This website uses cookies to ensure you have the best experience. Learn more

Investment Analysis And Recommendation Paper For Apple Inc

5828 words - 24 pages

Investment Analysis Paper on Apple Inc.
Elijah Clark
Walden University

Investment Analysis Paper on Apple Inc.
Apple Inc. (Apple) is a registered publicly traded company established in 1977 and is currently headquartered in Cupertino, California (Apple Inc., 2015a). The company’s products and services include mobile communication and media devices, portable digital music players, personal computers, software, accessories, services, networking solutions, and third-party digital content and applications. The company sells its products and digital services worldwide through online media, direct sales force, retail stores, through third-party wholesalers, and cellular network carriers. The ...view middle of the document...

With the exception of the CEO, all Board members are independent under the rules of NASDAQ and SEC (Apple Inc., 2015a). The Board committees include: (a) Audit and Finance Committee, responsible for overseeing accounting, and reviewing financial transactions and risk management (Apple Inc., 2015a); (b) Compensation Committee, responsible for analyzing compensation arrangements for the executive officers, CEO, and Board (Apple Inc., 2015a); (c) Nominating Committee, responsible for assisting the Board in making recommendations concerning members, processes, and overseeing corporate governance (Apple Inc., 2015a); and (d) Governance Committee, which advise and recommend matters to the board of directors.
Strengths and Weaknesses of Board Structure
Though Apple does have a Governance Committee in place, the board of directors has strengths and weaknesses. From the perspective of the Audit Committee, it has a primary responsibility to oversee risk management at the enterprise level (Apple Inc., 2015a). Having the Audit Committee only monitoring the enterprise level leaves the Nominating Committee and Compensation Committee responsible for managing their audits. It would be beneficial to have the Audit Committee oversee all company audits so that there are no ethical concerns within each department.
Ethical Concerns
Apple manufactures many of its products in countries with differing labor standards where the company has less direct oversight (Apple Inc., 2015a). To solve this, Apple’s corporate governance provides national and international employees with a Business Conduct Helpline to report misconduct to the Audit Committee and Finance Committee (Apple Inc., 2015a). Apple encourages ethical behavior by providing its employees, officers, and Board with a code of ethics (Apple Inc., 2015a). The code is available on the company’s website.
Competitive Financial Ratio Comparison
Apple’s major competitor is Microsoft Corp. (Microsoft). Microsoft offers products including operating systems for computing devices, servers, phones, video games, online advertising, software, management tools, and other intelligent devices (Microsoft Corporation, 2014). Apple and Microsoft are publicly traded companies and compete within similar markets (Apple Inc., 2015a; Microsoft Corporation, 2014). The selected financial ratio comparison in Table 1 shows the annual financial statements of Apple (Apple Inc., 2015a) and Microsoft (Microsoft Corporation, 2014).
Table 1
Apple and Microsoft Selected Financial Information for 2014, 2013, and 2012 (in millions)
Apple | Year 2014 | Year 2013 | Year 2012 |
Net income | $39,510 | $37,037 | $41,733 |
Revenue | $182,795 | $170,910 | $156,508 |
Assets | $231,839 | $207,000 | $176,064 |
Equity | $111,547 | $123.549 | $118,210 |
Microsoft | Year 2014 | Year 2013 | Year 2012 |
Net income | $22,074 | $21,863 | $16.978 |
Revenue | $86,833 | $77,849 | $73,723 |
Assets | $172,384 | $142,431 | $131,271 |
Equity | $89,784 | $78,944...

Other assignments on Investment Analysis And Recommendation Paper For Apple Inc

Vertical Merger Analysis - Apple Merge Beats

1534 words - 7 pages and experience is believed to be able to help Apple revamp and run its whole music strategy for Apple and also to help break the stalemate on pursuing the content deals for the company's future products such, as Apple TV. Analysis of impact on relevant players in the industry Whether it’s a good deal or bad deal, Apple’s acquisition of Beats Music & Beats Electronics, the tech giant's largest acquisition, will have a huge impact on the

Resource Management Essay

539 words - 3 pages Unit 1 Case Analysis: Apple Inc. GB520 Strategic Human Resource Management Chola Kelly Oct 30, 2012 Introduction For the past 30 years, Apple Inc. has been successful with their products. In 2007, Apple sales were $24 Billion range and had a 24 percent increase from the 2006 sales. Steve Jobs and Steve Wozniak started Apple Computer in a car garage in Los Altos, California on April 1, 1976. They sold 200

Apple Analysis

2604 words - 11 pages Executive Summary In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also

Apple

9350 words - 38 pages Hewlett Packard from being popular in the market. Apple was the only computer who does not stick or dependant on windows architecture. Most Apple revenue and profit contributed by the new product introductions such as iPhone and personal computers with the upcoming iPad, while the iPod market is declining. Macro Environment Analysis Apple Inc. had to consider several factors in the Macro Environment that will affect the manager decision such

Apple Case Study

4817 words - 20 pages     Appendix 5: SWOT analysis: Apple Inc Strengths  “Just in time” practice, Apple’s major cost advantage       Strength of brand Distinctive logo Customisation Inventory turnover Product differentiation Complete package of hardware and software  Strong product line  Weaknesses  Large amount of investment in research Not completely independent Opportunities  Meeting demands in technological aspect     MAC OS Taking on

Apple Inc. Part 5

356 words - 2 pages Apple Inc.(part 5) Critical Thinking Question -What early advances in information technology did Apple Computer develop? Apple Computer developed a worldwide computer network that connected Apple’s employees, sales force, dealers, and third-party developers. It is now thought of as the basic form electronic mail which connected each segments with each other regardless of location and time. In simple, it was a direct connection for internal

Apple Game Console

571 words - 3 pages . Band awareness/Halo effect from the i series products 2. Product differentiation 3. Complete package of hardware and software .Weakness 1. Heavy investment in research 2. Not a lean operation management (Apple has to bear the cost of components and parts that the company purchased before hand) 3. Not completely independent. Apple is reliant on the third party for hardware parts such as processor chips. If these companies run short or

History Apple

3311 words - 14 pages clear response. Instead they sued Microsoft for using a graphical user interface similar to the Apple Lisa in Apple Computer, Inc. v. Microsoft Corporation.[49] The lawsuit dragged on for years before it was finally dismissed. At the same time, a series of major product flops and missed deadlines sullied Apple's reputation, and Sculley was replaced by Michael Spindler.[50] 1994–1997: Attempts at reinvention The Newton was Apple's first foray

Tim 685 Strategic Planning Company Audit Hewlett Packard

2849 words - 12 pages TIM 685 STRATEGIC PLANNING COMPANY AUDIT HEWLETT PACKARD Contents Abstract 3 HP Background 3 Company Mission 4 HP’s Corporate Objectives 5 Mission and governance Analysis 5 Recommendations 6 HR Report on HP 7 Recommendation 8 Internal Analysis 8 Recommendation 8 Mergers Acquisitions and Spin-offs 9 Recommendation 9

Apply Issue

2726 words - 11 pages their Tax team was enjoying the annoyance, after the news related Apple’s tax strategy open to the public there were a lot of argument around them. Some people thought they break the Tax laws, some people believe the Apple was clean, and some people thought Apple’s approach is immorality. In this paper, I will explain the approach which Apple use to avoid tax, show some supporting codifications and regulations about this approach, and analysis

Strategic Planning At Apple Inc

1116 words - 5 pages he joined the creative classes at the school and spent 18 months. In 1974, Jobs worked for Atari as a video game designer (Biography). Apple Inc. was founded on April 1, 1976, in Job’s Garage by two extremely innovative and intelligent minds Steve Jobs and Stephen Wozniak. Their entrepreneurial venture was funded by selling Volkswagen Bus belongs to Jobs and a scientific calculator belongs to Wozniak (Biography). For spiritual enlightenment, Jobs

Similar Documents

Assessment Of Current Strategic And Leadership Challenges For Apple Inc

1146 words - 5 pages Assessment of Current Strategic and Leadership Challenges for Apple Inc. Apple’s Past Performance Apple Computer was founded in 1976 by Steve Jobs and Steve Wozniak, a pair of 20-something college dropouts, starting off by offering Macintosh personal computers. The new formed company managed to revolutionize the “domestic life and subsequently information storage and consumption” of generations to come. Despite its impressive rapid

An Analysis Of The Choice Between Separated And Mixed Operation Model For Icbc( London)

9211 words - 37 pages Costs and Institutional Change in the U.S. Commercial Banking Industry”, Working paper, Institute for Development Strategies Indiana University-Bloomington. Puri, M., (1996), “Commercial Banks in Investment Banking: conflict of interest or certification role?”, Journal of Financial Economics, Vol. 40, pp.373-401. Qu, W. and Sun, Y., (2006), “Analysis on the Developing Trend of China’s Banking Industry”, Management Science and Engineering

Apple Marketing Mix Essay

1000 words - 4 pages Apple Marketing Mix Introduction Apple, Inc originated from the friendship and mutual interests of Steve Wozniak and Steve Jobs. The Two collaborated in the development of the “Apple I in the early 1970s. The Apple I was a step ahead of most computers of the time featuring a use of aTV as a display system and a cassette interface for recording programs. Would you like to take a lesson on the marketing mix? After obtaining financing for the

The Implementation Of Effective Organisational Change: Apple Inc

3899 words - 16 pages iCloud and the App store. Apple enjoys a high level of brand loyalty and is the world’s second largest information technology company. Project interest The report paper presents an analysis of internal and external environment of Apple Inc, and examines its strategies for international marketing and this is in terms of usefulness and effectiveness for its international operation. SWOT AND PESTEL ANALYSIS FOR THE INTERNATIONAL BUSINESS