Overview of Apple Inc

Apple Inc.

Apple Inc. is regarded as one of the most well-known firms in the world today since it makes high-end computers, tablets, and smartphones. These things include iPhones, Mac computers, and iPods. The corporation is renowned for producing software and electronics, on the other hand. In 1976, Jobs, Wozniak, and Wayne created Apple Inc., which has its corporate headquarters in Cupertino, California. Since that time, the company has experienced both good and terrible economic times, growing into one of the biggest global players in the computer software, personal computer, and consumer electronics industries. In the area of technology, the corporation is a premier international organization. Since its inception, Apple Inc. has grown to become one of the giants in communication technology industry (Apple Inc. SWOT Analysis, 2014). Apple has achieved a lot with its technology based production, bringing along massive evolution in the computer, music, and mobile phone industry. Adopting different business strategies, Apple have in turn risen to achieve its dominance and business performance using information and people by making the products unique and interesting to the customers. This capstone report provides a detailed analysis with reference to Apple business operations, factors behind its success operations as well as an evaluation of its future in terms of available information such as SWOT analysis

Impact of the Company’s Mission, Vision and Stakeholders on Its Overall Success

Company mission and vision statement has over time served as the basis or goal for the company. Well-crafted mission and vision statement of a company makes sure that every bit of strategic management process as well as aligning the business operations with the company’s long-term goals. The two statements are also used as way of communications an organization aspirations to its stakeholders and the customers. From the original mission and vision statements, Apple has been expanded in recent times, with the vision statement laying stress on the company’s key and fundamental values such as excellence and innovation (Dvorak, 2016). On the other hand, the mission statement has been reviewed, focusing more the company’s products and technology. Coupled with the organizations believe, ‘delivering performance and value through technology’, the vision and mission statements of Apple have become the foundation and driving force behind its business operations.

Apple’s mission statement

“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad (Apple Inc, 2014).”

On the other hand, the vision statement is more detailed, stressing on the company philosophy. The primary focus is on innovation, company values and the influence of primary stakeholders. With the vision and mission of the company perfectly focusing on the company’s strengths, values, philosophy, the two have managed to lay down a firm. With reference to the three aspects (mission, vision and primary stakeholders), they help the company in focusing on its strategies by establishing key boundaries within which it operates. For example, innovation, technology and delivering to the customers. On the other hand, the three gives the organizational dimensions in which its performance is measured. Finally, the three aspects define standards in which the company operates and maintain ethical behavior. In summary, the mission and vision statements keep the Apple Inc. Company on the course of its daily performance and in turn playing a key role in its overall organization performance.

5 Forces of Competition to Determine How They Impact Apple Inc.

Over the years, Apple has achieved the status of one of the valuable companies in the world. The 5 forces is an approach that gives detailed insight of the company’s external factors that affects its global performance. More so, the five force analysis sheds light on what the organization ought to do to make sure it remains top of its competitors. According to Calderón et al (2012), apple has adopted its strategies partly based on the focus to address its business environment. The 5 forces can enhance or even reduce a firm’s market share and overall business performance. The five forces analysis is based on the Porters model and is deployed to intensify an organizations environment. The five forces include: Competitive Rivalry, Supplier Powers, Buyer Powers, Threat of New Entrant and Substitution Threat. Apple has experienced up and down performance since it was established. The forces affect its profitability and competition.

Competitive Rivalry:

Apple has a host suppliers in a complex chain of suppliers who are spread globally. With its numerous suppliers, Apple maintains excellent control of them, hence having a stronger supplier base. But weak bargaining power. However, this has enabled the company to have no threat in terms of forward integration (Schneiders, 2011). On the other hand, the customer bargaining powers are high, and apple has faced this threat by trying out new and unique products which also retain their values and brand image. Apple has had a decreased customer base, but in the long run, have had a perfect brand loyalty. This has in turn led to focus more on innovation, which has been its driving philosophy. Focusing on threat from new entrants, apples have depended on its brand image and loyalty in an effort to mitigate this threat. However, with increasing investment in the sector, Apple has little powers over raw material and distribution (Schneiders, 2011). The company has maintained its uniqueness, such that, its products aren’t linked with other brands from its competitors. This has in turn helped the company maintain an upper hand in terms of uniqueness, and in turn fulfilling’s its business and customer loyalty and desire.

Substitution Threat:

The continued growth of Samsung products and Google has increased threat from substitutes, a competition that is expected to increase with the incoming of more and more players in the market such as Techno/Infinix and Huawei. On the other hand, with HP and Lenovo invest more in research and development, Apple has had its competition from existing players intensify. The overall impact has led to Apple focusing more on its mission and vision target, and more so building on its customer loyalty, brand image and value. Apple has adopted ‘think differently’ as one way to set itself from the crowd and from its competitors. Other ways the company has utilized the five forces is through devising its unique management style as well as maintaining its design DNA which is innovation.

Apple Inc. SWOT Analysis

The SWOT analysis has been one of the mostly used in many businesses for the organization managed to understand the strength, weaknesses, chances, and threats that may confront a business entity. The following is a SWOT analysis for the Apple Inc. Company.

Strengths

One of the major and most important strength that the Apple Inc. company has over time managed to enjoy is their unrivaled customer loyalty to their products. Apple has enjoyed a substantial market position and immeasurable consumer trustworthiness, which bears in turn increased the company’s competitive advantage. In addition to loyalty by its clients, the company has also been rated top in terms of the mobile world as the world leading pioneer. This has again been a positive facial expression towards the company performance in the engineering industry. Strong financial position, i.e, the company has been with no debts as at 2011 financial reports, as well as realizing higher profit margins than its rivals (Apple Inc. SWOT Analysis, 2014). This has given it an upper hand in terms of financial superiority. In the end, the society has enjoyed a positive brand reputation which has promoted ad maintained it as a top technology-related company. In the end, the society has had powerful and effective merchandising and advertising teams which have been on the forefront towards the positive functioning of the company products.

Weaknesses

Despite the numerous strengths, the society has been faced with different weaknesses. One of the major downsides is the high costs of the company products. Compared to its competitors such as Samsung, the company’s devices have been at higher prices than others, this has been highly felt in the market through a reduction of the company sales. In accession to high costs, the troupe has over time been reliant on its OS, which has been incompatible with other twists, such as the massively growing Android OS. The massive growth of the competing companies has resulted in a downward trend in the parcel market. This contributed to decreased influence among its clients. Some other tip that has moved a weakness inside the Apple Inc (Apple Inc. SWOT Analysis, 2014). The company is the varieties within the company management. Since the death of influential Steve jobs, one of the company founders, the company has never been in the same grade as earlier with its impact decreasing. Lastly, the defects in their new products have been negative as customers have abandoned their products for others.

Opportunities

The engineering industry has been raised in terms of probabilities, and in turn, there have been opportunities for the Apple Inc. company. One such opportunity for society to increase its influence in the mart is the intensified requirement for its products such as iPhone 5 and iPad mini. In summation, the founding of the ITV has increased the company’s operation in terms of marketing its devices as well as satisfying the customer’s demands. This would go miles in supporting the sale of Company’s products. On the other hand, the increased demand for smartphones and tablets, the company has an opportunity to increase/improve its performance in the technology market further (Apple Inc. SWOT Analysis, 2014). In addition, positive and strong development of the mobile advertising market has also been an opportunity for the company to market its product, increasing its awareness to potential customers globally. Finally, the increasing demand for the cloud services is also an opportunity for the company to expand its performance against its competitors.

Threats

Although the company has had its strengths, opportunities, and weaknesses, there are also threats to its effective performance as a technology-driven company. One of the key threats not only to the Apple Company but to other technology-related enterprises, the rapid change in technology demands has put the company on mark to keep itself updated with the technology developments in demand. This would keep its products in demand, but failure to which the company may be rendered obsolete due to more advancement in the technology industry. On the other hand, the companies that breach Apple patents might not be discovered soon and may benefit from it while weakening Apple at the same time. Another threat to the company’s performance is the increased demand for Android OS; Android OS has become the chief competitor for iOS in the mobile device market (Apple Inc. SWOT Analysis, 2014). The dominance of Android has somewhat shrieked the iOS power over persuading/attracting consumers to join Apple. Finally, the company has been faced with the venture of the competing companies in the online music market as well as pressure on prices from Samsung over major components.

Strategy for Apple Inc. To Capitalize On Its Opportunities and Strengths While Minimizing Threats and Weaknesses

Drawing from the Apples SWOT analysis above, it is evident that Apple possesses key strengths over its competitors which can be utilized to counter the identified weaknesses. In addition, the company can utilize the strengths to exploit the chances identified and expand its performance and distribution network. With its strong brand base, the company can utilize it to introduce new products to the market. Different strategies can be deployed by Apple to ensure its strengths over the competitors continue to increase while ensuring the chances available are perfectly exploited for business overall organizational growth (Windahl, 2015). In order to maximize the strengths and opportunities, Apple should embark on a product differentiation strategy, which would enable the organization to differentiate its products from others. This approach would help Apple increase growth in value, an aspect that the organization enjoys to a great extent. On the other hand, the differentiation approach would allow for organizations to market its software to overcome the threat being posed by the android.

Levels and Types of Strategies Apple May Use To Maximize Its Competitiveness and Profitability

With the modern increased competition, global organizations have focused on utilizing their strengths, energies, and resources towards increased sales and continued dominance in the target market. With reference to this marketing strategy would enable Apple to perfectly combine its product development, distribution, pricing, and promotions. On the other hand, the marketing approach would enable in identifying organizational marketing goals and how they will be realized. Moreover, marketing strategy would enable for perfect market choice selection, positioning, and the marketing mix (Mallin & Finkle, 2011). With reference to Apple Inc, the marketing strategy is most effective when it becomes an integral element with reference to overall firm initiative, determining how the organization successful implements its values and innovation strategy to meet customers’ prospects and the competitors in the market.

Communication Plan That Apple Inc Should Deploy to Inform the Stakeholders about the Identified Strategy Above

Communication has become an integral tool in every organization’s success story. Different communication strategy can, in turn, be adopted depending on goal, size of organization and target audience. Organizations can leverage effective communication strategies generate effective and solid results. In order to achieve the identified strategy, Results Driven Communication strategy will be deployed. As business communication is mostly result-focused, result-driven communication strategies by adopting result-focused communication strategy, Apple Inc will manage to deliver and involve people or organizational leaders who are directly influenced or affected by the message contained (Calderón et al, 2012). This allows for pulling relevant people together for a common goal and for the overall benefit of the company.

Two Corporate Governance Mechanisms Used By Apple Inc. and Their Effectiveness In Controlling Managerial Actions

Corporate governance is an essential element more so if a business focuses on setting and meeting its strategic goals. An effective corporate governance brings together controls, policies, and guidelines that are focused on driving an organization towards its primary goals and objectives. This is done while at the same time fulfilling stakeholders’ needs. With reference to the focus, organization, Apple Inc utilizes an internal mechanism and small business relevance. An external mechanism entails progress monitoring the organizational activities, ensuring the business stays on track. With reference to Apple, the mechanism ensures it stays core to its values, philosophy, and objectives. In terms of effectiveness, it helps to keep the management team on toes and focused on the bigger picture, goals, and organizational objectives.

Effectiveness of leadership in Apple Inc

Leadership within the Apple Inc has been reviewed from the time of Steve Jobs to the current reign of Tim Cook. With organizational culture at stake, the leadership at Apple both merits and demerits which has contributed to the immense growth and performance of the company. The leadership is focused on establishing the best employee to minimize supervision. On one side, the organization leadership is guided by organizational secrecy and hence why it is regarded as secrecy. Being result-oriented, Apple leadership has managed to maintain the organization at its best and at top performing. In terms of recommendation, it is advisable for Apple to replace their individualist approach to management/leadership to a more inclusive team approach (Calderón et al, 2012). This would improve decision making as well as bring all people, employees, and stakeholders into a unit within the organization hence reducing animosity between employees.

Ethical Strategies by Apple Inc, Impact Of These Practices on the Company

Apple Inc is an organization that is committed to the highest standards in terms of environmental and social responsibility and ethical conduct. Apple suppliers are required to provide safe working conditions, high dignity and also use environmentally responsible practices. The company has adopted different measures it aligns with the ethical requirements in its operations. These include; prevention of underage labor, health and safety observations, environmental management practices. Ethical practices and strategies by Apple has elevated its global acceptance by the people. Additionally, Apple maintains detailed standards that explicitly define our expectations for compliance with this Code.

References

Schneiders, S. (2011). Apple’s secret of success - traditional marketing vs. cult marketing. Hamburg: Diplomica-Verl.

Apple Inc. SWOT Analysis. (2014). Apple, Inc. SWOT Analysis, 1-10.

Dvorak, J. C. (2016). How the Apple Car Could Succeed and Why It Won’t. PC Magazine, 135-136.

Apple Inc. (2014). Apple Inc. MarketLine Company Profile, 1-31.

Mallin, M. L., & Finkle, T. A. (2011). Apple Inc.: Product Portfolio Analysis. Journal of the International Academy for Case Studies, 17 (7), 63-74.

Windahl, C. (2015). Understanding solutions as technology-driven business innovations. Journal of Business & Industrial Marketing, 30 (3/4), 378-393.

Calderón, R., Ferrero, I., & Redin, D. M. (2012). Ethical codes and corporate responsibility of the most admired companies of the world: Toward a third generation ethics? Business & Politics, 14(4), 1-24.