INTRODUCTION

The value of a firm is determined by its profitability and growth .The firm’s growth and profitability are influenced by its product market and financial market strategies.The product market strategy is implemented through the firm’s competitive strategy,operating policies and investment decisions .Financial market strategies are implemented through financing and dividend policies .In this assignment we will try analysing Apple Plc and perform a ratio analysis which will allow us to ascertain company position in the market ,company’s historical record ,key ratios and identifying value drivers of the company .Ratio analysis  help us in checking whether a business is profitable or not and it also reveal whether it has enough money to pay its bills or to keep its shareholders happy . It can also help us in deciding whether a business ,like Apple in that case is doing better this year than it was doing last year .In ratio analysis ,the analyst can :

  • Compare ratios for a firm over several years
  • Compare ratios for the firm and other firms in the industry
  • Compare ratios to some absolute benchmark .

Apple Computer

Apple Computer  was incorporated under the laws of the State of California on January 3 1977.The company designs,manufactures and markets personal computers and related software ,services ,peripherals and networking solutions .It also designs ,develops and markets a line of portable digital music players along with related accessories and services including the online distribution of third-party music and audio books. The Company sells its products worldwide through its online stores, its own retail stores, its direct sales force, and third party wholesalers, resellers and value added resellers. Apple is committed to bringing the best personal computing and music experience to students, educators,creative professionals, businesses and consumers around the world through its innovative hardware,software, peripherals and Internet offerings. The Company’s business strategy leverages its unique ability through the design and development of its own operating system, hardware and many software applications and technologies, to bring to its customers around the world meaningful new products and solutions with superior ease-of-use, seamless integration and innovative industrial design.

The Company  believes continual investment in research and development is critical to facilitate innovation of new and improved products and technologies. The Company continues to capitalize on the convergence of digital consumer electronics and the computer by creating product innovations like the iPod and iTunes Music Store.Apple is the only company in the personal industry that controls the design and development of the entire personal computer .It also provides industrial design ,intuitive ease-of-use and built-in networking graphics and multimedia capabilities.

One of the key value driver that I have identified in Apple will be that of planned expansion or capacity management and also customer loyalty .Apple believes that a high quality buying experience with knowledgeable salespersons ,who can convey the value of the Company’s products and services is critical to attracting and retaining customers .As such ,in addition to expanding its indirect distribution channels ,the company has expanded its product distribution strategy to include its own retail locations .It normally sells many of its products in most of its major markets directly to consumers ,education customers and businesses through its retail stores in the US and internationally through one of its online stores around the world .It believes that enabling a direct interface with its targeted end customer provides an efficient means to effectively demonstrate the advantages of the Company’s Macintosh and other products over its competitors .It has expanded the points of distribution in order to make available its products at locations where its customers shop .It has also opened 84 retail stores in the US and 2 international stores in Japan .It anticipates opening of a further 14 additional stores and thus bring the total number of stores to 100 .

  One of their goals is to bring new customers to the Company and expand its installed base through sales to both first time personal computer buyers and those switching to the Macintosh platform from competing operating systems.By building its own stores and building them in high traffic locations ,the Company is able to better control the customer retail experience and attract new customers .They even located their stores at high traffic locations in quality shopping malls and urban shopping districts .They also present entire computing solutions to users in areas such as digital photography ,digital video ,music and home and small business computing .They have also focused on the use of technology in education and has been committed to delivering tools to help educators teach and students learn .They believe that effective integration of technology into classroom can result in higher levels of student achievement .It creates solutions that enable new modes of curriculum delivery ,better ways of conducting research and opportunities for professional development of faculty ,students and staff .

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Another key value driver of apple will be that of sales growth rate and market share growth.Creative professionals constitute one of Apple’s most important markets for both hardware and software products .Creative customers utilize the Company’s products for a variety of creative activities including digital video and film production and editing .digital video and film production .In order to accelerate market share throughout the world ,the company manages its business primarily on a geographic basis.Its operating segments consists of the America(North and South),Europe ,Japan and retail .The European segment include European countries as well as Middle East and ...

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