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Apple's Financial Management Under New CEO

   

Added on  2019-09-30

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NAME OF STUDENTAPPLE’S STORYFINANCIAL MANAGEMENT
Apple's Financial Management Under New CEO_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
Apple's Financial Management Under New CEO_2

Financial Corporate Objectives – Before and after the newCEO changeApple Inc. became the most valuable company in the world before Steve Jobs stepped down asCEO in 2011. (Luckerson, 2014). Before the CEO change the Apple’s objectives were focused onproviding best quality product even though they were not pioneered the product itself. Thefocus was on product engineering and marketing with no role of operations and logistics indecision making. After the CEO change, the objectives has shifted from centralization to a moredecentralized organization. Earlier, Jobs personally handled M&A and product designing andmarketing activities. (Lashinsky, 2012). After the CEO change, the company has empowered itsmanagers to take charge with minimal intervention and guidance of new CEO.Impact towards financial decisions in finance and capitalmarketThe change in objectives of Apple Inc. under the new CEO has the following impact in thefinancial and capital market:a.The company used the cash reserves to buy back the equities from the shareholders.This helped the company to boost its earning per shares and provide cash to theinvestors who wanted to opt for buyback of equity. (Lashinsky, 2012)b.The company’s focus to reward shareholders for their investment led to declaration ofquarterly dividends. This was in stark contrast of retaining and reinvesting every moneyearned philosophy under Jobs. (Lashinsky, 2012)c.The company meeting rooms for long term planning and product innovations involvedproduct management and supply management inputs as well which not the case was inthe earlier set up. (Lashinsky, 2012)d.Traditionally, Apple has been able to boost its profitability through huge volumes on asmall range of products. The new CEO introduced new products which were cheaperalternatives to the existing ones. This helped the company to extend its market further2
Apple's Financial Management Under New CEO_3

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