Define the Problem
Jessica Grant, an analyst for a money management organization called BXE Capital, is analyzing Apple Inc., a vital investment for the organization. Jessica reviews Apple’s supply chain to gather information on the company performance consequently determining if BXE Capital should maintain its Apple shares.
List any outside concepts that can be applied
Analysis of Apple fiscal records and the company’s supply chain based on product segmentation information provides findings on the necessary changes, if any, that BXE should implement on their portfolio.
List relevant qualitative data
Business observers, following the slump in the company’s stock value, became doubtful that the company would successfully introduce a new product in the market. This conclusion was evident despite the CEO, Tim Cook reassuring investors of the opposite especially after the demise of Steve Jobs.
List relevant quantitative data
Apple in February 2014 had $160 billion in liquid funds stemming from its evolutionary supply chain (Johnson and Mark 1). This commercial success of Apple Inc. notwithstanding; its stock value reduced by 25% from $700 in 2012 to the tune of $524.47 on 28 February 2014 (Johnson and Mark 1).
Describe the results of your analysis
Tim Cook was yet to oversee the launch of a new product by Apple. Despite Cook successfully running the iPhone and iPad product segments that at the time were generating huge profits, investors had high doubts about Apple’s future without Steve Jobs at the helm of a product launch. Jessica also shares this view especially from the concern that Apple’s products inevitably would become more sophisticated with the passage of time.
Describe alternative actions
Apple to earn the confidence of investors should have used the stock split strategy. A two-for-one split would result in a drop in share value by half while also doubling a holders share by two. This approach does not affect the company market value but instead raises investors’ dividends while similarly enabling investors with small shares trade easily.
Work Cited
Johnson, Fraser P and Ken Mark." Apple Inc.: Managing A Global Supply Chain." (2014): 1-21. Print.
