Cody Stewart Bus10 Sec 23

Table of Contents Executive Summary... .Pg.3

Product Extension Pg.4 & 5

Strategic Analysis.....Pg.6

Financial Analysis.Pg.7 !"

Production Plan.Pg. !! & !#

$ar%eting Strategy..Pg.!3 & !4

&rgani'ing .Pg.!5 & !6

$anagement.... Pg.!7 & !(

)or%s *ited..Pg.!+

Executive Summary Apple Inc. has been revolutionizing the way people use technology for the past few decades. New technology is innovated by Apple Inc. every few years and they are constantly staying on top of the markets. Apple introduced in the past few years the very popular iPhone and iPad, which is used my millions today. We are bringing to the market Apple s newest product, the iPrint Portable. !he iPrint Portable will change the printing world as we know it today. !his product will allow users to print on the go in a new accessible and manageable way. "sers will be able to even slip their IPrint Portable in something as small as a backpack. !his product will use #luetooth technology to sink up to any iPad, $ac#ook, or iPhone and be able to print wirelessly. Also this product will have internal storage memory to save documents, such as a resume or history paper. "sing high speed %uality printing, the iPrint Portable will serve to print the highest %uality photos. !his product will cost on average &'(( to make factoring in the costs of labor, resources, etc. We will then sell this product for &)*( dollars in stores, cashing in a &'*( per unit. +nce produced through ,o-conn, this product will be shipped and sold in Apple stores around the world. After the first month sales, distribution will continue to #est #uy, Amazon, and other various locations. Advertising will come in the form of commercials, .ou!ube ads, and .ou!ube videos. !his product will appeal to people around the globe. It will be marked down in history as one of apple s greatest products. !he iPrint Portable will generate large profits for Apple and its shareholders and help Apple become an even better competitor in the marketplace. We aspire to change the printing world with the iPrint Portable.

Product Extension !he company we would like to add our product to would be apple. We would be adding a new product called the iPrint Portable. !his product would create a revolutionary new way to portably print, /ust as apple is known for its revolutionary technology. We feel that marketing this printer through apple would guarantee enormous sales as opposed to another company such as 0ell. !his product will mainly come in one form with potential for different versions depending on success. !he original and first form will be a thin and compact portable printer. !he iPrint will be made out of aluminum casing for durability and sleekness. It ll be relatively light and small, weighing around 1lbs and measuring about 2 - ')3 in dimensions. !his product will resemble a rectangular shape, relatively smaller than the '13 $acbook Pro. !he product will run via #luetooth supporting up to a '(4meter standard radius. Also, the iPrint portable will include an internal storage memory of ) 5#, which will allow users to store and access documents at will. ,or e-ample, this feature will enable users to access important documents for printing without the need of a computer. Also, with a battery life of 67 hours on a simple one4hour charge, portability can truly be utilized. !hen the paper will come out the slim opening. What makes this product truly uni%ue is that it will be one of the first of its kind. With its convenient and mobile design, it will truly revolutionize portability. ,or e-ample, since it is small enough to fit into a backpack, if one was late to a meeting or class, they need not wait in line at the library for a printer or wait at home, they could simply /ust print on the go wherever and whenever. In these times everyone e-pects and demands convenience and simplicity. Although we

are moving on into a digital world, printers and written work still play a big role in our society. We still use printers everyday, but the problem with current printers is the availability and portability of them. With the introduction of this product, those problems will cease to e-ist. 8ince there is nothing currently like this product, we e-pect this to be a huge hit and a true investment for apple and computer users. 9very home, office, school, and library has and re%uires a printer. With the market straying away from desktops and stationary technology, we believe that this portable printer would make lives easier for millions of users. Apple is big on new, innovative, and wireless technology. !his product will add amongst their lines of $acbooks, Ipads, Iphones, and will also be integrated within the :loud interface. 8ince Apple is known to revolutionize products as they did with phones and laptops, it would only make sense for them to take on this printer.

Strategic Analysis 8.W.+.!. Analysis

Strengths: Portability, accessibility, wireless and #luetooth options, ;igh %uality output, first of its kind, Apple branding, Weaknesses: 9-pensive, might not be in high volume demand Opportunities: New /obs will be created due to new technology and production< 9-pected high consumer demand will result in a high generation of revenues Threats: Production and $arketing takes up a lot of money from the company, $ight not be in as high of a demand, idea of portable printer might be easily imitated With the economic crisis, it might be hard to get money to fund the research needed to create this product. Also, Apple might not feel the need to support, produce, and sell this product since the market is not as big as phones or computers. Apple has always been the leading competitive company in the computer industry, but this new product will help branch Apple out into another market in which they can dominate. !he other printers that might be similar to this product in terms of portability will definitely lack the technology and aesthetics that Apple can provide. #y branching out into the printing market, Apple will be able to once again take over another part of the technological industry. !he product applies to people of all ages. Whether they are students, business leaders, or anyone who is seeking the use of a printer. +ur product offers a new portable printer that has enhanced capabilities of a normal bulky =home3 printer. When compared to other similar printers, the probability and easiness that comes with this product will clearly push out the competition from other printers. !he only other ma/or competitors would be $icrosoft or 0ell. Financial Strategy Capital: +ur budget that we are re%uesting for our first running month will be &''*,(((,(((. Apple s Assets are high enough so they accepted this budget. No borrowing is necessary. We will spend

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&'((,(((,((( on our production budget. !his will include raw materials, manufacturing, land, importing, labor, and production. 9ach unit will cost &'(( to make and we will make ' million. &'(( is the averaged amount from all resources purchased>used. We will spend &'(,1(6,((( on marketing. !his includes &'(,(((,((( for commercials and &1(6,((( for .outube ads. We will have ???? left over for other issues. Total Assets: Current Assets: Financial Budget: Production Budget: Marketing Budget: Unspent Budget: &''@,(((,1((,((( &6*,(((,(((,((( &''*,(((,((( &'((,(((,((( &'(,1(6,((( &6,@2@,(((

eturns: A return for one unit will be &'*(. It will cost &'(( to make and sell for &)*(. When we sell our first million in the first month, we will make a profit of &'1*,(((,((( for the first month. I got this from subtracting the &)*(,(((,((( in revenue minus all of the first month e-penses of &''*,(((,(((. !his will be a ''AB return on investment. +ur break4even investment will be reached when we sell 6@(,((( units. Total Profit (If 1 million sold): Total eturn on In!estment: Break"#!en Point: atios: +ur current assets CAppleD are &6*,(((,(((,(((. +ur current liabilities are&)7,(((,(((,(((. ;aving a '.@ current ratio shows that we are with a strong company and we will be able to finance our product. +ur stockholder e%uity is about &AA,(((,(((,(((. +ur total liabilities are &6(,(((,(((,(((. +ur 0ebt4to49%uity ratio is .*). !his means that we will have less risk for our investment, which is good. :urrent EatioF 0ebt4to49%uity EatioF '.@ *) &'1*,(((,((( ''AB in one month 6@(,((( units sold

!alance Sheet All Information gathered from yahoo.com Cyahoo financeD All number in thousands. Assets Current Assets*: Cash & Cash Equivalents 10!035!000

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8hort !erm InvestmentsF '@,'1A,((( Net EeceivablesF '1,A1',((( InventoryF AA@,((( +therF 6,*)2,((( Total Current Assets Gong !erm InvestmentsF **,@'7,((( Property Plant and 9%uipmentF A,AAA,((( 5oodwillF 72@,((( Intangible AssetsF 1,*1@,((( +ther AssetsF 1,**@,((( Total Assets' *ia+ilities :urrent Giabilities Accounts PayableF )1,7A2,((( +ther :urrent GiabilitiesF 6,(2',((( Total Current *ia+ilities +therF '(,(2',((( 0eferred Gong !erm Giability :hargesF ',@7@,((( Total *ia+ilities Stockholders/ E0uity :ommon 8tockF '1,11',((( Eetained 9arningsF @),76',((( +therF Total Stockholders/ E0uity

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661,((( -(#(')#&&&

Cash Flo1 All Information gathered from yahoo.com Cyahoo financeD All number in thousands. Operating Activities :ash Eeceived from customers )*(,((( :ash paid to suppliers and employees C*(,(((D

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Total Cash Flo1s 2rom Operating Activities 3nvesting Activities :ash used to buy e%uipment C*(,(((D Total Cash Flo1s 2rom 3nvesting Activities Financing Activities6 :apital contributed by stockholders )*,((( :ash dividends paid to stockholders C*,(((D :ash borrowed from the bank ( Total Cash Flo1s 2rom Financing Activities !eginning Cash Change in Cash and Cash E0uivalents Cash at end o2 year Currency in 7S89

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3ncome Statement
$ote: Income %tatement is &$'( num)ers for t*e product+ not Apple Inc,

All number in thousands

evenue 8alesF )*(,((( Total evenue ')&#&&&

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Expenses :ost of EesourcesF A*,((( :ost of Gabor H ProductionF )*,((( !otal :ost of +perating 9-pensesF '((,((( !otal :ost of $arketingF '(,1(6 "nspent #udgetIF 6@2@ Total Expenses '')#&&& :ross Pro2it ; <et 3ncome !otal EevenueF )*(,((( !otal 9-pensesF ''*,((( :ross Pro2it ; <et 3ncome '.)#&&&
!he money that we did not spend in our budget will be used for any une-pected costs and ta-es.

Production Plan ,actors of ProductionF !here are three factors of production involved with the iPrint. !he iPrint will re%uire land, labor, and capital.

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*and: Apple Inc. owns much of the land in :upertino :ity, :alifornia and has various land and stores throughout the "nited 8tates. In addition, they also have contracted companies who own land in various other countries. *a+or: With the introduction of this new product, we will definitely need to hire more workers for production and also engineers and programmers for the development and research of the iPrint. Production will be outsourced using ,o-conn in :hina as our main source of production. Capital: Apple Inc. will use e-isting e%uipment for the production of the raw materials of the iPrint, but will re%uire new investments and machinery for the creation of the frame, parts, and chips of the iPrint. Production 8ince Apple Inc. is an established and well4e%uipped company, they will already have much of the materials and e%uipment needed to produce the new product. Parts such as the aluminum casing and memory chips will use current and available e%uipment that produce the other current Apple products. +nly a few new machines are needed to produce the new frame and internal components such as the processing chip, scanner, and laser /et of the iPrint. 8ince Apple Inc. already has contracted companies that produce their products in other countries, producing and labor will be no

Outsourcing Apple Inc s new product will use outsourcing production due to their strong work force and established connections with ,o-conn in :hina. Nearly all of the parts of the printer will be created and packaged in :hina with the e-ception of a few 9uropean countries. :ompleted

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products will then be shipped to the "nite 8tates for sales. #y using outsourcing, Apple will be able to maintain their efficiency and %uality of their new product. =uality Control !he iPrint portable will use %uality control to ensure a printer of the highest %uality. Apple builds their reputation on %uality and we will maintain that %uality with this new product. Juality is one of the most important aspects of Apple. !o ensure %uality control, we will use 8tatistical Juality :ontrol C8J:D, which is a set of specific statistical techni%ues used to monitor all aspects of the production process to ensure that both work4in4process and finished products meet the firm s %uality standards.

>arketing Strategy !he type of product we are introducing is a consumer product. It goes under the category of a shopping product, which is an item for which buyers are willing to spend effort on planning to purchase this item. +ur product is a printer, so it is something that consumers will

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spend time on deciding to buy. !his is because there are many different kinds of printers and it is something used very often, so making the best purchase is essential for buyers. :ustomers can be classified as everyday people, students, and business owners. Also any apple user will purchase this product. +ur packaging will be in a cardboard bo-. It will be a rectangular shape to match the shape of the printer. +n the package it will show the uni%ue Apple logo. It will also have a picture of the product on the package. !he package will come in black and white colors, /ust as most apple products are. !hese items will be packaged through outsources in the factories were the products are made. We will use top %uality material to package our products. Also inside of the bo- we will have another productive cardboard shell around the product. !he product will be wrapped in plastic. !he brand on our product will be Apple. We will price our product at &)*(, and it will cost &'(( to produce Cincluding labor, research, and productionD. We will be using cost4based pricing. We will be selling Apple care for &*(, which offers free repairs on the product for three years. We will also be offering a deal. ,or people that buy a laptop with their printer, they will get free apple care with the printer, a &*( value free. We plan our product to peak sales in the first month and slowly decline after that. We plan to sell ' million the first month, which will be a &'*( million dollar profit. After that we plan to sell around '((4*(( thousand a month. We will distribute our product to only the Apple store at first. +nce the selling dies down, we will distribute it to #est #uy, Amazon, and ,ry s. ,or our promotion we are going to be doing .outube ads, commercials, and .outube videos. .outube videos will be free to do on the Apple .outube channel. .outube ads will be

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set at a spending cap. We are going to spend &'(((( a day on .outube ads. After one month that will end up being &1((,6((. !hen after a month we will stop that. We plan to run on ma/or !K. Networks for about &'((,((( per 1( second play. We plan to run the ad about '(( times. !hat will cost &'( million dollars.

Organi?ation @istory: Apple Inc. is a corporation that creates and distributes its own uni%ue products around the world. Amongst these products include computers, laptops, phones, and mp1 devices. !hey have their own specific line called the =I3 products such as the Ipad and Iphone. Origin: 8teve Lobs and 8teve Wozniak both dropped out of ": #erkeley and built their first computers in Lobs garage which was originally for computer hobbyists. After they sold a few hundred computers, they decided to go public and start and e-pand their company. Changes: Lobs wanted to make his company bigger and consulted with $irke

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$arkukula who bought one third of the company for &)*(,((( and helped Lobs with a new business plan. Apple is in the technology industry. Apples latest developments and products include the Ipad 1 and the Iphone 6s. Organi?ational Structure Apple was run by the late :9+ 8teve Lobs, but is now run by current :9+ !imothy :ook. !he company is basically sorted out into three main divisionsF !op management, $iddle management, and 9mployees. Top >anagement: With !imothy :ook as the :9+, he will overlook the entire corporation and develops essential plans and strategies for the company. As :9+, :ook will have a say in how and what products will be developed and handled. >iddle >anagement: Apple splits up their management into various divisions including design, hardware, software, operations, retail, engineering, and communication. 9ach division will have different duties and specific parts of the company they must oversee and act on. #elow each of these divisions they are split up into even more specific management groups such as Apple :are, +nline 8tore, and specific product marketing. !he purpose of each of these separate divisions is to provide efficiency and consistency for Apple. Employees: In addition to Apple s outsourced labor force in various countries, we will need e-tra employees in the stores and in the engineering and software4developing department. 9mployees deal directly in production and sales of Apple products and take orders from the upper management levels. 9mployees of Apple will be treated with respect and will adhere the same safety standards that Apple has followed all these years. Industrial design, hardware, semiconductors, software, user interface, user e-perience,

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even content services, it doesnMt much matter. Whether itMs internally developed or outsourced, Apple makes every aspect of the product or service its own responsibility. If improvement is needed, Apple makes it happen. 3mpact: !he product will e-pand on what Apple already offers. It will utilize similar technology and resources that Apple already uses. !he only difference is that the product will be a new line that Apple has never done before since they only have products in computers, tablets, and phones. >otivation: 8ince the product will only be released and sold in Apple stores when it first comes out, the store>branch that sells the most iPrints will receive a commission bonus from corporate and the worker who sells the most the first month, will receive free apple care for life and also a commission bonus.

>anagement Strategy >ission: Apple s mission is to e-cel at developing high %uality products which meet our customer s needs and e-pectations for all of their personal electronics. =Apple designs $acs, the best personal computers in the world, along with +8 N, iGife, iWork and personal software. Apple leads the digital music revolution with its iPods and i!unes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App 8tore, and is defining the future of mobile media and computing devices with iPad.3 Aision:

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!he vision for this product is for every apple user to have a personal iPrint in their home. We want users to have easy printable access whenever and wherever they go. We aspire to change the printing world with our iPrint. We hope in the future we are able to e-pand this product past apple users and into P: and other systems as well. We hope we can eventually transform and upgrade this product to make it even more portable and efficient. Culture: !he culture of Apple was based on the idea that an individual who is self4motivated will work hard with little boss intervention. !his allowed Apple to grow. !hey let the people at the bottom make the decisions. !hey have this top4down philosophy, with the top making policy and seeing over all activities and the local employees making the day4to4day decisions. We will follow Apples philosophy. !herefore we will design the product in a way that Apple cannot micromanage everything. !hey will provide us with capital and we will carry out the pro/ect. Additional leadership: We are going to need the president from ;P printers to help us with the design. 8ince Apple has not made a printer to date, we prefer that we find someone with prior e-perience to do so. We will be seeking the help of $ark Kincent ;urd, who is the current president of ;ewlett4 Packard. We can use his e-perience, our entrepreneurship, and Apple s capital to create our printer.

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Work Cited OAAPGF 8ummary for Apple Inc.4 .ahooP ,inance.O (a*oo- Finance. Web. (6 Lune )('). QhttpF>>finance.yahoo.com>%RsSAAPGT. OApple.O Apple. Web. (6 Lune )('). QhttpF>>www.apple.com>T. OApple :omputer, Inc.O Funding Uni!erse. Web. (6 Lune )('). QhttpF>>www.fundinguniverse.com>company4histories>Apple4:omputer4Inc4:ompany4 ;istory.htmlT. O,o-conn !echnology 5roup.O Fo.conn Tec*nolog/ 0roup. Web. (6 Lune )('). QhttpF>>www.fo-conn.com>:ompanyIntro.htmlT. O+rganizational :ulture at Apple.O %cri)d. Web. (6 Lune )('). QhttpF>>www.scribd.com>doc>1'''2A')>+rganizational4:ulture4at4AppleT. Pride, William $. Introduction to Business. ''th. $asonF :engage Gearning , )(''. Print. O!elevision Ad :ost.O Tele!ision Ad Cost. Web. (6 Lune )(').

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QhttpF>>www.televisionforbusiness.com>!elevisionAd:ost.htmT.