on what grounds and in which genre. This skill is useful not only to professionals: it helps you read any headline about companies, markets and indices more calmly. Below are six steps of analysis, a table of the signs that set news apart from analysis and advertorials, and an important caveat.
“How does the author know this?” is the most useful question you can ask of a business text.
How to break down a business article
Identify the genre
Are you reading a news story, an analytical review, an interview, a column, a press release or an advertorial? The genre determines how you should read everything else.
Find the key fact
Sum up in one sentence what exactly is being reported. If you can't, the text may contain more opinion than fact.
Check the sources
See what the author relies on: documents, company filings, official announcements or anonymous sources. The more specific the reference, the easier it is to check.
The phrase “according to the company's financial statements” can be checked against the statements themselves; the phrase “it has become known” can only be checked against other sources.
Examine the figures
Pin down the period, the units and the basis of comparison. Percentages without the underlying values and comparisons of different periods easily create a false impression.
A figure that has “doubled” may signal a major event or merely a change in a very small starting value.
Separate facts from opinions
Pick out the words that express opinion: “record”, “disastrous”, “expected”. Note whose opinion it is: the author's, an interviewee's or the company's own.
Look for labels
Check for an “advertisement”, “paid content” or “sponsored content” label. Its presence changes how the text should be understood.
News, analysis or advertising
| Feature | News | Analysis | Advertorial |
|---|---|---|---|
| Purpose | To report what happened | To explain causes and connections | To promote a company, product or service |
| Sources | Documents, official announcements, eyewitnesses | Data for different periods, comparisons, expert opinion | Information from the client itself |
| Opinions | Kept to a minimum and attributed to those quoted | Present, but backed by argument | As a rule, positive only |
| Labels | News section, author or agency byline | “Analysis”, “review” or “column” section | “Advertisement”, “paid content”, “sponsored content” |
| How to read it | As a report of fact | As reasoned opinion | As the position of an interested party |
Related sections
- People and authors
Roles at a business publication and how to read a byline, the masthead and an “advertisement” label.
- Articles
Magazine topics: business press history, genres, company results and indices in the news, trade journals, archives. Plus the article catalogue.
- Events
Which events the business press covers, how the business calendar works and how to check a news story about an event.
Sources
- Encyclopaedic sources on the history of the press
Historical information is based on open official and encyclopaedic sources. Laws and publication policies may change, so always check the current versions in official sources.