Each year, the Interbrand consultancy complies a ranking of global brands. In 2010 Apple company was valued at $21,143 million and in 2014 they were valued at $118,863 million. How and why has the brand’s ranking changed? Identify and provide reasons that explain such changes. Consult additional sources (e.g., articles from print media, annual reports, the company’s Web site) to enhance your understanding of the factors and forces that contributed to the brand’s move up or down in the rankings. Please explain your conclusion by applying relevant concepts you learned from this course. Please cite sources!
Answered Essay: Each year, the Interbrand consultancy complies a ranking of global brands. In 2010 Apple company was
Expert Answer
When an organization’s value changes when years progress, the following are the likely reasons for the same as these factors influence the valuation of an organization.
- The net asset value of the organization would’ve gone up or down
- Net Income would’ve increased or decreased
- Percentage of sales revenue and turnover of an organization changes.
In our case of Apple Inc., in 2010 it was valued at $21,143 million and in 2014 it is valued at $118,863 million. This increase in valuation of the company would’ve happened due to one of the following:
- Either net asset value of the organization is increased
- Net Income would’ve increased
- Sales Revenue or the turnover would’ve increased
Let us see how these most popular methods are used in valuating organization’s value.
