Strategic Management Analysis Report for Apple Inc. - December 2019

This report, prepared by a Junior Manager at Apple Inc., provides a comprehensive strategic analysis to support product selection and launch decisions. It begins with an overview of Apple Inc., followed by an application of various strategic management frameworks. The report includes stakeholder mapping, PESTLE analysis, and an examination of the internal environment using SWOT and VRIO/VRIN frameworks. It then applies Porter's Five Forces model to evaluate the competitive landscape and utilizes Ansoff's growth vector matrix and Bowman's strategy clock for strategic planning. The report also includes a balance scorecard and strategic priorities and objectives. Finally, it offers a conclusion based on environmental and competitive analyses, providing strategic directions, objectives, and tactical actions. The report aims to provide a detailed strategic plan to enhance Apple Inc.'s competitive edge and market position, based on the analysis of internal and external factors.

INTERNATIONAL SCHOOL OF MANAGEMENT AND TECHNOLOGY
GAIRIGAUN, TINKUNE, KATHMANDU,
NEPAL
QUALIFICATION Pearson BTEC HND in Business
UNIT 2 QFC LEVEL 4
Unit code K/508/0574
Assessment No: 01Session Year December 2019
Teacher Name: Hema Poudel
Student name: Manish Bajgain

Table of Contents
Introduction......................................................................................................................................2
Applying appropriate frameworks, analyzing the impact and influence of the macro environment
on a given organization and its strategies........................................................................................2
Stakeholders’ mapping.............................................................................................................2
PESTLE...........................................................................................................................................4
Political........................................................................................................................................4
Economic.....................................................................................................................................4
Social............................................................................................................................................4
Technology...................................................................................................................................4
Legal.............................................................................................................................................5
Ecological.....................................................................................................................................5
Critically analyzing the macro environment to determine and inform strategic management
decisions..........................................................................................................................................5
Analysis of the internal environment and capabilities of a given organization using appropriate
frameworks......................................................................................................................................6
SWOT analysis................................................................................................................................6
Strength........................................................................................................................................6
Weakness.....................................................................................................................................6
Opportunity..................................................................................................................................6
Threats..........................................................................................................................................6
VRIO/VRIN framework..................................................................................................................7
Critically evaluating the internal environment to assess strengths and weaknesses of an
organization’s internal capabilities, structure and skill set..............................................................7
McKinsey 7S Framework............................................................................................................7
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for
an organization.................................................................................................................................8
Balance scorecard........................................................................................................................8
Five forces analysis..........................................................................................................................9
Buyers power...............................................................................................................................9
Suppliers’ power..........................................................................................................................9
Threats of new entry..................................................................................................................10
Threats of substitution................................................................................................................10

Competition................................................................................................................................10
Key determinants.......................................................................................................................10
Devising appropriate strategies to improve competitive edge and market position based on the
outcomes........................................................................................................................................10
Ansoff’s growth vector matrix...................................................................................................10
Applying a range of theories, concepts and models, interpret and devise strategic planning for a
given organization.........................................................................................................................11
The plan......................................................................................................................................11
Porters’ generic strategy.........................................................................................................11
Extended model of Bowman’s strategy clock............................................................................12
Producing a strategic management plan that has tangible and tactical strategic priorities and
objectives.......................................................................................................................................13
Priorities and objectives.............................................................................................................13
Critique and interpreting information and data applying environmental and competitive analysis
to produce a set of valid strategic directions, objectives and tactical actions................................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

I am working as a Junior manager for an Apple Inc., which is one of the
fastest growing automobile companies. Here I have prepared a report which will provide support
to my manager in selecting a product and helps in launching a new product of the
company.
Overview of an organization
Steve Jobs and Steve Wozniak, two college dropouts, created Apple Computers, Inc. on April 1,
1976 and headquartered in California, USA. Apple Computer, Inc. designs, manufactures, and
markets personal computers, software, networking solutions, and peripherals, including a line of
portable digital music players. Apple's product family includes the Macintosh line of desktop and
notebook computers, the iPod digital music player, the Mac OS X operating system and so on.

Introduction
The plans are created using a variety of principles of strategic management. These factors can be
used to create a variety of strategic priorities and objectives that will benefit companies like
Apple Inc. To stay competitive, Apple Inc. will need to develop a differentiation strategy. The
importance of company strategy cannot be overstated in today's corporate world. Because
business responsibilities are so vital to understand, the entire study was built around Apple Inc.,
one of the most well-known business producing companies in the system. They will not be
persuaded, and they do not have the same level of curiosity as young people who do not utilize
Apple Inc. products. On the other hand, addressing needs will be difficult because their effect
will be greater than that of interests. They are customers or consumers who are easily able to
switch to other parties. There have been various ideas applied to internal and external analysis.
On the other hand, this entire study includes a strategic appraisal of the product.
Applying appropriate frameworks, analyzing the impact and influence of the macro environment
on a given organization and its strategies
There have been various effects on Apple Inc. that have been confirmed by the macro
environment. Any company organization can comprehend their needs and how these needs are
vital thanks to the macro environment's function. A company like Apple Inc. can easily construct
a very powerful system based on their grasp of the macro environment, which will aid in their
continued development as well as the improvement of organizational efficiency. Apple Inc. can
also ensure goal-meeting actions to surpass market competitors with a thorough comprehension
of all of these beliefs. As a result, Apple Inc. will be able to work perfectly within the system.
Stakeholders’ mapping
As is well known, stakeholders can include a wide range of people who are involved in the
operations of a firm (Bohoris et al., 2016). As a result, any party who is influenced by Apple
Inc's activities is referred to as a stakeholder. There was a diagram, and with its help, analysis
and understanding of the stakeholders could be accomplished.

Figure; Stakeholders’ matrix (Li, 2015)
In the analysis, it was discovered that there will be various dimensions that must be meticulously
organized and maintained. Apple Inc. employs individuals from different walks of life. There are
four different aspects to it, according to the study. The major players are the most powerful and
have the greatest vested interests. They are the government, law enforcement agencies, and so on
for Apple Inc. If the product's effect is diminished while strong interest is maintained, potential
customers of Apple Inc. products will be attracted.
If both interest and effect are reduced, the least important dimension is created, in which true
product understanding is not presented in a clear manner. They will not be persuaded, and they
do not have the same level of curiosity as young people who do not utilize Apple Inc. products.
On the other hand, addressing needs will be difficult because their effect will be greater than that
of interests. They are customers or consumers who are easily able to switch to other parties.

PESTLE
PESTLE is a model that can help you understand the role of the external environment in the
context of Apple Inc. There have been a number of components that have the ability to give and
deliver distinct aspects of the market and firm. As a result, putting PESTLE analysis into practice
will be critical.
Political
It has been observed that Apple Inc. is enduring a slew of political ramifications and systemic
adjustments. As a result, governments are increasingly intimately involved in Apple Inc.'s
operations. Apple Inc's actions have been effectively patronized by the government. They also
have a strong working relationship with political parties. This is how Apple Inc.'s political efforts
are matched.
Economic
Apple Inc. has been linked to a number of business-related actions. The economic impact is so
significant that the roles are becoming more secure. Apple Inc. was able to generate a revenue of
35 billion dollars last year, which is the biggest in the market. On the other hand, Apple Inc. will
have to deal with other concerns as well because they have considered staff occupation (Bates et
al., 2017). Employees are also contributing to the goal-setting activities. As a result, the
economic understanding becomes more secure and well-managed. They have, nonetheless,
contributed a significant amount to Nepal's GDP.
Social
Apple Inc. will also have to cope with a number of social challenges. They will have to cope
with society's citizens. They were able to retain a solid relationship with the system's social
parties. This is an excellent example of the role of social parties. Apple Inc., on the other hand,
has a very low customer turnover rate and a customer satisfaction score of over 80%. Apple Inc.
has been able to set the standard on a flawless line by participating in numerous corporate social
activities.
Technology
There will be numerous technological comprehension requirements in this scenario. Apple Inc.,
as a manufacturer of technical devices, will have to handle technological challenges flawlessly.
Organizational efficiency can be readily assured once they are able to control technological

comprehension. Apple Inc. is able to minimize costs while also enhancing consumer satisfaction
thanks to their superior technological grasp.
Legal
Apple Inc. will have to deal with the legal aspects as well in this case. There have been a number
of legislation and practices associated with the legal aspects. According to Apple Inc's grasp of
all of these legal concerns, the company will have to approach the system with caution. Apple
Inc., on the other hand, has a legal branch within the company that deals with legal issues. As a
result, it has been properly controlled by Apple Inc.
Ecological
Apple Inc's activities, in actuality, do not impair any aspect of the environmental system. Apple
Inc. was named the Green Company in 2015 for its dedication to environmental protection.
They're also keeping an eye on a few key issues in this area that could be crucial (Pennington and
Hammersley, 2017). Apple Inc., on the other hand, is closely monitoring all of these
developments.
PESTLE analysis can so be carried out in this manner.
Critically analyzing the macro environment to determine and inform strategic management
decisions
Strategic management decisions will undoubtedly be accelerated at the top level as a result of
PESTLE analysis. The PESTLE analysis' various strengths and shortcomings can be used to
make better strategic management decisions. PESTLE is a model that can help to understand the
role of the external environment in the context of Apple Inc. There have been a number of things
that can influence and supply various aspects of the market and firm. PESTLE analysis gives
data on numerous major areas of the external environment that might aid in understanding the
business situation.
On the other hand, it ignores the international market context, in which all PESTLE elements are
subject to rapid change. PESTLE's changes in elements are difficult to predict, which is one of
its main drawbacks. The five forces model, on the other hand, is utilized to comprehend all

aspects of rivals' perspectives. In the five forces model, there are a number of blind spots, such as
ignoring technological and other globalization developments. These are the five forces model's
basic disadvantages in this situation. An organization's strategic decision-making can be
demonstrated in this way.
Analysis of the internal environment and capabilities of a given organization using appropriate
frameworks
Internal analysis will be necessary in order to comprehend internal capabilities. An internal study
examines a company's competence, cost position, and competitive viability in the marketplace.
Measures that provide relevant information about the organization's strengths, weaknesses,
opportunities, and dangers are frequently included in internal analyses. With all of this in mind, it
is reasonable to conclude that the internal environment plays a critical role.
SWOT analysis
Strength
Apple Inc. will have a number of strengths that must be carefully managed. This will provide a
very powerful and clear picture of Apple Inc's strong zone. They have a solid operational
structure in place. They may easily generate a quality and effective product with the support of
that operational structure (Oliver et al., 2018). They were also able to lower the cost of
production. Because the cost of production will be reduced, it will be possible to significantly
enhance profit.
Weakness
Apple Inc. will also have to deal with the issue of flaws. There could be a slew of complications
that are linked to the deficiency. Apple Inc. has a relatively high staff turnover rate. Because of
the low level of satisfaction, there is a significant rate of staff turnover. On the other hand,
employees' skills have not been developed, and Apple Inc. has not introduced any new
technology in almost 6 years.
Opportunity
Apple Inc. will also have a plethora of opportunities within the system, each of which will play a
critical role. Apple Inc. is necessary to hold numerous opportunities in this circumstance, such as
working efficiency. They were able to retain a solid relationship with the system's social parties.

This is an excellent example of the role of social parties. It is one of the most critical
opportunities for Apple Inc.
Threats
Several dangers have been discovered in Apple Inc's system, according to the company's
examination. The cost of raw materials has risen dramatically in recent days. This is why it can
pose a significant concern. Another significant threat that has emerged in the system is Brexit. It
is a very serious political danger that might stymie Apple Inc.'s progress.
VRIO/VRIN framework
When it comes to gaining a better understanding of internal resources, the VRIO and VRIN
frameworks can be extremely useful. VRIO is part of the internal analysis phase of these
procedures, but it's also utilized as a framework for analyzing a company's resources and
capabilities, regardless of which phase of the strategic model it's in (Bailey and MacNeill, 2018).
“Is this resource or capability valuable to the firm?” is one example of a value inquiry.
The question of rarity can be phrased as "Is the company's resource rare?"
“Do firms lacking a resource or competence have a cost disadvantage in acquiring or growing it
relative to firms that already have it?” is a question that can be asked about imitability.
“Is the corporation capable of arranging competitive advantage?” is an example of an
organizational question.
So, in the case of the VRIO/VRIN and so on, this is the most significant framework available.
With the use of this research, it can be determined that Apple Inc.'s resources are valued and
scarce, posing competitive advantage difficulties. However, Apple Inc. will be at a disadvantage
if they do not have access to a single resource. Apple Inc. can maintain a competitive advantage
for a long time if all of these factors are properly recognized.
Critically evaluating the internal environment to assess strengths and weaknesses of an
organization’s internal capabilities, structure and skill set
McKinsey 7S Framework
It's a powerful framework for determining the level, forces, and sources of internal power within
an organization's structure. These can be used with a variety of different effects. This was a

strategic vision for enterprises, business units, and teams as a whole. Structure, strategy, systems,
skills, style, staff, and shared values are the seven Ss. However, it is currently being used to
determine the amount of internal analysis (Clegg et al., 2013).
Figure; McKinsey 7S Framework
Apple Inc.'s structure is extremely crucial to follow because they function with a three-layer
approach. On the other hand, they have a plan to operate as efficiently as possible and as soon as
possible. They share a vision that has been passed down to the other partners in the system. Their
working system is extremely efficient, and their working style is extremely adaptable. They have
highly skilled staff who are well-versed in a variety of technological areas. This is how they are
able to resolve these issues within the Apple Inc. system.
Applying Porter’s Five Forces model evaluate the competitive forces of a given market sector for
an organization
Balance scorecard
The management performance tool will be well interpreted in this analysis. With the
comprehension of the vision and strategy analysis, four perspectives will be stated. Apple Inc.'s

internal process, organizational policy, financial, and customer relationships are all precisely and
completely aligned with the strategy and vision. There will be numerous activities of the goal
meeting statement as a result of the alignment.
Figure; Balance scorecard
Five forces analysis
Apple Inc. will need to arrange numerous understandings in this field for the five forces study.
Porter's Five Forces Framework is a technique for assessing a company's competitors. It uses
industrial organization economics to derive five forces that determine the competitive intensity
of an industry and, as a result, its profitability attractiveness. Apple Inc. may also be able to
make use of a number of things similar to this.
Buyers power
The power of purchasers for Apple Inc. was extremely high in this analysis. The buyer's
influence has been significant in this system, since the industry has a vision to work in
accordance with the needs of the customers.