Victory Group Presentation on Management

8/8/2019 Victory Group Presentation on Management

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Victory GROUP LLC

Presented By :VICTORY Group LLC

Date : 3-10-2010

Group member:

Tan Chong How

Alice GweeLee Chai HongHew Aik HawChan King Hooi

Jonathan Leong

Helen LeowJanice LeeSiti Norasimah

Private & Confidential 1

APPLE, INC CASE STUDY


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Victory GROUP LLC

1. Introduction2. Planning :

a. SWOT

b. The 5 forces analysisc. PESTd. Strategic Growth

3. Organizing

4. Leading5. Controlling

Private & Confidential 2

APPLE, INC CASE STUDY


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Steve Jobs-Co-founder of Apple in 1976, he has played an important role in thedevelopment of the personal computer.-He also co-founded NeXT Software, inc. and served as CEO until

1997 when NeXT was acquired by Apple.-CEO of Apple and Pixar Animation Studios since 1997-Jobs is viewed as a key character for the company.

Management Style

Despite the fact that the company claims to have a partnershipmanagement style, I personally believe that Steve Jobs is leading anentrepreneurial style and highly influence the company.

Ma n ageme nt


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SWOT Analysis1. STRENGTH

Notable Brand Name in the World.

Design Innovation

Continual and Timely flow of competitive product,service & technologies to the market place.

Value added of Product and Service, such as internationalwarranty and post sales support.

Wide distribution network.

Monitoring and control of Patents, Trademark, Copyrightsand Licenses.

Variety of product and service


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WEAKNESSCertain key component are obtained from single or limitedsources: Long Production lead time Pricing fluctuation. new initial capacity constraints may exist for new technologies

Third parties partners may have financial difficult during crisisand may affect production.Substantial inventory and other asset risk.support from third-party software developers for App stores.Over depends on the performance of distributors, carriers andother resellers.High investment in high traffic retail stores and may havenumerous risks and uncertainties.


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OPPORTUNITYCreate a new mobile application economics platform :iOS platform for many income opportunity for developers and digital companies. ( music, softwaredownload )

Create opportunities to Telco for income opportunitywith mobile application.Mac communityGovernment agencies need to upgrade their PC and

servers5 billion mobile and 2 billion internet usersInnovation of design and function, it make its productto avoid the direct competition in Pricing.


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THREATRelies on a cellular network carrier to provide service for iPhone.risks associated with laws, regulations and industry-imposedstandards related to mobile communication devices.Political events, war, terrorism, public health issues, disasters

IT system failure, network disruptions and breaches in datasecurity.No single patent or copyright is solely responsible for

protecting the company products.

Stock price volatile.Risks of international operations.Exposure to Forex Risk.


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1) P olitical-Legal ForcesDifferent countries legislations

Political uncertainties caused by terrorism.

The company relies on access to patent andintellectual property obtained from third partiesBeatles lawsuit against the company maynegatively affect the companys reputation.comply with the environment regulations suchas environment safe disposal or recycling.

PEST


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P EST2) Economic

Economics crisis on year 2008Low consumer spending.High unemployment in US and globallyCredit tighten by financial institute.Currency exchange rate fluctuationsInternational trade regulations.


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3 ) Socio-Cultural Forces

Internet users grow and create global social network The computer and internet usage is growing worldwide and is agood source of opportunities for the computer industry.

Customers had become more experienced and computer literate.Education has become a primordial issue for the newgeneration, which is a key factor for the companys business.

PEST


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4) Technology

New technology is evolving rapidly.Internet availability and speed is growing.2 billion users are connected.High demand for new PC and laptop.More innovative and superior technology

products are demanded.

PEST


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10/3/2010 14

The 5 Forces Management


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Threat of RivalryCompetitors on iphone : Google Anthroid,

Nokia, Samsung, HTCMac : PC price cut by other CompetitorsApp Store / iPod : other digital companies

provide free peer2peer music and videodownload


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Bargaining Power of Suppliers

Limited Suppliers for certain raw materials,components and servicesOutsource contract problem look for bestquality with low priceSuppliers manpower problemFinancial crisis of suppliers delay of the

products delivery


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Bargaining Power of CustomersAlternative choicesPrice sensitivityIncreasing markets in developing countriesMore new branding from Competitors, ie.Google, HTC, Samsung, NokiaMore incentive by other Telco or Vendors,ie. Blackberry


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Threat of New EntrantsImitator selling similar products at a lower

price ( China phones )Telco strategic alliances.Existing Mobile phone players.High fixed cost to enter Software companies (Google and Microsoft)will enter the market


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Threat of SubstitutesOther Smart phone: AndroidOS : Window 7PC users also have good software for designing ( Macintosh )NetbooksMore offers by competitors to switch fromMac to PC


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Growth Strategies - Intensive Growth

a. Ma rketPenetr a tion

b . ProductDevelopment

c . Ma rketDevelopment :

1 . B RIC :B

r az

il, Russia

, India

,Chin a

Diversification

TelecommunicTelecommunications :ations :iPhoneiPhoneX X

iPhoneiPhone andand

iPadiPad

US ( 273 retailUS ( 273 retailstores ): openstores ): openmore storesmore stores

Current

Market

New

P roductCurrent

New


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Growth Strategy Integrative Growth

H orizontal

Downstream

UpstreamS upply sid e : Outsourc e to

3 rd pa rti e s

B ackward

Integrationa ) Vertical(Growth opportunities)

b ) Horizontal(Merger & cquisition)

1. NEXT : $404M

2. PA Semi $278M

3. Quattro Wireless$275M,

Unbundling Outsourcing

(Strategic partnerships/ aliances:

1. AT&T : US

2. Maxis, Digi : Malaysia

ForwardIntegration :

1. Apple Stores


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B oston Consulting Group Matrix

S tars Question Mark

Cash Cow Dog

A pp Stores

/ iPhone( +266% )

A pple TV, A pple TV,Mac DesktopMac Desktop

(( --23% )23% )

iPhoneiPhone / /

iPodiPod

MacMac

productsproducts

High

Growth Rate

Low

Market ShareHigh Low


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2010 Annual Report(sales in Million )


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OrganizingApple is high employee empowerment Focus on R &D, Marketing

Product PatentApple is Decentralization managementmodel Outsource manufacturing, ie. iPhone Manage Product Process


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Leadership of Steve JobsIntuitionTransformational LeadershipSituational Approaches Leadership StyleAggressive and demanding personality.Enhances the motivation, morale and performancefollower group.His Leadership creates valuable and positive

change to his followersHe is Focus, Passion, Innovation, Involvement andeffective in communication.


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Controlling


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Recommendations

franchise retail shop to create the new income

Develop leadership whether from internal or external due to SteveJobs Health.Efficiency control and monitor of stock/inventory. Upgrade existing

product to become new version. Eg : iPad 16G, 32G, 64GTo lobby the host country government in getting the legal support

for its product. Eg : China their IPR is infringed ( iphone design ).Engage third party professor to test and certify their product to

prove that their product is more safety than other competitor product. Eg : To develop cordless device.Enhance strong in R&D develop & innovative their new & current

product.More efficient communication with vendors.Create Partnership with Intel and Apple to provide IOS and WindowOS.To diversify their market to various region clear the seasonal

backlog and increase revenue.


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Conclusions

Focus Differentiation Strategy.The organization apply decentralize to employeeempowerment it will directly increase the efficiency& effectiveness of is employees.

The key success factor of Apple is :- Technology innovations- Interactive is customer relationship management- ethically honestly manner and in full compliancewith all laws and regulation.

Documents

Victory Group Presentation on Management