Business-Level and Corporate-Level Strategies

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Week 3 Strategic Management and Strategic Competitiveness Assignment

Heather Daniels

Strayer University

BUS499 Business Administration Capstone

Dr. Brian C. Grizzell

January 27, 2021

Week 3 Strategic Management and Strategic Competitiveness Assignment

Apple Inc. is among the top technology companies in the world. The company is based in the United States and deals with designing, manufacturing, and distributing consumer electronics, computer software, and online services. This paper will look at how the changes in globalization and technology have impacted the company's operations. The report will also apply both the Industrial Organization Model and Resource-based model to show how Apple will earn above-average returns. An assessment of the vision and mission statements should be able to ascertain their impacts on the overall success of Apple, Inc. The paper will conclude with an evaluation of the different stakeholders' impact on the company's success.

Globalization

Globalization is the process where a business starts trading at an international level. Apple Inc. is a multinational corporation where the organization's products and services are delivered globally. Over the years, its retail footprint has expanded, leading to operations in the Americas, Europe, Greater China, Japan, Middle East, Africa, and the Rest of Asia Pacific (Apple Annual Report, 2019). The company has been expanding globally to maintain its position as one of the leading technology companies. This includes investments in the latest manufacturing technology and talent.

Globalization is known to increase the interactions between the different populations and regions. Katerina et al., (2014) highlighted that globalization encourages companies to increase their volumes of transactions. Globalization has had an impact on Apple Inc. The company has manufacturing plants in various countries like India, China, and the United States. This has facilitated interaction and an increase in the volume of the products by the company. Through the various manufacturing plants, the company has increased its products' production and distribution. There are changes in supply chain management due to globalization. This is due to the increased movement of goods and services across borders.

The competition landscape is also changing due to globalization (Hitt, Ireland& Hoskisson, 2020). There are emerging companies that are competing with Apple in the technology industry. They have been facilitated by globalization as the movement of goods and services becomes more manageable. Companies like Samsung, ASUS, Huawei, and Dell technologies have grown over the last decade due to globalization threatening Apple's consumer electronics market. The company has responded to the competition through significant innovations that have propelled the company to new heights.

Technology

Apple is in the technology industry, and technology changes have been a factor in the company's success. The company has leveraged technologies like mobile technology, e-commerce, program apps, and analytics. The iPhone is the main product of the company and is considered the most potent hand device. The number of Smartphone users in the world keeps increasing, which increases the market for the iPhone. The advancements in technology have positively impacted the company, which thrives on innovation and creativity.

Lindh and Dahlin (2008) suggested that technology has enhanced business relations. Technology has ensured interactions between companies facilitating mergers and acquisitions. Apple has had to acquire or merge with other companies to improve their products. Acquiring a stake in companies like Silicon Valley Data and Intel has been facilitated due to advancements in technology. Disruptive technologies change products that were once complicated and expensive into affordable and open to more people. Apple has been regarded as a master of disruptive technology with technologies like Macintosh and the Apple watch.

Industrial Organization Model

Apple can use the industrial organization model in maintaining a big portion in a highly segmented market. This can be done by focusing on the unique resources and capabilities at the company's disposal. The company can use this unique resource and capabilities in creating a competitive advantage. Apple has unique capabilities where the company is innovative. The company has relied on innovative technology capacity as a strategic asset brought about by technology changes (Son et al., 2018). The innovative technology capacity has allowed the company to develop unique products to maintain a big market portion. The capability and resources have been used to create unique effects. The iPhone is an example of a product by the company created through unique capabilities. The organization has used the industrial organization model here to increase its revenue.

Resource-Based Model

The company can use the resource-based model to drive competitive advantage (Almarri & Paul, 2014). An organization can apply the model by identifying its unique resources, assessing whether the unique resources will pass the VRIO criteria, and nurturing the resources. The model has long been used by the organization, especially in project management. Apple has unique resources like a strong brand, reputation, patents, trademarks, and innovative corporate culture. However, the most important resource available for the organization is the brand. The company has spent years developing the Apple brand, making it one of the world's strongest brands. Leveraging on the brand can drive a competitive advantage for the organization, increasing the organization's revenue.

Vision

Apple’s Vision is “We believe that we are on the face of the earth to make great products and that's not changing" (Dwivedi, n.d). The statement communicates the company's intention as it assures the stakeholders of the organization's intentions. Apple uses the vision statement to make some of the strategic decisions in the organization. The company is innovative and has ensured that they present new products every time. The products are usually of high quality and the envy of their competitors. The innovation objective is communicated in the vision statement. The elements associated with the statement include innovation, market specialization, and the integration of partners. The employees are provided with the best resources to be innovative, and through teamwork and collaboration, they can produce some of the best technological advancements.

Mission

The organization's mission statement is “to bringing the best user experience to its customers through its innovative hardware, software, and services” (Dwivedi, n.d). The Chief Executive Officer, Tim Cook, communicated this mission statement while presenting the financial results in 2018. The statement outlines that the organization exists to serve the customers. The statement shows the number one priority for the organization is the customer. They will continue serving the customer and will not stop any time soon. The mission statement includes; user experience, empowerment of the public, quality products, and improving people's lives.

Stakeholders

The different stakeholders in the organization include; investors, employees, suppliers, and the government. These stakeholders have a key role to play in the overall success of the company. The stakeholders can also be divided into internal stakeholders, the employees, and the external, like the suppliers, customers, government, and the community. Internal stakeholders have a vested interest in the company. The interest can be financial, like the investors who invest in the company. They ensure the investment will meet the needs of the organization and allow it to succeed. They help in decision-making, especially with a major decision like acquisition and liquidation. The external stakeholders are concerned with the decisions of the company. They may present information that is valuable to the board while reviewing ideas and issues.

Sources

Almarria Khalid and Paul Gardiner. (2014) Application of resource-based view to project management research: supporters and opponents. Social and Behavioral Sciences 119 437 – 445. Available online at www.sciencedirect.com

Apple Inc. (2019). Financial Statements. United States Securities and Exchange Commission. Available at https://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_AAPL_2019.pdf

Nishant Dwivedi. (n.d). IGCSE Business Studies : Analysis of Apple's Vision and Mission Statement. Available at https://www.academia.edu/29725749/IGCSE_Business_Studies_Analysis_of_Apples_Vision_and_Mission_Statement

Hitt, Ireland, &Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning

Lindh, Cecilia & Dahlin, Peter. (2008). How Does Information Technology Impact on Business Relationships? The Need for Personal Meetings. Available at https://www.researchgate.net/publication/228462711_How_Does_Information_Technology_Impact_on_Business_Relationships_The_Need_for_Personal_Meetings

Katerina Ristovska and Aneta Ristovska. (2014). Impact of Globalization on the Business. Economic Analysis Vol. 47, No. 3-4, 83-89). Available at https://core.ac.uk/download/pdf/33812244.pdf