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Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
Management process of Ipad
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Management process of Ipad

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  • 1. ASSIGNMENT SUMBITTED TO MAM IREJ WAJID BY: UMRA SHAFQAT AHSAN FARAZ NEZAM ADNAN YOUSUF HIRA YASIN
  • 2. MANAGEMENT PROCESS OF LAUNCHING NEW PRODUCT OF APPLE INC. “Ipad 2”
  • 3. S. No. Description 1. Executive Summary 1.1 Conclusion on Internal Controls Page No. 01 02 2. Assignment Background 03 3. Scope of the Assignment 04 4. Concurrence of Report with the Management, Follow-up and Other matters 05 5. Detailed observations, audit recommendation and management action plans 06 6. Responsibility Statement 20 7. Appendices 21 21 Business Importance Code Appendix-I Appendix-II Committee of Sponsoring Organizations of the Tread way Commission (COSO) Categories 22
  • 4. EXECUTIVE SUMMARY We, the group, has been given topic “Management Process of Launching new Product of Apple Inc. IPAD2” as by our subject teacher Miss. Irej Wajid. During tour assignment, we have conducted an understanding of the existing business processes, procedures, plan of Apple inc. of launching their latest new product IPAD2 and detailed management process is submitted to the as under. We have performed our research on the IPAD2 launching management processes with the objective of evaluating the overall process for various functions and performed procedures as communicated by and in accordance with the guidance provided by our teacher. This report contains detail of Management process that we have identified while performing research along with their effects and belongings. The report has been discussed and agreed with the respective Group members. We analyzed the existing process to obtain a better understanding of the company’s management process for a better understating of our subject. Page 1 of 27
  • 5. INTRODUCTION OF APPLE INC. Apple Inc is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari internet browser; and iOS, a mobile operating system. As of August 2010, the company operates 301 retail stores in ten countries, and an online store where hardware and software products are sold. As of May 2010, Apple is one of the largest companies in the world and the most valuable technology company in the world, having surpassed Microsoft. Established: On April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007, to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Management of Apple: Ceo of Apple is Steve job he is also co-founder of apple. Other important member of Apple is Tim Cook (Chief Operating Officer ), Petter Oppenheimer (Senior Vice President and Chief Financial Officer ), Philip W.Schiller (Senior Vice President Worldwide Product Marketing). As of September 2010, Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide and had worldwide annual sales of $65.23 billion. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008, 2009, and 2010. Page 2 of 27
  • 6. VISION OF APPLE: “Man is the creator of change in this world. As such he should be above systems and Structures and not subordinate to them” MISSION OF APPLE: “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.” INTRODUCTION OF APPLE’S iPad : The iPad is a line of tablet computers designed, developed and marketed by Apple Inc. primarily as a platform for audio-visual media including books, periodicals, movies, music, games, and web content. Its size and weight falls between those of contemporary smartphones and laptop computers. The iPad runs the same operating system as the iPod Touch and iPhone— and can run its own applications as well as iPhone applications. Without modification, and with the exception of websites, it will only run programs approved by Apple and distributed via its online store. Like iPhone and iPod Touch, the iPad is controlled by a multitouch display—a departure from most previous tablet computers, which used a pressure-triggered stylus—as well as a virtual onscreen keyboard in lieu of a physical keyboard. The iPad uses a Wi-Fi data connection to browse the Internet, load and stream media, and install software. Some models also have a 3G wireless data connection which can connect to HSPA data networks. The device is managed and synced by iTunes on a personal computer via USB cable. Apple released the first iPad in April 2010, and sold 3 million of the devices in 80 days. During 2010, Apple sold 14.8 million iPads worldwide, representing 75 percent of tablet PC sales at the end of 2010. By the release of the iPad 2 in March 2011, more than 15 million iPads had been sold — more than all other tablet PCs combined. Page 3 of 27
  • 7. LAUNCHING AND SALES OF iPad : Apple released the first iPad in April 2010, and sold 3 million of the devices in 80 days. During 2010, Apple sold 14.8 million iPads worldwide, representing 75 percent of tablet PC sales at the end of 2010. By the release of the iPad 2 in March 2011, more than 15 million iPads had been sold — more than all other tablet PCs combined. The device was initially popular with 300,000 iPads being sold on their first day of availability. By May 3, 2010, Apple had sold a million iPads, this was in half the time it took Apple to sell the same number of original iPhones. During the October 18, 2010, Financial Conference Call, Steve Jobs announced that Apple had sold more iPads than Macs for the Fiscal Quarter. In total, Apple sold more than 15 million first generation iPads prior to the launch of the iPad 2. iPad 2 : Apple unveiled the iPad 2, the second generation of the device, at a March 2, 2011, press conference. About 33% thinner than its predecessor, the iPad 2 has a better processor, a dual core Apple A5 that Apple says is twice as fast as its predecessor for CPU operations and up to nine times as fast for GPU operations. It retains the original's 10-hour battery life and has a similar pricing scheme. The iPad 2 was released internationally in 25 other countries on March 25, 2011, iPad owners who bought a first-generation iPad directly from Apple within two weeks before the announcement are eligible for a $100 reimbursement from Apple. MISSION OF iPad 2: “iPad includes an amazing screen reader along with other innovative accessibility features that make it easier to use for those who are blind or have impaired vision.” VoiceOver : The same Voice Over screen reader available on iPhone comes standard on iPad. It’s the world’s first gesture-based screen reader, and it allows you to enjoy the fun and simplicity of iPad even if you can’t see the screen. With Voice Over, you use simple gestures to physically interact with items on the screen. Instead of memorizing key commands or repeatedly pressing arrow keys to find what you’re looking for, Page 4 of 27
  • 8. just touch the screen to hear an item’s description, then gesture with a double-tap, drag, or flick to control iPad. Because Voice Over on iPad allows you to interact directly with objects, you can understand their location and context. When you touch the upper-left corner of the screen, you hear what’s in the upper-left corner of a web page. And as you drag your finger around the screen, you learn what’s nearby, providing an unprecedented sense of relationship and context. Voice Over on iPad also gives you information about your device — including battery level, network signal level, and time of day. It even lets you know when the display changes to landscape or portrait orientation and when the screen is locked or unlocked. Adjustable speaking rate: The speaking rate in Voice Over is adjustable so you can set it to a speed that best suits you. Voice Over uses distinctive sound effects to alert you when an application opens, when the screen is updated, when a message dialog appears, and more. And when Voice Over is talking, the volume of background sounds and music is automatically lowered, “ducking” under the voice, so you can clearly hear what Voice Over is telling you Entering Text: When you’re typing text, such as an email message or a note, VoiceOver echoes each character on the keyboard as you touch it, then again to confirm your selection. You can also enable Touch Typing, which automatically enters the last character you hear when you lift your finger. You can even set VoiceOver to speak each completed word instead of — or in addition to — individual characters as you type them. Move the insertion point cursor left or right by flicking up or down within text. With VoiceOver, you can edit a word just as easily and precisely as you can type it in the first place Speak Auto-text: iPad suggests words before you finish typing them and automatically corrects words you might have misspelled. Speak Auto-text voices these suggestions so you can hear them when they’re presented. You can hear and accept suggestions without interrupting your typing. Speak Autotext can be enabled even when you’re not using VoiceOver or Zoom. ALSO; Page 5 of 27
  • 9. “iPad delivers a variety of innovative features that make it easier to use for those who are deaf or hard of hearing.” FaceTime: iPad 2 features Face Time video calling via Wi-Fi. Thanks to its high-quality video and fast frame rate, Face Time is ideal for those who communicate using sign language. You can clearly see both hand and finger gestures in detail, so you can communicate from afar with the same range of emotion as when you’re in the same room. You can use Face Time to place and receive video relay and text relay calls using services Closed Captioning: iPad supports the playback of open captions, closed captions, and subtitling. Captions appear onscreen, just like the closed captions you see on TV. You can buy or rent captioned movies from the iTunes Store and watch them on the go. You can also create your own movies with captions using a variety of tools and applications, including Compressor — one of the products in the Final Cut Studio production suite (sold separately) Visual Alerts: iPad can deliver visual alerts in addition to audio alerts. For example, you can enable visual alerts for calendar invitations as well as push notifications. Apps such as Mail and the App Store also display visual badges indicating the number of unread messages and updates available. And important status information such as network connectivity, time of day, and battery level are communicated visually on the screen at all times. “iPad includes a variety of innovative features that make it more accessible to users with impaired physical or motor skills.” Also that Apple iPad provides the combination of laptop and smart phone which is very attractive to the consumers. VISION OF iPad 2: Vision of iPad was explained by Steve Jobs himself when he announced the launching of new product od Apple i.e iPad Steve Jobs starting talking about the philosophy the company has when designing new iPads (and other products for that matter). He said: Page 6 of 27
  • 10. “It’s in Apple’s DNA that technology alone is not enough. That it’s technology married with liberal arts, married with the humanities that yields us the result that makes our heart sing.” Apple is all about the user experience. While others in the tablet market are focused on saying their technical specs are better, Apple looks at what technical needs meet the requirements for their promised user experience. It’s not about how fast the processer is or how big the screen is. In this “post-PC” era, Jobs says the competitors are looking at tablets like they did PCs—and not as a new product. When speaking about what his competitors are doing, he says, “Our experience and every bone in our body says that is not the right approach to that.” The language Steve Jobs uses is laced with vision. It’s unique to the industry. It would be easy for a company to say, “The way we’ll win is to be bigger and faster.” That’s what worked for PCs. But that doesn’t equal a great tablet product. Specs without a unique vision of how the end-user experiences the product will get you nowhere. Instead it leaves companies realizing they’re falling behind and they end up trying to just copy Apple. By then, Apple has moved forward to the next thing. I think there are a lot of similarities here to local churches. It’s easy to look at church down the street and try to copy what’s working for them. If they have a successful youth ministry, we’re going to do the same thing. Or maybe we’ll even do it bigger. But while you’re copying them, they’re moving on to the next innovation for their ministry. You can use the same analogy for worship services. It’s easy to take the big churches contemporary service and add a few more lights or guitars to yours, but are you really being true to your DNA? Be like Apple. Do what makes sense for you. Innovate your own products and ministries. When you’re true to who you are, you’ll find far more success than being a copycat. HARDWARE CONFIGURATION: Developer: Apple Inc. Manufacturer: Foxconn (on contract) Type: Tablet media player/PC Release date: Wi-Fi model (U.S.): April 3, 2010 Wi-Fi + 3G Model (U.S.): April 30, 2010 International: May 28, 2010 Page 7 of 27
  • 11. iPad 2 (U.S.): March 11, 2011 iPad 2 (international): March 25, 2011 Units sold: 15 million (as of 2 March 2011 Operating system: iOS 4.3.2 Released April 14, 2011; Power: Built-in rechargeable Li-ion battery 25 W·h (90 kJ) CPU: 1st Generation 1 GHz Apple A4 2nd Generation 1 GHz Apple A5 Storage capacity: 16, 32, or 64 GB flash memory Memory: 1st Generation 256 MB DDR RAM 2nd generation 512 MB DDR2 RAM Display: 1024 × 768 px 132 PPI 4:3 aspect ratio 9.7 in (25 cm) diagonal XGA, LED-backlit IPS LCD Graphics: 1st generation PowerVR SGX 535 GPU 2nd generation PowerVR SGX543MP (cores: 2–4)[citation needed] Input: Multi-touch touch screen, headset controls, proximity and ambient light sensors, 3-axis accelerometer, digital compass 2nd Generation adds: 3-axis gyro Came nra: 1st Generation: None 2nd Generation: Front-facing and 720p rear-facing Connectivity: Wi-Fi (802.11 a/b/g/n) Bluetooth 2.1 + EDR GSM models also include: UMTS / HSDPA (850, 1900, 2100 MHz) GSM / EDGE (850, 900, 1800, 1900 MHz) CDMA model also includes: CDMA/EV-DO Rev. A (800, 1900 MHz) Online services: iTunes Store, App Store, MobileMe, iBookstore Page 8 of 27
  • 12. Dimensions: 1st generation 9.56 in (243 mm) (h) 7.47 in (190 mm) (w) .5 in (13 mm) (d) 2nd generation 9.5 in (240 mm) (h) 7.31 in (186 mm) (w) .34 in (8.6 mm) (d) Weight: Wi-Fi model: 1.5 lb (680 g) Wi-Fi + 3G model: 1.6 lb (730 g) 2nd Generation: 1.33 lb (600 g) Technical specifications: Page 9 of 27
  • 13. MANAGEMENT PROCESS Page 10 of 27
  • 14. Human Resource Management Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. The company has also received widespread criticism for its contractors' labor, environmental, and business practices Right man for right job: For this project HR management hire specialist person and they give a brief description to what is done, why it is done, where it is done, and how it is done. The description of the job is done by elaborating the tasks to be performed, equipment to be used, the working conditions and the performance standards. According to Stone: “A good job description should elucidate and focus on the job and the position and not on any particular individual that fills that position”. Qualifications for this product: • At least 4 years of project management in software development. • Outstanding communication and presentation skills, written and verbal, at multiple levels of the organization. • Ability to participate in and possibly facilitate requirements brainstorming sessions. • Strong technical proficiency: server architecture and development, SQL, and bonus for past programming experience. • E-Commerce and business experience: orders, billing, tax, payments, invoicing, royalties, licensing, etc. • Digital media experience, SAP integration experience. (Apple Inc. 2009) Advertisements : Advertising is a prominent source to build a pool of Candidates: • Print media – Newspapers: State, national or local; Other: specialist magazines/journals • Other media – radio, television • Decisions must be made as to which media to use and how the advertisement should be designed to target suitable applicants Committee/Face to Face Interviews: The interview includes questions that are relevant to the job under focus. The interviewing panel members have to fill the interview evaluation form for each applicant interviewed which is submitted to the Human Resource department. The COO reviews the search committee for all Page 11 of 27
  • 15. new hires for Project manager level. Medical Examinations: The applicant must endure a fitness assessment test. Often, the job is offered to an applicant only once it has been confirmed that he is physically stable and enjoys good health after having taken the test. The physical examination/test is done for following purposes: • To detect if individual is carrying any infectious disease. • Determines whether the applicant is fit to perform work. • Determines if there are certain physical capabilities, which differentiate successful and less successful employees. • Medical check-up protects the applicant from undertaking work that would be hazardous to his health TRAINING PROGRAM FOR THIS PROJECT: Apple provide training program for the new employe which provides a planned introduction of the job, organization and the environment. It is a quintessential part of recruitment as it provides familiarity with the roles and responsibilities within the rules and norms of the Apple’s culture. Induction programs have been found to contribute to improved socialization and to increase organizational commitment. Helps to reduce new employees’ stress levels and assist them to settle into their new role more quickly. Apple uses the buddy system – a method of linking every new employee with an existing employee who then assists them to settle into the workplace Determining Pay rate: • Salary Surveys - Government and commercial salary surveys can provide useful information • Job evaluation - Determines ‘worth’ or ‘value’ of job through systematic comparison of one job relative to another • Grouping jobs into pay grades - After determining the relative worth of each job, jobs are grouped into pay grades. A pay grade is made up on jobs of approximately equal difficulty or importance • Pricing each pay grade - Pay rates are assigned to each pay grade Remuneration plans at Apple are built on four principles: • Salary • Trust • Few classifications • Pay-for-performance (PFP) Apple has one of the most well balanced remuneration policies in the corporate world today. They have been well established as an employees` company, where good salary packages, Page 12 of 27
  • 16. insurance and a well structured superannuation program have established it as a fair and balanced organization for its employees. Remuneration comprises of reserve procuring schemes, 401k and adjustable and formative health and wellness schemes. Furthermore, apple allows its staff member’s rebates on its commodities, along with incentives such as paid vacation schemes, and other education – related alternatives. Rationale behind Apple`s Compensation Program • Engage and absorb the coveted class and combination of staff workers. • Encourage their staff to enhance their efficiency and efforts in a steady manner. • Strengthen the establishment’s strategic standards and principals and the coveted system of operating within the establishment. • To be just and unbiased towards its staff members. • Offer customary and periodic reimbursement and efficiency audits. Marketing management In launching a IPAD 2 Apple is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Structure used by Apple for marketing Traditionally, marketing analysis was structured into three areas: Customer analysis, Company analysis, and Competitor analysis. But for launching IPAD2 they structured marketing analysis into five areas: Customer analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context. Customer analysis: In Customer analysis Apple’s marketing manager divide market into various constituent groups of customers, which are called customer segments or market segmentation's. Marketing managers work to develop detailed profiles of each segment, focusing on any number of variables that may differ among the segments: Each segments behavioral, needs-benefit, and other factors may all be examined. Company analysis: Before launching Apple focus on understanding the company's cost structure and cost position relative to competitors.Marketing managers may also work with the accounting department to analyze the profit of the firm is generating from various product and customer accounts. The company may also conduct periodic brand audit to assess the strength of its brands. Collaborators analysis: Page 13 of 27
  • 17. Apple collaborators may also be profiled, which includes various suppliers, distributors and other channel partners, joint venture partners, and others. Competitive strategy: Marketing management employs various tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter five forces, analysis of strategy of competitors, and others. Competitor analysis: Apple’s Management critically analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive position and other factors. Apple’s marketing management invest in research to collect the data required to perform accurate marketing analysis. The configuration of ipad2 is also result to that research. Marketing strategy Apple has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. So Apple target costumer is youth, blind and deaf people because the segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive, or other factors. And Apple meet their needs better than the competitor, and can do so profitably. In fact, a commonly cited definition of marketing is simply "meeting needs profitably." The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, nontargeted customers. Implementation planning After strategic objectives have been identified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing: Product management, Pricing (at what price slot do you position your product, for e-g low, medium or high price), Place (the place/area where you are Page 14 of 27
  • 18. going to be selling your products, it could be local, regional, country wide or International) (i.e. sales and distribution channels), and People but Apple use one more P which is Politics which affects marketing in a significant way. Marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans includes: • • An executive summary Situation analysis to summarize facts and insights gained from market research and marketing analysis • The company's mission statement or long-term strategic vision • A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives • The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved • Implementation choices for each element of the marketing mix (the 4(5)Ps) Advertisement Marketing management may spend a fair amount of time building or maintaining a marketing orientation for the business. Achieving a market orientation, also known as "customer focus" or the "marketing concept", requires building consensus at the senior management level and then driving customer focus down into the organization. Cultural barriers may exist in a given business unit or functional area that the marketing manager must address in order to achieve this goal. Additionally, marketing executives often act as a "brand champion" and work to enforce corporate identity standards across the enterprise. As Apple mnemonic is “Think different” which they use as a weapon to attract people. Their slogan is if you want to be different and unique then use Ipad (Apple’s product). They use Internet, print and television media for advertisement. They give advertisement in youtube, google, Time’s of America and many other channels. Reporting, measurement, feedback and control systems Page 15 of 27
  • 19. Marketing management employs a variety of metrics to measure progress against objectives. It is the responsibility of marketing managers – in the marketing department or elsewhere – to ensure that the execution of marketing programs achieves the desired objectives and does so in a costefficient manner. Apple’s marketing management use of various organizational control systems, such as sales forecasts, sales force and reseller incentive programs, sales force management systems, and customer relationship management tools (CRM). Measuring the return on investment (ROI) and marketing effectiveness various marketing initiatives is a significant problem for marketing management. Various market research, accounting and financial tools are used to help estimate the ROI of marketing investments. Brand valuation, A[[le identify the percentage of a company's market value that is generated by the company's brands, and thereby estimate the financial value of specific investments in brand equity. Another technique, integrated marketing communications (IMC), is a CRM databasedriven approach that attempts to estimate the value of marketing mix executions based on the changes in customer behavior these executions generate. LAUNCHING AND SALES OF iPad 2 The device was initially popular with 300,000 iPads being sold on their first day of availability. By May 3, 2010, Apple had sold a million iPads, this was in half the time it took Apple to sell the same number of original iPhones. During the October 18, 2010, Financial Conference Call, Steve Jobs announced that Apple had sold more iPads than Macs for the Fiscal Quarter. In total, Apple sold more than 15 million first generation iPads as compare to iPad 2. Survey as a feedback According to Survey; 40% of iPAD purchase by Youngster (10-30yrs) and 8% of iPAD purchase by blind and deaf peoples. These figures show the compatibility of Apple’s marketing management. Finance Management Page 16 of 27
  • 20. As any other business Apples finance management’s objectives: • Create wealth for the business • Generate cash, and • Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested. (1) Financial Planning: Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales made on credit. In pad 2 company needs a huge amount of investment so finance management first investigate the company productivity capacity. Following are the element that the Apple’s finance management must consider before any new project: Budgeting: No matter what Apple’s income level is their financial management considered the merits of implementing a household budget. In general, a realistic budget will help you control where you are spending your hard-earned dollars and allow you to make informed decisions on how to control your spending habits. They known a successful budget always includes a line item for savings so they can achieve both their short- and long-term goals and attain financial independence. So for this project (ipad 2) they prepare the budget of 8 millions dollars. Insurance: Insurance is all about protecting yourself from risk. Virtually all of your household belongings, as well as your salary and your health, can be insured. For this project they insured their employee’s salary and their health and also any metarial which include in their project. An Apple financial insurance plan should take into account how much the lack of insurance might risk their personal situation. Before this project Apple analyze financial situation and obtain the most coverage possible for the least amount of premium possible. Tax: Apple’s Management like any other management cut their taxes and shelter their income from taxes. Many of apple’s financial planning strategies come with tax implications. While they Page 17 of 27
  • 21. cannot eliminate taxes from their business, They can make informed financial decisions so they only pay the taxes which they have to pay and no more. (2) Financial Control: Financial control of Apple’s financial management is a critically important activity to help their business to ensure that the business is meeting its objectives. Financial control addresses questions such as: • Are assets being used efficiently? • Are the businesses assets secure? • Do management act in the best interest of shareholders and in accordance with business rules? Nature of control : It regulates the project activities so that some targeted element of performance remains within acceptable limits. Provides organizations with indications of how well they are performing in relation to their goals. Provides a mechanism for adjusting performance to keep organizations moving in the right direction Area’s of financial control: Physical resources: They control inventory management, quality control, and equipment control which are used in this project. Financial resources: They managing capital funds and cash flow, collection and payment of debts and all other finance resources which are used in this project. (3) Financial Decision-making: The key aspects of financial decision-making relate to investment, financing and dividends. Apple’s finance management was considered that how much share to be issued for this project Page 18 of 27
  • 22. and they also consider that bond or other debt sources is better than issuance of share or not. So for this project they decide and issue 200000 shares. After the launching of iPAD2 Apple’s shares increase by $4.80 per share.Yet to be a year since the launch of the iPad it nearly doubled in sales between Q4 2010 and Q1 2011, going from 4.19 million sales to 7.33 million sales. No doubt, like iPods, the iPad was highly popular for Christmas presents. Cost On The Manufacturing of iPad 2: You’re paying at least $499 for the iPad, but what’s the actual cost of its parts? According to analytics company iSuppli, approximately half of that amount. iSuppli estimates that the total cost of iPad WiFi (not the 3G-enabled model, which will be arriving to the market later this month) is $259.60. As far as individual parts go, the iPad’s touchscreen costs $95, the aluminum back casing costs $10.50 and the processor costs $26.80. The flash memory, supplied by Samsung, costs about $29.50. The A4 chip which powers the iPad, and designed by Apple's PA Semi subsidiary, should cost about $19.50. According to iSuppli, the $21 battery knits together two cells into a single pack, suggesting that it could be replaced. For comparison, the $699 version of the iPad 2 costs $348.10 to manufacture, also roughly half of the retail price. Since the iPad iSuppli analyzed does not contain an integrated 3G module, the cost of that chip has also been excluded. These numbers reveal a little more about how much money Apple makes from the sales of its devices. The biggest product-related gain was after the iPhone was introduced in 2007. Shares gained 41.1 percent between that day and when it was officially launched because it was viewed as revolutionary. The iPad sequel is not expected to make such a splash. "There tends to be a 'sell the news' reaction after this kind of event," said Michael Quigley, a technology analyst at Wedgewood Partners in St. Louis. "But as we get estimates on demand, it usually ends up being much more optimistic than people were betting. We're expecting it to rally." Shares of Apple were lately down $2.61, or 0.8 percent, to $350.60. The stock is up 8.7 percent in 2011 and has gained 314 percent in the last five years. Page 19 of 27
  • 23. Financial Analysis By ZACKS After Releasing The iPad 2: Zacks is the investment research company. After launching the much-hyped tablet computer, iPad, on April 3, 2010 in the U.S., Apple Inc. (NasdaqGS: AAPL - News) introduced iPad 2, its second generation tablet computer with additional features. Despite the buzz about the new iPad, the company’s shares rose a modest 0.8% or $2.81 per share and closed at $352.12. Overall, Apple’s earnings performance has been way above expectations. Over the last four quarters, Apple surpassed the Zacks Consensus Estimate by 21.3%. The outlook for Mac, iPad and iPhone remains optimistic, backed by domestic and international demand, boding well for Apple's revenues and earnings. The current Zacks Consensus Estimate calls for $5.26 per share in earnings for the second quarter of 2011 since it is expected to be shipped in March. The current Zacks Consensus Estimate for 2011 is $23.00 per share in earnings, which is an increase of 51.8% from 2010. We remain optimistic on Apple’s ability to post stronger results in 2011, driven by an increased demand for iPad and iPhones. iPhone and iPad distribution will help Apple reach new heights. With the introduction of iPad 2, we believe the company’s long-term growth story becomes more visible. Page 20 of 27
  • 24. Conclusion: The results are that Consumers Reports found that the Apple iPad 2 that comes with both Wi-Fi and 3G [32G] garnered the best rating of excellent in almost every category in which it was tested. But what was really surprising is that the first generation of the Apple iPad priced at $580 compared equally with the newer Motorola Xoom, which has a price tag of nearly $800. So while some would have us believe that the competition is catching up to Apple, the real world results seem to differ from that opinion. Page 21 of 27
  • 25. DISCUSSION: Starting with management: the Apples human resource For this project They hire a right person for the right job. They give advertisement .The advertisement was design to target suitable applicant. They also design the qualification criteria. So its important that applicant’s qualification must meet with apples qualification requirement for this project. They also conduct interview to select the right person for this project. They also take medical checkup of the applicant. They also provide training program for this project for the new employee and aim of this program is to provide a employee detail introduction about their job. The role of Apple marketing management Before launching ipad 2 Apple marketing management focus on understanding the company's cost structure and cost position relative to competitors. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive position and other factors. Marketing management develop a marketing strategy designed to maximize the revenues and profits of the firm. Marketing management develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. Page 22 of 27
  • 26. Apple’s marketing management use Internet, print and television media for advertisement of ipad2. They give advertisement of ipad2 in youtube, google, Time’s of America and many other channels. After discussing marketing management of Apple we disccuss about their finance department and their role on launching ipad2. Fisrt of all their aim is to generate wealth and create cash for the Apple. For this project finance management ensure that enough funding or capital is available to meet the need of this project. Financial control of Apple’s financial management help their business to ensure that the business is meeting its objectives.they need to ensure that either their assets are secure and using efficiently.Do the management act in interest of shareholder. They managing capital funds and cash flow, collection and payment of debts and all other finance resources which are used in this project. Apple’s finance management was considered that how much share to be issued for this project and they also consider that bond or other debt sources is better than issuance of share or not. So for this project they decide and issue 200000 shares. Page 23 of 27

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