This paper is an in-depth business analysis of Apple Inc (AAPL). In this analysis, many areas of AAPLs business will be discussed to determine the risk level associated with investing a portion of a mutual fund in this company.
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Abstract This paper is an in-depth business analysis of Apple Inc (AAPL). In this analysis, many areas of AAPL's business will be discussed to determine the risk level associated with investing a portion of a mutual fund in this company. It will begin by discussing the strengths, weaknesses, opportunities, and threats (SWOT) of AAPL. Based on the information gained in the SWOT analysis, I will determine what information is most relevant in my decision to invest in AAPL. I will identify AAPL's stakeholders, internal and external, and describe their wants and needs. I will discuss how AAPL is fulfilling these stakeholder's needs; if they are coming up short on fulfilling these needs, I will discuss what the company needs to do to ensure that they are indeed fulfilling these needs.
Weaknesses As for weaknesses, there are very few; two appear to be most glaring, AAPL is not very shareholder friendly and Steve Jobs is no longer the Chief-Executive-Officer (CEO). Despite that AAPL is possibly the most cash rich company in the world, they have not paid out a dividend since November 21, 1995 ("Apple Inc.: Nasdaq:aapl Quotes & News - Google Finance", 2011). For a mutual fund, dividends are a source of growth; without dividends, the only source of growth for a stock to increase in its index price. The other major weakness as mentioned before involves Steve Jobs stepping down as CEO on August 25, 2011 because of health reasons and Tim cook replacing him (Kane, 2011). With Jobs out and Cook in, there is some level of uncertainty with the future of AAPL and its ability to continue its dominating growth.
sales for $599. The other major threat is that AAPL's products are easily copied and has led them to sue and be sued for copyright infringement. Stakeholders AAPL, as any organization, has many stakeholders; in fact because of the size of AAPL, they more stakeholders than most organizations. As with any organization, AAPL has both internal and external stakeholders. AAPL's internal stakeholders include the employees, management, and the investors, while their external stakeholders include suppliers, lenders, and customers. Because of the financial health of the organization, AAPL is meeting the needs of all their stakeholders with possibly one exception. The exception could be the investors are not as taken care of as they could be; for the investor, it would probably be more advantageous for them to receive some dividends. With Steve Jobs leaving the organization, this may be a good opportunity for AAPL to change that trend and start rewarding their investors with a quarterly dividend.
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