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Apple Case Study - Coursework Example
Author : lrobel
Finance & Accounting
Pages 14 (3514 words)
The report is split into two sections, the first addresses Apple’s current situation and strategic position to date, while the second section goes on to give a set of specific recommendations for Apple’s strategy moving forward…
The paper tells that it would appear that Apple segments its business into business units on a geographic, rather than product bases, in addition to the four geographic business units, the company treats the retail business as a separate business unit. Each business unit reports sales and profitability from all product and operational categories within the region, with the exclusion of retail operations which fall under a separate SBU. In analysing Apple’s strategy, subsequent sections of the report will refer to the European SBU where appropriate. The financial performance of Apple’s European SBU would seem to be quite impressive in light of the economic events taking place during the period. Europe represents Apple’s second largest market by sales volume as the Americas division. Sale have risen from $9,233m in 2008 to $18,692 in 2010, a rate of growth of over 102%. Profit during the period has similarly increased from $3,022m in 2008 to $7,524m in 2010, an increase of 149% suggesting that profitability is increasing at a greater rate in proportion to sales. As such, this suggests that Apple’s European SBU has effectively kept expenses under control and is beginning to benefit from various economies of scale as sales increase . An interesting aspect of Apple’s capital structure is that the company reported to have no long term debt financing in the period 2006 to 2010. As such the company is wholly financed through equity. ...