MBA 520- Milestone 2.docx - Running Head FINANCIAL PERFORMANCE AND HEALTH OF APPLE INC 1 Final Project Milestone Two Module Five Success Factors and

MBA 520- Milestone 2.docx - Running Head FINANCIAL...

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Running Head: FINANCIAL PERFORMANCE AND HEALTH OF APPLE INC. 1 Final Project Milestone Two- Module Five Success Factors and Risks Priorities Apple has been and is one of the most successful technology companies in the world. One of their main strategies is “differentiation,” where they are able to separate themselves from their competitors (Meyer, 2019). This differentiation is due mostly in part to their innovative technology that gives them an edge over their competitors. As one of Apple’s main strategies is to be more innovative than their competitors, this affects their business decisions in regards to what type of product to produce next. For example, if a competitor of Apple produces a new computer, it would be in Apple’s best interest to develop a new computer as well in order to maintain their competitive advantage. In regards to accounting procedures, it is important for Apple to be flexible in order to account for the various products that are in production at any given time. As one of the most innovative companies in the world, Apple must be able to adapt their accounting procedures while also staying within the set boundaries of the law. Apple’s management is both growth-oriented and efficiency-oriented, but they tend to lean more towards being growth-oriented. This can be seen in the innovation with each new product release or software update. In order to remain growth-oriented, Apple must “continue emphasizing innovation through research and development” in order to maintain their competitive advantage over other companies (Meyer, 2018). As a growth-oriented company, Apple must monitor the success of each new product, as some may be more successful than others. It does Apple no good if they have a product on the market that is not successful, and even more so, if they are continuing to develop this product more. The accounting procedures of
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2 FINANCIAL PERFORMANCE AND HEALTH OF APPLE INC. each product is important for management so that business decisions can be made that benefit the company, not hinder it. Lastly, Apple is more concerned with long-term planning, as CEO Tim Cook states that although their products are not always the first of their kind on the market, they are the first modern ones (Fingas, 2018). He also says that they are currently working on products now that will not be released until 2020 (Fingas, 2018). With long-term planning spanning more than two years, it is safe to say that Apple is a long-term planning company. This affects their accounting procedures in regards to knowing how much money needs to be allotted to each product, and what to do if there are unexpected events during product manufacturing. Business decisions need to be made in regards to how much money can go into each product, as well as what to do if a product is underfunded or runs out of money during production. There are many possible
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