Apple Assignment

Corporate Performance Report
APPLE INC.
CORPORATE
PERFORMANCE
REPORT
SUBMITTED TO: PARTICIPANTS

SIR MISBAH UL ISLAM
RIZVI
This report has been prepared in
accordance with the guidelines
01 Abid Hussain - EBS19542001
given by Sir Misbah ul Islam Rizvi 02 Erma Saleem - EBS19542013
in which corporate analysis of the

APPLE INC. has been performed
03 Hamza Ali - EBS19542018
04 MuhammadPAhsan
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05 Muhammad Hassan - EBS19542038

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Mission Statement
"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."
Vision Statement
We are “committed” in producing high quality products and providing high quality service thus setting
high industry standards for other competitors.
Apple Inc.’s Mission Statement and Vision Statement (An Analysis)

Apple Inc.’s mission statement and vision statement are bases for the company’s success as one of the
most valuable businesses in the world. Established in 1976, the company is a symbol of innovation and
elegance in design. This condition supports the brand, which is one of the major business strengths
identified in the SWOT analysis of Apple Inc. The company’s corporate mission and vision statements
motivate employees to support and contribute to innovation for competitive advantage. Apple Inc.’s
generic strategy and intensive growth strategies define such competitive advantage, especially to
counteract the effects of competitors like Samsung, Google, Amazon, IBM, Dell, Lenovo, Sony, and
PayPal. Apple has changed its corporate vision and mission statements over time to reflect changes in
the company from the time of Steve Jobs to the current leadership of Tim Cook. The vision statement
and mission statement now represent the company’s efforts in addressing business opportunities in the
computer technology, consumer electronics, cloud computing, digital distribution services, and
semiconductors industries.
Apple Inc.’s corporate mission and corporate vision are linked in terms of how they push for the
company’s continuous growth despite challenges in the competitive landscape. Considering the variety
of industries where the technology business operates, the corporate mission and corporate vision
embody the diversity of strategic approaches for these industries. A Porter’s Five Forces analysis of
Apple Inc. shows that the business deals with strong competition. The technology company must ensure
that its mission statement hints on the strategies to keep the business competitive. In relation, Apple’s
vision statement must direct business efforts toward a future of leadership in the global market.
Apple’s Corporate Mission Statement

Apple’s corporate mission is “to bring the best personal computing products and support to students,
educators, designers, scientists, engineers, businesspersons and consumers in over 140 countries
around the world.” This mission statement considers the changing business landscape that influences
the possibilities of what Apple Inc. can do. For instance, the company recognizes trends and changes in
the consumer electronics market and the industry environment. Apple’s press releases and official
statements point to this corporate mission as a way of addressing current concerns in the global market.
Its corporate mission statement indicates that Apple Inc. focuses on computing products as
organizational outputs. The term “computing products” encompasses not just computers and
smartphones, but also other goods or services primarily based on computing technology. For example,
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the company also offers cloud storage and software, as well as digital content distribution (App Store,
iTunes, etc.) and online payment services (Apple Pay). The mission statement also specifies that the
technology company’s target customers are practically everyone. As a result, Apple’s designs products
that address the needs and preferences of customers in various market segments. Moreover, the
corporate mission states that the company’s operations have a multinational reach, targeting consumer
electronics and online services markets around the world. The corporate mission statement’s focus on
computing products partly determines Apple Inc.’s marketing mix or 4Ps. This mission statement also
influences the company’s corporate vision statement, which guides strategic planning on how the
technology business brings the corporate mission into the future.
Apple’s Corporate Vision Statement

Apple Inc.’s corporate vision is “to make the best products on earth, and to leave the world better than
we found it.” Similarly, the company’s Vice President for Environment, Policy and Social Initiatives, Lisa
Jackson, stated, “We aim to create not just the best products in the world, but the best products for the
world.” Thus, the corporate vision statement aligns with Apple’s corporate social responsibility strategy,
and puts emphasis on sustainability, environmental conservation, and overall improvement of the
ecological impact of the business.
Apple’s vision statement influences strategic management in terms of the decisions that the company’s
executives make to reach a future of leadership in the various industries where the business operates.
The “best products” term indicates that the corporate vision sees the technology company as a world
leader in product design and development. The goal to have the best products challenges Apple to
continue pushing for novel innovation in product development. In this direction, the company’s vertical
integration helps in achieving a coherent business situation for leadership in the computer technology,
software and online services industries. In relation, Apple’s supply chain strategies support the design
and development of the best products by pushing for supplier improvement and excellence. To fulfill its
corporate vision statement, the company has strategies and policies that apply to its operations as well
as the operations of business partners, such as semiconductor component suppliers and manufacturers.
For example, Apple requires its suppliers to comply with its policies for environmental conservation and
fair labor practices. Such efforts directly address the second part of the consumer electronics company’s
vision statement, which specifies the need to improve business impact on the world. In a way, the
corporate vision expands Apple’s influence in the global community. Considering the emphasis on
excellence and environmental conservation, the vision statement influences Apple Inc.’s corporate
culture and its effect on human resources. It is worth noting that the technology firm’s aim of having the
best products is specified in both the corporate vision statement and the corporate mission statement.
Possible Improvements to Apple’s Corporate Mission & Corporate Vision

Apple Inc.’s mission statement satisfies some of the conventions in writing ideal corporate mission
statements. For example, the company’s corporate mission provides information about products,
customers, target markets, and technology. However, some adjustments can improve Apple’s mission
statement. Ideally, the statement should contain information about corporate image, and employees,
among other aspects of the computer technology business. Currently, Apple’s corporate mission focuses
on products, product development, industry leadership, and business sustainability. Thus, a
recommendation is to add information on corporate image, employees, and the current and possible
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future strategic aims of the business, such as goals pertaining to new devices and online services. Doing
so could make Apple’s mission statement easier to adopt and apply to day-to-day operations.
Apple’s vision statement shows the future direction of the business. It satisfies some of the conventional
characteristics of ideal corporate vision statements. For example, the corporate vision is clear in terms
of what Apple aims for, such as leadership in product design and development, and emphasis on
excellence as a business organization. Also, the vision statement is abstract, inspiring, and stable to
encompass the future of the technology business. However, to improve Apple’s vision statement, a
recommendation is to make it more detailed. Instead of providing a general statement, the company
could make the corporate vision more specific about such factors as strategic direction, as well as the
target future state of various business areas, like Internet services and artificial intelligence. Such
additional details could make it easier for Apple’s employees to understand and fulfill the corporate
vision statement.
References
Apple Inc. – A Letter from Lisa Jackson, April 2014.
Apple Inc. – Form 10-K.
Apple Inc. – Media Alert – Apple FY 00 First Quarter Results Conference Call.
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BUSINESS SWOT ANALYSIS
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Apple Inc. SWOT Analysis & Recommendations

Apple Inc.’s success is linked to the ability to use business strengths to overcome weaknesses and
threats, and to exploit opportunities in the industry environment. A SWOT analysis of the technology
company gives strategic insights on maximizing business growth based on its strengths and
opportunities. The SWOT analysis framework is a strategic management decision-making tool that
determines the most pressing issues facing the company, based on the internal business conditions and
the external environment. In this case, the SWOT analysis of Apple Inc. scans the business for relevant
strengths, weaknesses, opportunities, and threats (SWOT variables), with reference to various industries
and markets. The company operates in the computing technology (hardware and software), consumer
electronics, cloud computing services, and online digital content distribution services industries. This
condition necessitates that Apple develop a diverse set of strategies to ensure its competitiveness and
business growth.
This SWOT analysis of Apple Inc. presents the strategic factors that influence the decisions of CEO Tim
Cook and managers in developing the business. With its operations in various markets around the world,
the company deals with different sets of SWOT factors based on regional situations. Also, the Porter’s
Five Forces analysis of Apple Inc. establishes that the company faces strong competitive force linked to
the aggressiveness of other technology firms, such as Google, IBM, Amazon.com, Samsung, Microsoft,
Sony, Lenovo, Dell, and PayPal. This competitive landscape requires innovative strategies and tactics to
achieve continuous business growth and development, and to fulfill Apple’s corporate mission
statement and corporate vision statement.
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Apple’s Strengths (Internal Strategic Factors)

This aspect of the SWOT analysis framework identifies the strengths that enable Apple to overcome
weaknesses, take advantage of opportunities, and withstand threats in its technology business
environment. These strengths are internal factors specific to the conditions within the business
organization and its technological capabilities. In this case, the following are the most notable strengths
of Apple Inc.:
1. One of the world’s strongest brands

2. High profit margins based on premium pricing
3. Effective rapid innovation processes based on long history of technological innovation
Apple is one of the most valuable and strongest brands in the world. In the context of this SWOT
analysis, the company is capable of introducing profitable new products, such as new lines of mobile
devices, by virtue of its strong brand image. In addition, Apple’s marketing mix or 4P involves a premium
pricing strategy, which comes with high profit margins. This internal strategic factor is a major strength
because it maximizes profits, even when sales volumes are limited, such as in the case of MacBook
laptops. Moreover, the generic competitive strategy and intensive growth strategies of Apple Inc.
involve effective rapid innovation, which enables the business to keep abreast with the latest
technologies to ensure competitive advantages. Based on this aspect of the SWOT analysis of Apple Inc.,
the company’s strengths are difficult to compete with, thereby supporting continued leadership in the
global industry environment.
Weaknesses (Internal Strategic Factors)

In this aspect of the SWOT analysis, the emphasis is on the weaknesses or inadequacies of Apple and its
technological product development and marketing capabilities. Weaknesses are internal factors that are
obstacles to business growth, with consideration for relative performances of other technology
businesses. The following business weaknesses are the most notable in the case of Apple:
1. Limited distribution network for its goods

2. High selling prices
3. Dependence of sales in high-end market segments
Apple Inc. has a limited distribution network because of its policy of exclusivity. For example, the
company carefully selects the authorized sellers of its products, such as iPhones and Macs. The SWOT
analysis framework considers this exclusivity strategy as a factor that limits market reach, making the
company’s consumer electronics not readily available in all areas. This weakness exists despite
exclusivity’s advantages, such as Apple’s strong control on the distribution of products. In addition,
because of its premium pricing strategy, the technology company has the weakness of sales dependence
on high-end market segments. High prices attract customers from the middle- and high-income
brackets, and prevent customers from low-income brackets from easily purchasing Apple’s consumer
electronics. This internal strategic factor is a weakness because high-end segments represent only a
minority of the global market. Based on the internal factors in this aspect of the SWOT analysis, Apple
Inc.’s pricing and distribution strategies impose limitations or weaknesses in the business.
Opportunities for Apple Inc. (External Strategic Factors)

This aspect of the SWOT analysis of Apple Inc. pinpoints the most significant opportunities that are
available to the business. Opportunities are external factors based on the industry environment, such as
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the on-demand digital content market. These factors influence the strategic direction of business
organizations. In Apple’s case, the following are the most significant opportunities:
1. Expansion of the distribution network for wider consumer electronics market reach
2. More widespread and aggressive marketing for higher sales volumes based on rising demand
3. Development of new product lines in consumer electronics and online services
Apple Inc. has the opportunity to expand its distribution network. Such opportunity relates to the
weakness of the limited distribution of the company’s products, such as smartphones and tablets. This
SWOT analysis emphasizes the need to modify the technology company’s distribution strategy. An
expanded distribution network can help Apple reach more customers in the global market. In relation,
the company has the opportunity to increase its sales volumes through aggressive marketing, especially
for mobile products. This opportunity is linked to the rising demand for mobile access, as illustrated in
the PESTEL/PESTLE analysis of Apple Inc. Furthermore, the company has the opportunity to explore new
product lines to complement existing ones, such as online services. With further innovation, the
business can develop and introduce new products, like what it has already achieved with the Apple
Watch. Developing new product lines supports business growth, especially against other technology
firms in the international market. Thus, this aspect of the SWOT analysis of Apple indicates that the
business has major opportunities for further growth despite aggressive competition.
Threats Facing Apple Inc. (External Strategic Factors)

In this aspect of the SWOT analysis, the focus is on the threats that Apple experiences from various
sources, such as competitors like Samsung. Threats are external factors that limit or reduce the financial
performance of the technology-focused business. The following threats are the most significant to Apple
Inc.:
1. Aggressive competition involving large multinationals like Samsung, Amazon, and Microsoft
2. Imitation involving firms that compete based on low prices
3. Rising labor costs in various countries where the company maintains production facilities
Tough competition in the technology industry is partly because of the aggressiveness of firms. For
example, Apple competes with firms like Samsung, which also uses rapid innovation. In the context of
this SWOT analysis, aggressive competition has a limiting effect on the business, indicating the necessity
for strong fundamentals for maintaining competitive advantages in computer software and hardware,
and online services. In addition, Apple faces the threat of imitation of some products, such as the
iPhone. Local and multinational firms could imitate the design and features of Apple’s products. Also,
rising labor costs involving contract manufacturers, such as those in China, reduce profit margins or push
selling prices even higher. Based on the external strategic factors in this SWOT analysis, Apple Inc.’s
performance is threatened by aggressive competition and the imitation of product design.
SWOT Analysis of Apple Inc. – Recommendations

The internal and external factors discussed in this SWOT analysis indicate that Apple Inc. possesses
major strengths to effectively address organizational weaknesses. The company can also use these
strengths to exploit opportunities, such as the expansion of its consumer electronics distribution
network. Moreover, the company can use its strong brand image and rapid innovation processes to
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successfully develop and launch new technology product lines. However, Apple faces the threats of
aggressive competition and imitation, which are challenges affecting players in the global market for
consumer electronics, computer hardware and software, and online digital content distribution services.
Based on the strategic issues highlighted in this SWOT analysis of Apple Inc., a recommendation is to
continue the aggressive and rapid innovation in developing the company’s products. Technological
innovation reduces the adverse effects of imitation. Also, it is recommended that Apple further enhance
the automation of its production processes, and support the automation of its contract manufacturers,
as a way of addressing rising labor costs. Another recommendation is to establish partnerships with
more distributors to improve the overall market reach of the company’s consumer electronic products.
References
 Apple Inc. – Form 10-K.

 Apple Inc.’s Website.
 Bernroider, E. (2002). Factors in SWOT Analysis Applied to Micro, Small-to-Medium, and Large
Software Enterprises: An Austrian Study. European Management Journal, 20(5), 562-573.
 Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis – where are we now? A review of
academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.
 Heracleous, L. (2013). Quantum strategy at Apple Inc. Organizational Dynamics, 42(2), 92-99.
 Leigh, D., & Pershing, A. J. (2006). SWOT analysis. The Handbook of Human Performance
Technology, 1089-1108.
 Lin, S. P., Huang, J. L., Chang, J., & Kao, F. C. (2012). How to start continuously improving
innovation in organizational knowledge: A case study on Apple, Inc. In Technology Management
for Emerging Technologies (PICMET), 2012 Proceedings of PICMET’12: (pp. 2290-2309). IEEE.
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Apple Inc.’s Generic Strategy & Intensive Growth Strategies

Apple Inc.’s generic strategy and intensive growth strategies directly relate to the company’s strategies
in pricing, marketing, and other areas of the business. Michael E. Porter’s model for generic strategies
defines strategic options that the company can use to develop its competitive advantages in the
consumer electronics and information technology and services industries. As one of the most valuable
companies in the world, Apple shows that its generic strategy is a major determinant of competitive
advantage against other firms like Samsung, Google, Amazon, Microsoft, Dell, HP, Lenovo, Sony, IBM,
BlackBerry, Huawei, LG, and even Walmart with its content distribution service, Vudu. On the other
hand, Igor Ansoff’s Matrix of growth strategies presents ways for the technology business to intensively
grow in current or new markets and industries. In this case, Apple’s intensive growth strategies support
the ability to maintain a strong position in the global market. With a high rate of innovation and
emphasis on excellence in product design, the enterprise succeeds even with its relatively high selling
prices. This successful positioning indicates Apple’s effectiveness in using its generic strategy for
competitive advantage, and intensive strategies for business growth.
Apple’s generic strategy aligns with the company’s intensive growth strategies, especially in maximizing
the use of the organization’s competitive advantages. In particular, the intensive growth strategy of
product development is key to fulfilling this generic strategy and supporting the long-term growth and
success of the company’s technological goods and services. This alignment between the generic
competitive strategy and the intensive growth strategies provide support for fulfilling Apple Inc.’s
corporate mission and vision statements.
Apple’s Generic Strategy (Porter’s Model) & Objectives

Apple Inc.’s generic strategy is broad differentiation. This generic strategy focuses on key features that
differentiate the company and its information technology products from competitors. Through the
broad differentiation generic strategy, Apple stands out in the market. For example, elegant design and
user-friendliness of products, combined with high-end branding, effectively differentiate the technology
business. This generic strategy means that Apple always aims to set itself apart from competitors not by
price but by competitive advantages based on product design that attracts customers. Such design
includes seamless connectivity among devices and cutting-edge aesthetics. Even though this generic
strategy makes Apple different, the company still broadly reaches various segments of the market. The
firm’s products are designed for everyone, thereby supporting a broad market reach. For example,
Apple targets individuals and business organizations through the MacBook product line. In this way, the
generic strategy of broad differentiation supports the company in maintaining its competitive
advantage, leadership, and position as a high-end and high-value technology business.
The broad differentiation generic strategy has significant implications on Apple’s strategic objectives. For
example, to apply this strategy, the company must continue emphasizing innovation through research
and development. Apple must keep developing innovative products so that the business maintains its
competitive advantage. Competitors eventually catch up with new technologies and new products, so
the broad differentiation generic strategy compels the company to continuously innovate to keep itself
always ahead of the competition. Thus, continuous innovation is one of Apple’s strategic objectives
based on the broad differentiation generic competitive strategy. In addition, to maintain business
growth, the company must keep growing its market reach, such as in the global consumer electronics
market. In its generic strategy for competitive advantage, Apple does not focus on any specific market
segment. Instead, the company competes by selling various goods and services that suit the various
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segments of the consumer electronics and information technology services industries. Thus, another of
Apple’s strategic objectives based on its generic strategy is to penetrate markets to ensure a broad
reach. Such expansion and business growth are achieved through intensive strategies for growth.
Apple’s Intensive Growth Strategies (Ansoff Matrix)

Product Development. Apple uses product development as its main intensive strategy for growth.
Product development requires that the company develop attractive and profitable technology products
to grow its market share and business performance. Apple implements this intensive growth strategy
through innovation in its research and development processes. Through product development, the
company uses innovation as a critical success factor and competitive advantage. For example, the
business continues to innovate products like the iPhone, iPad, and Apple Watch. In this intensive growth
strategy, the company grows because new products allow the business to generate more revenues, such
as through the sale of new iPhone models. The company’s generic strategy agrees with this intensive
growth strategy by focusing on technological innovation to increase competitive advantage and profits.
Apple Inc.’s organizational structure supports this growth strategy. The structure’s product-based
divisions enable strategic management specific to product development. Also, Apple Inc.’s
organizational culture emphasizes innovation that supports product development.
Market Penetration
Apple Inc. uses market penetration as its second most significant intensive strategy for growth. Market
penetration involves gaining a larger share of the current market by selling more of the company’s
current products. For example, Apple applies this growth strategy by selling more iPhones and iPads to
its current markets in North America. Also, the company achieves more sales by adding more authorized
sellers to boost competitive advantages in its current markets. This approach penetrates markets where
Apple has not yet achieved a significant position. In relation, under the market penetration intensive
growth strategy, the company uses promotion through various websites and media outlets.
Advertisements encourage more people to buy Apple products. This intensive growth strategy agrees
with the company’s broad differentiation generic strategy by addressing the need to broadly capture the
market through the sale of more technological products to more customers. Apple Inc.’s marketing mix
or 4P influences the effectiveness of the organization’s competitive advantage and this intensive growth
strategy.
Market Development
Apple uses market development as a low-priority intensive strategy for growth. Using the company’s
competitive advantages, market development involves selling existing products in new markets. For
example, Apple Inc. applies this intensive growth strategy by authorizing new sellers in markets where
the company does not have any presence yet. This growth strategy agrees with the generic strategy of
broad differentiation by expanding the company’s market reach, such as by introducing its current
consumer electronics to new overseas markets. This generic strategy for competitive advantage also
requires offering products to different market segments, which Apple satisfies via market development.
Through its various product models of consumer electronics and other goods and services, the company
fulfills this strategic requirement. In relation, the business strengths discussed in the SWOT analysis of
Apple Inc. facilitate the implementation of market development.
Strategic Analysis and Recommendations for Apple Inc.

Apple’s generic strategy of broad differentiation adds competitive advantage by making the business
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stand out. Differentiation in product function and design supports the firm’s goal of leading the market
through technological innovation. Innovation is at the heart of Apple Inc.’s business. However, to
improve its application of this generic strategy for competitive advantage, the company must
aggressively penetrate markets. This recommendation is especially applicable in developing countries
where the corporation has limited market reach for its information technology goods and services.
Apple Inc.’s main intensive growth strategy is product development. Market penetration and market
development have lower priority in this technology enterprise. These intensive growth strategies agree
with and support Apple’s generic strategy. The company is strong in product development through
innovation. However, to improve performance, Apple needs to emphasize more on market penetration
and market development. These two intensive growth strategies can improve the company’s resilience
against aggressive competitors like Samsung. Also, Apple Inc.’s operations management can optimize
the effectiveness of these growth strategies and the broad differentiation generic strategy for
competitive advantage.
References
 Akan, O., Allen, R. S., Helms, M. M., & Spralls III, S. A. (2006). Critical tactics for implementing
Porter’s generic strategies. Journal of Business Strategy, 27(1), 43-53.
 Allen, R. S., & Helms, M. M. (2006). Linking strategic practices and organizational performance to
Porter’s generic strategies. Business Process Management Journal, 12(4), 433-454.
 Bajarin, T. (2014, July 14). Understanding Apple’s ‘Continuity’ Strategy. Time.
 Parnell, J. A. (2006). Generic strategies after two decades: A reconceptualization of competitive
strategy. Management Decision, 44(8), 1139-1154.
 Pretorius, M. (2008). When Porter’s generic strategies are not enough: Complementary
strategies for turnaround situations. Journal of Business Strategy, 29(6), 19-28.
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Apple Inc. Five Forces Analysis (Porter’s Model)

Apple Inc. has achieved success as one of the most valuable companies in the world. This Five Forces
analysis gives insights about the external factors influencing the company’s success. Michael E. Porter’s
Five Forces framework is a strategic management tool for evaluating the five forces affecting the
business organization: customers, suppliers, substitutes, new entrants, and competition. A Five Forces
analysis of Apple Inc. sheds light on what the company does to ensure industry leadership despite the
negative effects of external factors in the competitive landscape of the computer software and
hardware, consumer electronics, and online digital content distribution markets, which involve firms like
Microsoft, Google, Amazon, Walmart, Samsung, Dell, Sony, and Lenovo. Established in 1976, Apple has
succeeded to become a dominant competitor in the industry under the leadership of Steve Jobs. Based
on this Five Forces analysis, the company addresses competition and the bargaining power of buyers,
which are among the most significant external factors impacting the business. Also, this Five Forces
analysis indicates that Apple Inc. must focus its strategic efforts on these two external factors to keep its
leadership in the industry.
This Five Forces analysis (Porter’s model) of external factors in Apple Inc.’s industry environment points
to competitive rivalry or intensity of competition, and the bargaining power of buyers or customers as
the primary forces for consideration in the company’s strategic formulation. Nonetheless, all of the five
forces influence the company’s business situation, together with the effects of others external factors,
such as the ones identified in the PESTEL/PESTLE analysis of Apple Inc.
Five Forces Analysis of Apple Inc. – Overview

Apple’s strategies are partly based on the need to address forces in the external business environment.
These forces can limit or reduce the firm’s market share, revenues, profitability, and business
development potential. This Five Forces analysis, based on Porter’s framework, points to the following
strengths or intensities of external factors in Apple Inc.’s industry environment:
1. Competitive rivalry or competition: Strong force

2. Bargaining power of buyers or customers: Strong force
3. Bargaining power of suppliers: Weak force
4. Threat of substitutes or substitution: Weak force
5. Threat of new entrants or new entry: Moderate force
Considering the five forces, Apple must focus its attention on competitive rivalry and the bargaining
power of buyers. This external analysis supports the company’s current position of continuous
innovation. Through rapid and continuous innovation, Apple effectively addresses the five forces in its
external environment, although much of the company’s effort is to strengthen its position against
competitors and to keep attracting customers to Apple products. An applicable recommendation is to
intensify research and development for innovation to develop novel products that will complement the
iPhone, the iPad, and other existing products.
Competitive Rivalry or Competition with Apple (Strong Force)

Apple faces the strong force of competitive rivalry or competition. This component of Porter’s Five
Forces analysis model determines the intensity of the influence that competitors have on each other. In
Apple’s case, this influence is based on the following external factors:
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1. High aggressiveness of firms (strong force)

2. Low differentiation of products (strong force)
3. Low switching cost (strong force)
Companies like Samsung and LG aggressively compete with Apple. Such aggressiveness, observable in
rapid innovation, aggressive advertising, and imitation, impose a strong force in the industry
environment. Moreover, in terms of product differentiation, available products in the market are
generally similar in fulfilling specific purposes. For example, many popular apps are available for Android
and iOS devices, and cloud storage services from different companies are available to iOS users. In
Porter’s Five Forces analysis model, this condition creates a strong force by making it easy for customers
to switch to other sellers or providers. On the other hand, the low switching cost means that it is easy
for customers to switch from Apple to other brands, based on price, function, accessibility, network
externalities, and related concerns. The combination of these external factors in this part of the Five
Forces analysis leads to tough competitive rivalry that is among the most significant considerations in
Apple’s strategic management.
Bargaining Power of Apple’s Customers/Buyers (Strong Force)

The bargaining power of buyers is strong in affecting Apple’s business. This component of Porter’s Five
Forces analysis model determines how buyers’ purchase decisions and related preferences and
perceptions impact businesses. In Apple Inc.’s case, buyers’ strong power is based on the following
external factors:
1. Low switching cost (strong force)

2. Small size of individual buyers (weak force)
3. High buyer information (strong force)
It is easy for customers to change brands, thereby making them powerful in compelling companies like
Apple to ensure customer satisfaction. On the other hand, each buyer’s purchase is small compared to
the company’s total revenues. Porter’s Five Forces framework indicates that this condition makes
customers weak at the individual level. However, the availability of detailed comparative information
about competing products’ features empowers buyers to shift from one provider to another. This
external factor enables buyers to exert a strong force on Apple and other brands. Thus, this part of the
Five Forces analysis shows that Apple must include the bargaining power of buyers or customers as one
of the most significant strategic variables in the business.
Bargaining Power of Apple’s Suppliers (Weak Force)

Apple Inc. experiences the weak force of the bargaining power of suppliers. This component of Porter’s
Five Forces analysis model indicates the influence of suppliers in imposing their demands on the
company and its competitors. In Apple’s case, suppliers have a weak bargaining power based on the
following external factors:
1. Moderate to high number of suppliers (weak force)

2. Moderate to high overall supply (weak force)
3. High ratio of firm concentration to supplier concentration (weak force)
The global size of its supply chain allows Apple Inc. to access many suppliers around the world. In
Porter’s Five Forces analysis context, the resulting high number of suppliers is an external factor that
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presents only a weak to moderate force against the company. In relation, the moderate to high overall
supply of inputs, such as semiconductors, makes individual suppliers weak in imposing their demands on
firms like Apple. Also, the ratio of firm concentration to supplier concentration further limits suppliers’
power and influence in the industry. This external factor reflects the presence of a small number of big
companies like Apple and Samsung, in contrast to a larger number of medium-sized and big suppliers.
Thus, this part of the Five Forces analysis shows that the bargaining power of suppliers is a minor issue
in developing Apple Inc.’s strategies for supply chain management, value chain effectiveness,
innovation, and industry leadership.
Threat of Substitutes or Substitution (Weak Force)

The competitive threat of substitution is weak in affecting Apple Inc.’s computing technology, consumer
electronics, and online services business. This component of Porter’s Five Forces framework determines
the strength of substitute products in attracting customers. In Apple’s case, substitutes exert a weak
force based on the following external factors:
1. Moderate to high availability of substitutes (moderate force)

2. Low performance of substitutes (weak force)
3. Low buyer propensity to substitute (weak force)
Some substitutes to Apple products are readily available in the market. For example, instead of using
iPhones, people can use digital cameras to take pictures, and landline telephones to make calls. In
Porter’s Five Forces analysis model, this external factor exerts a moderate force in the industry
environment. However, these substitutes have low performance because they have limited features.
Many customers would rather use Apple products based on convenience and advanced functions. This
condition makes substitution a weak force in impacting the company’s business. Also, buyers have a low
propensity to substitute. For instance, customers would rather use smartphones than go through the
hassle of buying and maintaining a digital camera, a cellular phone, and other devices. This part of the
Five Forces analysis shows that Apple does not need to prioritize the threat of substitution, specifically in
management decisions in business processes like marketing, market positioning, and product design and
development.
Threat of New Entrants or New Entry (Moderate Force)

Apple Inc. experiences the moderate force of the threat of new entrants. This component of Porter’s
Five Forces analysis model indicates the effect and possibility of new competitors entering the market.
In Apple’s case, new entrants exert a moderate force based on the following external factors:
1. High capital requirements (weak force)

2. High cost of brand development (weak force)
3. Capacity of potential new entrants (strong force)
Establishing a business to compete against firms like Apple Inc. requires high capitalization. Also, it is
extremely costly to develop a strong brand to compete against large companies like Apple. These
external factors make new entrants weak. However, there are large firms with the financial capacity to
enter the market. For example, Google has already done so through products like Nexus smartphones.
Samsung also used to be a new entrant. These examples show that there are large companies that have
the potential to directly compete against Apple Inc. Thus, the overall threat of new entry is moderate.
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This part of the Five Forces analysis shows that Apple must maintain its competitive advantage through
innovation and marketing to remain strong against new entrants’ moderate competitive force.
References

 Apple Inc.’s E-commerce Website.
 Burke, A., van Stel, A., & Thurik, R. (2010). Blue ocean vs. five forces. Harvard Business
Review, 88(5), 28-29.
 Chen, C. M., & Ann, B. Y. (2016). Efficiencies vs. importance-performance analysis for the leading
smartphone brands of Apple, Samsung and HTC. Total Quality Management & Business
Excellence, 27(3-4), 227-249.
 Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: A set of industry
analysis templates. Competitiveness Review, 24(1), 32-45.
 Flores, M., Musgrove, K., Renner, S., Hinton, V., Strozier, S., Franklin, S., & Hil, D. (2012). A
comparison of communication using the Apple iPad and a picture-based system. Augmentative
and Alternative Communication, 28(2), 74-84.
 Gershon, R. A. (2013). Digital media innovation and the Apple iPad: Three perspectives on the
future of computer tablets and news delivery. Journal of Media Business Studies, 10(1), 41-61.
 Grundy, T. (2006). Rethinking and reinventing Michael Porter’s five forces model. Strategic
Change, 15(5), 213-229.
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Apple Inc.’s Marketing Mix or 4Ps (An Analysis)

Apple Inc.’s marketing mix (4P) indicates how the company matches its business activities to the
conditions of the global market for information technology, consumer electronics, and online services. A
company’s marketing mix involves the strategies and tactics pertaining to the implementation of a
marketing plan. The focus of the marketing mix is on the 4P variables, namely, Product, Place,
Promotion, and Price. In this business case, the marketing mix is specific to the technological nature of
Apple’s business. For example, the company’s 4Ps encompass multinational operations in the consumer
electronics market, the information technology market, the Internet services market, and the digital
content distribution market. Such diversity in operations brings Apple Inc. in competition with a variety
of firms, such as Google, Amazon.com, Samsung, Dell, Lenovo, Sony, and PayPal, as well as Microsoft,
IBM and Intel. These competitors are known for their aggressiveness in innovation and marketing. As a
result, Apple has a marketing mix that involves various strategies and tactics that correspond to the
approaches of these other firms.
In developing its marketing mix, Apple Inc. uses an approach that focuses on premium branding. This
approach involves capitalizing on the premium brand, and ensuring that all of the 4P elements support
the maintenance of a strong brand image. For example, Apple’s prices match its premium brand, as well
as the corresponding consumer perception that equates the company’s products with high value and
high quality. Reinforced with appropriate 4Ps, such response to the market enables the corporation to
keep its wide profit margins. These conditions help fulfill Apple Inc.’s corporate vision and mission
statements.
Apple’s Products (Product Mix)

This marketing mix element determines the outputs of the business organization. In this case, Apple’s
product mix includes goods and services that are classified as, or involves information technology.
However, the company continues to expand its product mix, creating the possibility of adding non-IT-
related products in this 4P element. Apple Inc.’s main product lines are as follows:
1. Mac
2. iPhone
3. iPad
4. iPod
5. Apple Watch
6. Apple TV
7. Digital content
8. Software
9. Accessories
10. Cloud services
These product lines are associated with human resource utilization and business processes based on
product-based divisions, which are a characteristic of Apple Inc.’s corporate structure. The Mac product
line includes desktop and laptop computers of various sizes for different market segments. On the other
hand, the iPad, iPhone, iPod, and Apple Watch are mobile devices with some functions similar to those
of Mac products. This element of the marketing mix shows that the company operates in the consumer
electronics products. In the company’s current strategic management approaches, the Digital Content
product line includes digital music, videos, e-books, and games. Through digital content, Apple TV, and
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Software like mobile apps, among other products, Apple Inc. operates in the digital content distribution
industry. Moreover, the company’s 4Ps include products based on cloud technology, which allows
customers to store and access their data, and use software as a service (SaaS), such as iWork for iCloud.
The product lines in this 4P element are based on the outputs of the product development growth
strategy (see Apple’s Generic Competitive Strategy & Intensive Growth Strategies). This element of the
marketing mix reflects Apple Inc.’s evolution from a computer technology business into an increasingly
diversified business with focus on information technology.
Place or Distribution in Apple Inc.’s Marketing Mix

This element of the marketing mix involves the selection of appropriate places or venues through which
the company distributes its products. Apple Inc.’s business case involves company-owned locations, as
well as other parties that the company authorizes to distribute its products. The following places are
included in Apple’s distribution strategy:
1. Apple Store locations

2. Company-owned website and online stores for desktop and mobile
3. Authorized sellers
4. Telecommunications companies
Apple Store is a subsidiary of Apple Inc. that operates physical or brick-and-mortar stores that sell the
company’s products, along with related products from other manufacturers. For example, these stores
sell MacBook units, as well as peripheral devices from other companies. In addition, customers can buy
products through Apple’s website and online stores for desktop and mobile. Customers can buy
consumer electronics through the company’s website. Apps, music, movies, and other digital content
are available through online stores for desktop and mobile, such as the App Store and the iTunes Store.
In this element of the marketing mix, the inclusion of these online distribution channels helps optimize
international market reach. Also, Apple Inc. includes authorized sellers in its distribution strategy. These
sellers operate stores in various strategic locations, such as in shopping malls in different markets
around the world. The sellers include large retail firms like Walmart and Best Buy. Some authorized
resellers sell through their own stores as well as their seller accounts on Amazon.com. Moreover, the
company has agreements with various telecommunications companies, such as Verizon, AT&T, and
Sprint, which offer iPhone units integrated into some of their telecommunications service packages
available to subscribers in local or regional target markets. Thus, Apple’s marketing mix is
comprehensive in taking advantage of online and non-online distribution channels.
Apple’s Promotions (Promotional Mix)

Also called the marketing communications mix, this element of the marketing mix determines the
communications tactics that the company uses to reach its target customers. Apple Inc. promotes its
products in various ways, involving different communications channels and parties. In addressing this 4P
element, the company emphasizes the premium brand image and premium quality of its products. The
following communications tactics are in Apple’s promotional mix:
1. Advertising
2. Personal Selling
3. Sales Promotion
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4. Public Relations
Apple Inc.’s marketing mix includes advertising, such as on Google’s digital advertising network and on
technology news websites. The company has agreements with various prominent websites to advertise
and promote Apple products. In addition, the company uses personal selling in the form of Apple Store
employees who provide product-specific information in the aim of convincing store visitors to make a
purchase. Also, among the 4Ps, this element involves sales promotion, which usually happens at the
Apple Store locations and authorized reseller locations. For example, some locations offer old models at
discounted prices when bundled with larger or more expensive products. Moreover, the company uses
public relations to optimize its corporate image. For instance, Apple Events, leaks of new product
features, press releases, and exclusive interviews are carefully executed to maximize positive publicity.
The company is also involved in various initiatives, such as ConnectED, which aims to improve formal
education outcomes, while promoting the business and its products. These efforts are linked to Apple’s
corporate social responsibility strategy and stakeholder management efforts. The company uses such
communications tactics to satisfy this element of the marketing mix, pertaining to business needs in
reaching more customers worldwide.
Apple’s Prices and Pricing Strategies

This element of the marketing mix sets prices, price points, and price ranges for the company’s products.
Apple Inc. uses the following pricing strategies:
1. Premium pricing strategy

2. Freemium pricing strategy
The premium pricing strategy involves offering products at a premium. In theory, a premium is an
amount that is applied in addition to the typical or common price. In this regard, Apple’s use of the
premium pricing strategy sets high prices for its products. For example, in general, iPhones are more
expensive than Samsung smartphones. Premium pricing maximizes profit margins. Even though the
SWOT analysis of Apple Inc. shows that such high prices are a weakness, the company utilizes premium
pricing in combination with premium branding and creative innovation. Such combination ensures
competitiveness. Creative innovation is supported through Apple’s organizational culture. Aside from
premium pricing, the company also uses the freemium pricing strategy. This strategy involves “free” and
“premium” pricing combined into a single strategy. In this freemium pricing case, some of Apple Inc.’s
products are free, but customers pay to access more, advanced, or better features. For example, the
company offers free 5-gigabyte iCloud storage. However, to add more storage capacity, customers must
pay a recurring fee. In this regard, Apple’s marketing mix is aligned with premium branding and
associated product design and development efforts.
References
 Apple Inc. – Apple Events.

 Apple Inc. – ConnectED.
 Apple Inc. – Find a Store.
 Apple Inc. – iCloud Storage Plans and Pricing.
 Apple Inc.’s E-commerce Website.
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 Borden, N. H. (1964). The concept of the marketing mix. Journal of Advertising Research, 4(2), 2-

7.
 Carpenter, G. S., & Lehmann, D. R. (1985). A model of marketing mix, brand switching, and
competition. Journal of Marketing Research, 318-329.
 Constantinides, E. (2006). The marketing mix revisited: Towards the 21st century
marketing. Journal of Marketing Management, 22(3-4), 407-438.
 Danaher, P. J., Hardie, B. G., & Putsis Jr., W. P. (2001). Marketing mix variables and the diffusion
of successive generations of a technological innovation. Journal of Marketing Research, 38(4),
501-514.
 Datta, H., Ailawadi, K. L., & van Heerde, H. J. (2017). How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response? Journal of
Marketing, 81(3), 1-20.
 Gronroos, C. (1994). From marketing mix to relationship marketing: Towards a paradigm shift in
marketing. Management Decision, 32(2), 4-20.
 Naik, P. A., Raman, K., & Winer, R. S. (2005). Planning marketing mix strategies in the presence
of interaction effects. Marketing Science, 24(1), 25-34.
 Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality function deployment and new
product development with a focus on marketing mix 4P model. Asian Journal of Research in
Marketing, 4(2), 98-108.
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Apple Inc.’s Organizational Structure & Its Characteristics (An Analysis)

Apple Inc.’s organizational structure contributes to effective and rapid innovation, which is a critical
success factor of the business in the information technology, online services, and consumer electronics
industries. A company’s organizational or corporate structure is the combination of workforce groups,
resources, and interconnections among these groups and resources in the business. The organizational
design determines how the organizational structure is developed and managed. In this business analysis
case of Apple Inc., the corporate structure supports strategies that push for further technological
innovation. The company’s structural characteristics maintain a traditional hierarchy, with some key
elements from other types of organizational structure. Apple Inc.’s success is linked to innovation and
the leadership of Steve Jobs, and its corporate structure is partly responsible for ensuring support for
such leadership. Now, under Tim Cook’s leadership, Apple has made some small changes in its
organizational structure to suit current global market and industry demands.
Apple’s organizational structure is effective in supporting business performance to ensure leadership in

the industry, especially with regard to competing against Google, Microsoft, IBM, Intel, Amazon.com,
Sony, PayPal, and many other firms. The Porter’s Five Forces analysis of Apple Inc. determines that these
competitors impose the strong force of competitive rivalry in the company’s external environment. Still,
through the effective use and evolution of its corporate structure, Apple continues to improve its
capabilities and competitive advantages, especially in the area of rapid and creative innovation and
product design for competitive products in the international market.
Apple’s Organizational Structure Type and Characteristics

Apple Inc. has a hierarchical organizational structure, with notable divisional characteristics and a weak
functional matrix. The hierarchy is a traditional structural feature in business organizations. The
divisional characteristics refer to the product-based grouping within Apple, such as for iOS and macOS.
The weak functional matrix involves inter-divisional collaboration, while the hierarchy is preserved. The
following are the main characteristics of Apple’s corporate structure:
1. Spoke-and-wheel hierarchy
2. Product-based divisions
3. Weak functional matrix
Spoke-and-Wheel Hierarchy
A bird’s-eye view of Apple’s organizational structure shows considerable hierarchy. In the past,
everything went through Steve Jobs. Jobs made all the major strategic management decisions. However,
under Tim Cook’s leadership, this hierarchy in Apple’s corporate structure has slightly changed. The
company now has more collaboration among different parts of the organization, such as software teams
and hardware teams. Apple’s vice presidents have more autonomy, which was limited and minimal
under Jobs. Thus, the company’s organizational structure is now less rigid, but still has a spoke-and-
wheel hierarchy where Tim Cook is at the center. The upper tier (innermost tier in the spoke-and-wheel
circle) of the corporate structure has function-based grouping, which is an element derived from the
functional type of organizational structure. Senior vice presidents who report to Tim Cook handle
business functions. For example, Apple has a senior vice president for retail, and a senior vice president
for worldwide marketing. In this structural feature, the company’s top leaders address business needs in
terms of business function areas.
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Product-based Divisions
The upper and lower tiers of Apple’s corporate structure has product-based divisions, which is an
element derived from the divisional type of organizational structure. There are senior vice presidents
and vice presidents for different outputs or products. For example, Apple has a Senior Vice President for
Software Engineering (iOS and macOS), a Senior Vice President for Hardware Engineering (Mac, iPhone,
iPad and iPod), and a Senior Vice President for Hardware Technologies (hardware components). Apple
Inc.’s marketing mix or 4P is linked to this structural characteristic. This aspect of the corporate structure
is used to manage specific products or product components that the company delivers to its target
customers.
Weak Functional Matrix

Apple Inc.’s weak functional matrix refers to the collaborative interactions among various components
of the business. In a weak functional matrix, top management determines project direction, while
project heads have limited authority and control. For example, the corporate structure allows hardware
teams to collaborate with software teams. In this way, the company facilitates information
dissemination that is necessary for innovation processes. This structural feature contributes to effective
and rapid innovation processes, which are a major business strength shown in the SWOT analysis of
Apple Inc. Through this characteristic of the organizational structure, the company maintains strong
innovation processes that support brand development and the use of premium-pricing strategies.
Apple Inc.’s Corporate Structure – Advantages, Disadvantages,

Recommendations
Strong Corporate Control

The hierarchy in Apple’s organizational structure supports strong management control in the
organization. Theoretically, hierarchy empowers top leaders like Tim Cook to control everything in the
organization. Through the hierarchy, business functions and product-based groups are effectively
controlled through the decisions of the CEO and other top executives. This advantage of Apple Inc.’s
corporate structure facilitates rapid and effective strategic management implementation, and helps in
establishing coherence throughout the entire organization.
Limited Organizational Flexibility.

Apple’s corporate structure has the downside of low flexibility. Hierarchy typically prevents lower levels
of the structure to flexibly respond to current business needs and market demands. For example, the
company’s product-based divisions must wait for directives from the CEO or other top executives to
proceed in implementing changes that address trends in the market for consumer electronics. However,
Tim Cook has already made slight improvements by increasing collaboration among different parts of
the firm. Such collaboration improves organizational flexibility. Still, Apple’s organizational structure
does not support rapid changes because everything must go through Tim Cook and the top
management.
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References

 Apple Inc. – Leadership.
 Csaszar, F. A. (2013). An efficient frontier in organization design: Organizational structure as a
determinant of exploration and exploitation. Organization Science, 24(4), 1083-1101.
 Damanpour, F., & Aravind, D. (2012). Organizational structure and innovation revisited: From
organic to ambidextrous structure. Handbook of Organizational Creativity, 502-503.
 Heracleous, L. (2013). Quantum Strategy at Apple Inc. Organizational Dynamics, 42(2), 92-99.
 Lehman, G., & Haslam, C. (2013, December). Accounting for the Apple Inc. business model:
Corporate value capture and dysfunctional economic and social consequences. In Accounting
Forum (Vol. 37, No. 4, pp. 245-248). Elsevier.
 Marengo, L., & Pasquali, C. (2012). How to get what you want when you do not know what you
want: A model of incentives, organizational structure, and learning. Organization Science, 23(5),
1298-1310.
 Sakhartov, A. V. (2016). Selecting Corporate Structure for Diversified Firms. In Academy of
Management Proceedings (Vol. 2016, No. 1, p. 11521). New York: Academy of Management.
 Salimova, T. A., Biryukova, L. I., Makolov, V. I., & Levina, T. A. (2015). Conceptual provisions of
formation of the quality management system within the integrated corporate
structure. International Business Management, 9(6), 1129-1135.
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Apple Inc. Stakeholders: A CORPORATE SOCIAL RESPONSIBILITY Analysis

Apple’s success is partly due to its ability to satisfy stakeholders and corporate social responsibilities
(CSR). Stakeholder groups impose demands that translate to corporate social responsibilities, which
influence firm performance. In Apple’s case, stakeholders significantly affect the business in terms of
customer perception and sales revenues. Considering the continued high value of its brand, Apple
effectively accounts for stakeholders in its strategies and policies. For instance, the company addresses
stakeholders’ environmental concerns through a policy on sustainable material sourcing. Apple has a
firm and holistic approach in addressing the interests of stakeholder groups significant to the business.
These stakeholder groups compel Apple to improve, and Apple affects them by satisfying their interests.
Apple’s stakeholders have varied concerns encompassing product quality and function, business
sustainability, employment practices, and financial performance. These interests highlight the need for a
holistic approach in corporate social responsibility efforts, which Apple already uses in its aims to satisfy
major stakeholder groups.
Apple’s Stakeholder Groups

Apple considers the interests and concerns of a number of key stakeholders in its policies and programs
for corporate social responsibility. Stakeholder groups impose varying demands in different aspects of
business. In Apple’s case, the following stakeholders are the most significant:
1. Customers/Consumers
2. Apple’s Employees
3. Investors
4. Employees of Suppliers and Distributors
Customers/Consumers
Apple prioritizes customers as its top stakeholders in devising corporate social responsibility strategies.
This stakeholder group is composed of individual and organizational buyers of Apple products. The main
interest of customers is to have effective and efficient products that are reasonably priced. Apple
products have higher price points. However, Apple’s premium pricing strategy is acceptable because it
matches the high quality and aesthetics of these products. The company also has environmental
programs for recycling and responsible sourcing to address customers’ demands for business
sustainability. Thus, Apple’s corporate social responsibility efforts satisfy the interests of customers as
the top stakeholders of the business.
Apple’s Employees
Employees are the second-priority stakeholders in Apple’s approach to corporate social responsibility.
This stakeholder group is composed of employees at Apple’s facilities. The main interests of these
stakeholders are proper compensation and career development. Employees as a stakeholder group are
important because they directly determine Apple’s human resource capabilities to innovate and develop
profitable products. The firm addresses the interests of its employees through compensation packages
competitive in Silicon Valley. Thus, Apple’s corporate social responsibility efforts satisfy the concerns
and interests of employees as a major stakeholder group.
Investors
Investors are typically major stakeholders and determinants of corporate social responsibility programs
in businesses. In Apple’s case, investors are interested in maximizing the returns on their investments.
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The company effectively addresses this stakeholder group through excellent financial performance. For
example, Apple is now one of the most profitable companies in the world. The firm maintains high profit
margins. Apple also has a strong financial position, which involves high liquidity through large amounts
of cash. The company has also managed to avoid debt. Based on these corporate social responsibility
conditions, Apple effectively satisfies the interests of investors as stakeholders.
Employees of Suppliers and Distributors

Workers in Apple’s supply chain are also significant considerations in the company’s corporate social
responsibility efforts. These workers are indirect stakeholders in Apple’s business, but determine the
firm’s corporate social responsibilities. The main interest of this stakeholder group is similar to the
interests of Apple’s own employees, such as proper compensation and job security. Also, this
stakeholder group is interested in ethical employment practices. To address these interests, Apple has a
Supplier Code of Conduct. The company monitors and imposes requirements on the employment
practices of firms in its supply chain. Part of Apple’s policy is to terminate business relations with
suppliers that continue to fail or refuse to satisfy this Code of Conduct. Apple’s 2014 assessment of
suppliers shows that 92% of suppliers now comply with the 60-hour workweek rule. Thus, to a certain
high degree, Apple’s corporate social responsibility efforts satisfy the interests of the stakeholder group
of suppliers’ workers.
Apple’s CSR Performance in Addressing Stakeholders’ Interests

Apple has a considerably high performance in addressing its corporate social responsibilities by
satisfying the interests of stakeholders. The company satisfies the interests of customers, Apple
employees, and investors. However, Apple has the opportunity to improve its corporate social
responsibility performance in addressing the interests of the workers of firms in its supply chain.
Imposing rules on suppliers is difficult, considering differences in organizational contexts. However,
Apple has the power to compel suppliers to comply with its Supplier Code of Conduct. Thus, the
company’s main corporate social responsibility effort should be to improve overall compliance in its
supply chain.
References
 Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social
responsibility a review and research agenda. Journal of Management, 38(4), 932-968.
 Apple Inc. Form 10-K, 2014.
 Apple Info.
 Avetisyan, E., & Ferrary, M. (2013). Dynamics of Stakeholders’ Implications in the
Institutionalization of the CSR Field in France and in the United States. Journal of Business
Ethics, 115(1), 115-133.
 Backer, L. C. (2013). Transnational Corporations’ Outward Expression of Inward Self-
Constitution: The Enforcement of Human Rights by Apple, Inc. Indiana Journal of Global Legal
Studies, 20(2), 805-879.
 Dhaliwal, D. S., Li, O. Z., Tsang, A., & Yang, Y. G. (2011). Voluntary nonfinancial disclosure and the
cost of equity capital: The initiation of corporate social responsibility reporting. The Accounting
Review, 86(1), 59-100.
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 Ditlev-Simonsen, C. D., & Wenstop, F. (2013). How stakeholders view stakeholders as CSR
motivators. Social Responsibility Journal, 9(1), 137-147.
 Garriga, E., & Mele, D. (2013). Corporate social responsibility theories: Mapping the territory.
In Citation Classics from the Journal of Business Ethics (pp. 69-96). Springer Netherlands.
 Greening, D. W., Wall, J., & Elias, S. R. (2012, December). Developing Theory in Corporate Social
Responsibility and Social Entrepreneurship. In Proceedings of the International Association for
Business and Society (Vol. 23, pp. 91-97).
 Ofodile, U. E., Altschuller, S., Dolize, A., & Fessler, M. (2012). Corporate Social
Responsibility. The International Lawyer, 46(1), 181.
 Perez, A. (2015). Corporate reputation and CSR reporting to stakeholders: Gaps in the literature
and future lines of research. Corporate Communications: An International Journal, 20(1), 11-29.
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HUMAN RESOURCE MANAGEMENT AT APPLE
HR Strategy At Apple Make Their Employees Creative And Innovative

The rapidly changing business environment has been intensifying competition and creating a steady
pressure to constantly transforming structural unites in order to survive. In this scenario human
resources practices, processes and techniques is an indeed approach used by the organization to
evaluating and retaining the creative workforce.
Several attempts have been made by the Apple Inc. whose headquartered in Cupertino, California to
seize the creativity and innovation among employees. Apple is well known for its size and revenues. To
make innovation-oriented firm, HR strategies of Apple emphasizes investing human capitals, approval or
disapproval of group members and participation in decision making committing to team development
(Lordkipanidze, 2019).
From recruitment to balancing talent management, Apple focuses on the candidate who is hardworking,
loyal and derives every precise detail perfectly. Finally, the best HR strategies always stay focused on
getting the best performance from their employee. The purpose of this article is to explore HR strategies
of Apple, company culture and its progressive nature within Silicon Valley.
Organizational Innovation-
Apple Inc. is a leading digital asset considerably 40% more productive than an average company. As said
by Mankins, “Apple 600 engineers perceived less than two years to develop debug, deploy iOS10
contrast to 10000 Microsoft engineers in Five years. As per online essay writer, This difference is a way
predicts the role of the star player employee’s flexibility regarding work.
A great reputation of Apple in the tech industry enabled it to recruit highly-skilled, innovative and
creative employee to attain success. Organization work in dynamic environment adopts innovation
approaches that were later refined into selective hiring, performance reward, and 360-degree
evaluation (Fedorova, 2019).
Amid hiring competent employees, Apple’s organization esteem includes openness, condition,
incorporation, provider obligation and decent variety. Apple believes that innovation is open to
everyone, for instance, Apple watch has sprung up to wheelchair clients. This makes Apple to create
performance-based opportunities for their employee whose innovation is available for everyone.
Human Resources Strategies-

The HR strategies of Apple always seem to hire a diverse, independent, talented employee who doesn’t
need direction. Apple follows non egalitarian methods which suggest Apple fills 95% of the roles that
are critical to business success through A quality (Vozz, 2017). By knowing the importance of full-time
work execution, Apple has developed a broad and focused advantages bundle for its corporate
representatives with self-awareness programs. This imprints Apple willingness to be the best tech
company in the world, by allowing great ideas for the company.
Apple’s most of the employee provided with training once they joined the company. It has made no
expense policy inspires employee to perform better than the rest. Apple reinforces employee to build
self -reliant and skills by their own that periodically emerges as a big addition to the company. In
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accordance to assignment help experts, Agility is one of the other factors works behind the grasping the
real talent. The company makes sure employee prepare themselves not only physically but also mentally
to jump over from one bigger project to another. The entire team member is competing with each other
to innovate something big and highly advantageous that makes them self-efficient.
Cultural Values And Employee Growth

Apple is one of the biggest job creator in the US provides 2 million jobs in 50 states. The entire industry
is build around app design and development and created 1530000 US jobs supported by Apple
store(Apple, 2019). Additionally 50,000 iPods supports 200 employees to work efficiently with no
paperwork. There is a place for every kind of employee matching up designer, marketer, hardware and
software engineers, scientist and many more at an unprecedented level. Also, there has been an
increased 1500% growth in US employee recorded since 1998.
Source- Glassdoor, Kaggle databases 2019- Employee reviews
As per Andres Vourakis, apple is becoming talent magnets offering high salaries cultural environment.
When it is analyzed the 67k reviews of employee, it is found that they rated 4.2 star to the core principle
and ideals of Apple. Some essay writing help experts said, company offers adequate opportunities to its
employees and looks over if employee shares company’s vision and must be fully committed or not.
Strategic Human Resource Activities

1. Selection And Recruitment
Apple focuses on its primary objective of hiring the talented and right candidate. The selection process is
based on verbal communication by identifying the person who hold out of the box thinking and ready to
commit himself or herself to the company.
2. Forcing Unique Thinking

Apple provides a considerable amount of opportunities to its employee to develop prospective careers.
The intern who showed high performance will automatically get hired. In fact to force free-thinking,
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designing team are allowed to attend the meeting twice in a week. This led anyone to brainstorm and
about the ideas changes which can be made (Schaarschmidt, 2019).
3.Employee Rewarding And Appreciation-

Apple runs APPLE FELLOW PROGRAM to recognized employee major contribution to the company.
Those employees are rewarded and later on designated as leaders. This is how the company appreciates
employee contribution who became a star player (Sharma, 2019).
4. Benefits And Compensation-

To attract talented staff, apple provides competitive packages, flex benefits, periodical stock grants for
their contribution to the company. They are also entitled to the products discounts.
Conclusion-
Through the above information we can conclude, Apple focuses on the candidate who is hardworking,
loyal and derives every precise detail perfectly. For adhering its working culture, Apple’s most of the
employee is provided with training once they joined the company. This organization work in dynamic
environment adopts innovation approaches that were later refined into selective hiring, performance
reward, and 360-degree evaluation. The entire team member is competing with each other to innovate
highly advantageous product that makes them self efficient. Company also created a culture to identify
the person who holds out of the box thinking and led anyone to brainstorm and about the ideas
changes. This makes Apple to create performance-based opportunities for their employee whose
invented product inspired him to perform better than the rest.
References-
Apple (2019), Two million Jobs and Counting, Retrived from:
https://www.apple.com/job-creation/
Fedorova, A., Koropets, O., & Gatti, M. (2019, May). Digitalization of human resource management
practices and its impact on employees’ well-being. In International Scientific Conference „Contemporary
Issues in Business, Management and Economics Engineering”.
Lordkipanidze, R. (2019). Our Innovative Joys of Epoch: New York-Big Apple and iPhone-as well
Apple. Tbilisi, General Coordinator of International Charity Scientific-Research Partnership, As E-
Article, 10.
Schaarschmidt, M., Homscheid, D., & Kilian, T. (2019). Application developer engagement in open
software platforms: An empirical study of Apple iOS and Google Android developers. International
Journal of Innovation Management, 23(04), 1950033.
Sharma, Vaishali & Sharma, Jyotsana. (2018). Organisational Innovation through HR Practices: A Review
Based Analysis.
Voukaris.A (2019) Analyzing Employee Reviews: Google vs Amazon vs Apple vs Microsoft, Retrieved
from
https://towardsdatascience.com/analyzing-employee-reviews-google-vs-amazon-vs-apple-vs-microsoft-
4dc3c036666b
P a g e 33 | 55
Vozz .S (2017) Why employee at Google and Apple are more Productive, Retrieved from-
https://www.fastcompany.com/3068771/how-employees-at-apple-and-google-are-more-productive
P a g e 34 | 55
CORPORATE GOVERNANCE GUIDELINES

OF APPLE COMPUTER, INC.
OVERVIEW – THE ROLE OF THE BOARD OF DIRECTORS:
It is the paramount duty of the Board of Directors to oversee the CEO and other senior
management in the competent and ethical operation of the Company on a day-to-day basis and to
assure that the long-term interests of the shareholders are being served. To satisfy this duty, the
directors will take a proactive, focused approach to their position, and set standards to ensure that
the Company is committed to business success through maintenance of the highest standards of
responsibility and ethics.
Directors bring to the Company a wide range of experience, knowledge and judgment,
and bring these skills to bear for the Company. These varied skills mean that good governance
depends on far more than a "check the box" approach to standards or procedures. The
governance structure in the Company is designed to be a working structure for principled
actions, effective decision-making and appropriate monitoring of both compliance and
performance.
DIRECTOR QUALIFICATIONS:
The board believes that there should be at least a majority of independent directors on the
board who meet the criteria for independence established by the Nasdaq Stock Market. The
Nominating and Corporate Governance Committee shall solicit and receive recommendations
and review the qualifications of potential director candidates in accordance with the charter and
principles of that committee. The consideration of a candidate as a director will be based on the
Nominating and Corporate Governance Committee’s assessment of the individual’s background,
skills and abilities, and if such characteristics qualify the individual to fulfill the needs of the
board at that time. The board should monitor the mix of skills and experience of its directors in
order to assure that the board has the necessary tools to perform its oversight function
effectively. The Nominating and Corporate Governance Committee will be responsible for
considering shareholder proposals with respect to director nominations.
Serving on the Company’s board requires significant time and attention. Directors must
spend the time needed and meet as often as necessary to properly discharge their responsibilities.
A director who also serves as CEO of the Company should not serve on more than two (2) other
boards of public companies in addition to the Company’s board.
ETHICS AND CONFLICT OF INTERESTS:

The board expects its directors, as well as officers and employees, to act ethically at all
times and to acknowledge their adherence to the Company’s code of conduct. The board will not
permit the waiver of any ethics policy for any director or executive officer.
SIZE OF BOARD AND DIRECTOR ELECTIONS:

The directors are elected annually by the shareholders to serve a one-year term. Between
annual shareholder meetings, the board may elect directors to serve until the next annual
meeting. The By-laws prescribe that shareholders may propose nominees for consideration by
the Nominating and Corporate Governance Committee by submitting the names and supporting
information to: Secretary, Apple Computer, Inc., 1 Infinite Loop, Cupertino, CA 95014.
P a g e 35 | 55
The By-laws prescribe that the number of directors will not be less than five (5) nor more
than nine (9). In general, smaller boards are more cohesive, work better together and tend to be
more efficient monitors than larger boards. The board currently has six (6) members and
periodically reviews from time to time the appropriateness of its size. The board would consider
expanding its size to accommodate outstanding candidates.
DIRECTOR ORIENTATION AND CONTINUING EDUCATION:

The Company’s management should provide new directors with materials, briefings and
additional educational opportunities to permit them to become familiar with the Company and to
enable them to better perform their duties. Board members are also encouraged to visit
Company facilities and meet with Company employees throughout their tenure on the board. In
addition, Board members are encouraged to attend accredited director education programs.
TERM LIMITS AND RETIREMENT POLICY:

The board believes that term limits are on balance not the best way to maximize the
effectiveness of the board. While terms limits would likely introduce fresh perspectives and
make new viewpoints available to the board, they may have the countervailing effect of causing
the loss of the benefit gained from the contributions of directors who have developed, over time,
increasing insight into the Company. As an alternative to term limits, the Nominating and
Corporate Governance Committee will periodically review the appropriateness of each board
member’s continued service. A board member may not stand for reelection after age 70, but need
not resign until the end of his or her term.
DIRECTORS WHO CHANGE THEIR PRESENT JOB RESPONSIBLITY:

Directors who retire or change from the position they held when initially elected to the
board are expected to notify the board of such change. The board does not believe that a director in
this circumstance should necessarily be required to leave the board. Instead, the board believes that
the Nominating and Corporate Governance Committee should review each situation and make a
recommendation to the board as to the continued appropriateness of board membership under the
new circumstances.
DIRECTOR RESPONSIBILITIES:
The fundamental role of the directors is to exercise their business judgment to act in what
they reasonably believe to be the best interests of the Company and its shareholders. In fulfilling
that responsibility, the directors should be able to rely on the honesty and integrity of the
Company’s senior management and expert legal, accounting, financial and other advisors.
Board members are expected to prepare for, attend and participate in all board and
applicable committee meetings, and to spend the time needed to meet as often as necessary to
properly discharge their obligations. At the beginning of each year the board will, to the extent
foreseeable and practicable, set a schedule of agenda items to be discussed during the year. Each
board member is free to suggest the inclusion of items on the agenda and to raise at any board
meeting subjects that are not on the agenda for that meeting. The board shall meet at least four
times per year.
An agenda for each board meeting, along with information and data that is important to
the board’s understanding of the business to be conducted at the board meeting should be
P a g e 36 | 55
distributed to the directors in advance of the meeting, so that board meeting time may be focused
on questions that the board has about the materials. Certain matters may be discussed at the
meeting without advance distribution of written materials, as appropriate.
The board does not have a policy on whether or not the roles of Chief Executive Officer
and Chairperson of the Board should be separate and, if they are to be separate, whether the
Chairperson should be selected from the non-employee directors or be an employee. The board
believes these issues should be considered as part of the board’s broader succession planning
process. The board shall, however, appoint a presiding outside director to conduct executive
sessions and for such other purposes as the board finds useful.
The board's policy is to periodically hold executive sessions without the presence of
management, including the CEO or other non-independent directors. Such meetings should occur
at least four times per year. In general, time is reserved following each regularly scheduled board
meeting should the outside directors wish to meet in private executive session. When the outside
directors meet without the chairperson of the board, the presiding outside director shall chair the
meeting. The outside directors may also meet at such other times as determined by the presiding
director.
The board believes that management speaks for the Company. Individual board members
may occasionally meet or otherwise communicate with various constituencies that are involved
with the Company, but it is expected that board members would do this with the knowledge of
management and, in most instances, absent unusual circumstances or as contemplated by the
committee charters, at the request of management.
BOARD COMMITTEES:
The board currently has a Nominating and Corporate Governance Committee, an Audit
and Finance Committee and a Compensation Committee. All of the members of these
committees will meet the then-effective criteria for independence established by the Nasdaq
Stock Market and, in the case of the Audit and Finance Committee, the Sarbanes-Oxley Act of
2002. The members of these committees will also meet the other membership criteria specified
in the respective charters for these committees. Committee members and committee
chairpersons will be appointed by the board.. There will, from time to time, be occasions on
which the board may want to rotate committee members, but the board does not believe that a
formal policy of rotation is mandated.
Each committee shall have its own charter. The charter will set forth the principles,
policies, objectives and responsibilities of the committees in addition to the qualifications for
committee membership.
The Chairperson of each committee will, in consultation with the appropriate committee
members and members of management, and in accordance with the committee’s charter,
determine the frequency and length of committee meetings and develop the committee’s agenda.
At the beginning of the year, each committee will establish a schedule of agenda subjects to be
discussed during the year (to the extent these can be foreseen). The schedule for each committee
will be furnished to the full board.
The board and each committee have the right at any time to obtain advice, reports or
P a g e 37 | 55
opinions from internal and external counsel and expert advisors and have the authority to hire
independent legal, financial and other advisors as they may deem necessary, at the Company’s
expense, without consulting with, or obtaining approval from, any officer of the Company in
advance.
The board may, from time to time, form new committees as it deems appropriate.
DIRECTOR ACCESS TO OFFICERS AND EMPLOYEES:

The board has complete access to all Company officers and employees. Any meetings or
contacts that a director desires to initiate may be arranged directly by the director or through the
CEO or other Company officer.
The board welcomes the attendance of senior officers at each board meeting. The board also
encourages management to schedule managers to present at board meetings who:
(a) can provide additional insight into the items being discussed because of personal involvement in
these areas, or
(b) have future potential that management believes should be given exposure to the board.
DIRECTOR COMPENSATION:
The form and amount of director compensation will be determined by the board after review of
recommendations of the Nominating and Corporate Governance Committee. It is appropriate for
the staff of the Company to report from time to time to the Nominating and Corporate Governance
Committee on the status of board compensation in relation to other comparable U.S. companies.
The Nominating and Corporate Governance Committee should conduct an annual review of
director compensation. The current practice of the board is that a substantial portion of a director’s
annual retainer be equity-based. Directors do not receive any additional consideration for serving
on committees or as committee chairperson.
BOARD EVALUATION:
The board should conduct a self-evaluation at least annually to determine whether it and its
committees are functioning effectively. The Nominating and Corporate Governance Committee is
responsible for coordinating and overseeing the annual board evaluation process in accordance
with the charter and principles of that committee.
MANAGEMENT REVIEW AND SUCCESSION PLANNING:

The Compensation Committee should conduct and review with the board an annual evaluation of
the performance of all executive officers, including the CEO. This review is used by the
Compensation Committee in the course of its deliberations when considering the compensation of
the CEO and senior management. The CEO performance evaluation is also reviewed by the board
to ensure that the CEO is providing effective leadership for the Company. As part of the annual
CEO evaluation, the board and the CEO should conduct an annual review on management
development and succession planning for senior management, including the CEO.
Reference
Interactive corporate governance guide
P a g e 38 | 55
CORPORATE FINANCIAL PERFORMANCE ANALYSIS

APPLE INC.
Short-term (Operating) Activity Ratios

Sep 26, Sep 28, Sep 29, Sep 30, Sep 24, Sep 26,
2020 2019 2018 2017 2016 2015
Turnover Ratios
Inventory turnover 41.75 39.40 41.39 29.05 61.62 59.64

Receivables turnover 17.03 11.35 11.45 12.82 13.69 13.87
Payables turnover 4.01 3.50 2.93 2.88 3.52 3.95
Working capital
turnover 7.16 4.56 18.35 8.24 7.74 26.66
Average No.
Days
Average
inventory processing
period 9 9 9 13 6 6
Add: Average
receivable collection
period 21 32 32 28 27 26
Operating
cycle 30 41 41 41 33 32
Less: Average
payables payment period 91 104 125 127 104 92
Cash
conversion cycle -61 -63 -84 -86 -71 -60
Based on:
10-K (filing date: 2020-10-30),
10-K (filing date: 2019-10-31),
10-K (filing date: 2018-11-05),
10-K (filing date: 2017-11-03),
10-K (filing date: 2016-10-26),
10-K (filing date: 2015-10-28).
P a g e 39 | 55
P a g e 40 | 55
Short-term Description The company

activity ratio
Inventory An activity ratio calculated as cost Apple Inc.’s inventory turnover ratio deteriorated from 2018
turnover of goods sold divided by inventory. to 2019 but then improved from 2019 to 2020 exceeding
2018 level.
Receivables An activity ratio equal to revenue Apple Inc.’s receivables turnover ratio deteriorated from
turnover divided by receivables. 2018 to 2019 but then improved from 2019 to 2020
exceeding 2018 level.
Payables An activity ratio calculated as cost Apple Inc.’s payables turnover ratio increased from 2018 to
turnover of goods sold divided by payables. 2019 and from 2019 to 2020.
Working capital An activity ratio calculated as Apple Inc.’s working capital turnover ratio deteriorated
turnover revenue divided by working from 2018 to 2019 but then slightly improved from 2019 to
capital. 2020
P a g e 41 | 55
P a g e 42 | 55

activity ratio
Average An activity ratio equal to the number of days in the period

inventory divided by inventory turnover over the period.
processing
period
Average An activity ratio equal to the number of days in the period

receivable divided by receivables turnover.
collection
period
Operating Equal to average inventory processing period plus average

cycle receivables collection period.
Average An estimate of the average number of days it takes a company Apple Inc.’s number of days
payables to pay its suppliers; equal to the number of days in the period of payables outstanding
payment divided by payables turnover ratio for the period. decreased from 2018 to
period 2019 and from 2019 to
2020.
Cash A financial metric that measures the length of time required for Apple Inc.’s cash conversion
conversion a company to convert cash invested in its operations to cash cycle deteriorated from
cycle received as a result of its operations; equal to average 2018 to 2019 and from
inventory processing period plus average receivables 2019 to 2020.
collection period minus average payables payment period.
P a g e 43 | 55
Inventory Turnover
2020 2019 2018 2017 2016 2015
Selected Financial Data
(US$ in millions)
Cost of sales 169,559 161,782 163,756 141,048 131,376 140,089
Inventories 4,061 4,106 3,956 4,855 2,132 2,349
Short-term Activity Ratio

Inventory turnover 41.75 39.40 41.39 29.05 61.62 59.64
Benchmarks
Inventory Turnover,
Competitors
Cisco Systems Inc. 13.74 13.91 10.14 11.00 15.03 11.97
Inventory Turnover, Sector
Technology Hardware &
Equipment 35.03 32.98 31.45 24.54 44.69 —
Inventory Turnover, Industry
Information Technology 12.63 12.79 13.11 12.36 14.73 —

Based on:
10-K (filing date: 2020-10-30),
10-K (filing date: 2019-10-31),
10-K (filing date: 2018-11-05),
10-K (filing date: 2017-11-03),
10-K (filing date: 2016-10-26),
10-K (filing date: 2015-10-28).
1
2020 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 169,559 ÷ 4,061 = 41.75
2
Click competitor name to see calculations.
P a g e 44 | 55

activity ratio
Inventory An activity ratio calculated as cost Apple Inc.’s inventory turnover ratio deteriorated from 2018
turnover of goods sold divided by inventory. to 2019 but then improved from 2019 to 2020 exceeding
2018 level.
Receivables Turnover
2020 2019 2018 2017 2016 2015
(US$ in millions)
Net sales 274,515 260,174 265,595 229,234 215,639 233,715
Accounts receivable, net 16,120 22,926 23,186 17,874 15,754 16,849

Receivables turnover 17.03 11.35 11.45 12.82 13.69 13.87
Benchmarks
P a g e 45 | 55
Receivables Turnover,
Competitors
Receivables Turnover, Sector
Equipment 15.00 10.98 10.96 12.04 12.26 —
Receivables Turnover,
Industry
Based on:
10-K (filing date: 2020-10-30),
10-K (filing date: 2019-10-31),
10-K (filing date: 2018-11-05),
10-K (filing date: 2017-11-03),
10-K (filing date: 2016-10-26),
10-K (filing date: 2015-10-28).
1
2020 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= 274,515 ÷ 16,120 = 17.03
P a g e 46 | 55
activity ratio
Receivables An activity ratio equal to Apple Inc.’s receivables turnover ratio deteriorated from 2018 to
turnover revenue divided by receivables. 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Payables Turnover
2020 2019 2018 2017 2016 2015
(US$ in millions)
Cost of sales 169,559 161,782 163,756 141,048 131,376 140,089
Accounts payable 42,296 46,236 55,888 49,049 37,294 35,490

Payables turnover 4.01 3.50 2.93 2.88 3.52 3.95
Benchmarks
Payables Turnover,
Competitors
Payables Turnover, Sector
Equipment 4.20 3.75 3.16 3.15 3.90 —
Payables Turnover, Industry

Based on:
10-K (filing date: 2020-10-30),
10-K (filing date: 2019-10-31),
10-K (filing date: 2018-11-05),
10-K (filing date: 2017-11-03),
10-K (filing date: 2016-10-26),
10-K (filing date: 2015-10-28).
2020 Calculation
1
Payables turnover = Cost of sales ÷ Accounts payable

= 169,559 ÷ 42,296 = 4.01
P a g e 47 | 55

activity ratio
Payables An activity ratio calculated as cost of Apple Inc.’s payables turnover ratio increased
turnover goods sold divided by payables. from 2018 to 2019 and from 2019 to 2020.
Working Capital Turnover

2020 2019 2018 2017 2016 2015
(US$ in millions)
Current assets 143,713 162,819 131,339 128,645 106,869 89,378
Less: Current liabilities 105,392 105,718 116,866 100,814 79,006 80,610
Working capital 38,321 57,101 14,473 27,831 27,863 8,768
Net sales 274,515 260,174 265,595 229,234 215,639 233,715

Working capital turnover 7.16 4.56 18.35 8.24 7.74 26.66
Benchmarks
Working Capital Turnover,
Competitors
P a g e 48 | 55

Sector
Equipment 5.72 4.27 6.39 3.30 3.24 —
Industry
Based on:
10-K (filing date: 2020-10-30),
10-K (filing date: 2019-10-31),
10-K (filing date: 2018-11-05),
10-K (filing date: 2017-11-03),
10-K (filing date: 2016-10-26),
10-K (filing date: 2015-10-28).
2020 Calculation
1
Working capital turnover = Net sales ÷ Working capital

= 274,515 ÷ 38,321 = 7.16

activity ratio
Working An activity ratio calculated as Apple Inc.’s working capital turnover ratio
capital revenue divided by working deteriorated from 2018 to 2019 but then slightly
turnover capital. improved from 2019 to 2020.
P a g e 49 | 55
Long-term Activity Ratios (Summary)

Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Net fixed asset
turnover 7.47 6.96 6.43 6.79 7.98 10.40
Net fixed asset
turnover
(including
operating lease,
right-of-use asset) 6.06 6.96 6.43 6.79 7.98 10.40
Total asset
turnover 0.85 0.77 0.73 0.61 0.67 0.80
Equity turnover 4.20 2.88 2.48 1.71 1.68 1.96
Based on:
10-K (filing date: 2020-10-30),
10-K (filing date: 2019-10-31),
10-K (filing date: 2018-11-05),
10-K (filing date: 2017-11-03),
10-K (filing date: 2016-10-26),
10-K (filing date: 2015-10-28).
P a g e 50 | 55
Long-term activity Description The company

ratio
Net fixed asset An activity ratio calculated as total Apple Inc.’s net fixed asset turnover ratio
turnover revenue divided by net fixed assets. improved from 2018 to 2019 and from 2019
to 2020.
Net fixed asset An activity ratio calculated as total Apple Inc.’s net fixed asset turnover ratio
turnover (including revenue divided by net fixed assets (with operating lease, right-of-use asset)
operating lease, right- (including operating lease, right-of- improved from 2018 to 2019 but then
of-use asset) use asset). deteriorated significantly from 2019 to 2020.
Total asset turnover An activity ratio calculated as total Apple Inc.’s total asset turnover ratio
revenue divided by total assets. improved from 2018 to 2019 and from 2019
to 2020.
Equity turnover An activity ratio calculated as total Apple Inc.’s equity turnover ratio improved
revenue divided by shareholders’ from 2018 to 2019 and from 2019 to 2020.
equity.
P a g e 51 | 55
Liquidity Ratios (Summary)

Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Current ratio 1.36 1.54 1.12 1.28 1.35 1.11
Quick ratio 1.22 1.38 0.99 1.09 1.22 0.89
Cash ratio 0.86 0.95 0.57 0.74 0.85 0.52
Based on:
10-K (filing date: 2020-10-30),
10-K (filing date: 2019-10-31),
10-K (filing date: 2018-11-05),
10-K (filing date: 2017-11-03),
10-K (filing date: 2016-10-26),
10-K (filing date: 2015-10-28).
P a g e 52 | 55
Liquidity Description The company

ratio
Current A liquidity ratio calculated as current assets Apple Inc.’s current ratio improved from
ratio divided by current liabilities. 2018 to 2019 but then slightly deteriorated
from 2019 to 2020.
Quick ratio A liquidity ratio calculated as (cash plus short- Apple Inc.’s quick ratio improved from 2018
term marketable investments plus receivables) to 2019 but then slightly deteriorated from
divided by current liabilities. 2019 to 2020.
Cash ratio A liquidity ratio calculated as (cash plus short- Apple Inc.’s cash ratio improved from 2018
term marketable investments) divided by current to 2019 but then slightly deteriorated from
liabilities. 2019 to 2020.
P a g e 53 | 55
Recommendations
Maintaining innovation
It is important for Apple to maintain its design thinking and product innovation in order to stay
ahead in a competitive and rapidly changing technology industry. Apple must understand that
changes in technologies, consumer demands, and demographics have resulted in new demands
and diverse expectations. Thus, the company must maintain innovation and design thinking in
all its products and services.
Apple after Jobs

The company’s innovation abilities will change after Steve Jobs. Many critics have questioned
whether or not Apple will continue with its design thinking and innovation after Steve Jobs. Jobs
prepared Apple well. The company is the largest in the technology industry and has conquered
mobile technology.
Apple will rely on its financial strength to develop new products for years. Job made Apple to
operate in specific ways that the new CEO may not match. Apple innovative abilities will
continue to improve, but will not match Steve Jobs’ standards. Thus, the major challenge for
Apple is to redefine itself without Steve Jobs.
The mere fact that Apple exists today does not guarantee its future. Consequently, the new
CEO must continuously evolve its products, services, and pursue innovative approaches to
product development.
The CEO has innovator

Technology companies require extremely strong leadership provided by Steve Jobs. Steve Jobs
developed a long-term strategy for Apple. It is the responsibility of the new CEO to develop and
communicate innovation strategies and ensure that employees fulfill them.
P a g e 54 | 55
The new CEO must have the ability to redefine old products and adapt them to the market. The
CEO must acknowledge that the technology industry poses some challenges because
consumers have tendencies of buying new products based on sophistication.
For instance, if a competitor introduces a new product with advance features, then Apple’s
fortunes may dwindle quickly. Therefore, Apple must find strong leadership to define its design
thinking and innovation for success.
Operational secrecy
Steve Jobs maintained utmost secrecy of its next products. Thus, the company managed to set
a high bar and increased expectations among competitors and fans alike. The element of
surprise is critical in a fast-paced technology industry. Apple has used it to create a strong
brand. The company must continue to protect its product, information, and design strategies.
P a g e 55 | 55

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Corporate Performance Report

SUBMITTED TO: PARTICIPANTS

given by Sir Misbah ul Islam Rizvi 02 Erma Saleem - EBS19542013

in which corporate analysis of the

05 Muhammad Hassan - EBS19542038

Apple Inc.’s Mission Statement and Vision Statement (An Analysis)

Apple’s Corporate Mission Statement

Apple’s Corporate Vision Statement

Possible Improvements to Apple’s Corporate Mission & Corporate Vision

BUSINESS SWOT ANALYSIS

Apple Inc. SWOT Analysis & Recommendations

Apple’s Strengths (Internal Strategic Factors)

1. One of the world’s strongest brands

Weaknesses (Internal Strategic Factors)

1. Limited distribution network for its goods

Opportunities for Apple Inc. (External Strategic Factors)

Threats Facing Apple Inc. (External Strategic Factors)

SWOT Analysis of Apple Inc. – Recommendations

 Apple Inc. – Form 10-K.

Apple Inc.’s Generic Strategy & Intensive Growth Strategies

Apple’s Generic Strategy (Porter’s Model) & Objectives

Apple’s Intensive Growth Strategies (Ansoff Matrix)

Strategic Analysis and Recommendations for Apple Inc.

Apple Inc. Five Forces Analysis (Porter’s Model)

Five Forces Analysis of Apple Inc. – Overview

1. Competitive rivalry or competition: Strong force

Competitive Rivalry or Competition with Apple (Strong Force)

1. High aggressiveness of firms (strong force)

Bargaining Power of Apple’s Customers/Buyers (Strong Force)

1. Low switching cost (strong force)

Bargaining Power of Apple’s Suppliers (Weak Force)

1. Moderate to high number of suppliers (weak force)

Threat of Substitutes or Substitution (Weak Force)

1. Moderate to high availability of substitutes (moderate force)

Threat of New Entrants or New Entry (Moderate Force)

1. High capital requirements (weak force)

 Apple Inc. – Form 10-K.

Apple Inc.’s Marketing Mix or 4Ps (An Analysis)

Apple’s Products (Product Mix)

Place or Distribution in Apple Inc.’s Marketing Mix

1. Apple Store locations

Apple’s Promotions (Promotional Mix)

Apple’s Prices and Pricing Strategies

1. Premium pricing strategy

 Apple Inc. – Apple Events.

 Borden, N. H. (1964). The concept of the marketing mix. Journal of Advertising Research, 4(2), 2-

Apple Inc.’s Organizational Structure & Its Characteristics (An Analysis)

Apple’s organizational structure is effective in supporting business performance to ensure leadership in

Apple’s Organizational Structure Type and Characteristics

Weak Functional Matrix

Apple Inc.’s Corporate Structure – Advantages, Disadvantages,

Strong Corporate Control

Limited Organizational Flexibility.

 Apple Inc. – Form 10-K.

Apple Inc. Stakeholders: A CORPORATE SOCIAL RESPONSIBILITY Analysis

Apple’s Stakeholder Groups

Employees of Suppliers and Distributors

Apple’s CSR Performance in Addressing Stakeholders’ Interests

HUMAN RESOURCE MANAGEMENT AT APPLE

HR Strategy At Apple Make Their Employees Creative And Innovative

Human Resources Strategies-

Cultural Values And Employee Growth

Source- Glassdoor, Kaggle databases 2019- Employee reviews

Strategic Human Resource Activities