Professional Documents
Culture Documents
Apple Inc.
Apple Inc.
Apple Inc.
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I. TIME CONTEXT:
2015
VISION: “We strive to provide users of Apple products the best experience possible
MISSION: “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 its defining the future of mobile media and computing devices
with iPad.”
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VALUES:
Apple’s core values that serve as guideline principles in making the best
Quality - aiming not about being the most but about being the best
Dominance - the need to own and control technologies used in making the
products
Excellence - not settling for anything less than excellence in every group in
the company
Management
CEO of Apple Inc. is Tim Cook. In every process of Apple is a division directed
Marketing
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2. A part of apple strategy is its product’s simplicity, elegance and easy to use
features.
3. Apple Inc. sells its products throughout the world on its retail stores, online
stores, through the third party wholesalers and its direct sales force.
Operations
1. Apple Inc. designs manufactures and markets the personal computers along
with other mobile communication services, music and digital players. It also
3. Apple also introduced Apple Pay where customers can pay at retail store by
5. Apple acquired several firms including Beats Music and Beats Headphones.
United States.
8. Apple Music was released in 2015 and the company plans to release iOS 9,
Finance
1. Apple had no long term debt on its balance sheet for the past few years not
until 2013, Apple used for the first time debt to finance operations of $17 Billion
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2. In 2014, Apple had a long term debt of $29 Billion.
4. In 2014, Apple repurchase $90 Billion stock and raised dividend to 30%
increase.
5. Apple kept most of its cash in foreign banks to avoid US corporate taxes.
6. Apple derives its income from iPhone, iPad, Mac, iPod, iTunes and other
accessories.
Human Resources
customer service.
How will Apple Inc. enable to strengthen its competitive advantage among its
LONG-TERM OBJECTIVE:
SHORT-TERM OBJECTIVES:
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VII. SWOT ANALYSIS:
STRENGTHS
iPhone
It has the ability to offer its own credit system at lower cost to merchants
83% of all credit transactions in the US are compatible with Apple Pay.
WEAKNESSES
Premium pricing
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Incompatibility of products with other products/brands
OPPORTUNITIES
THREATS
Patent infringements
Product imitation
Market fragmentation
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IX. ANALYSIS OF ALTERNATIVES:
ADVANTAGES DISADVANTAGES
1. Produce diversified products 1. High marketing efforts are
customers
ADVANTAGES DISADVANTAGES
1. Brand loyal customers will be highly 1. Cost will extensively increase
industry leader
obsolescence of products
ADVANTAGES DISADVANTAGES
1. Affordability of products to customers 1. Decreases profit margin
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2. Increases number of buyers 2. Perception of low quality
X. DECISION CRITERIA:
profitable)
2. Cost 20 (20 being the cheapest) 13 15 17
3. Risks 25 (25 being the least risky) 16 19 17
4. Time 20 (20 being the fastest to 14 15 17
complete)
TOTAL 100 73 78 75
The chosen solution to solve the identified problem was the alternative course of
action no. 2 which states “Develop new features of its existing products.”
Apple Inc. Is doing fine now but for future growth, it must improve products by
developing new features so as its loyal customers would continue to patronize its
products as well as new markets will be attracted to buy Apple’s products. This
alternative will help Apple in the development process of innovation. It has numerous
disadvantages but its advantages are greater than the former which means that the
benefits of implementing it weigh more than the negative effects it may bring to the
company.
The proponents had set criteria to evaluate the different alternative courses of
action enumerated. In evaluating the ACAs, each of the member criticized each of the
alternative then averaged the sum of their critics. Based on the results of evaluation,
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ACA No. 2 has the highest score among the three which further means that ACA No. 1
and ACA No. 3 wouldn’t be the best solutions to the problem identified.
Strategies
Apple Inc. may use many but strong distribution channel to widen customer
distribution channel, Apple products will have a faster growth in revenue and in
Apple Inc. competes in a highly competitive market and their rivals tend to
follow the trend Apple has started. Apple could launch new features and design
for their products that other competitors could not offer to the customers and
3. System upgrade
the products. System upgrade could make the customers more satisfied with
the product. Apple Inc., through system upgrade, could fix incompatibilities of
old products and add additional features for the product easier.
Tactics
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1. Create designs of new features of existing products.
3. Develop a prototype.
performance, life cycle of the product and its reliability and safety.
and retailers.
Management Plan
complex but allows for a focused approach to both products and functions.
Marketing Plan
2. Provide video tutorial showing how the product works and how it solves the
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4. Use the e-mail marketing sequence that provide automated messages that go
out to users once they subscribed that would develop customer relationship and
Operations
1. Ensure that the right inventory is in the right place at the right time.
3. Manage large-scope projects, from initial concept through launch and beyond.
5. Develop a mechanism that would allow for the devices to be charged by other
Finance
1. Apple Inc. could offer its own in-house credit system at much lower cost to
2. With the increasing revenue of Apple Inc, it could undertake and produce
additional capacity for its product done through additional investments and further
financing.
Human Resource
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efficient decision-making
2. Incompatibility of products with other 2. Use its strong brand image and rapid
4. Rival firms or competitors annually 4. Roll out new smartphones that were
phones
Insist on excellence.
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