Strategic Management Assignment-apple 6n336w

APPLE INCORPORATION

The Company Profile

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 History 1976-1980: The Early Years Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne to sell the Apple I personal computer kit. The kit were built by Wozniak and first shown to the public at the Homebrew Computer Club. The Apple I was sold as a motherboard (with U, RAM and basic textual video chips) –less than what is today considered a complete personal computer. The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,723 in 2012 dollars, adjusted for inflation)

The Apple I, Apple's first product, was sold as an assembled circuit board and lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and a wooden case

Apple was incorporated January 3rd, 1977 without Wayne, who sold his share of the company back to Jobs and Wozniak for $8--. Multi-millionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple The Apple II was introduces on April 16th , 1977 at the first West Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET, because it came with character cell based color graphics and an open architecture. While early models used ordinary cassette tapes

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as storage devices, they were superseded by the introduction of a 5 ¼ inch floppy disk drive and interface, the Disk II The Apple II was chosen to be the desktop plsttform for the first ―killer app‖ of the business worldthe VisiCalc spreadsheet prodram. VisiCalc created a business market for the Apple II, and gave home s an additional reason to buy an Apple II – Compatibility with the office. According to Brian Bagnall, Apple exaggerated its sales figures and was a distant third place to Commodore and Tandy until VisiCalc came along.

By the end of the 1970s, Apple had a staff of computer designers and a production line. The company introduced the ill-fated Apple lllin May 1980 in an attempt to compete with IBM and Microsoft in the business and corporate computing market.

Jobs and several Apple employees including Jef Raskin visited Xerox PARC in December 1979 to see the Xerox Alto. Xerox granted Apple engineers three days of access to the PARC facilities in return for the option to buy 100,000 shares (800,000 split-adjusted shares) of Apple at the preIPO price of $10 a share. Jobs was immediately conviced that all future computers would use a graphical interface (GUI), and development of a (GUI began for the Apple Lisa. In 1980, Apple went public, generating more capital than any IPO since Ford Motor Company in 1956 and instantly creating more millionaires (about 300) than any company industry.

1981-1985: Lisa and Macintosh Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed from the Lisa team due to infighting, and took over Jef Raskin's low-cost-computer project, the Macintosh. A turf war broke out between Lisa's "corporate shirts" and Jobs' "pirates" over which product would ship first and save Apple. Lisa won the race in 1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles.

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Apple's "1984"

television

ad,

set

in

adystopian future modeled after the George Orwell novel Nineteen Eighty-Four, set the tone for the introduction of the Macintosh

In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial "1984". It was directed by Ridley Scott, aired during the third quarter of Super Bowl XVIII on January 22, 1984 and is now considered a watershed event for Apple's success and a "masterpiece".

The first Macintosh, released in 1984

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The Macintosh initially sold well, but follow-up sales were not strong due to its high price and limited range of software titles. The machine's fortunes changed with the introduction of the LaserWriter, the first PostScript laser printer to be offered at a reasonable price, and PageMaker, an early desktop publishing package. The Mac was particularly powerful in this market due to its advanced graphics capabilities, which had necessarily been built in to create the intuitive Macintosh GUI. It has been suggested that the combination of these three products was responsible for the creation of the desktop publishing market.

In 1985 a power struggle developed between Jobs and CEO John Sculley who ahd been hired two years earlier. The Apple board of directors instructed Sculley to ―contain‖ Jobs and limit his ability to launch expensive forays into untested products. Rather than submit to Sculley‘s direction, jobs attempted to oust him from his leadership role at Apple. Sculley found out that jobs had been attempting to organize aputsch and called a board meeting at which Apple‘s board of directors sided with Sculley and removed Jobs from his managerial duties. Jobs resigned from Apple and founded NeXT Inc. the same year.

1986-1993: Rise and Fall Having learned several painful lessons after introducing the bulky Macintosh Portable in 1989, Apple introduced the PowerBook in 1991. The Macintosh Portable was designed to be just as powerful as a desktop Macintosh, but weighed 7.5 kilograms (17 lb) with a 12-hour battery life. The same year, Apple introduced System 7, a major the operating system, which added color to the interface and introduced new networking capabilities. It remained the architectural basis for Mac OS until 2001.

The success of the PowerBook and other products brought increasing revenue. For some time, it appeared that Apple could do no wrong, introducing fresh new products and generating increasing profits in the process. The magazine MacAddict named the period between 1989 and 1991 as the "first golden age" of the Macintosh.

Following the success of the Macintosh LC, Apple introduced the Centris line, a low-end Quadra offering, and the ill-fated Performa line that was sold in several confusing configurations and software bundles to avoid competing with the various consumer outlets such as Sears, Price Club, and Wal-Mart, who were the primary dealers for these models. The result was disastrous for Apple as consumers did not understand the difference between models.

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The Macintosh Portable was Apple's first "portable" Macintosh computer, released in 1989.

During this time Apple experimented with a number of other failed consumer targeted products including digital appliances.

cameras, portable

Enormous

resources

CD were

audio also

players, speakers, video invested

in

the

consoles

and TV

problem-plagued Newton

division based on John Sculley's unrealistic market forecasts. Ultimately, all this proved too-littletoo-late, as Apple's market share and stock prices continued to slide.

Apple saw the Apple II series as too expensive to produce, while taking away sales from the low end Macintosh. In 1990, Apple released the Macintosh LC with a single expansion slot for the Apple IIe Card to migrate Apple II s to the Macintosh platform. Apple stopped selling the Apple IIe in 1993.

Microsoft continued to gain market share with Windows focusing on delivering software to cheap commodity personal computers while Apple was delivering a richly engineered, but expensive, experience.[53] Apple relied on high profit margins and never developed a clear response. Instead they sued Microsoft for using a graphical interface similar to the Apple Lisa in Apple Computer, Inc. v. Microsoft Corporation. The lawsuit dragged on for years before it was finally dismissed. At the same time, a series of major product flops and missed deadlines sullied Apple's reputation, and Sculley was replaced by Michael Spindler.

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1994-1997:Attempts Reinvention By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as the A/UX. Apple had also begun to experiment in providing a Mac-only online portal which they called eWorld, developed in collaboration with America Online and designed as a Mac-friendly alternative to other online services such as Compve. The Macintosh platform was itself becoming outdated because it was not built for multitasking, and several important software routines were programmed directly into the hardware. In addition, Apple was facing competition from OS/2 and UNIX vendors like Sun Microsystems. The Macintosh would need to be replaced by a new platform, or reworked to run on more powerful hardware.

The Newton was Apple's first foray into the PDA markets, as well as one of the first in the industry. Despite being a financial flop at the time of its release, it helped pave the way for the Palm Pilot and Apple's own iPhone and iPad in the future.

In 1994, Apple allied with IBM and Motorola in the AIM alliance. The goal was to create a new computing platform (the PowerPC Reference Platform), which would use IBM and Motorola hardware coupled with Apple's software. The AIM alliance hoped that PReP's performance and Apple's software would leave the PC far behind, thus countering Microsoft. The same year, Apple introduced

the Power

Macintosh,

the

first

of

many

Apple

computers

to

use

Motorola's PowerPC processor.

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In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many changes at Apple, including extensive layoffs. After multiple failed attempts to improve Mac OS, first with the Taligent project, then later with Copland and Gershwin, Amelio chose to purchase NeXT and its NeXTSTEP operating system, bringing Steve Jobs back to Apple as an advisor. [59] On July 9, 1997, Gil Amelio was ousted by the board of directors after overseeing a three-year record-low stock price and crippling financial losses. Jobs became the interim CEO and began restructuring the company's product line.

At the 1997 Macworld Expo, Steve Jobs announced that Apple would Microsoft to release new versions of Microsoft Office for the Macintosh, and that Microsoft made a $150 million investment in non-voting Apple stock. On November 10th , 1997 Apple introduced the Apple Inline Store, tied to a few build-to-order manufacturing strategy.

1998-2005: Return to Profitability On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh 128K: the iMac. The iMac design team was led by Jonathan Ive, who would later design the iPod and the iPhone. The iMac featured modern technology and a unique design, and sold almost 800,000 units in its first five months.

Through this period, Apple purchased several companies to create a portfolio of professional and consumer-oriented digital production software. In 1998, Apple announced the purchase of Macromedia's Final Cut software, signaling its expansion into the digital video editing market. The following year, Apple released two video editing products: iMovie for consumers and, for professionals, Final Cut Pro, which has gone on to be a significant video-editing program, with 800,000 ed s in early 2007. In 2002 Apple purchased Nothing Real for their advanced digital compositing application Shake, as well as Emagic for their music productivity application Logic,

which

led

to

the

development

of

their

consumer-

level GarageBand application. iPhoto's release the same year completed the iLife suite.

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Apple retail stores allow potential customers to

use floor

models without

making

a

purchase.

Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released on March 24, 2001, after several years of development. Aimed at consumers and professionals alike, Mac OS X aimed to combine the stability, reliability and security of Unix with the ease of use afforded by an overhauled interface. To aid s in migrating from Mac OS 9, the new operating system allowed the use of OS 9 applications through Mac OS X's Classic environment.

On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California. On July 9, they bought Spruce Technologies, a DVD authoring company. On October 23 of the same year, Apple announced the iPod portable digital audio player, and started selling it on November 10. The product was phenomenally successful — over 100 million units were sold within six years. In 2003, Apple's iTunes Store was introduced, offering online music s for $0.99 a song and integration with the iPod. The service quickly became the market leader in online music services, with over 5 billion s by June 19, 2008.

Since 2001 Apple's design team has progressively abandoned the use of translucent colored plastics first used in the iMac G3. This began with the titanium PowerBook and was followed by the white polycarbonate iBook and the flat- iMac.

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2005-2007: The Intel Transition At the Worldwide Developers Conference keynote address on June 6, 2005, Steve Jobs announced that Apple would begin producing Intel-based Mac computers in 2006. On January 10, 2006, the new MacBook Pro and iMac became the first Apple computers to use Intel's Core Duo U. By August 7, 2006 Apple had transitioned the entire Mac product line to Intel chips, over one year sooner than announced. The Power Mac,iBook, and PowerBook brands were retired during the transition; the Mac Pro, MacBook, and MacBook Pro became their respective successors. On April 29, 2009, The Wall Street Journal reported that Apple was building its own team of engineers to design microchips. Apple also introduced Boot Camp to help s install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.

The MacBook Pro (15.4" widescreen) was Apple's

first

laptop

with

an Intelmicroprocessor. It was announced in January

2006

and

is

aimed

at

the

professional market.

Apple's success during this period was evident in its stock price. Between early 2003 and 2006, the price of Apple's stock increased more than tenfold, from around $6 per share (split-adjusted) to over $80. In January 2006, Apple's market cap sured that of Dell. Nine years prior, Dell's CEO Michael Dell said that if he ran Apple he would "shut it down and give the money back to the shareholders. Although Apple's market share in computers had grown, it remained far behind

competitors using Microsoft Windows, with only about 8% of desktops and laptops in the US.

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2007-2011: Widespread success Apple achieved widespread success with its iPhone, iPod Touch and iPad products, which introduced

innovations

in mobile

phones,

portable

music

players and personal

computers respectively. In addition, the implementation of a store for the purchase of software applications represented a new business model. Touch screens had been invented and seen in mobile devices before, but Apple was the first to achieve mass market adoption of such a interface that included particular pre-programmed touch gestures. The company's global prosperity was continuing when its co-founder and chief executive officer Steve Jobs died, and some speculated that this would lead to Apple's days of technological innovation and compelling product design to become things of the past.

Delivering his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc., because computers were no longer the main focus of the company, which had shifted its emphasis to mobile electronic devices. The event also saw the announcement of the iPhone and the Apple TV. The following day, Apple shares hit $97.80, an all-time high at that point. In May, Apple's share price ed the $100 mark.

In an article posted on Apple's website on February 6, 2007, Steve Jobs wrote that Apple would be willing to sell music on the iTunes Store without digital rights management (DRM) (which would allow tracks to be played on third-party players), if record labels would agree to drop the technology. On April 2, 2007, Apple and EMI tly announced the removal of DRM technology from EMI's cata the iTunes Store, effective in May. Other record labels followed later that year.

In July of the following year, Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch. Within a month, the store sold 60 million applications and brought in $1 million daily on average, with Jobs speculating that the App Store could become a billion-dollar business for Apple. Three months later, it was announced that Apple had become the thirdlargest mobile handset supplier in the world due to the popularity of the iPhone.

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On December 16, 2008, Apple announced that after over 20 years of attending Macworld, 2009 would be the last year Apple would be attending the Macworld Expo, and that Phil Schiller would deliver the 2009 keynote in lieu of the expected Jobs. Almost exactly one month later, on January 14, 2009, an internal Apple memo from Jobs announced that he would be taking a sixmonth leave of absence, until the end of June 2009, to allow him to better focus on his health and to allow the company to better focus on its products without having the rampant media speculating about his health. Despite Jobs' absence, Apple recorded its best non-holiday quarter (Q1 FY 2009) during the recession with a revenue of $8.16 billion and a profit of $1.21 billion.

After years of speculation and multiple rumored "leaks" Apple announced a large screen, tabletlike media device known as the iPad on January 27, 2010. The iPad runs the same touch based operating system that the iPhone uses and many of the same iPhone apps are compatible with the iPad. This gave the iPad a large app catalog on launch even with very little development time before the release. Later that year on April 3, 2010, the iPad was launched in the US and sold more than 300,000 units on that day and reaching 500,000 by the end of the first week. In May of the same year, Apple's market cap exceeded that of competitor Microsoft for the first time since 1989.

Apple released the fourth generation iPhone, which introduced video calling, multitasking, and a new uninsulated stainless steel design, which acts as the phone's antenna. Because of this antenna implementation, some iPhone 4 s reported a reduction in signal strength when the phone is held in specific ways. After a large amount of media coverage including mainstream news organizations, Apple held a press conference where they offered buyers a free rubber 'bumper' case, which had been proven to eliminate the signal reduction issue. Later that year Apple again refreshed its iPod line of MP3 players which introduced a multi-touch iPod Nano, iPod Touch with FaceTime, and iPod Shuffle with buttons which brought back the buttons of earlier generations.

In October 2010, Apple shares hit an all-time high, eclipsing $300. Additionally, on October 20, Apple updated their MacBook Air laptop, iLife suite of applications, and unveiled Mac OS X Lion, the latest installment in their Mac OS X operating system. On January 6, 2011, the company opened their Mac App Store, a digital software distribution platform, similar to the existing iOS App Store. Apple was featured in the documentary Something Ventured which premiered in 2011.

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2011-present: Post-Steve Jobs Era On January 17, 2011, Jobs announced in an internal Apple memo that he would take another medical leave of absence, for an indefinite period, to allow him to focus on his health. Chief operating officer Tim Cook took up Jobs' day-to-day operations at Apple, although Jobs would still remain "involved in major strategic decisions for the company‖ Apple became the most valuable consumer-facing brand in the world. In June 2011, Steve Jobs surprisingly took the stage and unveiled iCloud. iCloud is an online storage and syncing service for music, photos, files and software which replaced Mobile Me, Apple's previous attempt at content syncing. This would be the last product launch Jobs would attend before his death. It has been argued that Apple has achieved such efficiency in its supply chain that the company operates as a monopsony (one buyer, many sellers), in that it can dictate to its suppliers.

Briefly in July 2011, due to the debt-ceiling crisis, Apple's financial reserves were greater than those of the US Government. On August 24, 2011, Jobs resigned his position as CEO of Apple. He was replaced by Tim Cook and Jobs became Apple's chairman. Prior to this, Apple did not have a chairman and instead had two co-lead directors, Andrea Jung and Arthur D. Levinson, who continued with those titles until Levinson became Chairman of the Board in November.

On October 4, 2011, Apple announced the iPhone 4S, which included an improved camera with 1080p video recording, a dual core A5 chip capable of 7 times faster graphics than the A4, an "intelligent software assistant" named Siri, and cloud-sourced data with iCloud, One day later, on October 5, 2011, Apple announced that Jobs had died, marking the end of an era for Apple Inc. The iPhone 4S was officially released on October 14, 2011.

On October 29, 2011, Apple purchased C3 Technologies, a mapping company, for $240 million. C3 is the third mapping company Apple has purchased to date. On January 10, 2012, Apple for $390 million acquired Anobit, an Israeli hardware company that developed and supplies a proprietary memory signal processing technology that improves the performance of flash-memory used in iPhones and iPads.

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On January 19, 2012, Apple's Phil Schiller introduced iBooks Textbooks for iOS and iBook Author for Mac OS X in New York City. This was the first major announcement by Apple since the ing of Steve Jobs, who stated in his biography that he wanted to reinvent the textbook and education. The 3rd generation iPad was announced on March 7, 2012. It includes a Retina display, a new U, a five megapixel camera, and 1080p video recording.

On a July 24, 2012, conference call with investors, Tim Cook said that he loved India, but that Apple was going to expect larger opportunities outside of India, citing the reason as the 30% sourcing requirement from India.

On August 20, 2012, Apple's rising stock rose the company's value to a world-record $624 billion dollars. This beat the non-inflation-adjusted record for market capitalization set by Microsoft in 1999. On August 24, 2012, a US jury ruled that Samsung should pay Apple $1.05 billion (£665m) in damages in an intellectual property lawsuit. Samsung said they will appeal the court ruling.

On September 12, 2012, Apple unveiled the iPhone 5, featuring an enlarged screen, more powerful processors, and running iOS 6. The latter includes a new mapping application (replacing Google Maps) that has attracted some criticism. It was made available on September 21, 2012, but has already become Apple's biggest iPhone launch, with over 2 million pre-orders pushing back the delivery date to late October.

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 Vision & Mission Apple is known for keeping secrets. Many employees and workers who worked for Apple were most of the times not even aware of what was happening around them. Many of them reported that they were not even aware of Apple‘s products and were as much shocked and surprised to see the product on its launch as any other ordinary person. Same goes with Apple‘s vision and mission statement. There has been a lot of speculation about Apple‘s vision and mission statement. Although Apple does not have a formal vision and mission statement, but some publications provide the following as the company‘s vision statement:

Vision Statement: Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals, and consumers around the world through its innovative hardware, software, and internet offerings.

Mission Statement: Apple Computer is committed to protecting the environment, health and safety of our employees, customers, and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes, and services.

(Source: Company documents)

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 Business Activities  The Management Executive Profiles

CEO : Tim Cook Tim Cook is the CEO of Apple and serves on its Board of Directors. Before being named CEO in August 2011, Tim was Apple‘s Chief Operating Officer and was responsible for all of the company‘s worldwide sales and operations, including end-to-end management of Apple‘s supply chain, sales activities, and service and in all markets and countries. He also headed Apple‘s Macintosh division and played a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace

Senior Vice President, Retail

: John Browett

Senior Vice President Internet Software and Services

: Eddy Cue

Senior Vice President Mac Software Engineering

: Craig Federighi

Senior Vice President iOS Software

: Scott Frostall

Senior Vice President Industrial Design

: Jonathan Ive

Senior Vice President

: Bob Mansfield

Senior Vice President and Chief Financial Officer

: Peter Oppenheimer

Senior Vice President Hardware Engineering

: Dan Riccio

Senior Vice President Worldwide Marketing

: Philip W. Schiller

Senior Vice President and general Counsel

: Bruce Sewell

Senior Vice President Operations

: Jeff Williams

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Board of Directors

Chairman of the Board, Apple Chairman and former CEO Genentech

: Arthur D Levinson, Ph. D

Chairman And Former CEO Intuit Corp.

: Bill Campbell

CEO Apple Inc.

: Tim Cook

Chairman and CEO J. Crew

: Milliard Drexler

Former Vice President of United States

: Albert Gore Jr.

President and CEO Walt Disney Company

: Robert A. Iger

Executive Chairman of the Board Avon

: Andrea Jung

Former Chairman and CEO Northrop Grumman

: Ronald D. Sugar, Ph. D

(Source: Apple Document/Apple Website) http://www.apple.com/pr/bios/

 The Facilities Carteret, New Jersey

Apple facility in Carteret serves as Apple logistical hub to all major highways leading to southern New Jersey, Philadelphia, Baltimore, western Pennsylvania and New York metropolitan area. The building, which is brand new, consist of 275,000 square feet of heated warehouse space and is designed for modem distribution techniques. The ceiling height is 36 feet, which allows workers to accommodate 34 foot high pallet storage racks and increase the facility‘s usable cubic capacity. The existing lease was consummated in December 2011, extending over a period of ten years with options to renew every five years.

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Elizabeth Seaport, New Jersey

Apple‘s Port facilities, which is consist of 20,000 square feet of heated warehouse space, is strategically positioned next to the steamship berths. Because there are no state or federal regulations restricting weight on the roads within the port, the workers are able to haul overweight containers to this facility and distribute from the warehouse. The present leases are through 2018.

McLester St. Elizabeth Marine terminal, NJ

This facility is a state of the art trucking and maintenance facility with over 9 acres of open area and a 15.000 sq. ft. maintenance shop. It, too, is located within the confines of New Jersey‘s largest shipping terminal. A high percentage of our customers are large multinational companies, who want to take advantage of the proximity to the world‘s largest container lines.

(Source : http://www.asaaple.com/facilities.htm)

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 Product

Timeline of Apple Inc. products.

iPad and iPhone

iPad

iPad mini

iPhone

iOS

Mac

AirPort Express

iMac

AirPort Extreme

Apple Keyboard

MacBook Air

MacBook Pro

Displays

MacBook Pro with Retina Displays

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Mac mini

Magic Trackpad

Apperture

Mac Pro

Magic Mouse

Apple Battery Charger

Apperture Remote

Safari

Facetime for Mac

Desktop

iLife

iWork

Time Capsule

Final Cut Pro X

Logic Studio

OS X

iPod and iTunes

Apple TV

iPod Touch

iPod Classic

iPod Nano

iPod Shuffle

iTunes

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iCloud

Apple retail Stores

Sources: Company Website http://apple.com/products

Apple Products – 2012 1. Personal computing products including desktop and portable computers, Xerve servers, related devices and peripherals, and various third party hardware products Mac Hardware Products

2. Desktop Computers include iMac, Mac Pro, and Mac mini 3. Portable computers include MacBook Pro, and MacBook Air. MacBook is a portable computer designed for consumer and education s. MacBook Pro is a portable

computer

designed

for

professionals

and

consumers. iTunes digital music management software (―iTunes‖) is an application for playing, ing, and organizing digital audio and video files and is available for both Mac and Windows-based iTunes

computers. iTunes 10 features Ping, a music-oriented social network, AirPlay wireless music playback, Genius Mixes, Home Sharing, and improved syncing functionally with the company‘s

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mobile communication and media devices. iPhone combines a mobile phone, a widescreen iPod with touch iPhone

controls and an internet communications device in a single handheld product. iPad, a multi-purpose mobile device

 

iPad

for browsing the web,

reading and sending e-mail, viewing photos, watching videos, listening to music, playing games, reading e-books, and more.

 iPod

Line of portable of digital music and media players is comprised of iPod touch, iPod nano, iPod shuffle, and iPod classic. Apple Cinema high Definition Display and a variety of Apple-

Displays & Peripheral

branded and third party Mac-compatible peripheral products,

Products

including printers, storage devices, computer memory, digital video and still cameras, and various other computing products and suppliers. Apple TV is a device that allows customers to rent and watch movies and television shows on their television. Content from

Apple TV

Netflix, Youtube, Flickr, and MobileMe, as well as music, photos, and videos from a Mac- or Windows-based computer can be wirelessly treamed to a television through Apple TV 1. Mac OS X is built on a open-source, UNIX-based foundation. Mac OS X Snow Leopard is the seventh major

Operating System Software

release of Mac OS X and became available in August 2009 2. iOS is the company‘s mobile operating system that serves as the foundation for iPhone, iPad, iPod touch. 1. iLife‘ 11 is the latest version of the companyy‘s consumeroriented digital lifestyle application suite included with all

Application Software

Mac computers 2. iWork‘ 09 is the latest version of the company‘s integrated productivity suite designed to help s create, present, and publish documents, presentations, and spreadsheets.

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 Good Corporate Governance (GCG) Apple‘s Board of Directions oversees the Chief Executive Officer and other senior management in the competent and ethical operation of Apple on a day-to-day basis and assures that the long term interests of shareholders are being served. To satisfy the Board‘s duties, directors are expected to take a proactive, focused approach to their positions and set standards to ensure that Apple is committed to business success through the maintenance of high standards of responsibility and ethics.

The Board has adopted the following committee charters and governance guidelines that, in conjunction with Apple‘s articles of incorporation and bylaws, form the governance framework for Apple. The governance structure is designed to foster principled actions, effective decision-making and appropriate monitoring of both compliance and performance.  Corporate Social Responsibility (CSR) Apple still needs to embrace the core values that make it a ‗cool‘ company: in short, that owning an Apple product secures hip in a select group. While Apple is perhaps overdue for a CSR strategy, the decision to enact donation matching is decidedly not in ‗Apple Way‘. The sequence of events surrounding last month‘s announcement as well as the fundamentally uncreative quality of the program presented imply that Cook is only responding to media pressure rather than bringing to CSR the same kind of innovative and inspiring vision for which Apple is so highly regarded. And in that regard, the corporate matching program is fail.

Developing a CSR strategy around neither a sense of obligation nor calculation but rather around certain well-defined character virtues is highly effective. In particular, integrity, empathy and zeal, among others are critical during times of uncertainty; they need to be well coordinated and implemented from inside-out not the other way around.

Integrity: Any major organizational change is accompanied by insecurity. The transition from Job‘s approach to hiring and firing is bound to create uncertainty among employees, and in corporate environments uncertainty inevitably creates pernicious manoeuvring and second guessing at middle management levels. The new CSR initiatives should present

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both the company and its new CEO with a unique opportunity to promote an image of integrity and to differentiate the new leadership from that of the Jobs era. However, philanthropy is not a good place to start. It should start from inside, promoting trust and openness, the internal integrity.

Empathy: Empathy creates emotional bonding between the company and stakeholders allowing companies to endure a difficult time. Apple is currently embroiled in lawsuits that are likely to restrict consumer choices in the future if it carries on. Publishers are frustrated by Apple‘s hammerlock over apps and magazine subscriptions on the iPad. There have been indications that Samsung, Apple‘s most threatening competitor, angered by patent lawsuits, will finally fight back to counter sue Apple. While from Apple‘s point of view, taking legal action against competitors may seem necessary as a means of protecting innovation, public opinion works differently. For multinational companies the legal victory can often end with a kind of zero sum game, leaving it with a reputation for arrogance and insecurity. Apple will have to worry about its reputation all the more so if it wins the battles against competitors. Zeal: Zeal is perhaps the virtue most-embedded at Apple‘s core and is represented by their continuous innovation and excitement in of products and customer experience. By emphasizing CSR, Tim Cook would need to bring that famous Apple zeal to social issues, offering an innovative approach, as competitor Google did, when it famously began encouraging its employees to spend 20% of their time on their own projects.

It goes without saying that Cook and Apple are standing at a precipice. Product innovations can be short-lived. A serious CSR Strategy could quietly shift Apple‘s sales pitch from personal charisma to the great public good, doing Apple good in the long term. The leaders of innovative organizations that undergo the uncertainty that comes with change, would be wise to promote both integrity and empathy internally, thus ensuring that zeal continues to inspire consumers throughout their tenure and for years to come.

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 The External Assessment  Economic Forces The global economic depression might have immense impact on Apple Inc. the inflation rate is high, while consumer‘s incomes didn‘t have significant changes, moreover the unemployment rate has increased, leading consumers to spend less, especially on ‗luxury products‘, as Apple products might be viewed. Also, the U.S dollar has fallen to five-year lows against the euro and yen, which makes US goods cheaper to foreign consumers. Even though the U.S dollar has lost value, Apple Inc. is not as endangered economically. The corporation has purchase itself foreign currency, to minimize the economic effects of inflation on Apple Inc. It needs to be said that the U.S dollar‘s depreciation has in fact increased Apple‘s revenue in the international market.  Social, Cultural, Demographic & Environment Forces Social influences: Globalization includes the interaction of people worldwide, for which technology plays the main role. Today‘s World cannot be imagined without technological devices as Computers, mobile phones, gadgets, etc. apple is the globally seen as the King of technology, not because of most usage, but quality and design. Another big social influence is the music industry, which over the last decade has become virtual and set its market to the cyberspace. Apple having developed the biggest virtual media store, iTunes, is well ahead any other competition of this direction. Web piracy might be a threat, but most governments punish those behaviors. All in all, Apple‘s image also portrays the modern individual‘s lifestyle, combining functionality with design, leading to brand identification and loyalty. Therefore social influences have positive effects on Apple Inc. According to apple in 2001 they began an Apple Recycling Program and by this program Apple achieved to collect over 90% of electronic equipments. Apple started this program for our benefit and protection of the environment. Apple is expected in all areas including being green Also; they are constantly responding people needs and wants.

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 Political, Governmental & Legal Forces It is reported that in 2007 52% of sales of Apple were from outside America. Bad international relations, wars and terrorism might influence Apple in a huge manner; moreover these are all factors Apple has no ability to control. Apple Inc. produces many of its parts and products outside the U.S like Ireland, Czech Republic, Korea, China, and Cork. Political Conflicts between the U.S and any of these states may have awful outcomes for Apple Inc.  Technological Forces The technology market for computers and mobile phones has become huge, adding more competition in the market. Also technology innovations and changes are almost as fast as light, therefore the products lifecycle is very short. Investing largely in Research and Product Development, Apple is on top of the market, regarding innovative products. This includes making the work for the competition to follow, but it‘s still better because in innovation is a big part of the brand and has shown to pay out.  Competitive Forces Apple‘s annual report indicates that its business industry is Computer Hardware and it sector is Technology. Yet, many analysts consider Apple as being a direct competitor with other hardware manufacturers such as Hewlett-Packard (another hardware manufacturer) and even Google (with no hardware manufacturing capacity), yet there is no comparison between Apple and other phone related manufacturers or devices, through 38 percent of its business is driven by iPhone and related products. This is always a challenge when companies have wide product lines with a different marketing mix in each line. For hardware product lines, direct competitors include International Business Machines Corporation (IBM), Hewlett-Packard, Dell, Cisco Systems, Xerox, Seagate Technology Public Limited Company, NCR, EMC, and Toshiba for the US Ranked Hardware by sales, and for the non-US Ranked Hardware by sales includes Canon, NEC Corporation, Fujitsu, Hitachi Ltd, Ricoh Company, Seiko Epson Corp., Fujitsu Technology Solutions Holding (B.V), Okki Electric Industry Company, Limited, Acer Incorporated.

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Apple Competitors at Glance

GOOG = Google Inc. HPQ = Hewlett-Packard Company RIMM = Research In Motion Limited Industry = Personal Computers

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Computer Hardware Comparisons

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 The Internal Assessment  Management Organizational Structure Apple has no presidents of divisions and no SBUs. The company is organized functionally with financially reportable segments being the Americas (North and South), Europe (including the Middle East and Africa), Japan, Asia-Pacific, and retail (U.S. and international markets). Tim Cook is the company‘s CEO, Apple‘s. Apple’s Organizational Structure:

Tim Cook CEO

Tim Cook Chief Operating Officer

Eddy Cue Sr. VP Software and Services

Bob Mansfield Senior Vice President

Philip W. Schiller Sr. VP Worldwide Product Marketing

Dan Riccio Sr. VP Mac Hardware Engineering

Peter Oppenheimer Sr. VP & Chief Financial Officer

Craig Federighi Sr. VP Mac Software Engineering

Bruce Sewell Sr. VP and general Counsel

Scott Frostall Sr. VP iOS Software

Jeff Williams Sr. VP Operations

Jonathan Ive Sr. VP Industrial Design

John Browett Sr. VP Retail

Source: Company Documents www.apple.com

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 Marketing

Apple markets its products in many ways, such as through its own retail stores, online, and some retail channels. It also sells direct to small and mid-sized businesses, educational institutions, enterprises, governments, and creative organizations. At the end of fiscal 2010, Apple had over 317 retail stores (233 stores in the United States and 84 stores internationally). The stores come in various sizes and locations, such as high-traffic shopping malls or urban shopping districts; suitable to the needs and the demand of that specific market. Apple invests heavily in marketing and promotional campaigns using direct mail, print media, TV commercials, Internet advertising, product placements and social networking websites. Despite its heavy advertising campaign, Apple believes providing direct with its targeted customers is the best way to demonstrate the advantages of its products over those of its competitors. The stores employ experienced and knowledgeable personnel who provide product advice, service, and training. The stores offer a wide selection of third-party hardware, software, and various other accessories and peripherals. Apple‘s brand‘s loyalty is considered unusual for any product. At one time, Apple evangelists were actively engaged by the company, but this was after the phenomenon was already firmly established. Apple evangelist guy Kawasaki has called the brand fanaticism ―something that was stumbled upon‖. Apple has, however, ed the continuing existence of a network of Mac groups in most major and many major centers of population where Mac computers are available. Apple Store openings can draw crowds of thousands, with some waiting in line as much as a day before the opening or flying in from other countries for the event. The New York City Fifth Avenue ―Cube‖ store had a line as long as half a mile; a few Mac fans took the opportunity of the setting to propose marriage. The Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks. Research in 2002 by NetRatings indicates that the average Apple consumer was usually more affluent and better educated than other PC company consumers. the research indicated that this correlation could stem from the fact that on average Apple Inc. products are more expensive than other PC products.

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 Finance Income Statement

Source: Yahoo Finance – October 2012 (EDT) http://finance.yahoo.com/q/cf?s=AAPL+Income+Statement&annual

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Cash Flow

Source : Yahoo Finance – October 2012 (EDT) http://finance.yahoo.com/q/cf?s=AAPL+Cash+Flow&annual

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Balance sheets

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 Production / Operations

Operating Expense

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Market and financial statement data provided by NASDAQ, BATS Exchange, SEC and Xignite Inc. Industry and operating metrics collected from company filings via EDGAR online

 Research and Development

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According to the company's annual report, which was filed with the U.S. Securities and Exchange Commission this afternoon, Apple spent $3.4 billion on research and development during its fiscal year, up $952 million, or 39 percent from last year. The year prior, the company spent $2.4 billion, up $647 million or 36 percent from the year before. While the cost went up, the amount Apple spends on R&D versus its overall sales remained tiny. As in 2011, Apple's tally for 2012 remained at 2 percent. Apple's R&D spending has been under close watch for years, in no small part because it spends considerably less than many of its rivals. Microsoft, for instance, spent $9.8 billion in its fiscal 2012, while Google spent $5.2 billion in its fiscal 2011. "[Apple] continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Company's core business strategy," Apple said in its filing. "As such, the Company expects to make further investments in R&D to remain competitive."

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 Management Information System

 The Internal and external SWOT Analysis

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 The Strategy Formulation Analytical Strategy  The Input Stage  External Factor Evaluation (EFE) Matrix

 Competitive Profile Matrix (M)

 Internal Factor Evaluation (IFE) Matrix

 The Matching Stage  Strength, Weaknesses, opportunities, threats (SWOT) Matrix

 Strategic Position and Action Evaluation (SPACE) Matrix

 Boston Consulting Group (BCG) Matrix

 Internal-External (IE) Matrix

 Grand Strategy Matrix

 The Decision Stage  Quantitative Strategic Planning Matrix (QSPM)

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REFERENCES

http://en.wikipedia.org/wiki/Apple_Inc. http://news.cnet.com/8301-13579_3-57543370-37/apple-r-d-spending-up-nearly-40-percent-in-2012/ http://ycharts.com/companies/AAPL/r_and_d_expense http://www.wikinvest.com/stock/Apple_(AAPL)/Data/Total_Operating_Expenses http://www.idoub.com/doc/67899754/13/APPLE%E2%80%99s-VISION-and-MISSION http://www.imd.org/research/challenges/corporate-social-responsability-apple-opportunity-rosa-chun.cfm http://investor.apple.com/governance.cfm http://www.apple.com/environment/ http://www.apple.com/environment/#facilities http://www.documentcloud.org/documents/338407-apple-facilities-report-2012.html http://www.apple.com/pr/products/ 39

http://finance.yahoo.com/q/co?s=AAPL+Competitors http://denmark.chsnenu.edu.cn/Apple.pdf http://finance.yahoo.com/q/co?s=AAPL+Competitors http://www.asaapple.com/facilities.htm http://finance.yahoo.com/q/cf?s=AAPL+Cash+Flow&annual http://www.idoub.com/doc/57773266/118/Apple%E2%80%99s-foreign-operations

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