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In the following paper, we are going to present an American icon, the Apple company. We are
going to include the vision,mission, corporate values,SWOT and PEST analysis , strategy
description and implementation, etc.

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The story of Steve Jobs and Apple is now a legend, fully embedded in American culture. The
multicolored-painted original Apple (now a sleek silver apple) is no doubt about it, and
American icon. It reflects, high quality, simplicity, determination and being different. Remember
the ad campaign? Think Different!

 (NASDAQ: AAPL; previously  ") is an American multinational


corporation that designs and markets consumer electronics, computer software, and personal
computers. The company's best-known hardware products include the Macintosh line of
computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating
system; the iTunes media browser; the iLife suite of multimedia and creativity software; the
iWork suite of productivity software; Aperture, a professional photography package; Final Cut
Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of
music production tools; and iOS, a mobile operating system. As of August 2010, the company
operates 301 retail stores in ten countries, and an online store where hardware and software
products are sold.

Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the
company was previously named Apple Computer, Inc., for its first 30 years, but removed the
word "Computer" on January 9, 2007, to reflect the company's ongoing expansion into the
consumer electronics market in addition to its traditional focus on personal computers. As of
September 25, 2010, Apple had 46,600 full time employees and 2,800 temporary full time
employees worldwide and had worldwide annual sales of $65.23 billion.

For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive
advertising campaigns, Apple has established a unique reputation in the consumer electronics
industry. This includes a customer base that is devoted to the company and its brand, particularly
in the United States. Fortune magazine named Apple the most admired company in the United
States in 2008, and in the world in 2008, 2009, and 2010. The company has also received
widespread criticism for its contractors' labor, environmental, and business practices.


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Vision Slatement

Apple ignited the personal computer revolution in the 1970s with the
Apple II and reinvented the personal computer in the 1980s with the
Macintosh. Apple is committed to bringing the best personal computing
experience to students, educators, creative professionals, and consumers
around the world through its innovative hardware, software, and Internet
offerings.

Apple currently focus on:

Ø Increasing marketing and advertising investment in order to improve product and brand
awareness.

Ø Vertical growth strategy: expand the retail segment by opening more retail stores. (CI#2)

Ø Market opportunities related to digital music distribution and consumer electronic devices,
including iPod.

Ø Implement a cost leadership strategy to keep up with the competition and be more affordable
for the educational segment.

Ø Continue to be the leader in innovation for new technology by implementing a product


differentiation strategy.

"Man is the creator of change in this world. As such he should be above systems and structures,
and not subordinate to them."

Mission Statement

Apple Computer is committed to protecting the environment, health and


safety of our employees, customers and the global communities 'where we
operate. We recognize that by integrating sound environmental, health
and safety management practices into all aspects of our business, we can
offer technologically innovative products and services while conserving
and enhancing resources for future generations. Apple strives for
continuous improvement in OUf environmental, health and safety
management systems and in the environmental quality of our products,
processes and services.
Apple¶s Guiding Principles

Ø Meet or exceed all applicable environmental, health and safety requirements.

Ø Where laws and regulations do not provide adequate controls, Apple will adopt their own
standards to protect human health and the environment.

Ø Support and promote sound scientific principles and fiscally responsible public policy that
enhance environmental quality, health and safety.

Ø Advocate the adoption of prudent environmental, health and safety principles and practices by
their contractors, vendors and suppliers.

Ø Communicate environmental, health and safety policies and programs to Apple employees and
stakeholders.

Ø Design, manage and operate our facilities to maximize safety, promote energy efficiency and
protect the environment.

Ø Strive to create products that are safe in their intended use, conserve energy and materials and
prevent pollution throughout the product life cycle including design, manufacture, use and end-
of-life management.

Ø Ensure that all employees are aware of their role and responsibility to fulfill and sustain
Apple¶s environmental, health and safety management systems and policy.

Corporate Values

As the company has grown and been led by a series of chief executives, each with his own idea
of what Apple should be, some of its original character has arguably been lost, but Apple still has
a reputation for fostering individuality and excellence that reliably draws talented people into its
employ, especially after Jobs' return. To recognize the best of its employees, Apple created the
Apple Fellows program, awarding individuals who made extraordinary technical or leadership
contributions to personal computing while at the company. The Apple Fellowship has so far been
awarded to a few individuals including Bill Atkinson, Steve Capps, Rod Holt, Alan Kay, Guy
Kawasaki, Al Alcorn, Don Norman ,Rich Page, and Steve Wozniak.

Numerous employees of Apple have cited that projects without Jobs' involvement often take
longer than projects with his involvement. Another presents the image of Jobs wandering the hall
with a flame thrower in hand, asking random people ³do you work on MobileMe´?

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The strategic objectives should help a business to identify the direction it must take to achieve its
vision. The tools that a business uses to achieve its strategic objectives are called tactics.
Tactics are short term actions taken to achieve specific results. These tactics may include a price
war, the introduction of a new product range or marketing campaigns.

Apple has differentiated itself by offering a superior product at a premium price. Apple has
created a niche market for its computers. Apple manufactured its own computers with its own
operating system. Apple's strategic goal was to achieve a strong niche market. The computers
and operating system are superior and are favoured by people involved in graphic arts. Apple's
strategy has changed somewhat. The new strategic objective was to gain a larger slice of the
market. Apple has also strengthened its marketing campaign to sell more computers. These still
sell at a premium, but offer a superior product. What is more, the computers include a whole
range of built in software at no extra cost. But the marketing strategy is unchanged - Apple
computers with Apple software.

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1) Political-Legal Forces

Ø Different countries have different legislations and these in some ways restrict the companies or
give opportunities to the company.

Ø NAFTA, European Union and other regional trade open doors to market in Europe, Asia, Latin
America that offer enormous potential.

Ø Political uncertainties caused by terrorism activities are directly impacting the overall business
of the company.

Ø The company relies on access to patent and intellectual property obtained from third parties.
The company might unknowingly encounter infringe issues with existing patents of others.

Ø Beatles lawsuit against the company may negatively affect the company¶s reputation.

Ø The company has to comply with the environment regulations such as environment safe
disposal or recycling.

2) Socio-Cultural Forces

Ø The computer and internet usage is growing worldwide and is a good source of opportunities
for the computer industry.

Ø Customers had become more experienced and computer literate.

Ø Education has become a primordial issue for the new generation, which is a key factor for the
company¶s business.

3) Economic
Ø In the past year, the industry has been affected by the slow economic and that resulted in low
consumer spending. However the current economy shows some sign of improvement, consumer
spending and investment might increase as well.

Ø Due to weak economic conditions, the U.S. educational is encountering large budget deficits
in many states. This factor has a negative impact over Apple¶s sales in the educational segment.

Ø Sales of products that include components obtained from foreign suppliers can be adversely
affected by currency exchange rate fluctuations and by international trade regulations (tariffs and
antidumping penalties).

4) Technology

Ø Technology is evolving at a rapid pace today ,and people appreciate more & more advances in
their systems and are switching over to new information appliances.

Ø Internet availability and usage is growing and leads to good opportunities for the industry.

Ø The traditional desktop might become outdated by the entrance of new revolutionary products.

Ø Increasing demand for new technology in schools and professionals

Threat of New Entrants:

Ø Medium to High - In the PC market any firm that discovers a new technology that is efficient
in terms of price & performance is an immediate threat to the industry. However, Established
standards, start-up costs and established brands names (Intel, Windows) are difficult to overcome
for a new entrant.

Threat of substitute products:

Ø High - The new forms of Information appliance like Digital TV / HDTV Digital set- top box &
Internet screen phones are gaining increasing popularity this might hamper the growth of the PC
industry as a whole.

Bargaining power of suppliers:

Ø High - Since the industry is highly dependent on component suppliers, a powerful supplier
could exert pressure on the market, by supplying components at a higher price to increase his
profits. Since Apple is working only with few selected suppliers, the company is running at a
higher risk than the average.

Bargaining power of buyers:

Ø Low - Due to high number of other suppliers in the industry the customer has the options to
take the cheapest and the best.
Rivalry among competition:

Ø High - Competition among the giants is fierce, everyone aiming for a larger market share
,intensive price cuts & changes.

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A. SWOT ANALYSIS

Strengths Weaknesses

1. Ease of use 2. Established in the personal computer market3. High Corporate reputation 4.
Control over the product (manufacture both the computers themselves and also the operating
systems which they run)5. Leader in innovation and product differentiation6. Employee diversity
7. Strategic Alliance (HP)8. Joint venture with Pepsi9. Strong Top management10. Loyal
customer base11. Creative style 1. The ease of use has led to some image issues, with some
business people regarding the Macintosh as a toy.2. High inventory3. Distribution problems4.
high prices5. Not IBM compatible, though great strides have been made in connectivity the
Macintosh is not transparently compatible.6. Declining share in educational market7. Too many
product lines

Opportunities Threats

1. Internet2. Growing industry3. Creating new software markets and selling the hardware into
these markets.4. Demand for innovation5. Employee benefit programs6. Growing educational
market (In both higher education and schooling, the Macintosh ease of use and low maintenance
costs are attractive.)7. Music downloads from Itune 1. Very intense competition among the
industry2. Price competition3. loss of market share4. Potential litigations5. Budget deficits in
education6. Technological and prices discontinuity7. Potential increase in supply¶s costs

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