Impact Of Business Economic Thought And Financial Techniques On Apple Plc

Apple Plc’s Strategies and Policies

This business report describes about the business economic thought which has been deliberated and has been investigated that how these perception could be exploited to make the major changes into the business by implementing many new strategies and policies. This report has been prepared to study over the Apple plc. Apple plc has implemented many policy & strategies which are correlated with the government, state’s economy and delivering situation. Apple public limited company offers the best commendable and qualitative services and products to its clients in the global marketplace to operate with a position to enlarge its sales turnover. Additionally, this business report describes about the strategies, policies and political plans etc which is occupied into prudence for dominant the political and accounting flow in a fastidious economic place.

It has been found that a company is correlated with a lot of complicated activities always. These activities take place at the time of performing the functions and strategies to achieve the objectives and goals. It is a common saying that every profitable organization has a main motto to enhance the profits and achieve the goals of the company (Brigham, and Ehrhardt, 2013).

Apple is a global company which has its operation in almost entire world. It is primarily situated at California. This company deal with many electrical items such as mobile phones, laptops etc with its clients through its online and offline stores. The main completive pros of apple plc are its best product in terms of quality and the technology used by it in its products is also a pros for the company. By conducting an analysis over the industry, it has been established that a gigantic investment is essential for a firm to enter into electrical industry as the new firm would be required high technology and high professional engineers (Fernandes and Netemeyer, 2014). So it has been found that it is quite easy for Apple plc to supervise the economical advantage. Apple has upgraded its invention timely and it has also launched a lot of high tech products and services in the market. Additionally, this company only focuses over its premium clients and it collisions over the financial scale of the corporation. For an instance, apple plc’s products like I phone and Mac Book has been performed unexpectedly awesome in the marketplace and this company has also managed a huge image in the business.

This case describes the user about the demand and supply conception. Fuel and diesel products have been taken into reflection for getting the knowledge about the demand and supply law in a better manner. Demand & supply law has been studied and it has been found that the meticulous product’s demand might be bigger with the enhancement of a subsidiary product’s price. It has been analyzed that fuel price has been condensed by 2.4P consequently, the price was 118.7/p in the last year and whereas, it has been also noted that diesel price also has been improved to 3.1 p whereas the price was 120.5/p in last year (Odell, 2014).

Demand and Supply Law

Thus, it has been found that a product or a service’s unleaded prices are based on copious gulp factors. Through it, it has been found as an outcome that the prices of diesel has been grasp up on the political, economic and financial policies which had been administered by the administers. For an instance, monetary policy describe that if administration needs to formulate a control over currency flow in international market then it could enhance the products turnover in the industry and this would also make an impact over the customers base. Additionally, it has been found that the diesel prices and fuel prices are openly based upon a lot of alternative services and products that have been traded in international market like fuel and diesel. The price of diesel has also been dappled on global level to nation’s level with the diesel and fuel supply (Airaudo, Nisticò, and Zanna, 2015). 

It has been analyzed that a country’s economy development and the welfare of the society largely depends over the country’s policies and its rules and regulations. It has been investigated that evaluating techniques which have been used by the state with the assistance of central bank also impacts over the country’s economy development and the welfare of the society. It has been studied through a article that monetary policy and fiscal policy of a country creates a large collision over the Gross domestic product, GDI, economic growth, international expansion, foreign direct investment etc. for example if the government of a state creates a new policy to develop the jobs in the state than for sure, there would be large opportunities for the FDIs to enter into the international market and invest the amount in that state (Lütkepohl, and Netšunajev, 2014). Additionally, government would also present many opportunities, subsidiaries etc to the industry to enhance the job opportunities and community welfare.

Conclusion

Thus it could be said through the above study, it could be thought that strategic plans, government interrelation, political situation etc make an impact over the company’s performance directly or indirectly and also assists the company for its market growth. Still, the strategies made by the organizations should be made after analyzing entire factors. 

The report describes the user about numerous techniques of investment appraisal and their implementation, significances of capital budgeting techniques, financial techniques etc that are managed and further, and financial conception that assists the administrator to make decision about the financial condition of the company (Reifschneider, Wascher and Wilcox, 2013). After analyzing an investigation over this case study, it has been analyzed that if financial forecaster and government act upon a recital in very successful manner then it could help the business to improve its business operations and the profit of firm would also increase due to the assistance.

Country’s Economy Development

Financial development is a crucial topic for every organization as without the funds, company could not run its business functioning smoothly. Finance helps a business to meet its entire objectives and goals. It has been researched that economy and financial condition is the main step for every company as this is the man factor to achieve the goals of the company. Financial factors are managed by the finance manager of the company. If the finance manager of the company does not take much concern about entire financial factors, tools and techniques etc then it becomes tough for the organization to survive and achieve th goals. Financial tools and techniques contains capital budgeting planning, plan for raise the funds, investment appraisal techniques etc. these techniques assist the financial manager to make better decision about the improvement and growth of the business.

The above described tools and techniques help the manager in different situation such as capital budgeting is helpful at the time of choosing one best project out of numerous projects (Borio, 2014). Further, it has been analyzed that if the finance manager do not have good knowledge about the financial tools and techniques than it become tough for the company to manage the funds and it enhances the extra cost of the company. If the techniques are used by the manager in a better manner than it would be helpful for the company to manage the funds and enhance the growth of the company. Additionally, it has been studied that these financial and accounting factors does not only help the company to raise the funds but also assist the company to make better decisions about cost reduction and meeting the goals of the company (Ruddik, 2015). If the techniques are used by the manager in a better manner than it would be helpful for the company to manage the funds and enhance the growth of the company (Bandy, 2013). Such as if a company is facing an issue to choose a project from 3 projects than company could use the techniques of capital budgeting to choose the best project.

Conclusion

Thus it could be said that many tools and techniques of finance. Capital budgeting, planning of finance etc. aids the managers of finance department to identify all the aspects that might implement some modifications into the finance growth and availability in the operations of a firm. More, it has been studied that if administers could obtain their own estimation then which alternative of plan would make revenue and cash inflow for the company after that this could also enhance the other financial aspects of the company.   

Financial Development

In this study it has been found that it is mandatory for a firm to assess every financial aspect to take a better decision regarding growth and financial performance of the company. Tesco plc has been taken into consideration to analyze the growth and financial performance of the company. It is mandatory for every firm to administer its both the financial and non financial factor to enhance the performance, market and growth of the company. For analyzing the performance, Ratio analysis, capital budgeting, analysis of final statements are few techniques that aids the company to investigate over the performance of the company.

Tesco plc is operating its business in Australian market and it is in top retailing companies of Australia. This company has its business functioning in many other countries as well. This company operates its business in grocery commodities. Currently, headquarter of the company is in UK (Ahrendsen, & Katchova, 2012).

In this report, financial performance has been conducted over the Tesco Plc. For analyzing the financial performance of the company, 5 years data has been taken into consideration. A negative slope has been found from last 4 years in the operations of the company. It has been found that even in bad market, company has managed to perform well.

Liquidity ratio depict about the capability of Tesco plc to meet all its current obligation (Grinblatt, and Titman, 2016).

(Wood, Wrigley, and Coe, 2016)

Investigation over the Tesco’s liquidity position, depict that the liquidity condition of the company has been changed. In 2013, the current ratio of the company was lower which has been increased to 0.75 in 2015. Consequently, the competitive firm (Morrison plc) has also been analyzed and found that this company is enjoying the unvarying current ratio from last 4 years. Earlier, company has a current ratio of 0.56 in 2013 which has been lowered to .48 in 2016 due to alteration in the current liabilities (Jaumotte, Lall, and Papageorgiou, 2013)

Profitability ratios depict about the profit performance of the company. Investigation  over the Tesco’s profitability position, it has been founded that profitability of the company has been lowered. Entire profits of the company has been deducted such as operating profit of 3.75% in 2013 has been lowered to 1.95% in 2015 due to many internal factors. Further, the net profit of the company in 2013 was 0.0030 which has been lowered to 0.0020 in 2016. ROCE of the company has also been analyzed and found that it has become 0. Consequently, Morrison plc has not faced any internal issues and this company is enjoying a great profitability state in last 4 years (Morrisons plc, 2016). Net profit ratio of the company also depict about the good performance of the company (Gambacorta, and Signoretti, 2014).

Solvency ratio describes the user about the loans, equlity, capital, debt etc about the company. For conducting the solvency ratio over the company, following ratios has been calculated of the company: capital structure ratio, interest coverage ratio and debt equity ratio.

This above table depict that solvency position of the company has been bad from last years. Its solvency is not like before. Interest coverage ratio of 4.08 has been supposed by the firm in 2013 which has been improved to 2.10 in 2015. Consequently, competitive company which is Morrison plc has conserved a good interest coverage ratio worth of 1.48 in 2016 (Lee and Epstein, 2012). A bad solvency position has also been found through capital structure of the company. 

Efficiency ratio depicts the user about the efficiency of the company (Kurov and Stan, 2016). It has been analyzed through the study that capitalization condition of the company is not like before. Debtors turnover ratio has been held 26.78 by the company in 2013 that has been increased to 10.06 in 2016. 

Working capital analysis over Morrison Plc

In this situation, Garry may be capable to obtain $ 2154.83, if this investment would be done by him.

Through this investigation, it has been outcome that project A is a better choice due to its high net present value.

Conclusion

Through a financial performance investigation over Tesco, it has been analyzed that the condition of the company is not strong and company is facing huge complication due to many internal and external factor. 

References

Ahrendsen, B.L. & Katchova, A.L. 2012, “Financial ratio analysis using ARMS data”, Agricultural Finance Review, vol. 72, no. 2, pp. 262-272.

Airaudo, M., Nisticò, S. and Zanna, L.F., 2015. Learning, monetary policy, and asset prices. Journal of Money, Credit and Banking, 47(7), pp.1273-1307.

Bandy, G. 2013. Financial management and accounting in the public sector. Oxon: Routledge.

Borio, C., 2014. The financial cycle and macroeconomics: What have we learnt?. Journal of Banking & Finance, 45, pp.182-198.

Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory & practice. Cengage Learning.

Fernandes, D., Lynch Jr, J.G. and Netemeyer, R.G., 2014. Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), pp.1861-1883.

Galí, J., 2015. Monetary policy, inflation, and the business cycle: an introduction to the new Keynesian framework and its applications. Princeton University Press.

Gambacorta, L. and Signoretti, F.M., 2014. Should monetary policy lean against the wind?: An analysis based on a DSGE model with banking. Journal of Economic Dynamics and Control, 43, pp.146-174.

Grinblatt, M. and Titman, S., 2016. Financial markets & corporate strategy.

Jaumotte, F., Lall, S. and Papageorgiou, C., 2013. Rising income inequality: technology, or trade and financial globalization?. IMF Economic Review, 61(2), pp.271-309.

Kiran, R. S., & Singh, V. K. 2014. How to make the financial analysis an easy task – A comparative analysis between the traditional and the modern approach? International Journal of Engineering Research and Applications, 4(8), 61-66.

Kurov, A. and Stan, R., 2016. Monetary Policy Uncertainty and the Market Reaction to Macroeconomic News: Evidence from the Taper Tantrum.

Lee, J.Y. and Epstein, M.J. 2012.Advances in management accounting. Bingley: Emerald Group Publishing.Edwards, J.R. 2013. A history of financial accounting. New York: Routledge.

Lütkepohl, H. and Netšunajev, A., 2014. Disentangling demand and supply shocks in the crude oil market: How to check sign restrictions in structural VARs. Journal of Applied Econometrics, 29(3), pp.479-496.

Morrisons PLC. 2016. Company History. [Online]. Available at: https://www.morrisons-corporate.com/about-us/company-history/ [Accessed on: 21^st March 2017].

Odell, J.S., 2014. US international monetary policy: Markets, power, and ideas as sources of change. Princeton University Press.

Reifschneider, D., Wascher, W. and Wilcox, D.W., 2013. Aggregate supply in the United States: recent developments and implications for the conduct of monetary policy.

Ruddik, G, 2015, Morrisons grows market share for first time since 2011, The telegraph Retrieved from,https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11708744/Morrisons-grows-market-share-for-first-time-since-2011.html

Wood, S., Wrigley, N. and Coe, N.M., 2016. Capital discipline and financial market relations in retail globalization: insights from the case of Tesco plc. Journal of Economic Geography, 17(1), pp.31-57.

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