Running head: STRATEGIC PLAN AND PRESENTATION

Strategic Plan and Presentation

Tierney Kennedy
STR 581
11/30/2015
James Ziegler

STRATEGIC PLAN AND PRESENTATION

TABLE OF CONTENTS

Introduction

Page 4

Executive Summary

Page 4

Apple Inc. History

Pages 4 - 5

Apples Mission and Vision Statement

Page 6

Organizations Strategic Goals

Page 6

External and Internal Factors

Pages 6 - 7

Milestone and Tasks Timeline

Pages 7 - 9

Generic Strategy

Page 10

Value Discipline

Page 11

Grand Strategy

Page 11

Apples Financial Performance

Pages 11 - 13

Break Even Point

Pages 13 - 14

Management Strategy Review

Page 14

Marketing Strategy

Page 14

Strategy for Apples Return to Shareholders

Page 15

STRATEGIC PLAN AND PRESENTATION

Recommendation

Page 15

Implementation Plan

Page 16

Risk Mitigation & Contingency Plan

Page 16

Conclusion

Page 17

References

Page 18

Appendix- Apple Balance Sheet

Pages 19 - 21

STRATEGIC PLAN AND PRESENTATION

Strategic Plan and Presentation

Apple Inc. is a company that is known for its innovative products. The company is a
brand name in the field of technology. With new companies entering into the market with more
or less similar products as that of Apple, Apple must continue to maintain its position by coming
up with new strategies and products.
Executive Summary
The present trend of the market demands the organizations to employ such employees
who have the skills that ensure the success of the business. Apple is a company that has always
believed in establishing a healthy bond with its customers. In this financial marketplace it is very
essential that companies master the art of accounting as this helps in establishing creditability
(Powell, 2010). Internal accounting helps the company in resolving the conflicts in a very simple
and professional manner. When a company has a good network of managers, the communication
between the managers and the employees smoothens and there establishes a good environment
for business. In short we can hence say that accounting helps in the daily operations within the
company.
Apple Inc. History
-Apple Inc. was established in the year1976 by the combined effort of Steven Jobs and Steven
Wozniak.
- They began by designing Apple I, a personal computer for the enthusiasts of the Silicon Valley.
- After two years the company produces Apple II, a personal computer which had a color display.
Apple II was very successful and the company sold 100,000 units of it.

STRATEGIC PLAN AND PRESENTATION

- In 1984, the Macintosh popularly known as Mac was introduced. It had a user friendly
graphical user interface which helped the users to interact with the screen images. Mac was a
breakthrough n the PC industry but it didnt have the software, power or the speed to compete
with the PCs introduced by IBM in 1981.
- Macs poor response forced Steve Jobs to hire John Scullery as the companys CEO in 1983.
- In 1985 Jobs resigned
- The same year Apple faced its first quarterly loss and the company lay off around one fifth of
its employees.
- In 1987 Apple revamped Mac with excellent graphic capabilities.
- In the year 1993 Apple removed Scullery as the CEO and appointed Michael Spindler as the
new CEO.
- The Power Mac family was released by Apple in the year 1994.
- Spindler was asked to resign in the year 1996 and Gil Amelio was chosen to take his place.
- Amelio was terminated in the year 1997 and Steve Jobs again became the interim CEO.
- IMac was introduced in the year 1998.
- Jobs became the CEO in 2000 and in 2001 the iPod was released.
- IPhone was launched in 2007.
- In 5th October 2011, Steve Jobs passes away.
- Apples new CEO became Tim Cook.

STRATEGIC PLAN AND PRESENTATION

Companys mission and vision statements

Apples mission is to give its customers the best computing experience. The company
continuously enhances its technology and tries to keep its products up to date with the modern
trend and technology. The companys mission is to focus on the quality and innovation of the
products and thereby keep its customers happy and loyal. The company is focused on the
satisfaction of the customers and tries to give them the best value for their money. When looking
into the external and the internal environment of the company, I felt that the strategic plan of the
company is well aligned with the vision, mission and strategies of the company. Sales and other
performance indicators of the company like net income show that the strategies employed by the
company have helped in their growth. The products offered by Apple are of good quality and are
in accordance with the mission statement of the company.
Organizations Strategic Goals
The strategic goals of an organization are in concurrence with the mission of the
organization. If properly executed, it helps the company to grow, expand and develop. From the
very beginning, the strategic goal of the company was to consistently develop and launch new
upgraded products in the market. The company leads the technological market and if it continues
to upgrade its product and come up with new innovative products then it will be a tough task for
its competitors to take Apples position (Apple Inc. Form 10-K Annual Report, 31, 2012).
External and Internal Factors
Apple Inc. gives great importance to the global market. The company believes that in
order to become successful in this competitive market, it is very essential that the company
targets the global market. Thus globalization has been a must for companies to succeed. Apple

STRATEGIC PLAN AND PRESENTATION

needs such managers and employees who understands the importance of globalization and gives
great importance to it. But it is a tough task for Apple as many companies in the U.S have failed
in making a mark in the global market.
Socio economic is another external factor and Apple is successful in this just because of
its brand name and customers loyalty. Apples customers are very loyal towards the company and
it is the duty of the company to retain such health bonds with the customers.
Todays era is all about technology. Apple is a technology company. The company profits
by selling personal computing products and by its services. The company has a lot of competitors
who make the same products and it is thus very essential for Apple to continuously upgrade its
technology and its products. Today the greatest threat to Apple is from Google and Microsoft.
Google with its Android platform and Microsoft with its windows platform is presently the
greatest competitors of Apple (Apple, 2014).
A major part of Apples success is contributed by its internal factors. Factors that
contribute to the success of Apple are innovation, leadership, differentiation and competition. It
is the innovative strategies of the company that has helped the company in attaining so much
success. Apple is the first company to introduce products like the iPod nano and the original
iPod. Many other rival companies of Apple copy its product and make similar products.
Milestones and Tasks Timeline
Milestones should be such that they are attainable. The development phase of a product is
expected to take place over a time period of three to six months. Once the prototype is produces,
the new products life cycle is reviewed so as to ensure that it will bring profit to the company.
After receiving positive feedbacks, then the responsibility is shifted to the marketing department.

STRATEGIC PLAN AND PRESENTATION

The cell phone apps are developed in a period of 18 months. It is divided into three
phases. Phase I is from month one to six when focus is on increasing the security of the website.
Phase II is from month seven to twelve when focus is on increasing the entertainment
merchandise. Finally the last phase is from month 13 to 18 when the focus of the company is to
reach new customers.

It is very essential to complete the task in the stipulated time. Task ownership helps in
motivating the employees as make them in a more efficient manner.

STRATEGIC PLAN AND PRESENTATION

The task of developing a website that is technologically advanced is entrusted on certain

web developers. It is through this website that customers can purchase the merchandise and even
chat with a live agent and clear their queries.

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10

Generic Strategy
Apple is famous among the people for its innovation. The company believes in the
importance of technology and continuously upgrades its technology in order to maintain its
number one position in the global market. The company leverages generic strategy and thus is
able to sustain its position in the market. Apple leverages generic strategy in Focus, Low cost
leadership and differentiation. The company focuses certain customers for each of its products.
IPhone was launched focusing on the tech savvy customers. Products like iPod were introduced
focusing on the youth. Thus each of its products targets a certain group. Apple is a mass producer
of many products like iPod and iPhone and is hence able to provide them to the customers at a
very convenient price. When we say differentiation we mean to say that the products launched by
Apple revolutionized the market in their respective areas. The iPod of Apple, when it was
launched took over the market share from Sony.
Value Discipline
Apple has always been known as the company that values its customers. The company
knows that in order to be successful it is very important to make good health relationships with
the customers. The company thus produces products which have the most up to date technology
and advanced features. Apples customers are generally people who give more importance to
value than money. Thus Apple sells value in order to make profits. Value Discipline is thus very
important and companies that focus on value discipline can very well outperform their
competitors.

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Grand Strategy
The grand strategy of Apple has been to provide its customers with the best technology
and service. Apple always believes in creating good bonds with its customers. The company has
created loyal customers who have full belief on the company. The iPod, iPhone and the iPad are
some of the top selling products of Apple. When we talk of the grand strategy of Apple we mean
to say that Apple continually looks for ways and measures in order to increase the life cycle of all
its products.
The products of Apple complement each other very well and this helps in increasing the
sales of each of its products. Lets take the example of iPod and iTunes. A person using iPod has
no option other than downloading music from iTunes.
The best part about the company is that it sells its products in its own stores. The
company has got stores in almost every country. These stores provide the customers an
environment where they can experiment and as questions regarding the products of the company.
Apples Financial Performance
Apple believes in creating its own operating system, application software and hardware.
The financial performance of the company can be best observed by the figures that are provided
in the annual report of the company.

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Apple Inc. is one of the most well known organizations all over the world. The company
has a brand name. The companys products are high in value and innovation. People value the
products of Apple especially the young generation. The company focuses in providing high
quality products to the customers. Apple launches new products periodically which drive the
sales of the organization and hence there is a growth in revenue.

As per Apple Financial Performance 2012, the company had a five year annual growth of
41.16% as compared to the 38.38% which was the industrys growth rate. This figure shows the
high performance of Apple when compared to other competitors in the industry. Apple registered
a growth of about $14,013 million in the year 2010 to about $25,922 million in 2011. This

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represents an increase of 85% in the increase in the income. As per Apple Financial Performance
2012, the company had a growth rate of 67.11% as compared to industrys 61.23%.

The above figures show that only those companies that set forth its vision, mission and
action plan for success actually succeeds and are able to gain profit. Apple is a company that
believes in excellence. The company thinks that innovation is the key to success. The company
sets future goals and never looks backs on the goals achieved in order to be successful. The
company focuses on the new financial numbers and not on the numbers achieved in the past.
Break Even Point
Break-even point explains the relationship that exists between the companys production
volume, the costs incorporated and the final returns. It helps a business in understanding the
lowest amount of business that the business should perform in order to prevent loss.

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Management Strategy Review

Apples management strategy is basically focused on developing new technologies. The
company is known in the market for its innovative products. People eagerly wait for every new
product launched by the company. The company has a great management team that clearly
understands how to do business. Before the company launches any new product, the company
creates a buzz in the entire market which helps the company in launching its product with
minimum risk. It has been seen over the years that the company launches its product in its home
market that is United States of America. This helps the company in testing its new products.
Once the people of America accept this product, then the company launches the product globally.
Marketing Strategy
The strategy of Apple has always been to produce products that are not only innovative
but also have a good design. Let us look into the history. When iPod was launched, there was no
other product in the market that had an enviable design. IPod was a faster and better mp3 player
and this helped it in gaining popularity in the market. With the introduction of iPod, the sales of
the Macintosh systems declined which was very popular at that time.

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Strategy for Apples Return to its Shareholders

It is the implementation of the differentiation strategy that Apple uses to increase the
organizations return to its shareholders. The company put great stress on innovation and relies
greatly on it for its success. Thus product innovation is like a must for the Apple in order to gain
profits for the shareholders.
Recommendation
Under the leadership of Steve Jobs, Apple rose to great heights by consistently producing
innovative products. It is innovation only that brought the company out of the shadows of
Microsoft thereby creating its own industry. The strategy of Apple is very goods and it brings
great success to the company. My recommendation for the company would be to follow the same
business model that it has been following over the years and keep on concentrating on innovation
for its success. The Product Pyramid Profit Model should be followed by Apple. As the number
of competitor increases day by day, steps should be taken to retain its position in the market.
So according to this model, the company should place its high priced products which are
produced in low volume at the top of the pyramid and the low priced products which are
produced at high volumes are placed at the lower level of the pyramid. The low priced products
help in deterring the competitors. So in this way the high priced products of the company are
protected.
Apple does not need to worry about its competitors as long as it keeps on producing
innovative products. The company has created a name in the market and has developed many
loyal customers. Even the company produces products like iPhone 5 at very high volumes. So
any new competitors entering the market will face great difficulty in matching Apple.

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Implementation plan
After Steve Jobs death, Apple went into a period of transition. The company is still
looking for ways to regain its market share. The company is looking for methods and strategies
in order to gain the confidence of its customers. So there is a great need of a good
implementation plan. A plan that has the listings of all the costs, difficulties, activities and the
schedules that are necessary in order to achieve all the objectives of the strategic plans. An
implementation plan addresses the short term as well as the long term objectives of the company.
Risk Mitigation & Contingency Plan
It helps the company in overcoming the possible risks before their occurrence.
Implementation of these plans will help the company in preventing such actions that could
damage the reputation of the company. Following are the strategies that are implemented so as to
ensure customer satisfaction.
SSL Security: It stands for Secure Socket Layer. It is like an encryption technology that
prevents the hackers from getting the sensitive information of the customers. SSL
protection of the companys website ensures the customers that the company is making
efforts to ensure their security and hence they are more satisfied.
Restricted access over the information of the customer: Data is provided to the
employees according to their requirement. Like for example the credit card details of the
customer is made accessible only to the finance or purchasing employee and not to the
receptionist of the company.

STRATEGIC PLAN AND PRESENTATION

Conclusion
In order to attain the short term as well as the long term goals of the company, Apple
should successfully implement all the strategies. In order to attain success the company should
have a check that its employees are allocated with all the necessary resources. The company
should keep producing innovative products and innovation is the key to success.

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References
Apple Inc. (2012). Apple Inc. Form 10-K Annual Report. Retrieved from
http://investor.apple.com/
Apple. (2014). Retrieved from http://www.apple.com
All About Strategic Planning. (2014). Retrieved from
http://managementhelp.org/strategicplanning/index.htm
Powell, H. R. (2010). The accounting of business and online commerce: Business ethics,
e-commerce, regulatory, and international issues. (6th ed). Upper Saddle River,
NJ: Pearson Prentice Hall.
Pearce, J. A., II, Robinson, R. B. (2014). Strategic management: Formulation,
implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin.
Apple Inc. Financial Performance. (2012). Apple Digest: Apple News and AAPL Stock
Analysis. Retrieved from http://appledigest.blogspot.com/p/applefinancial-performance.html

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APPLE INC (AAPL) BALANCE SHEET

Fiscal year ends in September. USD in

200

201

2011-

2012-

2013-

millions except per share data.

9-09

0-09

09

09

09

526

112

61

9815

182

143

1613

1838

01

59

234

256

2595

2912

64

20

336

551

Assets
Current assets
Cash

Cash and cash equivalents

Short-term investments

Total cash

Receivables

1074
14259

26287

40546

1093
5369

13102

776

791

1764

3453

105
Inventories

455

113

163

Deferred income taxes

2014

2583

Prepaid expenses

309
283

786

1087

1422

315

416

4498

5765

55

78

466

723

1176

2188

171

246

Other current assets

Total current assets

14421

73286

Non-current assets
Property, plant and equipment

Gross property, plant and equipment

Accumulated Depreciation

28519

-3991

-6435

11922