Memo of Analysing Apple Inc - Research Paper Example

Due Apple Inc. Memo By considering its sales and revenues, Apple is ranked as the most valuable company in the world (Zylla-Woellner 2). According to data available in Yahoo!Finance (n.p), The company recorded sales revenues of $156.508 billion in 2013, which increased to $170.910 billion shillings in 2013 fiscal year. The statistics represent a 9 % increase in revenues. However, the net income associated with the period reflected a different scenario. The net income decreased from $41.733 Billion in 2012 to 37.

037 billion in 2013, which represent a 10% decrease in net income. The 2013 financial year shows a general fall in the revenues and profit of the company. In 2011, the firm had a revenue of 108.249. The figure implies that revenues grew by 44% to reach a value of $156.508 in 2012. Consequently, net income increased by 60% and rose from $25.922 in 2011 to $41.733 in 2013. The figures above show that Apple’s revenue is growing at a decreasing rate. The situation is supposedly caused by factors such as increasing expenses, ethics and corporate social responsibility and competition from other major brands.

To resolve the issues stated above, Apple Inc. will formulate and apply strategies such as:Reducing expenses Apple will try to minimize the proportion of income arising from operations. As seen in the 2012 and 2013 financial years, costs substantially reduced the income applicable to shares. Reduction of expenses will be done through more outsourcing of business in areas where the costs of operations are lower. In addition to that, the company will set new standards or business terms to its suppliers to increase the quality of products and avoid delays.

As Saxena and Sangeeta put it, effective outsourcing and sub-contracting is sure ways of reducing costs for the firm (154).Ethics and Corporate Social Responsibility The reputation of the corporation in terms of ethics and CSR is not sound (Warther and Chandler 95). Apple will thus seek to address the concerns by participating in welfare programs in communities where it operates. The CSR action will be based on environmental issues, employment, sports and health. The ethical perspective will focus on fair remuneration of employees, especially in supplier firms.

Moreover, Apple will track and eliminate bribery that has ravaged the company and its supplier with the interest of enhancing the corporate image of the company.Competition Apple faces stiff competition from major technology giants such as Samsung, Sony, Huawei and LG. The competition is intense and eats into the market share of brands such as iPhones. As a result, Apple will invest in research and development to ensure its products remain unique and differentiated from competitors (Williams 145).

In addition, Apple will open more retail stores and collaborate with convenience stores all over the world to boost its presence in existing and untapped markets. More retail centers will be opened in undeveloped markets such as Africa. The aim is to have at least 1000 retail centers, up from the current 435 in two years’ time. The company will also develop a long term project of devising products for the lower end market. It will aim to cater for the middle and low-income earners since Apple products seem to be a reserve for the high-income earners (Aluya 103).

If the above strategies are implemented, Apple will maintain its slot as the most valuable company in the world. The current hindrances will become pillars of success for the company. The competitive advantage of Apple will remain stable through ethical considerations, CSR and taming competition.Works cited"AAPL Income Statement Apple Inc. Stock." Yahoo!Finance. N.p., 8 Oct. 2014. Web. 9 Oct. 2014. .Aluya, Joseph. The Influences of Big Data Analytics. Bloomington: AuthorHouse. 2014. Print.

Saxena, K B. C, and Sangeeta S. Business Process Outsourcing: For Strategic Advantage. New Delhi: Excel Books, 2009. Print.Werther, William B, and David Chandler. Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. Los Angeles: SAGE, 2011. Print.Williams, Chuck. Effective Management: A Multimedia Approach. Mason, OH: South-Western/Cengage Learning, 2012. PrintZylla-Woellner, J. Business Analysis of Apple Inc. GRIN Verlag, 2013. Print.