Apple Incorporated

Subject : MN315 Lecturer : Suon Vichea Presented by:

Outlines
1. Introduction

1. Introduction

PARENT COMPANY OVERVIEW

Name: Apple Incorporated Location: Cupertino, California CEO/ President: Steven Paul Jobs Company Annual Revenue: $65.2 billion (Fiscal year ended September 2010) Number of Employees: 49, 400 Employees (Fiscal year ended September 2010)

APPLES MISSION STATEMENT

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 reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.

Parent Organization Chart

GOALS IN THE NEXT TWO-YEARS

Company Annual Revenue: Increase revenue with new products and updated product to 65million Number of Employees: Increase the number of employees in all departments and expand the number of Apple Inc. stores location wide The main concern of Apple in 2011 is to be environmentally safe

Apples Strategic Positioning: High Valued Electronics at a High Price

Increase Profit, reduce costs Maximize Shareholder Value Enter New Markets

LABOR LAWS
Workmens Compensation Act, 1923 Payment of Wages Act, 1936 The Industrial Disputes Act, 1947 The Minimum Wages Act, 1948 The Maternity Benefit Act, 1961 Payment of Bonus Act, 1965 Payment of Gratuity Act, 1972

FINANCIAL LAWS AND REGULATIONS

The Reserve Bank of India Banking Regulation Act, 1949 Banking Companies Bill passed on August 9, 1969. India Accounting Standards SEBI established in 1988.

INDIA LAW
Structure of the Indian Judicial System
o Supreme Court, High Court, Courts of Civil Jurisdiction. o Based off of English common law.

Criminal law in India based on the Indian Penal Code. Supreme Court recently grants right to counsel on February 24, 2011. Important to consider Hindu Law in India.

IMPORTANT ASPECTS OF INDUSTRY AND GEOGRAPHY

Price lower with cheap labor Will population want to purchase our products? Indian Ocean Great trade opportunities 77% of trade done by se

ECONOMIC AND FINANCIAL CONSIDERATIONS

Tenth largest in world (nominal GDP) GDP per capita in U.S. dollars expected to triple by 2020 (Goldman Sachs) Population is young key because of our innovative products Time to invest is now (booming economy, great ROA) Safe place to invest not greatly affected by downturn

POLITICAL CONSIDERATIONS AND DEMOGRAPHICS

Shouldnt be a problem politically From 1991-2006, foreign investment increased from 150 million to 9.5 billion Youngest workforce (large economies) 17.5% of worlds population 65% of population is below 35

LABOR MARKET AND COMPETITION

Lower standard of living, cost of inputs decreases, cheaper wages Labor force participation rate= about 400 million out of 1 billion 30 million in organized employment, 340 in unorganized (organized private sector 3% of employment) Compete directly with Microsoft (PC vs Mac) We own everything else

PARENT COMPANY/ STRATEGY

United States is Apple Inc parent country. International strategy for international business.
o Determined by cost of reduction and local responsiveness. o Does not need to customize their products or marketing because it will raise cost overall.

Two Competitive Pressures

o Cost of reductions. o Pressure of local responsiveness.

PARENT COMPANY/ STRATEGY

Outsourcers face
o Telecommunications o Information technology o Language barriers

Levels of culture dealing with our international business

corporate culture o each organization has a distinct culture that is passed on from the older to new members and determines their way of thinking, doing and living
o with apple it would deal with the new upgrade of software and new gadgets they make

CULTURAL DIFFERENCES

CULTURAL DIFFERENCES PART 2

FOREIGN DIRECT INVESTMENT PLAN

Entry Strategy Greenfield investment Wholly owned subsidiary Location and experience priorities

FOREIGN DIRECT INVESTMENT PLAN

FOREIGN DIRECT INVESTMENT PLAN

FOREIGN DIRECT INVESTMENT PLAN

INTERNATIONAL BUSINESS METRICS

Great risk and potential Achievable goals and accurate measurements Key Performance Indicators Alignment of all levels in organization Choosing the correct KPIs

KEY PERFORMANCE INDICATORS

KEY PERFORMANCE INDICATORS

Market share Overhead costs Inventory Turnover Profit Margin Liquidity Employee Retention