Business Strategy Report: Apple's Strategic Planning Analysis

This report provides a comprehensive analysis of Apple's business strategy. It begins with an introduction to strategic planning, discussing how missions, visions, objectives, and core competencies inform the process. The report then delves into factors influencing strategic plans, such as competition, socio-cultural environments, and employee skills, followed by an evaluation of techniques like the Ansoff matrix and stakeholder analysis. A SWOT analysis assesses Apple's strengths, weaknesses, opportunities, and threats, providing a basis for strategic positioning. An environmental audit examines political, economic, social, technological, legal, and environmental factors impacting Apple. The report also presents a new strategy for the organization, justifies its selection, and outlines the implementation process, including roles, resource estimation, and the use of SMART targets to achieve strategic goals. The report concludes with a summary of findings and a reference list.

BUSINESS STRATEGY
STUDENT NAME:
STUDENT ID:
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Table of contents
Introduction...................................................................................................................... 3
Task 1: Understand process of Strategic Planning..........................................................3
1.1 Assessing how missions, visions, objectives and core competencies inform the
strategic planning.............................................................................................................3
1.2 Factors that have to be considered for formulating the strategic plans......................4
1.3 Evaluating the effectiveness of techniques that are used for developing the strategic
plans................................................................................................................................ 5
Task 2: Ability in formulation of a new strategy................................................................6
2.1 Analyzing the strategic positioning by carrying out organizational audit....................6
2.2 Carrying out the environmental audit...................................................................8
2.3 Assessing the significance of stakeholder analysis............................................10
2.4 Presenting new strategy for the organisation.....................................................10
Task 3: Understanding the approach to strategy evaluation..........................................10
3.1 Analysing the alternate strategy of the organisation..............................................10
3.2 Justification of selecting the strategy by organization..............................................11
L04 understanding the implementation of chosen strategy............................................11
4.1 The roles and responsibilities of the charged personnel for implementation of the
strategy.......................................................................................................................... 11
4.2 Estimation of resource for implementing of new strategy for the given organization12
4.3 Strategy implementation achievements based on the contribution by SMART
Targets........................................................................................................................... 13
Conclusion:.................................................................................................................... 14
Reference List................................................................................................................ 15
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Introduction
The main aim of this particular assignment is to get a proper knowledge about the
different aspects of the business strategy and after that provide a suitable business
strategy for Apple in order to make their business profitable. In this assignment, the
process of strategic planning is discussed. In the development of the strategic business
plans the effectiveness of the techniques is also discussed in this assignment. The
strategic positioning and the environmental audit of Apple is also analyzed in this
assignment. The significance of the stakeholders of Apple is also analyzed in this
assignment. The different approaches to the strategy evaluation are also discussed in
this assignment. The justification of strategy selected for Apple is also discussed in this
assignment. The implementation of the chosen strategy is also discussed in this
assignment.
Task 1: Understand process of Strategic Planning
1.1 Assessing how missions, visions, objectives and core
competencies inform the strategic planning
According to Haines (2016, p.35), the strategic planning of the organization is greatly
depended on the missions, visions, objectives and the core competencies. The mission
of the organization plays a major role in the in making of the strategic planning of the
organization. It also assists in meeting the demands of the customer and the different
stakeholders of the organization. The mission of the Apple assist in creating a value for
their customer, make the customers loyal to the organization and to grow the share of
the organization in the market (David et al. 2016, p. 10). This helps in making a strategy
so that the customer base of Apple always remains high. The vision of the organization
helps to identify the future aims of the organization. It assists in identification of the
benefits and the growth of the organization. The vision of Apple is to make the services
of the organization in the worldwide level. It helps in making a strategic planning so that
the guidelines that Apple desire to achieve in a specific period of time helps Apple to
grow its core business. The different stages to achieve the goal of Apple help the
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organization in becoming a leading business. The core competencies of Apple are to
make the business exceptional among its competitors. By creating an exceptional
business among the competitors, helps Apple to create a brand image among the
customers and achieve their loyalty on Apple. The vision, objectives and the core
competencies help the Apple to make such a strategic plan that provide tough
competition to the competitors by providing high product value to the customers in a
specific period of time (Ward and Peppard, 2016, p.25).
1.2 Factors that have to be considered for formulating the strategic
plans
Competition
Apple faces high competition in the market from Samsung and Lenovo. Samsung is
providing a high product value to the customer. The market share of Samsung has
increased from 20.4 % to 23.7% from 2015 to 2016. The market share of Apple has
decreased from 18.7% to 15.4% from the 2015 to 2016. The market share of Samsung
has increased as it implements the customer ideas. Samsung incorporates innovation
for the development of the product. In order to implement the customer ideas and to
develop the product, Apple has to understand the needs of the customer. Apple can
spot the new trends ahead of its competitors like Samsung and Lenovo. This helps in
making Apple to know the customer ideas and implement the ideas. By fast responding
to the needs of the customer Apple might develop a positive response among the
customers and increase its market share (Thomas and Alluru, 2016, p.9).
Socio Cultural Environment
Apple is facing difficulty in finding the target customers for its product. Samsung is
highly successful in determining the target customers for its product. Apple is losing the
market among the middle class and the lower class due to its high price. Samsung
products are much cheaper than the Apple products. Due to this reason, Apple has a
strong market in the metropolitan areas where a large number of rich persons live.
Samsung is popular in both the middle income and the high income group. Petrides et
al. (2016, p.36) stated that, Apple has to make its products cheaper without
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compromising its value. This helps in making of the product popular among the target
customers. Apple has to develop its feature that is more popular among the target
customers.
Skills of the Employees
The Technical skills of the employees in Samsung are better than that of the Apple
team. Due to this reason the product development is better in Samsung than in case of
Apple. Between the years of 2014 to 2016 Samsung has innovate many new products
in demands of the target customers without reporting any faults. This is possible due to
an effective technical team. Samsung also has an effective advertising team that is
capable to market its product. Apple in order to develop the advertising and technical
skills of its employees has to train them effectively in the changing market. Apple has to
guide and monitor the activities that are performed by both of its technical and
advertising team. This may help Apple to provide competition to Samsung.
1.3 Evaluating the effectiveness of techniques that are used for
developing the strategic plans
According to Abou-Moghli (2016, p.5360), Ansoff matrix is an existing marketing
strategy that helps Apple in increasing its market share and help in decision making of
the development of its products. There are four strategies of Ansoff Matrix. They are
Diversification, Market Penetration, Market Development and Product Development.
Apple follows Diversification and Product Development to develop the strategic plans.
Diversification is taken by Apple as it helps Apple to develop its products in a different
way that their competitors are doing. It helps in innovating of new features to its
products provide a competition in the market. Product Development helps Apple to
develop new products and services and place it in the existing markets. Apple could
diversify its existing products like MacOS by incorporating new features to it. Apple is
facing difficulty in implementing the Market Penetration and Market Development. The
reason for difficulty in implementation of Market Penetration is because it involves
increased promotion of the existing products. Apple is finding it difficult to lower the
prices of its existing products and increasing its promotion. There also lies the difficulty
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of selling the existing products in the new markets. Apple faces the difficulty in finding
the target customers in the new market. Due to this reason, the Market Development
strategy is difficult to be implemented by Apple.
Pearlson et al. (2016, p.44) mentioned that stakeholder analysis is a marketing strategy
that identifies the individuals and groups that are affected by the change in decision by
Apple company. The cooperation between the various stakeholders and the team is
maintained by the stakeholder analysis. The two types of stakeholder in the Apple team
are the internal and the external stakeholders. The internal stakeholders of the company
are its employees and managers. The external stakeholders of Apple are its customers.
The current situation of the Apple is due to the satisfaction of its external stakeholders.
Apple has developed a approach to address the interest of its external stakeholders.
The external stakeholders present their views on the Apple and Apple addresses the
interests of the stakeholders. The internal stakeholders are not satisfied with the Apple.
Apple is not able to provide compensation and job security to its employees that are
causing the dissatisfaction of its internal stakeholders.
Task 2: Ability in formulation of a new strategy
2.1 Analyzing the strategic positioning by carrying out organizational
audit
Haroun (2016, p.71) mentioned that Apple follows a strategy to maintain the profit level
by investing their money in some other products. In other words Apple tries to innovate
new products while not disturbing the existing products. The strategy of Apple includes
investing high in the research and development of its products. This strategy makes
Apple to make a much stronger position in the market. Apple also makes sure that the
products that are delivered from its own stores. In order to analyze the strategic position
of Apple in the market SWOT analysis is done for Apple.
Strength
● Attractive products and services.
● Products are more convenient and
Weakness
● Expensive products of Apple.
● iPhone’s restriction to download
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user friendly.
● Stable economic position in the
market.
● Collaboration with big companies
files to mobile.
● Low amount of iPhone operators.
● Restricted offer of DRM - Free
Tracks on iTunes.
Opportunities
● The user friendly products have a
great popularity among the users.
● The collaboration with the big
company gives a huge opportunity
for diversification emerging with
the different industries.
● The stable economic position of
Apple helps to maintain the growth
of Apple.
● The Attractive products and
services have a huge demand
among the user.
Threat
● The expensive products of Apple
are a setback for the lower and the
middle income group people.
● There is a possibility of low market
share of Apple due to its iPhone
restriction to download files to
mobile.
● There is a limited choice of
network operators because of low
amount of iPhone operators.
● The users could switch to other
operator if there is continuous
restriction on the DRM-Free Tracks
on iTunes.
Table 1 SWOT Analysis
(Source: Smith,2016)
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Based on the SWOT analysis, Apple must follow a strategy where it provides its
services at a lower price. Apple must remove the restriction from the DRM - Free
Tracks. It should continuously invest in the Research and Development and should
collaborate with the higher companies for continuous diversification and emergence.
2.2 Carrying out the environmental audit
The environmental audit of Apple gives the impacts of the Political, Economic, Social,
Technological, Legal and Environmental factors.
Political Impact
Apple dominant position in the the music industry could limit its market share in the
future. Apple high dependence on China for its manufacturing could cause trouble for
Apple in times of Political unrest in the country.
Economic Impact
Poff and Schmidt (2016, p.1100) stated that the increase in the labor cost in the
developing countries might affect the cost advantage of Apple products. The rise in
value of the US Dollars makes it difficult for Apple to operate in Asia and European
Countries.
Social Impact
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There is a huge distrust among the customers of many countries due to the expensive
products. The potential customers of Apple of many countries could be offended due to
the association with China.
Legal Impact
By offering the various financial services, Apple might face a high level of Legal
Implications. There is an increased level of regulation and government oversight due to
transaction by Apple Pay.
Technological Impact
The growing demands of Smartphone and tablets lower the demand for Apple’s PC thus
reducing the sale of Apple’s PC. The increase in the number of cyber attacks takes
away one of the strongest advantage of Apple PC’s that is high security.
Environmental Impact
The disposal of Apple batteries is a biggest environmental concern for the company.
The effort to cut the Greenhouse gases could increase the electricity rates and
manufacturing costs of Apple.
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Figure 2: PESTLE Analysis
(Source: Haines, 2016 )
2.3 Assessing the significance of stakeholder analysis
Stakeholder analysis holds a great significance for Apple. The analysis significantly
impacts the business of Apple. The perception of the customers and the sales from the
different products is greatly impacted. Smith (2016, p.140) mentioned that the
stakeholder analysis helps Apple in formulation of its strategies and policies. The
stakeholder Analysis helps Apple in developing a price strategy for the organization.
The interests of the customers are greatly met by the Stakeholders analysis done.
Apple also meets the needs of the investors that help Apple to become one of the
leading companies in the world.
2.4 Presenting new strategy for the organization
In order to continue as a leading company, Apple has to develop a strategy that
emphasize on more of the advertisement and promotion of the product. Apple should
also focus on the Research and Development of its product. It increases the innovation
of the product in accordance to the needs of the customers. The strategy must also
stress on the demands of the customer that is required for the innovation.
Task 3: Understanding the approach to strategy evaluation
3.1 Analyzing the alternate strategy of the organization
Smith (2016, p.140) mentioned that there are alternative strategies that could be
implemented by Apple. Apple could devise a strategy of Franchising in response to the
entry in the market. Franchising helps in the rapid expansion of Apple markets. As
Apple have a strong brand name that could be utilized internationally and nationally.
The growth strategy of Apple is required to be organic that makes Apple to acquire 1
company every year. By using the Organic Growth, Apple could spend heavily on the
Research and Development of its products. The Organic Growth indicates the real
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growth of the Apple. The substantive growth of Apple can be done by acquisition and
merger with another company. Franchising is one of the tools of substantive growth.
The limited growth strategies if implemented make Apple to implement the Market
Penetration, Market Development, Product Development and Innovation. The limited
growth strategies help Apple to compete in the market with its competitors. In case
Apple is facing with losses then it could cut some expenses or reduce something. It is
usually referred as Retrenchment. In case Apple needs money in a fast manner then it
could switch to Divestment. It is also helpful when there is a poor strategic fit for the
Apple.
3.2 Justification of selecting the strategy by organization
According to Haroun (2016, p.71) mentioned that the strategies taken by the
organization are very helpful as it has implemented some organization personnel who
can make the employee motivated towards the work and can yield better productivity.
The target setting of the job is to complete the job within specified time and execute the
same in proper way. According to Verbeke (2013, p85), the personnel has implemented
a proper communication process through which the employees can understand the
organization and the nature of project so as to do the job in specified way of job that the
organization need from the employees. The strategies taken by the organization are
very much justified and are implemented for the better yield of the business and proper
running of the organization.
L04 understanding the implementation of chosen strategy
4.1 The roles and responsibilities of the charged personnel for
implementation of the strategy
The charged personnel have some responsibilities towards the organization.
Communicating the plans of the organization by setting goals and communicate about
the same to the employees are prior role of the personnel. He has to put resources to
the employees and explain the processes for the same and do transmit the overall view
to the working team. According to Hoejmose et al. (2013, p.610), the personnel do
communicate well and this refers to the explanation of work to a understandable
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manner and the employees do proper comprehension with the personnel. He uses the
layman communicating terms while communicating with the workers. Proper
communications of him are very small and have digestible words that are tested to
understand before the task move on for processing.
The personnel have other role of giving out of the job assignments to the employees. A
proper delegation ensures good implementation of business strategy. The manager is
responsible for the picking of the people with teams that are best suited for the projects.
He does take pressure for discovering different segments of the processes and
understand the scope for such implementation. He has the role to implement mini
leaders for splitting the jobs that are easy to manage to complete the total project. The
organization has to monitor the job execution done by the employees. According to
Buckley et al. (2016, p.78), there has to keep the document processing carefully and
rectify the problems of the employee facing any sort of difficulty. He has the role to take
care of the employees to manage the employees and involve the leader who is joining
to work for proper managing of the work.
Another most important role of the organization personnel is to encourage the staff in a
correct attitude. Encouraging the employees for processing the job is very much needed
to ensure for a proper job execution. For this purpose the personnel has to become the
role model of the organization and look after the employees in a friendly manner. These
are the roles and responsibility of the personnel for managing the projects and the jobs
for proper business yield with the interest of employees as without the employee
interest the job cannot be done properly.
4.2 Estimation of resource for implementing of new strategy for the
given organization
Implementation is the process which turn strategies and the process this to action to
accomplish objective strategy and targets. Critical actions need to implant for plan
related to the strategy and is important. There should be strategy with estimated budget
for the proposed project. Employee incentives are to be implanted within the target
strategy. Pagani (2013, p630), stated that many organization personnel does spend
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less than an hour to discuss the plan of strategy however it must be more to avoid the
failure of the project. The employee of the organization does not understand the
strategy of the organization which is a great issue for the proper yield from the business.
There must be some proper way to make the employee understand about the strategy
of the company and this would help the employees work in a proper way of work to
execute the job for a proper business by the organization.
4.3 Strategy implementation achievements based on the contribution
by SMART Targets
Implementations of strategy based on the SMART targets are:
Setting targets are easy however difficult to gain them- the target of the job has to be
specific and need expression on it in the positive terms. Realistic targets are gained
targets however unrealistic targets are only dreams (Jayaram et al. 2013, p.710). There
should be target that is started in a timely manner and end up with the job within the due
date.
The targets need to be share with some people who are concerned with the job role- the
job description does need to understand by the leader employee who involve the worker
for completion of the job. There need to gather everything that is needed for the
execution of the job before the job is started so as to do the job without any problem.
There must be minimum potential challenges- to achieve target there need to produce a
measurable, complete and action plan which are necessary to gain the target.
According to Slack (2015, p.59), regular evaluation of the job makes it easier to
complete the target in proper way and finish within the given time. There should be a
proper system to support the job and provide advice by receiving feedbacks.
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Activity Week 1 to
week 3
Week 4 to
week 6
Week 7 to
week 10
Roles and responsibility of organization
personnel
Source to implement new strategy
Contribution by SMART to achieve targets
Gant chart
(Created by self)
Conclusion:
The study is helpful to conclude elements of any organization are designed in very way
so as to execute in a proper way of strategy. It is explained the process to divide the
employees for increasing the work efficiency and the effectiveness of starting point for
further complex decision which lead to create organization charts. There should be
some proper business strategies taken by them to improve the functions of the
organizations. The legal factors of the business would take an vital decision for the
implementation into the organizational structure.
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