Business Analysis of Apple Inc.

Running head: BUSINESS ANALYSIS
Business Analysis
Name of the Student
Name of the University
Author’s note

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Table of Contents
Introduction................................................................................................................................2
Business Analysis definition......................................................................................................2
Purpose of business analysis......................................................................................................3
Discussion..................................................................................................................................3
Organisation Analysis................................................................................................................3
Introduction to Apple.................................................................................................................3
Brief strategic history of the company.......................................................................................4
Identification of company’s strategic choices, product portfolio using BCG matrix................5
BCG matrix of Apple.................................................................................................................5
Importance and strength of HR function using Mckinsey’s 7S and Armstrong models...........5
Sensitivity Analysis..................................................................................................................17
Analysis of Business model in-depth.......................................................................................19
Competitive Analysis...............................................................................................................20
Competitive Position................................................................................................................21
Summary..................................................................................................................................23
Financial Analysis....................................................................................................................23
Identify Industry KPI’S to assess suitability of strategies.......................................................31
Trend Analysis.........................................................................................................................32
A brief summary of charts highlighting the points..................................................................33
Summary..................................................................................................................................34
Key performance measurement of Apple:...............................................................................35

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Camel framework.....................................................................................................................35
Conclusion................................................................................................................................35
Recommendation Letter...........................................................................................................38
SAF analysis.............................................................................................................................38
Limitations...............................................................................................................................41
Appraisal of limitations............................................................................................................41
Cost benefit Analysis...............................................................................................................41
PEST........................................................................................................................................42
Critique of the Five Forces.......................................................................................................42
Balance scorecard.....................................................................................................................42
Critique of the financial ratios..................................................................................................42
Modelling.................................................................................................................................42
References................................................................................................................................48
Introduction
Business Analysis definition
Business analysis can be termed as a research conducted on a particular business or an
organisation in order to find out the needs and demands of the business. Necessary solutions

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are provided in order to fulfil such needs (Jenkins and Williamson 2015). Solutions can vary
depending upon the type of business. Some solutions may include an improvement in the
operations of the business or development of strategies and policies for further growth and
development of the business. Further approaches to improvement of business systems can be
investigation of business processes by having a complete picture of each segment of the
business. These segments include structure and staff development, process redesigning and
development of IT for software based companies.
Purpose of business analysis
Business analysis is required for every business as it helps in identification of
problems which are residing inside the organisation in relation to its business. The problems
identified would be required to get solved through finding suitable solutions. The process is
useful as it considers different processes and techniques which helps in understanding the
organisational structure, operations and regulations (Fleisher and Bensoussan 2015). It also
required providing necessary solutions in order to judge the current position of the company
and how it should improve its current status for reaching its goals. In a broad outline, the
analysis provides a detailed information given by the internal and external people influencing
the organisation. These people include the customers, employees, different IT professionals
and executives.
Discussion
Organisation Analysis
Introduction to Apple
Apple Inc. is a company which is involved in manufacturing of different electronic
products and computer hardware, software. It is a multinational company which has its
headquarters in Cupertino, United States and California (Apple.com 2019). The hardware

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products of the company include various items such as smartphones, Tablets, iPad,
smartwatch, Digital media player, TV, Mac personal computer and others. The company was
founded in April 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne.
Brief strategic history of the company
A brief strategic history of the company including different dates and timelines are
provided below (Apple.com 2019).
1976 – Steve Jobs and Steve Wozniak founded Apple Computer.
1977 – The first ever Personal computer was released by Apple
1980 – First Initial Public Offering was released by Apple and the company turned into
public. Shares worth $28.70 were sold by the company.
1985 – Steve Jobs was forced to move out from the company. He then started his own
venture which was named as NeXT.
1987 – The first website of Apple with the domain name Apple.com was released.
1996-1997 – Apple was competing very hard with Microsoft and in order to overcome this
hardship, Steve Jobs was brought back into the company by buying of shares of NeXT by
Apple.
2001-2003 – In 2001, two important products of Apple were released this year. One was Mac
OS X and another was iPod which was the first portable digital audio player. In 2003 the
company iTunes which was a major hit.
2007 – The first iPhone was introduced by Apple which was a major success for the
company.

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2014-2015- In 2014 Apple introduced Apple pay which was an extremely creative product
for the consumers as they would be able to store the information of their credit card through
Apple pay in their Apple account.
Identification of company’s strategic choices, product portfolio using BCG matrix
BCG matrix is a very important analysis which segregates the company’s business
portfolio into four important categories. These categories are Dogs, Stars, Cash Cows and
Question Mark. These categories relate to the rate of growth of the particular industry as well
as the market share of the business (Mohajan 2017).
BCG matrix of Apple
Cash Cows – The important Apple products that come under this category are Apple
iTunes and Apple MacBook with iMac’s. Through this products the company has touched the
niche market of customers who are brand loyal (Khan, Alam and Alam 2015).
Stars – The star product for Apple is their iPhone as it is the product of highest sales
which has got the maximum customer demand (Khan, Alam and Alam 2015).
The distinct features which make the iPhone separable from its competitors are its
design and technology. The other two products falling in this category can be Apple iPad and
Apple Smartwatch.
Question Mark – Only one product of Apple is relevant for this category which is
Apple TV. It is generating money but is not reaching a certain height as other products.
Dogs - The product which can be relevant for this category is Apple iPod which was
a major hit in its initial stages and but failed eventually due to slow market growth. Apple
iPad and Apple smartwatch can also be put into this category. These products at later stages

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failed to deliver expected results which compelled the company to withdraw its further
investments in these products.
Importance and strength of HR function using Mckinsey’s 7S and Armstrong models
McKinsey 7-S Framework of Management issues Applied to Company
HR Management
Issues
How it Affects the Company Strength Weakness
Strategy Strategy of the company is to
target the niche market which is
absolutely based on selective
customer demand (Ravanfar,
2015).
Brand Loyalty
in this case is
the strength of
the company.
In this case the
weakness can
be attributed to
less customer
reach as it is a
niche market.
Structure The structure proves to be
functional for the company as it
operates as a network in different
companies (Ravanfar 2015).
The structure
is fruitful for
the company.
No weakness
can be found
in this
category.
Systems The important technologies in
which the company is dependent
are transaction Processing
systems, business intelligence
and knowledge management
systems.
The customers
see these
tightly
controlled
software as
the strength of
the company.
The closed
nature of the
Apple’s
technology
compels it to
be in every
business for
competing

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with its
competitors.
Staff The team of effective managers,
supervisors as well as CEO of
Apple counts to a total of 49,400.
A large
workforce
increases
productivity
and leads to
growth of the
company.
Management
of such a large
workforce may
lead to
disorganisation
of the structure
and operation.
Skills Skill represents the core
competency of an organisation
and for Apple it is its Research
and development department.
Due to such
core
competencies,
the company
is unique and
is superior to
its
competitors.
Some of the
processes of
the company
are no unique
and similar to
its industry.
Style Apple has a leadership style
which is achievement oriented.
Properly
communicated
goals,
Consistent
deadlines.
Reduces the
chances of
employee
feedback, less
chances of
employee
welfare.
Stakeholders Apple is presently devoted in Innovation No such