Strategic Management Plan on Apple Plc Assignment

Strategic Management Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 applying appropriate frameworks to analyse the macro environment...................................1
TASK 2............................................................................................................................................4
P2 Framework analysis of internal environment........................................................................4
TASK 3 .........................................................................................................................................5
P3 Implementing Porter’s Five Forces model for Apple IPad....................................................5
TASK 4............................................................................................................................................1
P4 Bowman’s strategy clock model............................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business strategy can be defined as a set of decisions which helps employers of a firm in
achieving specific objectives. Management of a company is taken this as a plan used to gain a
competitive position at marketplace as well as carry business operations in an appropriate
manner. In addition to this, formulating and developing effective strategies in business also aid
entrepreneurs in running organisation in a systematic order. This would further help in gaining
high satisfaction of customers and achieve success of targeted goals of long-term in pre-defined
period of time. In this manner, a report has been prepared on Apple Plc. It is a multinational
technology company which is headquartered in California, UK. This firm used to design,
develop and sells electronic product, computer software and online services. This assignment has
entailed impact and influence of macro environment on business along with internal capabilities
of this organisation. In addition to this, Porter’s Five Forces, theories, concepts and models.
TASK 1
P1 applying appropriate frameworks to analyse the macro environment
PESTEL is an strategical tool used by companies for planning to launch new product and
services and to track the environment in which they operate. It is used to identify the external key
factors which may affect the business. Before implementing any kind of strategy or tactical plan,
situational analysis is conducted with the help of PESTEL at a regular interval to identify macro
environmental changes.
APPLE Inc. is a multinational company which designs, manufacture and sell hardware
such as computers, the iPad media player, the iPhone smartphones etc. and software such as iOS,
watch OS, tvOS etc. Apple's success and growth is linked with its effectiveness in addressing
external factors in its macro environment which help in formulating strategies to exploit
opportunities and to protect from various threats. PESTEL stands for
political,economical,social,technological,environmental,legal.
PESTEL analysis of Apple Political factors :- Political factors includes government policies, political stability or
instability in market,foreign trade policy etc. For example: Apple is highly dependent on
China as they are are getting lower manufacturing cost from this country , Political
problems arising in china has resulted in increase of manufacturing cost in America itself.
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Apple is also dependent on number of countries outside US like China, Korea, Ireland
for manufacturing its parts.
 Economical factors :- Economical factors affect the profitability and functions of
organisations it includes interest rates, exchange rates, Increase in labour cost . For
example: Increasing labour cost in china- Apple's maximum manufacturing factories are
in china. With the passing time government of China has increased the labour cost.
China's government have fixed minimum wages of labour, it differs region wise with
inclusion of benefit like housing, overtime, food etc. Due to this economical change in
china, it completely affects the cost of the apple products and increased the cost of the
products.
◦ Value of US dollar keeps on fluctuating.
◦ Increasing labour cost
◦ Inflation adversely affect the revenue of company. Social factors :- This includes various traits like belief, attitudes of population and
customer preferences. Apple products are considered as a symbol of status in society,
leads to increase in market share. On the one hand where younger people are more
attached and attracted toward Apple products for its good brand value and highest
technologies, on the another hand young generation is giving more importance to the
larger screens smartphones which are available in the market in less prices (Kalyani and
Sahoo, 2011). Technological factor:- With the increasing technologies the apple is facing heavy
competition from other brands which are offering same latest technologies in different
manner with larger screens. Increasing share of smartphone users reduces the use of
Apple's personal computer. Apple has limited market offering as its customer's very less
& purchased by few kind of customers which are brand oriented. Environmental Factor:- China is constantly reduce greenhouse gases effect and limiting
fossil fuel leads to increase in electricity rates which directly increased manufacturing
cost to the company. Pollution and other environmental side effect leads to increase in
regulation and manufacturing costs in future. Increasing Global warming is delaying in
transportation which affects Apple's supply chain.
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