Assignment on International Business Strategy (Doc)
Added on 2021-05-31
15 Pages4962 Words57 Views
Business DevelopmentFinanceLeadership ManagementProfessional DevelopmentMaterials Science and EngineeringMobile Development
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Running Head: INTERNATIONAL BUSINESS STRATEGYINTERNATIONAL BUSINESS STRATEGYStudents ID:Name of the universityAuthors note:
INTERNATIONAL BUSINESS STRATEGYIntroduction Apple Inc. is an IT company that serves the range of products including cell phones,computers, television products and tablets. Customers of Apple seek high performingproducts that are aesthetically satisfactory and will be able to deliver assurance in terms ofdurability. The company was founded in the year 1976 as small computer software andhardware organisation. Since then the company has determined itself to provide creation oftechnological devices and has managed to develop a range of retail stores across the world tofulfil the demand made by the customers.However, the study focuses on the existing condition and market scenario of Apple byhighlighting its Global business strategy and management structure. Since the company isplanning to open a subsidiary in India it is necessary for the company to understand thehighly competitive industry while producing new products and pricing. Using collectedinformation from various reports the study reveals Apples comparative and existingperformance in terms of industry.1. The global strategy adopted by the firmFrom the annual report of Apple, the company’s current international businessstrategy has been found. Apple Inc. is located in CA that is popularly known as USA basedmultinational company that develops designs and sells consumer electronics and personalcomputing devices as well. The company’s business in the international context is classifiedby SIC and NAICS. In this regards, the company is placed on the top S&P list with almost$415,655.2 million of market share that is equal to 2.97 indexes (Dodgson 2018). However,during the development of international strategy the company has encountered incrediblegrowth over the period of previous years. In the year between 2008 and 2013, the share returnof the company seemed to be increased by 331% (Apple Inc. 2018)
INTERNATIONAL BUSINESS STRATEGYFigure 1: Annual sales and profit of Apple(Source: Forbes 2017)The justification for their international growth was due to the two-fold strategy; firstlythe technology industry has shafted itself owing to which Apple has managed to raise itscapital with the flow of technology (Ferreira et al. 2014). Secondly, the company managed tocapture the computing market through the enhancement of existing technology thereby ratingincreased demand for the newly delivered products. For adopting global marketing strategythe company diverted its service towards the educational process and home-oriented use toretain the customers. However, most of the Apple products are manufactured in China andassembled in the market of USA, but the companies’ penetration in the China market hasbeen found to be extremely limited. It is due to this reason that Apple had to face increasingdifficulty in China (Meyer and Peng 2016). The increasing environmental issues in China had been a big concern for theCompany. For the purpose of international business strategy, Apple's supply chainmanagement has also developed remarkable value by sourcing the nicest parts from allaround the boundaries and used it for the cheap workforce and for assembling. In this aspect,Apple invests almost $10.5 billion of the capital expenses in tooling products and inmanufacturing operational equipment (Apple Inc. 2018). For developing international FDItheories that company uses the Ricardian theory of competitiveness and product lifecycletheory for building a partnership with several companies around the international boundarieswhile managing huge control over its products and designing of the product (Serra and Kunc2015). Since the early decade, Apple's business model has been consistent in growth with the
INTERNATIONAL BUSINESS STRATEGYintegration of new operations in the business model. The company's business model hasmanaged to directly affect the shareholders while moving its business to a different market.In this context, Apple has committed to bringing it up the best experience for the userthrough the use of innovation in hardware, software devices, and peripheral devices as well astheir services. In case of international business strategy, Apple’s business is leveraged by itsinnovative capability to design and establish its own system of operation along with seamlessincorporation and innovative design within the product (McArthur 2018). Moreover, Appleboosts continuous investment in R&D, advertisement processes, which are necessary for thedevelopment of products and sale of innovative products. However, as a part of theinternational strategy, Apple consistently expands its field for the production if third-partydigital contents through the application of the iTunes store. In iTunes store, the organisation'sapp sore I bookstore facilities help the consumers to discover and install the differentapplication through the operating Mac and windows computer as well as IOS processes suchiPhone, iPad and other iPhone devices (Gerschewski et al. 2015).2. The firm’s international operations and management structure. (a) The role of the HQ versus the subsidiaryApple Inch HQ is located in CA, USA, with a unique management structure that is themost crucial factors that provide the company success. However, under the HQ of Apple Inc.,there is a CEO who is responsible for the entire system of management within theorganisation. Under the CEO, there are eleven departments for the executives that operatedirectly under the leadership of the company’s directors (Marquis and Raynard 2015). TheCEO of Apple has the authority to supervise and manage all the operating department of thecompany that is authorised by the senior vice president including CFO, COO, legaldepartments, design operations, IOS software departments and retails engineering along withglobal communication department (Terjesen et al. 2016). The responsibility of the hierarchyexecutives is straight forwarded to the departments without any connection for the matrix.The entire structure of management is oriented towards decision making. In this regards, thegoverning CEO of the company motivates the other present employees of the company toshare all their decisions. The company maintains a straight forwards approach while makingany decision in support from the top executives of Apple. These unique structures ofmanagement help the company to grab opportunities faster, in case if the board of directors
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