Strategic Management Plan: Analyzing Apple Inc.'s Business Model

This report provides a strategic management plan for Apple Inc., a multinational corporation specializing in consumer electronics, software, and online services. It employs PESTLE analysis to assess the impact of the macro environment, SWOT analysis to evaluate the internal environment, and the VRIO model to determine the company's capabilities. Furthermore, Porter's Five Forces model is used to evaluate competitive forces. The report also discusses the company's mission and vision, Porter's Generic Strategies, Bowman's Strategic Clock, and controlling measures, ultimately recommending a focused differentiation strategy to enhance profitability in a competitive market. The aim is to provide a comprehensive overview of Apple's strategic position and potential avenues for growth and sustained competitive advantage.

STRATEGIC MANAGEMENT
PLAN

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysing the impact of influence of the macro environment on organization...........................3
Analysing the internal environment and capabilities of the organization...................................4
Porter's five forces model to evaluate the competitive forces of the organization......................6
Applying range of theories, concepts and models, interpreting and devise strategic
management for organization......................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management plan is the document that is used to communicate within the
company which includes company's goal, set priorities, resource, etc. This report is based on the
Apple Inc. which is an American Multinational company that specialize in consumer electronics
and software and provides the online services. The report will outline the impact of influence of
the macro environment on the company by using the PESTLE analysis. Further this report will
outline the internal environmental by using the SWOT analysis and capabilities by using the
VRIO model. At last, this report will outline the range of theories, concepts and models, interpret
and devise strategic planning for the company.
MAIN BODY
Analysing the impact of influence of the macro environment on organization
A PESTLE analysis is the tool that makes the company to know about the external
environment. It makes the company to know about the factors which has impact on the business
environment and activities (What is PESTLE Analysis? Everything you need to know about it,
2021). This acronym stands for political, economic, social, technological, legal and
environmental factors. The impact of influence of the macro environment of the Apple is
evaluated by this analysis.
Political: This factors includes the tax policy, environmental regulations, trade
restrictions, tariffs and other political stability (Nandonde, 2019). This factor indicates the
influence of government on the business organization. There are some political factors of the
organization like improving free trade policy, organization has stable politics in the developed
countries but there are some trade disputes between US and china. These factors may impact the
strategies of the organization.
Economic: The good economic stability of the countries provides opportunities for the
organization to do expansion. The strategic external factors makes the organization to grow in

the competitive market. This factor supports the business for having the innovation in the
technology business.
Social: It includes the cultural norms, health consciousness, age, population, health and
safety, etc. These are the important factors which the organization must consider to have good
profit (Thomas and et.al., 2021). There is rise in use of the Apple's mobile by the customers
which increases the revenue of the company. Customers are more dependent on the digital
system, so the organization must satisfy the needs in order to have great strategic management.
Technological: Technological factors includes the innovations and developments in the
products of the company. This organization is very upgraded in order to innovate their products
and technology. As growing in the mobile market and increasing technological integration
creates and opportunity for the organization in order to increase the profitability.
Legal: This factors includes quotas, resources, changes in legislation, access to materials
and taxation. The pressure of the government on the digital technology is increasing on the
companies like Apple Inc. The government may impose the restrictions and which impact the
strategic management decisions of the organization.
Environmental: These factors has direct effect on the surrounding business environment
and has influence on the ecological aspects (Christodoulou and Cullinane, 2019.). Business
sustainability trend is the ecological factor that makes the company to have the sustainable
practices which is basically based on the environmental impact of the business operations.
This analysis involves the macro factors that have the impact on the organization's
strategic management process. The company must follow this factors in order to have good
productivity and profitability in the business.
Analysing the internal environment and capabilities of the organization
Swot analysis- This analysis is very easy and effective method that is used by the
company in order to identify the component for development.
Strengths
These are the positive qualities of the
business and business strategies (Elavarasan
and et.al., 2020). The strength of the
organization is that it is the leading
technology innovator, launch new and
Weaknesses
These are the negative quality that affect the
profitability of the company. The biggest
weakness of the cited organization is that the
prices of the products are very high. By
having the high prices the customers easily

innovative products and having the brand
reputation. The stores of this organization
provides the high-quality of the products to
their customers. Apple is the master of doing
advertisement as it makes the customers
know about there new products in advance.
shift to the other brand. The market share of
the company Si declining as it is only
focused on the IPhone and iPad series. Any
defect in the expensive product may
decreases the reputation of the company.
Opportunities
These are the environmental factors which
benefits the company in order to increase the
sale of products (Abdel-Basset, Mohamed
and Smarandache, 2018). By having high
market share and brand recognition, the
customers are very loyal by suing the
products. The company can launch iTV
which can increase the sales of the Apple
TV.
Threats
This includes the external factors that may
affect the growth of the company. Due to
rapid change in the technology the customers
waits for the new products which decreases
the profitability of the company. The online
music subscriptions such as amazon,
Walmart and Spotify are the big threats for
the organization.
VRIO analysis
VRIO analysis is the analytical technique for having the evaluation of the company's
resources and to have the competitive advantage. VRIO stands for value, Rareness, Imitable and
organization (Indartono and Wibowo, 2017). This analysis helps the organization to map out and
understand the need of the resources that the company want in order to gain the profitability by
having good decision-making. The VRIO of The Apple Inc. are as follows:
Value: Resources of the firm are always valuable till its gives the and makes the
company achieve the competitive advantage. There are many characteristics of the organization
that makes the Apple's to lead in the global market. As it provides the good products, efficiency
of production, timely innovations and customers loyalty.
Rareness: The resources used by the company should be rare. This makes the company
to have good brand reputation in the market. On comparing apple with the other manufacturers

of the electronics, it is so obvious that the organization uses the resources that other companies
do not posses.
Imitable: Valuable and rare resources makes the company engage in the good strategies
that the other firms cannot do that. The competitors will try to take or imitate the resources used
by the organization. The design, product and operating of the system of Apple is totally different
and unique. This requires the huge investments from the other organization in order to intimate
something better.
Organization: By having the proper management in the organization the company can
use and check the resources on continuous basis. The good organizational structure of the
company makes the organization to reach the goals and objectives. There is the good and
pleasant working environment which motivates and encourages the employees in order to
contribute to gain the competitive advantage.
Porter's five forces model to evaluate the competitive forces of the organization
Enclosed in Power point presentation.
Applying range of theories, concepts and models, interpreting and devise strategic management
for organization
Mission of the organization- It refers to the statement that is planned by the company in
order to achieve short-term goals. The mission of the organization is to manage the economic
value of the company. The corporate mission is to have the best computing goods, educators,
engineers, businessman and customers in many countries which is around 140 countries.
Vision of the organization- It refers to the statement which makes the business to plan
by envisage the future market trends in order to achieve the long-term goals. The company must
have the good vision in order to have the good strategic management plan. As the vision of the
organization is to provide the best product with the best quality which must satisfy the wants of
as per they pay.
Porters Generic Strategy
Porter's Generic Strategy refers to the strategy which describes that how the company
will pursue the competitive advantage in the chosen market. There are three generic strategies
which are cost, product differentiation and focus. The following porter's generic strategies are
described below:

Cost: This generic strategy involves the company winning share of the market by having
price-sensitive customers (Islami, Mustafa and Latkovikj, 2020). This is done by the company by
having the lowest prices in the market in order to attract the customers in the target market. The
company lowers the prices while still earning the profitability and have high return on
investments.
Product Differentiation: The company has the strategy to differentiate its product by
managing the risk and make it successful in the market. In this the customers are not price
sensitive as the customers wants the unique and quality resources from the seller. The company
has to manage the uncertain related to the risk as they are not price sensitive.
Focus: This is not the separate dimension for the large companies. Big companies who
use the differentiation strategy may also use the focus strategy along with that.
The cited organization must adopt the product differentiation strategy in order to manage
the risk and uncertainty from the market. As the organization is already have the different
product which manages the company to achieve the organizational goal. The prices of the
products of the organization is very high as compared to other electric brands.
Bowman's Strategic Clock
The Bowman's Clock strategy shows the aspects of the organization can make the
position of its products and services in the market. It has two dimensions first is about the price
and second is about the perceived value of the overall brand. There are 8 position in this strategy
which are as follows:
Low price and low added value: In this strategic position, the company sued to lower
its price in order to compete with its competitors (Echchakoui, 2018). The prices of the services
offered and products is very low.
Low price: The company sued to sell the products at the low prices by having the low
profit margin. The focus in this is to have the cost minimization and sell more products.
Hybrid:This strategic position makes the organization to focus on the aspect related to
product differentiation by which the product is highly valued in the market and in the minds of
the customers whereas the company's focus is on the making the products at low price is hybrid
model.
Differentiation: The company must be focused on the quality of the products and sell the
brand products. The products involve the high quality of products and it is not price-conscious.

Focused differentiation: this position strategy is applicable to those brands that are
focused on the luxury and exclusive products having high quality and sold at high prices in the
market.
Risky high margins: This strategy are often used by the company as in this the company
takes risk. As the position of the company is likely to fail in the long-term.
Monopoly pricing: In this the company's position as the monopoly leader in the market
as they provide the specific product and services which has no substitutes in the market.
Loss of market share: The companies in this strategy position opt for having the
standard prices of their products in order to stay relevant and competitive in the market.
The cited organization can have the focused differentiation strategy which is most
applicable to the brands which are focused in producing the luxury and exclusive products in the
market. By using this position the company can increase its profitability in the competitive
market.
Controlling Measures
The company must have the strategic control by which it can measure and synchronize
the plans of the organization. Apple Inc. can have the good strategic management plan in order
to compete in the market. This makes the organization to mange the risk and uncertainty that
may be arisen in the future. This management plan makes the company to retain its market share
and profitability by providing the quality of goods.
CONCLUSION
From the above report it is summarized the impact of influence of the macro environment
on the company by using the PESTLE analysis including factors like political, economic, social,
technological, legal and environmental. Further this report has evaluated the internal
environmental by using the SWOT analysis and capabilities by using the VRIO model. This
report has described the porter's five forces model in order to evaluate the competitive forces of
the given market of the company including the forces like bargaining power of supplier,
bargaining power of buyer, competitors rivalry, threats of new entrants and threats of substitutes.
At last, this report has summarized the range of theories, concepts and models, interpret and
devise strategic planning for the company.

REFERENCES
Books and Journals
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Thomas, P. J. M. and et.al., 2021. A PESTLE analysis of solar home systems in refugee camps in
Rwanda. Renewable and Sustainable Energy Reviews. 143. p.110872.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Elavarasan, R. M. and et.al., 2020. SWOT analysis: A framework for comprehensive evaluation
of drivers and barriers for renewable energy development in significant
countries. Energy Reports. 6. pp.1838-1864.
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry. 10(4).
p.116.
Indartono, S. and Wibowo, F. W., 2017. VRIO and THES based development of university
competitive advantage model in formulating university strategic plan. International
Information Institute (Tokyo). Information. 20(10A). pp.7275-7283.
Echchakoui, S., 2018. An analytical model that links customer-perceived value and competitive
strategies. Journal of Marketing Analytics. 6(4). pp.138-149.
Online
What is PESTLE Analysis? Everything you need to know about it. 2021. [Online] Available
through: <https://www.analyticssteps.com/blogs/what-pestle-analysis>