Corporate Strategy, Governance and Ethics

This report provides a critical analysis of Apple Inc. in terms of its products, markets, divisions, and subdivisions. It explores the strategies and techniques used by Apple to relate its competencies to its business environment. The report also discusses the social, ethical, environmental, and legal issues impacting Apple's business.

Corporate Strategy,
Governance and Ethics

Introduction
In today’s business world, it has become hard for a company to develop an effective
corporate business strategy without ethical and other business related concerns. In order to
sustain within the market, it is pretty much required by companies to focus among different
needs and requirements, which can easily be fulfilled with the help of different elements like
developing an effective corporate strategy(Rothaermel, 2016). Specifically, it has become vital
for business organisations to focus on different ethical considerations as it leads the company to
conduct business without taking any sort of risk or put negative impact upon society as well.
Away with this, in this report organisation that has been taken into consideration is Apple,
Basically, it is an American company that is providing its products and services to large
customer base. Head office of this organisation is located in Cupertino, California. This
organisation is consider in one of the largest four innovation organisation such as Microsoft,
Amazon, Google. Also, this report will focus among different areas like products, markets,
divisions and subdivisions of Apple. Including this, company that consider to its capabilities and
competences to its surroundings via its tactic is also being mentioned in this report. Lastly, how
company is able to successfully manage and resolve tensions through the corporate
responsibilities as well as enhancing maximising values shareholder is also going to be
presented.
Main Body
Critical analysis of the specified organisation (products/services, markets, divisions and
subdivisions).
Situated in Cupertino, California, Apple Inc. is an American worldwide organization that
rules the technology industry. It is engaged with the planning, creating and selling of electronic
devices, computer programming and online administrations. The all out yearly salary of Apple is
assessed to be $229 billion for 2017. Apple has an incredible level of brand reliability and been
continually appraised as the most well-known brand. Despite the fact that it is highly criticized
for its workforce practices of its providers, condition and creation process as well as the
wellspring of raw materials. Therefore, if it is critically analyse two then company is at a good
position but it is also needed by the company to keep on developing a range of innovative
products in order to sustain in the market for a longer period of time (Johnson, 2016).

Products offered by Apple: Specifically, there are ample number of products offered by
Apple and some of these are: iPhone 11 pro, iPhone 11, iPhone XE, iPhone XR also it offers
electronic gadgets like iPhones, iPads, personalcomputers, iPods, Apple Watch and other media
machines, all working on iOS. The software like the Safari internet, iTunes media player,
browser, iLife as well as iWork inventiveness or productivitysuites all work on macOS and iOS.
ITunes Store, the iOS App Store, Apple Music and iCloud areall instances of its online
administrations.Therefore, it can easily be said that it will be required by organisation to keep on
developing effective and innovative products so that company can sustain in the potential market
of electronic gadgets at international level.
Markets:In present context, Apple organisation consists of 5 different large markets in
which it is performing its operations and these are America, Europe, China, Japan and Asia
Pacific. If it is talked about American continents then this is considered to be the important
market for products and services offered by Apple as it generates around 36% of company’s total
net sales which is around 65.232 billion dollars. On the other hand, if it is talk about Europe then
it is considered to be the 2nd generating sales market for Apple organisation as it delivers 22% of
the net sales, which is around 40.929 billion dollars. China, is also one of the growing market for
Apple products because it worth around 29.8 46 billion dollars net sales every year.11 person of
the net sales within amount of 14.9 82 billion dollars considered to be as a fiscal year net sales
done by Apple organisation in Japan and lastly if it is talked about Asia-pacific then 7% of the
total net sales is considered to be done in this region by Apple.But, if it is critically analyse to
them in order to sustain in the market for a longer period of time than the expected time frame
then it will be required by board of directors to expand their business operations area so that to
beat other competitors within the technological industry (Müller and et. al., 2016).
Divisions and subdivisions of Apple:apple's divisions are based on different continents
like south and North America, Europe, Asia Pacificwhere company has different offices but it is
is run from a particular area i.e. headquarters because company takes decisions and there only
and it is all implemented among different divisions (Adhariani, Sciulli and Clift, 2017). On the
other hand, if it is talked about the subdivisions when the company is specifically consists of
different business functions like IT department, sales, marketing, operations, research and
development, and many more others where all of these works on a particular goal that is to
improvise the profit margins for the company to offer in customers with number of innovative

products and services but if it is critically analyse then company would also require to focus
among different areas as well and to divide the different areas among small segments as it will
help to sustain in the market and to enhance both productivity and profitability in much effective
and efficient manner.
Critical analysis of the organisation’s environment.
In order to critically analyse the Apple's business environment, SWOT analysis has been
performed which will help in looking among different areas like strength, opportunities, threats
and weaknesses. Therefore, SWOT Analysis of Apple Inc ispresented underneath:
Swot Analysis:
Strengths:
 The largest brand - Apple is in first place for its seventh stable year with Inter brand -
with a variety of products that is estimate of $ 234 billion. Additionally, Apple is one of
the strongest carriers in terms of modified push PCs and stylish promotional devices. It
has a large number of undisclosed clients with trusted extensions (Adhariani, Sciulli &
Clift, 2017).
 Advanced technology: Apple was the first to give free rein to the most imaginative
things that changed the world (iPhone, iPad). So far, Apple has planned to create and
propose better and advanced development tools (Rao and Tilt, 2016).
 Choices of brand - It's not great information that respective company is a well-known
brand in business environment. Apple has a dedicated company sheet offering world-
class development solutions for every effort requirement.
 Fit Research - Apple is committed to its plans. A careful evaluation has been initiated
and further research will be conducted to help assess customer needs and requirements.
 Liam-enabled feature - Liam is an iPhone reuse device that separates and deletes your
iPhone. She strips them directly in a single shock. Most of the iPhone beats can be
reused. Should Liam reuse any number of parts it would be reasonable. The parts of
Apple products are sorted as well as stored in different parts so that they can be used
form the assembly whenever required (Lange and Bundy, 2018).
Weaknesses:
 Expensive offered : Products and offering of respective company is considered as a glut
because of its amazing consumption. Matters are valued for their high focus and customer

feedback. Low-income customers can’t afford Apple stuff. As a result of their leader’s
assessment, only close-knit or upper-class people can hold out at the expense of their
belongings (Elmagrhi et al., 2019).
 Limited Messages and Progress: Apple has solidified its foundation by working with
trusted customers, even with ever-increasing resources. Apple’s progress is largely based
on its well-known and advanced sales stores. Because of their flowers, Apple would not
want to spend too much on the industry unlike several stand-alone brands, such as P&G,
Coca Cola and Samsung Development.
 Entering the realm of incompetence - Apple is fast entering new entities, for example,
video content spoofing, game spills, condemnation cards - most player fights, eg Netflix,
Disney, Citi , Chase, Paypal, help. . They could go to areas where they need to be able to;
a review of Apple map failure (Lau, Lu and Liang, 2016).
 Irregularities with other software: When a customer buys an apple, it enters the Apple
universe. Apple's Things does not endorse any applications or applications that make
them compatible with different devices. Customers just need to buy Apple or co-op
applications to continue using the Apple product.
Opportunities:
 Sustainable customer growth: Apple has dominated the innovation industry for years.
They provide progressive and progressive development that enhances the customer
experience. Their 92% messaging consistency rate is huge. Apple can rely heavily on the
power of the web for future opportunities to increase new customers and structure new
unions (Hong, Li, and Minor, 2016).
 Certified Professionals: Apple's researchers, designers, and objector experts are a
collection of highly skilled experts who have come a long way in studying the future.
With the expansion of their collection, Apple can temporarily create new opportunities
(Kirwan, Maye and Brunori, 2017).
 Extensive distribution network - Acquisition of Apple Inc. the opportunity to improve
its type of dispersion. Before and after, the course orchestra is limited by Apple and
leaves room for a reckless turn of events. Apple can pay and create higher resolutions if it
aims to cause widespread distribution to mind. In addition, the association can benefit
from constant presentations and progress.

Threats:
 Coronavirus Revolution - Apple relies heavily on China for its collection and storage
system. Similarly, about 17% of its $ 260 billion salary will start with China. The
coronavirus outlook has had an impact both internally and externally and could continue
to haunt about 32% of Apple’s annual payout in the 2020 financial year (ArAs, 2016) .
 Apple Bullied By Counterfeits - Apple has become vulnerable to unorthodox countries
that use the brand image illegally to sell counterfeit products. Illegal buyers sell Apple
counterfeits with a comparative move such as Apple's specialty. Silly things can lead
consumers to believe that it is a lower quality Apple product. Terrible news can have a
negative overview and horrific performances for the society.
 Competition Size - Although Apple as a brand has set its sights, it still threatens
competitors. With advances in development, brands such as Samsung, Google and Dell
are causing Apple a controversial controversy. As the conflict progresses, Apple must
introduce new developments or change the perceived course of action to stay ahead of its
constraints (Lange and Bundy, 2018).
Analysis of the strategies and techniques which is used by company to related its competences
to its business environment.
It is much needed by every single business organisation to focus upon its own
competencies and seeds in the environment and corporate strategy that has been developed to
deliver positive aspects to the society which is directly linked with production and profitability of
the company. Apple which is already at a good position in the technical market in all over the
world. It is much needed to focus on its own competencies to build up effective business
environment for its workers so that they can effectively with much more efficient goal oriented
results considering the corporate strategy that has already been developed by the company.
Corporate strategy of Apple:If it is talked about the strategy of Apple then it is to mainly
focus on innovation of the various products considering corporate classical innovation, internal
processes and focusing upon merchandise innovations (ArAs, 2016).
Competencies of Apple and its business environment: Considering the corporate level
strategy of Apple which is to maintain the innovation among different products and services that
are being offered by them in order to stay differentiated from its customers there are ample
number of competencies that stays linked with the developed goals and objectives and these are

bringing the innovation among products, performing the promotion of new and existing products
in a unique way, delivering the quality to customers and helping the customers with the strong
Customer Service department. These are said to be some of the crucial competencies which stays
directly linked with the corporate strategy of Apple. This could be understood with a good
example of a particular competency of Apple which is strong marketing of the product at the
launch period of time.Here, it can be said that with the help of strong marketing approach, Apple
delivers the information to customers in relation to what innovative that they have brought in the
product like iPhone 11 Pro where they brought three cameras close to each other in a rectangular
shape which enhanced the overall look of the mobile phone (Zuckweiler, Rosacker and Hayes,
2016).
Identification of social, ethical, environmental and legal or governance issues impact on business
There are number of impact that can be seen on Apple which took place due to different
factors like social ethical, environmental, legal and governance related and some of these are
mentioned underneath:
Society related issue: selling investors on the services story is considered to be e one of the
social issue that was faced by organisation and affected its productivity and profitability. What
happened was that Apple has mentioned that company is no longer going to report iPhone unit
sales as it is considered to be no longer element which affected the overall ecosystem of the
company (Hong, Li and Minor, 2016).
Environment related issue:basically Greenpeace has had deliver the information about
apple that company consists with a number of components which may harm the environment
withholding its full list of regulated substances due to poor policies company has gone through
many difficulties.
Legal and ethical issues:Apple needs to look at any rate 61 claims that were recorded
against the iPhone producer not long after the organization recognized that it eased back iPhones
down through programming to forestall unforeseen shutdowns brought about by old batteries.
Governance related issue:In view of bits of proof that demonstrate working conditions in
the Foxconn organization, which is the biggest producer of Apple items with around 1.3 million
representatives just as what occurred in other Apple makers. Apple additionally found and halted
oppressive practices against ladies labourers in 34 provider offices that necessary pregnancy

testing and 25 offices that tried representatives for certain ailments, the report said (Adhariani,
Sciulli and Clift, 2017).
Therefore, 2017 some of the crucial issues that faced by company and affected the overall
performance level of the company in negative manner. but if it is critically analyse than all of
these issues which were faced by the company somehow is the negative position for themselves
but somehow it was also positive for them because every single media channel was talking about
them and made company of famous multinational business organisation in all over the world
within technical industry.
Critical evaluation of how the organisation is currently framing these issues in its strategy and
operations.
Apple's corporate-level procedures incorporate the nearby related expansion of its items at
moderate and significant levels, including home PCs, PCs, cell phones, music stores, and
programming. Additionally, respective company is working its business practices through the
mix up of personalised computing process as well as amusement pleasure in high level of
combination, permitting it to be progressively effective underway and conveyance of items at
moderately serious costs while at the equivalent staying beneficial. One favourable position of
this enhancement technique is that clients can get their favoured result of a high calibre and plan
standard, since every one of these items are profoundly incorporated and run on the equivalent
working framework (Obi and Ode-Ichakpa, 2020).
If it is talked about how Apple is dealing with all these issues then it can be said
thatcompany is continuously looking at all these aspects so that risk related aspects can be
reduced to minimal and to gain competitive advantages. This could be understood with very
good example of apple only where, Apple producers and its specialist's condition. Apple has
been attempted to add to upgrading work and human rights in their Chinese and Western
organizations. Also, Apple actualizes the supplier set of accepted rules that is purported to be the
hardest in the gadgets business. Furthermore, it has achieved a normal 95 percent consistency
among suppliers to most noteworthy 60-hour week of work. Apple has explored in occurrences
of abuse of providers labourers, just as the association has power suppliers to balance impacted
"outside provisional labourers USD3.9 million in unreasonable charges paid to work
representatives, carrying our absolute repayments since 2008 to USD16.9 million". In term of
wellbeing and security for representatives, the association has pushed Apple Supplier EHS

Academy, a 18-month program, that direct to upgrade labourers prosperity and security in the
business all through the globe. 240 supplier and 270,000 representatives have looked into this
program. Research has been coordinated in Apple's ergonomics division on around 75 vocations
inside store system to recognize ergonomic threats (Martin and et. al., 2016). The assessment has
realized improved standards for regulating workstation design changes.
Assess the extent to which the organisation is managing tensions between corporate
responsibilities and maximising shareholder value.
Apple’s success is not due in large part to its ability to meet corporate social responsibility
(CSR) responsibilities. Power demands of infectious groups that reflect corporate social
commitments, which will affect resilient performance. For Apple's position, backers have a
fundamental influence on the industry to the extent that there is consumer and employee
approval. Reflecting the persistence with high regard for its image, Apple speaks effectively to
supporters in its methods and procedures. For example, the association monitors the regular
concerns of supporters through a workable material sourcing approach. Apple has a strong and
complete strategy for monitoring the interests of conspiratorial bags that are important to the
company. These complex packages cause Apple to develop, and Apple influences them by
meeting their trends (Idowu, Vertigans and BurleaSchiopoiu, 2017).
Apple's Stakeholder Groups:
Apple considers the interests and pressures of core competencies in its corporate social
engagement practices and initiatives. Power tools change applications in a variety of industries.
For Apple's case, going with accommodation is the most important mentioned below:
 Customers / consumers
 Apple employees
 Investment
 Representatives of suppliers and distributors
This is where it is argued that an Apple investor is therefore a specific supporter and
supporter of corporate social responsibility programs in corporations. For Apple's position, the
budget authorities are committed to growing the benefits of their ideas. The company is very
likely to go with this perfect package through a notable money-related achievement. For

example, Apple is just one of the most profitable companies in the world. The company
maintains a generally high turnover (Hussain, Rigoni and Orij, 2018). Apple also has a strong
fiscal position, which implies high liquidity through large sums of money. The association has
also become aware of how to keep basic good practices from commitment. By considering these
terms of corporate social responsibility, Apple is content to meet the prices of the budgetary
authorities as a sponsor.
Conclusion
With the help of above mentioned report, it can easily be said that Apple organisation is
dealing at a good level where considering a strong corporate strategy has helped them in in
reducing all the number of risks that are linked with legal and ethical aspects. But also, it will be
needed by company to keep on modifying its strategies based on the requirements of customers
along with the society so that competitive advantages can easily be gained in much effective and
in efficient manner as well. Selling premium products and services can also lead the company to
deal with negative problems because of the competitive market where companies like Oneplus
and many more has started offering customers with cheap priced but efficient products and
services.

References
Books and journals

Self Evaluation
While conducting the overall investigation on the particular topic which is corporate strategy,
governance and ethics, I have managed to improve a few skills like research and time
management that will help me in near future while performing any sort of assignments or
working in an organisation. At different times, I have gone through various difficulties where
teachers and my colleagues were considered to be the individuals who has help me out in
reaching to the conclusion. Abe with this, the literature investigation which has been done on the
chosen topic has considered all the articles, books and other online sources from 2015 to 2020
which made this project much more authentic in nature. The other hand, if it is talked about the
methodologies which has been adopted then that is qualitative while conducting this project.
Overall experience that I have experienced will help me in in conducting any sort of assignments
in much effective and efficient manner.