Essay on “Ethics and true and fair view in financial reporting”

Essay on â€Å"Ethics and true and fair view in financial reporting† Financial reporting Financial reporting according to Pervan et al. (2010) is presenting all the relevant financial information of a business in a structured way for easy comprehension. A look at Tesco’s financial statements, there is a clear indication that that it is specifically aimed at impressing the shareholders(Tesco, 2012). The company may be giving true and accurate information but the focus is on creating benefit to stakeholders involved including customers and shareholders. For instance, the review by the chief executive focuses on strengthening the company for the future and there are numerous illustrations that show the company’s impressive performance and organizational culture(Tesco, 2012). Just like in many other company reports, too much focus is laid on the positive outcomes about the company’s operations. According to Hardin (2002), this is a common way for corporate to use financial reporting as a means of hiding behind formalities(Hardin, 2002). Financial reporting is not only crucial to the companies that send out the report but also to public agencies, competitors, business partners, consumers and investors who receive and use the reports. Enderlie (2004) says that during reporting, companies portray and explicitly convey an image of their philosophies and activities to the public. He further says that the companies use reporting as a means to enhance their reputation and be accountable for their activities and objectives. With regards to the recipients of the report, Enderlie says that they need some truthful information to base their decision on and to hold the corporations accountable(Enderlie, 2004). This further implies that financial reports cannot primarily be designed for shareholders alone. Companies cannot make an assumption that shareholders are finance specialists or the industry. It is for this reason that other users such as banks, customers, suppliers, governments, and employees have to be considered during preparation of the report. There is a lot of vested interest from all these recipients. Other authors such as Albert (2002) agree with these assertions of Enderlie (2004). Albert even goes ahead to cite examples of cases that support the importance of ethics in financial reporting. For instance, the collapse of Enron was due to unethical practices in financial reporting. The free market policy is basically made possible by the ability of stakeholders to properly evaluate the financial disclosures of companies(Criado-jimà ©nez, et al., 2008). The accuracy of the information presented in the financial reports is not supposed to be subjected to individual evaluation by stakeholders. However, the interpretation of the information in the reports is subject to individual evaluation(Enderlie, 2004). Aims of financial reporting There are several aims of financial reporting identified by scholars. Frecka (2008) says that financial reporting is useful in identifying the economic resources of a company. The reports can also be used to identify the claims to economic resources of a company and the impact that circumstances, events, and transactions will have on the identified resources(Ionescu, 2010). Potential and existing investors and creditors are among the group of focus in financial reporting. This is because they use the statements to assess the uncertainty, timing, and amount of cash inflows to a company(Jo Kim, 2008). In addition, financial reporting is useful to both potential and existing creditors and investors for making important decisions relating to investment and credits(Frecka, 2008). The role of ethics in financial reporting According to surveys conducted by Gallup, there is evidence of dishonesty by business people in the corporate world. Compared to other sectors, the poll showed that business people have a 25 percent level of honoring ethical practices in their reporting(Marx Els, 2009). This is quite a low figure. Gibson (2002) says that it is likely that such polls are discriminating and biased against corporations. However, the one thing that makes them to be more accurate and significant is the fact that they are individually reviewed(Gibson, 2002). Because of the numerous concerns about the accuracy and comprehensiveness of corporate financial reporting, analysts have always sought to answer the question whether corporations use financial reporting to hide behind their formalities or represent a true substance of their performance(Palmrose Saul, 2001). Ethics in financial reporting therefore refers to the standards and requirements of trust and transparency by auditors, certifiers, corporate, and any other individual who uses the financial reports. According to Staubus (2005), little attention was given to truthfulness and honesty in reporting before the occurrence of the major scandals of Enron and Andersen in the US. Staubus notes that the reports were believed to be accurate because ofthey were subjected to auditing by publicly recognized auditors. But the point is that auditors can also take part in unethical practices in financial reporting. He therefore notes that the ethics of reporting is a serious problem witnessed by professionals within the financial sector(Zeff, 2003). The problem is not only concentrated in the US but also in companies from other regions such as Europe(Blake, et al., 1996). Trust and truthfulness of financial reporting is argued to be very complex and that it takes more than just decisions and actions of accounting professionals and corporate executives to enforce ethical practices in reporting(Xu, et al., 2007). Even though the cited cases of Enron and Andersen indicated that the problem lied at the micro level or the individual level of all aspect of a company, it would still be unfair to lay blame on individuals(Jo Kim, 2008). The macro level or the regulatory level can also be considered since it plays a significant role in preventing unethical practices in reporting. Importance of ethics It is important to have ethical standards in financial management as well as reporting because issues to do with finances can sometimes make professionals do strange things(Stolowy Breton, 2004). Most of the applications used in accounting and finance are designed in such a way that organizations and their constituents can use them to their benefits. This makes it possible for accounting and finance professionals to move around numbers in all different ways just to ensure they add up in a particular manner(Roychowdbury, 2006). In response to such kind of practices, companies have to adopt ethics in financial management so that they can have a source of guidance. Without the moral barometer, cases of mismanagement and unethical practices in reporting will remain to be witnessed. Frecka (2008) says that without considering ethical standards in reporting, it is hard to create limitations or boundaries to corporate culture. With the nature of accounting, management decisions about statements and financial reports become necessary. Management decisions impact reporting and cause it to range from fraud to high quality reporting at both extreme ends of the spectrum(Rockness Rockness, 2005). This implies that some management decisions during financial reporting can be regarded as unethical but not fraudulent(Kalbers, 2009). The three ethics models that are commonly used in management decision include deontology, utilitarianism, and virtue ethics. When considering the Kant’s deontological approach to ethical decision making, the results or consequences of action has little significance in establishing what is right or wrong(Nandi, 2006). This implies that the consequences of unethical practices in financial reporting have very little significance of determining whether the practices are moral or immoral. In this view, the end is not related to the means used to reach the end and the results cannot be used to justify the means. Therefore, Kant argues that the bottom line is to maintain the standards of morality irrespective of the outcome(Nandi, 2006). When it comes to financial reporting, as long as a company meets the standards of reporting, the outcome does not matter. The other model of ethical decision making is utilitarianism which gives considerations to the consequences of an action. Essentially, this approach requires individuals to only do the actions that have the best results. According to Ugleitta (2001), in order for an individual to act morally, he or she has to choose the actions that bring the best outcome. Therefore, if an individual is aware that the outcome or consequence of one action is better compared to those of another action, common sense should dictate that the individual chooses the one with the best outcome. Utilitarianism can be used in making financial decision in organizations(Bok, 1999). Lastly, according to virtue ethics model, a lot of emphasis is laid on moral characters or virtues. It contrasts with deontological approach which emphasizes on rules or duties and utilitarian approach which emphasizes on the consequences of an action. Supposing it is obvious that accounting professionals should always give true and accurate information during reporting, a virtue ethicists will point out to the fact it is good to be honest. According to the utilitarian model, the argument will be based on the fact that giving truthful information has consequences beneficial to many people; while deontologists will argue that giving truthful information honors rules and standards of morality despite the outcome(Nandi, 2006). Trust and transparency are the most basic aspects in proper financial reporting. Looking at this from the angle of utilitarianism, finance managers have to be aware that the trust and transparency will bring the best positive and beneficial outcome in reporting. The benefits of transparency and trust will be felt by the company as well as every other recipient of financial reporting. The confidence of shareholders, employees, governments, banks, suppliers, and customers to companies will increase(Pervan, et al., 2010). On the contrary, if financial managers decide to engage in unethical practices during reporting, the outcome will be detrimental to all the stakeholders involved as well as the company. Some of the cases cited as examples of compromised ethical standards in finance reporting provided by Albert (2002) include: the case of IBM, Global Crossing, and Enron. True and fair view in financial reporting True and fair view in financial reporting has been a subject to debate by many financial analysts with regards to their usefulness, importance, and meaning. In addition, the general accepted principles of accounting have also been subjected to debate. According to Kirk (2001), true and fair view in financial reporting is closely associated with judgment. He distinguishes the true and fair view from the general accepted accounting principles and says that the latter tends to be rule based as there are established standards expected to be followed. Kirk points out that there is no specific definition in true and fair judgment in financial accounting. This therefore allows users to make professional judgment and find meaning of the phrase ‘true and fair’ through usage(Blake, et al., 1996). Interpretation of accounting statements requires fairness and truth in order for the information presented within the statements to be reliable. Assets and liabilities reported in financi al statements have to have a one to one relationship with the quantities they purport to measure(Blake, et al., 1996). What is considered to be true and fair, can only be established through professional judgment. The intention behind the use of this view is associated with the wider moral stances within the society. The view makes an attempt to balance between the abuse and use of power during reporting by providing judgment based on legal standards. Several scholars have agreed to the fact that both the terms truth and fair do not have precise definition(Blake, et al., 1996). For instance, truth has a nature to be either absolute or relative. However, despite this fact, the concept of truth has been applied in accounting and research. The concept of fairness has also been described to be very open. It varies in several degrees and subjected to individual interpretation and application. Scholars, and analysts also agree to the fact that time and place can be factor that causes both truth and fairness to vary(Blake, et al., 1996). It is for this reason that one cannot be surprised when such varying patterns are witnessed during financial reporting. The concept of true and fair view is therefore a very slippery one when relating it in accounting and financial reporting. Circumstances can actually be used to give meaning to the concept rather than the definition of the concept. According to (Jo Kim, 2008), in order for financial managers to achieve a true a fair judgment in their reporting, they have to present data both in a manner that is easily understood by others and a manner that is impartial. This is however in contrast to the definition of fairness by other authors, who tend to describe the concept as applying judgment to rules and standards which are already established. Instead of being neutral to matters that raise different interest, it is only fair if one follows the rules. Other authors have also leaned more towards the general accepted accounting principles to be the description of truth and fair(Blake, et al., 1996). Hence, when the accounting principles are applied consistently, it will amount to true and fair judgment. From the discussion of the concept of true and fair view in application of accounting theory and general reporting, it is clear that financial reports go against the three ethical models. Both fairness and truth are considered to be relative, abstract, and subject to individual interpretation. Circumstances and time can be used to determine application of financial standards during reporting. The model of utilitarianism may fail to apply during financial reporting because the outcome does not matter. The concept of fairness and truth allows different circumstances to determine whether to apply standards of financial reporting. The Tesco financial statement 2012 uses the model of utilitarianism where a lot of consideration is given to the outcome of the accounting practices. The company focuses on ensuring that the financial reporting brings benefit to all the stakeholders involved.

The Role Of Probation Officer Who Is The United States

Apart from approved schools every local authority of the country or borough country in the UK has to provide remand homes for its area either within or without its area to receive children (as is a transit amp) waiting for their trial or for approved school placement or for being given in the custody of fit persons or as asked by the probation officer before employment after discharge from the approved school. The important link between the court, the approved school and the guardians or the employer is the probation officer who is to find a suitable place for the young offender in an approved school after committal and who is to have an eye on his progress and on discharge to help him in finding an employment, In the rehabilitation of the child with the parents, another person, the psychiatric social worker, also helps as he helps in the investigation of the case with regard to the social conditions in the home and in the school to enable the court to understand fully the problem o f the case. Through suitable legislations in various States in this country and similar provisions for juvenile courts are available. Remand homes, probation officers, approved schools or certified schools (whatever name to be given) and the giving of children in the custody of fit persons or agencies, or agencies, it will be useful to institute a special police or juvenile police’ which will have the special duty of patrolling more specially such areas which are more frequented by orShow MoreRelatedProbation Parole And Probation Case Essay1348 Words   |  6 Pages History of Parole and Probation Jindarat Innuan Student #0913685 CCJ 1020 Hillsborough Community College Prof. Leonardo Cadogan November 26th, 2014 The purpose of this research paper is to discuss about Parole and Probation in America. The paper is going to focus on the past, present and future of parole and probation. This paper includes discussion of Parole and Probation Officers, as well as why some states so longer utilize parole, including Florida. This paper will also include personalRead MoreCommunity Supervision Is Not A New Concept1335 Words   |  6 PagesIntroduction Adult Probation, also known as community supervision is not a new concept that is occurring in today’s criminal justice system in the United States. In the year 1841, John Augustus introduces probation in the United States in Boston and later recognized as the â€Å"Father of Probation† (Petersilia, 1997). John Augustus convinced a judge to release a drunkard into his custody to help the man find a job and become sober. After Augustus’ success in his first case, he began to offer his servicesRead MoreRecruiting in Federal and State Law Enforcement Agencies Essay1616 Words   |  7 Pagesare recruiting include the Border Patrol and the Texas Probation. These two fields include some of the most extensive hiring process that is out there. A probation officer has many duties to fulfill. 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There needs to be more communication between the different levels of the juvenile justice system. Particularly between the officers that may arrest these juveniles, the probation officers that deal with them, and of course the judge in the court system. The juvenile court is supposed to have provided due process protections along with care, treatment, and rehabilitation for juveniles while protecting societyRead MoreProbation And Parole1305 Words   |  6 Pagesof probation and parole influences the decisions that are made in the Adult Court System toward the supervision of adult offenders by considering community corrections and involve supervision in the community. In the criminal justice system, there are many individuals locked up in local, state, and federal institutions. John Augustus probation bears much resemblance to probation as it is practiced today. He took great care in deciding which prisoners were promising candidates for probation. HeRead MoreProbation And Parole Is An Important Part Of Our Society1064 Words   |  5 PagesJustice indicated in 2012, approximately 1 in every 35 adults in the United States was on probation or parole or incarcerated in prison or jail. Probation and parole are an important part of our society and most people know at least one person who is either on probation or parole. There are drastic differences between probation and parol e. Probation refers to offenders who are on supervision through a probation agency. Probation is ruled by the courts and is generally given as a sentence instead

The Secret of Ella and Micha Chapter 11 Free Essays

Ella The next morning Lila is feeling much better. It’s like last night never happened, but I wonder if it’s an act. â€Å"I have a feeling that today is going to be full of rainbows and sunshine,† Lila says cheerily as she applies her lipstick, using the mirror on the closet door. We will write a custom essay sample on The Secret of Ella and Micha Chapter 11 or any similar topic only for you Order Now Against my protest, she took down some of my sketches, so she could see her reflection. â€Å"See what, though?† I’d asked and she laughed, totally confused. â€Å"Are you high?† I tease as I twist my hair onto the back of my head and secure it with a clip. She pauses, looking at me over her shoulder. â€Å"Why do you always ask questions like that?† I slip on my boots and tie up the laces. â€Å"What kinds of questions?† She blots her lips. â€Å"Every time I’m happy, you always ask if I’m drunk or on something. People can be happy without substances.† I clasp a watch around my wrist. â€Å"Most people can, but not all.† Lila clips a diamond earring in. â€Å"You look really nice today.† I glance down at the black and purple dress I have on and the boots on my feet. â€Å"I forgot to do laundry so I had to wear some of my old clothes, which don’t match any of my new shoes.† â€Å"Well you look nice.† She gives an elongated pause. â€Å"So what’s on the agenda for today?† â€Å"It depends on what you’re doing?† I ask. â€Å"Are you†¦ where are you planning on staying?† She shuts off her phone and then discards it onto the bed. â€Å"I’d like to stick around with you for a while, if you don’t mind. We could hang out. I don’t have anything scheduled for the summer and I’m not going back home.† â€Å"Do you want to tell me what happened?† â€Å"No, not really.† â€Å"Okay†¦ well, I need to find a job,† I say. â€Å"I have to save up for the rest of my tuition since it doesn’t look like I’ll be getting that internship.† She puts a headband in her hair. â€Å"The one at that art museum.† â€Å"That’s the one and it doesn’t start until mid-June,† I explain. â€Å"But that’s only five weeks away, so I figured they’d have notified me if I got it.† â€Å"You never know. Sometimes things like that move slow.† She folds up a shirt and packs it into her bag, then ties a ribbon on the back of her shirt. â€Å"Although, if you get it that’d mean you’d have to go back to Vegas, right?† Nodding, I head for the door. Two weeks ago the idea of returning to the desert would make me happy, but something’s changed. I still want to go, though leaving will be a little bit harder. I collect my phone off the dresser, noting the flashing voicemail on the screen – Micha’s unread message. My finger hovers above the button as I step into the hall. He told me I wasn’t ready for what was on it? But am I ready for it now? â€Å"I don’t know why you think it’s so bad here.† Lila follows me. â€Å"Yeah, people are a little rough, but they’re not all bad and everywhere has bad stuff. You can’t hide from it.† â€Å"That’s very insightful.† I close my phone and put it away. â€Å"Bad comes in different forms,† Lila continues. â€Å"Whether it’s drug dealers on the corner or if it’s corrupt rich people or just your run-of-the-mill douche bag.† I don’t know much about Lila, other than she’s rich, her dad works as a lawyer and her mom stays home. She likes clothes, is great with numbers and was the only reason I passed pre-calculus. My brother’s door is open and he walks out as we’re passing by. He has a black and red polo shirt on and a pair of cargo pants. There’s some kind of gel in his hair and it looks shiny. â€Å"Hey, have you seen dad?† he asks, giving an acknowledging glance at Lila. I point at the shut door at the end of the hall. â€Å"I thought I heard him come in late last night and go into his room.† â€Å"He did, but he got up this morning.† He leans against the doorframe and crosses his arms. â€Å"I heard him stumbling around in that bathroom and crying all night, but now I can’t find him and I didn’t hear him leave. His work called the house, saying he didn’t show up, so he’s not there.† My fists clench so that my nails dig into my palms. â€Å"Did you check in the bathroom?† Dean’s eyes travel down the hall to the bathroom door and he shakes his head. â€Å"I haven’t and I don’t want to.† â€Å"Hi, I’m Lila,† she introduces herself and offers her hand. â€Å"You must be Ella’s brother, Dean.† Dean is vaguely amused and shakes her hand. â€Å"Yeah†¦ how do you know Ella?† â€Å"I was her roommate,† she responds, pressing her hand to her chest, faking being offended. â€Å"Didn’t she ever mention me?† â€Å"We don’t talk that much.† I eye the bathroom door again and my stomach twists. â€Å"We need to find Dad.† â€Å"I’m not looking in that bathroom, Ella, but if you want to, go ahead.† With legs flimsier than wet noodles, I walk down the dark hallway and stop in front of the door, having a flashback of the day my mom died. The door was closed and the house was soundless, except for the running of water. My hands tremble as I open the door. The room is bare, the tub empty, and the tile floor is clean, except for a small stain. There are no towels on the hooks and the mirror on the wall across from me shows my reflection. My auburn hair is curled perfectly in place, my lips are lined with gloss, and my green eyes are immense and reveal everything. â€Å"Dad isn’t in here,† I tell him, unable to look away from the mirror. â€Å"Are you sure you didn’t hear him leave the house?† â€Å"He could have left and I just didn’t hear him,† he answers. â€Å"But when has he ever left the house quietly before?† I quickly slam the bathroom door, like I’m trying to put out a fire, and race back down the hall. â€Å"Someone needs to find him. Did you try and call him?† â€Å"Of course. I’m not a moron.† He rolls his eyes and nods. â€Å"And he didn’t answer.† Lila shifts her weight and forces the uncomfortable conversation elsewhere. â€Å"So you play the drums, Dean?† He motions to his drum set in the middle of his small room with dark blue walls. The floor and bed are cluttered with boxes and the curtain is pulled back, letting the sunlight spill in. â€Å"I used to, but I don’t much anymore. I have work and a fiance.† â€Å"Fiance?† Lila and I say simultaneously. â€Å"Yeah, as in we’re engaged.† Dean rolls his eyes and goes back into his room. â€Å"It’s what happens when two people date for a really long time.† â€Å"Why didn’t you tell me?† I ask, following him into his room. He picks up a small box and drops it onto the floor. â€Å"Do you really care that I am?† I carefully nudge the box out of the way with my foot. â€Å"You’re my brother. Of course I care.† â€Å"But it’s not like we’ve ever really gotten along,† he points out. â€Å"I haven’t even talked to you for a year. God, I didn’t even know you went to college until a week ago.† He’s right, which is sad. I barely know him, he barely knows me, and I’m starting to think I barely know me, too. â€Å"Does Dad know you’re engaged?† I ask. â€Å"Were you at least planning on telling him?† â€Å"Even if I told him, he’d just forget the next day.† He empties a dresser drawer into a large open box and then aligns the drawer back into place. â€Å"You know how he is. Christ, I don’t even think half the time he knows that you and I don’t live here anymore.† â€Å"He still deserves to be told,† I say. â€Å"He’s not a bad guy and you know it. He just has problems.† â€Å"Problems that fucked up our childhood.† He kicks a box out of the way with force and it crashes into the wall. â€Å"You do realize that how we grew up wasn’t normal. God, even Micha had it easier and his dad bailed out on him, but at least he had a stable mom to take care of him.† â€Å"Umm†¦Ã¢â‚¬  Lila pokes her head in the room. â€Å"I think I’m going to wait outside for you, Ella.† God, I’d forgotten she was even there and she just heard all of that. â€Å"Okay, I’ll be down in a second,† I tell her and she leaves readily. I wander around Dean’s room, taking in the photos he has up. â€Å"I think we may have just scared her to death.† Dean picks up his drumsticks and places them into a large duffel bag. â€Å"Okay, I have to ask. How did you end up being friends with her?† â€Å"She was my roommate and we just sort of bonded.† I shrug, picking up a photo of Dean and his friends on a sunny beach. It was taken during his Senior Field Trip and he looks happy. â€Å"You bonded,† he accuses. â€Å"The girl looks like a spoiled princess.† I eye his preppy clothes. â€Å"So do you.† â€Å"First off, I’m not a princess and I’ve earned what I have,† he says. â€Å"It wasn’t just handed to me.† â€Å"Maybe she did, too.† â€Å"Did she?† I hate to give him the benefit of being right. â€Å"No, her parents are pretty well off.† He looks at me with that stupid arrogant expression he gets when I admit he’s right. â€Å"Well, there you have it then.† â€Å"She’s nice,† I protest. â€Å"And she doesn’t ask a lot of questions.† â€Å"It may seem like you need to keep things to yourself,† he says, putting a blanket into a box. â€Å"But it’s not healthy. You need to find someone you can let it all out to. Otherwise you’re going to lose it.† My eyes roam to the window where the edge of Micha’s house is visible. â€Å"I think I already did.† Dean’s forehead creases as he drops a handful of guitar picks into a trunk. â€Å"Lose it? Or talk to someone about it?† â€Å"Both.† I back toward the door. â€Å"When are you heading back to Chicago?† â€Å"Hopefully by tonight. No offense or anything, but this place brings back way too many unpleasant memories.† â€Å"Try to say good-bye before you leave.† He doesn’t respond and I don’t wait around for an answer. That was probably the longest conversation that we’ve ever had and I have a feeling it may be our last for a very long time. How to cite The Secret of Ella and Micha Chapter 11, Essay examples

Knowledge Based Approach To Product Concept-Myassignmenthelp.Com

Question: Discuss About The Knowledge Based Approach To Product Concept? Answer: Introduction: The aim of the assignment is to critically analyse the marketing management concepts and compare between them. The study takes Apple, the multinational manufacturer of iphones, tablets and other computer hardwares as the base of the study. The six marketing concepts compared are production concept, product concept, sales concept, marketing concept, consumer concept and profit concept. Production concept: According to Jalonen et al. (2016), the production concept was prevalent in the 1950s when the business organisations were concerned more about production and manufacturing. The production concept stands on Says Law, which says that if a product is manufactured in the market, it will always find consumers to buy it. Compared to the marketing concept, in case of production concept, the producers believed that consumers would choose from the products and services available in the market. These products were made available to the consumers at low cost. The business organisations concentrated on production maximum units of products to earn high amount of profits and obtain economies of scale. The producers considered the tastes and preferences of the consumers secondary to their own needs to produce high number of units of goods and sell them to the consumers to earn high profits. The production concept of marketing was applicable when the goods and services are available in the market h ave low cost and there are high demands for them(Radke et al. 2014). Thus, analysis shows that the production concept was not appropriate for multinational companies like Apple who make expensive high value products like tablets and mobile smart phones. The company has to incur huge investment in hardware and software technology to manufacture these products and hence require selling them to appropriate customer segments to generate high profits. Thus, it can be inferred that production concept paid very less importance to the needs of the customers and is not appropriate for modern companies. Application of production concept in Apple: An analysis of the production concept shows that it laid more emphasis on the needs of the producers to mass produce goods to sell them to the consumers to earn high profits. A deeper analysis of the production concept reveals the following advantages: Economies of scale: Baumers et al.(2016) state that the producers concentrated on attaining economies of scale by mass-producing products and selling them to buyers at lower prices. Hence, the aim of the producers was not customer satisfaction but to earn economies of scale. This ensured a large number of products were available to buyers at low costs. Mirzaei, Moore and Liu (2013) say that contradictory to the cheap goods, which are sold under the production concept, Apple sells expensive mobile phones. The company invests a huge amount of money to manufacture these electronic goods. Thus, it is 1required to target the upper class customers to sell the smart phones at high price to recycle the investment amount back into its account as revenue. Thus, it needs to consider the customer segments and hence, it can construed that production concept is not applicable for Apple. Reduced marketing costs: Mirzaei, Moore and Liu (2013) say that the production concept reveal that the producers concentrated on mass-producing products to earn high price and consumer convenience was considered secondary. This clearly points out to lack of marketing activities to inform the buyers about the products and letting them choose. This trend led to the reduced marketing costs of the producers and the consumers had to choose from the small variety of products available. It can be contradicted from the view of Apple that the reduced marketing is not acceptable to the company, which invests huge capital to make its expensive products(Hoberg and Phillips 2016). Thus, from this angle it can be stated that production concept is not applicable for modern companies like Apple. Lack of product differentiation: Hoberg and Phillips (2016) state that the production concept clearly shows that compared to the product concept, the producers did not pay attention to the needs of the consumers and mass produced goods to earn profits. This left very less scope for product differentiation and the products of the producers eventually lost their unique characteristics. Imai et al. (2015) state that the producers as a results were not able to obtain consumer loyalty, which limited their repeated business profit generation. Thus, this concept is not applicable for multinational IT companies like Apple because they manufacture high-involvement electronic products for the consumers. It is crucial that Apple achieves product differentiation to make its smart phones and tablets stand apart from its competitors products in the market. Thus, the lack of product differentiation attribute of production concept is not applicable for Apple. Product Concept: Imai, Mizuyama and Nonaka(2015) state that the product concept refers to the marketing concept of displaying the best attributes and maximum characteristics of the products. The product concept of marketing is a development on the production concept where the producers target their audience groups before selling their products. Jalonen et al. (2016) support the opinion and states that in comparison to production concept considers that consumers prefer commodities with highest quality, which would create high utility for them. This analysis shows that the product concept compared to the production Advertising only to sell the products and not for customer relationship building: The producers advertise the best features of their products to the buyers to sell them. The advantage of this approach is the producers were able to target the appropriate consumer groups who bought the products. This earned them loyal base of consumers and who bought their products thereby generating high profits for them(Cassia et al. 215). This again shows that product concept like production concept is not applicable for use in Apple. This is because the concept does not incorporate advertising of goods and simply selling them based on their features. This process is not capable of earning high profit in the long run and hence is not appropriate for Apple(Mirzaei, Moore and Liu 2013). Sole emphasis on product engineering: Baumers et al. (2016) say the producers believed that consumers would buy highly engineered products and spent less on marketing them. They were as a result able to allocate more amounts of resources towards making high quality products rather than spending on marketing them. Axelson and Svensson (2013) contradicts this opinion and opine it can be pointed out that lack of marketing activities would result in weakening of the brand value of Apple and it would lose its customers to its competitors. Hence, this concept of large customer base buying products merely due to engineering attributes does not apply for Apple. Neglect of advertising: The producers relied on the approach that products sell due to high qualities and neglected advertising. As a result, they were not able to attract a large number of consumers, which limited their profitability(Relich, ?wc and Gola 2015). There was still lack of product differentiation because the producers did not carry out large-scale marketing to know the needs of the consumers. Axelson et al. (2013) supports this view and opine that this often led to stocking of large amount of finished products because of over production and lack of advertisement of them. Apple cannot afford to have a lot investments in storing finished goods because that would hamper its financial liquidity. Thus the company requires to sell its products to its customers on a continual basis so that it can plough back the amount invested in the products by selling them to the customers. Sales concept: As per Hoberg and Phillips(2016) the sales concept stands on the assumption that companies sell what they make and promote. The producers which practice the sales approach believe that consumers will buy products which are sold aggressively and promoted in the market. Similar to the product concept, the producers do not emphasise on building relationship with the consumers and assume that consumers forget their disliking for a product and may buy it in the future. Trujillo?Ponce (2013) support this theory and state the sales concept is not capable of earning profit in the long run because it does not try to build customer relationship and hence has limited use in multinational companies like Apple. This because since the customers cannot relate to the producers, they tend to switch from one producer to another which impairs the profitability of companies in the long run. Application of sales concept in Apple: The advantage of sales concept in comparison to the product concept is that the producers concentrate on marketing the products to sell them to the consumers. This leads to mass selling and earns high profits for the producers. However Radke et al.(2014) points out that mass selling without customer relationship building is applicable for cheap goods. It is not applicable for expensive goods like Apple which requires huge initial investment in technology and human resources. The company requires building strong and long term relationship with its customers to be able generate repeat business. Hence, the sales concept is not applicable for Apple due to its lack of customer relationship attribute. Lack of after sales services: Axelson and Svensson(2013) say that the biggest disadvantage of the sales concept is that the producers concentrated on promoting their goods to sell them to consumers and not to create relationship with them. The sale of goods left very little scope for after sales services. Hoberg and Phillips(2016) supports Alexson and Svensson and state that this lack of relationship between the consumers led to limited repeat business, which did not allow the producers to acquire loyal consumer base and earn perpetual profits. This lack of customer relationship would lead to loss of customers and consequent loss of market position would lead to erosion of profitability of Apple. Hence, sales concept is also not applicable like product and production concept in case of Apple. Marketing Concept: Baumers et al. (2016) state that marketing concept believed that marketing of products in the markets is important for the business organisation sell their products to the right customer segments and earn high profits. A comparison between the product, production, selling and marketing concept shows that the first three concepts were oriented with the profit making needs of the producers. The marketing concept emphasises on the needs of the consumers before offering them products rather than offering them what the producers have to offer them. Axelson and Svensson(2013) support this opinion and state that multinational companies like Apple follow this approach. Apple makes expensive electronic high involvement consumer goods like mobile phones and tablets. They are expensive and require a lot of investment in research and development from Apple to manufacture them. The multinational company advertises its products to attract the upper middle and upper class consumer segments who have enough disposable income to buy its products. Applicability of marketing concept: Cassia et al.(2015) state that the marketing concept stresses on advertising products to the consumers to know their needs before offering them products. This leads to the producers selling their products to appropriate customers segments, which earn them huge profits. Imai, Mizuyama and Nonaka(2015) support this view and say that multinational companies like Apple use this approach to target the appropriate consumer groups and sell their products to them to earn high profits. Applicable for high involvement products like Apple phones: The previous three approaches were not appropriate for high priced products like Apple iphone. The high involvement consumer products require huge investment from the producers towards research and development and technology. Hence, the marketing approach ensures that companies are able to target appropriate customer segments and sell products to them to earn high revenue. Cassia et al.(2015) state that the marketing concept requires the companies to invest huge amount of resources in marketing of products to reach out to appropriate consumer bases. The marketing cost adds to the cost of production of the producing companies, which cannot be borne by small firms. This leads to low sale in those small firms who cannot promote their products like multinational companies. Axelson and Svensson(2013) support them and opine that this leads to lowering of profits which eventually leads to the eradication of those small firms from the market. However it can be pointed out that though the marketing concepts applies for Apple, it can be pointed out that even for a multinational company like Apple massive promotions have bearing on its capital. Thus, though marketing concept is applicable for Apple, it erodes the capital of the company. Stiff market competition: According to Radke et al.(2014) the marketing concept has led to the big companies to spend huge amount of money to promote their products to reach out a huge consumer base. This develops stiff competition among the companies, which often spend huge amount of resources to market their products rather than improving the quality of their products. However, Mizuyama and Nonaka(2015) point out that excessive marketing has made the competition stiff for even leading companies like Apple. Hence, it can be said that marketing concept beyond the limit is not acceptable in any company. Profit concept of marketing: According to the profit concept, firms aim to increase their profit earning capacity at a specific rate in the long run rather than earning short term profit. The organisations aim to increase their efficiency and effectiveness to utilise the resources available to them and the resources acquired from acquired from external identities. Cassia et al. (2015) states that the companies like Apple today conduct open innovation to get access to resources like workforce and knowledge of other business organisations to bring about improvement in their products. This leads them to introduce more technologically advanced products which satisfy needs of more customers and earn higher return for the firms producing them. Application of profit concept in Apple: According to Mizuyama and Nonaka(2015) the firms are able to acquire higher efficiency and effectiveness, which led them to make more high quality products. This increased their profitability and competitive advantage in the end. Apple uses profitability concept to increase its efficiency and effectiveness to enhance its future profitability. Thus, profitability concept is extremely applicable for Apple. Conclusion: It can be concluded from the above discussion that the production concept, the product concept and the sales concept are not appropriate for modern multinational companies like Apple. The marketing concept and the profit concept are apt for multinational companies. References: Axelson, J. and Svensson, L., 2013. Ski transportation: A lead user study and product concept development for alpine ski equipment transportation outside a car. Baumers, M., Dickens, P., Tuck, C. and Hague, R., 2016. 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