Apple Business Strategic Plan

This report provides a comprehensive analysis of Apple's business strategy. It examines how Apple's mission, vision, objectives, goals, and core competencies influence its strategic planning. The report includes an organizational audit using SWOT analysis, an environmental analysis using PESTLE analysis, and a stakeholder analysis. Different strategic options, including market entry, substantive growth, limited growth, and retrenchment, are evaluated, with a justification for selecting a strategic alliance as the most appropriate strategy for Apple. The report also details the roles and responsibilities needed to implement the strategic plan, estimates the required resources, and highlights the contribution of SMART targets to successful strategy implementation. The conclusion emphasizes the importance of forecasting long-term prospects and employing effective corporate tactics to maintain Apple's position in the market.

BUSINESS STRATEGIC

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 How mission, vision, objectives, goals and core competencies alter the strategic planning
of Apple..................................................................................................................................1
1.2 Factors that can be considered while formulating strategic plan for Apple.....................3
TASK 2............................................................................................................................................5
2.1 Examining the strategic positioning of Apple by conducting organizational audit.......5
2.2 Environmental analysis of Apple.....................................................................................5
2.3 Significance of stakeholder analysis when formulating new strategic.............................7
2.4 New strategy for Apple....................................................................................................7
TASK 3............................................................................................................................................8
3.1 Analyzing the appropriateness of alternative strategic relating to kept entry, substantive
growth, limited growth or retrenchment for Apple................................................................8
3.2 Justification of the strategy selected for the Apple..........................................................8
TASK 4............................................................................................................................................9
4.1 roles and responsibilities needed to implement the Apple future strategic plan..............9
4.2 Estimated resources required for implementing the strategic alliance...........................10
4.3 Contribution of SMART targets to the achievement of strategy implementation in Apple.
..............................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategy is the strategies are generally developed in order to achieve the long
term objectives of company. In this project report, it has been depicted that how a mission, vision
and objectives of Apple help him to modify its strategic planning (Abraham, 2013). Apple is the
largest information technology company headquartered in Cupertino, United States. It has
generated US$233.715 billion as a revenue in 2015. In this study, techniques that can be
considered for developing a strategic business plan are mentioned. In addition to this,
significance of stakeholder analysis is also discussed. Besides this, suitable strategies related to
market entry for Apple are also enclosed. Lastly, contribution of SMART targets for the
achievement of strategy implementation is discussed.
TASK 1
1.1 How mission, vision, objectives, goals and core competencies alter the strategic planning of
Apple
Mission: Its mission statement is to take into consideration various actions that are useful
for ensuring the success of company every year after year.
Vision: Its vision is to offer best products to the customers by concentrating constantly on
the innovation through using latest technologies (Allio, 2006).
Objectives: Its objective is to create the ground-breaking products at a constant basis and
to expand its chain of Apple stores. In another objective to innovate and prescribe the movement
for future technology. In addition to this, it want to expand its business worldwide. Besides this it
also desired to increase its profit margin.
Goals: - Its goal is to improve the accuracy of the software projects used.
Core competencies: Core competencies of Apple are to introduce innovation in its
projects, generate strong marketing team, conduct high financial performance and offer high
quality services to the customers (Benson and Bugnitz, 2004).
Strategic planning is done to achieve the desired goals and objectives of organisation.
Goals of the organisation can be achieved when its mission and vision statements are clear.
Along with this, such statements should be informed to the employees so that they can work for
the achievement of organisation goals. When company has proper understanding about its

mission, vision, goals, objectives and core competencies, then only it can develop various plans
accordingly.
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If, objectives of the organisation are not clear then in that case, they cannot develop a
proper plan. An effective strategic planning is only possible when company knows in advance
what they are required to prepare the strategic plans (Campbell, Edgar and Stonehouse, 2010).
For example: if company’s objective is to beat its competitors then they will try to prepare
various strategies accordingly. Along with this, if business does not know what they are required
to achieve then how they can develop an appropriate strategic plan. Thus, in order to form an
appropriate strategic plan, proper knowledge of company's mission, vision, goals, objectives and
core competencies is very important.
1.2 Factors that can be considered while formulating strategic plan for Apple
Strategic formulation is the procedure of setting company's vision, mission as well as
objectives and after that, choosing the best strategy from various alternative strategies. Strategy
formulation many a times is also known as strategic planning (Ireland, Hoskisson and Hitt,
2008). Therefore, in order to conduct strategy formulation, a series of steps is required to follow.
These steps are necessary to be followed in a sequence because all these steps are linked to each
other.
Therefore, while formulating various strategic Apple is required to determine the various
factors. Some of the factors that are required to be taken into consideration are socio-culture
environment, competitors, government policies and norms, skills of the employees, company's
core competencies as well as its financial standing. Among the all, major factors are as follows:
Financial standing: This is one of the major factors that is required to be taken into
consideration at the time of formulating a strategic plan. If, Apple has knowledge about its
financial standing then only it can develop an effective strategy (Kourdi, 2009). For example: if
financial standing of the company is not sound enough then in that case, Apple should try to
focus more on reducing its expenses, so that it can able to generate more revenue.
Government policies and norms: Before formulating any strategy, adequate knowledge
about the government policies and norms is very necessary. It is because that every single change
in government policies affects the functioning of company in a huge way (Olson, Slater, and
Hult, 2005). For example: if a company wants to expand its business in an international market
and it does not have complete knowledge about the taxation policies of that country, then in that
case, business expansion may be unsuccessful. 1.3 Effectiveness of the techniques used at the
time of formulating strategic business plan
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There are various types of techniques that can be used by Apple while formulating
strategic business plan. Some of the techniques that can be undertaken by Apple are ANSOFF
matrix, BCG matrix, SWOT analysis, PESTLE analysis and stakeholder analysis. Few
techniques are described below:-
ANSOFF matrix: It is a strategic planning tool that can be used by Apple to develop a
framework in order to assist the directors, executives and marketers to devise various strategies
for the future growth (Parnell, 2010). This matrix is divided into four quadrants (i.e. market
penetration, market development, product development and diversification).
Advantages- This matrix forces strategic planner to think in advance about the risks that
can be faced by them while moving in a specific direction. In addition to this, it assists in setting
the objectives and aims of company. Besides this, it helps in creating classification of various
alternatives.
Disadvantages- This matrix does not take into consideration the activities of competitors
while formulating the strategy. Apart from this, plan developed by considering this matrix is too
optimistic.
BCG matrix: It is one of the corporate strategic planning tools that can be used by the
management to portray company's brand portfolio. This assists organisation in allocating
resources effectively and it is used as one of the beneficial tools for product management,
strategic management and brand marketing (Peng, 2002). This matrix is also divided into four
quadrants (i.e. cash cows, dogs, Question mark and Stars).
Advantages- This matrix helps managers to maintain the balance between current
portfolio and future portfolio of the company. Along with this, it also provides a base to the
management in order to develop various future actions.
Disadvantages- The major drawback of this matrix is that it neglects the impact of Synergies
between various business units. Another disadvantage of this matrix is that it only focuses on two
dimensions i.e. growth rate and market share.
Therefore, out of both these matrix ANSOFF matrix is much better tool for developing
various strategic as compared to that of BCG matrix.
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TASK 2
2.1 Examining the strategic positioning of Apple by conducting organizational audit
Strategic positioning is done by the organisation in order to put itself at the place where
they want to be in future by taking into consideration the changing environment and systematic
realization of that positioning (Peng, 2002). In simple words it can be said as an important step in
determining the various strategic that are considered by the company at the time of deciding the
strategic positioning.
SWOT analysis
STRENGTH WEAKNESS
 One of the major strength of Apple is
its marketing and advertising
capabilities.
 High demand and awareness in the
mind of the customers about the
various products launched by Apple.
 Powerful brand image.
 High prices of the products as
compared to their competitors’
products price.
 Constrictive range of products.
 Increase number of technical problems
related to the functioning of the
products.
OPPORTUNITIES THREAT
 Can invest more in research and
development programs.
 Can increase fellow feeling of the
products (Slater, Hult and Olson,
2007).
 Can also form various strategic
partnerships.
 High level of competition from various
countries like India and China.
 Constant damage due to then tax
outrage.
 Increase in manufacturing cost of the
products.
2.2 Environmental analysis of Apple
Environmental analysis is done to analysis the external factors that can affects the
working of the organisation. Therefore, environmental analysis is done by doing the PESTLE
analysis.
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POLITICAL ECONOMICAL
 Social and political unrest in China can
affects the working of Apple because
Apple is highly dependent of China for
low cost of manufacturing (Teece,
2010).
 In addition to this find any other
country for the manufacturing purpose
can increase the expenses of the
company.
 Cost advantage may not be availed by
the Apple due to increase in the labor
cost.
 Besides this, powerful US dollar rates
can add on to the exchange rate which
in turn may enhance the expenses of the
Apple while operating its business in
countries like China and Europe.
SOCIAL LEGAL
 Increase in ethical concerns can limit
the cells of the products within the
socially conscious consumers.
 Music marketing strategy can create
bitterness in the mind of customers
which in turn may affects the brand
image.
 The level of regulations can increase
the oversight of the government,
because Apple has recently entered into
the highly organized financial service
sector.
 Level of proceeding can increase can
due to the offering of various financial
services.
TECHNOLOGICAL ENVIRONMENTAL
 Increasing use of smart phones and
tablets can minimize the sale of the
Apple computer.
 Growing in the cybercrimes has taken
away one of the major competitive
advantages from Apple.
 Growing level of pollution and other
side’s effects from the manufacturing
company is one of the main cause for
concern (Vorhies and Morgan, 2003).
 Supply chain of the Apple could be
affected because of the global warming.
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2.3 Significance of stakeholder analysis when formulating new strategic.
Stakeholder analysis indicates an action of analysing the behaviour of the stakeholder
towards achievement of something. In other words it can be said that Stakeholder analysis is the
procedure of the identifying the individual and group that may be going to affects the desired
actions and objectives of the organisation. In addition to this stakeholder analysis assist the
Apple in sorting the impact of the actions (Yanadori and Marler, 2006). The information
collected through stakeholder analysis assist the company in finding out the area of interest of
the stakeholder and how these interest can be addressed at the time of forming various policy,
plans and actions. This is one of the important tool that can be used for stakeholder management.
Stakeholder analysis majorly focus on achieving the interest of all the stakeholder in a balance
way so that no stakeholder interest is affected.
There are different types of stakeholder that affects the functioning of the Apple. Some of
the stakeholder that creates an impact on the operations of the company are employee, managers,
customers, government, suppliers, creditors and so on.
Importance of stakeholder analysis
1. Stakeholder analysis will help the Apple to analyse the needs and wants of all the
stakeholders.
2. It also help in maintain the balance between desire and wants of all the stakeholder. It
aims that desire of no stakeholder should affects the desire of the another stakeholder
(Riley, 2015).
3. Stakeholder analysis assist the Apple in motivating its employees. Because while
examine the role of the stakeholder company will be able to analysis the satisfaction
level of every stakeholders especially employees.
2.4 New strategy for Apple
In order to further improve the functioning of the Apple and to increase the market share
of the company, Apple can develop a new strategy. It can follow the general strategy i.e.
strategic alliance.
Strategic alliance is the agreements between two or entities who work together in order to
achieve the common goal (Eyceoz, 2009). These organisations share all its resources with an
aim to achieve the desired target. In this type of strategy both the firms creates its own autonomy
by generating new opportunities for them.
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These “strategic alliance” will help the Apple to create and hold back the various choices
of the firm. In addition to this it also creates a various benefits over variety of risks.
By using this strategy Apple can evolve an effective process, can flourish its business in
different market, can achieve various significance over its competitors and can easily achieve its
desired goals and objectives (Timms, 2014).
TASK 3
3.1 Analyzing the appropriateness of alternative strategic relating to kept entry, substantive
growth, limited growth or retrenchment for Apple.
Market entry strategic: - Market entry strategic can assist the Apple to expand its
business in foreign market. Moving towards the foreign trade will aid the company to expand its
business in various countries which in turn will help the Apple to satisfy its customers available
in both domestic and international market (Abraham, 2013). If customers are satisfied than in
that case sales of the Apple products will increase in regard to which profitability level of the
company will also increase.
Substantive growth strategic: - This strategic can be used by the Apple if it wants to
increase the rate of market shares. By using this strategic market share of the company can
increase but at the same time expenses of the company will also increase. Besides this company
can also require to opt for the option of merger and acquisition.
Limited growth strategic: - By using this strategic Apple can introduce new and
innovative features in its products in order to increase the sales of the products by attracting large
number of customers (Allio, 2006). Use of this strategic can lead the Apple towards a high
growth rate.
Retrenchment strategic: - While using this strategic Apple will be able to reduce the
overall expenses of the company. In addition to this it also help the company to reduce the cost
of its manufacturing. This strategic can be used by the Apple at the time of inefficiency,
recession or strong competitions. But at the time of using this strategic Apple is required to
reduce the cost of assets which in turn will generate more revenue.
3.2 Justification of the strategy selected for the Apple
Strategic alliance is the legal agreements between two or more parties who together to share all
its resources in order to achieve the desired common goals. But remain as an independent
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organisation.
Apple is one of the growing company in technology sectors. Thus, by following this strategy
Apple has been flourishing its business form a long time by using this strategic. Further if
company continues to follow its business with this strategic than in that case it will be easily too
able to achieve its desired targets (Campbell, Edgar and Stonehouse, 2010).
Some of the advantages for using “strategic alliance” strategy are as follows. This strategic help
in setting up various global standards. In addition to this it also help in overcoming various
barriers. Besides this, it also help the Apple to Access market segment.
But many a times this strategic can create a problem for a company. If poor management has
been done than in that case company may not be able to cope up with the fast changing
technology.
Thus, this strategic has been selected because Apple is required to form various strategic in
order to beat its competitors because the price of its products which is one of the major
disadvantage for the Apple (Benson and Bugnitz, 2004). Therefore, by using this strategic
Apple can easily able to increase the value of its market shares and can move towards a high
growth rate. However this strategic can be implemented by the top level management.
TASK 4
4.1 roles and responsibilities needed to implement the Apple future strategic plan
Role and responsibilities of the top level management needed to implement the desired
strategic future plan are as follows:-
 Top level management sets the company goals, objectives, mission and vision. After
setting up goals and objectives, management start developing various strategic in order to
achieve the desired goals and objectives (Kourdi, 2009). Therefore, in order to towards
the achievement top management is required to establish various goals which in turn
motivates the employees.
 Another role and responsibilities of top level management is to manage all the assets of
the Apple. An effective management of the available resources will help the Apple to
reduce the expenses and generate more profit which in turn will lead the company
towards the achievement of high growth rate.
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 Another role and responsibilities of top level management is to inspire and motivate the
employees as that they may feel highly satisfied (Ireland, Hoskisson and Hitt, 2008).
Highly satisfied employees will work more actively which in turn will increase their
productivity. This in turn will increase the profit margin of the Apple.
 Responsibilities of top management is to create a healthy working culture. A bouncing
corporate culture will enhance the creativity and innovation in the mind of the employees
which in turn result in the formation of the company which is successful and constantly
coming up with the new and innovate ideas (Olson, Slater and Hult, 2005). While on the
other hand if corporate culture is unpleasant than in that case it will limit the knowledge
and efforts of the employees. This in turn will create the problem for the Apple to
achieve its desired goals.
4.2 Estimated resources required for implementing the strategic alliance
Human resources needed
In order to implement the “strategic alliance” strategy Apple is required to required top level
management which includes chairman, directors, and managers and so on. This in turn will help
the Apple top achieve its desired objectives.
Financial resources
When any type of strategic is being implemented at the top level management it is very
important to arrange the finance. If there is any lack of funds then in that case implementation
of the desired strategic will become very difficult. Therefore, it is very important for the
company to properly arrange the finance while implementing the strategic (Slater, Hult and
Olson, 2007).
Time and material needed to implement the strategic plan
Apple require around 7 months of time period in order to implement this strategic plan.
4.3 Contribution of SMART targets to the achievement of strategy implementation in Apple.
Operating in such a competitive environment it is very important for the top level
management of Apple Inc. to assign the strategies and tactics as per the defined SMART
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