Management 101 Presentation on Apple


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The presentation was designed by myself, while the bullets and information were pooled collaboratively from my three teammates and I. This project was built around a recommendation for a company of choice, Apple, and was my team\'s final project in our Introduction to Management class at the Wharton School.

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Management 101 Presentation on Apple

  1. 1. From “iCulture” Stems ___ _ ______ ____ “A________ Apple” Healthier ____ Lizzie Lowe Dan Maslow Alex Cesan Whitney Tagliavini Michael Mitchell
  2. 2. Thesis: Apple should continue to leverage its “iCulture” to horizontally integrate through focus differentiation Two Future Endeavors: 1) New Products – Analyze through Porter’s Five Forces 2) Go Green – Analyze through stakeholder management theory
  3. 3. History of Apple • 1976 – Apple was founded 1976 • 1991 – Smooth Success until competition from Microsoft Windows – Instead of continuing to innovate Apple sued Microsoft (unsuccessfully) and sat back on it’s old lines • 1998 – After a 7 year low stock streak, iMac released – iMac saved the company and Apple aggressively innovated • Today – New products, such as, iPod and iPhone
  4. 4. “iCulture” Continued quot;At the end of day, the whole concept of people experiencing Apple products and buying more of them is actually happening.quot; - Gene Munster, an analyst at Piper Jaffray Cos. - Apple products define an entire generation - iPod, iPhone serve as status symbols - “i” prefix has been attached to many words - Newly nicknamed iGeneration refers to Generation Y - New industry has sprung up around accessories for iPod - Nike, BMW, Gucci integrating the iPod into their products
  5. 5. Five Forces: PDA and Smartphone Industry Potential Entrants -Takes high Funding Buyers Suppliers Industry -Low transferability with -Components Standard -Competition is penalties -Established Relations on Service -Benefits for Long Term because of iPod Provider level Commitment -Few Options Substitutes -Possible but Inconvenient
  6. 6. “iCulture” Phenomenon  Apple’s three synergetic industries:  Computers – Mac sales are up 34% from a year earlier  Portable Music Players – iPod sales are up 17% from a year earlier  Smartphone – iPhone’s overperformance already Apple’s September Quarter Revenue and Earnings was Highest Ever iPhone Customer Base 50+, 6% 15-24, 31% 15-24 35-49, 31% 25-34 35-49 50+ 25-34, 32%
  7. 7. iPhone Success • Sold 1 million iPhones on September 9th – 21 days before projected date
  8. 8. Value Chain: iCar – Attractive Industry or not? Firm infrastructure Support Activities Human resource management Technology development Procurement Inbound Outbound Marketing logistics Operations logistics and sales Service Primary Purchases small Specializes in efficiently Distributes large Strong marketing Strong customer service department, Activities electronic components mass- producing shipments of products division and heightened but not accustomed to automobile consumer to retail brand loyalty industry electronics stores 8
  9. 9. Making of “A Healthier Apple” • Green History • Utilized Accommodative Stakeholder Management Approach » Many environmental “milestones” actually mandated by law » Ranked 12th amongst 14 largest electronics manufacturers by Greenpeace • Three Major Green Issues » Prevalent use of toxic chemicals (i.e. PVCs/BFRs) » Large amounts of e-waste (20-50 million tons yearly) » Overall apathy and lack of innovation in green product design • Steve Jobs- “A Greener Apple” » “…I was surprised to learn that in many cases Apple is ahead of, or will soon be ahead of, most of its competitors in these areas.” » Full of fluff and illogical comparisons to competitors » Few notable promises- phase-out of PVCs and BFRs by 2008/strenghten recycling efforts, etc.
  10. 10. Going Green • “iCulture” is trendy - Trend right now is to go green - Consumers becoming environmentally conscious • Going green is a new market - Demand for environmentally friendly houses, cars, food - Companies with environmentally friendly products can profit - Green products enable businesses to expand in saturated markets
  11. 11. “A Healthier Apple” The Steps to a Proactive Positioning – Progress Underway – Leverage the “iCulture” – Strategic partnerships with: • Join Conservation International • Advertise the iTune’s Song of the Week in Starbucks stores • PepsiCo’s Products 08 March 2005 –Guiyu China A migrant worker strips plastic from wires to extract – free iTunes Songs useful metals. However, this PVC plastic is toxic and when burned, a huge pollutant. on Package .
  12. 12. “A Healthier Apple” • “Greener Apple” Product Initiatives – Granny Smith® Color added to each iPod line – “Greener Apple” Song of the Week on iTunes • Joint Ventures – Starbucks – Have the Song of the Week “Green Cards” – Agreement with Artists that purchase of song on iTunes goes directly to Starbucks foundations – PepsiCo - “Performance with Purpose” – Already a member of Conservation International – Co-brand list of products » Quaker Oats Oatmeal, Gatorade – Free iTunes Song with purchase and 10% of proceeds go to Conservation International