Learning Team Peer Evaluation

STR/581

August 18th, 2014

Alfonso Rodriguez

Introduction

Apple Inc. is a leading global retailer of computers, tablets, cell phones, and other entertainment items. Apple needs new growth methods, product development and be the leader in the mobile market. The implementation plan below will identify the course of action best suited for the corporation along with the implementation process, assessed risks and financial projections that will be used as the basis for moving the business forward.

Implementation plan 

Apple Inc. is currently in a transition period, after the death of Steve Jobs, and seeking methods that will allow the company to regain market share. This implementation is primarily concerned with how to diversify the product offerings, regain customer loyalty and be the leader in the mobile market. An implementation plan is a “detailed listing of activities, costs, expected difficulties, and schedules that are required to achieve the objectives of the strategic plans” ("Implementation Plan," 2014). The plan addresses the following areas of concern: short-term objectives, initiate specific functional tactics, outsource nonessential functions and design an effective reward.

Objective:

To expand sales to customers who do not yet own Apple’s products.

To produce hassle free products for the enjoyment for customers.

To become the leader in the mobile market.

Strategy:

Expanding the company’s distribution network to reach more consumers.

To invest in Research and Development.

To become the mobile leader.

Functional tactics

According to Pearce and Robinson (2014), functional tactics are detailed statements of the “means” or activities that will be used by a company to achieve short-term objectives and establish competitive advantage. Management involvement is required for the functional tactics to be successfully implemented. In addition, the functional area, “marketing, finance, operations, R&D and human resources will need to be included so that change can occur on all facets of the business’ operation” (Pearce & Robinson, 2014). The Research & Development department is critical to the success of the e-reader as well as increasing internet sales. R&D will determine how to utilize new technology to enhance current product offerings. In addition, this department will help to ascertain which features are most important to individuals who will primarily use the retailer’s online purchasing option. Marketing works in conjunction with R&D to identify how to retain current customers while simultaneously attracting competitors’ customers. The foundation of all efforts will be the Finance Department. This division will concern themselves with ensuring that projected and actual costs do not exceed company resources.

Action items

The focus of the action is plan is pinpoint the customers’ desires and make it practical and profitable. The customer is the focus of an action plan and thus is the key to the company’s success. The key to successful implementation is to provide staff with adequate resources and raw materials while empowering them to think outside of previously established confines. Furthermore, staff must also be empowered to make decisions on behalf of the organization provided they fall within the organization’s blueprint. The R&D department will be divided between two projects: developing new technology that will make company a competitor against other Tech companies and development of a technologically-savvy cell phone apps. The efforts of the Marketing department will be two-fold: determine what is needed to please the customer and relaying this information to the management team and R&D department. Secondly, this department will focus on implementing a campaign to attract new clientele to the store and website.

Milestones and a deadline

Milestones must be attainable. The first two milestones will happen simultaneously. Focus will be evenly divided between developments of a new product to introduce to the current customers. The product development phase is expected to take place over a three to six month time period. After a prototype is produced the life cycle of the new product must be reviewed to determine if it will be a profitable venture for the company. After receiving approvals the responsibilities will shift to the Marketing department. The development of a user-friendly cell phone apps will be done in key phases over an 18 month period. During months one to six, the focus will be on increase website security with SSL encryption, allowing customers to browse, preview and purchase currently in-print materials in hard cover, soft cover and digital forms and efficient check out procedures. The second phase at month’s seven to twelve will involve increasing the availability of entertainment merchandise such as movies, music, and related items. Finally in months 13 to 18 the focus will be on maintaining new customers and continue reaching new customers.

Tasks and task ownership

To meet the deadline, many tasks must be assigned and completed within a specified amount time frame. “Task ownership is one of the key elements of motivating employees because it ensures accountability and makes certain team members responsible for completing work,” (Task Ownership, 2014). The first task will occur simultaneously. Qualified web developers and software technicians will be entrusted with the task of developing a technologically-advanced website that is easy to navigate and provides customers the ability to purchase merchandise and speak with a live chat agent should customer service issues arise. The Marketing department will assume responsibility for branding the organization and its new product offerings. As stores are revamped and the image of the company is overhauled it is critical that the Marketing department produce unique promotions ideas.

Resource allocation 

Company resources will be allocated on an as-needed basis to ensure that employees are empowered and equipped with the tools necessary to be successful. All departments, particular R&D department, will have access to materials, technological resources and manpower needs in accordance with budget limits. Marketing efforts will be fully funded to support print and ad campaigns as well as strategically placed banner ads on the internet.

Required Organizational Change Management Strategies

It was previously determined that operational excellence is the value discipline most aligned with Apple Inc. mission and vision statement. Operational excellence will help the corporation in gaining and sustaining a competitive advantage. Coupled with the need for efficiency and excellence in processes is the need for Apple Inc. to align its strategic goals with the needs and expectations of its target demographic. Utilizing strategic controls will allow the organization to scrutinize the success and failures of the implementation process at its critical points. Instituting strategic thrusts will help to determine if progress is occurring according to the company’s standards or if adjustments need to be made for unforeseen circumstances.

Key Success Factors & Financials

Apple must understand the availability of financial resources is critical prior to implementing a strategy. Appendix A shows the Consolidated Statements of Cash Flows for Apple Inc. Appendix B shows the Balance Sheet for Apple Inc.

Risk Management Plan

Risk is inherent in all business operations. ”Risk Management is the process during which an organization identifies and prioritizes risks and subsequently employs measures to lessen the probability of harmful events and maximize opportunities,” (Pearce & Robinson, 2014). Therefore, risk management is not a one-time process but rather a process aimed at providing continuous improvement to the corporation as the marketplace changes will mitigate negative impact.

Risk Identification & Assessment

Apple Inc.’s strategic plan is formulated to cause the company to gain market share for retailers offering innovative, customer-friendly merchandise. Innovation will not be limited to the revamping of the storefront locations but, also through how customers are able to locate and order all products through the website. Employing a technological-advanced, user-friendly ordering system will allow customers greater flexibility with dealing with the company but, keeps brand loyalty within the organization. The following are risks associated with electronic commerce:

1. Phishing attacks – information breaches that resulting in loss of intellectual property loss customer data.

2. Personal use of confidential information by employees – employees will likely have access to personal information such as credit card numbers, addresses and other key details that lend itself to identity theft occurring.

Risk Mitigation & Contingency Plan

Apple Inc.’s risk mitigation and contingency plan is confronts probable risks with the hope of thwarting issues before occurrence. The following preventative measures will be implemented to ensure that customer security and satisfaction is fulfilled:

• SSL Security: SSL, or Secure Socket Layer, is an encryption method used to encrypt sensitive customer data so that it cannot be intercepted by hackers. Ensuring that the website has SSL protection will show customers that their safety and security, in addition to their business, is important to the company.

• Limited Access to Customer Information: Information will only be made available to employees on a need to know basis. For example, if a Purchasing or Finance employee needs access to the full credit card number to process payment then this person will be granted access to this level of information. In contrast, a Receptionist does not need this information to be readily available in order complete their job duties.

Implementation of these measures will allow the company to avert adverse actions that could damage its reputation. Furthermore, prior to order submission there will be a series of disclosures that provides customers with company policy related to online transactions and methods for contesting charges or other customer service issues. Should a customer be victimized after conducting business on the Apple Inc. website then the company will support the customer in recouping damages and prosecute assailants to the fullest extent of the law. This will allow the company to salvage any damage to its reputation before it is escalated and results in the loss of a customer.

Conclusion

In conclusion, successful implementation is essential to furthering Apple Inc.’s short-term and long-term success. Predetermined milestones will allow the company to assess its successes and failures in relation to a preconceived set of standards. Consistent and thorough evaluation of positive and negative feedback will help the company address internal and external factors that could impede a smooth transition process. Evaluating its resources, aligning its strategic plan with customers’ wishes and making the most of its strengths will allow Apple Inc. to position itself to be a leader in the marketplace and a viable candidate for market domination.

Reference

http://financials.morningstar.com/ Appendix A

http://investing.businessweek.com/ Appendix B

Apple. (2014). Retrieved from http://www.apple.com

History of Apple Inc. (2014). Retrieved from ttp://en.wikipedia.org/wiki/History_of_Apple_Inc.

Pearce II, J. A., & Robinson, J. R. (2014). Strategic management: Formulation, Implementation, and Control (13th Ed.). New York: McGraw-Hill Irwin.

www.pcworld.com/article/243861/samsung_becomes_biggest_smartphone_vendor_as_androids_market_share_grows.html

www.androidauthority.com/why-apple-is-very-afraid-of-samsung-26459

www.dailymail.co.uk/sciencetech/article-2054765/Samsungs-smartphones-outsell-Apple-time.html

Appendix A

Currency in

Millions of US Dollars | As of: | Sep 25

2010 | Sep 24

2011 | Sep 29

2012 | Sep 28

2013 | 4 Year

Trend |

NET INCOME | 14,013.0 | 25,922.0 | 41,733.0 | 37,037.0 | |

Depreciation & Amortization | 958.0 | 1,622.0 | 2,672.0 | 5,797.0 | |

Amortization Of Goodwill And Intangible Assets | 69.0 | 192.0 | 605.0 | 960.0 | |

DEPRECIATION & AMORTIZATION, TOTAL | 1,027.0 | 1,814.0 | 3,277.0 | 6,757.0 | |

Other Operating Activities | 1,440.0 | 2,868.0 | 4,405.0 | 1,141.0 | |

Change In Accounts Receivable | -2,142.0 | 143.0 | -5,551.0 | -2,172.0 | |

Change In Inventories | -596.0 | 275.0 | -15.0 | -973.0 | |

Change In Accounts Payable | 6,307.0 | 2,515.0 | 4,467.0 | 2,340.0 | |

Change In Unearned Revenues | 1,217.0 | 1,654.0 | 2,824.0 | 1,459.0 | |

Change In Other Working Capital | -3,550.0 | 1,170.0 | -2,024.0 | 5,824.0 | |

CASH FROM OPERATIONS | 18,595.0 | 37,529.0 | 50,856.0 | 53,666.0 | |

Capital Expenditure | -2,005.0 | -4,260.0 | -8,295.0 | -8,165.0 | |

Cash Acquisitions | -638.0 | -244.0 | -350.0 | -496.0 | |

Sale (Purchase) Of Intangible Assets | -116.0 | -3,192.0 | -1,107.0 | -911.0 | |

Investments In Marketable & Equity Securities | -11,075.0 | -32,464.0 | -38,427.0 | -24,042.0 | |

CASH FROM INVESTING | -13,854.0 | -40,419.0 | -48,227.0 | -33,774.0 | |

Long-Term Debt Issued | -- | -- | -- | 16,896.0 | |

TOTAL DEBT ISSUED | -- | -- | -- | 16,896.0 | |

Issuance Of Common Stock | 912.0 | 831.0 | 665.0 | 530.0 | |

Repurchase Of Common Stock | -- | -- | -- | -22,860.0 | |

Common Dividends Paid | -- | -- | -2,488.0 | -10,564.0 | |

TOTAL DIVIDEND PAID | -- | -- | -2,488.0 | -10,564.0 | |

Other Financing Activities | 345.0 | 613.0 | 125.0 | -381.0 | |

CASH FROM FINANCING | 1,257.0 | 1,444.0 | -1,698.0 | -16,379.0 | |

NET CHANGE IN CASH | 5,998.0 | -1,446.0 | 931.0 | 3,513.0 | |

Appendix B

“This company's debt to total capital ratio, at 12.07%, is in-line with the Technology Hardware, Storage and Peripherals industry's norm. Additionally, there are enough liquid assets to satisfy current obligations. Accounts Receivable are among the industry's worst with 25.59 day’s worth of sales outstanding. This implies that revenues are not being collected in an efficient manner. Last, Apple Inc. is among the least efficient in its industry at managing inventories, with 4.36 days of its Cost of Goods Sold tied up in Inventories” (www.investing.businessweek.com).