Apple, Size And Business Structure

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Name, Size and Business Structure Apple is a large multinational company and is the second largest information technology company. Apple has a revenue of $199.9 billion and a profit of $44.46 billion. Apple’s market capital, meaning the aggregate value of the company based on its current share price and the number of outstanding stocks is $741.8 billion. Apple is a public company meaning you can buy shares into the company, which are traded freely on a stock exchange and is now the largest publically listed company. It was founded by Steve Jobs, Steve Wozniak and Ronald Wayne on April 1,1976. Apple employs 92,600 people and has 437 stores located in fifteen different countries. An online store is also available in 39 countries to serve on…show more content…
In foreign markets apple is able to produce with fewer government regulations, which results in lower production costs, making the profit margin larger for apple. Diversification is another major incentive for apple because it spreads the risk in cases of difficulties or if one market suffers from recession, lowered demand, or changed preferences. In these circumstances apples sales and profits wont be as significantly impacted. This allows apple to cushion economic cycles to protect their company. Foreign markets also allow for economies of scale meaning apple can produce by mass production; this can lower the cost of production and again increase profit. By spreading into a global market it allows Apple increased sales and the ability to find new markets. Problems and risks of expanding into foreign markets Exporting allows apple more opportunities but it also involves apple in greater risks. There are many forms of risks including political, legal, bribery, quarantine complication, exchange rate and non-payment risks. Currency risks are majorly involved with expanding into foreign markets. Due to the fluctuations of exchange rates, apples profits can vary due to demand and supply. The value of a currency is varied due to currency depreciation and appreciation and this fluctuation and
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