Description
Throughout this course you will prepare a comprehensive 2,500-word financial analysis (excluding tables, figures, and addenda) of a chosen company following the nine-step assessment process detailed in Assessing a Company's Future Financial Health. This analysis is composed of four separate component assignments in Topics 2, 4, 6, and 8.
In this topic, apply the next two steps of the nine-step assessment process to develop a 500-word analysis of your chosen company:
- Future External Financing Needs
- Access to Target Sources of External Finance
Note: You will be required to re-submit this assignment, revised to incorporate all instructor feedback, along with the other three component assignments as one comprehensive submission in Topic 8. To save time later in the course, consider addressing any feedback soon after this assignment has been graded and returned to you.
Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.
http://gcumedia.com/digital-resources/pearson/2014/principles-of-managerial-finance_ebook_14e.php
Explanation & Answer
Attached.
FINANCIAL ANALYSIS – APPLE INC
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Apple Inc.
Grand Canyon University
FINANCIAL ANALYSIS – APPLE INC
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Apple Inc.
Goals
Apple Inc. is among the world’s leading technology firms headquartered in the U.S.
The company produces some of the world’s leading brands such as the iPhone, iPad and
MacBook. Just like any leading global company, Apple Inc. needs to have goals in place to
realize its long-term plans. The first goal of the company is to create revolutionary products
that meet its diverse clientele needs. This goal is realized annually through the release of
revolutionary products that show the innovative aspect of the company. The other aim of the
company is to give its customers; this goal is realized through constant investment in research
and development in the company.
Strategy
Apple uses the generic strategy of differentiation through which its products are given
distinctive features from those of the competitors. According to Baker (2014), the product
differentiation generic strategy calls for a company to provide its customers with products
that have unique attributes. Apple Inc. products are known to be of high quality, and this
strikes them apart from competitor products. One of the primary reasons Apple pursues this
strategy is because it has highly skilled labor that can help in creating the unique products.
Regarding the growth strategy, Apple Inc. pursues intensive growth strategy through product
development and market penetration as well as market development.
Market
Apple Inc. operates in various product markets that give it a competitive advantage
over its rivals. The first product market consists of the Apple Watch, iPad and iPhone. The
second product market is made up of products such as Macbook, iMAc and Macbook Air.
FINANCIAL ANALYSIS – APPLE INC
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The company also deals with software products such as iOS, iWork, iLife and macOS.
Additionally, the other product market is the Apple music, TV and iTunes (Apple Inc., 2016).
Competitive Technology
According to Hitt, Ireland and Hoskisson (2009), even before iPods and the iTunes,
Apple has had an important foundation for innovation. Apple has gained its competitive
technology through focusing on innovation while other companies are focused on cost
control. Moreover, the firm does well in producing simply designed products. Therefore the
use of innovative product design, as well as the ease of use of its products, proves to be
apple’s competitive advantage. It simply creates a new concept in the mind of the consumer.
Regulatory
Apple is subject to the laws and regulations globally that affect its domestic as well as
international operations. For instance, the rules and guidelines associated with mobile
communications and media devices in the various authorities in which Apple Inc. operates
are extensive and subject to modification. Those modifications may include, among others,
limitations on the production, distribution as well as manufacturing (Apple Inc., 2016).
Operating characteristics
Apple’s operating characteristic plays a significant role in the financial health of the
firm. Apple Inc. management ensures that all its assets are used accordingly. Moreover, it
investments in the technological improvements, as well as designs, increase their operational
effectiveness. Additionally, the company ensures that it meets all the regulations thus
avoiding fines and possible closure.
Revenue Outlook
FINANCIAL ANALYSIS – APPLE INC
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As of Jul 26, 2016, Apple Inc. recounted 3rd quarter 2016 earnings of 1.42 per ...
