Strategic Tools for Human Resource Management: A Case Study of Apple

Running head: STRATEGIC MANAGEMENT
Strategic Tools
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT
Execute Summary
The report highlights the importance of strategic management in the field of human resource.
The application of strategies for the success of a company is defined in the report. The report
focuses on Apple one of the leading companies in the field of technology and innovation in
the modern day. The report analyses the external factors that may affect Apple in its quest to
retain its position as the number one company in the world. The external factors are analysed
by the application of PESTEL analysis. Furthermore, the internal capabilities as well as
opportunities derived from Apple are highlighted by using a SWOT analysis. The report also
conducts a five-force analysis and a competitive analysis so that the threat of competitors can
be determined. A business model canvas of Apple is provided along with the importance of
Blue Ocean strategy is provided.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction:...............................................................................................................................4
Overview of the organisation.................................................................................................4
External analysis of the strategic capabilities............................................................................5
PESTLE analysis....................................................................................................................5
Political..............................................................................................................................5
Economic............................................................................................................................5
Social..................................................................................................................................5
Technological.....................................................................................................................6
Legal...................................................................................................................................6
Environmental....................................................................................................................6
Five forces analysis................................................................................................................7
Competitive rivalry............................................................................................................7
Buyer power.......................................................................................................................7
Threat of new entrants........................................................................................................7
Threat of substitutes...........................................................................................................8
Supplier power...................................................................................................................8
Internal capabilities of the strategic capabilities....................................................................8
SWOT analysis.......................................................................................................................8
Strengths.............................................................................................................................9
Weaknesses........................................................................................................................9

3STRATEGIC MANAGEMENT
Opportunities......................................................................................................................9
Threats..............................................................................................................................10
Basis of competitive strategy...............................................................................................10
Competitor analysis..............................................................................................................10
Strategic choice and application of business model.............................................................11
Porter’s generic strategy.......................................................................................................11
Business model canvas:........................................................................................................13
Recommendation strategies.................................................................................................13
Blue ocean theory:................................................................................................................13
Strategic decision making:...................................................................................................14
Brainstorming.......................................................................................................................14
Cause and effect diagram:....................................................................................................15
Conclusion................................................................................................................................15
Bibliography:............................................................................................................................17

4STRATEGIC MANAGEMENT
Introduction:
Strategy is certain plans of action that is designed to achieve some long-term aim.
According to Hill (2017), any strategy need to be carefully thought out and need to be based
on certain alternatives. It is required to assess the market environment to resolve the lack of
flexibility in the organisation. Strategy can be divided by three levels such as corporate
strategy, business strategy and financial strategy. As opined by Hill, Jones and Schilling
(2014), strategy involves certain advantages for the organisation and it helps to increase the
level of resources by changing the environment, meeting the needs of the market and fulfil
the expectations of the stakeholders. Strategic management is a process by which competitive
advantages can be developed by analysing the decision and action of an organisation.
Through strategic management, the general managers of a company take creative
decisions for developing the performance of a firm (Barney 2017). Strategic management has
made a balance in between the internal and external environments. The formation of the
strategy includes certain essentials like internal and external analysis, competitive
advantages, strategic options and strategic implementations. Strategic fit is different from the
normal static consideration and it requires long-term circulation. Managers need to be careful
and vigilant while making and implementing strategic ideas. When a new business has been
incorporated, certain external environment has affected the same.
External environment includes the societies that influenced the industry or firm;
factors that creates impact on the action of a firm and competitors of the firm. Certain
strategic tools like SWOT, PESTLE analysis, 5 forces analysis, competitor analysis, Blue
ocean theory and Porter’s generic strategy assist to make the company strategically improved.
The prosperity of a company depends upon the effective strategic management. There is
certain business model canvas that helps to develop the base of a business and it will help the
company to establish a successful corporate future for the company in the market.
Overview of the organisation
Apple is the world’s largest technological and innovative company that was
incorporated in the year 1976 (Apple.com 2018). Steve Job founded it and after various
difficulties, it has emerged as the biggest and most popular technological company in the
world. It provides varieties of products such as smart watches, phones, I-phone and so on.
The target people of the company are mainly the people that belong in the higher society.

5STRATEGIC MANAGEMENT
Some of the competitors of Apple include Nokia, Samsung, Xiaomi and so on. The revenue
of the company is estimated at US$229 million. The functioning objective of Apple is that it
provides the best technical products for the satisfaction of the customers with a strategic
statement that highlights the manner in which the company can maintain its business in the
competitive business.
External analysis of the strategic capabilities
PESTLE analysis
Political
In the modern world, political scenarios play an important role for the success and
failure of a country and its business. In the case of the UK, the existence of democracy paves
away for companies to remain competitive in the business environment. After the end of the
world wars, the country has been developing at a faster rate. Nevertheless, they are facing
constant threats from terrorist activities that are threatening the policies within the country
(Wheelen et al. 2017). The democratic form of government within the country has resulted in
distributing the power within certain sections of people. The country has been successful in
mitigating the level of corruption within its political system, which has increased the
effectiveness of the government as well. This has helped in the growth of many industries
within the country, as they have been able to flourish under the policies that have helped in
shaping the existence of business organisations. The technological companies like Apple are
flourishing in the market in a positive manner due to the increase in the technological factors
and the modernisation of the society (Meyer, Neck and Meeks 2017). However, the policies
that are made within the country do not affect Apple largely, as the government does not
possess any threat to the company.
Economic
United Kingdom has one of the highest rates of Gross Domestic Product (GDP),
which indicates that the consumers have a higher rate of purchasing capacity. This has helped
the companies in increasing their rate of production, as more number of customers is willing
to pay and purchase the products (Rothaermel 2015). Companies like Apple have been
provided with an excellent environment, which has helped them to increase their rate of
production and engage skilled professionals as well due to the intense level of competition
that is present. The rate of corporate taxes has also decreased from 23 to 20 percent that has