Apple Incorporated

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Apple Inc.

Apple Incorporated

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Class

Course

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Apple Inc.

Introduction

Apple Inc. is an American corporation that is a designer and seller of electronics which

include software’s for personal computers. Apple Inc. is one of the world’s best known

technology company that deal with the design and development of personal computers

consumer electronic such as the smart phone and the table and other software for running the

computer devices. Apple is best known for its products that include! the i"od i"ad i"hone and

the #acintosh computer $%chneiders &'11 p. 1(). In addition there is apple is recogni*ed for the

#ac +% ,. Apple was established on April 1 1-/ in California after which it was incorporated

in 1-. Initially it was known as Apple Computer Inc. and this continued for a period (' years.

0ater on the word Computer on the company name was removed in the year &''. 2his

happened at the same time the company was shifting its focus from personal computers to the

now much growing area of consumer electronics.

1. Apple External analysis

2he %martphone 2ablet Industry

In recent years Apple has become a ma3or player in the global %martphone tablet industry

with a loyal consumer growing base. 4or instance in the year &'11 had a total of (5 stores in

about ten countries worldwide. #oreover apple has a wide presence in the online market with

online stores. Apple is also among the ma3or corporations which are traded in the stock e6change

by measure of the market capitali*ation. In revenue and profit terms Apple has become one of

the world largest technology corporations and more #icrosoft and 7oogle combined $8ach

&'' p. 19).

2he idea behind the development of the smartphone and tablet technologies has been in

e6istence for a while but their introduction into the consumer electronics market has become

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Apple Inc.

serious within the last two years. 2he best e6ample to illustrate this is the Apples’ i"ad and

i"hone which have revolutioni*ed the tablet and the smartphone markets ever their launch into

the market. It has been predicted that tablet and smartphone industry will continue to grow in

sales to about ('' million by the year &'15 $%chneiders &'11 p. &). 2his means that technology

firms such as Apple will continue to grow since they need to e6pand in order to meet the

growing demand. Currently this industry is considered enormous and with the forecast of the

industry is now so big and with such immense growth continued immense growth it is e6pected

that more firms.

Apple’s "roducts

• 2he i"od: 2he i"od is one of the most successful products for Apple computer. 2he most

recent i"od is available 78 which has the capability of playing both audio and video

files.

• 2he i"hone : 2he i"hone is evolution to the area mobile communication which designed

to combine email mobile phone internet as well as other information services. 2he

i"hone has been designed as a consumer electronic device that has all things in one place.

• 2he #ac mini : 2his is the company’s lowest costing desktop computer. It has become to

be widely used globally for both leisure as well as business.

• 2he i#ac : 2he i#ac is designed using the same idea 3ust like the original #acintosh

personal computer which is that both the computer as well as the monitor is within a

single unit. Currently the i#ac is the third ma3or design widely used globally and is

always upgraded as time passes together the changing needs of the consumer or the end

users $"ark ;ong < #oon &'1& p. ().

#erging =merging Industry

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Apple Inc.

Apple Inc. is a ma3or player within several very competitive markets which include the

personal computers with its #acintosh consumer electronics with its i"od and i"hone. Apple

computer is engaged in the distribution of digital content which is owned by a third:party by

using the online music store called i2unes %tore. It is important to take note of the fact that this

area of content distribution is e6tremely competitive and hence re>uires aggressive marketing

strategies. 2he company has gained the reputation as a ma3or technology innovator in the area of

consumer electronics and personal computers. Apple Inc. has a belief that a sufficient investment

in the area of research advertising marketing and development is very critical in its efforts to

remain relevant as well as competitive in the highly technological market $8ach &'' p. &5).

Apple’s Competitor Analysis

Apple computer is faced by very tough competition from all areas of the technology

business. 2he consumer electronic markets software markets personal computers and other

peripheral products have become e6tremely competitive. 2he main features of the fast growing

technology markets which include both software and hardware is that it has substantially grown

in the ability as well as use of digital electronic products such as the smart phone and tablets and

desktop computers. In the recent years the aspect of price competitions in the technology market

has become more intense. #ost of the competitors of Apple Inc. tend to sell their personal

computers which use the operating systems of other developers. 2his has had an impact on their

performance in that their prices have been greatly reduced as well as the market share. 2he ma3or

factors of competition include! "rice ?elative "erformance "roduct @uality and ?eliability

Design Innovation Availability of %oftware "roduct 4eatures #arketing and Distribution

Capability %ervice and %upport and Availability of ;ardware "eripherals.

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Apple Inc.

+pportunity and 2hreats to the Industry

2hroughout the whole of anuary &''5 Apple opened more than 1'& retail stores.

Although these e6pansions were beneficial most of the Apple retail stores are negatively

affecting the businesses of the resellers and this can cause their downfall $Cusumano &''B p.

&). 2his can have a much significant impact on Apple since the resellers account for more than

5' of the domestic sales. 2here are many >uestions going around as to why Apple holding a lot

of cash. the aspect of having plenty of cash reserves might imply that Apple computer is not in a

strategic position as to how to invest the cash and this can lead to the rise of a negative

perception on it future potential investment.

Apple is among the ma3or technology companies where the growth as well as the fortunes

of the company always appears to be closely connected to the person in charge. 2he visionary

talents which are associated with %teve obs contribute to growth and success of the company.

2herefore the news of cancer surgery on %teve ob and subse>uent demise might have lead to

the rise of succession problems and perception of a not so bright future for the company.

%martphone and 2ablet Industry 0ife Cycle

2he growth of the smartphone and tablet industry can be best emphasi*ed by this fact

that it took the radio about (B years to get to 5' million users but it has taken the tablets and the

smartphone only 1year to get to 5' million users $IC;A# &'11 p.((). 4ollowing the launch

of the i"ad one of the ma3or tablets many other technology companies sprung to design and

produce tablets and this has led to the increase as well as growth of the smartphone and tablet

market.

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Apple Inc.

Apple’s main Competitors

GOOG E 7oogle Inc.

HPQ E ;ewlett "ackard Company

RIMM- ?esearch in #otion 0imited

+thers in the 2echnology Industry E "ersonal Computers

Competitor Dynamics

Apple computer has an e6pectation of intensified competition as more and more

competitors have began to imitate Apple’s marketing strategy by using introducing products of

almost similar >uality and employ the marketing strategies that Apples uses. A few of the current

potential competitors have a lot of resources at their disposal which gives the ability to become a

formidable force against Apple in the coming future. +ne of the ways they have started to use

their strength in their efforts to increase their market share is by selling their products. 2here is

no assurance that ma3ority of these technology companies will continue to offer products as well

/

AAPL GOOG HPQ RIMM Industry

#arket CapF 5(1.(58 1-.998 9.598 /.198 5&B.598

=mployeesF /'9'' ((' (9-/'' 1/5'' 1'/.'

@uarterly ?ev 7rowth 5B.-' &9.1' :.'' :&9./' &9.('

?evenue 19&.(/8 (-.-B8 1&9.-B8 1B.998 19&.(/87ross #argin 9(.-5 /9.BB &(.&9 (5./ 9(.-5

+perating #argin (5./- (&.11 B.91 1'./- (-.&/

Net Income (B./&8 1'.B(8 5.-98 1.1/8 NGA

http://finance.yahoo.com/q?s=AAPL

http://finance.yahoo.com/q?s=GOOG

http://finance.yahoo.com/q?s=HPQ

http://finance.yahoo.com/q?s=RIMM

http://finance.yahoo.com/q/in?s=AAPL

http://finance.yahoo.com/q?s=AAPL

http://finance.yahoo.com/q?s=GOOG

http://finance.yahoo.com/q?s=HPQ

http://finance.yahoo.com/q?s=RIMM

http://finance.yahoo.com/q/in?s=AAPL



Apple Inc.

as services which are competitive in the market. Apple computer may be re>uired to address the

issue of price competition where it would end up lowering it prices in order to deal with the

competition of from the other companies $IC;A# &'11 p.&-).

Issues that Apple is not aware in the 2echnology Industry

2here are several issues that Apple is not aware of within the technology industry. %ome

are related to and affect the users on a daily basis such as the troubling issues with Hi:4i in the

company’s operating software the +%, 0ion. 2he i"hone (.& which is used on the i"ad does not

renew the D;C". 2here are common problem with the Apple #ail. 2hese are issues that appear

to be minor but tend to have a profound effect on the future perception and eventually

performance of the company in terms of sales. 2he fact that Apple products are designed for the

high end market has led to the emergence of negative image of Apple as more and more people

see it as a company that is for the select few. 4or the company’s competitors this is an advantage

as they have started to make consumer electronic products that target the different consumer

purchasing powers in the world.

2. Apple Internal Strategic Audit

Apple’s 4inancial Data

The Annual Financial Data



Apple Inc.

Period Sep !" #$$ Sep %" #$# Sep &" ##'

Total Re(enue $#)"%'"### *&"&"### %"'#&"###

Cost of ?evenue /99(1''' (-591''' &5/B('''

Gross Pro+it %!")$)"### &"*)%"### $,""###

+perating =6penses

?esearch Development &9&-''' 1B&''' 1((('''

%elling 7eneral and Administrative 5--''' 551''' 919-'''

2otal +perating =6penses : : :

Operatin Inco.e or Loss !!",'#"### $)"!)&"### $$",%#"###

Income from Continuing +perations

2otal +ther IncomeG=6penses Net 915''' 155''' (&/'''

=arnings 8efore Interest And 2a6es (9&'5''' 1B59'''' 1&'//'''

Interest =6pense : : :

Income 8efore 2a6 (9&'5''' 1B59'''' 1&'//'''

Income 2a6 =6pense B&B(''' 95&''' (B(1'''

#inority Interest : : :

Net Income 4rom Continuing +ps &5-&&''' 19'1(''' B&(5'''

Non:recurring =vents

Discontinued +perations : : :

=6traordinary Items : : :

=ffect +f Accounting Changes : : :

+ther Items : : :

/et Inco.e &"'"### $%"#$!"### )"!&"###

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Apple Inc.

"referred %tock And +ther Ad3ustments : : :

/et Inco.e Applica0le To 1o..on Shares &"'"### $%"#$!"### )"!&"###

2he Currency is in % Dollar

Apple’s Inc. 4inancial "ro3ections

Apple2s 3arnins

3sti.ates

1urrent Quarter /e4t Quarter

#$ #$!

Avg. =stimate 1'.&B 1'.99 9/.B 5(.-(

0ow =stimate B.-' B.5- 91.5- 9B.(/

;igh =stimate 1&.51 1(.(/ 51./' /9.'/

Apple2s Re(enue

3sti.ates

1urrent Quarter /e4t Quarter #$

#$!

Avg. =stimate (.5&8 (B.B&8 1/&.9'8 1-5.(/8

0ow =stimate (9.9'8 ((.B(8 15(.98 1.--8

;igh =stimate 91.98 9.158 19.918 &&B.(-8

Jear Ago %ales &B.58 &B.&8 1'B.&58 1/&.9'8

%ales 7rowth (1.(' (.(' 5'.'' &'.('

2he Currency is in % Dollar

Kalue chain analysis

8y delivering superior electronic products to its consumers Apple has managed to not only maintain a

constant customer base but continues to e6pand its market share in the smartphone and tablet industry. 2his has led

to the growth of its ca sh re se rv es as we ll as ga in s a mu ch co ve te d po si ti on in th e

t e c h n o l o g y w o r l d . = v e r y A p p l e s t o r e i s d e s i g n e d t o c r e a t e a c u s t o m e r

f r i e n d l y w o r l d w h e r e t h e c u s t o m e r s h a v e a n o p p o r t u n i t y t o i n t e r a c t a n d

e6 pe ri en ce th e pl ea su re th at co me s wi th th e Ap pl e pr od uc ts . In order to identify

which areas that Apple has developed and established its critical capabilities an analysis of the value chain linkages

is essential. 2he primary activities of Apple consist of production sales and marketing product design consumer

and legal services. 2he product design and technology activity forms the base or the core the Apple Corporation.

Apple Inc. has a histo ry of desi gning technology tha t i s cutting:edge. Apple is focused

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Apple Inc.

on being the best as well as the first technology firm globally. Its Apple operat ing system is

globally recogni*ed and appreciated as a more reliable as well as a stable +%

compared to Hindows. %ince Apple has for long re3ected the calls to make give out

its +% license to othe r firms. 2he combina tion of both the hardware and software

forms the cornerstone of the production process for Apple Inc. 2his is a competitive advantage

for the firm. Although not all of its products introduced have been successful Apple continues to

believe in the component production process as a natural e6tension of the product design

process.

Internal Configuration

2he main goal for Apple Inc. is to bring new customers. In addition it involves the

e6pansion of the e6isting base of loyal consumers buying working towards increasing the sale if

different electronic products. 2hrough the approach of running its stores as well as designing the

stores within locations that have high traffic of consumers Apple Inc. is in a position to

effectively control the e6perience of the customer as well as increase the attraction of new

customers. 2he manner in which the Apple stores are designed is meant to make simple and to

enhance how the products are presented.

2he 4inancial and ?esources Appraisal

8y the year &'11 Apple had about /'9'' permanent employees who work on a full time

basis &-'' temporary employees. In &'11 the company had total global revenues of 1'B billion

dollars up from /5 billion dollars in the year &'1'. 2he fortune maga*ine listed Apples as the

most admired corporations in the united states in the year &''B and globally it is still the most

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Apple Inc.

time to come. In addition this is e6pected to have an influence in the politics as

well as management decisions of the firm in the coming decades. 2his is e6pected

to maintain the growth and the market share of the firm in the period beyond &'11.

nowledge #anagement

In the end the configuration of retail stores has changed into different si*e so as to

accommodate demands of the market. 2he retail stores use competent e6perienced as well as

knowledgeable staffs that provide product information to customers on the different products

available. 2he stores provide a variety of hardware software and other products for computing

that have been approved by third party. In addition the Apple retail stores offer platform where

Apple Inc. is in a position to provide speciali*ed service as well as personali*ed training.

Apple’s ?eputation with %uppliers

2here is the threat of a strong supplier power. 2he need to be supplied with low cast

materials for manufacturing of smartphone and tablets is very central to most technology

companies like Apple. 2here are only very few manufacturers who are currently manufacturing

processors for smartphone and tablets therefore this gives the manufacturers as well as suppliers

a lot of weight in the industry. 2here is the threat from the power of the buyer. 2oday the trends

in the technology world have left the buyer with no choice when it comes to buying smartphone

and tablets.

4ocus on Apples Internal %trengths and Heaknesses

Apple is a designer a developer as well as a marketer of several computing product and

service. Apple sells its electronic products to an array of different consumers such as the

education consumers creative professional consumer and government and business customers.

Hhile the computer tends to showcase a variety of computing products as well as carry out

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Apple Inc.

business at different levels it can be challenging to specify what the company best at. 2here

company has been diversifying greatly and most say can cause the down fall for the company.

2hroughout the whole of anuary &''5 Apple opened more than 1'& retail stores. Although

these e6pansions were beneficial most of the Apple retail stores are negatively affecting the

businesses of the resellers and this can cause their downfall. 2his can have a much significant

impact on Apple since the resellers account for more than 5' of the domestic sales.

Apple is among the ma3or technology companies where the growth as well as the fortunes

of the company always appears to be closely connected to the person in charge. 2he visionary

talents which are associated with %teve obs contribute to growth and success of the company.

2herefore the news of cancer surgery on %teve ob and subse>uent demise might have lead to

the rise of succession problems and perception of a not so bright future for the company.

Apple’s Competitors

Apple knows that at the moment it has a competitive advantage from the point of

innovation as well as being in a position to integrate its whole solution that involves software

hardware software and content distribution. A few of potential current competitors do have

considerable hence they are in a position to offer similar products and services at a cheaper price.

2he future of Apple Inc. operating results as well as financial status is critically dependent on the

ability of the Company to continue to improve its line of computing products. Apple plans on

preventing or reducing the potential risks that are caused by the growing competition by closely

working with the key suppliers on the planning on the introduction of new products introduction

new and better inventory strategies and planning on manufacturing internal as well as e6ternal.

A Culture of 4ast:"aced Hay of Horking

He are living in a global village and the need for people to become more connected and

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Apple Inc.

in constant contact is greatly growing as a result of the growth of the internet. "eople have

e6perienced how technology can make working or sociali*ing become sweet cost effective as

well as efficient and therefore there is constant growing demand for even better technology

devices such as smartphone and tablets.

Apple and oil companies

2here are many >uestions going around as to why Apple holding a lot of cash. the aspect

of having plenty of cash reserves might imply that Apple computer is not in a strategic position

as to how to invest the cash and this can lead to the rise of a negative perception on it future

potential investment.

Apple Inc. is a ma3or producer of different consumer electronic products which include

the #acs the i"od the i"hone the i"ad as well as other softwares. 2he company’s cash reserves

have been reported to increase to about M5.B/ billion when it was announced this uly. +n the

other hand the nited %tates government made earnings that reached only M(.B/ billion which

means Apple made more cash the most powerful government in the world by over two billion

dollars. In the similar manner Apple has been reported to have a lot bash reserves compared to

some oil companies such as =66on #obil Corporation. In addition Apple has been reported as

having a higher market capitali*ation than =66on #obil.

3. Stakeholder engagement

A stake holder can be defined as individuals that have invested in shares in a business or

industry. At Apple Inc stakeholders include preferred and common shareholders apple

employees lenders suppliers software developers customers music industry players

manufacturers and nongovernmental organi*ations. 2he coordination of the above and their input

is what makes the organisation be among the best performing in the business front today.

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Apple Inc.

In the recent past Apple has made considerable efforts in involving stakeholders more

with the environmental issues being the main agenda. Apple made efforts and forged an alliance

with N7+s in China to better its supply chain management. It is known to be very secretive and

reacts slow to criticism from outside. Increased pressure from environmental N7+s from China

and the nited %tates loosened apple rigidness prompting a review of their strategies. Apple’s

supplier code of conduct enlists rules on control and ha*ardous and other pollutants as a way of

involving stakeholders the environmental cleanliness. =very supplier is vetted seriously to check

environmental friendliness and preserve its reputation. 2he measures have however not worked

as e6pected as criticism on the way the environmental issue is handled is dissatisfactory.

Information from some its supplier’s states that high density "C8s used in i"hone and i"ad

re>uire a lot of power and water to manufacture and large >uantities of chemicals. 2he process

results to air and water pollutions among other environmental violations. Apple in response to

the allegations has provided tables that will be used to solve the issues. 2hey have planned to

visit their various players in the supply chain to ensure the issues are resolved which is a good

start than the silence that loomed previously.

=thics approach

=thics can be defined as the code of conduct of an organisation in the day to day

businesses. It can also be termed as best practice in the corporate world. Apple is a highly ethical

organisation. @uality touch is in all ideologies that form the organisation. 2he organi*ation’s

code of conduct has been put to a test after the 4o6conn factory saga. 4o6conn is a ma3or Apple

supplier that manufactures i"ad. A certain e6plosion occurred in the organi*ation’s premises in

china killing two people and in3uring several. 2he saga put Apple on the limelight after a 8ritish

news paper secretly investigated the supplier and discovered some inconsistencies. Horkers

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Apple Inc.

reported long working hours in very crowded dorms. 2his statement does not reflect apple’s code

of conduct. ;owever Apple conducts over three hundred audits a year on employees where

violations like involuntary labor underage workers and improper disposal of ha*ardous waste

are among issues of ethical behavior that crop up.

Apple has in turn spurred some changes to compliment the audits. 2hey have championed

for continued performance improvements and better working conditions. 2hey have also

increased the number of audits every year to eliminate any chances of in appropriate corporate

behavior that might taint their image. Apple has also trained very many workers about their

rights and methods of in3ury prevention among others to help promote best practice in the

organi*ational environment. In a move to ensure that best practice is adopted maintained and

upheld Apple forced some of its suppliers to reimburse more than M/. million to employees

who have been underpaid or charged irrelevant fees. Apple is a global leader in underage labour

prevention a good reason why ethics is part of the organisation.

?eputation management

2his is a process where actions of one entity are tracked and the opinion of others in the

business environment. ?eputation in the business world today is a basic performance

determinant in the corporate world today. ?ecent developments in Apples supply chain has seen

the organi*ation put on the spot over various issues. 2he 4o6conn saga especially has tainted

Apples reputation seriously not forgetting the recent allegations of trackers being inserted in

i"hone’s.

Crisis reputation management

Apple has been highly critici*ed for its slow response to issues. In the management of

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Apple Inc.

crisis the organisation has resulted to transparency a reputational tool. 2his is a move that is

meant as a way round the crisis rather than defending itself. Apple hopes through this the world

will reali*e that they hold with high regard values that are considered ethical modern business

practices. 2he organisation has even gone beyond the detailed supply chain reports by asking the

fair labor association to carry out special voluntary audits of its final assembly suppliers. It is

important to note that the today corporate world does not 3ust look at the way best practices are

upheld in the organi*ation but also the consistency of the same organisation in upholding the

modern business values. 2he use of transparency as a reputation tool has led to increased

reputation audits and other processes that are aimed at ensuring the corporation’s image is not

tainted.

C%? concepts

2he corporate social responsibility is an integral part of the business world today. Apple’s

breakthrough was in the uni>ueness of game changing product few years ago. 2he i"ad i"od and

i"hone are some of its products scrutini*ed heavily about how they are made the working

conditions of the companies they contract and their corporate practices. ?esearch has established

that consumers define corporate social responsibility as an important characteristic while making

decision about a product thus it is interesting to e6amine Apple’s C%? considering it has a

prestigious status in the world.

2he corporate social responsibility today is mostly focused on restoring the degraded

environment to its purity. Apple created a website called 7reen my apple to the core to help

reduce the use of ha*ardous waste to the environment. 2he initiative was founded in China by

N7+s working together with Apple. 2ransparency is another C%? strategy used by apple as it

helps the private consumer evaluate the organisation more easily. 2his also creates a positive

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Apple Inc.

attitude among consumers towards the corporation.

Corporate social responsibility that is related to the brand helps in its identity. Consumers

today are very informed and will most likely go for product that they feel are cater for their

beliefs. Apple has been able to fit C%? to their brand making them gain the customer’s

confidence. 2he organisation is the most popular in the world today after several new

innovations that have changed technology. 2his only means that more corporate responsibility is

re>uired as demanded by the consumer today. %everal steps have been taken by the organisation

to as corporate social responsibility. 2his involves communicating to the consumers on various

environmental friendly practices among other things. ?eputation strategies of the company have

been integrated with the social responsibility to increase their efficiency. Corporate social

responsibility plays a crucial role in marketing strategies because of the customer’s perception of

the company. It is therefore important to show the other side of the AppleO like Apple

incorporation.

%takeholder applications and integration

2he competitiveness of the business environment has forced many organi*ations to come

up with various strategies to gain a competitive edge. Integration in the supply chain is very

common in the business environment today. Apple is no e6ception and has integrated with

various corporates in the industry for effectiveness. #erlin is a commercial pro3ect management

software application for #ac +% , developed in 7ermany that integrates with Apple. Kertical

integration has been Apples strategy. It has control over all aspects of the value chain where

most stakeholders are. 2he company has opted to broaden their control by including ownership

of chip manufacturers strict software standards and proprietary retail stores in their system.

Kertical integration has been bad for companies in the past as it has resulting to killing

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Apple Inc.

innovation and promoting unhealthy business practices.

Horking with partners is usually unpredictable making it a big challenge to knock out

everyone and doing everything like Apple. It is however possible with well planned strategies in

place. Innovativeness in companies will probably find a way to leverage partnerships and truly in

open platformO strategies the main challenge is how long it will take and at what cost to

shareholder value and society at large. Apple has managed to work its magic on the supply chain

and succeeded in creating harmony in its industry where it has many suppliers and others that

they contract.

Recommendations

Apple is among the global innovators making it very interesting to study and understand

its strategies. He have noted that it has shortcomings too especially in regard to responding to

issues which is rather slow. Apple strength as we saw earlier is the uni>ue technology they

posses. 2heir i"hone and i"ad are their best selling products with sales of B1./ million dollars in

&'11. It is estimated that they will gather around 1'B billion dollars this year and a1' billion

dollars income. ;owever the innovation of an +% called Android by 7oogle Inc is a big threat

because it is half cheap making it easily affordable. "rice is the biggest setback in e6panding and

maintaining a market. It is the biggest weakness that could re>uire re:evaluation because of the

future of their products. Although their product is very superior to their competitors it is wise to

note the competitors will always try to improve to match the leader hence very important

continuously improve our products.

Apple Inc is considered a marketing company making value chain analysis very critical.

#arketing a product re>uires very smart strategies that are all rounded covering the interests of

all stakeholders. 2he organisation has previously failed in trying the to do it their ownO

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Apple Inc.

approach. 2he lessons from the failures previously are >uite productive as Apple is the most

successful after implementing the integration strategy. 2hey have complemented the today’s

corporate competition basics and are firmly on top. 2he continous improvement policy is

necessary in order to maintain these standards.

2he diagram below shows a porters value chain analysis.

4ig 1. 2he value chain analysis

Culture in an organisation determines its effectiveness in service delivery as it defines

the social interactions inside the organisation. Apple’s culture of >uality products among

others principles make it the most admired organisation according to a research in &''B.

?esource appraisal is taken very seriously by the organisation. 2his helps maintain set

standards and continually improve the standards. 2he organisation has recently engaged in

increased audit on every department and player in the supply chain. 2he reports from these

audits are used to make informed decisions in approaching various problems. Apple Inc

organi*ational structure is very simple and flat. 2his makes it very easy to communicate

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Apple Inc.

the organisation. Apple has been able to successfully take control of its supply chain it is

important that the same relationship is maintained to ensure that nothing slows down service

delivery to the customer. 2he move that is aimed at ensuring suppliers adhere to the

environmental code is strategic in the overall social responsibility compliance of the

organisation. #ore persuasive strategies should be adopted to encourage the suppliers to take the

environment friendly measures on their own.

Corporate social responsibility is essential in the success of any company in the organisation

today. Apple has been critici*ed for not being sensitive to the environment. 2his forced the

organi*ation to ally with N7+s to ensure that the organisation takes the environment friendly

aspects seriously. 2he green apple initiative meant to conserve the environment is a step in the

right direction in ensuring that the organisation participates in reducing carbon footprint in the

environment. 2he management should do more than even with regard to alleged mis:treatment of

workers by other players in the supply chain. 2his is important because the customer today is

informed and is working hard to conserve the environment and will not support any brand or

organisation that does not believe in the same.

It has been noted that the mistreatment of employees is because they do not know they are a

resource. 2his has seen apple offer enlightening sessions on employee rights to ensure they are

aware they are the most important resource. 2he management should carry out 4ollow up audits

to ensure that the employees know their rights. %take holders are important in the overall success

of an organisation. Apple is among the ma3or multinationals that has successfully controlled its

supply chain where it is the ma3or player. Apple should consider even bigger challenges like

ac>uiring its competitors to gain a more competitive edge as well as e6pand. It should also

ensure that the other players in the supply chain adopt the same reputation based ideologies to

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Apple Inc.

ensure they effectively e6pand their market and gain a competitive edge over their rivals.

2he ethical approach practiced by Apple is still not very effective because cases of

malpractices among suppliers and other contracted firms are still eminent. 2he 4o6conn saga

showed that employees are being overworked. Audit reports still reveal underage employment

among players in the supply chain. 2his cannot be termed as best practice and puts the firm in

the spotlight and taints it’s the reputation. 2he firm should design ways and means of

overcoming responding to issues a lot faster than they do. 2his is because increased calls for a

more >uick response to issues can overshadow the transparency tool the organisation uses for

reputation management. Crisis reputation management is one of the shortcomings Apple

e6periences. 2he saga where the organisation was being critici*ed for inserting tracking devices

in the i"hone was one of the crises that the organisation faced. 2he consumers still have that

perception which is not good for business at the time. 2he politics in nited %tates at the time

feel their privacy is being invaded by the government because of its counter terrorism measures

that involve tapping citi*en’s phone calls. Apple did not respond >uick enough to e6plain

themselves from the allegations which did auger well with the consumers who felt some truth in

the allegations. 2he incorporation should adopt new ways of reacting to crisis in order to protect

its image.

Integration of stake holders has been one of the main strategies adopted by apple as its moves

to gain competitive edge over its competitors. 2he management should continuously adopt other

integration strategies to e6pand their portfolio as it has proved successful for Apple. 2he

corporation can also consider trying hori*ontal integration. Apple incorporation is really a game

changer in the technology arena. 2he ideologies that comes with the LIL technology revolution has

come with new ways of handling things. It is important that other corporations adopt Apple’s

&(



Apple Inc.

method as it is the beginning of another revolution in the corporate world.

&9



Apple Inc.

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Documents

Apple Incorporated