Apple Inc. Strategic Management Implementation PDF

Preview

Summary

School of Business Strategic Management by Department “Strategic Implementation” Prepared By: Sobhi Braidy Submitted To: Dr. Razan Al-Masri A Group Project submitted in partial fulfillment of the requirement for the course: Global Strategic Management “IMGT490” Semester-Year Fall 2015-2016 1 Subject...

Description

School of Business Strategic Management by Department “Strategic Implementation”

Prepared By: Sobhi Braidy Submitted To: Dr. Razan Al-Masri

A Group Project submitted in partial fulfillment of the requirement for the course: Global Strategic Management “IMGT490”

Semester-Year Fall 2015-2016

1

Subject: Strategic Management of Apple Inc.

Topic: How Apple Inc. use strategies in different parts of the organization, how they apply the process of each strategy, and their positive effect in the future on the organization.

2

ACKNOWLEDGMENT The report submitted today is a result of collective efforts, there is so many hands stand behind completing it, and thanks for the group members who work hard to give this complete work. Tough words are inadequate to thank our teacher Dr. Razan Masri for stimulating our abilities by assigning us this project, and for her help, guidance, and helpful suggestion, which helping us complete this project in time. Finally, we hope that this project will be an integrated and successful and to obtain impress of the audience.

3

Abstract In our project we start by defining what are a management, a global management, and a strategic management means. And as we know every organization has its own strategies, so we will talk also on how an organization uses strategies, what are the types of these strategies, and when, where, and why they are using them. Our project will focus on Apple Strategies and every type of strategy listed in this project it will focus on Apple how they use them. Also on our project we focus on the Implementation process, where it start, what is the process APPLE Inc. must follow, and how we get a complete Implementation process. And in order to talk about the Implementation process clearly, we had to talk on other strategies process so we define and talk briefly on the formulation process, and the environmental scanning. After we define and talk about some strategies process we start defining and talking about the role of the strategies in the different departments of APPLE Inc. and how its affect the function of APPLE positively in the short-run and long-run term. In the last paragraph we talk about Board of Directors and its role, how their decisions are affect the company, and we finish our project in a small conclusion about the benefits of the strategic management and how it positively affect APPLE Inc. with some useful recommendations.

4

Table of Contents Table of Contents ................................................................................................................................ 1 ACKNOWLEDGMENT................................................................................................ 3 Abstract .......................................................................................................................... 4 Table of Contents ........................................................................................................... 5 List of Figures ................................................................................................................ 7 Outline: .......................................................................................................................... 8 INTRODUCTION ....................................................................................................... 11 Overview of Apple Inc: ............................................................................................... 13 APPLE INC. ................................................................................................................ 13 Strategy Formulation ............................................................................................... 14 Strategy Implementation .......................................................................................... 15 1. Strategy Analysis and Formulation of Apple Inc ................................................ 16 3.

SWOT Analysis for Apple Inc. ......................................................................... 17 1.

Cost leadership strategy: ............................................................................ 22

Advantages of cost leadership: ............................................................................ 23 Disadvantages of cost leadership: ........................................................................ 24 2.

Differentiation Strategy: ............................................................................ 24

3.

Integration Strategy: .................................................................................. 26

Environmental scanning: ............................................................................................. 26 Apple using Porter‟s Five Forces Model ................................................................. 27 APPLE in the Market: .................................................................................................. 29 Apple Strategies in the Market ................................................................................ 29 1.

Apple Branding Strategy ........................................................................... 29

Apple‟s Marketing Mix Strategy (4P‟s): ............................................................. 33

2. A.

Apple‟s Products (Product Mix) ................................................................... 34

B.

Apple Distribution Place: .............................................................................. 34

C.

Apple‟s Promotions (Promotional Mix)........................................................ 35

D.

Apple‟s Prices and Pricing Strategy .............................................................. 35

7P‟s Target Market: ................................................................................................. 36 Importance of strategies in HR Department: ............................................................... 37 We have two types of HR strategies: ....................................................................... 38 Creating an effective structure ................................................................................. 39 The Advantages of an Effective Organizational Structure: ..................................... 39

5

Management Information System (MIS) in Human Resource ................................ 40 Apple's HR Strategies: ................................................................................................. 41 7 Essential steps to build an effective HR Department............................................ 41 4P‟s HR Concept: .................................................................................................... 43 APPLE‟s Board of Director ......................................................................................... 43 Role of the BOD: ..................................................................................................... 45 Conclusion: .................................................................................................................. 46 Recommendations: ................................................................................................... 46 References .................................................................................................................... 48

6

List of Figures Figure 1: ....................................................................................................................... 16 Figure 2: ....................................................................................................................... 21 Figure 3: ....................................................................................................................... 22 Figure 4: ....................................................................................................................... 32 Figure 5: ....................................................................................................................... 33 Figure 6: ....................................................................................................................... 37 Figure 7: ....................................................................................................................... 43 Figure 8: ....................................................................................................................... 44

7

8

Outline: I. Introduction A. Introduction to Management B. Definition of the Strategic Management and Features C. Apple Inc. 1. Executive Summary 2. Introduction II. Strategic Implementation and Formulation of Apple Inc. A. Definitions for both Implementation and Formulation B. Differences between the Implementation and Formulation C. Process of implementation used by Apple III. Environmental Scanning A. definition B. what should be scanned C. importance of environmental scanning D. internal/external IV. Strategic by Departments, Apple Inc. A. The role of strategies in marketing 1. Definition of the strategic marketing 2. Entering Apple Product the global markets 3. Long-term strategy for Apple product distribution B. Importance of strategies in HR department 1. Apple HR strategies 2. 7 Essential steps to build an effective HR Department

9

3. Human Resource Information System V. Role of The BOD In The Strategic Management A. Strategic Decisions B. Evaluation And Benefits VI. Conclusion A. Benefits of The Strategic Management and Its Effect On Apple Inc. Future B. Recommendation

10

INTRODUCTION The word “Management” defined as four major steps, Planning, Organizing, Leading, and Controlling, those four steps defined if corporations manage itself in the right way, but those steps don‟t define the real management completely because the management include the activities and decisions taken by the CEO‟s or leaders that affect the way of managing a corporation. And as we know also, the management includes in it the marketing and innovations. But also we cannot say that we are completely defined the management because it‟s include the “Global Management” that is define how the global companies or the Multi National Corporation (MNC) managed because it‟s not the same way that we manage a small corporation we can use it to manage a Global company, everything will change when we talk about the International Management. The International Management or Global Management is refers to the way an organization manages its business internationally and it will be completely different from the local companies because of the many differences available between countries. And to manage a corporation locally or globally they must have a Strategy to keep them in the front and always differentiated from their competitors. The Strategies or Strategic Planning are the plans that putted by a CEO or BOD and affect positively the performance of the corporation in the future, so we can conclude that the strategic plans are a long-term plans that they must putted to manage a corporation on the long-term and they must contain expectation about future competitions, sales growth, unexpected problems that may face the corporation in the future such as crisis, inflation, deflation etc… also the strategic planning defined as “a set of managerial decisions and actions that determine the long-run performance of a corporation” (Strategic Management and Business Policy, IMGT490, Pearson, 13th

11

edition, Chapter 1, Page 53, 1st paragraph), it includes environmental scanning, strategy formulation, implementation, and evaluation and control.

Objective: Our project objective is to define what are the real mean of the Strategic Management and the role of Strategies used in an organization; also we focus on some strategies process like the Implementation process, define it, and make sure to deliver the right view to the audiences. Purpose: The general purpose of our project is to put our audience in the action of the strategic management and convince them in the importance of strategies in every single decision taken by a CEO, Board of Director, or even by the Top Managers and how it affect the organization positively on the long-run and short-run term. Theoretical Aspect of the Project: “The Strategic Management is a concept promotes a systematic approach to strategy formulation that is founded in the mission, or purpose of the organization and tests the implementation choices and actions of the firm against that mission. The mission forms the direct basis for the specific targets the firm will select and attempt to achieve. It also defines the nature, form and extent of evaluation of the firm and its environment, as well as the nature of the corporate and business level decisions it makes. Finally the mission defines the conditions by which the firm will determine the success of its actions.” Our theory has been taken from an online book his name is “Strategic Management and Competitive Advantage: Concepts and Cases” Barney, J. B. and Hesterly, W.S 2010. 3rd Edition. Prentice Hall, Upper Saddle River, New Jersey.

12

Overview of Apple Inc: Apple Inc is a Multi National Corporation hold in the United States of America; it‟s the 3rd largest technology and services organization and the 2nd largest smart phones organization in the world. According to Reuters, Apple Inc. (Apple), incorporated on January 3, 1977, designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players and sells a variety of related software, services, and peripherals, networking solutions and thirdparty digital content and applications.

APPLE INC. According to Apple Info and Wikipedia websites, Apple Inc. is an American multinational organization located in 1 Infinite loop, Cupertino, California 95014. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976. It was incorporated as Apple Computer Inc. on January 3, 1977 and was renamed to Apple Inc. on January 9, 2007. It was focused firstly on developing and selling personal computer, other related software product, and the electronic product such as MP3 Player and the IPod. Apple main products are the IMac, IPod, IPhone, and the IPad. They are the first company that creates the most successful personal computer ever, and those are some facts about Apple success that can be calculated in 2012. As Apple first quarter report in 2012: “The Company sold 37.04 million iPhones in the quarter, representing 128 percent unit growth over the year-ago quarter. Apple sold 15.43 million iPads during the quarter, a 111 percent unit increase over the year-ago quarter. The company sold 5.2 million IMacs during the quarter, a 26 percent unit increase over the year-ago quarter. Apple sold 15.4 million iPods, a 21 percent unit decline from the year-ago quarter. The Company posted record quarterly

13

revenue of $46.33 billion and record quarterly net profit of $13.06 billion, or $13.87 per diluted share. These results compare to revenue of $26.74 billion and net quarterly profit of $6 billion, or $6.43 per diluted share, in the year-ago quarter.”

Strategy Formulation Strategy Formulation is referred to “as strategic planning or long-range planning, is concerned with developing a corporation‟s missions, objectives, strategies, and policies.” It begins with situation analysis. The process of strategy formulation basically involves six main steps: 1. Setting Organization‟s Objectives 2. Evaluating the Organizational Environment 3. Setting Quantitative Targets 4. Aiming in context with the Divisional plans 5. Performance Analysis 6. Choice of Strategy However the process of formulation can begin using the SWOT Analysis method. “SWOT is a shortcut or abbreviation used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are the strategic factors for a company.” Strategy formulation includes planning and decision making involved a company that developing their own strategic and long-term plans, and its goals and objectives. The formulation is to place the force before the real action, is entrepreneurial activity, emphasize effectiveness, it‟s a rational process, and we have to focus also on that the formulation require someone with greater skills in logic and be initiative in work. All these points show how a formulation strategy works in the real world. But after all,

14

the formulation will be ineffective if it‟s not followed by the second step The Implementation. Strategy Implementation The Implementation strategy is referred to “the sum total of the activities and choices required for the execution of a strategic plans.” It is the process in which objectives, strategies, and policies are put into action after they are formulated. Those are the general steps followed by the implementation strategy: 1. Developing an organization having potential of carrying out strategy successfully. 2. Disbursement of abundant resources to strategy essential activities. 3. Creating strategy-encouraging policies 4. Employing best policies and programs for constant improvement 5. Linking reward structure to accomplishment of results. 6. Making use of strategic leadership So we can see now that the implementation and formulation are two consecutive parts, to do a correct implementation we must firstly have a good work and study the formulation strategy very well, and without a hard work on implementation the whole work in the formulation part will disappear.

Strategy Formulation

Strategy Implementation

Strategy Formulation includes planning and Strategy Implementation involves all those decision-making involved in developing means related to executing the strategic organization’s strategic goals and plans. plans. In short, Strategy Formulation is placing the Forces before the action.

In short, Strategy Implementation is managing forces during the action.

15

Strategy Formulation is an Entrepreneurial Strategic Implementation is mainly Activity based on strategic decisionan Administrative Task based on strategic making. and operational decisions. Strategy Formulation emphasizes on effectiveness.

Strategy Implementation emphasizes on efficiency.

Strategy Formulation is a rational process. Strategy Implementation is basically an operational process. Strategy Formulation requires co-ordination Strategy Implementation requires coamong few individuals. ordination among many individuals. Strategy Formulation requires a great deal of initiative and logical skills.

Strategy Implementation requires specific motivational and leadership traits.

Strategic Formulation precedes Strategy Implementation.

Strategic Implementation follows Strategy Formulation.

Figure 1: Table That show the main differences between Strategy Formulation and Strategy Implementation and what are their conditions to be done correctly. 1. Strategy Analysis and Formulation of Apple Inc A. Apple Vision and mission Statement In the strategy analysis and formulation we have two important parts that we must define them before we start our work on analysing and formulating our work. Those two parts are the Vision Statement and the Mission Statement. The vision statement is the future vision of an organization on what they must have in the future; it‟s somehow the goals of an organization. The mission statement is what an organization has to do in order to achieve their goals or in other word their vision statement. 1. Apple Vision Statement

16

"Man is the creator of change in this world. He should be above systems and structures, and not subordinate to them." Apple goals and objectives are ...