Strategic Management Report: Apple's 5Ps and Whittington's Schools

This report provides a comprehensive analysis of Apple's strategic management, examining its approach through the lenses of Mintzberg's 5Ps and Whittington's four schools. The introduction establishes the significance of strategic management in achieving organizational objectives, emphasizing its role in gaining a competitive edge. The report is divided into two main parts: the first part explores the importance of strategy to managers, utilizing Mintzberg's 5Ps (Plan, Ploy, Pattern, Position, Perspective) and the application of Marshall concepts. The second part delves into Whittington's four schools of strategic thought (classical, evolutionary, processual, and systemic) and their applicability to Apple's strategic decisions. The report underscores that strategic thinking is more important than formulating strategy, and that managers need to focus more on synthesis than analysis. The report discusses Apple's market position, profitability, and challenges in the competitive landscape, including the impact of the iPhone, and how the company can expand into new markets and services. The report also highlights the importance of strategic planning and adapting to market dynamics for continued success, mentioning that the Marshall plan can be a useful tool for strategic planning. The report concludes by emphasizing the need for Apple to expand its business in the market and category to have better business opportunities.

Strategic Management
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TABLE OF CONTENTS
INTRODUCTION.................................................................................................................................. 3
Part 1. Mintzberg 5Ps and its Importance to managers.................................................................3
Part 2. Whittington four school approach to Apple I throne Strategy..............................................7
CONCLUSION.......................................................................................................................................11
REFERENCES..................................................................................................................................... 12

INTRODUCTION
Strategic management is all about managing diverse techniques and tactics which is used by
business organisation in order to meet organisational objectives. It plays a key role in success of every
organisation and provides various opportunities in business practice. It also has direct influence on
the operational activities of business organisation (Baker, 2007). With an improved focus on strategic
management the business firm can attain better competitive advantage.
In this report, learning will focus on work culture of Apple to understand the concepts of
strategic management. It will focus on various models and techniques which can facilitate the
management of Apple to meet organisational objectives. It will also provide information regarding
various factors which can influence the strategic formation within organisation.
Basically the report is divided into two parts. Firstly, the author explains the importance of
strategy to managers with the use of Mintzberg 5Ps theory and application of Marshall Concepts to
the subject matter. Secondly, the author demonstrates Whittington four schools and its applicability
to Apple’s strategy. The whole study reveals that there is no one fit or right strategy to obtain success.
Mintzberg argued that strategic thinking is more important that formulating strategy and managers
need to focus more on synthesis than analysis. This would allow business to grow and develop
effectively if act accordingly.

Part 1. Mintzberg 5Ps and its Importance to Managers
In current market scenario the business firm is high ratio of competition which influences the
business opportunities. In this respect, it is necessary for management of Apple to focus on various
concepts regarding strategies. With an improved focus on Mintzberg 5ps the managers can
accomplish organisational goals in better way and lead business to impressive success (Barnes, 2008).
In the support of this, it can be stated that the classification of five Ps can be as follows;
 Plan
 Ploy
 Pattern
 Position
 Perspective
With an improved understanding regarding diverse P of Mintzberg the management can
develop business strategies in order to have various advantages and improve capabilities. In the
support of this, it can be said that it is necessary for managers to consider strategy as a plan. In this,
management need to focus on planning of actions and techniques in order to have effective outcome
(Huber, 2011). Strategies must be formed as per the consideration of organisational audit and
environmental audit. It will facilitate in effective planning of actions and improve the strategic
opportunities.
Secondly, management need to focus on options regarding ploy in order to meet the
objectives. The classifications of ploy options can be as disrupt, dissuade, discourage. In order to gain
better competitive advantage over competitors (Kimura, 2005). The useful tools are future wheel,
impact analysis, game theory, etc. Other than this, it is also necessary for manager of Apple to focus
on previous patterns and organisational behaviour aspects in order to identify most suitable
strategies. It will facilitate in understand previous issues and spot out strategies to meet
organisational behaviour needs (Slack, 2007).

Moreover, position is another patter to understand and define designed strategy. It facilitates
in exploring the critical factors which relates with the organisation and its environment (Stensaker,
2014). It is also beneficial for effective accomplishment of sustainable competitive advantage. At last,
the choices in which organisation have efforts to understand the culture of organisation. It is way in
which behaviour of workplace has been identified to emerge the strategies and shape better
perspective towards organisation.
Furthermore, while focusing on Mintzberg 5ps it is also necessary for management of Apple to
focus on some other statements. During the collection of information and participating within analysis
number of initiative ideas need to be taken into account to have realistic and practical outcome for
better opportunities (Slack, 2007).
Other than this, it has been spotted that the strategy formation plays a key role in success of
organisation so management must select strategy in appropriate manner. If organisation will have
selection of strategy without any critical assessment of organisational and environmental factors then
company may face some significant issues. Management must focus on organisational and
environmental audit to understand various factors (Kimura, 2005). With an improved level of
knowledge regarding organisational needs, employees needs, market conditions, competitor’s
availability the organisation can easily design strategic plan and lead business to impressive success.
Moreover, it has been witnessed that the planning is one of most critical aspect for effective
formation of strategies. Management of Apple can focus on Marshall Concept of plan which will boost
opportunities in context of planning. It is an economic recovery plan designed and implemented by
the United States to assist with recovery efforts for Western Europe after World War II. It is also
refereed as economic recovery plan which provides effective design of strategies in order to attain
better sustainability within market (Huber, 2011).
As per the structured study of Marshall Plan, management must focus on diverse economic
factors which will provide detailed information about market needs and current position of company
in the competitive market. It is also essential for managers to share information with employees
regarding market conditions and other critical factors so that they can provide various alternative

ways to meet organisational goals. Management must focus on participative culture and behaviour
during the strategic formulation process as it boosts the effectiveness of process (Stensaker, 2014).
Management must analyse the outcomes in appropriate manner and try to improve existing strategy
and overcome issue with a use of alternative strategies.
In the support of this, the Ceo of Tesla has also said that the strategy implementation is
necessary within organisation because it provides excellence in some areas. He has also argued that
strategies can be used in diverse areas such as production, marketing and sales (Satell, 2015). Elon
Musk has said that the every business focuses on the business strategies in diverse manner. If
organisation is looking forward for innovation in product and services then these kinds of operations
also requires strategies in order to meet objectives. Moreover, the manager of BNP has also stated
that the business strategies are critical part of business. Even allocation of financial resources also
requires strategies assistance so that proper budget can be designed for activities (Burke, 2015). Other
than this, Elon Musk has also stated that the strategies are considered as a most valuable factor
within operations as it increases the productivity of both capital as well as workforce. It also plays a
key role in continuous improvement of process. It also allows diverse areas of business firm to
participate in various development actions. Gérardin the manager of BNP has also stated that with an
assistance of strategies the economic conditions can also be evaluated in better way. It provides
better understanding regarding diverse factors of market as well as internal environment.

Part 2. Apple Throne and Whittington’s four schools theory
As per the above case study it can be said that the Apple is one of most profitable organisation
in current competitive market. In other aspect, Apple is also considered as a firm who has made a
huge amount of money in such as short period of time. The profit margin ratio of business is
increasing day by day and company is looking forward to meet the meet new objectives and beats its
previous record of 15.9 billion dollar's (Baker, 2007). It has also been spotted that the company is
attaining highest ratio of profit by its I-phone which has become one of great success in the market. In
current market conditions in every hour one I-phone is sold in the market which increases the
business opportunities and sales ratio of company.
Other than this, Apple is considered as one of world's largest company while considering
market capitalisation as well as its profit margin ratio. In other aspect, it can be said that the
opportunities are increasing day by day but Apple is focusing on old fashioned business model to
amend the business opportunities (Barnes, 2008). Company ensure that they are producing highly
desirable goods at very low operating cost in order to amend the profit margin ratio. Moreover, the
tech industry is also having various advancement in their working to accomplish organisational goals
Tech industry is also focusing on various technological development in context of software (Huber,
2011).
In order to enhance the market opportunities the management of Apple has focused at China
market. It has provided various benefits to business organisation and today company is attaining
highest ratio of profit from the China market. With a launch of iphone 6 the apple has able to enter in
phablet category which has also increased the business opportunities (Kimura, 2005).
On the other side, it has been spotted that the business organisation is attaining high ratio of
profit but company is also facing various issues which impacts its overall performance. In current
market scenario the business organisation has very low market share in Smartphone market. It has
been spotted that the Apple share of Smartphone market is small as compared with devices using
Android and other operating system (Slack, 2007). It impacts the business organisation in negative
manner so in order to reduce the negative outcomes it become necessary for business organisation to

reduce its dependence on iphone. In other aspect, it can be stated that it is necessary for Apple to
expand its business in market and category (Stensaker, 2014). In this respect, the Apple has also
introduced Smart watch which will enhance the business opportunities and lead business to
impressive success.
Other than this, it is also essential for Apple to focus on some other segments in order to have
better business opportunities. Apple must focus on making money by software and other services as
well. It will facilitate in gaining better competitive advantage (Gadde, 2000). Moreover, the effective
development of eco system is also one of great opportunity for Apple which will enhance its brand
image and provide various advantages other than money. It will also facilitate in advancement of
market capitalisation of company and assist in become information technology giants.
Furthermore, in order to overcome the issues and amend the market opportunities it is also
necessary for management of Apple to focus on Whittington’s four schools theory. In the support of
this, it can be said that Whittington’s four schools theory is a strategic theory which focuses on four
key diverse perspectives regarding strategic needs (Hitt, 2012). The classification of four schools of
Whittington’s theory can be as classical perspective, evolutionary perspective, processual perspective
and the systemic perspective.
The classical perspective is all about basic perspective regarding strategic management within
organisation. It focuses on predicting business environment and profit maximisation. In this respect, it
can be said that manager need to focus on key factors like proper allocation of resources for better
management and improvement in services and products. In other aspect, it can be stated that in
classical perspective the manager must have effective control over the allocation of internal and
external resources accessible for firm (Carreno, 2011). Manager can have manipulation of internal
sources of firm in order to have better accomplishment of organisational goals. Strategic behaviour
depends on the rationality, opportunism and self interest.
Moreover, the evolutionary perspective means the manager of Apple need to focus on
behavioural differences among firms. In other aspect, it can be said that it is necessary for
management to ensure that the decision makers are having correct information about market trends

and behaviour of information technology firms in current competitive market (Cole, 2003). Company
can analyse its competitor’s products and services in order to understand their behavioural aspects.
Other than this, organisation can also have comparison of all behavioural aspects and evaluate
services in better way. In other aspect, it can be said that the decision on rational calculations can be
best example of evolutionary perspective. It will facilitate firm in attaining better growth and have
effective market selection mechanism (Debrah, 2013). It is one of most beneficial and critical aspect to
have better survive in competitive market. In this support it can be said that in order to have better
evaluation of performance the management can focus on various determination actions like random
events, feedback process, etc.
Furthermore, processual perspective means management need to focus on economic outcome
and factors in order have better opportunities and lead business to impressive success. It is necessary
for management to ensure that the all economic aspects and predications are considered in
appropriate manner to boost success ratio (Jones, 2009). In this, management also need to focus on
proper interaction between individuals and organisational environment. Company can also
understand the culture and social life of employees and then compare it with organisational culture. It
will provide information regarding various critical aspects which influences the overall performance
(Richard, 2001). It is also necessary for management to focus on rationality aspect during the
interaction process and motive must not only to understand self interest but also to understand
collective bargaining and compromise concepts.
Other than this, systemic perspective indicates that the three other schools of Whittington’s
theory show the narrow view of the world. In this, management can focus on various rationality in
order to amend the business opportunities and accomplish organisational goals in better way. In the
support of this, it can be said that the management of Apple can focus on various rational aspects in
better way by focusing on systemic perspective (Jarzabkowski, 2008). The classification of factors can
be as historical, social and cultural, with an improved knowledge about these aspects the
management can attain better growth ratio. It also indicates that the strategic behaviour relates with
the network of social relations which covers cultural norms, class and educational background, etc
(Whittington, 2010).

In the support of above statements it can be said that the success of every organisation
depends on the rationality of various factors. It is necessary for business organisation to focus on
various factors which can influence the organisational behaviour and lead to effective
accomplishment of goals. It has been spotted that the company can also focus on ability
enhancement. It is necessary for management to focus on effective development of skills which can
provide adequate resources and provides better support to new strategy initiatives (Whittington,
2011).
In other aspect, it can be stated that the company must have appropriate allocation of diverse
factors which provides significant strength to the strategy execution process. If company will decide to
change the strategy then management requires effective resource allocation and organisational units
requires effective focus on proper funding in order to carry out effective strategic plan (Hoerst, 2009).
It will facilitate in effective and efficient accomplishment of organisational goals.
In the support of this, it can be said that the organisation needs accurate budget. In this
respect, the effective controlling over financial resources is essential in order to have effective
management directives and execution of selected strategy (Jelenc, 2010). It will also provide
advancement in profit margin ratio and lead business to impressive success. It has been spotted that
the effective control over budget and other resources is one of most powerful tool for first rate
strategy execution. In this regard, the effective understanding of financial and economic condition is
also required in order to reduce the waste of resources.
Moreover, number of new initiative must be taken into account for effective implementation
of strategies. It is necessary for management of Apple to focus on effective execution of selected
perspective and allocate resources to all concern departments in effective manner. Initiatives and
effective allocation are considered as most strategy driven factors which also provides effective
integration to diverse operational actions (Hansen, 2011). In the support of this, it can be stated that
the management can have effective cost cutting in operations and perform value chain activities in
better way. It also allows to work as per determined benchmarking in respect of industry competitors.
It is also beneficial for effective development and accomplishment of efficient competitive advantages
(Whittington, 2009).

As per the above statements it can be said that with an improved focus on Whittington’s four
schools theory the management of Apple can have advancement in its services and lead business to
impressive success. According to structured study of Whittington’s four schools theory it has can be
said that the all four perspective are differ from each other and focuses on diverse factors (Siwatu,
2009). Some perspective focuses on general elements of business strategy in order to meet the
organizational objective. It is mostly refereed as classical perspective.
Other than this, evolutionary perspective focuses on detailed evaluation of various process
and aspects which can influence the overall operational actions of Apple. In this, it has also been
identified that the management must take strategic decisions with an assistance of relationally
calculated information (Whittington, 2009). It is also necessary for management to have effective
focus on feedback system as it provides enhanced level of support to evaluation process and make
understand about the critical factors.
Moreover, processual perspective is all about focusing on various factors which can enhance
the integration among all members. It allows to have better focus on various human resource aspects
and environmental conditions in order to design better strategies (Hansen, 2011). Furthermore, the
systemic perspective is a combination of various factors and perspective which allows management to
consider diversified aspects in order to meet the organisational objectives. Company can focus on
historical, social and cultural factors for better strategic management and improvement in services
(Jelenc, 2010).
Classical perspective is one of most suitable perspective of whittingtons four schools theory
which provides number of advantages to firm in form of monetary aspects. With an assistance of
internal and external resources management of Apple can design strategies in effective manner and
meet the needs of customers (Hoerst, 2009). It allows to improve the organisational structure and
profit ratio which is beneficial to have impressive success. It also provides better understanding about
various internal and external factors accessible within market and facilitate in effective development
of product and services.

Other than this, company can also analyse the previous strategies and factors to understand
the strategic management. It also decreases the cost of labour by reducing the needs of training and
development program (Whittington, 2011). Moreover, the improved level of information regarding
diverse internal and external factors the organisation can also attain better profit margin ratio.
CONCLUSION
As per the above study it can be concluded that the strategic management is organisational
process in which management focuses on various tactics and factors which can improve organisational
performance. Apple is having great profit margin ratio but company is facing some issues which will
influence its long term opportunities. It has been spotted that with an assistance of Whittington’s four
schools theory the management of Apple can easily overcome the issues and lead business to
impressive success.