Instructions

Complete the final, cumulative strategic plan and leadership analysis for APPLE. INC. Use all of the tools necessary to summarize the strategic and implementation plan. SEE ATTACHMENT BELOW

This final evaluation should be 10 pages in length, have at least 3 references, and be APA formatted; you may reuse, adapt, and combine work previously completed in units 2, 4, and 6.

A successful paper will include analysis of the following:

• Provide a general description of the organization (started in unit 2).
• Identify the Vision and mission statements (started in unit 2).
• Evaluate the role of ethics, social responsibility, and environmental sustainability in strategy implementation (started in unit 2).
• Define what is core and non-core business (started in unit 2).
• Identify Global strategies (started in unit 4).
• Provide strategies for diversified companies (started in unit 4).
• Review five sources of revenue (started in unit 6).
• Assess any internal organizational components that impact strategy implementation (started in unit 6).
• Create a final, summary, action plan for business integration, and strategic planning suggestions (NEW in unit 7).

14

Cumulative Strategic Plan and Leadership Analysis: An

Apple Inc.

’s Case

Student’s Name

Institution Affiliation

Course

Instructor’s Name

Date

Introduction

Apple Inc. is a real business example of a successful brand (Aljafar, 2017). The firm’s success stems from its ability to use its strengths to exploit business opportunities and overcome its weaknesses and threats. Strengths and weaknesses usually characterize corporations’ internal business environments. On the other hand, Hassan (2017) posits that opportunities and threats are aspects of external environments. Internal environments comprise factors that businesses have control over, whereas external environments are the opposite. The key question here is what is the current internal and external environments of Apple?

Overview of the Apple Organization

Apple’s Mission, Vision, and Core Values

Apple’s Mission Statement

Apple’s mission statement is “to bringing the best user experience to its customers through its innovative hardware, software, and services. In this mission statement, Apple outlines its business operations’ scope besides how it exploits it to meet its customers’ needs and expectations. Among the core business components that emanate from the mission are best user experience, improving the lives of people, empowerment of the society, and top-quality products.

Apple’s Vision Statement

Apple vision statement states, “We believe that we are on the face of the earth to make great products and that’s not changing.” The statement highlights Apple’s determination to deliver top-quality goods and services for its customers. According to the statement, this is a long-term process. The vision also tables a detailed account of the perspective and mechanisms through, which the firm approaches its business operations to station itself as the leading force in the technology industry. Some of the core business components related to this vision includes Innovations, Integration of partners and excellence, and Market specialization.

Apple’s Core Values

Apple Inc.’s core values comprise “inclusion and diversity, education, accessibility, environment, supplier responsibility and privacy.” The values communicate the business aspects, which the organization considers essential to its general success as a leader in the technology and innovation sectors. Apple is keen on the doctrines, which have facilitated its modelling of the self as a quality-oriented firm in more than two decades now. To remain focused and loyal to these principles, Apple ensures that all its business set-ups are in synchrony and harmony with every piece of the values as highlighted in its statement of core values.

Apple’s Internal Environment Analysis

SWOT analysis tools are critical options in exploring internal organizational atmospheres. Therefore, what is a SWOT analysis tool’s projection of Apple’s internal business situation? The term SWOT is an ellipsis of Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses are associated with internal organizational environments, while opportunities and threats are factors of the external environs. In this context, the limelight falls on only strengths and weaknesses because it is an entire case of internal analysis.

(S) – Strengths

Apple’s strengths emanate from various factors. They include its internal organizational environment and revenue and financial performance. The internal organization environment comprises fortes such as a strong brand image, a positive corporate culture, and effective leadership. On the other hand, financial performance encompasses such factors as apropos financing strength.

A Strong Brand Image

Apple has a strong brand image and reputation: it is arguably the world’s best technology and most successful organization so far. The company earned this status because of its quality offerings. Apple arguably tops the list of corporations with the most loyal customers (Khan, Alam & Alam, 2019). Besides, many competitors admire and envy the firm. For decades, Apple has been on top of the game, especially in the technology sector. The Forbes Magazine once estimated Apple’s value as twice that of Microsoft. Thus, the organization lingers the most valuable firm on earth.

A Positive Corporate Culture

Another of Apple’s strengths is its corporate culture, which is positive and progressive. Aljafar (2017) illustrates that Apple’s corporate culture affords workers enough respect and promotes quality output by creating a conducive working environment. Crucial to the culture includes top-notch excellence, creativity, innovation, and moderate combativeness, among other values (Aljafar, 2017). Apple has one of the most professional, creative, and productive workforces across the globe.

Effective Leadership

The credit of Apple’s success so far goes to its founder and CEO, Steve Jobs. Only through proper leadership can an organization start from zero to hero. Thus, Jobs is no doubt an able leader. The company also has a section of other competent leaders such as Tim Cook and Arthur D. Levinson. Through visionary ideas, Zhang (2019) details that the leaders have been able to attract, hire, and retain top talents, motivate them appropriately, keep them together, and strategize, among other things. Without proper leadership in business, failure is inevitable.

Significant Customer Loyalty

Apple enjoys substantial loyalty from its customers. The firm’s clients rarely shift allegiance to other brands. The corporation’s strong fan base ensures that it has good ambassadors who refer its products to non-customers. The customers’ loyalty to Apple emanates from its quality offerings. The corporation has also been crucial in raising their social status (Khan, Alam & Alam, 2019). Today, people, both clients, and non-clients, associate Apple’s commodities with high social status.

Top-notch Innovation

The world has never seen an outstanding innovator like Apple before. The company maintains a portfolio of innovative products. The Macintosh and the iPod, for instance, revolutionized the computer and music industries, respectively, according to Zhang (2018). Apple has continued with its impressive innovation record adding the iPhone, Mac Air, and iPad to its offerings’ collection.

Decisive Financial Strength

Apple has another significant strength in its fiscal position. The latest data show that the firm holds cash and its equivalents of about $50.5 billion and another $44.08 billion in marketable securities, which it can convert into cash very quickly (Khan, Alam & Alam, 2019). Hence, Apple has an ample cash chest. The healthy financial situation places Apple in a position with enough capabilities to finance its business operations and research to develop its products and services.

(W) – Weaknesses

High Prices

Apple’s products are quality and durable, but they are very costly. The organization employs a premium pricing strategy, which places its offerings beyond the general people’s reach. Apple’s iPhones are particularly always more expensive than their counterparts from competitors. Only members of the upper socioeconomic class can afford most of its products. The hiked prices attract only clients from the middle and high classes or income groups while shying away those from low or low-income brackets from quickly acquiring Apple’s consumer products (Hassan, 2017). Since the high-end segments represent only a handful of the international market, this internal strategic factor is a weakness.

Product Limitations

Although they are quality, Apple’s products come with various issues. The primary concern is that they are incompatible with their counterparts from rival brands. Accordingly, Hassan (2017) argues that it is difficult to share files and software. Apple’s product limitations are a weakness because they breed inconveniences, influencing consumers against acquiring and using them.

Narrow Distribution Channels

Apple has a very narrow distribution channel. The enterprise distributes its offerings by itself. The company does not use third parties to deal out its commodities and services most of the time. Apple’s core distribution channels are its stores and website. Apple’s narrow distribution channel emanates from its exclusivity policy (Khan, Alam & Alam, 2019). The approach is a weakness because it limits market reach; hence, hindering Apple’s products’ ready availability to its customers in all areas.

Apple’s External Environment Analysis

PESTEL analysis is one of the frontline tools that companies use to understand their business environments (Hassan, 2017). Currently, a leader in the technology industry, Apple anticipates retaining the position and staying ahead of its competitors and its external environment is going to influence its failure or success through threats and opportunities, respectively. Therefore, what is a PESTEL tool’s projection of Apple’s internal business situation?

The PESTEL/PESTLE analysis tool examines external business environments in terms of political, economic, sociocultural, technological, ecological, and legal aspects pertaining to an organization and its operations (Hassan, 2017). The tool forms the framework of Apple Inc.’s external business environment analysis. Thus, the model facilitates the understanding of Apple’s external environment factors, which can trigger its failure (threats) or success (opportunities)

(P) – Political Factors

Political factors comprise the government and governmental agencies’ influence on corporations majorly. Crucial political factors for Apple include (i) enhanced trade policies, (ii) political stability in developed nations, and (iii) trade disputes. The elements are a mixture of both opportunities and threats.

Today, many nations are adopting policies that favor international trade. The development comes as an opportunity for Apple to grow its market share as it expands its operations into new markets. More countries are also experiencing political stability currently. Given that such situations come with reduced political problems, which interfere with business operations, the increased political solidity is an opportunity for Apple to grow towards profitability and stability. However, trade disputes are also rampant today. The bad business blood between the US and China, for example, is a threat to Apple’s operations and success.

(E) – Economic Factors

Economic factors entail the market and industry conditions, which influence business operations. For Apple, these components include (i) stable economies in developed nations, (ii) rapid growth in developing economies, and (iii) increasing disposable income among target consumers. All the identified Apple’s economic factors present it with success opportunities.

Economic stability in nations such as United Kingdom, France, Germany, South Africa, and the Netherlands creates opportunities for Apple’s expansion (Meyer, 2019). The rapidly growing economies would present opportunities for new sales; hence, profits. According to Aljafar (2017), Asian countries are appropriate examples in this context. On the other hand, higher disposable incomes improve the saleability of Apple’s relatively high-priced technology products meaning that Apple would have an opportunity to make more revenues.

(S) – Social/Cultural Factors

Sociocultural factors refer to the external social forces, which influence consumers’ behaviors and expectations. Apple’s macro-environment includes (i) the increasing use and access of mobile devices, (ii) the rising dependence on digital organisms, and (iii) the international anti-Apple sentiments. While the first and second factors are success ingredients, the last one is a risk.

The increasing use and access of mobile devices come as an opportunity for Apple to grow its revenues. The rationale is that the trend results in the rise in mobile gadgets’ demands, including smartphones and tablets. The augmenting dependence on digital systems is another sociocultural trend, which presents Apple with opportunities to make more proceeds by selling its products in large volumes (Aljafar, 2017). However, California Polytechnic State University (2017) illustrates that the anti-Apple sentimentalities threaten the company by mounting pressure on it, questioning its business operations. Apple’s lawsuits against third-party repair service providers, which handle iPhone and MacBook repairs, for example, tainted its image.

(T) – Technological Factors

Technology and technological trends affect businesses in various ways. Such technology factors within Apple’s jurisdictions include (i) the expanding demand for cloud computing, (ii) increasing business-technology integrations, and (iii) other firms growing tech capacities. The cloud computing and business-technology integration trends emerge as opportunities while the last factor steps out as a peril.

The expanding demands of cloud computing arise as an expansion opportunity for Apple. Zhang (2018) posits that the trend would necessitate Apple’s expansion of its cloud infrastructure, which would maximize its profitability. The same applies to an increase in technological integration in businesses. The trend means that more organizations would purchase its tech products; hence, boosting its sales (Meyer, 2019). Unfortunately, other company’s technological advancement threatens Apple’s profitability because it would mean more competition.

(E) – Ecological Factors

Ecological factors highlight environmental trends and their influences on organizations. For Apple, they consist of (ii) business sustainability and (ii) energy efficiency trends. Both are opportunities for Apple’s growth.

Apple is one of the world’s organizations that operates sustainably. However, it still has room to ensure that its operations are also environmental-friendly thereby strengthening its corporate image, according to the California Polytechnic State University (2017). Apple also can enhance its operational cost efficiencies by adopting newer and more efficient technologies while supplying useful commodities to increasingly environmentally aware consumers.

a) Apple’s Current Ethics and Corporate Social Responsibility Position

Apple has a reputation as one of the most ethical and social responsible organizations across the world. The company is dedicated to the highest standards of environmental and social responsibility and ethical conduct. For a case in point, Aljafar (2017) argues that the company’s suppliers have a legal and ethical duty to ensure safe working conditions, act legally and justly, treat workers respectfully and with dignity, and engage in activities and act in ways, which are environmental-friendly. Moreover, Apple specifies that its suppliers observe the principles and requirements of the Apple Supplier Code of Conduct (“Code”) besides all the pertinent laws and regulations (Aljafar, 2017). The responsibility stretches beyond the compliance with germane laws by drawing upon globally accepted standards to progress social and ecological responsibility. In occasions of conflicts between legal requirements and standards, the stricter standard applies, in accordance to the applicable law (Ceil, 2018). The Code outlines Apple’s expectations for Supplier conduct regarding labour and human rights, health and safety, environmental protection, ethics, and management practices.

Though Apple’s current ethics and corporate social responsibility position is a strong one, still offers the organizations opportunities for growth and success. If Apple can continue to ensure high standards of CSR, the organization will continue enjoying a good reputation both locally and internationally. As such, it will continue attracting investors, workers, and customers, which will only solidify its quest for greatness.

(L) – Legal Factors

Legal factors entail the laws and regulations’ impacts on businesses. Apple’s legal strategic factors encompass (i) the stiffening privacy regulations, and (ii) Apple’s policies and practices’ legal challenges. Unfortunately, both elements form the recipe for failure.

Concerned with privacy in the digital domain, many countries have beefed up regulations for Apple and other tech companies. According to Meyer (2019), this trend threatens Apple’s growth, especially when compliance requirements to such restrictions are costly. The regulations also limit Apple’s practices; hence, its expansion. Additionally, legal challenges against Apple also risk its business. For instance, the firm’s third-party repair operations’ criticism and legal battles in Australia, the European Union, and the United States duly tainted Apple’s corporate image.

Apple Inc.’s external analysis reveals a mixture of both growth opportunities and threats to the firm. A PESTLE analytical tool comes in handy in driving a proper understanding of these factors and Apple’s external business situation in general. The model illustrates that some of Apple Inc.’s political, economic, sociocultural, technological, ecological, and legal aspects set its success path while others breed failure. Overall, Apple’s external environment is favourable for its feat.

Conclusion

Apple remains a leader in the technology sector and the most profitable, sustainable, and reputable organization in the world’s history. All these breakthroughs are because of its ability to capitalize on its strengths and opportunities including a strong brand, a positive corporate culture and new markets, effective leadership, and customer loyalty. Nonetheless, the company has a few weaknesses and threats, including high prices, product limitations, narrow distribution channels, and stiff competition, which, if it will leave them unchecked, significantly risks their success.

References

Aljafar, A. (2017). Apple Inc. Industry Analysis Business Policy and Strategy. International Journal of Scientific & Engineering Research, Volume 7,(3), 406–439. Retrieved on 9/2/2021 from

https://www.ijser.org/researchpaper/Apple-Inc-Industry-Analysis-Business-Policy-and-Strategy

California Polytechnic State University, (2017, March). Getting to the Core: A Case Study on the Company Culture of Apple Inc. Arocha B., J.

https://digitalcommons.calpoly.edu/cgi/viewcontent.cgi?article=1074&context=rptasp

Ceil, C., (July 3, 2018). Corporate Social Responsibility at Apple. SSRN. http://dx.doi.org/10.2139/ssrn.3520429

Hassan, R. (2017). Apple Inc. – An Analysis: PESTEL analysis, Porter’s 5 Forces analysis, SWOT analysis, Comprehensive analysis of financial ratios, and comprehensive analysis of share performance of Apple Inc. (2nd ed., Vol. 2) [E-book]. Grin Verlag.

https://www.researchgate.net/publication/286392272_Apple_Inc_-_An_Analysis_PESTEL_analysis_Porter’s_5_Forces_analysis_SWOT_analysis_Comprehensive_analysis_of_financial_ratios_and_Comprehensive_analysis_of_share_performance_of_Apple_Inc

Khan, A., U., Alam, N., M., & Alam, S. (2019). A critical analysis of the internal and external environment of apple Inc. 3,(6), 955-966. Retrieved on 9/2/2021 from https://www.researchgate.net/publication/282274921_a_critical_analysis_of_internal_and_external_environment_of_apple_inc

Meyer, P. (2019, June 5). Apple Inc.’s Generic Strategy & Intensive Growth Strategies. Palmore Institute.

Apple’s Competitive Strategy & Growth Strategies

Zhang, Q. (January 01, 2018). Research on Apple Inc’s Current Developing Conditions. Open Journal of Business and Management, 6,(1), 39-46.

https://www.scirp.org/pdf/OJBM_2017122515255786