BUS 499_Assignment 4

Week 3 Assignment 1

Phabian Smith

Strayer University

BUS 499: Business Administration Capstone

Dr. Keller

Dr. Gardner

July 21, 2019

Week 3 Assignment 1

Apple Inc. is one of the companies whose history and development are well documented. Apple is known for designing, developing, and selling of computer and computer software, consumer electronics, and provides various online services. The company has developed into one of the major computer manufacturers in the world. This is because of the regular reliability on the development of new innovative technologies and globalization that has expanded its customer base. Technology and globalization have played a key role in the functioning of the organization since its formation 1976. The company’s global expansion and their focus on technological innovation in their business activities and products have made them a unique competitive advantage.

Globalization

Globalization can be considered as the integration of the interchange of ideas, culture, views, and products in the world. Globalization has enabled communication and interaction between individuals from various spheres resulting to free flow of products from one place to another without geographical barrier. In fact, globalization has made the world a global village. For Apple Inc. the increased integration of globalization has enabled it to become one of the biggest companies in the world. It has affected the business strategy of the company. With the extended market and the increasing demand for Apple products, the company has implemented the differentiation strategy which has prompted it to produce software, phones, and electronics with unique features. This has been facilitated by research and development to enhance technological innovation which is the cornerstone of its competitive advantage. At the same time, globalization as impacted on the operational and employment practices of the company. Today, Apple has the ability to access every part of the market and outsource production plants in different parts of the world. It has therefore been successful in the manufacture and launch of products in new markets. It is also important to note that globalization has enabled Apple to attract and employ talented, committed, experienced and innovative candidates. Most importantly, globalization has had significant impact on the resources and profit maximization of the company because going global has enabled it to increase its market share.

Technology

The effective application of technology in various aspects of the company has benefited it beyond expectations. Technology change has been a key factor in the success of the company. It has played a major role in the change to a mobile computing society by developing personalized technology devices that would serve the different needs of the people. Having expanded its operations into various countries across the globe, the company is today considered as the largest computer organization across the globe. It has managed to take up the market leadership because of its unique innovative products that serves the need of the people. It is its creation of new ideas and ways if conducting different processes that has attracted a huge market base. Through technological advancement, Apple creates new and improved products, services, materials, and processes. It has manufactured software and hardware products that suit the needs of customers and further differentiating its products.

Industrial Organization Model

Using the industrial organization model, Apple Inc. can earn above-average returns in the operations of the company. This would build on the vision and mission of the organization by examining the structure of the business and the market parameters (Pepall, Richards & Norman, 2008). This model tends to complicate a perfectly competitive market by introducing complications in the market like increased costs of products, entry barrier, and information limits. Apple’s products are often known for their value and quality. As a result, the company has set a relatively higher price to show to the customers that the products are of a given class in terms of quality and value. The company can use the industrial organizational model in a descriptive approach where it provides an overview of the company before suggesting how production can be improved to achieve above-average returns (Carlton & Perloff, 2004). Additionally, this model can be used by Apple to explain organization of the internal activities and improve marketing strategies aimed at profit maximization.

Resource-based Model

This can also be used by Apple Inc. to achieve above-level returns. The company can use it to improve its competitive edge over its rivals in the market. It can be used by the company to design strategies that can enhance long term profits rather than short term advantages. However, this may require a lot of resources but in the long run, the company would be operating on above-levels (Barney, 2001). The model depends on the resources available to develop performance improvement strategies for competitive performance of the company. With right strategic plans in place, Apple would further improve its position in the market and expand its market base to achieve above-level returns.

Vision

Apple Inc.’s vision statement states “Man is the creator of change in this world. Therefore, he should be above structures and systems and not subordinate to them” (Apple Inc., 2019). In accordance to this vision, the company ensures that they develop various innovative technologies to meet the demand of the consumers across the globe. The company is focused on satisfying the different needs of customers by customizing products based on their taste and preferences. Apple has developed a platform to enhance efficient and smooth customer interaction and customer experience. As a way of meeting the needs of the market, the company has developed the right objectives to continuously develop quality products and improve the experience of customers.

Mission

Apple’s mission statement is “It designs Macs, one of the best personal computers globally, together with OS X, iWork, iLife and professional software. The company leads the digital music revolution with the iPods and iTunes online store. Apple has also reinvented the mobile phone with its revolutionary App store and iPhone along with the magical iPad that gives a clear definition of the future of computer devices and mobile media” (Apple Inc., 2019). The company’s mission statement has ensured that they remain focused and presents them with a sense of purpose in all the strategies they develop. This has since enhanced their competitive advantage in the market because they wake up every day with an aim of achieving a common goal of bettering the lives of the people with their innovative products.

Stakeholders

Stakeholders play a key role in the success of the company and influence its strategic decisions. One of the key stakeholders is investors. In any organization, investors put a lot of resources in the organization expecting profit in return. They are mostly interested in achieving returns from their investments. Their major interest is for Apple to generate as much profit as possible to earn higher dividends. They expect the company to make decisions that would improve profit generation in the end. Another group of stakeholders are the customers. They are mostly interested in the getting high quality products and services from the company and get value for their money. Apple therefore must ensure that they manufacture high quality products and services that meet the needs of the consumers (Jansen, 2000). They are the most important stakeholders in the company because without customers, Apple Inc. would not exist. Employees are also important segment of stakeholders because they enable the company to serve its customers with quality products and services. They also take part in the decision making of the company. Employees also need to be treated well by the company and make them feel comfortable and wanted. They expect good wages and security of their jobs. They also require the company to provide career growth and development opportunities. Employees will provide high quality services and productive when they are motivated (Jansen, 2000). There are also suppliers who get the merchandise to the company. Even though least prioritized, they are an important part of the stakeholders because they provide the raw materials used by the company to manufacture their high-quality innovative products.

References

Apple Inc. (2019) Company Profile https://www.reuters.com/finance/stocks/company-profile/AAPL.O

Barney, J. B. (2001). Is the Resource-based Theory a Useful Perspective for Management Research? Yes. Academy of Management Review, 26(1), 41-56.

Carlton, D. W., & Perloff, J. M. (2004). Modern Industrial Organization, Overview. Handbook of Industrial Organization, pp. 259-327.

Jansen, M. C. (2000). Value Maximization and Stakeholder theory. Harvard Business School.

Pepall, L., Richards, D. J., & Norman, G. (2005). Industrial Organization: Contemporary theory and practise. Thomson/ South Western.