Strategy formation is a part of the process of strategic management and consists

of 3 phases: 1. Determining a view of the future 2. Developing various strategies 3.

Evaluation and choice of a strategy
1. Determining a view of the future of Apple: involves an image of the future of the
Apple organization being sketched. We need to check if the objectiives can be
achieved in the future by using the current strategy. This difference between
desirability and reality occurs in Apples case, since Apple operates in a fastchanging environment the technologies, and also, the competition on the mobile
market is very strong.
2. Developing various strategies : Every big company, as Apple, knows that if one
strategy fails, it might have other options to diminuate the fail. For example, Apple
released on 19th September the iPhone 6 and iPhone 6 Plus. Also, the company
developed a new product new Apple watched, released on 30th September. Other
strategies:They have a medium and long term time span; They are related to the
organization as a whole; They create opportunities to promote new investments; 3
categories discussed: Strategies dependent on the market share of the organization;
Stategies dependent on the extent of turbulence in the environment; Expansion
strategies (the product market matrix). We believe that, since Apple is a big, leader
company, inevitably, is implicated in all kind of strategies on top mentioned. If we
talk about Strategies dependent on the market share of the organization : that type
of strategies that exhibit clear differences in their market share, we divide the
organizations in: Market leaders,Challengers ,Followers,Specialists. As a market
leader, Apples aim is to : 1. Increase the total market (Increase the number of
users: extending experience, Stimulates the current users to increase their
consumption: turning the Ordinary into Something Beautiful, Attracts new users:
communicating in the Language of the Audience); 2. Defend its own market
share (Position strenhthening: Differenciation ,Attacks the flanks: videos with
experiments how Iphone is stronger than Sumsung Galaxy); 3. Expand their
market share (Enhancing mobility: Apple creates options to move activities to
other markets : Apple is a design firm, media platform, pulishing company,
software powerhouse, computer builder etc). Stategies dependent on the extent of
turbulence in the environment : Stage1: immunization (New production
techniques,New markets with new products); Stage 2: adaptation(Ability of the
organization to adapt itself to changing circumstances); Stage 3: manipulation
(Manipulation can be defined as the total or partial recovery of earlier loss of
influential power); Stage 4: innovation ; 3. Expansion strategies

3. Evaluation and choice of a strategy : After the strategies have been set up, as any
other company, Apple makes preliminary choices. Thease strategies will then be
evaluated in terms of their medium term prospects.
Planning and implementation The output of strategic management
consists of a strategy or a plan.
Implementation of a strategy involves translating it to a shorter time frames and
lower hierarchical levels. Planning cycle has the following stepts: 1.Strategic
planning;2. Operational planning;3. Function specific planning 1.Strategic
planning (Quality campaings each day;Product development and market
introduction;Information planning and computerization projects). 2.Operational
planning (Strategic plan sets up the business plan of a company while business
plan in turn establishes the business operation plan. Operational plan is the key to
run the entire business of company. Operational business plan covers the all areas
of company including the finance, manufacturing, internet, operations, R&D,
human resources and marketing. Apple Inc. was known because of its lenient
business thinking. Apple Inc. has the design, marketing and manufacturing
services. Company develops designs and markets the musical players with
important accessories. The business of Apple Inc. is managed on geographic basis.
There are five operating segments of Apple Inc. such as America, Europe, Japan,
retail and others. In US, Canada, UK and Japan Apple owned stores are currently
operating. Operational management is linked with the production divisions
activities.The people in Apple Inc. are grouped together on the basis of their
expertise and resources. It enabled the Apple Inc. to learn from its functions. The
present structure in Apple Inc. has focused upon those activities which reduce the
costs and increase the flexibility in its operations. The managers in Apple Inc. have
a greater control of the organizational activities and avoiding the tall and other
several hierarchies. A relative flat structure of the Apple Inc. has decentralized the
authorities and responsibilities of its management. The managers and employees at
lower levels are encouraged to take part in fostering the companys strengths. The
advantages of decentralization are numerous i.e. enhancing the planning, decision
making and control processes. Apple Inc. has focused on its marketing operations
on the major business areas like iPod and iTunes. The marketing department shows
a great responsiveness to the outside world. The finance treasury division of Apple
Inc. provides the financial policy to company. This department is responsible to
handle the international capital transactions of company, liquidity guaranteeing and
risk management. In Apple Inc. the role of the financial manager is crucial for the

strategic management. The capital required for the R&D is raised by the Finance
division which maintains the innovation position of the Apple Inc. Internal
problems of Apple Inc. were in the form of the sale force accessing directly to
corporations. Apple Inc. relied on the 300 manufactures while IBM had 6000 to
7000 direct salesman. However the Apple Inc. has focused to establish more sales
staff. Many issues concerning to these sales person were noted regarding the prices
of products. Apple Inc. has also marketing problem as it failed to communicate the
Macintoshs business image in market. The fact that marketing strategy was not
according to requirements and did not make it more famous in market; it also did
not focus upon the technology. Products are manufactured on the basis of
customers needs. Apple Inc. needed the fundamental importance of getting close
to market.)
Span of control- Delegation involves handing over tasks and the associated
responsibility and authority
to lower levels. The person that delegates the tasks retains ultimate responsibility
for those tasks. To make sure that the delegated tasks are carried out as required,
those who have been given the tasks must be managed. This is the managers span
of control. Span of control has two dimensions: The horizontal dimension; The
vertical dimension. Apple operates with a horizontal dimension, known as the span
breadth. This one is determined by the factors: the good managers qualities, the
qualities of emploees, the nature of the organization; the nature of the work; the
character of the job.
Team work pursposeful and efficient team work depends on a clear
awareness of the various roles that
need to be fulfilled within a team and the conditions needed to ensure the good
welth of the company. Apple created strong teamworks among its employees.
Roles: the coordinator, the shaper, the innovator, the evaluator, the contact, the
team worker, the organizer, the quality guard. It is known that Apple, when
innovates a new project opens the applications for those how want to participate in
it. So, every employee has the chance to show his/her abilities.