Project Financial

Running Head: FINANCIAL MANAGEMENT 1

FINANCIAL MANAGEMENT 7

Financial Management

Keenya Davis

SouthUniversity

Finance Statement Project

In the account of material and literature review, from the year 2017 to 2020 the combined financial accounts of Apple Inc. its financial condition and compliance ended with standards as widely reported by the US. The company showed a fall in its economic strength and profit ratios. Therefore, the company's profit ratio decreases over the last three years while the liquidity decreased by the end. In the contrast, Microsoft efficiently retained their financial levels. The company has efficiently met the high level of commitment and is not at risk of debt owing to its total high capital and current status. To perform its duties Microsoft is proactive and focuses on its policies to guarantee a high level of ethics and commitments. The cooperate partnership, turnover, firm's assets, etc. have indicated Microsoft as a more promising firm as compared to Apple Inc. (Microsoft, 2020).

MILAN-MAY 2020 is the new five-year investment programmed of Microsoft that includes financing in technology, cloud service, digital marketing, and new sustainability planning. Microsoft is ready to invest 1.5 billion dollars in Italy.it is to introduce its first data center region to the country. Empowering people and communities to support economic growth aim the plan “Ambizione Italia #DigitalResatart" at creating new opportunities. Microsoft will launch new programs that will be based on smart working, accelerating business, digital skilling, and expansion of the partnership. This plan is a major milestone to deliver economic support. Microsoft is planning to buy tik-to as it’s a new market social trend these days. According to the filing, Microsoft has made a total of 15 acquisitions for almost 2.4 billion dollars in its 2020 fiscal state (Hong & Park, 2020).

Looking at recent development going on in technology, APPLE Inc. is planning to introduce electric vehicles with an advanced battery system that might also have self-driving capabilities. The production aimed to start by 2024. If they succeed; it would challenge the industries like Tesla. The second important project they are working on is a redesign of MacBook Pro and MacBook Air with key features like mini-LED and the M1 semiconductor chip. They are pipelined to be revealed by 2021.apple has announced that the small app developers will see the standard commission cut in half by Jan 2021, from 30% to 15%.

The rivalry between Microsoft and Apple is a debate of the time. At Apple, they focus on one-size-fits-all on the other hand Microsoft has over 100 windows applications marketed. Therefore, Apple limits its choices while Microsoft multiplies those (Sena & Olsen, 2014). The studies of comparison between the two companies define the business results of the two. Microsoft has reduced their use of GBC practices has cost Microsoft over $2 billion in losses by a change of their leadership and proliferation strategies while the use of GBC practice has improved investment and finance in APPLE. The release and success of Macintosh, instead of fanatic discipline, Pixar, etc. have improved the business at Apple. Apple's market capitalization has raised by $341.5 billion. Although it hit back after some years still it earned a lot to the company, but it created a mark by transforming the company into a complete ruler of the digital world. Therefore, in the end, Microsoft was $214.3 million while apple was standing at worth $346.7 billion (Chaparro et al., 2013). Strategically they ignore each other in the market and design their business plans but still, the flicker of rivalry exists. Apple has won over its position in phones and tablets yet Microsoft can still rely on its sheer of 1.5 billion.

Microsoft generates revenue by offering a wide range of services to people. They do best in designing, marketing, and selling. Cloud-based services have raised well in the recent past. The commercial cloud revenue from LinkedIn, Microsoft dynamic office 365, azure, and other commercial clouds have raised to 43% to $38.1 billion. The commercial growth has gone up to 33%. Office consumer revenue has now increased up to 7% while the consumer subscribers have gone up to 34.8 million. Thus Microsoft instead of some failing policies is still just doing very well to compete with its competitors in the market. Their revenues and capitalization is growing fast. The market around the globe is interested in making investments and collaborate with the company. The company states that its revenue was record-breaking in 2019. They delivered $125 billion, $43 in operational income while 50 billion dollars in cash flow. Stakeholders were returned about 30 billion dollars. The commercial cloud business of Microsoft is the largest in the world surpassing 38 billion dollars in revenue generation. They are facilitating everyone, in all fields like customers, educationist, businesspersons, and 2 billion first-line workers (Warner, 2019).

Apple hit low due to pandemics across the world but it has now again regained its post. Now at near $470 per share. Apple is confronting all others in the market including Microsoft, amazon google, etc. apple is the first brand to reach a $1 trillion trading cap over just 2 years. Apple has even bleated Saudi state oil giant Aramco to reach the richest trading company.

Microsoft's market strategies are based on "enterprise business" the cloud sticking with customers. They tend to make themselves an essential part of a human routine and mind while Apple is functioning on a "cooperate level" strategy with its competitors. They have retailed stores worldwide to facilitate all.

Thus, the data and figures discussed in the upper section by comparing and contrasting the financial and investment status of the companies, we can conclude that the two companies are tough competitors to reach other. Microsoft is excelling in the domain of software and user-friendly applications that are the need of time. Apple is making its way greatly into phones, tablets, and other gadgets. Apple and Microsoft both are the relishing need of time. They are targeting the market very well to surpass their competitors in the field. The two firms are giving and investing their best to meet the fiscal levels. The world is no doubt giving a great challenge to the companies about technological needs and advancement. The firms are starting to feed their customers at their best and provide maximum ease and facilitation to them.

The marketing strategy of Apple is more promising as they are facilitating the customers at the doorstep by their cooperate stores globally. The advantage of having both market stores and online websites' is providing them a better chance to link with their customers worldwide providing maximum comfort. The excellent customer-based approach is giving them an edge over all other companies. Thus, the business policies of Apple Inc. are promising to give maximum results and benefits to the economic perspective of the company guarantying the good progression of the firm in the market world.

References

Chaparro, B. S., Phan, M. H., & Jardina, J. R. (2013, September). Usability and performance of tablet keyboards: Microsoft Surface vs. Apple iPad. In Proceedings of the Human Factors and Ergonomics Society Annual Meeting (Vol. 57, No. 1, pp. 1328-1332). Sage CA: Los Angeles, CA: SAGE Publications.

Hong, S. H., & Park, M. J. (2020). Dynamics of marketing automation adoption for organizational marketing process transformation: the case of Microsoft. International Journal of Electronic Customer Relationship Management, 12(3), 205-224.

Microsoft. (n.d.). Microsoft Corporate Social Responsibility - Microsoft CSR. Retrieved May 23, 2020,

Sena, J., & Olsen, E. (2014). Microsoft vs Apple: Which is Great by Choice?. Journal of Information Systems Applied Research, 7(2), 13.

Warner, J. P. (2019). Microsoft: A Strategic Audit.