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Subject: Strategic Management of Apple Inc.

Topic: How Apple Inc. use strategies in different parts of the

organization, how they apply the process of each strategy, and
their positive effect in the future on the organization.



The report submitted today is a result of collective efforts, there is so many hands
stand behind completing it, and thanks for the group members who work hard to give
this complete work.
Tough words are inadequate to thank you all to make this work success.
Finally, we hope that this book will be an integrated and successful and to obtain
impress of the readers.


In our project we start by defining what are a management, a global management, and
a strategic management means. And as we know every organization has its own
strategies, so we will talk also on how an organization uses strategies, what are the
types of these strategies, and when, where, and why they are using them.
Our project will focus on Apple Strategies and every type of strategy listed in this
project it will focus on Apple how they use them.
Also on our project we focus on the Implementation process, where it start, what is
the process APPLE Inc. must follow, and how we get a complete Implementation
process. And in order to talk about the Implementation process clearly, we had to talk
on other strategies process so we define and talk briefly on the formulation process,
and the environmental scanning.
After we define and talk about some strategies process we start defining and talking
about the role of the strategies in the different departments of APPLE Inc. and how its
affect the function of APPLE positively in the short-run and long-run term.
In the last paragraph we talk about Board of Directors and its role, how their decisions
are affect the company, and we finish our project in a small conclusion about the
benefits of the strategic management and how it positively affect APPLE Inc. with
some useful recommendations.



ACKNOWLEDGMENT................................................................................................ 2
Abstract .......................................................................................................................... 3
Table of Contents ........................................................................................................... 4
List of Figures ................................................................................................................ 6
Outline: .......................................................................................................................... 8
INTRODUCTION ....................................................................................................... 10
Overview of Apple Inc: ............................................................................................... 12
APPLE INC. ................................................................................................................ 12
Strategy Formulation ............................................................................................... 13
Strategy Implementation .......................................................................................... 14
1. Strategy Analysis and Formulation of Apple Inc ................................................ 15
3. SWOT Analysis for Apple Inc. ......................................................................... 16
1.

Cost leadership strategy: ............................................................................ 21

Advantages of cost leadership: ............................................................................ 22

Disadvantages of cost leadership: ........................................................................ 23
2.

Differentiation Strategy: ............................................................................ 23

3.

Integration Strategy: .................................................................................. 24

Environmental scanning: ............................................................................................. 25

$SSOHXVLQJ3RUWHUV)LYH)orces Model ................................................................. 26
APPLE in the Market: .................................................................................................. 27
Apple Strategies in the Market ................................................................................ 27
1.
2.

Apple Branding Strategy ........................................................................... 28

$SSOHV0DUNHWLQJ0L[6WUDWHJ\3V ............................................................. 32

A.

$SSOHV3URGXFWV3URGXFW0L[ ................................................................... 32

B.

Apple Distribution Place: .............................................................................. 33

C.

$SSOHV3URPRWLRQV3URPRWLRQDO0L[ ........................................................ 33

D.

$SSOHV3rices and Pricing Strategy .............................................................. 34

3V7DUJHW0DUNHW ................................................................................................. 34

Importance of strategies in HR Department: ............................................................... 35
We have two types of HR strategies: ....................................................................... 36
Creating an effective structure ................................................................................. 37
The Advantages of an Effective Organizational Structure: ..................................... 37
Management Information System (MIS) in Human Resource ................................ 38
Apple's HR Strategies: ................................................................................................. 39

7 Essential steps to build an effective HR Department............................................ 39

3V+5&RQFHSW .................................................................................................... 41
$33/(V%RDUGRI'LUHFWRU ......................................................................................... 41
Role of the BOD: ..................................................................................................... 43
Conclusion: .................................................................................................................. 44
Recommendations: ................................................................................................... 44
References .................................................................................................................... 46


Figure 1: ....................................................................................................................... 15
Figure 2: ....................................................................................................................... 20
Figure 3: ....................................................................................................................... 21
Figure 4: ....................................................................................................................... 30
Figure 5: ....................................................................................................................... 32
Figure 6: ....................................................................................................................... 35
Figure 7: ....................................................................................................................... 41
Figure 8: ....................................................................................................................... 42



















I. Introduction
A. Introduction to Management
B. Definition of the Strategic Management and Features
C. Apple Inc.
1. Executive Summary
2. Introduction
II. Strategic Implementation and Formulation of Apple Inc.
A. Definitions for both Implementation and Formulation
B. Differences between the Implementation and Formulation
C. Process of implementation used by Apple
III. Environmental Scanning
A. definition
B. what should be scanned
C. importance of environmental scanning
D. internal/external
IV. Strategic by Departments, Apple Inc.
A. The role of strategies in marketing
1. Definition of the strategic marketing
2. Entering Apple Product the global markets
3. Long-term strategy for Apple product distribution
B. Importance of strategies in HR department
1. Apple HR strategies
2. 7 Essential steps to build an effective HR Department
3. Human Resource Information System

V. Role of The BOD In The Strategic Management

A. Strategic Decisions
B. Evaluation And Benefits
VI. Conclusion
A. Benefits of The Strategic Management and Its Effect On Apple Inc.
Future
B. Recommendation


7KHZRUG0DQDJHPHQWGHILQHGDVIRXUPDMRUVWHSV3ODQQLQJ2UJDQL]LQJ/HDGLQJ
and Controlling, those four steps defined if corporations manage itself in the right
ZD\EXWWKRVHVWHSVGRQWGHILQHWKHUHDOPDQDJHPHQWFRPSOHWHO\EHFDXVHWKH
PDQDJHPHQWLQFOXGHWKHDFWLYLWLHVDQGGHFLVLRQVWDNHQE\WKH&(2VRUOHDGHUVWKDW
affect the way of managing a corporation. And as we know also, the management
includes in it the marketing and innovations.
%XWDOVRZHFDQQRWVD\WKDWZHDUHFRPSOHWHO\GHILQHGWKHPDQDJHPHQWEHFDXVHLWV
LQFOXGHWKH*OREDO0DQDJHPHQWWKDWLVGHILQHKRZ the global companies or the
0XOWL1DWLRQDO&RUSRUDWLRQ01&PDQDJHGEHFDXVHLWVQRWWKHVDPHZD\WKDWZH
manage a small corporation we can use it to manage a Global company, everything
will change when we talk about the International Management. The International
Management or Global Management is refers to the way an organization manages its
business internationally and it will be completely different from the local companies
because of the many differences available between countries. And to manage a
corporation locally or globally they must have a Strategy to keep them in the front and
always differentiated from their competitors.
The Strategies or Strategic Planning are the plans that putted by a CEO or BOD and
affect positively the performance of the corporation in the future, so we can conclude
that the strategic plans are a long-term plans that they must putted to manage a
corporation on the long-term and they must contain expectation about future
competitions, sales growth, unexpected problems that may face the corporation in the
IXWXUHVXFKDVFULVLVLQIODWLRQGHIODWLRQHWFDOVRWKHVWUDWHJLFSODQQLQJGHILQHGDVD
set of managerial decisions and actions that determine the long-run performance of a
FRUSRUDWLRQ6WUDWHJLF0DQDJHPHQWDQG%XVLQHVV3ROLF\,0*73HDUVRQth

10

edition, Chapter 1, Page 53, 1st paragraph), it includes environmental scanning,

strategy formulation, implementation, and evaluation and control.

Objective:
Our project objective is to define what are the real mean of the Strategic Management
and the role of Strategies used in an organization; also we focus on some strategies
process like the Implementation process, define it, and make sure to deliver the right
view to the audiences.
Purpose:
The general purpose of our project is to put our audience in the action of the strategic
management and convince them in the importance of strategies in every single
decision taken by a CEO, Board of Director, or even by the Top Managers and how it
affect the organization positively on the long-run and short-run term.
Theoretical Aspect of the Project:
7KH6WUDWHJLF0DQDJHPHQWLVD concept promotes a systematic approach to strategy
formulation that is founded in the mission, or purpose of the organization and tests the
implementation choices and actions of the firm against that mission. The mission
forms the direct basis for the specific targets the firm will select and attempt to
achieve. It also defines the nature, form and extent of evaluation of the firm and its
environment, as well as the nature of the corporate and business level decisions it
makes. Finally the mission defines the conditions by which the firm will determine
the success of its actions.Our theory has been taken from an online book his name is
Strategic Management and Competitive AdvantagH&RQFHSWVDQG&DVHV%DUQH\-
B. and Hesterly, W.S 2010. 3rd Edition. Prentice Hall, Upper Saddle River, New
Jersey.

11


Apple Inc LVD0XOWL1DWLRQDO&RUSRUDWLRQKROGLQWKH8QLWHG6WDWHVRI$PHULFDLWV
the 3rd largest technology and services organization and the 2nd largest smart phones
organization in the world. According to Reuters, Apple Inc. (Apple), incorporated on
January 3, 1977, designs, manufactures and markets mobile communication and
media devices, personal computers and portable digital music players and sells a
variety of related software, services, and peripherals, networking solutions and thirdparty digital content and applications.


According to Apple Info and Wikipedia websites, Apple Inc. is an American
multinational organization located in 1 Infinite loop, Cupertino, California 95014.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1,
1976. It was incorporated as Apple Computer Inc. on January 3, 1977 and was
renamed to Apple Inc. on January 9, 2007. It was focused firstly on developing and
selling personal computer, other related software product, and the electronic product
such as MP3 Player and the IPod. Apple main products are the IMac, IPod, IPhone,
and the IPad. They are the first company that creates the most successful personal
computer ever, and those are some facts about Apple success that can be calculated in
2012. As $SSOHILUVWTXDUWHUUHSRUWLQ7KH&RPSDQ\VROGPLOOLRQ
iPhones in the quarter, representing 128 percent unit growth over the year-ago quarter.
Apple sold 15.43 million iPads during the quarter, a 111 percent unit increase over the
year-ago quarter. The company sold 5.2 million IMacs during the quarter, a 26
percent unit increase over the year-ago quarter. Apple sold 15.4 million iPods, a 21
percent unit decline from the year-ago quarter. The Company posted record quarterly

12

revenue of $46.33 billion and record quarterly net profit of $13.06 billion, or $13.87
per diluted share. These results compare to revenue of $26.74 billion and net quarterly
profit of $6 billion, or $6.43 per diluted share, in the year-ago quarter

 
6WUDWHJ\)RUPXODWLRQLVUHIHUUHGWRDVVWUDWHJLFSODQQLQJRUORQJ-range planning, is
FRQFHUQHGZLWKGHYHORSLQJDFRUSRUDWLRQVPLVVLRQVREMHFWLYHVVWUDWHJLHVDQG
SROLFLHV,WEHJLQVZLWKVLWXDWLRQDQDO\VLV7KHSURFHVVRIVWUDWHJ\IRUPXODWLRQ
basically involves six main steps:
1. 6HWWLQJ2UJDQL]DWLRQV2EMHFWLYHV
2. Evaluating the Organizational Environment
3. Setting Quantitative Targets
4. Aiming in context with the Divisional plans
5. Performance Analysis
6. Choice of Strategy
However the process of formulation can begin using the SWOT Analysis method.
SWOT is a shortcut or abbreviation used to describe the particular Strengths,
:HDNQHVVHV2SSRUWXQLWLHVDQG7KUHDWVWKDWDUHWKHVWUDWHJLFIDFWRUVIRUDFRPSDQ\
Strategy formulation includes planning and decision making involved a company that
developing their own strategic and long-term plans, and its goals and objectives. The
formulation is to place the force before the real action, is entrepreneurial activity,
HPSKDVL]HHIIHFWLYHQHVVLWVDUDWLRQDOSURFHVVDQG we have to focus also on that the
formulation require someone with greater skills in logic and be initiative in work. All
these points show how a formulation strategy works in the real world. But after all,

13

WKHIRUPXODWLRQZLOOEHLQHIIHFWLYHLILWVQRWfollowed by the second step The

Implementation.

7KH,PSOHPHQWDWLRQVWUDWHJ\LVUHIHUUHGWRWKHVXPWRWDORIWKHDFWLYLWLHVDQGFKRLFHV
UHTXLUHGIRUWKHH[HFXWLRQRIDVWUDWHJLFSODQV,WLVWKHSURFHVVLQZKLFKREMHFWLYHV
strategies, and policies are put into action after they are formulated. Those are the
general steps followed by the implementation strategy:
1. Developing an organization having potential of carrying out strategy
successfully.
2. Disbursement of abundant resources to strategy essential activities.
3. Creating strategy-encouraging policies
4. Employing best policies and programs for constant improvement
5. Linking reward structure to accomplishment of results.
6. Making use of strategic leadership
So we can see now that the implementation and formulation are two consecutive
parts, to do a correct implementation we must firstly have a good work and study the
formulation strategy very well, and without a hard work on implementation the whole
work in the formulation part will disappear.

Strategy Formulation

Strategy Implementation

Strategy Formulation includes planning and Strategy Implementation involves all those
decision-making involved in developing
means related to executing the strategic
RUJDQL]DWLRQVVWUDWHJLFJRDOVDQGSODQV
plans.
In short, Strategy Formulation is placing
the Forces before the action.

In short, Strategy Implementation

is managing forces during the action.

Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly

14

Activity based on strategic decisionmaking.

an Administrative Task based on strategic

and operational decisions.

Strategy Formulation emphasizes

on effectiveness.

Strategy Implementation emphasizes

on efficiency.

Strategy Formulation is a rational process. Strategy Implementation is basically

an operational process.
Strategy Formulation requires co-ordination Strategy Implementation requires coamong few individuals.
ordination among many individuals.
Strategy Formulation requires a great deal
of initiative and logical skills.

Strategy Implementation requires

specific motivational and leadership
traits.

Strategic Formulation precedes Strategy

Implementation.

Strategic Implementation follows Strategy

Formulation.

 Table That show the main differences between Strategy Formulation and
Strategy Implementation and what are their conditions to be done correctly.
 
A. Apple Vision and mission Statement
In the strategy analysis and formulation we have two important parts that we must
define them before we start our work on analysing and formulating our work.
Those two parts are the Vision Statement and the Mission Statement.
The vision statement is the future vision of an organization on what they must
KDYHLQWKHIXWXUHLWVVRPHKRZWKHJRDOVRIDQRUJDQL]DWLRQ
The mission statement is what an organization has to do in order to achieve their
goals or in other word their vision statement.
1. Apple Vision Statement

15

"Man is the creator of change in this world. He should be above systems and
structures, and not subordinate to them."
$SSOHJRDOVDQGREMHFWLYHVDUHWRREWDLQVWHOODUSURGXFWVDQGVHUYLFHVZLWKLQ
tight timeframes, at a cost that represents the best possible value to our
FXVWRPHUVDQGVKDUHKROGHUV
2. Apple Mission Statement
Apple has never published any mission statement butthese points are quoted from
Tim Cook the CEO of Apple Inc. regarding Apple's business philosophy interview:
i.

We believe that we are on the face of the Earth to make great products

ii.

We believe in the simple not the complex

iii.

We believe that we need to own and control the primary technologies

behind the products we make

iv.

We participate only in markets where we can make a significant

contribution

v.

We believe in saying no to thousands of projects so that we can really

focus on the few that are truly important and meaningful to us

vi.

We believe in deep collaboration and cross pollination of our groups

which allow us to innovate in a way that others cannot

vii.

:HGRQWVHWWOHIRUDQ\WKLQJOHVVWKDQH[FHOOHQFHLQHYHU\JURXSLQWKH
company, and we have the self honesty to admit when we're wrong and
the courage to change


Apple SWOT Analysis highlights the most significant Strength that Apple can
use to improve its performance in the market and the Weaknesses and the

16

Threats that the company should address it and turn it into strategies can be
used to compete it in the market, also the SWOT analysis show us the
Opportunities that Apple has in the market that differ it from its competitors.

Apple Strength (Internal Factors)

This aspect of Apple SWOT analysis shows the biggest strength that enables
the company to stand in the market and face the threats of other competitors.
1. Strong brand image
2. High profit margin
3. Effective innovation process
Apple is one of the most valuable and strongest brand images in the world, this
point in the swot analysis show that the organization able to introduce in the
market a new product and hit high sales depending on its brand image
strength, also the policy of high prices that followed by Apple, give it the
opportunity to attained a high profit margin depending on the high class
buyers in the market who will pay any amount putted by Apple to buy their
products, who give it the capability to invest in the R&D more than other
competitors. Either Apple is known for the rapid innovation, based on
(http://panmore.com/apple-inc-generic-strategy-intensive-growth-strategies),
the rapid innovation allow the organization to stay up-to-date with the latest
technologies to ensure the competitive ability.

Apple Weaknesses (Internal Factors)

This aspect of Apple SWOT analysis shows the weaknesses that affect
negatively on the business growth goals.

17

1. Limited distribution network

2. High selling prices
3. Sales limited mainly to high-end market
Due to Apple distribution policy that require on the seller or the distributor to
be recognized by the company itself and by the government of the country
who want to distribute in it, Apple has put a limitation for the distribution of
their products. Also the high selling prices policy put immediate limit on who
will buy these products and stay only between the people of the medium and
high classes. The low class people who represent the greatest part of the
market stay outside the Apple market segment who will affect negatively on
Apple revenues and reputation.

Apple Opportunities (External Factors)

This aspect of Apple SWOT analysis shows the opportunities that the
organization can use them in order to stay in the front of the market.
1. Distribution network expansion
2. 5LVLQJGHPDQGIRU7DEOHWVDQG6PDUWSKRQHV
3. Creation of new product lines
To stay the leadership of the technologies market and to stay in the competition
with other competitors, Apple can expand its distribution network so they can
enter with a strong base into new markets. Also the rising of demand for Tablets
DQG6PDUWSKRQHV give the company an opportunity to create a new specification
that allow it to stay in the competition with other companies. Either they can see
what the needs of the markets and create a new product that differ Apple from its
competitors. This dimension RI$SSOHV6:27DQDO\VLVLQGLFDWHVWKDWWKH

18

company has major opportunities for further growth despite aggressive

competition.

Threats facing Apple (External Factors)

This aspect of Apple SWOT analysis shows the threats facing the company
from various sources such as competitors. Threats can affect negatively on the
financial returns of the company. The most significant threats that are
affecting Apple:
1. Aggressive competition
2. Imitation
3. Rising labor cost in countries where Apple plants are located
Apple competes with firms like Samsung, which also use rapid innovation.
%HFDXVHRIWKHDJJUHVVLYHFRPSHWLWLRQEHWZHHQWKHILUPVLWVQHFHVVDU\WRKDYH
strong fundamentals to maintain the competitive advantage. Also Apple face the
WKUHDWRILPLWDWLRQLWV easy for any competent company to imitate Apple mobile
design. In addition, the rising cost of the labors in countries where Apple are
located, will face the company with the threat of lower the margin of profit or
increase the selling price.

19

  Show the four points of the SWOT Analysis process of Apple Inc.
3RUWHUV)LYHIRUFHV)DFWRUV
3RUWHUVILYHIDFWRUVDUHWKHPRVWSRZHUIXOWRROVWKDWVKRZWKHFRUHRIWKHSRZHULQD
EXVLQHVVRUFRPSDQ\%HORZDUHWKHSRUWHUVILYHIRUFHVIDFWRUVRI$SSOH,nc.

20

RSHUDWLRQLQWKHLQGXVWU\,QRWKHUZD\LWVKDYLQJWKHORZHVWFRVWVZLWKSURYLGLng
your products in the same value, which enable the company to compete in the market
with an advantage not available with other competitors.
How to implement cost leadership strategy?
By using economies of scale, lean manufacturing, experiences, supply chain, tight
cost and overhead control, and cost minimization in the R&D department.
Nowadays, Apple Inc. Use cost leadership strategy by drawing policies and strategies
WKDWVDLPHGWRHQVXULQJWKDWWKHFRPSDQ\KDVWKHORZHVWFRVWSURGXFHUDQGGLVWULEXWRU
in the market.
Because the lack of information available on the websites and online search engines
we will describe briefly the advantages and disadvantages of the cost leadership
strategy without real examples from Apple Inc.

A. Higher profitability: The selling of products in a lower cost basis and
competitive pricing, allow the organization to have a margins greater than
other competitors who invest more to produce a similar quality for the same
product.
B. Increased market share: By earning higher profits, the organization can use
them in increasing their market share and satisfy their customers demand.
C. Sustainability: During tough economic times, or in a beat down price war in
the market, companies with lower costs of production have a better chance to
survive facing other competitors.
D. Capital growth: :KHQDQRUJDQL]DWLRQXVHFRVWOHDGHUVKLSVWUDWHJ\WKH\OO
have more capital resources available to invest for further developments.

22


In order to have a cost leadership strategy, the company need to reduce the cost of
some of their services such as the customer services who will lead to lose the loyalty
of their customers, and in the other hand, they will reduce the cost of the R&D
department who will lead to the lack in the innovation, and it will affect negatively on
the customers who looking for the up-to-date technologies and innovations.

Since 1980s Apple has successfully used the differentiation strategy to separate their
SURGXFWLQWKHPDUNHWIURPRWKHUFRPSHWLWRUVSURGXFWVVWDUWLQJZLWKWKHLUPDFNLQWRVK
FRPSXWHUVWRWKHLUPXVLFSOD\HU,SRGDQGVPDUWSKRQHV,SKRQH
Those are the four majors differentiation used by Apple in the market worldwide:
Product Design
x

A major aspect of a product differentiation strategy comes from product

design. Products that display a different visual style, include different features
or handle different tasks stand out from those offered by the competition.
Apple has made product design a hallmark of its product differentiation
strategy since the company's origins. When Apple introduced the iPod,
iPhone, and iPad, no similar consumer electronics products existed in the
market that included so many features in one package.

Pricing Strategy
x

Another factor in product differentiation plans stems from the company's

pricing strategies. Apple Computers co-founder Steve Jobs sought to create a
topnotch product with a price proportionate to its level of quality while
maintaining high profit margins. The lowest-priced Apple products
consistently fall in the mid-range, but customers are willing to pay that price

23

for the high quality of the user experience. This pricing strategy runs counter
to that of makers of PC "clones," which put out low-end computers and rely
on slim profit margins.
Retail Outlets
x

Apple's pricing strategy extends to its differentiation in the retail electronics

marketplace. While users can purchase PC clones, tablets and mobile phones
from nearly any electronics outlet, Apple differentiates itself by providing
limited quantities to "big box" retailers and focusing its retail efforts on its
Apple Stores. For its third-party retailers, Apple uses a "minimum advertised
price" to prevent outlets like Walmart and Best Buy from undercutting the
prices found at the Apple Stores.

Brand Loyalty
x

Apple has been among the most successful technology companies in the
development of loyalty to a brand. Loyal Apple customers will wait in line to
purchase the latest iPhone, download music through iTunes, watch their
favourite television shows on Apple TV and play games on their iPads. The
company's efforts toward building brand loyalty have allowed Apple to
differentiate itself from Microsoft, Samsung and other competitors in its
various arenas.

7KRVHIRXUSRLQWVKDVEHHQWDNHQIURPWKHHKRZFRPVLWH
Read more:http://www.ehow.com/way_5815745_apple-differentiation-strategy.html


7KHFRPSHWLWLRQZLWK$SSOHLVGLIILFXOWWKDWFRPSHWHVZLWKRWKHUVWHFKQRORJ\
company, because of the wide range of products line in Apple also with the HighTech used in the corporation; allow them to be a difficult competitor in the market.
Also Apple is vertically integrated, it controls all the major critical parts of the chain

24

used to make and sell products. Apple builds great hardware, owns the core software
experience, optimizes its software for that hardware, equips it with web services
(iTunes and iCloud), and finally controls the selling experience through its own retail
stores.
Beyond that, Apple also has a culture that is completely unique, which is another part
of the reason for its success. Steve Jobs in his many keynotes has pointed out that
$SSOHVDSSURDFKWRSURGXFWVLVWKDWWKH\DUHDWWKHXQLRQRIOLEHUDODUWVDQG
WHFKQRORJ\$QGQRERG\LQWKHLQGXVWU\VRIDUKDVEHHQDEOHWRPDWFK$SSOHVH\HIRU
design.


By definition the environmental scanning is a process that consists on gathering and
analyzing as many information to serve its tactical strategies.
Environments which a company desires to operate or entre, There are six main
categories of environmental data to consider when evaluating marketing decisions.
These are social forces, demographic forces, economic forces, technological forces,
political and legal forces, and competitive forces.
Apple uses environmental scanning to gain business intelligence by tracking
systematically their customers and the use of their product (like purchasing apps,
songs and other product s), allowing apple to obtain information from system
feedback that pushes apple to make quality control adjustments to their marketing
strategies.
:LWK6WHYH-REVJRQHDSSOHVFDUU\LQJRQKLVOHJDF\innovative and scalable designs)

25

The world we live in today is technology based, Constant adaptation and

advancement to gain competitive advantage in a rapidly changing and unstable
technological environment will always prove to be a challenge, but Apple seems to
have the formula for success.
  
Apples quality products, superior technological advancement, and unique marketing
VWUDWHJLHVNHHSWKHVXSSO\RI$SSOHVSURGXFWVLQKLJKGHPDQG
With limited manufacturers supplying equal product value or quality, Apple is able to
maintain high supplier power. Apple might want to make a few changes to ensure
productivity and profit from both current and future buyer, stopping the dreadful
chain of making the next product a spin-off of its predecessor.
Environmental Scan basically analyzes and evaluates the internal as well as external
data and factors that affect the organization. Environmental scan involves the
recognition of organization's environment that has potential influence on
organization's environment and therefore, is critical to make successful strategies.
Internal Environment:
Apple's internal environment dynamic and creative. It has developed an internal
environment which encourages its human resource to become a part of Apple brand
and image. According to Apple's website, its employees love working their because of
the creativity, productivity, and being a part of innovation and excitement.
Apple works a lot in developing a culture in the corporation that can promote values
which supports its brand image, which is that the customer can expect having new
experiences through Apple's products.

26

Apple's internal environmental scan shows that the company is highly devoted to the
R&D, which enables it to access the latest technology in order to allow it be always at
the lead, and its marketing strategy involves the use of celebrities in their
DGYHUWLVHPHQWVVXFKDV-DPLHIR[6DPXHO-DFNVRQ6HOHQD*RPH]DSSOH
commercials starring celebrities)
Secrecy can also be seen as strength of their inter-environment because due to this
there is smaller chance for competitors to copy.
External Environment:
Considering its external environment, Apple has focused on two major strategies and
tactics: First it has made strategic alliance with IBM, Microsoft, and AT&T, these
alliances are beneficial for Apple as they provide further computer growth to the
company and also guarantee software that are accessible and recognizable to
consumer worldwide.
Secondly, they focus on the strategy to concentrate on internal growth, which they
have implemented by creating new products for the market they have already
developed and by locating new markets as well. The global expansion is important for
Apple as large consumer markets are present in foreign countries where the
corporation has not started to serve yet, recently the company has opened in the Arab
nation its first store located in the UAE, and introducing the brand new Arabic Siri.



$FFRUGLQJWRWKH3ULQFLSOHRI0DUNHWLQJ%RRNmarketing strategy is the
fundamental goal of increasing sales and achieving a sustainable competitive

27

advantage. Marketing strategies includes all basic, short-term, and long-term activities
in the field of marketing that deal with the analysis of the strategic initial situation of a
company and the formulation, evaluation and selection of market-oriented strategies
DQGWKHUHIRUHFRQWULEXWHWRWKHJRDOVRIWKHFRPSDQ\DQGLWVPDUNHWLQJREMHFWLYHV

Apple Inc. Use the branding strategy in order to compete across several high
competitive markets. They depend on the loyalty of their customers, good reputation,
and on the luxurious of their products to attract other customers.
Since Apple was voted the overall winner of the 2012 CMO survey award for
marketing strategies for the 5th year consecutively, (Apple was named as a winner or
co-winner of the CMO survey for five years consecutive). They has attained high sales
and high market share, and the consumers are well noticed and familiar with the brand
name and its products. So they are willing to pay premium price to buy Apple
SURGXFWVUHJDUGOHVVWRRWKHUFRPSHWLWRUVSURGXFWGXHWR$SSOHEUDQGHTXLW\

i. Emotional Appeal: As stated by Clarity marketing LTD
(2005), the emotional appeal help deal a great targeting in the
FRQVXPHUVHPRWLRQV$VWURQJDQGIDPLOLDUEUDQGQDPHZLOO
act in decision making when a customer choose to buy the
same product from two or more competitors, because they will
automatically choose the familiar brand name and the most
knowing quality even if the company putting a high selling
price.

28

ii. Loyalty: If a customer had a positive experience with the

company he will automatically return to it when he want to buy
DQRWKHUVLPLODUSURGXFWRUUHODWHGSURGXFWHYHQLIWKH\GRQW
want it as a daily uses, but they will buy it according to the old
positive experience and also they will recommend your product
to other customers.
iii. Extension and Safety: When the company take a decision to
enter the market with a new product line the loyal customers
will buy it according to the reputation, familiarity, and the
positive relation between them and the company.
iv. Lower Marketing Investment: When a company has a good
reputation in the market, and its brand name are familiar with
WKHFXVWRPHUVWKH\GRQWQHHGDKXJHDPRXQWRILQYHVWPHQWLQ
the Ads. And promotion sector because they have already
NQRZQE\WKHFXVWRPHUVDQGGRQWQHHGWRSURPRWHWKHLU
products.

After the branding strategy created, the company need a further help to
stay in the front, the second step is the STP process. STP is consist of three
strategies; Segmentation, Targeting, and Positioning.
Segmentation: The market is divided into three different segments.
x

Demographic Segmentation: It is when the market is segmented on

the basis of age, gender, education, income, occupation, etc.

29

Geographic segmentation:It is when the market is segmented on the

basis of city, state, region or country.

Psychographic segmentation:It is when the market is segmented on

the basis of life style, Social class (Upper class, middle class, lower
class, blue collar, etc...), behaviours, opinions, values or ethics.
x

^

 Figure show the Apple market Segmentation

Targeting: It is the second step in the STP process, in which the company
will select a segment or series of segments to target it with the products.
And there are three methods to targeting:
1. One supplier target one segment with a single product

30

2. One supplier targets all segments with one brand and several products.
3. One supplier target several segments with several products or brands,
and each segment has its own product or brand.
Apple uses the second type of targeting, they target all segments with a single brand,
$33/(FRQWDLQVVHYHUDOSURGXFWVOLNHWKHL3KRQHL3DGL3RGDQGL0DF
Positioning: ,WVWKHWKLUGDQGWKHODVWVWHSLQWKH673SURFHVV,WVDOODERXW
perception. After the segmentation and the targeting of a market, the
marketers need to put the products in the market finally.
Apple positioned as a premium brand and price for the customers who look
for a high class relation with the company. This premium price includes all
Apple products.
Therefore Apple create a culture that has differs it from its competitors by
positioning a less price sensitive customers.

31

 

 ILJXUHVKRZWKH3V7DUJHW0DUNHW

ASSOH,QFVPDUNHWLQJPL[LQGLFDWHVKRZWKHFRPSDQ\matches its business activities

WRPDUNHWFRQGLWLRQV7KLVDQDO\VLVRIWKHILUPVPDUNHWLQJPL[SURYLGHVLQVLJKWV
about how to effectively address market conditions and the competitive landscape
through appropriate products, distribution, promotion and pricing. Apple continues to
use its marketing mix in globally expanding the business through various channels
and with a growing product mix, along with an array of promotion strategies.
 
Apple Inc. has continued to expand its product mix. This component of the marketing
PL[GHWHUPLQHVWKHRXWSXWVRIWKHEXVLQHVVRUJDQL]DWLRQ,Q$SSOHVFDVHWKH
following are the main product lines:
x

iMac

iPad

32

iPod

iPhone

Apple TV

Apple Watch

Software

As part of its product development intensive growth strategy, the company continues
to develop new products, such as the Apple electric vehicle, which is under
development through collaboration with firms like Tesla Motors.
 
$SSOHVPDUNHWLQJPL[LQYROYHVDKROLVWLFapproach to distribution, taking advantage
of different distribution channels. In general, the company uses a selective distribution
strategy, which involves some degree of exclusivity that could limit market reach.
Apple authorizes sellers to ensure control over this component of the marketing mix.
7KHIROORZLQJSODFHVDUHLQFOXGHGLQ$SSOHVGLVWULEXWLRQVWUDWHJ\
x

Apple Stores

Online Apple Store and App Store

Authorized retailers

Telecom companies

Fulfilments services
 

$SSOHVPDUNHWLQJPL[LQFOXGHVSURPRWLRQDFWLYLWLHVWKDWHPSKDVL]HWKHSUHPLXP
LPDJHDQGTXDOLW\RIWKHILUPVSURGXFWV7KHSURPRWLRQDORUPDUNHWLQJ
communications mix supports business position in reaching more target buyers. In
$SSOHVFDVHWKLVcomponent of the marketing mix includes the following elements:
x

Advertising

33

Personal Selling

Sales Promotion

Public Relations

$SSOHVPDUNHWLQJPL[LQFOXGHVDGYHUWLVLQJWKURXJKWKHFRPSDQ\VZHEVLWHDQG
Apple Stores, as well as advertising through other firms, such as technology news
sites. The company also uses personal selling in the form of Apple Store employees
who provide product-specific information in the aim of convincing store visitors to
PDNHDSXUFKDVH,QDGGLWLRQWKHFRPSDQ\VPDUNHWLQJPL[LQvolves sales promotion,
which usually happens at the Apple Stores.
 
Apple uses a premium pricing strategy. In this component of the marketing mix, the
emphasis is on how prices represent the company and its products, while meeting
FRQVXPHUH[SHFWDWLRQV,Q$SSOHVFDVHWKHSUHPLXPSULFLQJVWUDWHJ\LQYROYHV
relatively high prices. This pricing strategy helps maintain the high-end image of the
company and its products. Another effect of this pricing strategy is that Apple
products attract a smaller market share composed of people from the middle and
upper classes. Nonetheless, the company maintains profitability because premium
SULFHVHQWDLOKLJKHUSURILWPDUJLQV7KXV$SSOHVPDUNHWLQJPL[LVDOLJQHGWRWKH
FRPSDQ\VSUHPium product development strategy.
7KLV3VPL[VWUDWHJ\DUWLFOHKDVEHHQWDNHQIURPSDQPRUHFRPZLWKWKHDSSURYDORIWKHVLWH
DGPLQKWWSSDQPRUHFRPDSSOH-inc-marketing-mix-SV


So far we have also the full target market in which LWVNQRZQE\WKH3VWDUJHW
market

34

  6KRZWKH3VPDUNHWLQJPL[




Strategic HRM can be regarded as a general approach to the strategic management of
human resources in accordance with the intentions of the organization on the future
direction it wants to take. What emerges from this process is a stream of decisions
over time, which form the pattern adopted by the organization for managing its human

35

resources and define the areas in which specific HR strategies need to be developed.
HR strategies will focus on the specific intentions of the organization on what needs
to be done and what needs to be changed.
Also the purpose of HR strategies is to guide development and implementation
programs. They provide a means of communicating to all concerned the intentions of
the organization about how its human resources will be managed. They enable the
organization to measure progress and evaluate outcomes against objectives.

1) Overarching HR strategies:
Overarching strategies describe the general intentions of the organization about how
people should be managed and developed and what steps should be taken to ensure
that the organization can attract and retain the people it needs and ensure so far as
possible that employees are committed, motivated and engaged. They are likely to be
expressed as broad-brush statements of aims and purpose, which set the scene for
more specific strategies.
2) Specific HR strategies:
- Talent management KRZWKHRUJDQL]DWLRQLQWHQGVWRZLQWKHZDUIRUWDOHQW
- Continuous improvement providing for focused and continuous incremental
innovation sustained over a period of time.
- Knowledge management creating, acquiring, capturing, sharing and using
knowledge to enhance learning and performance.
- Resourcing attracting and retaining high-quality people.

36

- Learning and developing providing an environment in which employees are

encouraged to learn and develop.


A healthy organizational structure allows its employees to focus on producing quality
products and services. Effective organizations provide opportunities to its employees
to develop new skills. This allows the staff to constantly improve business operations
and ensures that the company maintains a competitive edge required to thrive in a
dynamic global marketplace. Creating a healthy organizational structure begins by
DVVHVVLQJ\RXUFRPSDQ\VQHHGV6XVWDLQLQJWKHVWUXFWXUHLQYROYHVUXQQLQJHYHQWVDQG
programs to maintain a productive workplace.

1) Facilitates Specialization
Organizational structure facilitates division of work since each boss has specialized
knowledge on his field of work. He has better and accurate knowledge to guide his
subordinates.
2) Control Over Resources
This can only be done if an organizational structure is clearly defined and there is
control of employees through an effective organizational structure.

3) Easier Communication

37

This simplifies the work of executive employees so that they are not overwhelmed by
the activities of the firm
4) Better Employee Performance
Organizational structures clearly show various jobs to be performed by employees
and which supervisor will manage them


The Management Information System is a collection of Men, tools, procedures and
software to perform various business tasks at various levels in the organization. Many
organizations have separate MIS departments which are involved in maintaining
records, performing transactions, report generations and consolidation of the
important information which will be supplied to the various levels of the
management. MIS primarily serves the functions of controlling and decision making
At the managerial level, MIS has three basic levels: operational, middle management
and top management where the information is passed from bottom to top.
7KDWVZK\LQWRGD\VRUJDQL]DWLRQV+XPDQ5HVRXUFHLVFRQVLGHUHGDVRQHRIWKHNH\
resources of business organizations. The transaction processing layer of MIS in
human resource function deals with routine activities like attendance recording and
payroll calculations. The operational level activities also include maintaining the
employee records which is used as a basis for strategic layers. With the growing
importance of human resource management and increasing size of the organizations,
maintenance of employee related data and generating appropriate reports are the
crucial aspects of any organization.

38

Therefore more and more organizations are adopting computer based human resource
management systems (HRMS). This paper is an attempt to design and implement an
MIS for the business organization and show how it helps in taking management
decisions related to management function especially for the top management.

information are an essential tool for managers in the recruitment and evaluation of
human resources in organizations. Since they support the goals and objectives of the
organization, It importance lies on personnel administration operational programs,
including employee record keeping, budget control, compensation, benefits
management, and government reporting.
Strategic HR planning is an important component of strategic HR management. It
links HR management directly to the strategic plan of your organization.
Strategic HR planning is also important from a budgetary point of view so that you
can factor the costs of recruitment, training, etc.
Apple has developed an online recruitment system that allowed the company to offer
special services to their customers, by training a group of people around the globe
with different languages to offer these services for example solving apple account
problems.
With low cost apple manages to relief the pressure on their HQ, by recruiting local
that deals with local issues.

1. DEFINE BUSINESS CONTEXT.
Define the business environment. Recognize and define expectations of key
stakeholders to face business challenges.
2. ARTICULATE HR VISION.

39

Articulate a vision of the HR function that can be shared inside the function to excite
HR professionals. Who we are, what we do, and why we do it.
3. SPECIFY DELIVERABLE OUTCOMES.
Define the deliverables, outcomes, or guarantees from doing good HR work
4. MAKE HUMAN RESOURCE INVESTMENTS.
Make investment choices on critical practices like cost-benefit.
5. CREATE HR GOVERNANCE AND STRUCTURE.
Identify who can do the work (HR, line managers, strategic vendors, staff managers).
Create a responsibility grid for that must do the work.
6. PREPARE ACTION PLANS
Preparing for a specific action plan for accomplishing HR priorities with detailed task
and responsibilities.
7. ENSURE HR COMPETENCIES.
Identifying critical HR competencies needed to meet the HR plan. Prepare
improvement plans that ensure HR professionals to accomplish the business plan.
HRIS stand for: Human Resource Information System
Human Resources Information Systems is an integration of HRM and Information
Systems (IS).
HRIS or Human resource Information system helps HR managers perform HR
functions in a more effective and systematic way using technology. It is the system
used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent
LQIRUPDWLRQUHJDUGLQJDQRUJDQL]DWLRQVKXPDQUHVRXUFHV
The HRS is a part of management information system (MIS) which include
accounting, production, and marketing, etc.

40

Application of HRIS:
HRIS can be applied in the following areas of HRM:HR planning, staffing, applicant
recruitment and tracking, employee data base development, compensation, Pay roll,
salary planning, Developing an innovative organizational structure , developing IT.



Also there is a type of marketing in the HR department in any organization, and also
in Apple in which they try harder to put their employees in the perfect environment so
they can work much easier and harder to attend the needed goals.

 7KH3VFRQFHSWRI+R.


41

  Apple Executive Team

1. Tim Cook : Tim Cook is the CEO of Apple and serves on its Board of
Directors and his was Apple's Chief Operating Officer and was responsible for
DOORIWKHFRPSDQ\VZRUOGZLGHVDOHVDQGRSHUDWLRQVLQFOXGLQJHQG-to-end
PDQDJHPHQWRI$SSOHVVXSSO\FKDLQVDOHVDFWLYLWLHVDQGVHUYLFHDQGVXSSRUW
in all markets and countries.
2. Albert Gore: Former Vice President Al Gore is co-founder and chairman of
Generation Investment Management. He is a senior partner at Kleiner Perkins
&DXILHOG %\HUVDQGDPHPEHURI$SSOH,QFVERDUGRIGLUHFWRUV*RUH
spends the majority of his time as chairman of The Climate Reality Project, a
non-profit devoted to solving the climate crisis.

42

3. Andrea Jung: Is the President and CEO of Grameen America. Ms. Jung
joined Grameen America with the goal of scaling the organization to solve
economic issues for women and their families across the country. Ms. Jung
ranked consistently among the top leaders on lists including Fortune
magazine's "Most Powerful Women in Business," Forbes magazine's "Most
Powerful Women in the World," and Financial Times' "Top Women in World
Business."
4. Ronald D. Sugar: former Chairman of the Board and CEO of Northrop
*UXPPDQFRUSRUDWLRQZDVDSSRLQWHGWR$SSOHV%RDUGRI'LUHFWRUV'U
Sugar will serve as the Chair of the Audit and Finance Committee. 5RQLVDQ
engineer at heart, who then became a very successful business leader. We are
YHU\H[FLWHGWRZHOFRPHKLPWR$SSOHV%RDUGVDLG6WHYH-REV$SSOHV
&(2,QDGGLWLRQWRKDYLQJEHHQWKH&(2RIDKLJK-tech Fortune 100
company, Ron has a Ph.D. in engineering and has been involved in the
GHYHORSPHQWRIVRPHYHU\VRSKLVWLFDWHGWHFKQRORJ\
5. Sue Wagner: founding partner and director of BlackRock, has been elected to
$SSOH
VERDUGRIGLUHFWRUV%LOO&DPSEHOOWKHERDUGVORQJHVW-serving
member, is retiring after 17 years of service.


The BOD has the right to elect directors, who have a legal duty to represent the
shareholder, and to protect their interests. The board of director has an obligation to
approve all decisions that might affect the long run performance of the corporation.
This means that the corporation is fundamentally governed by the board of directors
overseeing top management, with the concurrence of the shareholder.
The board of director has five responsibilities, listed in order of importance:

43

1- Setting corporate strategy, overall direction, mission and vision.

2- Hiring and firing the CEO and top management.
3- Controlling, monitoring or supervising top management.
4- Reviewing and approving the use of resources.
5- Caring for shareholder interests.
'LUHFWRUPXVWDOVRHQVXUHPDQDJHPHQWVDGKHUHQFHWRODZVDQGUHJXODWLRQVVXFKDV
these dealing with the issuance of securities, insider trading and other conflict of
interest situations.


Apple is a Multi-National Corporation that affects and can be affected by the market
environment. As you can see from this project, and after we study the formulation of
the strategies by Apple and how they implement them, you can conclude that Apple
use the most knowing strategies in the world that also available in the hands of other
firms, but they differ from other competitors by their implementation strategy. Apple
has a different view toward the strategies available, they doing things in a way that
LWVGLIILFXOWWRRWKHUFRPSHWLWRUVWR stand in the market face to face with Apple.
Apple is one of the leaders industries in the high-tech market that compete with other
01&VLQWKHZRUOGVXFKDV6DPVXQJ6RQ\0LFURVRIWDQGWRVWD\LQWKHOHDGHUVKLS
they must continue formulate strategies for the long and short run to avoid the
eliminating from the market.

Here are some problems and recommendations we see that Apple must focus on them:

44

1. Cost skimming strategy. Apple uses the skimming strategy in which

they affect negatively their sales in the market and limit their
customers to specific people only.
2. Imitating Product. The firm faces the significant threats of aggressive
competition and imitation, which are major challenges affecting the
industry. A stronger patent portfolio along with continuous innovation,
ensure the competitive advantage of Apple products even when
competitors try to imitate them.
3. Scale up its production capabilities. Every time Apple releases a new
gadget, customers can't get it. This is a consequence of Apple's
legendarily precise just-in-time manufacturing system.

45


Introduction:
x

http://www.managementstudyguide.com/strategic-management-articles.htm
In: 06/11/2015

Body Paragraph:
x

http://www.managementstudyguide.com/strategy-formulation-process.htm
In:08/11/2015

http://www.managementstudyguide.com/strategy-implementation.htm In:
08/11/2015

http://www.managementstudyguide.com/strategy-formulation-vsimplementation.htm In: 09/11/2015

http://panmore.com/apple-inc-swot-analysis-recommendations In: 13/11/2015

http://www.strategicmanagementinsight.com/products/swot-analyses/appleswot-analysis-2014.html In: 14/11/2015

In: 14/11/2015

In: 14/11/2015

http://www.marketingminds.com.au/apple_branding_strategy.html In:
14/11/2015

http://www.slideshare.net/sweetNsourr/dissertation-25988438 In: 27/11/2015

http://myndset.com/2014/09/23/apple-brand-marketing-strategy/ In:
27/11/2015

https://burnetteb.wordpress.com/2015/06/25/apple-inc-objectives-andstrategies/ In: 27/11/2015

http://panmore.com/apple-inc-marketing-mix-4ps In: 27/11/2015

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https://prezi.com/lo_cafge3ole/apple-implementation-plan/ In: 29/11/2015

http://www.studymode.com/course-notes/Cost-Leadership-Strategy-Of-Apple1349263.html In: 29/11/2015

http://techland.time.com/2011/07/01/why-competing-with-apple-is-sodifficult/ In: 10/12/2015

http://panmore.com/apple-inc-swot-analysis-recommendations In: 10/12/2015

By David Ulrich In: 17/12/2015

In: 17/12/2015

In: 17/12/2015

Recommendation:
x

http://www.wsj.com/articles/SB1000142405270230447050457916150239858
1642 By FARHAD MANJOO

Oct. 27, 2013 9:29 p.m. ET

In: 20/12/2015

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