ARM Holdings Performance from an Inter-Disciplinary Perspective - Assignment Example

 ARM Holdings Introduction ARM Holdings is a British company mainly focuses on the production of software and semiconductors with its headquarter being located in Cambridge. The software that the company develops have been invented by the company has enabled design of classes of computing services. The systems have been used in computing devices in architecture view as it is embedded in systems including those in safety systems. The main graphic processing unboots by the company has been used in android tablets, laptops and smartphones. The chips has been used in Bluetooth, broadband and Wi-Fi. It has also been used in corresponding devices such as Bluetooth headsets. The objectives are seen from the business models that are used differs from the other that have been applied by traditional companies. The company only creates its technology and licenses as being intellectual property rather than the use of physical selling of manufactured CPUs (Buckingham, 2008). The main aim of the paper is to bring out the analysis of the company in terms of the improvement that it has made in the products and the competitive advantages that it has in terms of sales and features on other competitors such as Intel. Analysis In the study, there was realization that the company is able to thrive in the next financial period despite the Intel onslaught.in the consideration on the issue of Intel, the revenue of ARM and shipment of the chips grew to 20% in 2014. The company realized that there is rush in producing a new wave rated as 64-bit. The production is expected to negate Intel mobile due to the ARM powered device. Other markets that the company has are determined to increase the growth of the company In the analysis, there was a result that shows that internet is a matter so much in the company. The company has also bought a security company, off spark. The company was bought so that it could be able to operate an open source internet of the operating system. The security that is obtained by the company will be enough making them to operate and safest way to play loT transition (Buckingham, 2008). ARM Holdings may be worth a look. The worth of the company can be observed through the release of Cortex-A72CPU. The outcome of the new chip has been an advantage to the competitors Intel. From the analysis in the company, the growth and sales of the company for a period of five years shows that: Key Fundamentals 2014 2013 2012 2011 2010 Revenue (£ m)   795.2 714.6 576.9 491.8 406.6 Pre-Tax (£ m)   316.5 162.6 221 156.9 110.03 EPS  18.20p 7.50p 11.70p 8.40p 9.34p PE  54.67 146.53 65.64 70.48 45.32 PEG  0.38 -4.08 1.67 -7.01 0.63 EPS Growth  142.67% -35.90% 39.29% -10.06% 71.38% Dividend Cover  2.97 1.52 3.11 2.68 3.58 Dividend Yield  0.62% 0.45% 0.49% 0.53% 0.62% ARM holdings have found to be a worldwide company that has branches across the whole world. Some of these branches are located in California, Texas, Washington, Bangalore, Munich and Yokohama. Arm was found to be able to create and license its products and technology. This products and technology was licensed as intellectual property. This year ARM holdings carried out trade at expensive costs thus it has lost 20% of its value. This has made ARM holdings to have loss in its stock. During the recent quarterly results the ARM holdings missed to achieve its expectations thus Intel Company has provided competition in the mobile chip sector. This company is mostly concerned with the growth of internet that will help the ARM holding get back on its track in the future. It is also focused to achieve long term growth through partnering with Mozilla that will help catalyze marketing by using smartphone. In the analysis, ARM holding was found to be lagging the market behind in the recent year and has a chance to spring back. This is achievable through purchasing of stock from ARM holdings to boost the company. It is possible for the company to bounce back because it is reported that Microsoft company is testing sever from ARM holding. Microsoft is company is considering running software on ARM servers. This will be a huge benefit to the ARM Company and a big challenge to Intel Company. Microsoft attention to ARM holding will signal Microsoft intentions for internet and mobile sector in the future. ARM holding is a big company and is already a dominant player in the mobile sector while other small companies are figuring how to get shares from the ARM holdings. Compared to other small companies ARM holdings is more adverse and generates free cash of over 200% dollars of revenue. ARM holding is providing internet business which is turning to be the most important division of the company. ARM holding attained a high revenue and profit in the June quarter despite competition from the Intel’s mobile company. ARM holdings are experienced in producing quality products and these products have gained strong traction in the market. Their licensing system is expanding significantly due to the growing base of the customers. Growing of mobile devices and clouding computing has led to the growth in opportunities of the ARMs end market. ARM holdings make their cash through selling of licenses to customers and obtaining earnings from recurring royalties. Markets that promote growth of the ARM holdings are from networking of enterprises and through automotive solutions. In the recent released stock price it implied that there was an annual growth in the rate of earning by 60%. This was a good step in the ARM holdings (Fund, 2007). In the recent years ARM posted a 16% rise in revenue although processor royalties and shipments growth. ARM holding is faced by firm competition from Intel in the mobile sector. This competition has made the Intel Company to make gain in their share value while many of the ARM processors makers are still struggling with making of Intel processes and 64 bit advantages. Presence of ARM holding in the enterprise network and server in the market is blossoming significantly through building of strong client relation to the company which could make ARM holdings to gain market presence (Hill, 2013). In the analysis, strong growth opportunity in the ARM is built through embedded computing activities and has led to strong market presence because the ARM chips are the most preferred ones by the vendors. Products from the ARM holdings are more valued and this has led to a solid model in business and a strong hold on mobile markets. This company has led to continued growth in the mobile sector and led to adoption of IT for future growth of the company (Mills & Kiff, 2007). The presence of the company in the market has been beyond the mobile computing. The company has been building more clientele which helps the company to gain more consumers and hence improve in the sales. Embedded computing of the company gives it a growth opportunity as the company has already build strong relationship with consumers as most of the goods that it produces in terms of chips being prefer by the vendors. Growth that is observed from the smartphone company has played an important role in in offsetting the impacts that become negative of the development of market sales saturation for the company. in the processes of increasing the operations, it has also focused to achieve long term growth through partnering with Mozilla that will help catalyze marketing by using smartphone. In the analysis, ARM holding was found to be lagging the market behind in the recent year and has a chance to spring back. This is achievable through purchasing of stock from ARM holdings to boost the company. It is possible for the company to bounce back because it is reported that Microsoft company is testing a sever from the company (Mills & Kiff, 2007). Microsoft is company is considering running software on ARM servers. There are conditions that the company has also undergone making it to have reduction in the sales and reduction in the sales that it has. Intel as a main competitor in production of chips in 2013 was seen to bring the shares of the company down by 20%. Despite the stiff competition, there is a significant catalyst of growth in the company. The company gets catalyst by improving the goods that they develop and the areas that they cover with the goods that they produce. Development of smartphone industry has enlarged the production of chips by the company. Executive summary The company realized that there is rush in producing a new wave rated as 64-bit. The production is expected to negate Intel mobile due to the ARM powered device. Other markets that the company has are determined to increase the growth of the company. ARM holdings is a big company and is already a dominant player in the mobile sector while other small companies are figuring how to get shares from the ARM holdings (Fund, 2007). Compared to other small companies ARM holdings is more adverse and generates free cash of over 200% dollars of revenue. As compared to other competitors in the same field, the company is seen to have strategized its production by focusing on satisfaction of consumers and at the same time increasing the sales through fair competition. Several partnerships and incorporation of other companies in their production has also brought more advantage in terms of competition and also access to a wider market. Conclusion In the analysis, ARM holding was found to be lagging the market behind in the recent year and has a chance to spring back. This is achievable through purchasing of stock from ARM holdings to boost the company. It is possible for the company to bounce back because it is reported that Microsoft company is testing a sever from ARM holding. Microsoft is company is considering running software on ARM servers (Eric Barringer. et al., 2003). This will be a huge benefit to the ARM Company and a big challenge to Intel Company. Microsoft attention to ARM holding will signal Microsoft intentions for internet and mobile sector in the future. Recommendation ARM Company has been successful in implementing their activities in the economy. The sales that the company has been able to achieve are due to proper allocation of resources and fair competition that it has with other producers such as Intel Company. The company however should be able to increase in the production as there is rapid growth that occurs in the mobile and computer technology that requires more of their products. Internet is a factor that is much considered with the company as through this operation, the company is able to develop their products. References Buckingham, I. (2008). Brand engagement. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Eric Barringer., Dan Norrick., Brad Palmer., Todd Romine., Charles Vesely., & Cris DeBellis., et al. (2003). 10kW SOFC POWER SYSTEM COMMERCIALIZATION. Pittsburgh, Pa.: National Energy Technology Laboratory (U.S.). Fund, I. (2007). United States. Washington: International Monetary Fund. Grove, A. (2006). Only the paranoid survive. New York: Currency Doubleday. Hill, K. (2013). International directory of company histories. / Volume 139. Detroit, Mich.: St. James Press. Jackson, T. (2007). Inside Intel. London: HarperCollins. King, N. (2002). Exit Strategies. Chichester: Capstone Pub. Mills, P., & Kiff, J. (2007). Money for Nothing and Checks for Free. Washington: International Monetary Fund. Moreland, J. (2000). Profit from legal insider trading. Chicago: Dearborn. Read More