Strategic management at APPLE Inc.
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Strategic management at APPLE Inc. Document Transcript

  • 1. Think Different BALOCHISTAN UNIVERSITY OF INFORMATION TECHONOLOGY ENGINEERING AND MANAGEMENT SCIENCES Implementing Strategic Management APPLE Inc. Rabia Iftikhar 12285 MBA 5th B Jun24, 2013 Ma'am Mehwish Shahid
  • 2. Think Different Think Different
  • 3. Think Different ACKNOWLEDGEMENTS Praise and thanks to “ALLAH” Almighty, the one testing us all at all times and making decisions about what we don‟t know and can‟t know. The report being submitted today is a result of collective effort. There are innumerous helping hands behind who have guided us on our way. Writing this report appeared to be a great experience to us. It added a lot to our knowledge. This report is one of our memorable experiences in student life. Though words are inadequate in offering thanks to our teacher but we owe our profound gratitude to Ma‟am Mehwish Shahid for stimulating our creative abilities by assigning this project to us and for her able guidance and useful suggestions, which helped us in completing the project in time. Whatever we have learnt from her and this project report has put indelible impression on our minds and it is our conviction that this learning experience will always be a source of help in our practical life and professional career. Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents, for cooperation, help, kindness and blessings, our family and friends for their help and wishes for the successful completion of the work.
  • 4. Think Different Table of Contents 1. Executive summary…………………………………………………….. 1 2. Introduction…………………………………………………………….. 2 3. APPLE Inc………………………………………………………………3 4. VisionStatemen………………………………………………………... 4 5. Mission Statement……………………………………………………… 4 6. Values………………………………………………………………….. 5 7. External Audit…………………………………………………………. 6 8. SWOT analysis for APPLE Inc……………………………………….. 7 9. Porter‟s Five Forces Model…………………………………………… 9 10. External Audit………………………………………………………… 10 11. Competitive Profile Matrix………………………………………….... 11 12. Internal Audit…………………………………………………………. 12 13. Internal Factors Evaluation Matrix…………………………………… 13 14. SWOT Matrix………………………………………………………… 15 15. The Strategic Position and Action Evaluation (SPACE) Matrix…….. 16 16. BCG Matrix………………………………………………………….. 17 17. Internal External Matrix……………………………………………... 18 18. Grand Matrix………………………………………………………… 18 19. The Quantitative Strategic Planning Matrix (QSPM)………………. 19 20. Finance/ Accounting………………………………………………… 20 21. Conclusion…………………………………………………………… 23 22. Recommendations…………………………………………………… 24 23. References………………………………………………………….... 25
  • 5. Think Different List of Tables and Figuers 1. Model 1: Showing Porter‟s Five Forces Model at APPLE Inc…………… 9 2. Model 2: Showing EFE matrix for APPLE Inc…………………………… 10 3. Model 3: Showing CPM for APPLE Inc………………………………….. 11 4. Model 4: Showing VRIO for APPLE Inc……………………………….... 12 5. Model 5: Showing IFE for APPLE Inc…………………………………... 14 6. Model 6: Showing SPACE Matrix for APPLE Inc………………………. 16 7. Model 7: Showing BCG Matrix for APPLE Inc…………………………. 17 8. Model 8: Showing IE Matrix for APPLE Inc……………………………. 18 9. Model 9: Showing QSPM for APPLE Inc………………………………. 20 10. Model 10: Showing sales ratio for APPLE Inc………………………….. 21 11. Model 11: Showing Asset Turnover ratio for APPLE Inc………………. 21 12. Model 12: Showing Inventory Turnover ratio for APPLE Inc………….. 22 13. Model 13: Showing Gross Profit Margin ratio for APPLE Inc…………. 23
  • 6. Think Different 1. Executive summary Apple Inc. is a technology company, which designs, produces and sells goods of the Computer, Music and Mobile-phone Industries. It is differentiated by its brand-perception and identification. Over the last couple of years, Apple has become a cult-brand, thanking it‟siLife, iTunes, QuickTime and iMac lines. Apple Inc.‟s short-term goals is currently increasing the sales of the just launched iPad (the most innovative web=browser in market). In the long-run, Apple aims for the top of the market, becoming the number one leader. Apple Inc. has incorporated numerous features that are unique and well known in the market today. We consider that there are several Apple products with several appealing features such as: iMac, iPod, iPhone and iPad. These products represent a revolutionary era for the development of Apple. By placing such products in the market, Apple Inc. has attracted a lot of customers in one way or another. Highly advanced technology, simplicity and design, and the sense of luxury are the main features integrated in these products. Moreover the comfort and convenience that these products provide are very crucial. “Think Different” One of the main reasons which inspired me to choose Apple Inc. is its unique, simple and luxurious image that Apple has created in the market over the years. “Think differently” which is an inspiring motto, made us believe that simplicity and creativity combined with luxury can lead to a successful and profitable company, such as Apple. Another component that we found to be challenging for us was to understand Apple‟s goals, objectives and their secret of being successful. A very important fact about Apple products today is that these products are globally spread. This has created among us the idea that Apple products are no longer luxuries but real necessities due to the technological developments. Moreover, what has motivated us most to select Apple Inc., is the way we relate ourselves with its products. Each of us being an Apple consumer has build trustworthiness relationship with the products that this company offers. Owning an iPod or iPhone today definitely will make your life easy and simple. As mentioned above, 2010 came with the launching of the iPad, which is a totally differentiated product in the market. It is a web-browser, which also can be used as laptop, and can be useful in every aspect of educational and professional areas. Its price, compared to regular Apple prices, is pretty affordable ($499), which is an incentive for more buyers to purchase. This is the main goal of Apple in the current day.
  • 7. Think Different 2. Introduction According to (OPPapers, 2012).Apple Inc is an American multinational organization located in 1 infinite loop, Cupertino, California 95014, in the middle of the Silicon Valley. It is focused on designing and developing the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc‟s main products are iMac, iPod, iPhone, and its latest advanced product is iPad, which is on the verge of creating another revolution after iPhone. Apple Inc was founded in 1976 and since then Apple Inc has been leading the way in innovating new products, however it has encountered numerous ups and downs since then. Apple Inc produced the first ever extremely successful personal computer. It has been always on the forefront of innovating new products; however it has often struggled to maintain the hold on the market share in the product line. Lately, Apple Inc has transformed its image from an inventive computer manufacturer to a fully-fledged consumer‟s electronic company. Some facts of its success can be calculated from its sales of $13.95 billion in the year 2005. In year 2005, Apple Inc had controlled 4.2% of the US market in PCs. Also, Apple iPods models had controlled 70% of the hard drive MP3 player market. Apple Inc enjoys the leading share in the handset market, generating over 71% of the industry‟s profit with 6.5% of the international handset market. Apple unveiled its first iPhone on 9th January, 2007. The most recent iPhone, is iPhone 4S, and it was announced on 4rth October, 2011 and was released 10 days later.
  • 8. Think Different 3. APPLE Inc. According to (Scribd Inc., 2013) Apple has to be one of the greatest success stories of all time. The beginnings of Apple started with Wozniak assembling a simple built computer machine. It was in the summer of 1971 Wozniak 21 and Jobs 16 were introduced to each other by a mutual friend Bill Fernandez. Wozniak had shown Jobs his simple built computer machine and this impressed Jobs to the point Jobs believed he could sell it for a profit. It was here they would form a strong friendship because they not only shared a passion for computers, but because they were both known as outcasts and for the first time they had a great understanding, admiration and respect for each other„s abilities, personality and intellect. They would begin the Apple project by selling some of their possessions: Wozniak's HP scientific calculator and Jobs' Volkswagen, they raised $1300 and assembled their first prototypes in Jobs bedroom. When the project became too big for the bedroom they moved the project into Jobs family's garage, it was on a huge wooden work bench that served as their first manufacturing base. The computers were hand built by Wozniak and first shown to the public at the Home brew Computer club. After selling a number of the machines Apple was established on April 1, 1976 and went public on December 12, 1980. Apple has maintained its great success with its ability to understand what the consumer wants before the consumer even knows what they want; Apple effectively creates wants by their constant creative innovation and unique design which is stylish, user friendly and affordable. They have also been able to create a brand in the high technology world just as Chanel has in the fashion world. People can easily recognize an apple whether it's the I-Pod, the I-Phone, the Mac Air or the I-Pad. It has become a product that defines one's identity in how they desire to be seen by society that is a person who is highly innovative, intelligent, stylish and apart of the in crowd. This is pure marketing genius. This marketing genius of Apple has seen this company outperform beyond the business world's expectations. While so many companies are struggling to break even in the current recession Apple is getting stronger by the day. Apple‟s Most Successful Products and Services iPhone 4, iPad&iPad 2, iPhone, iTunes, PowerBook G4, iPod, OS X, iMac, Quick time, Mac, Apple II. PRODUCTS and SERVICES Apple Store, Mac, iPod, iPhone, iPad, iTunes. Other Products and Services Desktops, Xserve, Notebooks.
  • 9. Think Different 4. Vision Statement It is especially important for managers and executives in any organization to agree on the basic vision that the firm strives to achieve in the long term. A vision statement shouldanswer the basic question, “What do we want to become?” A clear vision provides thefoundation for developing a comprehensive mission statement (David, 2011) a. Vision Statement of APPLE "Man is the creator of change in this world. As such he should be above systems andstructures, and not subordinate to them." i. Explanation of APPLE’s vision According to (Hamilton, 2011) Apple lives this vision through the technologies it develops for consumers andcorporations. It strives to make its customers masters of the products they have bought. Appledoesn't simply make a statement. It lives it by ensuring that its employees understand thevision and strive to reach it. It has put systems in place to enable smooth customer interaction. It has put objectives in place to continuously move forward; implemented strategies to fulfill these objectives; and ensured that the right marketing, financial and operational structures are in place to apply the strategies. 5. Mission Statement “What is our business?” is synonymous with asking the question “What is our mission?” An enduring statement of purpose that distinguishes one organization from other similar enterprises, the mission statement is a declaration of an organization‟s “reason for being.” It answers the pivotal question “What our business?” A clear mission statement is essential for effectively establishing objectives and formulating strategies (David, 2011). a. Mission Statement of APPLE “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.”
  • 10. Think Different i. Mission Statement Analysis for APPLE Inc. According to (Studymode, 2013) apple is mainly focusing at the following components of mission statement: 1. Apple may not be important to elaborate on its concern for its employees or to thoroughly outline its customers and targeted market. Apple is a trendy technology company which prides its self in providing easy to use electronics and efficiently run software systems. Because of this it is most important for Apple‟s mission statement to focus on components like company philosophy, self-concepts, and current technologies. These aspects of Apple are what make it popular and successful today. 2. Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store. 3. Apple‟s mission statement only includes descriptions of products and services and past and present technologies. 4. The mission statement from Apple is somewhat unconventional. It‟s more of a brief history rather than a summary of the corporations overall purpose. It does however paint a picture of where Apple came from, how far it has come, and where it‟s continuing to go. But for such a popular company it may be beneficial divulge into points like its self-purpose and their concernfor public image. 6. Values As stated in (appleinvestor, 2012) Apple Values are the qualities, customs, standards, and principles that the company believes will help it and its employees succeed. They are the basis for what they do and how they do it. Taken together, they identify Apple as a unique company. These are the values that govern Apple‟s business conduct: Empathy for Customers/Users Aggressiveness/Achievement Positive Social Contribution Innovation/Vision
  • 11. Think Different Individual Performance Team Spirit Quality/Excellence Individual Reward Good Management 7. External Audit The purpose of an external audit is to develop a finite list of opportunities that couldbenefit a firm and threats that should be avoided. a. External Analysis for APPLE Inc. External environment determines the present situation of Apple Inc., and also helps find out the possible influences of the political, economical, and social and the technological factors on the organization. b. PESTL Analysis for Apple Inc. i. Political Factors As stated in (CNetnews 2012) Apple Inc. has reportedly obtained 52% of its business from outside US in 2007. Due to the bad international relations, wars and terrorism might influence Apple Inc. in a huge way, and also the organization has no control over these factors. Apple Inc. manufactures a number of its parts and products from outside the US, like Czech Republic, Ireland, China, Korea and Cork. The bad political relations between US and the other world have bad outcomes for the Apple Inc. (CNetnews, 2012). ii. Economic Factors By the (Apple Inc., 2012) The global economic crisis had huge impact on Apple Inc. The inflation rate went high and so did the unemployment rate in the country, and since Apple Inc. products were viewed as luxury products, the customers started pending less on them. US dollar value keeps fluctuating, and thus again which have a bad impact on Apple Inc. products, however the company has purchased itself foreign currencies and thus, the economic effects on the company are minimized. Thus, Apple Inc. revenue has increased in the global market.
  • 12. Think Different iii. Social Factors Throughout the history of Apple Inc., two factors have been on the forefront of Apple Inc. products, the quality and the design of the product. Thus, globalization plays a very important role in Apple‟s products. As the world cannot be imagined without the gadgets, thus Apple products have marked their presence on the international market. Also, as the purchasing power of the common has risen in various markets across the world the purchasing of luxury productshave gone up, for e.g. the iPhone, iPods and the latest technology iPad. Possessing these items is considered as status symbols in many societies which have also increased the sales of Apple Inc. products. Another big social influence to Apple Inc. products is the rapid growth of the music industry, which have increased markets over the cyber space as well. The main virtual music store is the iTunes. Thus, in all Apple products have benefitted from the social factors as it has begun defining a modern individual lifestyle. iv. Technological Factors Apple Inc. has invested largely in its product research and development field and thus, Apple products are at the top of the new innovative products ranking. Apple Inc. has invested largely in its product research and development field and thus, Apple products are at the top of the new innovative products ranking. The technology has been fast changing in the world and the market for it has become gigantic, which has added to more and more competition and thus, as soon as technological change are concerned the product life cycle has been shortened drastically, which the Apple Inc. takes the advantage of by introducing newer products in the market, which ultimately lead the market. v. Legal Factors Nokia has filed various lawsuits against Apple Inc., claiming the violation of 13 additional patents by iPhone, iPad and iPod touch, this apart from US complains covering 24 Nokia patents. Also, in China Apple Inc. has been fighting the battle for its right to the iPad trademark. 8. SWOT analysis for APPLE Inc. SWOT analysis stands for Strength, Weakness, Opportunity and Threat for a particular organization, which can help in formulating a strategy for its business and can also help in analyzing its internal environment (Strengths & Weakness) and external environment (Opportunities & Threats).
  • 13. Think Different a. Strengths According to (Wharton, 2012) The first and foremost strength of Apple Inc. is its technological edge over its competitors. IPhone have turned out to be a great success and has been associated with status in many of the countries. ITunes has turned out to be a wonderful revenue generating source and since it also sells with its own tool i.e. the iPod, thus, revenue has multiplied for Apple Inc. Another strength for the organization is that for every software that Apple Inc. produces, it introduces its hardware with it too, which leads to its expertise in both the industries. Apple Inc. products are classified as luxury items, thus its products provide enough room for it, so that the competitor products are no longer a competition. The another strikingly advantage over competitor‟s products, is the design of the Apple products, and which are also simple to use. The brand loyalty of its product and its super dedicated research and development department are also its major strengths. b. Weaknesses Weaknesses are the disadvantages that are hindrance in obtaining the business goals for the organization. The poor relationship with the market than Microsoft is surely a disadvantage to Apple Inc. Another point could be that the products introduced by Apple Inc. have very short life cycle, which concludes that the research and development department has to be constantly maintained, which requires huge capital. Apple Inc. has very low presence in the advertisements, and also it has very small market occupation as compared to its main rival Microsoft. Thus, all this leads to the fact that Apple Inc. gets very less business from its home country US, and major of its business is from outside the US. c. Opportunities According to (Marketingteacher, 2012).Opportunities can affect both the present as well as the future condition of an organization. Apple Inc. opportunities are the introduction of more and more PC viruses, on which Apple Inc. can capitalize on. The second opportunity is the population of the world is growing at a rapid pace and thus, this opens the front for many new markets, also the purchasing power of a common man has increased drastically, who can be pursued or impressed to buy the luxury Apple products. The online sales of the organization are increasing and also, the bonds and the partnership with the other organizations have been on the rise in the past few years. Products such as iPhone have create a new set of potential customers altogether which can be targeted in the future i.e. the young population who have a craze for any new technology gadget (MarketingTeacher.com 2012).
  • 14. Think Different d. Threats In the past few years, many competitors have come up for Apple Inc., especially in the field of laptops, like Dell, Sony, HP, and Toshiba. Another threat could be that many of the customers have started downloading the music for free instead of purchasing at iTunes. The product expensiveness is itself a threat to the product, as substitutes at a lower price are always available. Long lasting recession could also be a threat to its products. Windows 7 software is gaining more market place after vista flopped and last but not the least, the technological advances that have been taking place every single day, is a big threat to Apple Inc. 9. Porter’s Five Forces Model Porter‟s Five-Forces Model of competitive analysis is a widelyused approach for developing strategies in many industries. The intensity of competitionamong firms varies widely across industries (David, 2011). a. Porter’s Five Forces Model for APPLE Inc. Porters Five force Model is a very powerful tool to understand the core of the power in a business or in a company. The Porter Five Force Model for Apple Inc. is shown below: Model 1: Showing Porter‟s Five Forces Model at APPLE Inc.
  • 15. Think Different 10.External Audit An External Factor Evaluation (EFE) Matrix allows strategists to summarize and evaluateeconomic, social, cultural, demographic, environmental, political, governmental, legal,technological, and competitive information (David, 2011). a. Factors Evaluation (EFE) for Apple: EFE Matrix Model 2: Showing EFE matrix for APPLE Inc.
  • 16. Think Different 11.Competitive Profile Matrix The Competitive Profile Matrix (CPM) identifies a firm‟s major competitors and its particularstrengths and weaknesses in relation to a sample firm‟s strategic position (David, 2011). a. CPM for APPLE Inc. Model 3: Showing CPM for APPLE Inc.
  • 17. Think Different 12.Internal Audit All organizations have strengths and weaknesses in the functional areas of business. No enterprise is equally strong or weak in all areas (David, 2011). a. Internal Audit for APPLE Inc. i. Internal Environment VRIO framework The VRIO framework can be stated as the value, rarity, imitablity, and organization as a whole. VRIO framework is extremely important for the internal analysis of Apple Inc organization. Resources and Value Rarity Competencies Brand Name Yes Yes Simplicity Yes No Hardware Yes No Software Yes No Model 4: Showing VRIO for APPLE Inc. Imitability Organization Yes No Yes No Yes Yes Yes No Competitive Advantage Sustained Parity Temporary Parity The above figure shows the VRIO framework for Apple Inc. For gaining competitive lead over its competitors Apple Inc should explore its internal as well as the external advantages, its internal advantages that Apple Inc paid attention to on developing iPhone, are its brand name, advanced technology, and effortlessness of using the user interface (Applecasestudy, 2009). Value The value of iPhone is that there are a number of advantages, like the highest technology, the fast and the easy usage, that the user can carry, all in one device when he/she purchases the iPhone. Rarity The technology that has been used in making of the iPhone is rare and unique, which is why it has a unique design, quality, easy to use and is also a status symbol among the youngsters however, it has been experiencing slow internet connection and call dropping problems, which can make Apple Inc lose some customers, which was found to be a problem in the chip that handled the call operations, meanwhile the publicity and status of owning an iPhone will keep the customers intact.
  • 18. Think Different Imitablity The iPhone is nearly not imitable, however there are some phones available in the market which provides some of the features same as that of the iPhone, also, the companies which have seen the flaws in the iPhone development can refrain from committing it and thus can come up with better designs, which can be a threat to Apple Inc. For e.g. Google has released its phone TMobile G1, which can be a competition to iPhone in the future (Applecasestudy, 2009). Organization Apple has tried its best to maintain its brand name and has been successful in doing so and thus is its biggest competitive advantage, however its flawless designs and quality are still replicable in the future and thus Apple should take advantage of applications market, however as with iTunes which were the best and easiest music application, same approach would not work with iPhone. Thus, Apple holds a huge and stable market however it constantly needs to update on its methods and technologies to grow further. 13. Internal Factors Evaluation Matrix A summary step in conducting an internal strategic-management audit is to construct anInternal Factor Evaluation (IFE) Matrix. This strategy-formulation tool summarizes and evaluates the major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas.
  • 19. Think Different a. IFE for APPLE Key Internal Factors Weight Rating Weighted Score Strengths iTunes Music Store is a good source of revenue, especially with the iPod and the availability on Windows platform. 0.15 4 0.60 Apple‟s niche audience provides the company with some insulation from the direct price competition. 0.10 3 0.30 Revamping desktop and notebook lines. 0.10 3 0.30 Low debt—more maneuverable. 0.06 4 0.24 Developing own software and hardware. 0.14 3 0.42 Good brand loyalty. 0.05 3 0.15 Web technology can be used to improve product awareness and sales. 0.10 4 0.40 Dependency on new product launches. 0.06 1 0.06 Weak presence in business arena. 0.07 1 0.07 Slow turn around on high demand products. 0.03 2 0.06 Weak relationship with Intel and Microsoft. 0.10 1 0.10 Weak presence in markets other than education and publishing. 0.04 2 0.08 Total 1.00 Weaknesses Model 5: Showing IFE for APPLE Inc. 2.78
  • 20. Think Different 14. SWOT Matrix The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important matching tool that helps managers develop four types of strategies: SO (strengths-opportunities) Strategies, WO (weaknesses-opportunities) Strategies, ST (strengths-threats) Strategies, and WT (weaknesses-threats) Strategies (David, 2011). a. SWOT Matrix for APPLE S-O Strategies • Increase awareness through the web of the immunity of Mac products to worms and viruses. (S5, O1) • Advertise using individuals that will link Generation X & Y to the iTunes and other related products. (S1, O2, O4, O5, O6) • Using movies and music groups that are geared towards Gen X and Y to promote computers and laptops. (S3, S5, O2, O5, O6) S-T Strategies • Increase and promote the compatibility to Window operating system. (S5,T1) • Promote the originality of Apple computers and the different style and stable system that is slightly more but worth the price difference in style, stability and speed. (S2, S5, T2, T4, T5) W-O Strategies • Increase ties with Microsoft and Intel and their products.(W1, W2, W4 O2, O3) • Promote to business the safety of having a worm and virus free computer by using Mac. (W2, W4, O1, O5, O6) W-T Strategies • Improve relationship with Microsoft and Intel so that companies will see them as compatible. (W1, W2 T1) • Increase productivity and turn around of high demand products to compete with Dell and HP (W5, T2)
  • 21. Think Different 15.The Strategic Position and Action Evaluation (SPACE) Matrix The Strategic Position and Action Evaluation (SPACE) Matrix is four-quadrant framework indicates whetheraggressive, conservative, defensive, or competitive strategies are most appropriate for agiven organization. The axes of the SPACE Matrix represent two internal dimensions(financial position [FP] and competitive position [CP]) and two external dimensions(stability position [SP] and industry position [IP]). These four factors are perhaps the mostimportant determinants of an organization‟s overall strategic position (David, 2011). 15.1 SPACE Matrix for APPLE Model 6: Showing SPACE Matrix for APPLE Inc.
  • 22. Think Different 16. BCG Matrix When a firm‟s divisions compete in different industries, a separate strategy often must be developed for each business. The Boston Consulting Group (BCG) Matrix is designed specifically to enhance a multidivisional firm‟s efforts to formulate strategies (David, 2011). a. BCG Matrix for APPLE Model 7: Showing BCG Matrix for APPLE Inc.
  • 23. Think Different 17. Internal External Matrix The IE Matrix is similar to the BCG Matrix in that both tools involve plotting organization divisions in a schematic diagram; this is why they are both called “portfolio matrices.” (David, 2011). a. IE Matrix for APPLE Model 8: Showing IE Matrix for APPLE Inc. 18. Grand Matrix The Grand Strategy Matrix has become a popular tool for formulating alternative strategies. All organizations can be positioned in one of the Grand Strategy Matrix‟s four strategy quadrants. A firm‟s divisions likewise could be positioned (David, 2011).
  • 24. Think Different 19. The Quantitative Strategic Planning Matrix (QSPM) The Quantitative Strategic Planning Matrix (QSPM), which comprises Stage 3 of the strategyformulation analytical framework. This technique objectively indicates which alternative strategies are best (David, 2011). a. QSPM for APPLE
  • 25. Think Different Model 9: Showing QSPM for APPLE Inc. 20. Finance/ Accounting Financial condition is often considered the single best measure of a firm‟s competitive position and overall attractiveness to investors. Determining an organization‟s financial strengths and weaknesses is essential to effectively formulating strategies.
  • 26. Think Different a. Financial Ratios for APPLE Sale Ratio Model 10: Showing sales ratio for APPLE Inc. Asset Turnover Ratio Model 11: Showing Asset Turnover ratio for APPLE Inc.
  • 27. Think Different Inventory Turnover Ratio Model 12: Showing Inventory Turnover ratio for APPLE Inc. Gross Profit Margin Ratio Model 13: Showing Gross Profit Margin ratio for APPLE Inc.
  • 28. Think Different 21. Conclusion It is concluded from the strategic management analysis at APPLE Inc. that technological industries are never easy to compete with. They have a lot invest at R&D and have to be proactive in order to compete with their competitors in the industry. As for APPLE is concerned they have been working so well as it is shown form their products. As Apple Inc. is increasing also, those other businesses are increasing and trying to do something interesting for their own good. APPLE needs to make a drastic change. They don‟t need to wait for people buy their products only when they are on sale but they need to focus more on the customer support and improve the areas they already have problems.
  • 29. Think Different 22. Recommendations Strategy 1 Open six computer retail stores (not just peripheral and accessories). Apple currently has stores opened throughout the United States with only peripheral and accessories for their computers. Adding the hardware should generate more hands-on awareness and use already established locations. This will increase product accessibility for those who wish to view items other than just accessories and increase awareness of the originality of Apple‟s products. 2 percent increase over the next 2 years in sales representatives for the computer hardware. Strategy 2 Contract music spokesperson to attract the upcoming generation who are attending high school and college. This will invoke a sense of style and linking apple with a distinctive and memorable top 10 hit. This will stay in the customer‟s awareness and influence future purchase decisions. Contracting one music spokesperson estimated $6 million. Strategy 3 Add more features to current products for greater Wintel compatibility. Features such as iTune software compatible with windows based computers, Office programs loadable from PC installation disk (This would require a software agreement with Microsoft). In late October 2003 Apple released an iTune software package that is PC ready. It will increase the United States market share at least 30 percent for the next 2-3 years. $50 million is the estimated cost for Research and Development.
  • 30. Think Different 23. References 1. David, F, “Strategic Management Concepts” 13 edition, Pearsons, 2011. 2. http://alvinalexander.com/blog/post/mac-os-x/apple-business-philosophy-missionstatement 3. http://writepass.co.uk/journal/2012/12/strategic-analysis-swot-and-bcg-matrix-of-appleinc/ 4. http://blogs.hbr.org/fox/2013/01/apple-versus-the-strategy-prof.html 5. http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html 6. http://investor.apple.com/secfiling.cfm?filingID=1193125-12-444068 7. http://tech.fortune.cnn.com/2012/11/01/by-the-numbers-apples-fiscal-2012-annualreport/ 8. http://www.apple.com/supplierresponsibility/pdf/Supplier_Code_of_Conduct_V3_1.pdf 9. http://myassignmenthelp.info/assignments/marketing-assignment-essay-writing-analysisreview-online-apple-swot-pestle-analysis/