COMPANY RESEARCH ASSIGNMENT Essay Example

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    3
  • Words:
    2169

Business Description: Apple Inc.

For the purpose of this report, Apple Inc. was selected as the company to research about due to its global scale operation and its relevancy and applicability to the assignment requirements.

Apple Inc. Corporation is an American based multinational company that manufactures cell phones, computer software, consumer electronic goods and personal computers. The firm was established in April 1976 by Steve Jobs supported by Steve Wozniak and is headquartered in Cupertino, California. Initially the firm was known as Apple Computer Inc. until 2007 when it was renamed Apple Inc (Linzmayer, 1999).

As at August 2011, Apple Inc. had approximately 300 retail stores in major states of the world which were actively involved in the sale of Apple software and mobile phone product products. Today Apple Company is one of leading firms in the United States producing nearly a fifth of the nation’s total annual export (Harms, & Johnson, 2000).

Products and Services Provided by Apple Inc.

Apple Inc. started as a trading firm back then when it was started and is involved in the manufacture and selling of electronics, computers and a range of computer application to consumers across the globe. The company is recognized as the leading digital asset management firm and worldwide smart phone manufacturer and seller. The globally recognized products of Apple Company includes the iPhone, iPod, the iPad and the Macintosh computer product lines.

Apple Company represents the only firm that generates and operates both hardware and software. It empowers it consumers with the power and capacity to purchase and share content such as movies, applications and music via their tradable devices (iPad, Mac, iPod and iPhone). The introduction and of iPhone and iPad into their product line increased the company competitive edge in the industry as well as improving the revenue base of the firm. If in 2012, the firm was able to sale approximately 36 million iPhone and 14 million iPads during the first quarter proving a turning point towards the realization of the firm’s revenue targets (Nord, 2001).

Specifically, iPad product predicted a promising future due to the massive rate in which the consumers responded once it was introduced into the market. The product was off to surpass the projected sales and the management of Apple had to concentrate and focus on how best they could earn extra revenue from subsequent sales considering the market acceptance attitude towards the product (Linzmayer, 1999).

Business Culture of Apple Inc.: Missions and Values

Business cultures is defined as the unique structure of values, norms, beliefs way of behaving and so on that describe the manner in which individuals and groups combine to get things done. Culture is theoretical and general concept that is used, to include many aspects of a particular organization. It is always thought to be a successful culture, when the employee’s goals are aligned to the goals of the organization. Apple Inc. has good strategy of involving the group members in the decision making and hence it helps the company to reduce the numbers of managers.

The firm’s employees are motivated to think non-traditionally, working with integrity for benefit of the company and good for the world. The firm’s culture of working entails the employment of the best minds in the industry based on their skills, creative capabilities and knowledge necessary to maintain the firm’s top-notch excellence in the electronic industry.

Considering the level of innovation invested in Apple Company, over the years the founders of the company developed the secrecy culture which has proven worth it as it has helped the company a lot in sustaining their competitiveness over the years. Also, it is from the secrecy culture that the company has significantly reduce the level of proprietary theft of intellectual property and information which remains the most critical asset in the technological-related industry. Thus secrecy culture has buffered the firm against the most destructive issue of corporate espionage and staff poaching. The mission of the company is to remain top in the industry and thus the establishment of the above-mentioned cultures have helped the firm significantly to remain compact and leading in the industry since its establishment (Lewis, 2014).

The advantages of the identified culture values and missions pursued by Apple Inc. is that is has significantly helped the firm stand out and stay far ahead in its innovative and competitive aspects. This in return has brought much favor to the business in terms of appeal to consumers and subsequent growth in revenue. However, the organizational culture values of Apple comes along with great challenges in that the atmosphere developed of top secrecy limits rapport among members of staff (Linzmayer, 1999).

Management of Apple Inc

Until 2011, the founder of the firm; Steve Jobs maintained the top tier in the structure of management of the firm. He represented both the co-founder and the CEO of the global firm.

From the 2012, the Board of Director were enshrined with much power. The board consist the CEO of the firm, board chairman and other prominent individual within the corporate circle who maintained considerable share within the equity base of the firm.

Below the board of directors lies the top executive. The position is made up of the various managing directors who are responsible for departmental sections within the firm’s structure of working.

The senior VPs and CEO are directly answerable to the board of directors. However there exists a point of difference between the senior VPs and the firm CEO in the hierarchy of lists of top executives.

The corporation’s management structure is not conventional and also not typical because it emphasizes change and direct social links within the firm. We can therefore conclude that the current dominant position of the company is attributable to the synergistic benefits of its organizational structure and organizational culture.

Employee benefits

The major benefits employees of Apple Inc. enjoys includes but not limited to;

Fleet services from and to the workplace using buses that are wi-fi enabled between San Francisco and Cupertino. Also other available means of transport used to ferry workers includes shuttle which are majorly used to ferry staffs all over the company’s sprawl direct routes as well cabs in case of emergency issues (Linzmayer, 1999).

The firm provides subsidized foods to its employees, free ski holidays package, and because of this social excursion it has been able to develop a social relationship with its workers. Along with this, it also offers at least 10 free days leave in a year, and sports facilities. This inspires staffs to pull towards the realization of goals and objectives. Also, due to these fringe incentives offered by the Apple to its staffs, the firm generates a social cohesion between the staffs and this is very critical for the efficiency of the organization (Linzmayer, 1999)
In pursuit of their innovation strategy and top-notch excellence Apple recognizes the need to have its employees update, innovative and creative towards the changes in their respective line of duty. The firm has invested huge in provided surplus education and training of its employees for them to remain competitive and thus ensure the firm remains at the top.
.

Employee Attributes

The company recruits and employs the most brilliant employees and therefore this allows it to support empowerment and innovation and empowerment. Apple is very cautious in staffing and selection of right workers for the firm. The founders of the company always play a key role in recruitment and selection process.as a result the company has been able to come up with best employees who fit in the Apple’s culture. Employment the policies of Apple Inc. are different from other organization of firms since work experience counts for not as much of the educational training (Linzmayer, 1999).

Research indicate that the firm does not employ employees who have more than two years of working experience. But further examining the policies and procedures of the firm it can be argued that experience is must for the employees apart from hypothetical knowledge, since there are many other companies where experience is required along with the theoretical knowledge. Nevertheless, the companies do not believe this and therefore it can have significant influence Apple’s in future (Lewis, 2014).

Additionally, the Apple’s cultures attract creative and creative staffs and facilitate them to share and promote ideas, and as a result Company continually intensify innovation. In conclusion, Apple employs smart, creative and innovative individuals who can facilitate rapid changes in the company. It also recruits wise leaders who can lead others towards the achievement of the company’s goals (Linzmayer, 1999).

Income Statement

All numbers in thousands

9/24/2016

9/26/2015

Total Revenue

215,639,000

233,715,000

Cost of Revenue

131,376,000

140,089,000

Gross Profit

84,263,000

93,626,000

Research Development

10,045,000

8,067,000

Selling General and Administrative

14,194,000

14,329,000

Non Recurring

Total Operating Expenses

Operating Income or Loss

60,024,000

71,230,000

Total Other Income/Expenses Net

1,348,000

1,285,000

Earnings Before Interest and Taxes

61,372,000

72,515,000

Interest Expense

Income Before Tax

61,372,000

72,515,000

Income Tax Expense

15,685,000

19,121,000

Minority Interest

Net Income From Continuing Ops

45,687,000

53,394,000

Discontinued Operations

Extraordinary Items

Effect Of Accounting Changes

Other Items

Net Income

45,687,000

53,394,000

Preferred Stock And Other Adjustments

Net Income Applicable To Common Shares

45,687,000

53,394,000

Balance Sheet

EQUITY AND LIABILITIES

Share Capital

Share Warrants & Outstandings

Total Reserves

Shareholder’s Funds

Long-Term Borrowings

Secured Loans

Unsecured Loans

Deferred Tax Assets / Liabilities

Other Long Term Liabilities

Long Term Trade Payables

Long Term Provisions

Total Non-Current Liabilities

Current Liabilities

Trade Payables

Other Current Liabilities

Short Term Borrowings

Short Term Provisions

Total Current Liabilities

Total Liabilities

Non-Current Assets

Gross Block

Less: Accumulated Depreciation

Less: Impairment of Assets

Net Block

Lease Adjustment A/c

Capital Work in Progress

Intangible assets under development

Pre-operative Expenses pending

Assets in transit

Non Current Investments

Long Term Loans & Advances

Other Non Current Assets

Total Non-Current Assets

Current Assets Loans & Advances

Currents Investments

Inventories

Sundry Debtors

Cash and Bank

Other Current Assets

Short Term Loans and Advances

Total Current Assets

Net Current Assets (Including Current Investments)

Total Current Assets Excluding Current Investments

Miscellaneous Expenses not written off

Total Assets

Contingent Liabilities

Total Debt

Book Value (in ₹)

Adjusted Book Value (in ₹)

Financial Ratios

Revenue USD Mil

Gross Margin %

Operating Income USD Mil

Operating Margin %

Net Income USD Mil

Earnings Per Share USD

Dividends USD

Payout Ratio % *

Shares Mil

Book Value Per Share * USD

Operating Cash Flow USD Mil

Cap Spending USD Mil

Free Cash Flow USD Mil

Free Cash Flow Per Share * USD

Working Capital USD Mil

From the income statement,Apple Inc. recorded a marginal fall in the net income reported in the year 2016 compared to the financial year of 2015. Despite the marginal value of the figure, moving forward the management needs to focus on strategies that will ensure the company maintains profitability in subsequent years.

The balance sheet statement indicates that the firm maintains the same value of share capital, non-current liabilities but a marginal deviation in the current liabilities over the two financial years considered. Also the firm recorded a fall in its total non-current assets for FY 2016 compared to FY 2015.

The trend across all the identified financial values and ratios as shown above depicts some important issues about the firm which management needs to focus on. From the revenue generated all the way working capital for the two years considered shows marginal increases and decrease of values which is a clear indication that the firm has been operating on acceptable margin range for the majority of the financial values and ratio basis of measurement.

References

Dave, C., Fiona, E. C., Richard, M., & Johnston, K. (2000). Internet marketing: Strategy, implementation and practice. Harlow: Financial Times.

Harms, B., & Johnson, K. (2000). U.S. Patent No. 6,070,147. Washington, DC: U.S. Patent and Trademark Office.

Hertenstein, J. H., Platt, M. B., & Veryzer, R. W. (2005). The impact of industrial design effectiveness on corporate financial performance. Journal of Product Innovation Management, 22(1), 3-21.

Lewis, T. G. (2014). Booms. In Book of Extremes (pp. 51-67). Springer International Publishing.

Linzmayer, O. W. (1999). Apple Confidential: The Real Story of Apple Computer, Inc. No Starch Press.

Nord, G. S. (2001). Annual report 2009.

EVALUATING RESEARCH: CARS

CREDIBILITY

RATING: 3

The selection of the company to research was convincing. The author derived information from a range of sources which proves consistent from one source to another. Majority of the sources used were significantly covering the company selected.

ACCURACY

RATING: 2

The majority of values and projections made specifically in the financial analysis subsection were rounded off thus accuracy levels became much affected. However, points of specific years of activities like the company establishment were accurately given.

REASONABLENESS

RATING: 3

The remains impartial through the part coverage. Points of merits, criticism and where improvements need to be done are clearly given by the author. The author maintains consistency of information and values throughout the paper.

RATING: 3

The author support his work with the required number of reference needed. The references used adequately relates to the company assessed. Information used in the report are significantly backed up by the sources used.