The assignment has been segregated into two major sections. The first part of the assignment has dealt with the financial and non-financial performance analysis of Apple Inc. With the help of this analysis, it has been derived that investment in this company can be extremely profitable from the point of view of the investors. The second part of this assignment has critically discussed the capital budgeting principles used by the firms.
The report highlights on the overall performance of Apple Inc. The report is prepared for evaluating whether One World Investment can make an investment of $20 million in Apple Inc.’s shares. It elaborates the strategies that are executed by Apple for the operation of their business in the changing world of management. The financial performance of the company elaborates the fact whether the company is suitable for investment of $20 million in their shares. It can be evaluated through the share price movement of the company for the last five years. Ratio analysis is a very important technique to evaluate the financial status of a company. The profitability, liquidity and solvency of the company are noted so as to check its stability. The Dupont analysis is carried out to check the change in Return on Equity over the years. The future investment potential of Apple is also evaluated by examining the market share of the company, human resource management of the company, considering the products and revenue and also the customer service. Finally the recommendations are made whether to make the investment of $20 million in the company or not after the evaluation of Apple Inc.
Apple Inc. and the wholly-owned subsidiaries which is collectively known as Apple focuses in designing, manufacturing and marketing mobile and media devices. It also markets personal computers and digital music players. It also engages itself in selling a range of software, peripherals, services and provides networking solutions.
Apple sells its products worldwide through the retail stores that it had opened in various parts. Other than retail stores the company has also set up online stores and have sent direct sales force so that it can reach every parts of the world. The customers of the company are mainly the consumers, educational institutions, government and mid and small sized businesses.
Apple Inc. has provided its customers with the best experiences by providing them innovative hardware, peripherals and hardware. The company’s business strategy highlights it’s unique ability of developing and designing operating systems, application software, hardware and the services for providing their customers new products and means of solution with innovative designs and ease of use. The company aims at constantly investing in marketing, advertising and research and development. It helps in developing the process of manufacturing and the techniques of selling the innovative technologies and products. Concentrating on the strategies the company have continuously expanded its platform by delivering and discovering third party digital contents and applications via its iTunes Stores.