Apple Company

Apple Company

Introduction

A great challenge and goal for company executives is to create shareholder value, not just thinking about finding value in the short term but also long-term design strategies that generate sustainable value growth over time. Creating shareholder value is the main indicator to measure the profitability of a company. The main role or responsibility of a manager is to increase the value of the organization and it requires the participation of all employees.

To describe the role of the manager in creating shareholder value is important to note that financial management in companies traditionally seeks to create value through monitoring of indicators such as profitability, liquidity, growth and risk taking as a premise that is generated value if actual performance exceeds the return that shareholders demand. In this sense, managers must define strategies to meet and exceed these requirements, giving the organization tools to act around objectives, monitor the performance of these activities by clearly defined indicators to different areas and adjust the required elements to reach them.

Discussion

Firstly, no business can live without shareholder, be it public, except that failure to consider equity, the company is financed through bank loans or repayable advances, which is the same: the company depends on external funding for its development, because its profits are generally insufficient to allow an independent. Same goes for Apple Inc. Being the pioneer for innovation and revolutionizing the world with its finest products, a lot of their decisions have an impact on the shareholders. Apple shareholders will be more than happy to see their shares value boiling up, as Apple has revolutionized the world and hence the value of their shares has increased fairly in the last decade. But seeing things in perspective now in the age of smartphones and other technological advances, the value of shares is dropping, and that is a cause of concern, not only for the company but for the shareholders as well. Large shareholders have an influence on the managerial activities, as they are able to vote for or against any decision. As for the small minority shareholders, they are helpless spectators, unless they can to raise their voices to be heard. Under these conditions, the leaders of the company, which are removed at any time by the Board of Directors, first aim to stabilize the ownership and preferably with those likely to be partners in the development of the company. In other words, the 'participatory' shareholders should be preferred (www.mercurynews.com).

The role of shareholders is perceived by the largest number of employees: more profitability in defiance of staff and employment. Some shareholders have a strong influence on the life of the business for greater return on investment, it is a fact. But others were able to play a more harmonious and perhaps ultimately more demanding role. As for small investors, despite their efforts to join their lack of cohesion most often deprives them the opportunity to influence effectively and there are few companies that realize a transparent and readable results and their ...