In this assignment the aim is to apply the strategic management process to Apple Inc. Apple Inc. was founded in 1976 by Steve Jobs and Steve Wozniak. The company designs, markets and manufactures the world’s most popular smartphone, the iPhone, iPad, Mac computers and other accessory devices.
In 1977 Wozniak sold his share for 800 US Dollars. The students will conduct a study of Apple’s external and internal environment while raising issues that concern their vision/mission statement.
The study will answer the questions to how to be an industry leader, SWOT analysis, CPM and Space Matrix, alternative and generic strategies that have been pursued by Apple, organisational structure and recommendations for evaluation and strategy review.
Strategists are individuals that are responsible for the success of failure of and organisation and strategist are involved in the formulisation of an organisations vision and mission statements, social responsibility and long and short term objectives. A vision statement should answer the basic question, “What do we want to become?”
It should reveal the type of business the firm engages and should be created first and it must be more or less, one sentence and short in length (David&David 2017:159-161). A vision statement “is an aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future” ( WebFinance Inc.2015).
A mission statement is answers the question, “What is our business?” A mission statement is a “declaration for an organisations reason for being.” A mission statement is also known as a “creed statement.” A clear mission statement is important as it helps with creation of objectives and strategies “A written declaration of an organisation’s core purpose and focus that normally remains unchanged over time” ( WebFinance Inc.2018).
Apple does not have formal vision and mission statements that is labelled to be their vision and mission statements on their corporate website and Form 10K.
There are two statements that are believed to serve as Apples vision and/or mission statement:
“We strive to provide users of Apple products the best experience possible through innovative product designs and software” (David&David. 2017:546)
“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad”. (David&David. 2017:546)
Strategists agree with Ralph Nader who says that “organisations have tremendous social obligations” or with Milton Friedman who says that “organisations have no obligation to do any more for society than is legally required.” It is said that “firms should strive to engage in social activities that have economic benefit.”
“The obligations that an organisations management has towards the welfare and interests of the society in which it operates” (WebFinance Inc.20180 Research presented that the Apple Company’s Social (Supplier) and ethical responsibilities is geared toward Empowering Workers, Labour & Human Rights, Health & Safety, Environment and Accountability.
The company provides educational resources for all of their employees giving them the opportunity to earn an undergraduate degree (Study Moose. 2016).
Objectives are “specific results that an organisation seeks to achieve in pursuing its basic mission.” Objectives and strategies time frame should be more or less 2-5 years (David&David.2017:40&120). Long-term objectives are based on more than one year. Objectives are very important for organisational success as it provides an organisation with a sense of direction.
Long-term objectives are usually achieved by way of specific strategies (David&David.2017:40&120). “Performance goals of an organization, intended to be achieved over a period of five years or more” (WebFinance Inc.2018). Annual objectives also known as short-term objectives are “short milestones that organisations must achieve to reach long term objectives” (David &David 2017:40&120).
Short-term objectives are also “smaller, intermediate milestone to achieve when moving toward an important goal” (WebFinance Inc.2018). Apple satisfies itself by producing products that is of great simplicity. Apple products are oftentimes more user friendly than those of Windows, Android, and other operating systems, but provided that the user is able to transform the device for their specific needs.
Apples operation systems are a large market and it had revenues of $45 billion which is expected to grow to $57 billion in 2019. Tablet sales are also in the US is expected to increase from $55 billion in 2014 to $63 billion in 2018 and the sales of smartphones are expected to show similar results.
Apple has started to increase its market share and start shipping its products to different countries in the world and is currently leading in the smartphone industry and is planning to strive through both its long term and short term objectives to remain the industry leader as opposed to its competitors such as Lenovo, Samsung, etc. (David&David 2017:546).
Means for achieving strategies can be seen as ways that an organisation uses to achieve their strategies to become industry leaders and have competitive advantage to rivals. Apple makes use of Mergers and Acquisitions as a means for achieving strategies. Mergers is when two of the same size companies merge into a single organization and acquisitions is when one organization buys another organization (usually a smaller one).
In 2014 Apple acquired firms such as Beats Music and Beats headphones and got a subscription streaming music service and a headphone firm in the process and this acquisition increased the firm’s revenue from $1.5 billion to $4.6 and this acquisition mentioned in this case is one of many acquisitions of Apple (David &David 2017:546).
Tactics to facilitate strategies can be seen as what a firm does to be or become and industry leader and to have a competitive advantage to rival firms. Apple uses the first mover advantage which is when a firm does something to gain developing a product or service before rival firms (David &David 2017:142).
“Most researchers use the term, ‘first mover’ to refer to the first company to enter a market…” (Advameg, Inc.2018). When Apple released the iPhone 6, Apple also introduced Apple Pay which is a mobile app that customers can use to pay for their goods and services using their Master Card, Visa, or American Express card.
Apple has created a convenient means of payment for customers and Master Card, Visa and American Express, through its fingerprint technology. Samsung eventually incorporated this technique and other smartphone brands are estimated to have it soon as well (David &David 2017:546).
Apple applies this intensive growth strategy by approving new producers in markets where the company does not have any presence yet, this intensive strategy applies mainly in developing markets. Apple implements the market development intensive growth strategy through novel products.
Through Apple Watch, the company develops its reach in the smart watch market. Such generic strategy requires that unique products should be offered to different market segments, which the company reaches through market development (David &David 2017:552).
Product development is a strategy that aims to increase sales by improving current products or services. (David&David 2017:129)“Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche” (WebFinance Inc.2018).
Product development requires that the company must offer attractive products to grow its market share and performance. Apple implements this intensive growth strategy through innovation in its research and development processes. Through this intensive growth strategy, Apple views innovation as a critical success factor.
In this intensive growth strategy, the firm also develops new products for the mobile market. Apple grows because new products and models allow the firm to generate more revenues. This intensive growth strategy agrees with the company’s generic strategy by focusing on unique Apple products that can increase profits (David &David. 2017:546-552)
It can be concluded that Apple Inc is a socially responsible company that employs key terms of the strategic management process such as long and short term objectives. Apple uses the first mover advantage as a means to achieve their strategies and uses some of the alternative and generic strategies.
The company faces external forces which include technological and economic forces amongst others. Apple has a functional organisational structure and the recommendation that they employ the divisional structure is viable because Apple competes in a growing industry.
As per the recommendations Apple must take care to review the bases of strategies, measure organisational performance and take corrective action where necessary. Apple has clear distinctive competencies that have created competitive advantage for them over their competitors and will remain a leader in the market. In 2011 Steve Jobs passed away and the current CEO of Apple Inc is Tim Cook.
