Pursuit and Payoff of Apple's Excellence - Essay Example

Apple was started by co founder Steve Jobs and it is one of the leading and most successful companies in the consumer electronics industry along with the personal computer. Macintosh, personal computers, digital music plates and iPod are few of the many successful products of Apple. The company was the vision of Steve Jobs and he co founded this company during 1976 by using the name of Apple computer incorporation. The name was then changed as per the demand to Apple Inc. Apple IIe was the very first successful product of apple. In 1980 the company basically became public and it ended up in becoming a source of huge bank balance of their owners. During the year 1984 Apple Inc executed the idea of Macintosh which totally changed the look and experience of computer as it was now available for the graphical users and it is also had a pointer devise with it known as the mouse. Decline was also associated with Apple especially from the period of mid 1980 to the mid 1990. Steve Jobs was thus fired from the company though he was a co founder. After some time, Apple Inc purchased a company named as Next which was started by Steve Jobs after he left apple in 1985. This purchase of the company again brought Steve Job back in Apple and in their management team with Steve Jobs becoming the CEO during the year 1997. When Steve Jobs came back in Apple he brought with him a totally new period of success and also growth for apple. People were talking about Steve Jobs managerial skills along with bringing innovation in the company. Technology which he brought was indeed special and it contained proper professional applications. Digital media revolution was brought by apple with the introduction of iPod which was portable music and also video players along with online stores like I Tunes. I phone was a revolution especially in the mobile phone market. The claim which was brought into view from the evidence of the market it clearly showed that Apple Inc is a major and main player especially in the consumer and also computer industry. Business strategy innovation was thus brought by Apple Inc. Steve Jobs is undoubtedly an important figure for Apple Inc and an integral figure behind apple. He was not only the Chief executive officer of the company but was also the driving force. He played the crucial role of bringing Apple where it is today from the decline it saw during the year 1997. A central figure behind Apple Inc., or as some may say in front of Apple Inc., throughout its history is Steve Jobs. He was the driving force that started the company. There many people who talk about the vision and hard work of Steve Jobs. Media, annual Macworld conference and also the world wide developer’s conference clearly shows the innovative role which is played by Steve Job in becoming the market leader and also establishing the company’s culture which exist today (Top companies: Fastest growing. (2011).) Quantitative models are very important and crucial in the market today specially due to the market competition and also the progress which is seen in recent days related to the data storage and also data collection. Cost benefit analysis can be carried out for Apple computers. It moves from loosely coupled, high throughput computer with highly intensive applications however the intensity level is low, to tightly coupled and data intensive applications which are real time, however the complexity level is high. There are few factors which are analyzed and kept in mind from the client whose hosting is carried out on cloud to the server hosting which is on the cloud. Apple analyzes few costs on the monthly bases, starting from the salaries which vary and are associated with the admin. Electricity costs linked with the servers, along with the network and hardware costs which are analyzed and then the total startup cost is analyzed by apple which then helps in finally calculating the total monthly costs (Timeline of the former Apple CEO. (2011)) Apple takes into account the shadow prices and the costs which are incurred. The costs which are stated earlier form the major costs of Apple computers and the benefit received from the computers or the revenue basically is the root cause of the profit which is earned by the company. Apple carried out their cost benefit test so that they are well aware of the decisions they have taken along with becoming the base for their projects. The total expected cost is thus compared along with the expected benefits which apple is receiving from their computers. Apple analyzes whether the costs incurred are worth the benefits and advantages apple is receiving. Cost here is particularly associated with the monetary costs and also it settles it for time value of the products. Apple carries out the process by firstly in detail listing the projects and programs they are dealing with, then the cost benefit factors which are the costs and the revenues which are received are properly analyzed in detail. Apple predicts the outcome which is associated with the time period being relevant. Apple then converts all the revenue they have generated from different countries into one single currency dollar. If apple is providing any discount rate, it is properly applied to the revenue which is earned along with calculating the net present value associated with the project options, also the sensitivity analysis is carried out. Finally the decisions are based on the result and the final recommendations are provided. Apple has to keep in mind few important factors which can have an impact on the cost benefit analysis, which includes the risks which are associated along with the uncertainty. Public policy and also transportation investment is properly analyzed with time and discounting taking places in detail. Apple has to keep in mind the tough market competition which is going around along with the recent progress and the data which apple collects and stores. It thus needs proper data storage and also data collecting techniques so for making it simpler, apple uses many quantitative models which has basically become an important part of the development and also research which is carried out especially in the study fields. Apple is basically using “Monte Carlo Simulation which they use to calculate the value which can be lost and there is a risk associated with it from the interest rate being changed. They are also using Interest rate modeling to check the interests which is provided to the share holders and also the impact which is on the company. Pricing framework is thus designed by apple using this effective technique. Apple in the world today which is full of competition can not only rely on one financial or even mathematical finance technique for analyzing the costs which are incurred and establishing the prices accordingly so that profit can be earned. Apple has a proper efficient team which is working to use the quantitivatve models and also they have experts who properly predict the outcomes from the system and these systems are properly governed by the quantitative modeling. There are few users who do not have proper confidence in the model but still all these models are highly helpful in helping out the future outcomes along with the results which are properly examined and kept in mind. References Apple's Financial History and Timeline. (2011). Retrieved fromhttp://followtrends.blogspot.com/2011/08/apples-financial-history-and-timeline.html Apple’s Jonathan Ive Awarded as Knighthood in New Year Honors List! Retrieved fromhttp://hitechanalogy.com/apples-jonathan-ive-awarded-knighthood-year-honors-list/ Global 500, Top companies: Fastest growing. (2011). Retrieved fromhttp://money.cnn.com/magazines/fortune/global500/2011/performers/companies/fastgrowrevs Nui, E. (2011). Is Apple Losing It? Retrieved fromhttp://www.fool.com/investing/general/2011/12/09/is-apple-losing-it.aspx Steve Jobs - timeline of the former Apple CEO. (2011) Retrieved fromhttp://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/digital-media/8809981/Steve-Jobs-timeline-of-the-former-Apple-CEO.html "Computer models ." Apple quantitative models . Version 13. Prof. Gerbrand Ceder Prof. Nicola Marzari, 7 Oct. 2010. Web. 11 Mar. 2013. . "Cost-Benefit Analysis - Decision Making Tools From MindTools.com." Mind Tools - Management Training, Leadership Training and Career Training. N.p., n.d. Web. 11 Mar. 2013. . "Cost-Benefit Analysis Definition | Investopedia." Investopedia - Educating the world about finance. N.p., n.d. Web. 11 Mar. 2013. . "Importance of Quantitative Modelling | ."OptiRisk Systems. N.p., n.d. Web. 11 Mar. 2013. . Example, choices which have been made. For, and improvements in transportation. "AN INTRODUCTION TO COST BENEFIT ANALYSIS." Powering Silicon Valley | San Jose State University. N.p., n.d. Web. 11 Mar. 2013. Read More