Business Memo About Risk Assessment And Strategies Of Apple, Inc (Essay Sample)

Risk assessment and strategies of Apple, Inc
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MEMORANDUM
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SUBJECT: Risk assessment and strategies of Apple, Inc
Apple Sale Strategies
Apple Inc. has identified and built a sustainable competitive environment advantage by focusing on key business strategies. First, it creates the best users friendly products and services through vertical integration models. Apples Inc. gets its revenues through the sale of electronic products such as iPod, iPad, iPhone mac computers, apple TV, software and hardware. The company has developed own operating systems, application software and services to attract customers. Through product differentiation the company maintains the premium pricing of the electronic products. Second, it focuses on building platforms for apps and content distribution on the devices produced in the industry. The customer’s access these devices through apple devices and pays for content owners for paid application in cross-side network effect (Pitelis, Christos & Teece 16). Lastly it expands network of company-owned retail stores. Through the high quality buying experience the customers gets easy access for the expanded stores which are simply designed to allow presentation of marketing Apple products worldwide.
Critical Threat in Strategic Risk
Expectation along with corporate risk affects the author expectation for account risks. These risk help to understand process contained in the organization help the author from well expectation for financial; statement balance (Gerais et al., 139). The competition from the new smartphones such as Nokia made apple fails to recognize that its software might not be up to the task. The company has not yet taken a domination chance or share in the existing phone market. Optimizing the supply chain and management of associated risks still emerges as elements of corporate strategy. The improvement of the supply chain performance might induce contribution needed to reduce sustainable risks that opens the way to improved social as well as environmental conditions across the world.
Process of Reducing Expectation Risk
Core competence is the strategy that is utilized in apple to reduce the expectation risk. These skills and abilities make sure the resources are deployed through the organization activities and processes to achieve competition advantages in a manner that is hard for others to imitate or obtain. The core competence will serve as the balance between the unique capability that are evidenced in the company and the strategies and policies that the company needs to acquire in order to maintain or rather to gain competition advantages. The strategy is sustainable since the company uses threshold resources, a capability that needs to change the critical factors or the activities of competitors and new entries. The tradeoffs that is developed assist in achieving the sustainability of acquiring different sort of customers.
Objective of Core Competence
The core competence objective according to the strategic insight apple core competence utilizes strong marketing teams to gain high quality customers services and to upkeep strong performance. Through a proper marketing process the company’s competence, the company stood at $76.5 billion in value around 2012. Therefore, Apple Company delight in consumer loyalty through the provision of services and product that makes it highly competitive against its main competitors that is, Nokia and Samsung. The aforementioned objective is very crucial for apple in marketing its products such as the iPod, iPad, iPhone mac computers, apple TV along with software and hardware. The strategy relates to the overall apple strategies as it was named as the second largest information technology company and the most admirable company in the world in Fortune Magazine.
Threat of substitute products and services
As the information becomes more plenty and easier to have its access, the challenge manager and the staffs face have inadequate information that in turns becomes chaotic and contradictory. The competitor’s capability of producing gadgets such as phones and computers with similar features as apples products poses threat to the company as the rivals sells the product at cheap prices compared to the same apple accessories offered by Apple. The market price differs a lot and the customers will prefer the cheap items and forgo the products offered in apple Inc.
Apple Internal Control
The risk that the apple marketing teams face is the global markets for the company products as well as services offered becomes very competitive and subjective to swift technology variation. Therefore Apple Inc. might be incapable for competing in an effective way in the emerging and existing markets. According to Heracleous (2013), the company has the capacity to contest in a successful if it is dependent on its capability of ensuring a progressive as well as timely rough guide for innovation of new products, technology and services to the marketplace (96).
Financial statement of Analyst Estimates versus Actual RIM Performance
The financial statement of Apple Inc. 2011 shows that the audit of an estimate involves the auditor procedure producing their estimate in comparison with its estimates of the management. Most probably the range for estimated amount is generated. Incidentally, the management estimated an allowance for sale in millions to be $116.86 on May 10, $140.04 in August, 114.96 on November 10 and $89.85 on February 11. For example at the end of the quarter ending in February the account for doubtful may be $5,200 million and the auditor may estimate the allowance to be $5,645.85 to $5,556.00 million. However in the latter case the management estimates lies within the reasonable range of the auditor. The auditor should take note that the estimates lean towards the conservation side. It implies that it should be more than the lower estimate and not less than the auditor’s highest estimate. From the sales estimates the auditor estimation for selling the Apple products was greater than the actual selling and varies in small quantity either beyond or under the actual estimate.
The procedure that works better is the internal control evaluation. The risks of misstatement are based on the evaluation under supervision as well as the company’s market risk management during the second quarter of the year 2016. Apple uses internal control along with safe working relationship in the aim of developing the economy through proper legislative process (Customer Letter np.). The company launched a mixed investigation to evaluate the responses from the public. Joining the fair labor association (FLA), Apple tried as much as possible to provide and improve real working conditions of the employees. The risks that are brought by the failure of tackling the dire working environment and the suppliers are the loss of public trust, injury of the company reputation, violation of the law and the loss of future investment funds.
The control of internal process provides a risk profile over the financial reporting designed to offer realistic assurance concerning the reliability of the financial reporting as well a...