Strategic Report: Analyzing Apple's Corporate Strategy via MACS

This report provides a strategic analysis of Apple Inc., utilizing the MACS framework to evaluate the company's corporate strategy and competitive advantages. The report begins with an introduction to Apple, highlighting its innovative products and global presence. A literature review explor...Read More

Strategic Context

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
The background of organization..................................................................................................3
MACS framework.......................................................................................................................4
DATA ANALYSIS.........................................................................................................................6
FINDINGS/RECOMMENDATIONS.............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Apple is the multinational company which is having its head quarters in US. Company is
famous worldwide for its innovative product. They have wide product portfolio which includes
iphone, ipods, ipads, laptop, apple computers etc. product of Apple is almost distributed
worldwide. Its innovative products helps company in getting competitive advantages (Agrawal,
Schaefer and Funke, 2018). They do the work of manufacturing and designing various devices
like mobile phones, mac book etc. company's mission is to provide such devices which is use
friendly and innovative. Company understand their customer value and give good customer
services. This company is futuristic so that is why they already prepared them for 5 G network.
Apple is the largest IT company and also famous company globally. Diversification is their main
business strategy. Company believes that when they will provide diversified products then that
will be helpful in increasing their market share. As it will attract new customers and also help
company in retaining their existing customers.
Company launch such products which is completely new in the market and this can be
done by the company because they are having skilled and knowledgeable workforce. At the time
of hiring only company consider such employees who can help them in bringing innovation in
the company. This report will discuss company's strategy with the help of Macs framework
which will show strength and weaknesses of the company. Using this framework only literature
review will get conducted. Report has also analysed corporate strategy which company is using.
MACs framework model will also applied in this report in order to find out key components.
Report will also provide recommendations to the company for the strategic moves.
LITERATURE REVIEW
The background of organization
Apple is the American multinational technology which have been specializes with
computer software, consumer electronic and many other online services in which the consumer
can easily keep their attraction. As the organization also known as largest world technology
company while by revenue. In the market the company have also expanded their computers sales
and also become more high technology users in the attraction of the customer. The company
have also set up various things for their customer and also make sure for keeping them with
working in high strategy and keep them for long term (Kangyi, 2021). Actually, struggling
company have the success with the various extensive reforms, keep their products focus and

layoffs with very low rate. Later, the Apple have also work on launching iPod and IMac, which
have been opened with the various retailing stores and that could play the important role for
being have some better customer. In upcoming years, stores have been opened in many countries
and that could play the effective role in which the company can take place with better market
position. While having such things the company in last previous year are facing loss due to
having high rate of products and in present time many of the customer are willing to buy the
products with the company name. The organization have also launched many gadgets and many
other electric things in which they keep their main focus towards taking back position in market
and that might be more important for them.
MACS framework
As per Gong and Lee (2021) said that, MACS framework might be important for having
the big investment and that could play the effective role in which the systematic work can
complete. Mckinsey fostered its market enacted corporate methodology (MACS) system, which
responded to that inquiry in an astonishing manner. The undeniable contemplations – the allure
of the business where the unit contends and its seriousness inside that industry are both
pertinent, however the some basic analysis help organization that can extricate best worth from
the business. In event that current proprietor ought be having better business, it presumably
should keep even fair or ineffectively performing unit. Apple should ensure that it might be
mostly ideal proprietor of every one of specialty unit not just clutch units which are solid in
themselves.
According to Xu and et.al., (2020), The MACS framework shows a specialty unit
possible worth as ideally overseen independent endeavour. This actions the ideal worth of
business, here and there it very well may be subjective. At point when more exact data might be
required, the director can utilize the net present worth of the specialty unit and afterward contrast
it and different units. The upward pivot of the MACS lattice estimates a partnership's relative
capacity to extricate esteem from every specialty unit in its portfolio. Off chance that the parent
organization can extricate the most income from specialty unit than should be possible by some
other person, There might be monetary or specialized elements that decide, to one degree or
other, the normal proprietor of specialty unit.
Repetto and et.al., (2021) said that, Since an exhaustive methodology should likewise
help a parent organization win on the lookout for corporate control where specialty units

themselves are purchased, sold, turned off, and taken private a scientific apparatus called the
market enacted corporate procedure (MACS) structure was created. The conspicuous
contemplations the engaging quality of the business where the unit contends and intensity inside
that both are pertinent, yet analysis which Apple can extricate best income sources for business.
In the event that the current proprietor ought to Apple, it most likely should keep even an
unremarkable or inadequately performing unit.
Herzberg and et.al., (2020) view that, this have been also MACS framework might be
also important for which the customer need to take their high product and services for which
company can being prepared. In organization with having different stores as the manager need to
work with the combination in which they are being capabilities for having business units and
make sure for being having some better strategies in which the market position can work. While
having such activities the people can buy their products and services for which the organization
can complete with taking help from the profitable industry. Such kind of activities while this
could be also more possible in having the better goals and objective for which the company can
work and make sure about their customer to stay long term. Macs framework in the organization
play their role for which the ethical issues that can be clear and might be completed the task as
per having the companies policies and complete the goals and objective.

DATA ANALYSIS
Data analysis of Apple company is done is order to identify the kind of corporate strategy
which is used by the company in order to increase their value (Chat, 2021). If talking about
corporate strategy then they company is using winning strategy because they have Apple cloud
and it is the most important thing and that is helping company in getting competitive advantage.
Working with the cloud make everything easy. As radiators are collected with the devices. So
when the cloud is present then the same thing can be accessed easily with the help of iphone,
ipad or apple laptop. Corporate strategy of Apple is to increase their product portfolio. Although
apple has started working in computer industry but the company has grow very much then that
particular industry. Company is manufacturing many products which includes mobile phones,
desktop, laptops, ipods, I pads etc. apple is utilizing economies of scale and also using same
resources for its various products. Company is having capacity to make and design their own
operating system, software, hardware etc. they provide innovative and high quality of services to
their customers which has become core of its corporate strategy. Product differentiation is the
strategy which is used by the company. Apple has introduced so many innovative products that
one can make its list. Ipads can be included in its innovative list. It is first introduced by apple
company only.
It is the device which can store thousands of songs in a single device. Macintosh is their
another innovation (Kaul, 2019). It was the very first computer which has used graphical user
interface. Apple have the ability to make innovative products and that is its core strategy which
helps them in getting competitive advantage. Iphone is also their innovative product. It was the
innovative touchscreen phone which work by just touching the phone. As through touching the
screen only consumer can use phone. It was the first touch screen phone which was not having
keypad anywhere. Cso it can be said that corporate strategy of the company is diversification.
They introduce new products so that can target new customers in order to expand their customer
base. This can be helpful to the company to increase their sales and profits. Apple is considered
as the biggest IT company within world because it has more assets and also generate more
revenue. In the year 2018 net sales of the company has increased to 16% when compared with
2017. They have around 132000 employees. So company is growing in terms of employees and
revenue both. Giving good customer service is also its business strategy.

Customers of company is satisfied from apple products and often upload videos on
various social media platforms. So it can be said that they give value to their customers. Using
apple devices are also very easy. That is why it is having huge customer base. Apple also have
innovative product design because company has hired efficient designer which provide such
product which can improve customer experience. The financial results of the company for the
fiscal year 2020 till September 26, 2020. September quarter revenue of company is $ 64.7 billion
and earnings per share is $ 0.73. despite of covid 19, Apple is ready to launch its innovative
product. Company is having 5 G mobile phone in line up. Apple products are versatile as it can
be used at home, offices or remote learning. Apple never dissatisfied their customers because
every time they fulfil their customers expectations by launching innovative and creative products
in the market. Company is also focusing on making its ecosystem strong. They are following
vertical integration business strategy. Apple is having expertise in its services, hardware and
software. Vertical integration of company is the major factor which is also helping company in
getting competitive advantages. Vertical integration is giving various advantages to the company
(Kodama, 2017). It can be said that apple is having such ecosystem which enables in establishing
vertical integration. Devices of apple and software gets connected easily and both together works
very smoothly. As on various apple devices applications can work and there is not much changes
in user interface. Its ecosystem is also contributing in making closed ecosystem.

FINDINGS/RECOMMENDATIONS
This could be seems that Apple should take major steps towards the customer and make
their better market position. While in which the company also need to work with having some
proper estimation and that might be also essential for knowing about some of the important
things in which the organization can returned all those things which could help them for knowing
about some more effective terms and make sure for being more developed and growth (Sang,
2020). As the organization can hire the some better employee through which they can keep more
terms and make sure about their clients that could stay with them with long term. In such kind of
activities employee turnover can also reduced and that could being so essential for taking some
more benefits and might be helpful for the business occurring from the various things. Apple also
facing various challenges such as navigating trade uncertainty while in which the customer stop
their buying products and services due to having various income sources estimation.
In some recent things this could be also suggested with having some better sources in
which the organization can get some of the big profits. As the organization have also started
selling their products and services to all class level and that could led them for earning some
more better profits. While the company can also adopt many new technology through which that
Illustration 1: Net profit report
source: Wuerthele, M., 2020

could be easier for them in having some more benefits and that could being so important for
them in working with less employee due to having pandemic (Domadenik and et.al., 2020). As
many of the apple user have shifted to the less price electric gadget and that might be playing
more important goals for them in which the organization need to make their strategies. Apple
business chats and that could be consider while having many things and that could also play
more effective terms and make sure for having their goals. In such kind of things the already
with experience and that could being so essential for taking some major steps.
The high item assumption for each new form or model that Apple has made may at last
end up being the organization's greatest shortcoming. Apple has fostered a stunning brand that
might be related with items that work consummately and that are planned so feel both
progressed and regular simultaneously (Lee and et.al., 2020). These elevated standards imply
that Apple cannot toss test items or administrations at the market without harming its image. This
powerlessness to test makes it harder for Apple to advance as quickly as Google does in
administrations space or as quick as Samsung in the equipment space. So Apple needs to rely
upon its authority and workers being so long ways on the ball that the more slow delivery plan
actually brings about Apple driving the market. In such cases the Apple need to make their more
working steps and that might be essential to them in having the better and effective role. While
such kind of activities as the organization need to follow and that could make sure for them in
making their customer with more long term.
The Apple have also pace with more innovation and that could also led them for working
with some having effective place. As the organization can also work with less employee and
adopt more technology through which the settlement about the various things that could be
include and many customer can get attraction (Contreras and McGrath, 2020). Apple can
increased their work with having the better terms and make sure for having the effective role for
which the customer can buy or reach out with their products and services. As the organization
need to find more about their customer needs and many other features in which they can easily
open their store and that could be easier for their customer to visit with having buy for their
products and services.
Innovation and many other technology can be used by the organization for having many
more features as per discussed by the author. While in such kind of activities the company can
keep some offer so that every class or level of people can buy their products and make them with

having profits (Johansson, 2021). This could led them with more benefits and try to make sure
for keeping the goals and objective in which the customer can stay with long term and that could
also help them for knowing about some market trends. In keeping the products with low prices
this could be easier for them in putting some value towards their products and services for which
they are working and keeping them attraction.
CONCLUSION
From the above report it had been concluded that, organization can make more strategies
while through which they can keep their more customer and might be more important for them.
This have been also seems that researcher have found many values added things through which
concepts about the many things that could be essential for them might be clear and that could
play more effective role. While having such things this could also important for having MACs
framework in which the company can invested more and more for having the better effective
goals and objective. While through which the business can be growth and bring out many more
opportunities. In adoption of technology and try to make sure for having some better features that
could be easily try to keep the customer attraction towards the high prices products as well. This
have been also seems that organization could play their effective role for which the business can
take their huge steps in keeping the customer attraction and that could be more importance for
them in knowing about some basis things. In such kinds of activities the growth and that could be
essential for taking major steps and make sure about for having some process for completing the
goals and objective. As the author have also discuss about the better hiring of the employee os
that could keep the company while working with more goals and objective. Along with this also
well by adopting some of the better technology for which the growth and opportunities that could
take place among their work. The customer is known as king of market so for that organization
also need to work with having some better policies and that could essential for taking some
major steps towards the effective role and make sure for completing the effective terms and
condition as per the process.

REFERENCES
Books and journals
Agrawal, A., Schaefer, S. and Funke, T., 2018. Incorporating Industry 4.0 in corporate strategy.
In Analyzing the impacts of Industry 4.0 in modern business environments (pp. 161-176).
IGI global.
Chat, A.B., 2021. Strategic Corporate Communication in the Digital Age. Artif. Intell, 164,
p.244.
Contreras, A. and McGrath, J., 2020. Law, Technology, and Pedagogy: Teaching Coding to
Build a “Future-Proof” Lawyer. Minnesota Journal of Law, Science &
Technology. 21(2). p.297.
Domadenik, P. and et.al., 2020. Innovation for a Greener and More Profitable Future: A
Conceptual Approach. In Challenges on the Path Toward Sustainability in Europe.
Emerald Publishing Limited.
Gong, S. and Lee, C., 2021. Cyber Threat Intelligence Framework for Incident Response in an
Energy Cloud Platform. Electronics. 10(3). p.239.
Herzberg, A. and et.al., 2020. MoSS: Modular Specifications Security Framework.
Kangyi, W., 2021, June. Analysis of Financial Policy at Apple Company in 2020. In 2021
International Conference on Enterprise Management and Economic Development
(ICEMED 2021) (pp. 150-153). Atlantis Press.
Kaul, A., 2019. Culture vs strategy: which to precede, which to align?. Journal of Strategy and
Management.
Kodama, M., 2017. Strategy Transformation Based on Holistic Leadership: A Case Study of
Apple. In Developing Holistic Leadership. Emerald Publishing Limited.
Lee, A. and et.al., 2020. Mapping platform urbanism: Charting the nuance of the platform
pivot. Urban Planning. 5(1). pp.116-128.
Repetto, M. and et.al., 2021. An Autonomous Cybersecurity Framework for Next-generation
Digital Service Chains. Journal of Network and Systems Management. 29(4). pp.1-34.
Sang, Y., 2020. 1. Introduction to measurement technology. In System and Measurements (pp. 1-
26). De Gruyter.
Xu, Y. and et.al., 2020. A Conceptual Framework Toward Understanding of Knowledge
Acquisition Sources and Student Well-Being. Frontiers in Psychology. 11. p.1852.
Online
Johansson, E., 2021. 5 problems facing Apple it won’t talk about at its April event [Online].
Available through: <https://www.verdict.co.uk/5-problems-facing-apple-april-event/>
Wuerthele, M., 2020. Notes of interest from Apple's Q4 2020 and annual earnings report.
[Online]. Available through: <https://appleinsider.com/articles/20/10/29/notes-of-
interest-from-apples-q4-2020-and-annual-earnings-report>
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