PERFORMANCE MEASUREMENT

Performance Measurement



Performance Measurement

Introduction

The main purpose of this paper is to make analysis on Microsoft Inc and Apple inc. The paper makes an analysis on the statement that is Apple Inc a good or bad benchmark in order to make an examination of Microsoft Inc's performance. The paper makes use of financial ratio in order to compare the performance of Apple and Microsoft Inc. The paper also conducts the analysis by going through the section 13 or 15 of securities and exchange act of 1934 of annual reports of these two companies.

Company's Introduction

Apple Inc.

Apple was founded in the first of April 1976 by the hands of Steve Jobs and Steve Wozniak and Ronald Wayne for the sale of personal computers called "Apple-1". These computers are sold as pallets or (Motherboard): central processing unit (CPU) and memory for random access (RAM) chips and video - script core. Apple runs individual businesses and is engaged in offering several products and services like the computer designs, servers, network solutions and software and services. The company is running a business in USA mainly having the headquarters in different cities like California and Cupertino. The company is currently having 34,300 employees and the financial results show that the revenue of the company has increased by 14.4% from 2008 to 2009 (Novack, 2008, p. 510). The main reason behind a huge increase in revenue is the increased sales of iPhone handsets and applications from the iTunes Store. Apple is selling its products to almost entire world, and almost all the country's can avail the products of Apple Inc. through several sources that include the online delivery, sales through the retailers and etc.

Microsoft Inc.

Microsoft is one of the largest IT companies in the world. Though Microsoft has lost some of its market share to Apple, the company is still the pioneer in the development, manufacturing, licensing and software support programs. The company produces software products that have its relation to the operating systems (www.sec.gov). Microsoft has a range of different products that it has manufactured such as, Microsoft Office, MSN, Windows XP, and Windows Vista. There are a lot more different versions of the programs that it has produced. These versions are manufactured with increased features and versions and due to the changing technology. When Microsoft came into being there were no other technological companies, rather there were no competitors. However, now with the increased changing trend with the changing ways of using technology, the company is forced to keep up with the change. The company was found by Bill Gates and Paul Allen in 1975. The company has been on the verge of success since it has been stabled. The company's operations have remained unchanged because of the thriving company background. The company has made sure that it does not lose its market share to any of its competitor. Today, Apple is one of the greatest competitors of Microsoft, but because it operates in a distinct market, the two companies do not face significant ...