Apple Inc.
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Apple Incorporated
Name
Class
Course
Affiliation
Date
Apple Inc.
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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 iPod, iPad, iPhone and
the Macintosh computer (Schneiders 2011, p. 13). In addition, there is apple is recognized for the
Mac OS X. Apple was established on April 1, 1976 in California after which it was incorporated
in 1977. Initially it was known as Apple Computer, Inc. and this continued for a period 30 years.
Later on the word "Computer" on the company name was removed in the year 2007. This
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
The Smartphone Tablet Industry
In recent years Apple has become a major player in the global Smartphone tablet industry
with a loyal consumer growing base. For instance, in the year 2011 had a total of 357 stores in
about ten countries worldwide. Moreover, apple has a wide presence in the online market with
online stores. Apple is also among the major corporations which are traded in the stock exchange
by measure of the market capitalization. In revenue and profit terms, Apple has become one of
the world largest technology corporations and more Microsoft and Google combined (Bach
2007, p. 14).
The idea behind the development of the smartphone and tablet technologies has been in
existence for a while but their introduction into the consumer electronics market has become
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serious within the last two years. The best example to illustrate this is the Apples’ iPad and
iPhone which have revolutionized 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 300 million by the year 2015 (Schneiders 2011, p. 27). This means that technology
firms such as Apple will continue to grow since they need to expand 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 expected
that more firms.
Apple’s Products

The iPod- The iPod is one of the most successful products for Apple computer. The most
recent iPod is available GB which has the capability of playing both audio and video
files.

The iPhone - The iPhone is evolution to the area mobile communication which designed
to combine email, mobile phone, internet as well as other information services. The
iPhone has been designed as a consumer electronic device that has all things in one place.

The Mac mini - This is the company’s lowest costing desktop computer. It has become to
be widely used globally for both leisure as well as business.

The iMac - The iMac is designed using the same idea just like the original Macintosh
personal computer which is that both the computer as well as the monitor is within a
single unit. Currently the iMac is the third major design widely used globally and is
always upgraded as time passes together the changing needs of the consumer or the end
users (Park, Hong & Moon 2012, p. 37).
Merging Emerging Industry
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Apple Inc. is a major player within several very competitive markets which include the
personal computers with its Macintosh, consumer electronics with its iPod and iPhone. Apple
computer is engaged in the distribution of digital content which is owned by a third-party by
using the online music store called iTunes Store. It is important to take note of the fact that this
area of content distribution is extremely competitive and hence requires aggressive marketing
strategies. The company has gained the reputation as a major 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 (Bach 2007, p. 25).
Apple’s Competitor Analysis
Apple computer is faced by very tough competition from all areas of the technology
business. The consumer electronic markets, software markets, personal computers and other
peripheral products have become extremely competitive. The 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. Most of the competitors of Apple Inc. tend to sell their personal
computers which use the operating systems of other developers. This has had an impact on their
performance in that their prices have been greatly reduced as well as the market share. The major
factors of competition include; Price, Relative Performance, Product Quality and Reliability,
Design Innovation, Availability of Software, Product Features, Marketing and Distribution
Capability, Service and Support and Availability of Hardware Peripherals.
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Opportunity and Threats to the Industry
Throughout the whole of January 2005, Apple opened more than 102 retail stores.
Although these expansions were beneficial, most of the Apple retail stores are negatively
affecting the businesses of the resellers and this can cause their downfall (Cusumano 2008, p.
27). This can have a much significant impact on Apple since the resellers account for more than
50% of the domestic sales. There are many questions 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 major technology companies where the growth as well as the fortunes
of the company always appears to be closely connected to the person in charge. The visionary
talents which are associated with Steve Jobs contribute to growth and success of the company.
Therefore, the news of cancer surgery on Steve Job and subsequent demise might have lead to
the rise of succession problems and perception of a not so bright future for the company.
Smartphone and Tablet Industry Life Cycle
The growth of the smartphone and tablet industry can be best emphasized by this fact,
that it took the radio about 38 years to get to 50 million users but it has taken the tablets and the
smartphone only 1year to get to 50 million users (KICKHAM 2011, p.33). Following the launch
of the iPad one of the major 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’s main Competitors
AAPL GOOG
HPQ
RIMM
Industry
531.35B 197.44B 47.54B
6.14B
528.54B
33,077 349,600
16,500
106.70K
58.90% 24.10% -7.00%
-24.60%
24.30%
142.36B 39.98B 124.98B
18.44B
142.36B
Gross Margin
43.95% 64.88% 23.24%
35.76%
43.95%
Operating Margin
35.69% 32.11%
8.41%
10.69%
39.26%
Net Income
38.62B 10.83B
5.94B
1.16B
N/A
Market Cap:
Employees:
Quarterly Rev Growth
Revenue
60,400
GOOG – Google Inc.
HPQ – Hewlett Packard Company
RIMM- Research in Motion Limited
Others in the Technology Industry – Personal Computers
Competitor Dynamics
Apple computer has an expectation of intensified competition as more and more
competitors have began to imitate Apple’s marketing strategy by using introducing products of
almost similar quality 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. One of the ways they have started to use
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their strength in their efforts to increase their market share is by selling their products. There is
no assurance that majority of these technology companies will continue to offer products as well
as services which are competitive in the market. Apple computer may be required 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 (KICKHAM 2011, p.29).
Issues that Apple is not aware in the Technology Industry
There are several issues that Apple is not aware of within the technology industry. Some
are related to and affect the users on a daily basis such as the troubling issues with Wi-Fi in the
company’s operating software the OSX Lion. The iPhone 3.2 which is used on the iPad does not
renew the DHCP. There are common problem with the Apple Mail. These 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. The 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. For 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 Financial Data
The Annual Financial Data
Period
Sep 23, 2011 Sep 24, 2010 Sep 25, 2009
Total Revenue
108,249,000
65,225,000
42,905,000
Cost of Revenue
64,431,000
39,541,000
25,683,000
Apple Inc.
Gross Profit
8
43,818,000
25,684,000
17,222,000
Research Development
2,429,000
1,782,000
1,333,000
Selling General and Administrative
7,599,000
5,517,000
4,149,000
-
-
-
33,790,000
18,385,000
11,740,000
415,000
155,000
326,000
34,205,000
18,540,000
12,066,000
-
-
-
34,205,000
18,540,000
12,066,000
8,283,000
4,527,000
3,831,000
-
-
-
25,922,000
14,013,000
8,235,000
Discontinued Operations
-
-
-
Extraordinary Items
-
-
-
Effect Of Accounting Changes
-
-
-
Other Items
-
-
-
Net Income
25,922,000
14,013,000
8,235,000
Operating Expenses
Total Operating Expenses
Operating Income or Loss
Income from Continuing Operations
Total Other Income/Expenses Net
Earnings Before Interest And Taxes
Interest Expense
Income Before Tax
Income Tax Expense
Minority Interest
Net Income From Continuing Ops
Non-recurring Events
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Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
-
-
-
25,922,000
14,013,000
8,235,000
The Currency is in US Dollar
Apple’s Inc. Financial Projections
Apple’s Earnings
Current Quarter
Next Quarter
2012
2013
Estimates
Avg. Estimate
10.28
10.44
46.87
53.93
Low Estimate
8.90
8.59
41.59
48.36
High Estimate
12.51
13.36
51.60
64.06
Current Quarter Next Quarter
2012
Apple’s Revenue
2013
Estimates
Avg. Estimate
37.52B
38.82B
162.40B
195.36B
Low Estimate
34.40B
33.83B
153.74B
177.99B
High Estimate
41.74B
47.15B
174.41B
228.39B
Year Ago Sales
28.57B
28.27B
108.25B
162.40B
Sales Growth
31.30%
37.30%
50.00%
20.30%
The Currency is in US Dollar
Value chain analysis
By delivering superior electronic products to its consumers, Apple has managed to not only maintain a
constant customer base but continues to expand its market share in the smartphone and tablet industry. This has led
to the growth of its c a s h r e s e r v e s a s w e l l a s g a i n s a m u c h c o v e t e d p o s i t i o n i n t h e
technology world. Every Apple store is designed to create a customer
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friendly world where the customers have an opportunity to interact and
e x p e r i e n c e t h e p l e a s u r e t h a t c o m e s w i t h t h e A p p l e p r o d u c t s . In order to identify
which areas that Apple has developed and established its critical capabilities an analysis of the value chain linkages
is essential. The primary activities of Apple consist of production, sales and marketing, product design, consumer
and legal services. The product design and technology activity forms the base or the core the Apple Corporation.
Apple Inc. has a history of designing technology that is cutting-edge. Apple is focused
on being the best as well as the first technology firm globally. Its Apple operating system is
globally recognized and appreciated as a more reliable as well as a stable O S
compared to Windows. Since Apple has for long rejected the calls to make give out
its OS license to other firms. The combination of both the hardware and software
forms the cornerstone of the production process for Apple Inc. This 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 extension of the product design
process.
Internal Configuration
The main goal for Apple Inc. is to bring new customers. In addition, it involves the
expansion of the existing base of loyal consumers buying working towards increasing the sale if
different electronic products. Through 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 experience of the customer as well as increase the attraction of new
customers. The manner in which the Apple stores are designed is meant to make simple and to
enhance how the products are presented.
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The Financial and Resources Appraisal
By the year 2011, Apple had about 60,400 permanent employees who work on a full time
basis, 2,900 temporary employees. In 2011, the company had total global revenues of 108 billion
dollars up from 65 billion dollars in the year 2010. The fortune magazine listed Apples as the
most admired corporations in the united states in the year 2008 and globally it is still the most
admired the company. Nonetheless, Apple has been on the receiving end of criticisms on
different issues ranging from labor issues by its contractors', its business as well as
environmental practices.
The financial strength of Apple Inc. within the past three years shows a continued
growth. Apple has been having a high liquidity trend although lately it has been reducing as a
result of the increase in the time it takes for a sale as well as a reduction in the a day’s sales
(Grady, 2009, p. 34). The increase in profit for the last three years has been very promising with
an increase in the gross profit from 33.97% in the year 2007 to about 34.31% in the year 2008
and followed by an increase of 35.96% in the year 2009.
In addition, the percentage operating income also witnessed a substantial growth from
18.37% to 19.32% and 20.96% in 2007, 2008 and 2009 consecutively. During the same period,
there the company experienced a return on the equity as well as on the assets which reduced.
This reduction was as a result of accumulations in the profits from the earnings retained as well
as from long term investments (Grady, 2009, p. 40). The firm’s upward financial growth can be
attributed to an increase in the liabilities such as the increase in the company’s differed revenue.
In September 2011, Apple Inc. made $108 billion from revenues.
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Apple’s Leadership and Decision Making
Steve Jobs before his demise provided a unique type of leadership for Apple.
He was well known for his strong as well as an awareness of the consumer market
is accredited for the growth of the company to where it is currently. It has been
argued that Steve Jobs left a culture that will live on in the company for a long
time to come. In addition, this is expected to have an influence in the politics as
well as management decisions of the firm in the coming decades. This is expected
to maintain the growth and the market share of the firm in the period beyond 2011.
Knowledge Management
In the end, the configuration of retail stores has changed into different size so as to
accommodate demands of the market. The retail stores use competent, experienced as well as
knowledgeable staffs that provide product information to customers on the different products
available. The 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 specialized service as well as personalized training.
Apple’s Reputation with Suppliers
There is the threat of a strong supplier power. The need to be supplied with low cast
materials for manufacturing of smartphone and tablets is very central to most technology
companies like Apple. There 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. There is the threat from the power of the buyer. Today the trends
in the technology world have left the buyer with no choice when it comes to buying smartphone
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and tablets.
Focus on Apples Internal Strengths and Weaknesses
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.
While the computer tends to showcase a variety of computing products as well as carry out
business at different levels, it can be challenging to specify what the company best at. There
company has been diversifying greatly and most say can cause the down fall for the company.
Throughout the whole of January 2005, Apple opened more than 102 retail stores. Although
these expansions were beneficial, most of the Apple retail stores are negatively affecting the
businesses of the resellers and this can cause their downfall. This can have a much significant
impact on Apple since the resellers account for more than 50% of the domestic sales.
Apple is among the major technology companies where the growth as well as the fortunes
of the company always appears to be closely connected to the person in charge. The visionary
talents which are associated with Steve Jobs contribute to growth and success of the company.
Therefore, the news of cancer surgery on Steve Job and subsequent 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.
The future of Apple Inc. operating results as well as financial status is critically dependent on the
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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 external.
A Culture of Fast-Paced Way of Working
We are living in a global village and the need for people to become more connected and
in constant contact is greatly growing as a result of the growth of the internet. People have
experienced how technology can make working or socializing 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
There are many questions 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 major producer of different consumer electronic products which include
the Macs, the iPod, the iPhone, the iPad as well as other softwares. The company’s cash reserves
have been reported to increase to about $75.876 billion when it was announced this July. On the
other hand the United States government made earnings that reached only $73.786 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 Exxon Mobil Corporation. In addition, Apple has been reported as
having a higher market capitalization than Exxon Mobil.
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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 organizations. The coordination of the above and their input
is what makes the organisation be among the best performing in the business front today.
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 NGOs 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 NGOs from China
and the United States loosened apple rigidness prompting a review of their strategies. Apple’s
supplier code of conduct enlists rules on control and hazardous and other pollutants as a way of
involving stakeholders the environmental cleanliness. Every supplier is vetted seriously to check
environmental friendliness and preserve its reputation. The measures have however not worked
as expected as criticism on the way the environmental issue is handled is dissatisfactory.
Information from some its supplier’s states that high density PCBs used in iPhone and iPad
require a lot of power and water to manufacture and large quantities of chemicals. The 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. They 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.
Ethics approach
Ethics can be defined as the code of conduct of an organisation in the day to day
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businesses. It can also be termed as best practice in the corporate world. Apple is a highly ethical
organisation. Quality touch is in all ideologies that form the organisation. The organization’s
code of conduct has been put to a test after the Foxconn factory saga. Foxconn is a major Apple
supplier that manufactures iPad. A certain explosion occurred in the organization’s premises in
china killing two people and injuring several. The saga put Apple on the limelight after a British
news paper secretly investigated the supplier and discovered some inconsistencies. Workers
reported long working hours in very crowded dorms. This statement does not reflect apple’s code
of conduct. However, Apple conducts over three hundred audits a year on employees where
violations like involuntary labor, underage workers and improper disposal of hazardous waste
are among issues of ethical behavior that crop up.
Apple has in turn spurred some changes to compliment the audits. They have championed
for continued performance improvements and better working conditions. They 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 injury prevention among others to help promote best practice in the
organizational environment. In a move to ensure that best practice is adopted, maintained and
upheld, Apple forced some of its suppliers to reimburse more than $6.7 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.
Reputation management
This is a process where actions of one entity are tracked and the opinion of others in the
business environment. Reputation in the business world today is a basic performance
determinant in the corporate world today. Recent developments in Apples supply chain has seen
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the organization put on the spot over various issues. The Foxconn saga especially has tainted
Apples reputation seriously not forgetting the recent allegations of trackers being inserted in
iPhone’s.
Crisis, reputation management
Apple has been highly criticized for its slow response to issues. In the management of
crisis, the organisation has resulted to transparency a reputational tool. This is a move that is
meant as a way round the crisis rather than defending itself. Apple hopes through this the world
will realize that they hold with high regard values that are considered ethical modern business
practices. The 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 just look at the way best practices are
upheld in the organization but also the consistency of the same organisation in upholding the
modern business values. The 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.
CSR concepts
The corporate social responsibility is an integral part of the business world today. Apple’s
breakthrough was in the uniqueness of game changing product few years ago. The iPad, iPod and
iPhone are some of its products scrutinized heavily about how they are made, the working
conditions of the companies they contract and their corporate practices. Research has established
that consumers define corporate social responsibility as an important characteristic while making
decision about a product, thus it is interesting to examine Apple’s CSR considering it has a
prestigious status in the world.
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The corporate social responsibility today is mostly focused on restoring the degraded
environment to its purity. Apple created a website called Green my apple to the core to help
reduce the use of hazardous waste to the environment. The initiative was founded in China by
NGOs working together with Apple. Transparency is another CSR strategy used by apple as it
helps the private consumer evaluate the organisation more easily. This also creates a positive
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 CSR to their brand making them gain the customer’s
confidence. The organisation is the most popular in the world today after several new
innovations that have changed technology. This only means that more corporate responsibility is
required as demanded by the consumer today. Several steps have been taken by the organisation
to as corporate social responsibility. This involves communicating to the consumers on various
environmental friendly practices among other things. Reputation 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 Apple” like Apple
incorporation.
Stakeholder applications and integration
The competitiveness of the business environment has forced many organizations 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 exception and has integrated with
various corporates in the industry for effectiveness. Merlin is a commercial project management
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software application for Mac OS X developed in Germany that integrates with Apple. Vertical
integration has been Apples strategy. It has control over all aspects of the value chain where
most stakeholders are. The company has opted to broaden their control by including ownership
of chip manufacturers, strict software standards and proprietary retail stores in their system.
Vertical integration has been bad for companies in the past as it has resulting to killing
innovation and promoting unhealthy business practices.
Working 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 platform” 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. We 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 unique technology they
posses. Their iPhone and iPad are their best selling products with sales of 81.6 million dollars in
2011. It is estimated that they will gather around 108 billion dollars this year and a10 billion
dollars income. However, the innovation of an OS called Android by Google Inc is a big threat
because it is half cheap making it easily affordable. Price is the biggest setback in expanding and
maintaining a market. It is the biggest weakness that could require re-evaluation because of the
future of their products. Although their product is very superior to their competitors, it is wise to
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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.
Marketing a product requires very smart strategies that are all rounded covering the interests of
all stakeholders. The organisation has previously failed in trying the “to do it their own”
approach. The lessons from the failures previously are quite productive as Apple is the most
successful after implementing the integration strategy. They have complemented the today’s
corporate competition basics and are firmly on top. The continous improvement policy is
necessary in order to maintain these standards.
The diagram below shows a porters value chain analysis.
Fig 1. The 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 quality products among
others principles make it the most admired organisation according to a research in 2008.
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Resource appraisal is taken very seriously by the organisation. This helps maintain set
standards and continually improve the standards. The organisation has recently engaged in
increased audit on every department and player in the supply chain. The reports from these
audits are used to make informed decisions in approaching various problems. Apple Inc
organizational structure is very simple and flat. This makes it very easy to communicate
because the management and the junior associates is much easier making it efficient for the
two to work together.
Directors
Thomas Cook
[CEO]
Employees
Fig 2. A sketch of Apples organizational structure
The diagram above is a simple representation of Apples organizational structure. The
leadership of the organisation has in the past been a bone of contention after seeing many Chief
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Executive Officers brings the organisation to its knees. The late founder and CEO Steve Jobs
leadership skills have brought the organisation to be the leading innovator in the world today. It
is important that the leadership today put into maintain and continuously improve the ideologies
set up by Steve Job in order to remain competitive. Reputation with suppliers is among the few
important details that should not be overlooked because it adds to the overall corporate image of
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. The move that is aimed at ensuring suppliers adhere to the
environmental code is strategic in the overall social responsibility compliance of the
organisation. More 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 criticized for not being sensitive to the environment. This forced the
organization to ally with NGOs to ensure that the organisation takes the environment friendly
aspects seriously. The 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. The management should do more than even with regard to alleged mis-treatment of
workers by other players in the supply chain. This 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. This has seen apple offer enlightening sessions on employee rights to ensure they are
aware they are the most important resource. The management should carry out Follow up audits
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to ensure that the employees know their rights. Stake holders are important in the overall success
of an organisation. Apple is among the major multinationals that has successfully controlled its
supply chain where it is the major player. Apple should consider even bigger challenges like
acquiring its competitors to gain a more competitive edge as well as expand. It should also
ensure that the other players in the supply chain adopt the same reputation based ideologies to
ensure they effectively expand their market and gain a competitive edge over their rivals.
The ethical approach practiced by Apple is still not very effective because cases of
malpractices among suppliers and other contracted firms are still eminent. The Foxconn saga
showed that employees are being overworked. Audit reports still reveal underage employment
among players in the supply chain. This cannot be termed as best practice and puts the firm in
the spotlight and taints it’s the reputation. The firm should design ways and means of
overcoming responding to issues a lot faster than they do. This is because increased calls for a
more quick response to issues can overshadow the transparency tool the organisation uses for
reputation management. Crisis reputation management is one of the shortcomings Apple
experiences. The saga where the organisation was being criticized for inserting tracking devices
in the iPhone was one of the crises that the organisation faced. The consumers still have that
perception which is not good for business at the time. The politics in United States at the time
feel their privacy is being invaded by the government because of its counter terrorism measures
that involve tapping citizen’s phone calls. Apple did not respond quick enough to explain
themselves from the allegations which did auger well with the consumers who felt some truth in
the allegations. The 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
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to gain competitive edge over its competitors. The management should continuously adopt other
integration strategies to expand their portfolio as it has proved successful for Apple. The
corporation can also consider trying horizontal integration. Apple incorporation is really a game
changer in the technology arena. The ideologies that comes with the 'I' technology revolution has
come with new ways of handling things. It is important that other corporations adopt Apple’s
method as it is the beginning of another revolution in the corporate world.
Apple Inc.
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