Free Essay

Company Analysis of Apple Inc.

In: Business and Management

Submitted By volleyballdk12
Words 3474
Pages 14
Apple Incorporated is a U.S. based computer and electronics firm that manufactures products such as the iPod, iPhone, Macintosh computer, iPad, and Apple Watch. Apple Incorporated was founded in 1976 by Steve Jobs and Steve Wozniak, who released the Apple II computer in 1977 (Apple Inc…, 2015). The next product launched by Apple Inc. was The Apple Lisa which was released in 1983 and was the first computer to have a mouse and a graphical user interface (Apple Inc…, 2015). The first Macintosh computer came in 1984 however it was not successful due to the lack of market share to compete with IBM (Apple Inc…, 2015). After several years of financial losses, Steve Jobs launched a product redesign in 1997 that led to the iMac in 1998 (Apple Inc…, 2015). During the 2000s, Apple began to focus on portal MP3 devices such as the iPod and mobile phones like the iPhone. Then Apple began a new line of business in the music industry with iTunes. Today, Apple Inc. is a major competitor within the computer and consumer electronics industry. Apple Inc. is headquartered in Cupertino, California and has 76,000 employee based in the United States. Apple Inc. has directly and indirectly created and supported 1.9 million jobs in the United States (Israel & Johnson, 2016). Apple Inc. has stores located in 18 countries including the United States (Apple Inc., 2016). After a brief overview and history of Apple Inc., this critical analysis will take a look at the industry in which it operates, apply economic theories to create profit maximization, analyze the economic implications of operating in global markets, assess the impact of ethical and regulatory considerations, analyze the macroeconomic environment, analyze the microeconomic environment, and finally address recommendations for the long-term output of the firm. Apple Inc. currently operates in many different industries such as mobile phones, computer, tablets, MP3 music devices, operating systems, and cloud storage. These industries are all considered to be an oligopoly. Apple Inc. is an oligopolist within the industry because the industry only has a few producers compared to many in a perfectly competitive market (Krugman & Wells, 2005). For example, in the mobile phone operating system industry there are only a few producers: Apple Inc., Android, Windows, and Blackberry. It is very difficult to obtain entry into an oligopoly industry because the market share is already controlled by major corporations and it would be costly to do so. After examining Apple Inc.’s 2015 10-K report, the company is starting to see an increase in price competition of their products versus competitor’s products (U.S. Securities and Exchange Commission, 2015). Competitors are lowering their price and decreasing their profit margins in order to keep their market share. By doing so, they hope to affect the supply and demand of Apple Inc. products. Competitors are lowering prices in order to generate a higher demand for their products. Apple Inc. has a considerable higher price point compared to a competitor such as Dell. Competitors want to increase the demand for their products while taking away the demand from Apple Inc. As Apple continues to grow in each of its markets, competitors are going to try to chip at Apple Inc.’s market share. Apple Inc. can combat this attempt to decrease demand by generating organic demand of products and services. Apple Inc. can lower prices to compete with the lower prices of the competitive market. However, if Apple Inc. were to lower their price point it would affect their profit margin and could potential inhibit company growth. Instead of lower price point, Apple Inc. generated new demand through innovation and new product and service offerings. For example, with each new iPhone Apple Inc. released, there is a surge in sales and a surge in demand. New products and improvements to existing products continue to generate demand for Apple Inc. and create positive value for the company. Apple Inc. also faces other risk factors to their company’s growth and success. Apple Inc.’s “operations and performance depend significantly on global and regional economic conditions” (U.S. Securities and Exchange Commission, 2015). Simple uncertainty about the future of the global and regional economies Apple Inc. serves is a general risk factor. Risks such as decreased lending and credit, higher unemployment, decreased consumer spending, and declines in income can negative affect the company’s aggregate demand. With a decrease in lending and credit given, consumer spending will go down. As customers aren’t able to purchase products and services with credit from the banks then Apple Inc. aggregate demand will fall and their GDP will also decline. Higher unemployment can also affect the company’s sales and profits. Higher unemployment means less consumer spending and potentially a risk of deflation with the regional economy. All of these factors contribute to the company’s aggregate demand. A way that Apple Inc. has contributed to the global and regional economies is by creating jobs through innovation (Apple Inc., 2016). Apple Inc. creates jobs through the innovation of their products and services. By creating jobs, Apple Inc. is combating the risk factors of higher unemployment, decreases consumer spending, and tighter lending and credit. Creating jobs decreases unemployment, increases income, increases consumer spending, allows for more lending and credit, increase demand for their products, and increases net profit and margins. Apple Inc. also faces economic implications from operating in global market as well as operating in different market and industry structures. First, Apple Inc. experiences from major benefits from operating in the global market. Apple Inc. gains access to new customers by expanding to other markets around the world (Dewhurst, Harris, & Heywood, 2012). Access to new customers allows Apple Inc. to increase demand for their products and services. An increase in demand equals an increase in potential profit. Along with access to new customers, operating in a global market allows Apple Inc. access to new suppliers as well (Dewhurst, Harris, & Heywood, 2012). Access to new suppliers gives Apple Inc. the opportunity to increase margins by finding a local supplier that would be most cost effective compared to using a supplier from a distant location. Secondary to new customers and suppliers, Apple Inc. has gained exposure by entering the global market and expanding to multiple countries. Gaining access to new customers and suppliers, gives way to gain access to investors. Additional investors mean greater company growth and more success within each new market that Apple Inc. enters. Aside from the benefits of operating in the global market, there are struggles. Many companies that operate in the global markets have difficulties fully understanding the operating environment and customer needs with in the new market (Dewhurst, Harris, & Heywood, 2012). Struggling to adapt to the regional and local markets can be unfavorable when expanding into new markets and competing with local companies. In order to successfully operate in global markets, it is suggested that a company should approach global integration through the “AAA Triangle” (Ghemawhat, 2007). The three A’s stand for adaptation, aggregation, and arbitrage. Each represents a different strategy to approach the global market. Adaptation is the approach that “seeks to boost revenue and market share by maximizing a firm’s local relevance” (Ghemawat, 2007). In the case of Apple Inc., it is very important to establish market share within the new market being entered. Apple Inc. has successfully adapted to many different markets around the world and created relevance within each market. Next, aggregation is the approach that “attempts to deliver economies of scale by creating regional or sometimes global operations” by “standardizing the product or service offering and grouping together the development and production processes” (Ghemawat, 2007). Lastly, arbitrage is explained as “the exploitation of differences between national or regional markets, often by locating separate parts of the supply chain in different places” (Ghemawat, 2007). Apple Inc. has over 750 suppliers worldwide in regions of different markets in which they operate (Apple Inc., 2016). This is an example of how Apple Inc. has successfully used the approach of aggregation by grouping development of a market and the production for that market. Apple Inc. differs in the way they operate within different market and industry structures. Apple Inc. has two major industries in which they operate: mobile phones and computers. Apple Inc. experience two different market structures with the two different industries: oligopoly and monopolistic competition. Within the mobile phone industry there are few major competitors making the market an oligopoly. On the other side, Apple Inc. is in a monopolistic competition in the computer industry. A monopolistic competition is established by having several producers in the market, products are not identical, and there are no barriers to entry into the market (Ahlersten, 2008). Apple Inc.’s iMac and Macbook are the only products that have the iOS operating software making it not identical to any other product out there. The computer industry has little to no barriers that prevent a new producer to enter the market place. The computer market has many different producers other than Apple Inc. such as Dell, Toshiba, HP, Lenovo, Asus, Samsung, Acer, and Sony. Apple Inc. has the experience of operating in an oligopoly as well as in a monopolistic competition with the mobile phone and computer industries. In addition to operating in global markets and in different market and industry structures, Apple Inc. has regulatory and ethical considerations when making economic decisions. Apple Inc. could have to make or change business decisions based on regulatory factors. Since Apple Inc. has producers, suppliers, and retailers all over the world there are countless regulations that need to be upheld. In each of the countries in which Apple Inc. operates, governments are constantly modifying regulations in regards to factory conditions, labor laws, and taxes. In regards to factory conditions, Apple Inc. has been under the spotlight about worker conditions in overseas markets. Apple Inc. will have to adjust production and this will result in a “change in their cost structure, affect delivery timetables, and could result in higher prices for its products” (Thierer, 2012). More specifically Apple Inc. faces the regulatory issue of antitrust and the company is being investigated for supposedly “anti-competitive practices in the e-book market” (Thierer, 2012). For Apple Inc., antitrust can become a threat that will affect any and all business decisions as well as the company’s innovations.
In addition to working conditions and antitrust, Apple Inc. has to consider the regulatory risks of spectrum usage, privacy, and patents. Apple Inc. and many other technology companies rely a great deal on healthy wireless ecosystem. Today, providers are doing their best to keep up with the exponential increase in demand for data. However, federal regulations continue to limit the availability of a greater supply (Thierer, 2012). With Apple Inc.’s increased demand for spectrum availability, an investment in spectrum capacity could open the company to new and different regulations from the Federal Communications Commission and puts them at an increased risk (Thierer, 2012). Privacy laws affect millions of computers that handle consumers’ personal information. Apple Inc. is one of them. New rules and laws will affect how Apple Inc. handles consumers’ information, both personal and professional. Lastly, patents have become a greater regulatory consideration for Apple Inc. in making business decisions and innovations. Apple Inc. not only has to protect themselves from others using patented ideas but has to also be aware of other companies’ patents. Apple Inc. has become a big target in the legal battles regarding patents over last few years. The cost of litigation for the cases against Apple Inc. and other companies can be a risk to Apple Inc.’s ability to innovate in an efficient manner (Thierer, 2012).
Along with regulatory considerations, Apple Inc. has also faced ethical considerations and how they impact the company and their business decisions. Consumers and businesses alike are now more aware than ever of ethical behavior or lack thereof towards consumers, employees, and suppliers. Apple Inc. faces the scrutiny of ethical labor in their China based factories were iPhones, iPads, and other devices are assembled. In these factories, workers experience harsh conditions, excessive overtime, underage workers, and falsified records (Duhigg & Barboza, 2012). These labor conditions are very appalling to the U.S. and European consumer because of strict labor laws in such countries. However, in China these conditions are very likely at many other plants and factory in the nation. Ethics is a choice, Apple Inc. just like many other technology companies that assemble their products in China have choice to be ethical Labor conditions that result in illness and unsafe working environment are unethical and need to be addressed. Current and former Apple Inc. executives say that they have made significant steps in improving factories in the recent years (Duhigg & Barboza, 2012). Apple Inc. has created a “supplier code of conduct” that creates the standards on labor, safety, and other issues (Duhigg & Barboza, 2012). The company has also vigorously increased auditing and when abuses and violations to the code of conduct are discovered, corrections are required (Duhigg & Barboza, 2012).
Besides labor conditions and the ethical implications associated with them, Apple Inc. has another major ethical flaw: secrecy. Apple Inc. is secretive that they disguise the shapes of products under development using phony packaging and black cloaks (Hawthorne, 2012). Without information, consumers, investors, employees, and activists have no idea whether a company is participating with sweat shops, endangering the environment with pollutants, or even using dangerous chemicals. Apple Inc.’s secrecy has negatively affected the company’s ratings at Greenpeace and ClimateCounts for years (Hawthorne, 2012). Lack of information and openness to the public can create a negative image of Apple Inc. from an ethical point of view. After Steve Job’s death, the new CEO, Timothy Cook, has started to hear the complaints of consumers and activists. Timothy Cook and Apple Inc. have become more open to the public and even published the Fair Labor report on its Chinese factories and coinciding the company’s Greenpeace score has increased (Hawthorne, 2012). By allowing the public into the walls of Apple Inc., the company has overall become more ethical than before with the veil of secrecy disguising the public’s point of view.
Apple Inc. experiences several risk factors that could affect corporate operations on a macroeconomic level. Apple Inc.’s operations and performance depend greatly on global and regional economic conditions. Customer spending is a major macroeconomic risk factor that can adversely affect Apple Inc.’s operations (U.S. Securities and Exchange Commission, 2015). Consumers and businesses alike may decrease spending with the uncertainty of the economy. This may be a respond to “tighter credit, higher unemployment, financial market volatility, government austerity programs, negative financial news, declines in income or asset values and/or other factors” (U.S. Securities and Exchange Commission, 2015). Consumer spending and demand are also affected by changes in cost of living such as housing cost, fuel, other energy costs, and healthcare costs. This risk factor continuing to grow as Apple Inc. raises prices of goods and services to correspond with the U.S. dollar strengthening (U.S. Securities and Exchange Commission, 2015). A decrease in consumer spending and the uncertainty of the market prove to be risk factors for the demand of Apple Inc.’s goods and services. In addition to a decrease in consumer spending, another risk factor reported on Apple Inc. 10-K filing is the possibility of financial havoc that would affect the banking system and financial markets (U.S. Securities and Exchange Commission, 2015). If the banking system and financial markets became unstable it could have numerous affects on Apple Inc.’s business. First, it would create financial instability for outsourcing partners and suppliers. Financial instability of partner and suppliers can lead to inability to be given credit in order to develop or manufacture products. A decrease of delay in manufacturing would result in delays and a shortage in supply. A financial turmoil can also affect Apple Inc.’s consumer spending. If the banking system and financial markets are not able to grant credit, some consumers may not be able to purchase the goods or services from Apple Inc.
As macroeconomics topics such as financial stability and the banking system can affect consumer spending, it can also affect the microeconomic principle of supply and demand. If consumer spending were to decrease, the demand would decrease and Apply Inc. would either have to lower the supply or quantity being produces or lower the price of the good and services in order to combat the decreased demand. Other areas of Apple Inc. help keep demand and supply at equilibrium such as product innovation. Product innovation and the release of new products or new versions of existing products help to keep demand constant. With every new iPhone that is released, Apple Inc. is organically increasing the demand for the new product. Increased demand equal increased consumer spending which leads to a higher margin and gross profit. Apple Inc.’s microeconomic environment in which it operates focuses on the theories such as supply and demand, market and industry structures, and cost of production. Cost of product is one way Apple Inc. can increase gross profit by decreasing the cost of production. Apple Inc. as well as many other companies do so by outsourcing suppliers. Apple Inc. has factories around the world that make their products at a lower cost than it would if it were made domestically in the United States. By outsourcing production, you decrease the cost of product and increase the margin of the product. Making a decision to go from domestically producing a product to producing overseas is one area of the microeconomic environment in which Apple Inc. operates.
This analysis of Apple Inc. has taken a look at the industries in which it operates, applied economic theories to create profit maximization, analyzed the economic implications of operating in global markets, assessed the impact of ethical and regulatory considerations, analyzed the macroeconomic environment, and analyzed the microeconomic environment of the company. Apple Inc. is a major technology company that has grasped the global market. Apple Inc. successfully innovates and creates products and services that are demanded by the consumer. Apple Inc. has a bright future as one of the best technology companies in the world. In order to achieve future success Apple Inc. must remain aware of the risk factors involved with global and regional markets. Consumer spending is at risk and ultimate the demand for their products is at risk. Apple Inc. should also continue to make stride in improved their ethical code of conduct and continue to improve the factory and working conditions for its suppliers. Apple Inc. must also adhere to all regulatory changed in the future and adjust accordingly to them. By increasing the public’s value of the company through better ethics, more innovation, healthy financial market and banking systems and monitoring consumer spending Apple Inc. will flourish in the years to come.

References
Ahlersten, K. (2008). Essentials of Microeconomics.
Apple Inc. (2016). About - Job Creation - Apple. Retrieved from https://www.apple.com/about/job-creation/
Apple Inc. (2016). Store List - Apple Store - Apple. Retrieved from https://www.apple.com/retail/storelist/
Apple Inc. (2016). Supplier Responsibility - Apple. Retrieved from http://www.apple.com/supplier-responsibility/
Apple Inc... (2015). In The Hutchinson unabridged encyclopedia with atlas and weather guide. Abington, United Kingdom: Helicon. Retrieved from http://library.capella.edu/login?url=http://search.credoreference.com/content/entry/heliconhe/apple_inc/0
Dewhurst, M., Harris, J., & Heywood, S. (2012). The global company's challenge. McKinsey Quarterly. Retrieved from http://www.mckinsey.com/insights/organization/the_global_companys_challenge
Duhigg, C., & Barboza, D. (2012, January 26). In China, Human Costs Are Built Into an iPad. The New York Times, p. A1. Retrieved from http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html?_r=0
Ghemawat, P. (2007). Managing Differences: The Central Challenge of Global Strategy. (cover story). Harvard Business Review, 85(3), 58-68.
Hawthorne, F. (2012, July 5). Apple's Appalling Ethics. The Huffington Post. Retrieved from http://www.huffingtonpost.com/fran-hawthorne/apples-appalling-ethics_b_1651264.html
Israel, L., & Johnson, C. (2016, January 6). Record-Breaking Holiday Season for the App Store. Retrieved from https://www.apple.com/pr/library/2016/01/06Record-Breaking-Holiday-Season-for-the-App-Store.html
Krugman, P. R., & Wells, R. (2005). Oligopoly. In Microeconomics (pp. 363-387). New York, NY: Worth.
Thierer, A. (2012, April 8). Regulatory, Anti-Trust and Disruptive Risks Threaten Apple's Empire. Forbes. Retrieved from http://www.forbes.com/sites/adamthierer/2012/04/08/regulatory-anti-trust-and-disruptive-risks-threaten-apples-empire/#2715e4857a0b652f8bd4739d
U.S. Securities and Exchange Commission. (2015). Form 10-K. Retrieved from http://www.sec.gov/Archives/edgar/data/320193/000119312515356351/d17062d10k.htm

Similar Documents

Premium Essay

Apple Inc Financial Report Analysis

...Apple Inc Financial Report Analysis FINC 330 Business finance instructor: Philip Bradley Prepared by: Table of Contents Page 1) Company Description……………………………………………….…...... 2 Company background………………………………………..….. 2 Industry analysis………………………………………………..... 2 Products and services…………………………………….…......2 Investment strategy…………………………………….……...…3 2) Market Analysis……………….………………………………................... 3 Direct competitors…………………......…………………………. 3 Financial performance comparison…………………......………3 Growth comparison…………………......…………………...…...4 Trailing total returns comparison…………………......…………4 Ratio comparison…………………......…………………………. .5 Detailed ration comparison…………………......……………5 3) Financial Performance Analysis………………………………………...... 6 Ratio analysis........................................................................... 6 Detailed analysis................................................................. 7 4) Recommendations ……………………………………………………..… ..8 5) Conclusions……………………………………………............................ ..9 6) Reference…………………………………………………………………...10 7) Appendix……………………………………………………………….....…11 Income statement....................................................................11 Balance sheet.......................................................................... 12 Cash flow........................................................................

Words: 1693 - Pages: 7

Premium Essay

Apple, Inc. Swot Analysis

...HEAD: Apple, Inc. SWOT Analysis Apple, Inc. SWOT Analysis AIU – MGT680   Abstract As a senior manager of a computer company, this paper will discuss the company’s competitor, Apple, Inc. This paper will include five factors of strengthens, weaknesses, opportunities, and threats for Apple, Inc. It will explain why those factors are important for this company to know. The paper will also propose a strategy and product that will take advantage of Apple, Inc. vulnerabilities which will increase this company’s market share.   Apple, Inc. SWOT Analysis Introduction Apple, Inc. is a major competitor for our company and by doing a SWOT analysis of Apple, Inc. means we can help our own strategies. A SWOT analysis looks at strengthens, weaknesses, opportunities, and threats factors of Apple, Inc. By knowing these factors about Apple, Inc. will be important to our company because it takes a look at our competitor. A strategy and product will also be proposed that will take advantage of Apple, Inc. vulnerabilities which will increase this company’s market share. SWOT Analysis Strengths Apple, Inc. has five great strengths that include innovation, brand, customer loyalty, retail stores and marketing, and cash flow abundance. Apple, Inc. innovation includes being the leader in technological innovation with the release of products such as the iPods, iPhone and more. The 2012 Global Innovation 1000 ranked Apple, Inc. number 1 for the 3rd year in a row. Apple, Inc.’s......

Words: 1762 - Pages: 8

Premium Essay

Computers

...Business Analysis of Apple Inc Apple Computer Company originated on April 1, 1976 by Steve Jobs and Steve Wozniak, dropped out of high school. At the time of forming their partnership, Steve Jobs worked for Atari and Steve Wozniak worked at Hewlett-Packard. Their company initially started in Steve Jobs’ garage. The first computer was the Apple I, followed by Apple II which launched in 1977. By 1980, Apple III was released and they were able to employ several thousand people. Apple or “the company” is engaged in design, development and marketing of personal computers, media devices, and portable digital music players (Research and, M. 6). The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The two master minds behind the Apple branding has lead to $65.23 billion dollars in sales in 2010. The amount of technical devices this company has produced over the years has earned superior creditability in the technology field for stationery and portable devices. Today Apple’s annual review is more than 60 billion, making them the largest technology company in the world. Apple aims to continually invest in research and development for products that best serve the needs of the market. It is very important in the role as a mutual fund manager, to evaluate the business analysis of Apple Inc. before making the decision of whether or not to invest into this......

Words: 1165 - Pages: 5

Premium Essay

Apple Case Study

... Case Name: Apple Inc. Case Study Analysis Introduction This analysis is based on Apple Inc. case study in which the strategic management is analyzed. In the process of analyzing this concept, the article also indentifies the issues and problems as they are presented together with the identification of the major issues surrounding the organization and individuals that are involved with the Apple Inc. Alternative course of action is addressed together with the recommendation that is based on the analysis. Understanding strategic management Through strategic management, a series of moves are developed and executed with an aim of enhancing the organization to be successful in the current situation and also in the future. As the Apple Inc aggressive history is analyzed, a slew of examples are unveiled with an illustration of the irreproducible ability in the effort to have an adoption as well as own market creation. Apple’s strategic management The success of Apple Inc. has been based on its ability to integrate into its model of business operation a management that is strategic. Through strategic management diligent involvement, Apple Inc. has been able to ensure that it is not maneuvered; a strategy that has enabled the company for the past 3 decades to emerge as successful in the competition. However, believing that Apple Inc. has not gone through some setbacks would be illogical. In fact, this is one of the companies that have their good......

Words: 1005 - Pages: 5

Premium Essay

Apple

...Apple Inc. in 2012 case study Executive Summary According to the case “Apple Inc. in 2012”, it was clearly illustrate that Apple Inc. is one the largest computer manufacturer in the world. The Apple company has a perfect concept and operating systems of manufacturing new products in which launch to the customers. Also, there are some other companies try to imitate the Apple Inc., but some of them were failed. The main purpose of this report is to seek the problems of the Apple Inc. and give an efficient recommendation for the company to help them get better development in the future. 1. Introduction Apple company began as “Apple Computer” and best known for sell Macintosh personal computers in the 1980s and 1990s. (David B, Y, Rossano, P 2012) When Steve Jobs became CEO of Apple Inc. in 1997, the company had changed from near bankruptcy to one of the largest and most profitable companies in the world. Also there are a number of challenges while Jobs need to face his successor. After that, Tim Cook became the new CEO of Apple Inc., he was decided to choose different approach in which distinguish with Steve Jobs to develop the company perform well in the future. However, with the different period, Apple Inc. to change their management very often in these years, such as Sculley, or Spindler, Amelio were served in the company in different period. The liquid management should be an issue in which connected with Apple Inc.. Furthermore, Apple Inc. was using the market...

Words: 1125 - Pages: 5

Premium Essay

Business Analysis

...------------------------------------------------- Apple Inc. Business Analysis Category: Business Autor: Mike 26 July 2010 Words: 3002 | Pages: 13 Business Analysis of Apple Inc. On April 1, 1976 Steve Jobs, Steve Wozniak, and Ronald Wayne joined together to form Apple Computer Incorporated. The concept behind their company was the creation of an inexpensive, simple to use personal computer kit. Working out of Jobs' garage in Cupertino, California the trio designed and manufactured their first product in three months. They named this product the Apple I and it went on sale in July 1976 for $666.66. Six months after the release of the Apple I, Ronald Wayne opted to sell his share of the company back to Jobs and Wozniak for a meager $800. Soon thereafter multimillionaire Mike Markkula joined Apple and on January 3, 1977 the company was incorporated. Apple continued to gain momentum and was one of the fastest growing companies by the end of 1978. With the introduction of the Apple II plus, the company enjoyed a 400 percent increase in sales in 1979. In December of 1980 the company went public and within minutes the 4.6 million shares sold out at a price of $22 per share. An additional 2.6 million shares was also sold out by May 1981. However, the firm suffered its first major fallback with the release of the Apple III in September of 1980. The newest version had not undergone necessary testing due to time constraints and pressure from upper management. This proved to be......

Words: 3020 - Pages: 13

Premium Essay

Strategic Quality Management and Customer Satisfaction

...employees. This paper illustrates Apple Inc.’s SWOTT analysis and how the company develops its vision, mission, and guiding principles based on this analysis. This paper also reviews how Apple’s strategic plans and objectives define quality as a core principle. Finally, an assessment of some tools Apple uses to measure customer satisfaction and how these measurements can enhance quality. Apple Inc. Apple designs, develops and markets personal computers, media devices, and portable digital music players. Founded in 1979 by Steve Wozniak and Steven Jobs, Apple has become a world leader in the personal electronic entertainment industry. Apple leads the digital music revolution with its iPods and iTunes online stores. The company reinvented the mobile phone with its revolutionary iPhone and application stores, and has recently introduced its magical iPad that is defining the future of mobile media and computing devices. The organization built this empire by sustaining the Four Basic Values establish from its conception. Honesty; Ensures Apple demonstrate honesty and high ethical standards in all business dealings. Respect; Treat customers, suppliers, employees, and others with respect and courtesy. Confidentiality; Protect the confidentiality of Apple’s information and the information of our customers, suppliers, and employees. Compliance; Ensure that business decisions comply with all applicable laws and regulations. These simple values have transformed Apple from a two man......

Words: 1294 - Pages: 6

Premium Essay

Apple Business Analysis

...Runninghead: Apple Inc. Business Analysis |1 | | Apple Inc. Business Analysis Yvette Metzger Mgmt 521 September 12, 2011 Erick Espinosa |Apple Inc. Business Analysis |2 | Many companies in today’s market have become successful through a variety of investors. These investors supply in the businesses needs to fulfill that particular business and provide revenue and profits in the future. As a manager, a business is going to want to ensure all avenues of that business are updated and essentially active to their fullest potential. Many operations of technology are equipped by utilizing various methods to conduct future business decisions to determine their future profits and success. These methods include SWOT analysis, verification of stakeholders, and identifying wants and needs of a business. Of these companies, those that carry advanced modern technology tend to see the change in the market the quickest and yet have high returns. Apple Inc., a technology based company that manufactures professional software has achieved success since its start up with two entrepreneurs high school drop out students. Through many years of study, they developed an analysis that will compete against the technology industry. Apple Company, one of the highest US businesses known for their efficient products providing technology more advancement and......

Words: 2516 - Pages: 11

Premium Essay

Sample Analysis of Apple

...Economic Analysis of Apple Inc. Introduction 3 Industry analysis 4 Personal computers 4 Computer software 5 iPod and iTunes 5 Company analysis 7 Apple Computers Inc 7 Apple Inc 8 Innovation 9 Profitability 9 Recommendations 11 Personal computing 11 Conclusions 12 References 13 Appendix 14 Introduction The primary purpose of this report is to execute an economic analysis on Apple Inc. We will review the impacts that the competitive market has had on Apple, since it was founded in 1976. This report will detail how Apple Inc. is both a dire example of the adverse effects of monopolistic competition on a company as other companies into the market; as well as an exceptional example the economic rewards yielded by innovation and brand differentiation within a competitive market. An analysis of Apple Inc would be incomplete without reviewing its past and present competitors. Reviewing these competitors will help the reviewer gain insight into comparative advantages held by other companies and the economic impact this has had on Apple Inc. this report will review the industry as a whole in order to understand the impacts of industry level supply and demand upon Apple Inc. The report will briefly examine the impact of market prices and international trade as an aspect of this report. More importantly, it will review specialization is undertaken by Apple Inc and the economic benefits gained by this course of action. Essentially, the economic view of Apple Inc is......

Words: 2654 - Pages: 11

Premium Essay

Mgt 521

...Business Analysis Part III MGT 521 August xx, 2011 Abstract In this Business Analysis Part III I will summarize significant facts and conclude the analysis by including conclusions from Business Analysis Part I & II which will help in the decision making to invest or not in Apple Inc. Business Analysis Part III Strategic Initiatives Vision Statement According to Apple Inc “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1985 with the Macintosh. 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.” Mission Statement According to Apple Inc, “Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services.” Value According to its new CEO Tim Cook,......

Words: 2892 - Pages: 12

Premium Essay

Business Analysis for Apple

...Business Analysis of Apple Inc. Victoria Randle MGT 521 May 11, 2011 JAMES BURRESCIA Business Analysis of Apple Inc. Apple was created in 1977 in California. They design, manufacture, and market personal computers, mobile communication and media devices, and portable digital music players, and sell a range of related software, services, peripherals, networking applications, and third-party digital content and applications. Beginning with apple computers it was predominantly a manufacturer of personal computers, including the Apple II, Macintosh and Power Mac lines. The amount of technology that this company has produced over the years allows them to maintain an up to date status. (Apollolibrary.com) Apple In addition sells a range of third-party Macintosh, iPhone, iPad and iPod compatible products including application software, printers, storage devices, speakers, headphones, and other accessories and supplies through its online and retail stores. Today, Apple is the largest technology firm in the world, with annual revenues of more than $60 billion. SWOT When deciding whether or not to invest into mutual funds of Apple Inc. You have to figure out the strengths, weaknesses, opportunities this company has to offer and the threats you could face if you decide to invest. Strengths This company has been extremely successful over the years. Shortening the name of the Macintosh computers to Mac’s and the IPod music player has increased its quarter profits; this......

Words: 5731 - Pages: 23

Premium Essay

Apple Analysis

...Business Analysis of Apple Inc. Apple Inc., founded in 1976 by Steve Jobs and Steve Wozniak were looking to create a new type of computer. Thirty years later not only have they become one of the leading computer companies, but have also become successful in many other technological areas. Apple has branched out in computers (iMac, Macbook, Macbook Air, iPad), music industry (iPod, iTunes), cellular phone (iPhone), and have become leaders in these areas as well. To make an informed decision of whether or not to invest in Apple Inc., a business analysis must be done to determine the financial health of the company. The United States has been enduring an economic downturn since December 2007, according to The National Bureau of Economic Research (Isidore, 2008). Despite the recent economic downturn, Apple Inc. has turned a substantial profit for the past five years and is consistently one of the top performing firms in the Fortune 500. A review of their financial statement shows the extent of their success through the country’s struggles. Apple Inc.’s balance sheet, which is provides detailed information about a company’s assets, liabilities, and shareholder’s equity (U.S. Securities and Exchange Commission, 2007). Apple Inc. has reported steady grains of their assest from the preverious years. They reported a gain of 150% in 2007, 16% in 2008, 1% in 2009 and 11% in 2010. Apple Inc.’s total current assets went from $14 billion in September 2006 to $41 billion in......

Words: 3350 - Pages: 14

Premium Essay

Apple Inc. Case Study

...GB520: Strategic Human Resource Management Professor Susan Pettine Kaplan University Apple Inc. Case Study 2008 Apple Inc. Case Analysis Introduction The 2008 Harvard Business Case Study on Apple Inc, describes the illustrious company which is fast becoming the wealthiest company ever with a net worth of $500 billion dollars. It illustrates how the company has had some issues, but still find a way to yet sustain its’ name and position over the years. The status of the company was examined in detail by the article which revealed a number of strategic moves under the leadership of several CEO’s in marketing, the PC industry and the consumer electronics industry. This paper offers an analysis of how I view Apple Inc. using the Strategic Management Process. Therefore, the latter part will offer recommendations of some difficulties Apple Inc. faced as it made successful changes (Slind & Yoffie, 2008). Synopsis (Background) of the Situation April 1, 1976 Steve Jobs and Steve Wozniak cofounded Apple Computer in Los Angeles, California from Jobs garage; they built a computer circuit board and named it Apple I. In just a few months they sold 200, in less than three years Apple had annual sales of $1billion which quickly propelled them an industry leader. Apple was thriving to a degree that seemed to be beyond the capacity of Apple computer. Although Mac sales surged in recent years, Apple’s share of the PC market......

Words: 1437 - Pages: 6

Premium Essay

Implementing Strategic Management for Apple Inc.

...Balochistan University of information techonology engineering and management sciences | Implementing Strategic Management | APPLE Inc. | Rabia Iftikhar 12285 | MBA 5th B | Jun 24, 2013 | | | | | | Ma'am Mehwish Shahid Think Different ACKNOWLEDGEMENTS Praise and thanks to “ALLAH” Almighty, the one testing us all at all times and making decisions about what we don’t know and can’t know. The report being submitted today is a result of collective effort. There are innumerous helping hands behind who have guided us on our way. Writing this report appeared to be a great experience to us. It added a lot to our knowledge. This report is one of our memorable experiences in student life. Though words are inadequate in offering thanks to our teacher but we owe our profound gratitude to Ma’am Mehwish Shahid for stimulating our creative abilities by assigning this project to us and for her able guidance and useful suggestions, which helped us in completing the project in time. Whatever we have learnt from her and this project report has put indelible impression on our minds and it is our conviction that this learning experience will always be a source of help in our practical life and professional career. Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents, for cooperation, help,......

Words: 5388 - Pages: 22

Premium Essay

Management Paper

...Business Analysis for Apple Inc Robert A Smith II MGT 521 May 9, 2011 Mary Jo Payne, Ph.D. Business Analysis for Apple, Inc As children many people are taught that the only way to earn income is by obtaining a job, and a way to get more money is by logging additional hours on the job. This ideology is true, but for people who also value possessing the free time to enjoy life while in pursuit of financial success this way of life is also very wearing. Investing is a fiscal tool people can use to send their money to work. True investors understand that making their money work presents some risks, but with guidance and thorough analysis they can maximize their earning potential whether or not they receive a raise, decide to work overtime or look for a higher paying job (Investopedia, 2011). With many investment vehicles to choose from such as bonds, mutual funds, and company stocks, the most important thing to remember before investing is to do research and only invest money when there is a realistic probability of revenue. In this paper a Strength, Weakness, Opportunity, and Threat (SWOT) analysis of Apple Inc. was performed to determine if this electronic computer corporation giant is a worthy investment. SWOT Analysis |Strengths |Weaknesses |Opportunities |Threats | |Reputation |Product weaknesses |iPhones ...

Words: 1113 - Pages: 5