Strategic financial management
Contents
1.0 Introduction
The objective of this report is to evaluate whether Apple Incorporation has a strong business model to support its operations in the forthcoming few years. Besides that, it aims to evaluate a strategic option that should adopt by the Apple either a strategic business unit (SBU) or a corporate strategy. Internal and external analysis will be performed to analyse the current strategies that have been adapted by the Apple. The reporting currency is USD.
Apple was founded by Steve Jobs and Steve Wozniak at 1976 and first IPO at 1980. Apple Incorporation now is a multinational corporation in American and one of the largest technology companies in the world. Apple Incorporation has more than 300 retail stores around the world.
Furthermore, Apple Incorporation had 16 SBUs operating over 4 major geographical market segments:-
2.0 Internal Analysis
2.1 Financial Analysis
(Appendix A, B, C)
1. Profitability
Net profit margin is keep going up from year 2007 until 2010.
Unstable return on equity and return on capital from year 2007 until 2010.
2. Efficiency
Debtor turnover increase from 24 days to 30 days.
Unstable creditor turnover day due to financial crisis at the year 2008 and 2009.
Inventory turnover increase from 7.69days until 9.7 days.
3. Liquidity
Strong current ratio able to meet the liability
4. Gearing
Earnings per share keep increase year to year
Financial Evaluation Conclusion
Net profit margin of Apple Incorporation is increasing from year to year. Overviews on the profitability, Apple Incorporation maintain a good profitability, but it effect by economic crisis at 2007.
Besides that, Apple Incorporation have strong liquidity and able to meet the liability. Apple Incorporation did not have long term borrowing. Apple Corporation have strong efficiency in maintain and reducing the creditor and debtor period. It will maintain the corporation reputation.
2.2 HRM Analysis
(Appendix D & E)
Ethic-“Play
1.0 Introduction
The objective of this report is to evaluate whether Apple Incorporation has a strong business model to support its operations in the forthcoming few years. Besides that, it aims to evaluate a strategic option that should adopt by the Apple either a strategic business unit (SBU) or a corporate strategy. Internal and external analysis will be performed to analyse the current strategies that have been adapted by the Apple. The reporting currency is USD.
Apple was founded by Steve Jobs and Steve Wozniak at 1976 and first IPO at 1980. Apple Incorporation now is a multinational corporation in American and one of the largest technology companies in the world. Apple Incorporation has more than 300 retail stores around the world.
Furthermore, Apple Incorporation had 16 SBUs operating over 4 major geographical market segments:-
2.0 Internal Analysis
2.1 Financial Analysis
(Appendix A, B, C)
1. Profitability
Net profit margin is keep going up from year 2007 until 2010.
Unstable return on equity and return on capital from year 2007 until 2010.
2. Efficiency
Debtor turnover increase from 24 days to 30 days.
Unstable creditor turnover day due to financial crisis at the year 2008 and 2009.
Inventory turnover increase from 7.69days until 9.7 days.
3. Liquidity
Strong current ratio able to meet the liability
4. Gearing
Earnings per share keep increase year to year
Financial Evaluation Conclusion
Net profit margin of Apple Incorporation is increasing from year to year. Overviews on the profitability, Apple Incorporation maintain a good profitability, but it effect by economic crisis at 2007.
Besides that, Apple Incorporation have strong liquidity and able to meet the liability. Apple Incorporation did not have long term borrowing. Apple Corporation have strong efficiency in maintain and reducing the creditor and debtor period. It will maintain the corporation reputation.
2.2 HRM Analysis
(Appendix D & E)
Ethic-“Play
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