Financial Analysis and CSR of Apple and Samsung

Apple and Samsung
7/23/2018
2018
Financial Analysis Management & Enterprise

FINANCIAL ANALYSIS AND CSR 1
Table of Contents
Introduction................................................................................................................................2
Background of Apple.............................................................................................................2
Background of Samsung........................................................................................................3
Question 2 Corporate Social Responsibilities........................................................................3
Corporate Social Responsibilities of Apple.......................................................................4
Corporate Social Responsibility of Samsung.....................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8
Appendix..................................................................................................................................10
Question 1 Financial Analysis of Apple..............................................................................10
Financial Analysis of Samsung............................................................................................13
Comparative Chart...............................................................................................................17

FINANCIAL ANALYSIS AND CSR 2
Introduction
Financial analysis is one of the essential aspects of the whole finance function of the business
that is comprised of observing the past data to attain data or information of the present and
future financial position of the business (Birchall, 2014). The financial analysis could be
applied in a varied range of circumstances that offer the information to the managers of the
business, which is required to take important decisions. The capability to comprehend the
financial data is important for every manager of the business. Finance is considered the
language of the business. Objectives and goals of the business are framed in the financial
terms and their results are evaluated in the financial terms. The finance function in a business
comprises analysis of the economic trends, framing financial policies, and making long-term
plans for the activities of the business. It is comprised of applying internal control system for
managing cash, the sales recognition, inventory valuation, and disbursement of expenses
(Fridson and Alvarez, 2011). This report is being prepared in order to compare the financial
performance of two major companies i.e. Apple and Samsung who are the key players in the
consumer electronic appliance industry. Besides this, the report will evaluate corporate social
responsibility of both the companies in order to identify their image and contribution towards
the benefit of the society.
Background of Apple
Apple Inc. is multinational technology company of America with headquarter in Cupertino,
California. The company majorly deals in the designing, creating, and selling computer
software, online services, and consumer electronics. The hardware products of the company
comprise the iPad tablet computer, the Mac personal computer, the iPhone smartphone, the
iPod handy media player, the HomePad that is a smart speaker, the Apple Watch it is a
smartwatch, and the Apple TV digital media player (Rawlinson, 2017). The software range of

FINANCIAL ANALYSIS AND CSR 3
Apple is comprised of iOS and macOS operating systems, web browser the Safari, media
player the iTunes, and productivity and creativity suites the iWork, and iLife, along with this
it also comprises professional applications such as Logic Pro, Xcode, and Final Cut Pro.
Company’s online services comprise the Mac App Store, iCloud, iOS App Store, Apple
Music, and iTunes Store (Zang, 2018).
Background of Samsung
Samsung is a multinational conglomerate of South Korea with the headquarter in Samsung
Town, Seoul. It includes various connected businesses; maximum of them are integrated
under the same brand i.e. Samsung. The company is the biggest conglomerate in South
Korea. The company was established in 1938 under the supervision of Lee Byung-Chul as a
trading company. Over the subsequent three decades, the group expanded its business into
different areas comprising textiles, securities, retail, food processing, and insurance. In the
late 1960s, the company initiated its steps towards the electronics industry and in the mid of
1970s in the industry of shipbuilding and construction (Samsung profile, 2013). These
industries have offered a subsequent growth to the whole group. After the death of Lee in
1987, Samsung was detached into four groups i.e. Shinsegae Group, Hansol Group, Samsung
Group, and CJ Group. Since 1990, the company has gradually globalized its electronics and
business activities specifically its semiconductors and mobile phones have become the most
significant income source (Lifewire, 2018). As of 2017, Samsung Company possessed the
sixth highest brand value at the global level.
Question 2 Corporate Social Responsibilities
Corporate social responsibility or CSR is a self-regulating model of business that assists a
company to become socially responsible to the public, its stakeholders, and itself (Haynes,
Murray and Dillard, 2013). By performing corporate social responsibility, businesses can be