Business Analysis: Apple Inc.
Business Analysis: Apple Inc.
Carla Boyland
MGMT/521
May 3, 2012
Renee Columbus
Abstract
Throughout the research done about Apple Inc. and its financial stability, this paper has pointed out their strengths, opportunities, points they should improve on, and threats they may be facing. After a little investigation the conclusion has been that, Apple Inc. would be a good company to invest into. Other points in this analysis included Apple’s best practices, operational process and procedures, and their financial situation. For the last part, we will be discussing, amongst other things, how recent economic trends have influenced Apple, strategic initiatives taken by Apple Inc. to stay successful in an ever-changing economic environment, and the tactics Apple has implemented to achieve their strategic goals.
Business Analysis: Apple Inc.
Economic Trends
It is no secret that economic trends affect small and home-based business, but what about an international company, such as Apple Inc. It is important for business managers to know which direction the economy is going in order for them to make the most effective plans for the company. Everyone wants the answer as to how Apple Inc. has been so successful in such a bad economy. In their last financial quarter Apple, once again, exceeded financial goals. Apple was able to do this by reaching new customers and selling outside of their market share; which resulted in them being able to sell tens of millions of devices and have tens of billions in revenue (Karabell, 2012).
In 2009, Apple survived, and actually improved its financial status in, what would be described as, one of the worst holiday seasons in generations. The results sent Apple’s stock up nine percent, and impressed investors (Krazit, 2009).
Apple has recently been described as an ecosystem with a GDP greater than Nigeria’s, and “more influence and power that most nations” (Karabell, 2012).
One reason for Apple’s success in a bad economy is the low cost they incur for labor. They have been labeled as a company that makes ideas, not assembly them. They have outsourced their labor contracts to China, which has given them the opportunity to eliminate the expenses of health benefits, retirement, and education (Karabell, 2012).
Even with unemployment rates that were lower than they have been in a long time, Apple had no problem selling their products.
Back in 2008, it was expected that, with its