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Kylie PollackMentor: Scott DelantyHilton College of Business Administration Accounting Department
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United States continual shift toward increasingly service-based economy.
Major effects on U.S. GDP.
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Personal Consumption + Gross Investment + Government Spending + (Exports-Imports)
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Terms of chained dollars of the year
2009.Allows for
comparability among years by
adjusting real dollars to account
for inflation.
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2016 Third Quarter
Services in Comparison
to Goods
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Among these companies is Apple, Inc.
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Company of Focus: Apple, Inc.
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Discover how major companies, such as
Apple, Inc., contribute to the
service-based economic shift.
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Discover how major companies, such as Apple, Inc., change
their internal segments, reporting,
and managerial systems to
accommodate this shift.
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§ What is your job within the company?
§ How long have you been employed with Apple, Inc.?
§ Are you aware of the statements made about Apple looking to shift consumer perception of Apple to be a service-focused company?
§ Do you agree that is the direction the company is heading?
§ If yes, how does your job change to accommodate this shift? Does it not change at all?
§ How do you predict inventory levels to change as a result? How will the change in inventory affect the resources previously allocated to the manufacturing of this inventory?
§ How does budgeting for the corporation change based on this shift? Is more cash being allotted to the service segment?
§ How are other resources being allocated differently to grow the service segment?
§ How does the company predict revenue to grow with the increased focus on services?
§ Is it anticipated that new segments will need to be formed to break down the service segment in the future to allow for clear allocation of resources?
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Black, Gregory and Angelica Bahl. "Price-Naive Consumers in a Service-Based Economy." Atlantic Economic Journal, vol. 39, no. 1, Mar. 2011, pp. 101-102. Retrieved from
<http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?vid=55&sid=3f38a178-f127-4fb1-aab7-5b96b7c82464%40sessionmgr120
Cao, Lam and Albert Yoon. "Gross Domestic Product by State: New Statistics for the Fourth Quarter of 2016 and for 2016, Revised Quarterly Statistics for 2013 through the Third Quarter of 2016, and Revised Annual Statistics for 2013–2015." Survey of Current Business, vol. 97, no. 6, June 2017, p. 1-5. Retrieved From
<http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?vid=61&sid=3f38a178-f127-4fb1-aab7-5b96b7c82464%40sessionmgr120>
Levy, Adam. “The Biggest Threats to Apple’s Service Business.” Business Insider, July 15, 2017. Retrieved from
<http://www.businessinsider.com/apple-stock-price-biggest-threats-to-services-business 2017-7>
Molla, Rani. “Why Apple’s Services are so Valuable.” Recode, May 3, 2017. Retrieved from
<https://www.recode.net/2017/5/3/15523268/apple-services-business-revenue-growth>
Short, Doug. “Charting the Incredible Shift from Manufacturing to Services in America.” Business Insider. September, 2011. Retrieved from
<http://www.businessinsider.com/charting-the-incredible-shift-from-manufacturing-to-services-in-america-2011-9>