Apple Inc. Case Solution
Company Background:
Apple Corporation is based in California USA,which was established in 1977. The Company designs, manufactures and markets mobile communication and media devices, personal computer and portable digital music players, and sells a variety of related software, services, accessories, network solutions and third party digital contents and applications.
The company also sells a variety of third-party Apple compatible products, including application software and various accessories through its online and retail stores. The Company sells to consumers, small and mid-sized businesses and education, enterprise and government customers. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, IOS, OS X and watch OS operating systems, iCloud, Apple Pay and a variety of accessory, service and support offerings.
Corporate Governance Analysis:
CEO of the Apple Inc.:
Currently, Tim Cook is the CEO of the Apple Inc. and serves the Board of Directors of the company. Before being the CEO of the Apple Inc. in August 2011, Tim was the Chief Operating Officer of Apple Inc. and was responsible for all of the company’s sales and operations across the world. Tim also headed the Macintosh division and played a key role in the continued development of strategic re seller and supplier relationships, ensuring flexibility in response to an increasingly demanded marketplace.
Prior to joining Apple, Tim was the vice president of Corporate Materials for Compaq and was responsible for procuring and managing Compaq’s entire product inventory. Prior to his work at Compaq, Tim was the chief operating officer of the Re seller Division at Intelligent Electronics.Tim also spent 12 years with IBM, as director of North American Fulfillment where he led manufacturing and distribution functions for IBM's Personal Computer Company in North and Latin America.
Tim did his M.B.A. from Duke University, where he was a Fuqua Scholar, and a Bachelor of Science degree in Industrial Engineering from Auburn University.
Board of Directors:
Apple's Board of Directors oversees the Chief Executive Officer and other senior management in the competent and ethical operation of Apple on a day-to-day basis and assures that the long-term interests of shareholders are being served. To satisfy the Board's duties, directors are expected to take a proactive, focused approach to their positions and set standards to ensure that Apple is committed to business successfully through the maintenance of high standards of responsibility and ethics.
responsibility and ethics.
The Board has adopted the following committee charters and governance guidelines that, in conjunction with Apple's articles of incorporation and bylaws, form the governance framework for Apple. The governance structure is designed to foster principled actions, effective decision-making and appropriate monitoring of both compliance and performance.
The members of board of directors include Arthur D. Levinson: Chairman of the Board, Robert A. lger, James A. Bell, Andrea Jung, Tim Cook, Ronald D. Sugar, Albert A. Gore Jr., Susan L. Wagner.
Stockholder Analysis:
The majority of the number of shares of Apple Inc. is held by the institutional shareholders. 58.9% of the shares of the company belong to these institutional shareholders. There are about 2419 institutional shareholders of the company. The top institutional shareholders of the Apple Company include Vanguard Group, State Street, FMR LLC, Blackrock Company and Northern Trust Corp. On the other hand, the insiders’ shareholding is currently zero percent.(NASDAQ, n.d)
Buying and selling activity of the insiders remains more than two million shares in the past twelve months. On the other hand, the number of sellers was 64 and that of the buyers was 5 in the last twelve months of the operation of the company.(NASDAQ, n.d)....................
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