Strategic Management
Topic: Apple Inc. study (Assignment No. 1)
Submitted by:
Saira Khalid
F1F14MBBA0001
Sana Riaz
F1F14MBBA0004
Section: MBA S1
Submitted to:
Ma’am AaishaArbab Khan
Date of submission:
May 2, 2015
Acknowledgement:
In performing our Assignment, we had to take the help and
guideline of the one, who deserves our greatest gratitude. The
completion of this assignment gives us much Pleasure. We would
like to show our gratitude to Ma’am AaishaArbab Khan, University
of Central Punjab, Faisalabad, for giving us this assignment the
purpose of which was to increase our organizational knowledge.
Strategic Management
TOPIC: APPLE INC . ST UDY (ASSIGNMENT NO. 1)
ORIGIN OF APPLE:
Apple was started by Steve Jobs, Steve Woznaik and Ronald Wayne in Cupertino, California, US
on April 1,1976; about 39 years ago from today. Apple Inc. has an old name of “Apple Computers
Inc.” and made a personal computer as shown. It was a circuit board which was sold as
motherboard having CPU, RAM and had no features like monitor, etc. this was called as “Apple
I”. It had a price of $666.66 in 1976.
Proper Incorporation of Apple Computers
Inc. was held on January 3 ,1977 for
which Mike Markkula provided funds and
business expertise. Apple Computers Inc.
had two-fold increase in revenue after
every 4 months for 5 years.
VISION OF APPLE INC.:
Apple is committed to bringing the best
personal computing experience to
students, educators, creative professionals
and consumers around the world through its innovative hardware, software and Internet offerings.
MISSION OF APPLE INC.:
Apple Computer is committed to protecting the environment, health and safety of our employees,
customers and the global communities where we operate. We recognize that by integrating sound
environmental, health and safety management practices into all aspects of our business, we can offer
technologically innovative products and services while conserving and enhancing recourses for future
generations. Apple strives for continuous improvement in our environmental, health and safety
management systems and in the environmental quality of our products, processes and services.
STRUCTURE OF APPLE INC.:
Board of Directors:
Arthur D. Levinson,
Ph. D. (Apple Former
Chairman and CEO
Genentech)
Tim Cook (CEO
Apple)
Albert Gore Jr.
(Former Vice
President of the
United States)
Robert A. Iger
(Chairman and CEO
The Walt Disney
Company)
Andrea Jung
(President and CEO
Grameen America,
Inc.)
Ronald D. Sugar, Ph.
D. (Former Chairman
and CEO Northrop
Grumman)
Susan L. Wagner
(Co-founder and
Director BlackRock)
Angela Ahrendts (Retail
and Online Stores (SVP))
Eddy Cue (Internet
Software and Services
(SVP)
Craig Federighi
(Software Engineering
(SVP)
Luca Maestri (Chief
Financial Officer(SVP))
TIM COOK (CEO)
Dan Riccio (rdware
Engineering (SVP))
Philip Schiller
(HaWorldwide
Marketing (SVP))
Bruce Sewell (Legal and
Government Affairs
(SVP)
Jeff Williams
(Operations)
PRODUCTS AND SERVICES:
Paul Deneve (Vice
President Special Projects)
Steve Dowling (Vice
President
Communications)
Lisa Jackson (Vice
President Environmental
Initiative)
Joel Podolny (Vice
President Dean, Apple
University)
Johny Srouji (Vice
President Hardware
Technologies)
Denise Young Smith (Vice
President Worldwide
Human Resources)
Following are the important products of Apple incorporations:
Offering:
Basic introduction
Mac
I is a series of laptop computers by Apple Inc. having the Macintosh Operating
system in it. Apple prepares light weight Macbooks having long lasting battery life
laptop computers whose price range starts from US$1299 to US$1500.
Desktop
iMac (in
1998)
Ipod
Ipad
Mac Mini
(in 2005)
Mac Pro
(in 2006)
MacBook
Pro (in
2006)
MacBook
Air (in
2008)
MacBook
(in 2015)
It is a multimedia player device having different features like shuffle, etc. it is
basically small in size having different colors and now apple is introducing
Engraving feature on customized Ipods as well. It also has a data storage capacity
and can be used to transfer data. Morethan 350 million units have been shipped to
other countries in 2012.
iPod (in 2001)
iPhone
Notebook
iPod Shuffle
(in 2005) 2GB
iPod Nano
(in2005)
16GB
Nike+iPod
Sports Kit (in
2012)
iPod Touch
(in 2012) iOS
• 16GB
• 32GB
• 64GB
Most popular brand as said by Yahoo “Apple and Samsung dominate list of Top 10
best-selling smartphones”. It was the first smart phone in its nature and best in
preordered selling. About 4 million orders were pre-booked for iphone 6 before
release in first 24-hours of announcement. Other apple softwares like App store and
iTunes store, etc. are frequently used by Iphone users. It was firstly introduced in
2007 at MacWorld Conference & Expo.
First
Generation
iphone
(2007)
iPhone 4s
(2011)
iPhone 5,
5C, 5S
(2012)
iPhone
(2008)
iPhone 4
(June 2010)
iPhone 6
(2014)
iPhone 3G
(july 2008)
iPhone 3GS
(june 2009)
iPhone 6S
iPad is an electronic tablet by Apple Inc. its main focus was to provide with best
services of Macbook in even compressed form of technology. It runs using iOS.
User can have multitouch interaction with newspapers, ebooks, photos, videos,
music, documents, video games, and other iPhone apps. It runs Mobile Safari with
facility of iTunes and app store, etc. WiFi and optional 3G facility is alos provided.
iPad (in
2010)
iPad 2 (in
2011)
the new
iPad (in
March
2012)
iPad with
Retina
Display
(in
October
2012)
iPad Mini
(in 2012)
iPad Air
(in 2013)
iPad Air 2
(in 2014)
iPad Mini
3 (in
2014)
abour 3 billion apps from App store were downloaded by iPad users.
Apple
Watch
Apple watch is compressed smart phone and watch. Its speciality is that it gets
connected with our body and determine various levels of calories, heartbeat, etc. we
can make smart calls with apple watch.
Fitbit
iphone
Apple
Watch
OS X
It’s a software product for Apple Inc. its basically an operating system that can be
run on iphone, macbook, etc.
Safari
A web browser for Apple computers. It is preinstalled on every Apple computer.
iLife
It contains photos, music, videos
App Store: It is basically the store for apps that are developed by 3rd party and may be free of
cost for the Apple Inc. customers. Since its launch, almost over 75 billion apps have
been downloaded.
iTunes:
It is the store for all those applications that have been manufactured by Apple Inc.
itself. These are not free for any of the Apple users. These Apps include the photos,
music, videos, productivity and non-productivity apps.
Apple TV
It was previously known as iTV. It is basically a small device having a storage of
40GB which get attached with TV and help download contents from iTunes. It could
iTV (in 2007)
40GB Apple TV
(in septemer
2009)
160GB Apple
(March 2012)
play 720p content.
Accessorie Apple Keyboard, Magic Mouse, Magic Trackpad, Airport Experience, Apple battery
s
Charger, Airport extreme
SUBSIDIARIES:
FileMaker Inc.
Anobit
Bralburn Capital
Beats Audio
SHARES AND STOCK EXCHANGE:
Apple has been listed in NASDAQ having symbol of AAPL. It has also acquired the place in Dow
Jones Industrial average component. Apple has also been a component of S&P 500 and NASDAQ100. The current market value of its share. Following financial information has been available:
No. of shares traded:
12,600,000
Stock Exchange
NASDAQ
Revenue
$42.1 billion (2014)
$37.5 billion (2013)
Dividend
$0.52 per share (on May 12,2015)
Value of share (at the time of IPO)
$22 (on December 12, 1980)
Par value per share:
$0.00001 per share
Market value per share:
$125.28 (as on May 1, 2015)
GOVERNANCE:
Three basic for commitees for governance has been made named:



Audit and finance committee
Compensation committee
Nominating and corporate governance committee
Apple inc.Has also defined some charters for governance as follows:






Anti-corruption policy
Articles of incorporation
Business conduct policy
Business conduct policy - summary of changes
Bylaws
Corporate governance guidelines







Director conflicts of interest guidelines
Political contributions and expenditures policy
Political contributions - 2012 to date
Prohibition on hedging and short selling apple stock
Related party transactions policy
Reporting questionable accounting or auditing matters
Stock ownership guidelines
MAJOR COMPETITORS:



Android/Google/playstore
Samsung
Sony
ACHIEVEMENTS:




Forbes ranked Apple inc. #1 with a brand value of $124.9 billion in 2015
Fortune ranked Apple Inc. as #1 in 2015 for the World best admired company
LAPTOP Magazine ranked Apple as #1 overall verdict in 2015
Global Finance Global 500 ranked Apple Inc. as #1 in 2015
SOCIAL RESPONSIBILITY AND GOVERNANCE:





Equality, Human rights and Respect
Employee Education and Development (SEED) program (861000 employees)
60-hours work week
Environment, Health, and Safety (EHS) Academy launched more than 870 projects
Employee safety and air pollution control
STRATEGIES FOR COMPETITIVE ADVANTAGE:



Digital Business Strategy
Strategy Alliance
Intellectual Capital
BUSINESS STRATEGIES:





Innovative hardware, software and services
Building and expanding its own retail and online stores support experience.
Continual investment in research and development
Strategic Alliances
Product Differentiation
FUTURE PROSPECTS:
Apple Inc. has been ranked overall #1 means that it has now attained the best desired position but
it has to maintain the position by reducing manufacturing defaults of the products. The strong
brand image of Apple Inc. will not be much affected by the news but they must attain the fast
innovation in order to survive and progress as Android i.e, its major competitor is also trying to
chase Apple.
REFERENCES:







http://www.apple.com/pr/products/
http://www.apple.com/pr/bios/
http://www.apple.com/pr/library/
http://www.forbes.com/powerful-brands/list/
http://www.nasdaq.com
http://www.apple.com
http://www.bbc.co.uk