Strategic Analysis of Apple Inc. and Expansion Strategies in Austria

This report provides a comprehensive strategic management analysis of Apple Inc., focusing on its potential expansion into Austria. It begins with an introduction to strategic management and its application to Apple Inc., emphasizing the importance of internal and external environmental factors. The report then delves into an internal audit of Apple's Austrian subsidiary, examining its products and services, management of business operations, tangible and intangible assets, organizational capabilities, and overall environment. A SWOT analysis is included, highlighting the company's strengths, weaknesses, opportunities, and threats. The report then discusses the external audit, analyzing the social, economic, and environmental factors influencing Apple's operations. Suggestions for business operations are provided. The report concludes with recommendations for strategic planning and management, providing insights into how Apple Inc. can effectively expand its business in Austria and maintain its competitive advantage in the global market.

STRATEGIC
MANAGEMENT AND
ORGANISATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background.................................................................................................................................1
1) INPUT STAGE (INTERNAL AND EXTERNAL AUDIT).......................................................2
INTERNAL AUDIT.......................................................................................................................2
SWOT analysis:..........................................................................................................................5
Porter's five factors' analysis:......................................................................................................6
EXTERNAL AUDIT.......................................................................................................................7
2) MATCHING STAGES ANALYTICAL TOOLS ....................................................................11
3) DECISION STAGE...................................................................................................................11
SUGGESTIONS FOR BUSINESS OPERATIONS......................................................................11
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

ILLUSTRATION INDEX
Illustration 1: Apple Inc...................................................................................................................2
Illustration 2: External environmental factors.................................................................................7

INTRODUCTION
Strategic management involves analysing organisation's performance and preparing
strategies on the basis of analysis for effectiveness of entity. It is essential for recognising
internal and external environmental factors as well executing plans for further business activities.
The present report is based on understanding strategic management tools for Apple Incorporation
situated in USA and planning to expand its current business operations in Austria. Therefore,
internal and external audit for its subsidiary company in Austria is to carry out for preparing
strategies regarding business operations and its proper expansion. In addition to this, strength and
weakness of entity according to environmental factors are to be described. Moreover, different
suggestions have been recommended for strategic planning and management. Thus, students are
able to understand several aspects of strategic management and for enlargement of Apple Inc.
through this assignment.
Background
Apple incorporation is world's largest public-sector company in information and
telecommunication sector. It is headquartered in California that develops and designs computers
and mobile services which have unique quality features also demanded at high level. Including
this, it also provides online services for mobiles and computers including iTunes Stores, iOS App
store, Mac App store and iCloud etc. It is founded by Steve Jobs in April 1976 and known
worldwide for its services till today. However, brand loyalty is quite high and it sustains its
effective goodwill in global market (Bettis and et.al., 2016). In addition to this, it has about 500
retail stores across USA till now.
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1) INPUT STAGE (INTERNAL AND EXTERNAL AUDIT)
INTERNAL AUDIT
Internal audit of any organisation and its operations is related to identifying its resources
and capabilities for business operations and their management. It involves all planning and
strategic tools regarding company's potential quality features used for business operations
(Daspit and et.al., 2017). On the basis of analysis all of these factors which can be controlled
over are analysed that impacts on business operations. In the given case, internal audit for
subsidiary entity of Apple in Austria is to be carried by which innovations can be implemented
for its expansion effectively. In addition to this, internal tools of organisation are analysed for
further decision-making process. It is essential for identifying actual position of entity and its
potential for operating further business activities. However, company's profit over time and
competitive advantage is analysed. Let us analyse the internal factors of subsidiary of Apple in
Austria as:
 Product and services: Apple provides telecommunication services to millions of
customers across Austria. It is known for its services and also demand for its products is
at highest level. Including this, it provides Mac book, iPhone, iTunes and other
telecommunication services effectively (Fynn and et.al., 2016). In addition to this, its
customer dealing services are also attractive however, its employees provide details of
2
Illustration 1: Apple Inc.
(Source: Apple Inc,. 2016)

goods and services provided by Apple very effectively. Moreover, for online marketing
of mobile and computers, it reaches to its customers as frequently as possible. Along with
this, as per customers' feedback, it is analysed that quality features of products including
size, range and profitability attracts them a lot, also demand for its goods is rising
continually. It influences productivity and profitability of entity also satisfies its
consumers with services.
Management of business operations: It includes analysing production and distribution
of services practiced by it and its system for managing goods and creating a healthy working
environment within organisation. Through analysing management system of Apple in Austria, it
is recognized that resources are used in optimum manner as well its services are effective for
customer dealing (Hill, Jones and Schilling, 2014). In addition to this, it has adequate fund for
operating further business activities and creating expansion in its operational efficiently. In
addition to this, it has to be analysed that company's workers deal with its customers effectively
so as to achieve customer delight. Along with this, as per analysing its environment, it is
recognised that there is harmonic and almost friendly environment of organisation also less
conflicts arise among employees. Moreover, according to its financial report analysis, it is
observed that company has achieved proper growth in its economic position and has been
successful in boosting up of profits. Thus, it is audited that organisation's financial and non-
monetary tools are managed effectively which in turn also impacts on its productivity and
profitability for further business operations. Tangible assets: Tangible assets are those which are physical that which can be felt and
touched. However, Apple provides goods as mobile, computer, MacBook, iPads etc.
these are goods whose services can be analysed and control also affects further business
operations and their management. Therefore, by analysing products provided by entity,
varieties of ideas are generated for creating innovations and increasing its qualities (Rees
and et.al., 2017). For analysing tangible assets, complete quality features are identified
including size, shape, quality, quantity and so on. However, it is determined that
customers demand for Apple products is high because of its goods' physical lookout.
Most of the consumers are attracted towards size and shape of iPhones. It presents
effective demand for goods and services also influences marketing and competitive
strategies to face competition and sustaining its position in market for long time period
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 Intangible assets: These assets cannot see and feel but plays role in management of
business operations of Apple entity and its environment for providing its goods and
services. It involves brand names, patents, goodwill etc (Vogel and Güttel, 2013).
However, Apple's products are world famous, highly demanded, and its brand name has
an intense impact in information and communication sector. It shows that organisation
has effective goodwill in international market also demand for its quality services is quite
effective which is good for marketing and competitive strategies. In addition to this, its
products are demanded as brand also customers get proper satisfaction with its product’s
services.As per analysing this factor, organisation's market position is quite well that
affects further business operations and its environment for producing goods and services.
Hence, Apple can expand its business operations in Austria effectively that will be
effective to improve profitability and maintaining customer loyalty towards its products
at high level. Organisation's capabilities: It involves skills, routine, management and leadership of
entity by which further decisions are made regarding business operations (Bettis and
et.al., 2016). Therefore, all of these factors that influences productivity and profitability
of services are analysed for enlargement of business operations of Apple. In accordance
to this, it is recognised that organisation has effective potential to improve its financial
position and competitiveness on large scale. However, it has capacity to enhance
innovations in its business operations and expansion effectively. Thus, as per internal
business activities' management analysis, it is forecasted that in future time period, this
innovative creation will be get succeed. However, it will be able to enhance its
marketing and competitive strategies for long time period. Including this, customers'
attraction and loyalty towards its services would be maintained effectively.
 Environment of organisation: For creating innovation in business operations for Apple,
it is required to recognise its environmental factors which are controllable. For example;
management of business operations, production and distribution of goods and services
provided by entity, employees' performance and working in a group etc. Therefore,
organisation's environmental analysis is needed for further operations and maintain its
good reputation for long time period. Thus, according to analysing this internal factor of
Apple's subsidiary in Austria, it is recognised that atmosphere of entity is quite well. It
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influences profitability and able to increase in brand loyalty towards product services
provided by it (Fynn and et.al., 2016).
 Thus, it is analysed that internal environmental factors are effective that approaches to
create innovation and increasing its profitability at high level. Apple should expand its
business operations in Austria according to its market position in UK that will be
effective for proper growth and sustaining its position for long time period efficiently
(Hill, Jones and Schilling, 2014).
SWOT analysis:
Strengths:
 Strong financial position therefore
Apple can create new innovations.
 Effective goodwill in market also
customers are satisfied with services
provided by entity.
 There are several numbers of Apple's
store worldwide.
Weaknesses:
 High price of goods and services.
 Apple faces cut throat competition
therefore sustaining its market position
is quite difficult.
Opportunities:
 To adopt innovative techniques for
increasing in quality services of
products provided by Apple.
 To prepare and implement strategies for
advertising its products for pulling
customers on large scale.
Threats:
 Facing competition.
 Attracting customers towards high cost
of Apple's products.
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Strength: It is analysed that organisation's financial position is quite effective therefore it
can create innovations in business operations effectively. Similarly, it is wide spread organisation
which shows good reputation in global market in telecommunication sector (Fynn and et.al.,
2016). Therefore, on behalf of this analysis, it can forecast that in future time period, entity can
improve its profitability and competitiveness at higher level for long time period.
Weakness: It is a kind of critical evaluation on business operations involves
competitiveness and other factors which can control over. It is determined that price of goods
and services provided by Apple is quite high by which all customers are unable to afford.
Opportunities: It is sources for improving services of entity by adopting new technologies
and conducting market research to analyse customers' requirements towards services provided by
Apple plc. Therefore, by grabbing these opportunities, several strategies can be implemented that
affect business operations and its competitiveness in market for long time period (Grant, 2016).
Threat: It shows different difficulties and possibilities that can occur for Apple plc's
operations. In this analysis, it is identified that competitiveness and achieving customers'
satisfaction is threat for the entity which required to be reduced as well preparing strategies for
improving business operations effectively (Hill, Jones and Schilling, 2014).
Internal audit of business operations identifies nature and role of internal assessment in
strategic plans and proper management of its activities. It influences culture and functions of
marketing for producing and distributing goods properly (Yamak, Nielsen and Escriba, 2014).
However, funding and its related decisions are made for effectiveness of entity and improving its
services.
Critical evaluation on internal outcomes: As per critical evaluation of business
operations of Apple inc in Austria, it is evaluated that cost of products is quite high that all the
customers are not able to afford. It is because of effective quality material used in product
services. Therefore, demand for mobile and computers get affected related with productivity of
entity. However, its high cost of products affect market demand and consumers' interest towards
brand. Including this, it is also recognised that there is high level of competition remains in
telecommunication sector. For example; Google, Samsung, Lenovo etc. who implement different
strategies for growth and attracting people globally (Burrell and Morgan, 2017). In this regard,
facing competition remains difficult also inappropriate to sustain its market position for long
time period. Thus, it is needed to prepare strategy for customer satisfaction at maximum level
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and maintaining their attraction towards product services. However, advertising quality features
used in mobile and computers are required for Apple. Therefore, for facing competition and
sustaining good market position, it is essential for Apple to look at all sights including internal
and external factors' management critically.
EXTERNAL AUDIT
External audit is helpful for competitive intelligence, gathering information regarding
social, economic and environment which affects business operations and its implementation.
Therefore, gained information should be assimilated and evaluated for further activities.
Moreover, it is useful for analysing cultural, demographic and natural forces of different
countries. Thus, on the basis of these assessments, different strategies can be implemented for
competitiveness and long term sustainability in market.
Political environmental factors: It includes factors as changes tax rates, interest rates
etc that affects further business operations and organisation's effectiveness. However, changes in
these rates impact on entity's financial performance affects business and competitive strategies.
As, increasing rates affects economic position negatively while increasing in them impacts
positively. For analysing current political environmental factor of Apple plc, it is identified that
at present these rates are moderate and effective for which entity can operate new entity in
Austria. It can be forecast that project plan would be succeed for which its profit earning
capacity can be increased as well better services can be provided to country's people effectively.
Porter's five factors' analysis:
Threat of new entry In current era, demand for products provided by Apple is quite
high but for creating innovation in business operations, it is
needed to consider new entry of its goods as well of competitive
entity's (Riff, Lacy and Fico, 2014).
Supplier power Relationship with Apple's supplier is good therefore, it can
create new innovations in business operations regarding
expansion in Austria.
Threat of substitution There is always risk of product substitution of products provided
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by Apple therefore analysing market position and all other
entities' performance is necessary (Rees and et.al., 2017).
Buyer power Products of Apple are highly demanded therefore it can forecast
that creating innovation in business operations would be
succeed.
Competitive Rivalry There is cut throat competition available in global market for
making place and attracting customer. Thus, using different
strategies are essential for competitive advantages and
sustaining in global market for long time periodicity (Vogel and
Güttel, 2013).
Barriers encounter in implementation of strategies for Apple plc: There are different
barriers obtained for business operations and its expansion. As per the case scenario, it is
evaluated that difficulties occur in implementing strategies for operating new store in Austria can
be understood as below:
 Competitiveness and may achieve non-successive in business operations for innovation.
 Different countries have various policy plans to be followed on for international
businesses (Young and Gandrud, 2013).
 Changes in customers' interest regarding product services in information and
communication sector.
 It will be difficult for apple to thrive without Steve jobs.
 Steve's was a leader with strong vision, a man knew the technology, the market, the art
and has the efficiency of creating effective and innovative products.
 Changes in economic policies and technologies for producing goods and services
provided by entity (Hill, Jones and Schilling, 2014).
 Lack of experience regarding business operations and getting adjusted according to
changes.
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 Requirement of large capital which remains unable to afford adequately.
 Possession of patents
 Undesirable locations (Rees and et.al., 2017).
Above mentioned barriers are occurred in business implementations of strategies that impacts on
further operations. However, due to changes in external environmental factors as economic
policies and so on. In addition to this, due to mismanagement in business activities, internal
environmental factors get affected. Therefore, occurred barriers are required to be overcome and
improving financial position of the entity through preparing strategies and implementing them
efficiently.
 For overcoming above mentioned barriers, analysing market position is needed critically
however systematic plans can be made regarding further operations.
 Through adopting new technologies, better quality of product services can be obtained
efficiently.
 Using advertising tools appropriately is required to attract people on large scale to
purchase goods.
 Setting time to reach out set target smartly would be able to overcome barriers and
improving services and profitability systematically.
2) MATCHING STAGES ANALYTICAL TOOLS
There are different strategic options are presented for innovation in business operations in
Austria. However, some alternatives can be understood as below:
 Advertising products and services provided by Apple in more attractive manner to pull
customers on large scale.
 Analysing Austria market and demand for Apple's products critically in all terms
including socio-cultural, economic, environment etc.
 Attracting Austria peoples towards innovation and their favour for business expansion as
well aware customers globally for its online services.
 Boston Share matrix: It is used for analysing business units and product line remains
helpful to allocate resources adequately that affects productivity and profitability of
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