1

Subject: Strategic Management of Apple Inc.

Topic: How Apple Inc. use strategies in different parts of the organization, how they apply the process of each strategy, and their positive effect in the future on the organization.

2

The report submitted today is a result of collective efforts, there is so many hands

stand behind completing it, and thanks for the group members who work hard to give

this complete work.

Tough words are inadequate to thank you all to make this work success.

Finally, we hope that this book will be an integrated and successful and to obtain

impress of the readers.

3

In our project we start by defining what are a management, a global management, and

a strategic management means. And as we know every organization has its own

strategies, so we will talk also on how an organization uses strategies, what are the

types of these strategies, and when, where, and why they are using them.

Our project will focus on Apple Strategies and every type of strategy listed in this

project it will focus on Apple how they use them.

Also on our project we focus on the Implementation process, where it start, what is

the process APPLE Inc. must follow, and how we get a complete Implementation

process. And in order to talk about the Implementation process clearly, we had to talk

on other strategies process so we define and talk briefly on the formulation process,

and the environmental scanning.

After we define and talk about some strategies process we start defining and talking

about the role of the strategies in the different departments of APPLE Inc. and how its

affect the function of APPLE positively in the short-run and long-run term.

In the last paragraph we talk about Board of Directors and its role, how their decisions

are affect the company, and we finish our project in a small conclusion about the

benefits of the strategic management and how it positively affect APPLE Inc. with

some useful recommendations.

4

ACKNOWLEDGMENT................................................................................................ 2

Abstract .......................................................................................................................... 3

Table of Contents ........................................................................................................... 4

List of Figures ................................................................................................................ 6

Outline: .......................................................................................................................... 8

INTRODUCTION ....................................................................................................... 10

Overview of Apple Inc: ............................................................................................... 12

APPLE INC. ................................................................................................................ 12

Strategy Formulation ............................................................................................... 13

Strategy Implementation .......................................................................................... 14

1. Strategy Analysis and Formulation of Apple Inc ................................................ 15

3. SWOT Analysis for Apple Inc. ......................................................................... 16

1. Cost leadership strategy: ............................................................................ 21

Advantages of cost leadership: ............................................................................ 22

Disadvantages of cost leadership: ........................................................................ 23

2. Differentiation Strategy: ............................................................................ 23

3. Integration Strategy: .................................................................................. 24

Environmental scanning: ............................................................................................. 25

orces Model ................................................................. 26

APPLE in the Market: .................................................................................................. 27

Apple Strategies in the Market ................................................................................ 27

1. Apple Branding Strategy ........................................................................... 28

2. ............................................................. 32

A. ................................................................... 32

B. Apple Distribution Place: .............................................................................. 33

C. ........................................................ 33

D. rices and Pricing Strategy .............................................................. 34

................................................................................................. 34

Importance of strategies in HR Department: ............................................................... 35

We have two types of HR strategies: ....................................................................... 36

Creating an effective structure ................................................................................. 37

The Advantages of an Effective Organizational Structure: ..................................... 37

Management Information System (MIS) in Human Resource ................................ 38

Apple's HR Strategies: ................................................................................................. 39

5

7 Essential steps to build an effective HR Department ............................................ 39

.................................................................................................... 41

......................................................................................... 41

Role of the BOD: ..................................................................................................... 43

Conclusion: .................................................................................................................. 44

Recommendations: ................................................................................................... 44

References .................................................................................................................... 46

6

Figure 1: ....................................................................................................................... 15Figure 2: ....................................................................................................................... 20Figure 3: ....................................................................................................................... 21Figure 4: ....................................................................................................................... 30Figure 5: ....................................................................................................................... 32Figure 6: ....................................................................................................................... 35Figure 7: ....................................................................................................................... 41Figure 8: ....................................................................................................................... 42

7

8

I. Introduction

A. Introduction to Management

B. Definition of the Strategic Management and Features

C. Apple Inc.

1. Executive Summary

2. Introduction

II. Strategic Implementation and Formulation of Apple Inc.

A. Definitions for both Implementation and Formulation

B. Differences between the Implementation and Formulation

C. Process of implementation used by Apple

III. Environmental Scanning

A. definition

B. what should be scanned

C. importance of environmental scanning

D. internal/external

IV. Strategic by Departments, Apple Inc.

A. The role of strategies in marketing

1. Definition of the strategic marketing

2. Entering Apple Product the global markets

3. Long-term strategy for Apple product distribution

B. Importance of strategies in HR department

1. Apple HR strategies

2. 7 Essential steps to build an effective HR Department

3. Human Resource Information System

9

V. Role of The BOD In The Strategic Management

A. Strategic Decisions

B. Evaluation And Benefits

VI. Conclusion

A. Benefits of The Strategic Management and Its Effect On Apple Inc.

Future

B. Recommendation

10

and Controlling, those four steps defined if corporations manage itself in the right

affect the way of managing a corporation. And as we know also, the management

includes in it the marketing and innovations.

the global companies or the

manage a small corporation we can use it to manage a Global company, everything

will change when we talk about the International Management. The International

Management or Global Management is refers to the way an organization manages its

business internationally and it will be completely different from the local companies

because of the many differences available between countries. And to manage a

corporation locally or globally they must have a Strategy to keep them in the front and

always differentiated from their competitors.

The Strategies or Strategic Planning are the plans that putted by a CEO or BOD and

affect positively the performance of the corporation in the future, so we can conclude

that the strategic plans are a long-term plans that they must putted to manage a

corporation on the long-term and they must contain expectation about future

competitions, sales growth, unexpected problems that may face the corporation in the

set of managerial decisions and actions that determine the long-run performance of a

th

11

edition, Chapter 1, Page 53, 1st paragraph), it includes environmental scanning,

strategy formulation, implementation, and evaluation and control.

Objective:

Our project objective is to define what are the real mean of the Strategic Management

and the role of Strategies used in an organization; also we focus on some strategies

process like the Implementation process, define it, and make sure to deliver the right

view to the audiences.

Purpose:

The general purpose of our project is to put our audience in the action of the strategic

management and convince them in the importance of strategies in every single

decision taken by a CEO, Board of Director, or even by the Top Managers and how it

affect the organization positively on the long-run and short-run term.

Theoretical Aspect of the Project:

concept promotes a systematic approach to strategy

formulation that is founded in the mission, or purpose of the organization and tests the

implementation choices and actions of the firm against that mission. The mission

forms the direct basis for the specific targets the firm will select and attempt to

achieve. It also defines the nature, form and extent of evaluation of the firm and its

environment, as well as the nature of the corporate and business level decisions it

makes. Finally the mission defines the conditions by which the firm will determine

the success of its actions. Our theory has been taken from an online book his name is

Strategic Management and Competitive Advantag

B. and Hesterly, W.S 2010. 3rd Edition. Prentice Hall, Upper Saddle River, New

Jersey.

12

Apple Inc

the 3rd largest technology and services organization and the 2nd largest smart phones

organization in the world. According to Reuters, Apple Inc. (Apple), incorporated on

January 3, 1977, designs, manufactures and markets mobile communication and

media devices, personal computers and portable digital music players and sells a

variety of related software, services, and peripherals, networking solutions and third-

party digital content and applications.

According to Apple Info and Wikipedia websites, Apple Inc. is an American

multinational organization located in 1 Infinite loop, Cupertino, California 95014.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1,

1976. It was incorporated as Apple Computer Inc. on January 3, 1977 and was

renamed to Apple Inc. on January 9, 2007. It was focused firstly on developing and

selling personal computer, other related software product, and the electronic product

such as MP3 Player and the IPod. Apple main products are the IMac, IPod, IPhone,

and the IPad. They are the first company that creates the most successful personal

computer ever, and those are some facts about Apple success that can be calculated in

2012. As

iPhones in the quarter, representing 128 percent unit growth over the year-ago quarter.

Apple sold 15.43 million iPads during the quarter, a 111 percent unit increase over the

year-ago quarter. The company sold 5.2 million IMacs during the quarter, a 26

percent unit increase over the year-ago quarter. Apple sold 15.4 million iPods, a 21

percent unit decline from the year-ago quarter. The Company posted record quarterly

13

revenue of $46.33 billion and record quarterly net profit of $13.06 billion, or $13.87

per diluted share. These results compare to revenue of $26.74 billion and net quarterly

profit of $6 billion, or $6.43 per diluted share, in the year-ago quarter

-range planning, is

basically involves six main steps:

1.

2. Evaluating the Organizational Environment

3. Setting Quantitative Targets

4. Aiming in context with the Divisional plans

5. Performance Analysis

6. Choice of Strategy

However the process of formulation can begin using the SWOT Analysis method.

SWOT is a shortcut or abbreviation used to describe the particular Strengths,

Strategy formulation includes planning and decision making involved a company that

developing their own strategic and long-term plans, and its goals and objectives. The

formulation is to place the force before the real action, is entrepreneurial activity,

we have to focus also on that the

formulation require someone with greater skills in logic and be initiative in work. All

these points show how a formulation strategy works in the real world. But after all,

14

followed by the second step The

Implementation.

strategies, and policies are put into action after they are formulated. Those are the

general steps followed by the implementation strategy:

1. Developing an organization having potential of carrying out strategy

successfully.

2. Disbursement of abundant resources to strategy essential activities.

3. Creating strategy-encouraging policies

4. Employing best policies and programs for constant improvement

5. Linking reward structure to accomplishment of results.

6. Making use of strategic leadership

So we can see now that the implementation and formulation are two consecutive

parts, to do a correct implementation we must firstly have a good work and study the

formulation strategy very well, and without a hard work on implementation the whole

work in the formulation part will disappear.

Strategy Formulation Strategy Implementation

Strategy Formulation includes planning and decision-making involved in developing

Strategy Implementation involves all those means related to executing the strategic plans.

In short, Strategy Formulation is placing the Forces before the action.

In short, Strategy Implementation is managing forces during the action.

Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly

15

Activity based on strategic decision-making.

an Administrative Task based on strategic and operational decisions.

Strategy Formulation emphasizes on effectiveness.

Strategy Implementation emphasizes on efficiency.

Strategy Formulation is a rational process. Strategy Implementation is basically an operational process.

Strategy Formulation requires co-ordination among few individuals.

Strategy Implementation requires co-ordination among many individuals.

Strategy Formulation requires a great deal of initiative and logical skills.

Strategy Implementation requires specific motivational and leadership traits.

Strategic Formulation precedes Strategy Implementation.

Strategic Implementation follows Strategy Formulation.

Table That show the main differences between Strategy Formulation and Strategy Implementation and what are their conditions to be done correctly.

A. Apple Vision and mission Statement

In the strategy analysis and formulation we have two important parts that we must

define them before we start our work on analysing and formulating our work.

Those two parts are the Vision Statement and the Mission Statement.

The vision statement is the future vision of an organization on what they must

The mission statement is what an organization has to do in order to achieve their

goals or in other word their vision statement.

1. Apple Vision Statement

16

"Man is the creator of change in this world. He should be above systems and

structures, and not subordinate to them."

tight timeframes, at a cost that represents the best possible value to our

2. Apple Mission Statement

Apple has never published any mission statement but these points are quoted from

Tim Cook the CEO of Apple Inc. regarding Apple's business philosophy interview:

i. We believe that we are on the face of the Earth to make great products

ii. We believe in the simple not the complex

iii. We believe that we need to own and control the primary technologies

behind the products we make

iv. We participate only in markets where we can make a significant

contribution

v. We believe in saying no to thousands of projects so that we can really

focus on the few that are truly important and meaningful to us

vi. We believe in deep collaboration and cross pollination of our groups

which allow us to innovate in a way that others cannot

vii.

company, and we have the self honesty to admit when we're wrong and

the courage to change

Apple SWOT Analysis highlights the most significant Strength that Apple can

use to improve its performance in the market and the Weaknesses and the

17

Threats that the company should address it and turn it into strategies can be

used to compete it in the market, also the SWOT analysis show us the

Opportunities that Apple has in the market that differ it from its competitors.

Apple Strength (Internal Factors)

This aspect of Apple SWOT analysis shows the biggest strength that enables

the company to stand in the market and face the threats of other competitors.

1. Strong brand image

2. High profit margin

3. Effective innovation process

Apple is one of the most valuable and strongest brand images in the world, this

point in the swot analysis show that the organization able to introduce in the

market a new product and hit high sales depending on its brand image

strength, also the policy of high prices that followed by Apple, give it the

opportunity to attained a high profit margin depending on the high class

buyers in the market who will pay any amount putted by Apple to buy their

products, who give it the capability to invest in the R&D more than other

competitors. Either Apple is known for the rapid innovation, based on

(http://panmore.com/apple-inc-generic-strategy-intensive-growth-strategies),

the rapid innovation allow the organization to stay up-to-date with the latest

technologies to ensure the competitive ability.

Apple Weaknesses (Internal Factors)

This aspect of Apple SWOT analysis shows the weaknesses that affect

negatively on the business growth goals.

18

1. Limited distribution network

2. High selling prices

3. Sales limited mainly to high-end market

Due to Apple distribution policy that require on the seller or the distributor to

be recognized by the company itself and by the government of the country

who want to distribute in it, Apple has put a limitation for the distribution of

their products. Also the high selling prices policy put immediate limit on who

will buy these products and stay only between the people of the medium and

high classes. The low class people who represent the greatest part of the

market stay outside the Apple market segment who will affect negatively on

Apple revenues and reputation.

Apple Opportunities (External Factors)

This aspect of Apple SWOT analysis shows the opportunities that the

organization can use them in order to stay in the front of the market.

1. Distribution network expansion

2.

3. Creation of new product lines

To stay the leadership of the technologies market and to stay in the competition

with other competitors, Apple can expand its distribution network so they can

enter with a strong base into new markets. Also the rising of demand for Tablets

give the company an opportunity to create a new specification

that allow it to stay in the competition with other companies. Either they can see

what the needs of the markets and create a new product that differ Apple from its

competitors. This dimension

19

company has major opportunities for further growth despite aggressive

competition.

Threats facing Apple (External Factors)

This aspect of Apple SWOT analysis shows the threats facing the company

from various sources such as competitors. Threats can affect negatively on the

financial returns of the company. The most significant threats that are

affecting Apple:

1. Aggressive competition

2. Imitation

3. Rising labor cost in countries where Apple plants are located

Apple competes with firms like Samsung, which also use rapid innovation.

strong fundamentals to maintain the competitive advantage. Also Apple face the

easy for any competent company to imitate Apple mobile

design. In addition, the rising cost of the labors in countries where Apple are

located, will face the company with the threat of lower the margin of profit or

increase the selling price.

20

Show the four points of the SWOT Analysis process of Apple Inc.

nc.

22

ng

your products in the same value, which enable the company to compete in the market

with an advantage not available with other competitors.

How to implement cost leadership strategy?

By using economies of scale, lean manufacturing, experiences, supply chain, tight

cost and overhead control, and cost minimization in the R&D department.

Nowadays, Apple Inc. Use cost leadership strategy by drawing policies and strategies

in the market.

Because the lack of information available on the websites and online search engines

we will describe briefly the advantages and disadvantages of the cost leadership

strategy without real examples from Apple Inc.

A. Higher profitability: The selling of products in a lower cost basis and

competitive pricing, allow the organization to have a margins greater than

other competitors who invest more to produce a similar quality for the same

product.

B. Increased market share: By earning higher profits, the organization can use

them in increasing their market share and satisfy their customers demand.

C. Sustainability: During tough economic times, or in a beat down price war in

the market, companies with lower costs of production have a better chance to

survive facing other competitors.

D. Capital growth:

have more capital resources available to invest for further developments.

23

In order to have a cost leadership strategy, the company need to reduce the cost of

some of their services such as the customer services who will lead to lose the loyalty

of their customers, and in the other hand, they will reduce the cost of the R&D

department who will lead to the lack in the innovation, and it will affect negatively on

the customers who looking for the up-to-date technologies and innovations.

Since 1980s Apple has successfully used the differentiation strategy to separate their

Those are the four majors differentiation used by Apple in the market worldwide:

Product Design

A major aspect of a product differentiation strategy comes from product

design. Products that display a different visual style, include different features

or handle different tasks stand out from those offered by the competition.

Apple has made product design a hallmark of its product differentiation

strategy since the company's origins. When Apple introduced the iPod,

iPhone, and iPad, no similar consumer electronics products existed in the

market that included so many features in one package.

Pricing Strategy

Another factor in product differentiation plans stems from the company's

pricing strategies. Apple Computers co-founder Steve Jobs sought to create a

topnotch product with a price proportionate to its level of quality while

maintaining high profit margins. The lowest-priced Apple products

consistently fall in the mid-range, but customers are willing to pay that price

24

for the high quality of the user experience. This pricing strategy runs counter

to that of makers of PC "clones," which put out low-end computers and rely

on slim profit margins.

Retail Outlets

Apple's pricing strategy extends to its differentiation in the retail electronics

marketplace. While users can purchase PC clones, tablets and mobile phones

from nearly any electronics outlet, Apple differentiates itself by providing

limited quantities to "big box" retailers and focusing its retail efforts on its

Apple Stores. For its third-party retailers, Apple uses a "minimum advertised

price" to prevent outlets like Walmart and Best Buy from undercutting the

prices found at the Apple Stores.

Brand Loyalty

Apple has been among the most successful technology companies in the

development of loyalty to a brand. Loyal Apple customers will wait in line to

purchase the latest iPhone, download music through iTunes, watch their

favourite television shows on Apple TV and play games on their iPads. The

company's efforts toward building brand loyalty have allowed Apple to

differentiate itself from Microsoft, Samsung and other competitors in its

various arenas.

Read more:http://www.ehow.com/way_5815745_apple-differentiation-strategy.html

company, because of the wide range of products line in Apple also with the High-

Tech used in the corporation; allow them to be a difficult competitor in the market.

Also Apple is vertically integrated, it controls all the major critical parts of the chain

25

used to make and sell products. Apple builds great hardware, owns the core software

experience, optimizes its software for that hardware, equips it with web services

(iTunes and iCloud), and finally controls the selling experience through its own retail

stores.

Beyond that, Apple also has a culture that is completely unique, which is another part

of the reason for its success. Steve Jobs in his many keynotes has pointed out that

design.

By definition the environmental scanning is a process that consists on gathering and

analyzing as many information to serve its tactical strategies.

Environments which a company desires to operate or entre, There are six main

categories of environmental data to consider when evaluating marketing decisions.

These are social forces, demographic forces, economic forces, technological forces,

political and legal forces, and competitive forces.

Apple uses environmental scanning to gain business intelligence by tracking

systematically their customers and the use of their product (like purchasing apps,

songs and other product s), allowing apple to obtain information from system

feedback that pushes apple to make quality control adjustments to their marketing

strategies.

innovative and scalable designs)

26

The world we live in today is technology based, Constant adaptation and

advancement to gain competitive advantage in a rapidly changing and unstable

technological environment will always prove to be a challenge, but Apple seems to

have the formula for success.

Apples quality products, superior technological advancement, and unique marketing

With limited manufacturers supplying equal product value or quality, Apple is able to

maintain high supplier power. Apple might want to make a few changes to ensure

productivity and profit from both current and future buyer, stopping the dreadful

chain of making the next product a spin-off of its predecessor.

Environmental Scan basically analyzes and evaluates the internal as well as external

data and factors that affect the organization. Environmental scan involves the

recognition of organization's environment that has potential influence on

organization's environment and therefore, is critical to make successful strategies.

Internal Environment:

Apple's internal environment dynamic and creative. It has developed an internal

environment which encourages its human resource to become a part of Apple brand

and image. According to Apple's website, its employees love working their because of

the creativity, productivity, and being a part of innovation and excitement.

Apple works a lot in developing a culture in the corporation that can promote values

which supports its brand image, which is that the customer can expect having new

experiences through Apple's products.

27

Apple's internal environmental scan shows that the company is highly devoted to the

R&D, which enables it to access the latest technology in order to allow it be always at

the lead, and its marketing strategy involves the use of celebrities in their

commercials starring celebrities)

Secrecy can also be seen as strength of their inter-environment because due to this

there is smaller chance for competitors to copy.

External Environment:

Considering its external environment, Apple has focused on two major strategies and

tactics: First it has made strategic alliance with IBM, Microsoft, and AT&T, these

alliances are beneficial for Apple as they provide further computer growth to the

company and also guarantee software that are accessible and recognizable to

consumer worldwide.

Secondly, they focus on the strategy to concentrate on internal growth, which they

have implemented by creating new products for the market they have already

developed and by locating new markets as well. The global expansion is important for

Apple as large consumer markets are present in foreign countries where the

corporation has not started to serve yet, recently the company has opened in the Arab

nation its first store located in the UAE, and introducing the brand new Arabic Siri.

marketing strategy is the

fundamental goal of increasing sales and achieving a sustainable competitive

28

advantage. Marketing strategies includes all basic, short-term, and long-term activities

in the field of marketing that deal with the analysis of the strategic initial situation of a

company and the formulation, evaluation and selection of market-oriented strategies

Apple Inc. Use the branding strategy in order to compete across several high

competitive markets. They depend on the loyalty of their customers, good reputation,

and on the luxurious of their products to attract other customers.

Since Apple was voted the overall winner of the 2012 CMO survey award for

marketing strategies for the 5th year consecutively, (Apple was named as a winner or

co-winner of the CMO survey for five years consecutive). They has attained high sales

and high market share, and the consumers are well noticed and familiar with the brand

name and its products. So they are willing to pay premium price to buy Apple

i. Emotional Appeal: As stated by Clarity marketing LTD

(2005), the emotional appeal help deal a great targeting in the

act in decision making when a customer choose to buy the

same product from two or more competitors, because they will

automatically choose the familiar brand name and the most

knowing quality even if the company putting a high selling

price.

29

ii. Loyalty: If a customer had a positive experience with the

company he will automatically return to it when he want to buy

want it as a daily uses, but they will buy it according to the old

positive experience and also they will recommend your product

to other customers.

iii. Extension and Safety: When the company take a decision to

enter the market with a new product line the loyal customers

will buy it according to the reputation, familiarity, and the

positive relation between them and the company.

iv. Lower Marketing Investment: When a company has a good

reputation in the market, and its brand name are familiar with

the Ads. And promotion sector because they have already

products.

After the branding strategy created, the company need a further help to

stay in the front, the second step is the STP process. STP is consist of three

strategies; Segmentation, Targeting, and Positioning.

Segmentation: The market is divided into three different segments.

Demographic Segmentation: It is when the market is segmented on

the basis of age, gender, education, income, occupation, etc.

30

Geographic segmentation: It is when the market is segmented on the

basis of city, state, region or country.

Psychographic segmentation: It is when the market is segmented on

the basis of life style, Social class (Upper class, middle class, lower

class, blue collar, etc...), behaviours, opinions, values or ethics.

Figure show the Apple market Segmentation

Targeting: It is the second step in the STP process, in which the company

will select a segment or series of segments to target it with the products.

And there are three methods to targeting:

1. One supplier target one segment with a single product

31

2. One supplier targets all segments with one brand and several products.

3. One supplier target several segments with several products or brands,

and each segment has its own product or brand.

Apple uses the second type of targeting, they target all segments with a single brand,

Positioning:

perception. After the segmentation and the targeting of a market, the

marketers need to put the products in the market finally.

Apple positioned as a premium brand and price for the customers who look

for a high class relation with the company. This premium price includes all

Apple products.

Therefore Apple create a culture that has differs it from its competitors by

positioning a less price sensitive customers.

32

A matches its business activities

about how to effectively address market conditions and the competitive landscape

through appropriate products, distribution, promotion and pricing. Apple continues to

use its marketing mix in globally expanding the business through various channels

and with a growing product mix, along with an array of promotion strategies.

Apple Inc. has continued to expand its product mix. This component of the marketing

following are the main product lines:

iMac

iPad

33

iPod

iPhone

Apple TV

Apple Watch

Software

As part of its product development intensive growth strategy, the company continues

to develop new products, such as the Apple electric vehicle, which is under

development through collaboration with firms like Tesla Motors.

approach to distribution, taking advantage

of different distribution channels. In general, the company uses a selective distribution

strategy, which involves some degree of exclusivity that could limit market reach.

Apple authorizes sellers to ensure control over this component of the marketing mix.

Apple Stores

Online Apple Store and App Store

Authorized retailers

Telecom companies

Fulfilments services

communications mix supports business position in reaching more target buyers. In

component of the marketing mix includes the following elements:

Advertising

34

Personal Selling

Sales Promotion

Public Relations

Apple Stores, as well as advertising through other firms, such as technology news

sites. The company also uses personal selling in the form of Apple Store employees

who provide product-specific information in the aim of convincing store visitors to

volves sales promotion,

which usually happens at the Apple Stores.

Apple uses a premium pricing strategy. In this component of the marketing mix, the

emphasis is on how prices represent the company and its products, while meeting

relatively high prices. This pricing strategy helps maintain the high-end image of the

company and its products. Another effect of this pricing strategy is that Apple

products attract a smaller market share composed of people from the middle and

upper classes. Nonetheless, the company maintains profitability because premium

ium product development strategy.

-inc-marketing-mix-

So far we have also the full target market in which

market

35

Strategic HRM can be regarded as a general approach to the strategic management of

human resources in accordance with the intentions of the organization on the future

direction it wants to take. What emerges from this process is a stream of decisions

over time, which form the pattern adopted by the organization for managing its human

36

resources and define the areas in which specific HR strategies need to be developed.

HR strategies will focus on the specific intentions of the organization on what needs

to be done and what needs to be changed.

Also the purpose of HR strategies is to guide development and implementation

programs. They provide a means of communicating to all concerned the intentions of

the organization about how its human resources will be managed. They enable the

organization to measure progress and evaluate outcomes against objectives.

1) Overarching HR strategies:

Overarching strategies describe the general intentions of the organization about how

people should be managed and developed and what steps should be taken to ensure

that the organization can attract and retain the people it needs and ensure so far as

possible that employees are committed, motivated and engaged. They are likely to be

expressed as broad-brush statements of aims and purpose, which set the scene for

more specific strategies.

2) Specific HR strategies:

- Talent management

- Continuous improvement providing for focused and continuous incremental

innovation sustained over a period of time.

- Knowledge management creating, acquiring, capturing, sharing and using

knowledge to enhance learning and performance.

- Resourcing attracting and retaining high-quality people.

37

- Learning and developing providing an environment in which employees are

encouraged to learn and develop.

A healthy organizational structure allows its employees to focus on producing quality

products and services. Effective organizations provide opportunities to its employees

to develop new skills. This allows the staff to constantly improve business operations

and ensures that the company maintains a competitive edge required to thrive in a

dynamic global marketplace. Creating a healthy organizational structure begins by

programs to maintain a productive workplace.

1) Facilitates Specialization

Organizational structure facilitates division of work since each boss has specialized

knowledge on his field of work. He has better and accurate knowledge to guide his

subordinates.

2) Control Over Resources

This can only be done if an organizational structure is clearly defined and there is

control of employees through an effective organizational structure.

3) Easier Communication

38

This simplifies the work of executive employees so that they are not overwhelmed by

the activities of the firm

4) Better Employee Performance

Organizational structures clearly show various jobs to be performed by employees

and which supervisor will manage them

The Management Information System is a collection of Men, tools, procedures and

software to perform various business tasks at various levels in the organization. Many

organizations have separate MIS departments which are involved in maintaining

records, performing transactions, report generations and consolidation of the

important information which will be supplied to the various levels of the

management. MIS primarily serves the functions of controlling and decision making

At the managerial level, MIS has three basic levels: operational, middle management

and top management where the information is passed from bottom to top.

resources of business organizations. The transaction processing layer of MIS in

human resource function deals with routine activities like attendance recording and

payroll calculations. The operational level activities also include maintaining the

employee records which is used as a basis for strategic layers. With the growing

importance of human resource management and increasing size of the organizations,

maintenance of employee related data and generating appropriate reports are the

crucial aspects of any organization.

39

Therefore more and more organizations are adopting computer based human resource

management systems (HRMS). This paper is an attempt to design and implement an

MIS for the business organization and show how it helps in taking management

decisions related to management function especially for the top management.

information are an essential tool for managers in the recruitment and evaluation of

human resources in organizations. Since they support the goals and objectives of the

organization, It importance lies on personnel administration operational programs,

including employee record keeping, budget control, compensation, benefits

management, and government reporting.

Strategic HR planning is an important component of strategic HR management. It

links HR management directly to the strategic plan of your organization.

Strategic HR planning is also important from a budgetary point of view so that you

can factor the costs of recruitment, training, etc.

Apple has developed an online recruitment system that allowed the company to offer

special services to their customers, by training a group of people around the globe

with different languages to offer these services for example solving apple account

problems.

With low cost apple manages to relief the pressure on their HQ, by recruiting local

that deals with local issues.

1. DEFINE BUSINESS CONTEXT.

Define the business environment. Recognize and define expectations of key

stakeholders to face business challenges.

2. ARTICULATE HR VISION.

40

Articulate a vision of the HR function that can be shared inside the function to excite

HR professionals. Who we are, what we do, and why we do it.

3. SPECIFY DELIVERABLE OUTCOMES.

Define the deliverables, outcomes, or guarantees from doing good HR work

4. MAKE HUMAN RESOURCE INVESTMENTS.

Make investment choices on critical practices like cost-benefit.

5. CREATE HR GOVERNANCE AND STRUCTURE.

Identify who can do the work (HR, line managers, strategic vendors, staff managers).

Create a responsibility grid for that must do the work.

6. PREPARE ACTION PLANS

Preparing for a specific action plan for accomplishing HR priorities with detailed task

and responsibilities.

7. ENSURE HR COMPETENCIES.

Identifying critical HR competencies needed to meet the HR plan. Prepare

improvement plans that ensure HR professionals to accomplish the business plan.

HRIS stand for: Human Resource Information System

Human Resources Information Systems is an integration of HRM and Information

Systems (IS).

HRIS or Human resource Information system helps HR managers perform HR

functions in a more effective and systematic way using technology. It is the system

used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent

The HRS is a part of management information system (MIS) which include

accounting, production, and marketing, etc.

41

Application of HRIS:

HRIS can be applied in the following areas of HRM:HR planning, staffing, applicant

recruitment and tracking, employee data base development, compensation, Pay roll,

salary planning, Developing an innovative organizational structure , developing IT.

Also there is a type of marketing in the HR department in any organization, and also

in Apple in which they try harder to put their employees in the perfect environment so

they can work much easier and harder to attend the needed goals.

R.

42

Apple Executive Team

1. Tim Cook : Tim Cook is the CEO of Apple and serves on its Board of

Directors and his was Apple's Chief Operating Officer and was responsible for

-to-end

in all markets and countries.

2. Albert Gore: Former Vice President Al Gore is co-founder and chairman of

Generation Investment Management. He is a senior partner at Kleiner Perkins

spends the majority of his time as chairman of The Climate Reality Project, a

non-profit devoted to solving the climate crisis.

43

3. Andrea Jung: Is the President and CEO of Grameen America. Ms. Jung

joined Grameen America with the goal of scaling the organization to solve

economic issues for women and their families across the country. Ms. Jung

ranked consistently among the top leaders on lists including Fortune

magazine's "Most Powerful Women in Business," Forbes magazine's "Most

Powerful Women in the World," and Financial Times' "Top Women in World

Business."

4. Ronald D. Sugar: former Chairman of the Board and CEO of Northrop

Sugar will serve as the Chair of the Audit and Finance Committee.

engineer at heart, who then became a very successful business leader. We are

-tech Fortune 100

company, Ron has a Ph.D. in engineering and has been involved in the

5. Sue Wagner: founding partner and director of BlackRock, has been elected to

-serving

member, is retiring after 17 years of service.

The BOD has the right to elect directors, who have a legal duty to represent the

shareholder, and to protect their interests. The board of director has an obligation to

approve all decisions that might affect the long run performance of the corporation.

This means that the corporation is fundamentally governed by the board of directors

overseeing top management, with the concurrence of the shareholder.

The board of director has five responsibilities, listed in order of importance:

44

1- Setting corporate strategy, overall direction, mission and vision.

2- Hiring and firing the CEO and top management.

3- Controlling, monitoring or supervising top management.

4- Reviewing and approving the use of resources.

5- Caring for shareholder interests.

these dealing with the issuance of securities, insider trading and other conflict of

interest situations.

Apple is a Multi-National Corporation that affects and can be affected by the market

environment. As you can see from this project, and after we study the formulation of

the strategies by Apple and how they implement them, you can conclude that Apple

use the most knowing strategies in the world that also available in the hands of other

firms, but they differ from other competitors by their implementation strategy. Apple

has a different view toward the strategies available, they doing things in a way that

stand in the market face to face with Apple.

Apple is one of the leaders industries in the high-tech market that compete with other

they must continue formulate strategies for the long and short run to avoid the

eliminating from the market.

Here are some problems and recommendations we see that Apple must focus on them:

45

1. Cost skimming strategy. Apple uses the skimming strategy in which

they affect negatively their sales in the market and limit their

customers to specific people only.

2. Imitating Product. The firm faces the significant threats of aggressive

competition and imitation, which are major challenges affecting the

industry. A stronger patent portfolio along with continuous innovation,

ensure the competitive advantage of Apple products even when

competitors try to imitate them.

3. Scale up its production capabilities. Every time Apple releases a new

gadget, customers can't get it. This is a consequence of Apple's

legendarily precise just-in-time manufacturing system.

46

Introduction:

http://www.managementstudyguide.com/strategic-management-articles.htm

In: 06/11/2015

Body Paragraph:

http://www.managementstudyguide.com/strategy-formulation-process.htm

In:08/11/2015

http://www.managementstudyguide.com/strategy-implementation.htm In:

08/11/2015

http://www.managementstudyguide.com/strategy-formulation-vs-

implementation.htm In: 09/11/2015

http://panmore.com/apple-inc-swot-analysis-recommendations In: 13/11/2015

http://www.strategicmanagementinsight.com/products/swot-analyses/apple-

swot-analysis-2014.html In: 14/11/2015

In: 14/11/2015

In: 14/11/2015

http://www.marketingminds.com.au/apple_branding_strategy.html In:

14/11/2015

http://www.slideshare.net/sweetNsourr/dissertation-25988438 In: 27/11/2015

http://myndset.com/2014/09/23/apple-brand-marketing-strategy/ In:

27/11/2015

https://burnetteb.wordpress.com/2015/06/25/apple-inc-objectives-and-

strategies/ In: 27/11/2015

http://panmore.com/apple-inc-marketing-mix-4ps In: 27/11/2015

47

https://prezi.com/lo_cafge3ole/apple-implementation-plan/ In: 29/11/2015

http://www.studymode.com/course-notes/Cost-Leadership-Strategy-Of-Apple-

1349263.html In: 29/11/2015

http://techland.time.com/2011/07/01/why-competing-with-apple-is-so-

difficult/ In: 10/12/2015

http://panmore.com/apple-inc-swot-analysis-recommendations In: 10/12/2015

By David Ulrich In: 17/12/2015

In: 17/12/2015

In: 17/12/2015

Recommendation:

http://www.wsj.com/articles/SB1000142405270230447050457916150239858

1642 By FARHAD MANJOO

Oct. 27, 2013 9:29 p.m. ET

In: 20/12/2015