This memorandum is a financial reporting analysis of Apple Inc. This analysis comprises of four different aspects of Apple; Apple’s business environment, competitive strategies, economic and human resources in achieving those strategies and the influence of those strategies on Apple’s accounting policy.
A business environment encompasses all the factors and conditions that affect an entity’s operation. Apple operates its business on a geographic basis, which includes the Americas, Europe and Japan. America’s represent both North and South and the Europe segment includes Middle East and Africa. (p. 2-3) Apple sells its products through wholesalers, resellers, national and regional retailers and cataloguers. The company’s major customers are in the consumer, SMB, education, enterprise, government and creative markets. Apple’s operates its business on a very competitive market and this competition is based on markets in personal computers, mobile communication devices, consumer electronics, related software, services and peripheral products. (p. 9) The company must also comply with environmental and other regulations for their production and marketing in other countries as well as in the United States. Apple’s operations are heavily affected by the world economic conditions. The uncertainty of the world economy could have a negative effect on the company’s business and the stock price. (p. 12)
Apple’s competitive strategies are along the lines of focused differentiation. They create products that are made specifically for certain targets such as consumers, students, educators, businesses, and government agencies. Apple is committed to bringing the best personal computing, mobile communication and portable digital music and video experience. This strategy is implemented through the creation of specific products and solutions made differently from its competitors. The corporation produces Mac computers, iPods, iPads, iPhones and the iTunes...