MBA 515 Managerial Accounting Financial Analysis Apple Inc versus Dell Inc. Complete Project.The brand names of Apple Inc and Dell Inc and their relevance
... [Show More] in today’s industry make
them an interesting case study for investment opportunity. While they have other competitors,
such as Acer and Lenovo, Apple and Dell are more recognizable as competitors. Due to their
name recognition, place in the market and availability of financial data, the team decided to use
these two competitors to compare and contrast for investment opportunity.
A search on LexisNexis revealed both Apple and Dell fall under the North American
Industry Classification System (NAICS) number 334111 (“Industry Classification,” 2012). This
classification is used for companies whose primary business is electronic computer
manufacturing. The NAICS replaced the depression-era Standard Industrial Classification (SIC)
in the late 1990’s. The SIC was developed in the 1930s and was based on an agricultural and
manufacturing society. Its 4-digit system focused on production and grouped businesses
according to what they did, not who they served. The NAICS and its 6-digits identify different
industries and uses sub-categorizations. The first two digits identify the major economic sector.
The third digit is the economic sub-sector. The fourth is for the industry group while the fifth
represents the NAICS industry. The sixth digit is specified for individual country use. Using this
definition and classification number 334111, we can determine “33” denotes the manufacturing
sector. The third digit, 4, identifies computer and electronic product manufacturing. The fourth
and fifth digits, 11, represent computer and peripherals. The last digit, 1, represents electronic
computer manufacturing (“2012 NAICS Definition,” 2012, para. 1-7).
While the NAICS number helped ensure the research targeted companies are truly
competitors, the system also provides added benefits. It makes it easier to track market progress
among competitors, especially among the North American Free Trade Agreement partners.
However, it may cause an impediment in tracking any of the companies whose classification [Show Less]