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Impact of Apple's New CEO on Financial Management

   

Added on  2019-09-25

8 Pages1441 Words264 ViewsType: 264
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FINANCIAL MANAGEMENT
Impact of Apple's New CEO on Financial Management_1

ContentsFinancial Corporate Objectives – Before and after the new CEO change........................2Impact towards financial decisions in finance and capital market.....................................2Possible Impact of economic environment on Apple’s financial management.................4References.........................................................................................................................61
Impact of Apple's New CEO on Financial Management_2

1. The Firm - Apple1.1 Financial Corporate Objectives – Before and after the new CEO changeApple Inc. became the most valuable company in the world before Steve Jobs steppeddown as CEO in 2011. (Luckerson, 2014). Before the CEO change the Apple’sobjectives were focused on providing best quality product even though they were notpioneered the product itself. The focus was on product engineering and marketing withno role of operations and logistics in decision making. After the CEO change, theobjectives has shifted from centralization to a more decentralized organization. Earlier,Jobs personally handled M&A and product designing and marketing activities.(Lashinsky, 2012). After the CEO change, the company has empowered its managersto take charge with minimal intervention and guidance of new CEO.1.2 Impact towards financial decisions in finance and capital marketThe change in objectives of Apple Inc. under the new CEO has the following impact inthe financial and capital market:a.The company used the cash reserves to buy back the equities from theshareholders. This helped the company to boost its earning per shares andprovide cash to the investors who wanted to opt for buyback of equity.(Lashinsky, 2012)b.The company’s focus to reward shareholders for their investment led todeclaration of quarterly dividends. This was in stark contrast of retaining andreinvesting every money earned philosophy under Jobs. (Lashinsky, 2012)c.The company meeting rooms for long term planning and product innovationsinvolved product management and supply management inputs as well which notthe case was in the earlier set up. (Lashinsky, 2012)d.Traditionally, Apple has been able to boost its profitability through huge volumeson a small range of products. The new CEO introduced new products which werecheaper alternatives to the existing ones. This helped the company to extend its2
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