Business Excel Project

 

 

Business Excel Project

Lenovo

The Lenovo company was established in Beijing China in the year 1984 and has since then been expanding to a number of other companies in the world. The company started as Legend Holdings but was later to change its name after acquiring the Personal Computer Division of IBM. The company has presence in more than 60 countries in the world. At the moment the company has had to put its headquarters in the United States in order to position itself in its market as one of the market leader in information technology hardware and software.

The company was established o principally deal with the manufacture, distribution and sales of computers. Due to the changing market trend and the demand for its products the company has had to venture into other fields as time went by in order to take advantage of its reputation and its market share. Among the field that the company has ventured into are the software industry, smartphones and television sets among many other electronic devices.

In the last three years the company has been growing at a much faster rate as compared to the other companies in the computer industry. This can be attributed to its rapid expansion into other major markets of the world. This has resulted in a general steady growth from the beginning of May 2012 to May 2015 as depicted in the graph below.

In the last 18 months the company has been making major strides in the other areas of its diversified businesses like the mobile phone industry. As a matter of fact to stay focused the company decided from April 1, 2015 to divide its four areas of business into two major divisions where one will principally concentrate with its product distribution, resources, procurement and focus on its customers. The other division will be narrowing on growth and expansion into the emerging markets. There is cumulative growth when one compares the volumes sold from the beginning of December 2013 all the way to the beginning of May 2015.

Within the computing industry the company is among the ones leading globally. When we consider computers as its main product then its main competitors are Hewlett-Packard Company, Dell Inc and Acer Incorporated.

Apple

The company was started in the year 1976 in the United States by Steve Jobs and his two partners Steve Wozniak and Ronald Wayne. It was principally started to manufacture, distribute and sell personal computers that were IBM incompatible meaning that they could not be compared or even share hardware and software with those manufactured by the IBM Company. It is among the top information technology companies in the world. A year after it was started it decided to not only deal with personal computers but other electronic devices that are focused for the consumer market as well. Over time the company has ventured into the computer software industry as well as other fields such as mobile phones, television sets to name but a few. It has also made major strides in the online services industry.

Since its inception the company has had tremendous success with the Macintosh computer. In the early 90s the company faced a slight decline in its performance due to major changes and acquisitions. After this period it resumed profitability late in the 90s and has been a success story especially in the mobile phones industry from around the year 2000 to date after shifting focus to that industry in the year 2007.

When one looks at the performance of the company for the last three years and the last 18 months then the following comes out as seen in the graphs below for the daily and monthly sales. Taking the last three years the sales volumes have been increasing from the beginning of May 2012 to the beginning of May 2015 resulting in an upward graph. In terms of months when one looks at the sales from the end of November 2013 all the way to the end of April 2015 there has been a steady drop in the sales volume resulting in a downward graph.

Apple’s main competitors are Samsung, Amazon, Microsoft and Google. Samsung is the main competitor because of smartphones but the others when it comes to iPad’s and iPhone. Since Apple competes on a number of fonts it would be quite difficult to pint out its main competitors in all these areas unless one picks out specific areas.

 

Lenovo Daily

When the graph is observed from the beginning of December 2013 the stock prices start slightly lower and almost constant all the way to February 2015 when they rise suddenly take a rise. This is the time that investors are involved in the end of the year festivities which spill over to the beginning of January then thereafter they start investing heavily explaining the rise in both stock and volume traded.

Lenovo Monthly

The stock prices have been rising steadily from the beginning of May 2012 all the way to May 2015.

Apple Daily

The sudden slump that was exhibited from more than 500 to about 100 in June 2014 was due to a share split that was done by the company. They decided to split the shares in order for them to be available to a larger number of investors as compared to the ones that have been holding the shares in the company before this slump. Before this the shares were available to a smaller group of investors which can be explained by the volatility that was being exhibited from the end of November 2013 to the end of May 2014. With a smaller group they react so much to any changes that are likely to affect the company. From the beginning of June 2014 after the share split the shares are now owned by a larger group of investors. From then on it can be seen that the volatility in the stock price has reduced resulting in a near steady graph. This is because of a bigger number of investors owning smaller shares as compared to the previous time when there were few investors each owning bigger shares. Hence, therefore, in case of any changes or market expectations then the reaction to the stock prices is not going to be that large. Finally when one looks at the period from November 2013 to May 2014 and the period between June 2014 and May 2015 it will be noticed that there are two graphs that are all rising steadily. This can be explained by the increased market share and sales volumes by the company which results in the steady growth of the stock price.

Apple Monthly

In September 2013 the stocks went down when Apple released some new iPhone models that did not please investors and analysts hence they went down so much. It has been a common trend that every time the company releases a new iPhone model the stocks the month that follows the release this can be explained by the uncertainty that follows the market expectation.

When one observes the stock prices it will be noticed that they have been going down from the

Lenovo and Apple Monthly Combined

From this graph that is showing the combined graph for Apple and Lenovo it can be noted that the stock price for Apple has been much higher than that of Lenovo. This was the case until the beginning of June 2014 after the split of the Apple shares that the stock prices of the two companies moved to a status where there prices were the same. The stocks for apple were initially being owned by a smaller group of investors until the share split. The shares for Lenovo have always been owned by a larger group of investors. From about the mont of June 2014 the stock prices for the two companies have been rising much closer all the way to May 2015.

When we observe May 2012 to September 2012 the stocks for the two companies were rising. This can be explained by the sudden interest in their products leading to higher sales volumes that lead to this rise. After September 2012 consumers were not that keen on these products simply because their expectations were not being met. This resulted to reduced sales volumes all the way to March 2013. From then on there appears to be an explosion in the interest in information technology products all the way to May 2014. This has been resulting in higher market sales that have led to an increase in the stock prices of the two companies.

A close observation of the stock prices of the two companies will show that there is no one company that can be said to be leading over the other one. They seem to be following each other at par with an almost equal market share of their products.

MIT Sloan