Business Strategy for Apple: Impact of Macro Environment, Internal Analysis, and Strategic Planning

This report analyzes the impact of macro environment on Apple's business strategy, internal analysis of Apple using SWOT and VRIO frameworks, evaluates competitive forces using Porter's Five Forces model, and devises a strategic management plan using Ansoff Growth matrix.

Business
strategy on the
project
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
Applying appropriate frameworks analysis the impact and influence of the macro environment
of Apple and its strategies............................................................................................................1
TASK 2............................................................................................................................................3
Analyse the internal environment and capabilities of Apple using appropriate frameworks......3
TASK 3............................................................................................................................................6
Applying porter's five forces model evaluate the competitive forces of a given market sector
for Apple......................................................................................................................................6
Covered in PPT............................................................................................................................6
TASK 4............................................................................................................................................6
Applying a range of theories, concepts and models, interpret and devise strategic planning for
a given Apple...............................................................................................................................6
Design of strategic management plan that has tangible and tactical strategic priorities.............7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business strategy is defined as combination of all decision and actions taken by management
for the purpose of running their business and maintain productivity. Strategic management
involves formulation and implementation of major goals and initiatives which is taken by
management on behalf of shareholders. For each organization it is important to have strategic
planning as it understand the requirement and allocate work between employees that supports to
develop organizational productivity (Hoffmann, Ramirez, and Lecamp, 2018). The present
report is about Apple which was established by most innovative thinker of the decade Steve jobs
and Stephen Wozniak in the year of 1976. This is well known organization that use new
technology for introducing new products, helps to increase the organizational productivity. One
of the innovative product launched by Apple company was newton in year of 1993. The
innovative strategic matrix permeated the company revolutionary image that leads to boosts the
revenue and peaks their success. The report involves analysis of external and internal factor that
can affect decision-making of given firm and models that can help to improve business
performance.
MAIN BODY
TASK 1
Applying appropriate frameworks analysis the impact and influence of the macro environment of
Apple and its strategies
The strategic market is defined as practice of analysing the environment and develop
knowledge about particular topic. This is important for industry to different forces for analysing
business condition and making right decisions. Apple using PESTLE Analysis to analyse the
impact and influence the macro environment on business strategy.
PESTLE ANALYSIS
PESTLE analysis is a tool that uses by organization for analysing business operation and
managing all function effectively. Before staring any industry there is need to focus over external
environment for making right business decisions (Tomiyama, et. al., 2019). The PESTLE
Analysis of Apple company is defined below:
Political factor- This factor is related to government legislations and laws that needs to
follow while operating the business. Having right policies and regulations support industry to
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operate their business. As Covid-19 occurred in whole country where government have reduced
the tax rates that supported Apple to generate high revenues by running business effectively.
Apple uses the political lobbying to influence the political policies and external environment
which provide the positive impact on its product. On the other side, changing in government of
US could be challenging for selected organization to regulate its business as it has to follow new
political policies in import and export its innovative products (Diderich, 2020);
Political lobbying graph
(Source: Apple PESTEL Analysis, 2021)
Economical factor- This factor is related to economy by involving inflation rate, interest
rate, demand and supply of products. Apple is managing is functions by considering changes in
price of international currency and labour rate. Apple has set up its manufacturing unit in China
as having lower labour cost that can help organization to manufacture cost effective and better
quality of products. This organization is planning to set more plant in different country by
searching low labour cost that impacts positively on operation. Oppositely, increasing interest
rate in country where Apple is set up could impacts negatively as low production.
Social factor – This factor is related to social aspects that involves demand and
behaviour, lifestyle, changing trends and others that focused by selected organization to
influence operation. Apple is focusing over changing demand and buying behaviour of
customers that helps to maintain operation (Bhatia, and Campo-Engelstein, 2018). On the other
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side, not satisfying customers and keeping higher prices of their innovative products could be
challenging to regulate their business.
Technology factor – The factor states technology and new products that can help to
influence number of customers and develop organizational performance. The operation and
business activities of Apple influenced positively as population is drastically shifting towards
technology where company is launching new products every year. This could affect operation
negatively due to adopting technology that increase cost of company while launching new
products (Omer, 2019).
Legal factor – This factor imposes regulations and laws on each industry that is
operating business in changing environment. The US government imposes equality act, data
protection/privacy, consumer protection and others that supports to develop organizational
productivity. Apple is managing its operation and activities by following the US regulations. On
the other side, not following the rules and data leaked by members to third party that could be
challenging for Apple to operate their business functions.
Environmental factor- The environmental factor is considered to environmental aspects,
sustainability, suitability and others that needs to follow for running business. Apple is using the
recycling techniques to make the use of old and non-working device. The company headquarter
is completely rely on the solar energy that impacts positively on business operation. On the other
side, using heat equipment and increasing pollution while manufacturing could be challenging
for operation (Tomiyama, et. al.,, 2019).
TASK 2
Analyse the internal environment and capabilities of Apple using appropriate frameworks.
The internal environment involves those factor, having direct impact on business operation
and its activities. Apple is US based organization that conduct internal analysis by using different
model:
SWOT Analysis – This is a framework that uses by organization for the purpose of
conducting environment analysis and came to know strength that supports to develop
organizational productivity (Slack, and Brandon-Jones, 2018). The SWOT analysis of Apple is
defined below:
STRENGTH WEAKNESS
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 Apple is one of the largest brand in
technology that manufacture different
technological products.
 The innovative approach used by
company that always get success by
getting more customers.
 The products providing by Apple is
unique and different features that
influence number of people and
develop organizational productivity.
 Apple is listed as high prices product
due to having high brand reputation and
image in changing environment that
limits customers to make buy options.
 The organization is using Apple IOS
system which is not friendly and create
issue of connectivity that influence
activities and functions negatively
(Diderich, 2020).
OPPORTUNITIES THREATS
 Apple is focusing over market
management by using advertisement
tools such as FACEBBOK, GOOGLE,
INSTAGRMA, TIKTOK and others
that can help to influence number of
people and increase the sales.
 The customer preference is shifting
from normal brand to high brand that
supports to develop business.
 Public is demanding for iCloud storage
that supports to brand to increase
organizational sales.
 Increasing competition in apple music
like Spotify, amazon music, and wink
music has created threat for
organization.
 Changing in currency rate is also threat
for company that directly affects
business industry.
 Continuous changes in product base
that increase cost for Apple.
VRIO Analysis
VRIO is defined as strategic tool that used by organization to evaluate the effectiveness
of company and developing performance. The aim of organization is to establish a business in
changing environment and run it properly. Apple is using VRIO analysis by taking all resources
in consideration and getting competitive advantages (Whittington, et. al., 2020).
Resources Valuable Rare Inimitable Organised
Innovative product Yes No No No
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Customer support Yes Yes No No
Technology Yes Yes Yes No
Goodwill Yes Yes Yes Yes
Valuable – This states company’s resources that are valuable for running business
effectively. Apple is largest brand in technological products that can help to influence number of
people. In relation Apple, Innovative product, Customer support, Technology, and Goodwill
is considered as valuable product that used by management to increase operation and develop
productivity. Innovative products and technology uses to launch new product and goodwill uses
to maintain higher brand.
Rare – This means sources which are available rarely for others and helps to operate a
business effectively. In relation to Apple, customer support is considered under rare resources as
it maintains higher brand with the increasing demand of product and having uniqueness that
supports to increase organizational sales and productivity (Bhatia, and Campo-Engelstein,
2018).
Inimitable – This showcase resources which are inimitable and influence people to make
buying decisions. Technology is key resource for each organization that uses to introduce new
products and services in changing environment. Advance technology is used by Apple which is
inimitable for others, that helps to increase organizational sales and profitability. The
management of such organization keep high prices due to offering better quality and design.
Organised – This states proper optimization of resources which are available in market.
In relation to Apple, goodwill is organising by management by understanding changing
environment and introducing products accordingly. This can help to develop organizational
productivity and profitability (Al-Kilani, 2020).
From the above analysis it can be defined that Apple is conducting internal environment
analysis by stating strength, weakness and opportunities. This can help to bring changes in their
existing products by using new technology and innovation that increases business activities.
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TASK 3
Applying porter's five forces model evaluate the competitive forces of a given market sector for
Apple
Covered in PPT
TASK 4
Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given Apple.
Ansoff Growth matrix – This can be explained as growth matrix which used by
organization for the purpose of analysing all functions and developing growth opportunity. The
management of Apple, uses new technology and innovation to introduce new products which can
help to maintain higher performance. This model is explained below:
Market Penetration: This strategy is related to continuing sales by providing existing
products in existing market. Apple can be use market penetration planning for increasing sales
by providing existing products at lower prices that could influence number of customers and
develop organizational productivity (Ansoff, et. al., 2018).
Product development: This planning is connected to product and services which is
providing by organization and influence customers to make buying decisions. Apple is
innovation based organization that can use this strategy through new technology by conducting
research and introduce products which can help to maintain higher performance.
Market development: This strategy is related to increasing sales by entering in to new
market and building new customers. To enter in new market could be opportunity for Apple to
sale its existing products. This can help to operate a business effectively.
Diversification: This strategy is the combination of new products and market
development that uses by companies for operating their business in changing environment.
Apple can use diversification strategy by introducing new model and enter in new market which
could help to develop organizational productivity and performance (Lohrke, Mazzei,and
Frownfelter-Lohrke, et. al., 2021).
From the above Apple is adopting differentiation strategy as it conducts market research
and introduce new products in existing as well as new market that influence number of
customers and provide competitive advantages in changing environment.
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Design of strategic management plan that has tangible and tactical strategic priorities
A strategic management plan
A strategic plan is defined as important aspects for each organization which used by
management for introducing something new and developing business performance. The aim of
business industry is to generate high revenues by generating sales and managing all functions.
The management of each organization should be understand goals and allocate activities In
relation to Apple, management has formulated a strategic management plan for developing its
organizational sales and performance that is defined below:
Executive Summary – Apple is largest brand in US where it sales different products by
using new technology and process. The organization is adopting Differentiation strategy by
introducing new product in new market would help to accomplish the business goals. This can
help to develop the organizational performance by managing all functions and activities
effectively.
Vision - The vision of Apple is “to make the best products on earth, and to leave the
world better than we found it.”
Mission - To bring the best personal computing products and support to students,
educators, designers, scientists, engineers, businesspersons and consumers in over 140 countries
around the world.”.
Objective -
 To bring the new technology and innovation in their sector every year.
 To make great products and services that enrich people’s lives within 2025.
 To increase the profitability by 70% as it focuses on customer’s demand and touch
points.
 To attain the higher position in competitive market and develop their business.
Strategy - Apple, is planning to adopt following strategies in order to reach the targeted
goals such as:
 Differentiation strategy – Apple’s management uses this strategy to introduce new
model of phone and other electronic products along with services that can help to
increase organizational sales (Aliekperov, 2021).
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 Extensive marketing – The marketing management of Apple plays important role as it
conducts environment analysis and use marketing channel such as social media, digital
marketing, online, and websites for influencing customers increase customer base.
 Higher brand extension – Apple is having high brand position in competitive market
and its planning to enter in more countries along with its unique product that can help to
increase sales (Yun, Lee, and Aoshima, 2019).
STP Approach: This tactic is uses by Apple for targeting the specific areas and
managing the activities that are:
 Segmentation – Apple is segmenting the customer group on the basis of
geographical aspects where it launches new products at different places. This can
help to increase organizational sales and productivity.
 Targeting – Apple is targeting 15 to above years’ people who wants better brand
and quality of products (Zhu, et. al., 2018).
 Positioning – By offering good quality and brand of product Apple is leading
premium position in market that can help to develop business performance.
Tactics - Tactics are using by Apple for operating their business and maintaining good
performance by launching IPhone 14plus. For this, it uses marketing mix as tactics such as:
Product Apple is launching 14+ IPhone by considering best quality and
design that will influence number of customers and develop
performance.
Price The organization is adopting premium pricing strategy where it
charge higher prices from their customers (Dzhandzhugazova,
2019).
Place The products will be launch at all places where it has stores that
would help to increase organizational sales.
Promotion Apple is using social media, digital marketing, You tube, press
media and print media for promoting its new product and
services.
Physical evidence The features providing by Apple is unique that will help to
influence customers and increase sales.
Process In selling and managing customer base it uses website, online
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shop process that helps to reach targeted customers
People The people who is involve in organizational working are
finance, marketing, sales, operation, and other people that
supports to run business effectively.
Financial Budget – To conduct market research and launching new products a financial
budget is being prepared by management that is defined below:
Particulars Amount ($)
Research and development $ 5000
Manufacturing new product $ 20000
Marketing activities $ 9000
Sales and distribution $ 8000
Total $ 32000
Evaluation and implementation – All activities and performance in relation to
marketing plan of Apple will be measure by using Benchmarking and KPI tool that would help to
implement the all activities regularly and under the budget so that productivity and profitability
can be maintain. This will help to analysis financial and non-financial performance and
formulate plans that can help to operate business (Mazzarol, and Reboud, 2020).
CONCLUSION
From the analysis of above report document, it can be concluded that the strategy
management plays an major role in the given company's operation. The frameworks and models
succours the company to discover the inner as well as external factors which affecting its
functioning. The given strategic management derives the capability and strength of the chosen
company which can be useful in the upcoming projects. In addition to the presented discussion, it
can be said that given company used porter's generic model that derived them with benefit to
focus on their effective or productive cost and differentiation strategies.
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strategic management. Springer.
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Yun, B. S., Lee, S. G. and Aoshima, Y., 2019. An analysis of the trilemma phenomenon for
Apple iPhone and Samsung Galaxy. Service Business, 13(4), pp.779-812.
Zhu, Z., Jia, Z., Peng, L., Chen, Q., He, L., Jiang, Y. and Ge, S., 2018. Life cycle assessment of
conventional and organic Apple production systems in China. Journal of Cleaner
Production, 201, pp.156-168.
Dzhandzhugazova, E. A., and et.al., 2019. Innovative activity as a tool for the development of
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Aliekperov, A., 2021. Creating Business and Corporate Strategy: An Integrated Strategic
System. Routledge.
Mazzarol, T. and Reboud, S., 2020. Planning, business models and strategy. In Entrepreneurship
and Innovation (pp. 191-225). Springer, Singapore.
Whittington, R., Regnér, P., Angwin, D., Johnson, G. and Scholes, K., 2020. Exploring Strategy
Text and Cases. Pearson UK.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
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2020) (Ansoff, et. al., 2018) (Lohrke, Mazzei,and Frownfelter-Lohrke, et. al., 2021) (Yun,
Lee, and Aoshima, 2019) (Zhu, et. al., 2018)(Dzhandzhugazova, 2019) (Aliekperov, 2021)
(Mazzarol, and Reboud, 2020) (Whittington, et. al., 2020) (Slack, and Brandon-Jones, 2018)
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Online
Apple PESTEL Analysis, 2021. [online]. available at: <https://research-methodology.net/Apple-
pestel-analysis-4/>
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