Conducting an internal environmental scan on the iPad business unit is essential for uncovering the assets and operating characteristics of the unit. The organizational assessment will clarify how the guiding statements support business strategy, the strength of the value chain and the prevailing culture in the business unit that supports its strategy. In order to obtain a heightened understanding of the internal environment, it is mandatory to perform a SWOT analysis. The balanced scorecard is also a component of the organizational assessment, as it aligns the activities of the iPad business unit to its overall strategy and vision. This report highlights and analyzes the results obtained from a thorough internal environmental scan of the selected business unit, Apple Inc’s iPad unit.

Part I: Internal Environmental Scan

Mission, Vision and Values

The mission and vision of the iPad business unit mirrors those of the parent company. According to Khan & Alam (2015), the mission is “defining the future of computing and mobile media devices through innovative products” whereas the vision is “To become the leading producer of easy to use, high-quality products that integrate resourceful technologies to enhance user experience”. The mission, values and vision of the iPad business unit have a direct relationship to the firm’s strategy, since the primary emphasis of the strategy is on innovation and creativity to produce high-quality products for the targeted segments of consumers. Some of the shared values of the iPad business unit include integrity, honesty, accountability, delegation, social responsibility, accountability and excellence. There is also a consensus in the mission, values and vision of the organization.

Strategy Clarification

An interview with the mid-level manager at the iPad business unit reveals that the organization’s members, including CEO Tom Cook, other senior executives, managers and subordinates, have a heightened understanding of their business strategy. This is because the business unit communicates this strategy periodically to all the employees through weekly meetings, staff notice boards and via online platforms. The manager also affirmed that he has a thorough understanding of the interconnectedness between competitive advantage, value proposition and market position of the organization. Creating a strong value proposition and enjoying a leading market position enables the iPad business unit to have a competitive edge over rivals (Kurtz & Boone, 2014).

Cultural Assessment

Various shared values and unwritten rules govern the iPad business unit. Some of the most prominent include personal integrity, constructive problem solving and adherence to ethical standards governing the tablet industry (Murph, 2012). The shared values have led to a strong corporate culture that fosters the principles of accountability, honest communication, teamwork, innovation and respect for diversity. In order to reinforce this vibrant culture, the organization provides regular training and offers incentives to staff members who lead by example (Khan & Alam, 2015). From the interviewee, I also learnt that leaders at the iPad business unit strive to promote this culture also through exhibiting the desired values.

Value Chain Analysis

The primary activities in a value chain include the firm’s infrastructure, HRM and procurement processes. Technology plays an instrumental role in streamlining the value chain of the iPad business unit. Murph (2012) reiterates that the whole value chain of this business unit, from raw materials’ procurement, warehousing, management of logistics to distribution, relies heaving on technological leadership. Having talented manufacturers, logistics personnel, marketers and R&D team has also contributed to value addition in the value chain. Noteworthy, the iPad business unit also has a high reputation of impeccable customer service at various points including pre-purchase and post purchase (Godfrey, 2015).

Summary of Findings

From the succinct internal environmental scan, it is evident that the vision, mission and values of iPad business unit directly support the business strategy that prioritizes on innovation and technological leadership. All employees also have high familiarity with the business strategy and their expectations, a factor attributable to the conscious decision by the business unit to communicate this strategy to employees. The employees also have a set of shared values such as constructive problem solving, conformity to ethical standards and openness (Murph, 2012). All these have led to the development of a vibrant culture characterized by teamwork, two-way communication, accountability, innovation and respect for diversity. iPad’s value chain is also innovative and responsive to the business’ and customers’ needs. This is because of the sophisticated technologies deployed in all domains of the value chain. Cumulatively, the internal environment is relatively strong.

Part II: SWOT Analysis

SWOT Matrix

Positive

Negative

Internal

Strengths

· Strong financial position

· Strong brand presence

· Strong corporate culture

· Commanding market share

Weaknesses

· High price of iPad

· Incompatibility with other products

· Negative publicity

External

Opportunities

· Expansion- increased demand in emerging countries

· Product development

· Strategic alliances to increase market share

Threats

· Stiff competition (Microsoft, Android, Amazon, Chinese manufacturers)

· Economic recessions

· Shifting consumer threats

· Changing regulatory landscapes

Analysis

The iPad business unit enjoys various strengths. The first strength emanates from the strong financial position of its parent company. In 2014, Apple Inc. had $233.72 billion in revenue, surpassing the 2013 record high of $188.8 billion (Khan & Alam, 2015). The strong financial standing on the parent company gives the iPad business unit some advantage over rivals, as it often receives generous allocations for advertisements and product upgrades. iPad business unit also benefits from Apple’s strong brand presence and loyalty. Other strengths include a strong corporate culture, effective leadership, a commanding market share and an innovative global supply chain (Murph, 2012).

Nevertheless, in spite of such strengths, the iPad business unit also has some inherent weaknesses. Khan & Alam (2015) assert that a prime weakness comes from the pricing of the product. Whereas the average tablet cost charged by competitors is $250-300, the iPad sells at a premium price of $400 and above. This high-end strategy can dissuade many customers who are not from an affluent background. The incompatibility of the product with other platforms such as Windows is also a potential weakness that discourages some consumers from purchasing an iPad or other Apple products. Moreover, technical issues associated with product functionality and problems of negative publicity have further undermined the operations of the firm (Kurtz & Boone, 2014).

The environmental scan also reveals some opportunities available for the iPad business unit to exploit. A major opportunity is international expansion, which it can accomplish through a market development strategy. Even though the business unit has a strong market presence, most of its retail stores are in first world countries including North America and Western Europe. Exploiting markets in emerging nations and some developing countries that show surging demand can help in increasing sales and brand recognition. The iPad business unit can use its financial standing and market share to expand. Forging strategic alliances can help in pursuit of this strategy (Kurtz & Boone, 2014). Product development and product differentiation are the other opportunities available for the business unit to capitalize on.

The iPad business unit should however be wary of some threats confronting the firm. For example, the uncertain economic conditions witnessed throughout the globe over the past few years can undermine sales because of diminishing spending power among prospective customers. According to Godfrey (2015), stiff competition from other players in the market including Samsung, Sony, Amazon, Microsoft and Chinese manufacturers of tablets is the other major threat. All these rivals sell their products at relatively cheaper costs, posing a major threat to iPad’s market share. Changing regulatory/legal requirements in many countries coupled with shifting consumer preferences also present threats to the business unit.

Part III: Balanced Strategic Scorecard

The balanced strategic scorecard is important for aligning the activities of the iPad business unit to its overall strategy and vision. Apart from measuring performance against core strategic goal, the scorecard is also instrumental because it improves external and internal communications. The main areas of interest in the scorecard include financial, internal processes, customer (external stakeholder) as well as learning and growth. The following is a balanced scorecard depicting these perspectives, objectives/activities and measures for success.

Perspective

Objectives/Activities

Measures

Financial

· Reduce unit costs

· Grow revenue

· Increase market share

· Increase asset utilization

· % of productivity improvement

· Percentage of revenue growth (15%)

· 20% by year 1

· Percentage of Capacity Utilization (85%)

Customer

· Bolster customer relationships

· Deliver quality, on-time products

· Become an innovative supplier

· Improve overall reputation

· Customer account share

· Customer returns/defects and OTD percentage

· % of sales of new products

· Customer retention and ranking

Process

· Enhance manufacturing efficiency

· Excel at product development

· Expand distribution network

· Boost supplier relationships

· Cycle time and PPM defect rates

· Time-to-Market

· Number of new distributions

· Percentage of certified suppliers (15> 1 year)

Learning & Growth

· Grow human capital

· Build a culture supporting change

· Leverage IT

· Increase # of employees

· Number of best practices shared

· Increase # of customer databases

References

Godfrey, R. D. (2015). Strategic Management: A Critical Introduction (2 ed.). New York: Routledge.

Khan, U. A., & Alam, M. N. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management , 3 (6), 955-967.

Kurtz, D., & Boone, L. (2014). Contemporary Marketing. Boston, MA: Cengage Learning.

Murph, D. (2012). IPad Secrets. Hoboken : John Wiley & Sons.