Think Differently: Steven Desteoglu Business 497 Apple Inc

Think Differently
Steven Desteoglu Business 497 Apple Inc
Table of Contents
History.............................................................................3 Key Leaders....................................................................17 Tim Cook...............................................................18 Scott Forstall..........................................................20 Jonathan Ive..........................................................21 Steve Jobs.............................................................22 Mission and Vision Statement Mission Statement Analysis...................................24 Vission Statement..................................................29 Organizational Assesment IFE.........................................................................31 External Environmental Analysis Porters 5 Forces.....................................................35 NACIS Code...........................................................37 EFE.........................................................................38 Stakeholder Analysis Stakeholder Analysis...............................................42 Top 15 Stakeholders................................................44 Strategic Decision tools Temporal SWOT.......................................................58 Performance Analysis Financial Performance.............................................61 Appendixes Appendix E..............................................................74 Works Cited........................................................................90
History
Apple Inc. Is an American based company that operates out of Cupertino, California where it all began. Apple Inc was originally named Apple Computers Inc by two college drop outs, Steve Wozniak, 28 and Steve Jobs, 21. Their computer partnership started in 1976 when they sold their most valued items, which included calculators and a VW van so that they can raise enough money ($1300) to start a company building computers. Their first orders came from a local retailer that order a romping 50 computers, which didnt even include a power supply or a keyboard. The duo built the computers computer in the garage of Steve Jobs mothers house (OGrady, 2008). During that same year they sold a total of 200 more to hobbyists in the San Francisco area. They sold for a grand total of $666 each, ,which is over $2,000 today (adjusted for inflation). Later that year, Wozniak started to develop the next computer for apple.
While the Wozniak was designing the next computer for Apple, Jobs went on a hiring spree, hiring local computer nuts to help build the circuit and mother boards for the company. He also sought out retired electronic engineer, Mike Markkula, which managed the marketing for Intel, to help Apple Computers to become a big company ( Linzmayer, 2004). Markkula ultimately paid $250,000 for 1/3 of the company and helped Jobs with the companies business plan. Jobs hired Mike Scott as Apples President, while Wozniak worked full time as an engineer. Jobs, recruiting of top
executives didnt stop there. He landed the owner of one of the most successful firms for advertising, Regis McKenna. Regis McKenna, was brought in to help devise an advertising strategy for Apple. His first order of business was to to create the Apple Logo and he began placing adds in consumer magazines for Apples computers ( Linzmayer, 2004). As a result of the hiring of McKenna, Apples annual sales reached a cool $1 Million by placing the second generation of Apple computer, the Apple II into retail stores. It wasnt what we think of a computer as of today. It had a television as the screen, and it was the first microcomputer to use color graphics (Moritz, 2010). Since the first Apple computer, Apple has been an innovator and it continued with the Apple II. Wozniak, the brains behind a lot of the inventions coming out of Apple, invented the Apple Disk II. The Apple Disk II allowed Apple to push the computers past the hobbyist and on the consumer with the Apple Disk II allowing for programs to be produced for the computers (Linzmayer, 2004).
The next year (1979), Apple introduced what was to be their 3rd generation of computers, the Apple II+ which included a lot more memory in the computer, the Silentype, Apples first printer, and an easier startup system. Later in 1979, the fist microcomputer spread sheet, VisiCalc, was released and helped the Apple II+ sales take off. Apples sales were up by 400% from the previous year with a sale of over 35,00 computers. Apple furthered their sales by introducing Fortran, a programming language that allowed programers to create programs for Apples computers (OGrady, 2008).
In December of 1980, Apple decided to go public and offer 4.6 million shares. Each share sold for 22 dollars each and were sold out within minuets of the offering. There was a second smaller offering of 2.6 million shares, but they also sold out quickly in May of 1981 (OGrady, 2008).
In September of of 1980, Apple Computers released the fourth computer, the Apple III. They released the computer without testing it adequately, so they had to halt the production of the computer. The Apple III never really sold what it was suppose to sell like and was over taken in the business sector by IBM ( Linzmayer, 2004). Ignoring the problems that they had with the Apple III, Apple computers decided to continue on by tripling the R&D budget. By tripling the budget to $21 million, it allowed them to open offices in Europe, producing their first Hard Drive and releasing 40 new software programs. By 1982 Apple had sold over 650,000 computers worldwide and in December of 82, reached $1 billion in sales. The first personal computer company to do so (Hogan, 1987).
1983 was a big year in Apples history. It wasnt a very positive year to say the least. Apple, lost its spot as the top personal computer supplier in Europe to IBM because their latest computer names LISA was a big flop. Apple tried to challenge to IBM in the business sector, by introducing the mouse and pointer system that displayed pictures instead of using a keyboard to enter commands. The problem that apple had with this was that they had a tough time figuring out how to link the computer together
(Hogan, 1987). These different innovations came out of Jobs vision to have one computer that everyone (businesses, and personal users) can use. In 1983, Apples stock plummeted to half of its 1982 sells to $35 per share. Jobs also replaced Markkula as president of Apple with former Pepsi-Cola present John Sculley (OGrady, 2008).
1984 saw the debut of the Macintosh computer, which was Apples first true personal computer. It offered all the innovations of the LISA, but just a portion of the price tag that the LISA carried. This is the first computer that was specifically designed for someone that had very little technical know how. Apple sold more than 70,000 of these Macintosh computers within the first 100 days. This was also the first Apple computer that was launched with a television commercial (Hogan, 1987). This is one of the most famous commercials in history. It aired during the 1984 Superbowl and is the commercial that has the athlete running toward the big screen of the guy talking with a hammer in her hand. She stops and swings the hammer and breaks the screen. The people walking are like the drones that the PC market has created and the athlete is suppose to represent Apple as this new competitor and will break the mold with new innovative things. However, with a favorable start the computer fell off and the internal issues of Apple, continued and eventually came to a boiling point. Jobs, which is the guy that brought Sculley in, decided that it was time for him to go, so he tried to oust Sculley, but he eventually lost the perusing battle and with Scully reorganizing Apple in 1985, Jobs and several other executives left Apple to form the computer Company NeXT (Mortiz, 2010).
In 1988, Apple severely mismanaged their inventory of chips. With the shortage of memory getting worse, Apple purchased a huge supply of it, but the shortage ended and they were faced with all these memory chips at a high price, so they sold their machines for a higher price, but costumers were more inclined to purchase the lower models or competing companies computers (Funding Universe, 2011). Apple also produced software that allowed Mac based computers connect to the IBM based computers. It was grew VERY fast. Apple had over 14,600 employees, $4.07 Billion in profits, where $400 Million was from sales.
In 1988 Apple was reorganized, into four different divisions including, Apple USA, Apple Europe, Apple Pacific, and Apple Products. Many executives didnt like this divisions so they left. Sculley believed that this was good for the company because it allowed for more creative innovation throughout the company (Funding Universe, 2011). This division has allowed apple to become a larger supplier of computers and devices to the education field and the personal consumer, which at the time and currently is the fastest growing industry in the the United States and some would argue the world. Decline in Apple
The early to mid 1990s saw the decline in Apple as a industry giant and as a inovative company. Apple was soaring high after the success that they had in the
1980s with their products of Macintosh computers. Apple had relied on their large computers that had user friendly graphics, but as the competition figured this out, Apple had to act fast. Apple saw their profit margins sinking with their high cost of manufacturing. Apple, in 1991 laid off nearly ten percent of their staff, moved their plants in cheaper areas, consolidated plants, and they also altered the organizational charts dramatically (Apple Museum, 2010). Looking for new frontiers to move into, Apple released their first laptop, the PowerBook, in 1991.
Apple saw one CEO after another in the 1990s fail miserable with many of the products that apple produced. Apples CEO Michael Spindler, broke Apples tradition of selling its own products, by licensing them to outside companies, which eventually tore into their profit margins (Apple Museum, 2010). Spindler also watched over the Power Macintosh in 1994. Apples Power Macintosh was huge success, but when they underestimated the amount that they needed, Apple fell 1 Billion dollars behind in orders, which the board of directors didnt like and within a 2 day period the Stock Dropped to 15% in 1995.
Which the gigantic mishap that Spindler had in 1995 with the Power Macintosh, Apples board of directors decided to replace Spindler with Gil Amelio. Amelio was suppose to be able to take Apple to the next level with his talents. But, just like Spindler, Amelio couldnt. He cut apples payroll by 1/3, and slashed Apples cost of operation (Apple Museum, 2010). The issue was that he failed to align himself with the vision of
the company and comtinued to mount Apples losses with $816 million in 1996 and $1 billion in 1997. The Stock for Apple, which once valued at a staggering $70 per share, now was traded for a mire $14 per share (Apple Museum, 2010) Rise of the iDevice 1997 marked the worst years the Apple has ever seen. When Apple had its first IPO, it was valued at $22 per share, now as Apple is valued at $14 a share the board was looking for a drastic overhaul. Apple, bought Steves Jobs company NeXT for $377 million, which had sales of only $50 million. Jobs, was hired to be the special advisor to the CEO, but only 2 months after Amelios exit from Apple, Jobs was named CEO of the Company. Jobs, began a total overhaul of the company. He eliminated all but 4 of the companies products, with marked the end of Apples involvement in printers, scanners, PDAs and other products (Mortiz, 2010). Jobs then began laying off thousands of Apple employees, sold stock to his rival competition, Microsoft Corporation, closed many of their plants and ended license agreements with companies to make clone products. All this amounted a $150 Million in cash infusion (Apple Museum, 2010).
In November of 1997 Apple launched the Apple Store which allowed people to buy products from apple online. Apples organizational hierarchy underwent a massive reorganization. The biggest indication of jobs return to the company came in the year 1998. Jobs, frustrated with Apples lack of interest in their computers that retailed for under $2,000, decided to tap every available resource that Apple had at their disposal and introduced a sleek, completely redesigned computer. The iMac, which had Apples
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vision, skill and creativity put into a colorful computer proved to the begining of the irevolution (Apple Museum, 2010). This computer proved to be the turn around that Apple had been looking for. Riding the back of Steve Jobs, Apple once again became a profitable company. Apple was also looking to develop new software for Mac based computers, purchasing Final Cut from Macromedia. Jobs, enlisted help form many designers including one that led to many of Apples designs. Jonathan Ive, was Jobs best designer with led to the designs of the iPod and iPhone.
Apple produced two new video editing softwares including final cut pro and iMovie. Over the next coupe of years Apple worked on its software development over everything else. Apple wanted to develop a core of software items. Apple developed, what they hope would rival Microsofts Windows operating system. In March of 2001, Apple releases its major operating system in years, Mac OS X. It was based on jobs NeXT OPENSTEP and Unix. Jobs and Apple had wanted to create a operating that could be used by professionals as well as just the normal consumer. One that had the ease of use of previous operating systems, but had the security, reliability and stability of the Unix system. The operating also was backwards compatible with Mac OS 9, in terms of software use (Apple Museum, 2010).
Just two short months later, Apple did something that none of its competitors had done. They opened two retail stores that sold ONLY Apple products. This had not yet been done by any of Apples major competitors. Apple, bought Spruce Technologies,
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which was a DVD Authoring company in July of 2001. Later on in 2001 Apple ventured outside of the world of computers. Jobs, saw this potential for what the future holds. Jobs began creating a device that can hold music, but you can also bring it with you. Apple announced in October of 2001, the creation of the 1st iPod. This was, up until that date, the most innovative device to roll off Apples shelfs, selling over $100 Million in the first 6 years of existence. Beginning in 2001, Apple progressively abandoned the use of translucent colored plastic that was used int the iMac G3 series. They started by using titanium for the PowerBook, then a white polycarbonate iBook and finally ending with the flat-panel iMac. Also, beginning in 2001, Jobs and Apple decided that they needed someway of getting music to a person. And in 2003, they rolled out the Apple iTunes Store. The store, which is similar to the Apple Store, sold music for 99 cents per download. It also integrated the use of the iPod with iTunes for managing your music. This was a huge success and continues to be. On February 24th 2010 Apples iTune Store hit its 10 billionth download, making it the largest digital store ever (Apple Museum 2010).
Apple made a huge move on June 6, 2005 announcing that Apple had decided to start building computers that would have intel core duo processors. Why was this significant? Its because intel computers are faster and better, especially for streaming music, watching video and multitasking. Apple also announced that it had developed the program, Boot Camp, which allowed Microsoft Windows to ran next to Mac OS X. Apple also surpassed Dell in market cap, which evidentially Dells CEO said that he would just
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sell the company and pay out to stock holders, just nine years earlier (Hesseldahl, April 2006). Because of all the success Apple was seeing, they saw a tenfold rise in their stocks.
MacWorld 2007, would prove to change the Smart Phone world. In January 2007, Apple held their annual event, MacWorld. This would show case their new products that they had developed. Well, on January 9, 2007 Apple CEO Steve Jobs announced that Apple Computers will be known as Apple Inc, because they had shifted their emphasis from computers. During the Keynote Jobs, wearing his famous black shirt and jeans, announced that they had created a wide screen, iPod, a Phone and a internet communication device. He then went on to say that they werent 3 separate devices, but one called the iPhone. This device revolutionized the smart phone market. The tag line for this was that Apple has reinvented the phone (Steve Jobs, 2007).
The iPhone helped Apples stocks skyrocket, as well as Apples sales. Apple Launched the iTunes App Store in July of 2008, which sold applications for the iPhone and iPod touch. Within the first month, the store had sold over 60 million applications and were brining in $1 million daily (Flandez, August 2008). In October of 2008, Apple became the third largest mobile phone supplier in the world. In December, Apple announced that they will not be attending the MacWorld Conference after 2009 after 20 years of doing so. They instead created a World Wide Developers Conference that show cased Apple products.
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On January 14th, 2009 Steve Jobs announced that he will be taking a medical leave of absence until the end of June. 6 months, due to his health concerns. He stated that it would allow Apple to focus on its product development more without the interruption of constant questions about Jobs health and allowed Jobs to focus on his health. The interim CEO of Apple was Tim Cook (Apple.com, 2011).
Apple focused on refreshing their product line every year. Every year brought something new to the stage, whether it be a refreshed MacBook, iPod, or iPhone they refreshed them all. On January 27, 2010 Apple propelled them selves into a whole new product line or market the tablet device (Apple.com, 2011).
The tablet device wasnt something that a new thought. Microsoft tried to introduce a tablet pc device in 2001, which wasnt taken over so well, and linux introduced tg Nokia N800, which ran windows 98, but never made a splash, ad during the 2007 MacWorld, Axioron introduced the Modbook, which was a modified MacBook, but the wasnt successful (Apple Inc., Press release, 2010).
Apple, started the Keynote on that day saying that they are the largest mobile device company, bigger than Nokia, Samsung and Sony. They started off by showing that they are a mobile device company with their iPhone, iPod and MacBook laptops.
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They showed how everyone uses a smart phone and a laptop. They ask the question is there room for a 3 device in the middle? Jobs then said that the device would have to be better than both in Browsing the web, writing emails, photos, video, music, games and eBooks. Jobs, says that people think that its a netbook, but he says that its not better than anything. Jobs, then says that they developed something better. He then introduces the iPad (Keynote, January 27, 2010).
Apples iPad revolutionized a new category just like the iPhone did in 2007. Apple introduced this device that allowed you carry it easily around with you, read your books, watch movies and play games on. It sold over 500,000 in the US in the first week alone. That was an astronomical figure to reach (Apple Inc, press release, 4/2010).
In May of 2010, Apples market cap eclipsed that of its competitor Microsoft for the 1st time since 1989. In June of 2010, Apple released the 4th generation of iPhones. It featured video calling, multitasking and a stainless steel design. Later that year Apples exclusive contract with AT&T ran out and they began selling the iPhone 4 on Verizons cell service. iPhone 4 is on sale in 88 different countries (Zayawa iPhone 4, June 12, 2010).
In June of 2011, Apple revealed a new storage system with is called iCloud. It allows you to store you music, documents and files in what they call the cloud-Apple. This allows the user to retrieve their files from anywhere in the world, on any mobile or
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stationary device. They also announced their worlds most advanced operating system, the Mac OS X Lion. This is seen to be the most advanced system by any operator manufacture. Upon the 1st day of release, the OS was downloaded 1 million times. Apple only released it through its Mac App Store, created in 2010. (Apple Inc. 2011).
The biggest news with Apple recently is the resignation of their Founder and CEO, Steve Jobs. In a letter to the board on August 24, 2011 Jobs announced his resignation from the position of CEO and asked to kept on as the director of the board. He also recommended that Tim Cook, the companies COO, be named CEO of the company, and the board accepted his recommendation and him as the director of the board (Apple press release, August 24, 2011).
Apple has also grown exponentially since the time of Steve Jobs and Steve Wozniak, building computers in Jobs garage. As of September 25, 2010 Apple Inc., employs 46,600 Full-time equivalent employees and an additional 2,800 full-time equivalent temporary employees and contractors (Apple Inc. Annual report, 2010). This include operating segments in the Americas, Europe, Japan and Asia-Pacific (Apple Inc. Annual report, 2010). Apple currently has 345 retail stores world wide in 11 different countries.
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Apple Has been at the for-front of the technology revolution. They have revolutionized the way we use technology in our everyday lives. Apple is the worlds biggest company and will stay that way for a long time.
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key leaders Every company has those leaders that are above the rest and without them may not be where they are today. Apple is one of those companies. Apple has had a their share of CEO's and executives that they may or may not be proud of, as well as employees. There are just a few people that influence Apple and the direction that they are headed. These key leaders are the most influential people at Apple and will be influential Apple for a long time coming. The key leaders for the company include current CEO Tim Cook, current Senior Vice President of iOS Software Scott Forstall, current Senior Vice President of Industrial Design Jonathan Ive, and finally former CEO and current Chairman of the Board Steve Jobs. Each of these men have their own importance to Apple and has had/haves a huge hand in the way that the company is headed. These men are the top, most important executives of the company.
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Tim Cook Tim Cook became Apple's CEO on August 24 2011 when the former CEO, Steve Jobs sent his letter of resignation to Apple. Cook has been the interim CEO of Apple on two separate occasions when Jobs took medical leaves of absences, then most recent being from January to June of 2011 (Gadget lab, 2011). Cook has been seen as the man that is in charge at Apple. Tim Cook was hired by Apple company in 1998 as the senior vice president of operations and was quickly promoted in 2002 to world wide sales. Before coming to Apple, he was responsible for managing Compaqs entire product inventory. Cook has helped perfect Apple's inventory management. Apple, which will regularly launch big new products, has few of the old products left in inventory at the end of their cycle. It has helped the the company avoid having to discount the old ones in order to get them off their shelves (Gadget lab 2011). Almost from the very first time that Cook turned up at Apple, he knew he had to stop Apple from manufacturing its own products. Cook established relationships with companies to manufacture Apples products and he closed all of Apples plants and warehouses all around the world. Because of this, Apple's inventory, which is measured by the time that was on Apples balance sheet quickly fell from months to days (Gadget lab 2011).
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Tim Cook has made a huge contribution to Apple by doing this. It allows the company to show a greater margin because the product isnt sitting on the shelves for as long. You can think of it this way; A company has two main ways to create profit margin. The first is to charge a high price for their product (which Apple does). The second is by reducing their costs, which is what Cook did when he arrived at Apple (Lashinsky, 2008).
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Scott Forstall Who is Scott Forstall and why hasnt anyone really heard his name before? Well it is because Scott is the Senior Vice President of iOS Software, meaning is he the man behind the software that runs on every Mac, iPod, iPhone and iPad. He is extremely important to the company and is one of the people that has helped Apple pull its self out of the trenches (Caulfield, 2010). Scott is the man that redesigned the operating system for mac, the OS X. He was one of the engineers who followed jobs from NeXT computers. He leads the team that has creatively come up with the user interface for the iPhone, iPod and iPad. This along with his most notable recent release of the Mac OS X Lion, has proven that he is a software genius and will continue to push the company in the right direction (Caulfield 2010). Due to Apple Company culture of secrecy there isnt much on Scott Forstall.
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Jonathan Ive Jonathan Ive is a british poly technical school graduate that went on to be the design genius behind Apple's products (Waugh 2011). Fourteen years ago, Apple irked Ive to start designing the next iMac. This would be Ive's first creation at Apple so he wanted to make a splash. Ive went to a candy factory to watch the process of candy making and to get inspiration for the color scheme of Apple's iMac that jobs wanted. Ive chose colors that would let the consumer know that the iMac wasn't just for business but also for fun (Waugh 2011). Jonathan Ive was recruited to work at Apple in 1994. At that time he was working out of a basement office producing a lot of prototypes. His prototypes weren't really met with a warm reception and none of them were really built (Waugh 2011). Ive was ready to pack it up and move back to England when in 1997 Steve Jobs came to town and decided to tear down a lot of the product lines that they had and move Ive's office into
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the main building and beefing up the security that they had so that leaks wouldn't get out. Ive was created is credited with the success of Apple from the design stand point. Ive is credited with designing all Apple's current devices. Ive has designed all of the current iMacs, as well as all iPhone, iPad, iPod and laptop models (Waugh 2011). Ive has driven Apple's creations to a whole new level and has made Apple's products the most iconic products in the world.
Steve Jobs Finally the man that has been the driving force and visionary of Apple for the past 14 years, Steve Jobs. Jobs has been the man that has brought Apple back to glory since his return in 1997. In 1976 with nothing more than his friend Steve Wozniak and a garage he started building the first Apple Computer. In 1985, with a depute with the executives of the Apple, Jobs ended up leaving the company and starting NeXT computers. NeXT Computers were only a brief stopping point for Jobs. Jobs, in 1997 sold NeXT computers and its technologies to Apple and Jobs was brought back into the Apple mix. Later in 1997 Jobs was named intern CEO and started to take to company to heights that it wouldnt even been able to imagine. Jobs immediately redid the entire company from top to bottom and got rid of 15 of the 19 product lines and began to think
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of the best new product. In 1998, jobs took the company to new innovations with the invention of the iPod (Apple Museum 1998). Jobs also reinvented the Mac operating system as well as the smart phone and personal computing experience. Jobs has a leadership style that is very unique to his own. Jobs leadership style is evident from just looking at the company from the outside and by looking at the company as a whole. Jobs leadership style is very innovative. He allows for the people that works for Apple to be innovative and creative with the products that they create. It creates an atmosphere that allows their minds to run free. He also believes in thinking about the future and not what is going on now (Apple Museum, 2008). Jobs redesigned the way that Apple has done business and made Apple into a multi million dollar company that produces nothing but the best products. Jobs, has hired the best in the business to make the products that he dreams of. Jobs hired the current CEO, and all of the Senior Vice Presidents. Jobs has revolutionized the way that Apple makes products and it will continue for a very long time.
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Mission and Vision Statement
Mission Statement A companys mission statement defines who the company is and what it is that they do. A companys mission statement is about who that they are now, not where they are going. A mission statement helps a company become more successful, actually a company with an operational mission statement is 30 % more likely to succeed (Finn, 2011). According to David, some 90% of all companies have used a mission statement over the past five years. This is an outstanding number of companies that are finally catching on. According to David there are several things that effective missions statements are. A few of them are that they are broad in scope, they arent excessively specific, they reconcile the interests among the stakeholders, they motivate readers to action, they arouse positive feelings and emotions, they reflect judgements, they are dynamic in orientation, and a basis for generating & screening strategic options (David 2009). According to David, mission statements vary in content, format, length, and specificity. David has 9 essential components to it. They are; 1. Customer Who are the firms customers? 2. Products or services What firms major products or services?
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3.
Markets Geographically, where does the firm compete?
4.
Technology Is the firm technologically current?
5.
Survival, growth and profitability Is the firms committed to growth financial soundness
6.
Philosophy What are the basic beliefs, values, aspirations and ethical priorities of the firm
7.
Self-concept What is the firms distinctive competences or competitive advantage
8.
Concern for public image Is the firm responsive to social, community and environmental concerns?
9.
Concern for Employees Are employees a valuable asset of the firm?
These nine components put together make up what a great mission statement. Apple Inc, is no different from any other company out there. They know that it is very important to have a mission statement. According to Apples website their mission statement is as follows; Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with
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its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.
The chart below shows the nine components that David states along with if Apple incorporates that in their mission statement. Component Customer Products or Services Markets Technology Apple Inc. Mission Statement Piece Apple designs Macs, the best personal computers in the world, iPods, iTunes, OS X, iLife, iWorks, professional software, iPhone, AppStore, iPad Apple designs Macs, the best personal computers in the world Apple reinvented the mobile phone
Survival , growth profitability Has recently introduced its magical iPad which is defining the future of mobile media and computing devices Self Concept Concern for public Image Concern for Employees Philosophy Recently introduced its magical iPad which is defining the future of mobile media and computing devices.
As you can see even though Apple is the top company in the industry, they dont have all 9 components of a good mission statement. I propose the following as a mission statement.
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Apple Inc is devoted to being the best in the mobile computing business, while upholding the highest standards of integrity. Apple plans on doing this by using our innovative mobile device, such as our iPod, iPhone, and iPad, iTunes, App Store as well as our line of personal computers, professional and creative software to deliver the best possible products to our customers world wide. Apple is also committed to distributing these products with care for our employees, environment and keeping Apple as the number one company in mobile devices.
It covers all 9 of the basic elements of the mission statement as laid out by David.
Finns 3 Questions In addition to Davids nine criteria Dr. Finn has his 3 additional questions that should be asked. They are essential to what a mission statement is and to see if its a true driving document (Finn 2011). 1. Does a Mission Statement Exist? Yes and no. They have something like it, but its more of a value statement compared to a true mission statement. 2. Do the People working at Apple know the mission statement? Yes they do. I personally went into the Apple Store and asked them and multiple employees told me that they had the mission hanging in the back.
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3.
Can you see the mission? Yes, you can see what they have as a mission statement being implemented at the stores and in the company. They do have the most innovative products and they are at the forefront of the technical revolution.
These three questions allow the company to view their mission statement and move in the right direction. As shown in David and as told by Dr. Finn, a company that has a operational mission statement is 30 % more likely to succeed.
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Internal Factor Evaluation
An internal factor evaluation or IFE is considered to be one of the strategic management tools for auditing the companies major strengths and weaknesses in the businesses functional areas (Maxi-pedia, IFE Matrix). The IFE shows us what is identified as our internal strengths and weaknesses and then we give it a weight to show how important it is to our business. They rang for our major weakness (1) to our major strength (4). After each strength and weakness is given a score then we multiply the score by the weight and then add all of the weighted score together and come out with one total weighted score (Maxi-pedi IFE Matrix). Apple Inc, even though one of the biggest and most successful companies around, arent adverse to having to deal with some weaknesses that they might have, and they have them, every company does.
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Key Internal Factors Strengths 1) Brand Name 2) Low debt 3) Growing device Sales 4) Niche Audience 5) Increase of Retail Stores 6) iTunes/ App Store 7) Developing Software/ New Technology Weaknesses 1) 2) 3) 4) 5) 6) Legal Proceedings High price for products Losing Prototypes Slow initial turnaround Lack of presence in Business field Certain Software not Compatible
Weight
Rating
Weighted Score
0.12 0.12 0.10 0.07 0.09 0.08 0.05
4 4 4 3 3 3 4
0.06 0.06 0.09 0.05 0.06 0.05
2 2 3 3 1 4
Total
Strengths Apple has made their money off being the best and making their brand name. Their brand image is one of their major strengths that Apple has. It has become a recognizable symbol across the globe. Another one of their strengths is that they have a low debt being carried. They dont own manufacturing plants, or anything that is related to manufacturing. They own their campuss across the globe. They have a large cash on hand and able to pay for everything straight out with their cash. Their devices are top of the line. There isnt a company that compares to them in the device. Their iPad continues to out sell any other tablet device on the market. Apples iPhone and iPod are the leading the industry in their respective categories.
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Apple has had the uncanny ability to produce the software that meet the need of their target audience. They have produced a lot of the needed software that people would use on their machines. They have been able to create software that customers that use a windows pc are able to migrate their files and their programs. Apple has the iTunes and App Store which is very important to their lively hood, because they are able to make a lot of money off that store.
Weaknesses One of their biggest weaknesses has came in recent years. Their biggest weakness in recent years has been them losing their prototype iPhones. They have lost 3 prototypes in the past 2 years at bars in california. They have been dropped or left by people testing these phones outside of the Apple Campus. This is a big issue for Apple because apart of their lore is their new phones and updated devices and if they are letting them out of their sight, people all around the world will lose interest. Another issue that they have dealt with in recent years is the capability of certain software not being compatible with their computers. They have created this program called boot camp that allows windows to be ran next to the Mac OS X on the Apple computer. Apple is also tied up in a bunch of legal proceeding but that is to be expected from such a large company. Most recent is Apple vs. Samsung in the EU, and Australia. Apple claims that Samsung has infringed on their patents and has had a judge block all of Samsung Smart Phones and Tablets from being sold in the EU and in Australia.
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Apple has been dealing with their weaknesses and have been implementing measures to make sure that they are dealt with. They have also been playing off their strengths to create this culture to Apple that has almost become a cult. I would suggest that Apple continues to implement the measures needed to make their strengths stronger and weaknesses a strength.
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Porters 5 Forces
Porters five forces is a model that discusses a focus on the external environment the company has to be able to cope with in their ability to plan for the future. Apple Incs industry is really undefinable. They used to be in only the computer industry but as we all can now tell, they are more of a mobile device company. Yes, they still make the personal computer but their bread and butter are their mobile device division. It is necessary for us to do a five forces analysis for all of their divisions and not just Apple as a whole. Below is Porters Generic five forces model;
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The five forces are as follows 1. Threat of new Entrants 2. 3. 4. 5. Development Channels Government Regulation Patnets Assets Purchasing economies of scale Competitor Retaliation Bargaining power of suppliers Is there a huge cost to switch suppliers The power of suppliers tends to be the inverse of the buyers power The brand name of the supplier is powerful Does suppliers want to enter your market Fragmented customer Bargaining power of buyers There are few buyers that have significant market share Buyers buy most of the distribution Buyers want to buy your competitors Threat of substitute products or services A substitute product is available for the consumer Rivalry among existing firms
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Reduced prices among competitors Increased advertising Product differential
These are the five forces that influence the way or direction that the company is going. The easiest way to show the five forces model is put it into a chart as shown below;
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Personal Computer Low
Music Players Low
Mobile devices Low
- The cost of R&D is very - Product Differentiation: iPod and - High R&D high iPhone has its own music store, iTunes which allows customers download - Product Differentiation: - Product Differentiation: music conveniently. iPhone and iPad have addApple Computers run on on functions with their own OS and they - Cost Advantage: High demand in technology from their own PC and MP3 player Threat of are unique to their own proprietary technology. Apple has several patents for iPod. . Entry - Cost Advantage: High - Cost Advantage demand at the college level as well by the art, music and education sectors Low Threat of Rivalry - There are relatively few competing firms compared to a lot of other industries, and happy has the most Market Cap. Moderate Moderate
- There are various competing firms - There are a high number of such as Samsung, Sony, i-River, etc., but firms getting into the iPod has almost 80% of the market business, but as seen with the share. recent failure of HPs touch - But if it does not keep the products pad, Apple is highly ahead of innovative, the other companys the pack products which are lower in price than - Lower priced PC makers iPod can be a significant threat in like Dell has been barely anytime. floating Moderate Moderate - The substitutes for MP3 player can be a CD player, MD player, radio, etc.; but cheaper and easier access to MP3 files has been making customers leave from the other music players. Low - Mobile phones can be substituted by home phones, internet messengers, etc., but the main convenience of mobile phones which is the portability cannot be easily substituted.
Threat of - Many companies Substitutes including Apple have came out with tablets, which can replace a computer
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Moderate - The major suppliers are highly proprietary in Threat of technology and has the Suppliers power to impact price
High - The suppliers for raw materials and labor can be the threat, but the supplier who holds the main profitability is the song writers, singers and players. - Another big threat is the illegal free music download websites or P2P filesharing sources. Easy and cheap access to MP3 files can encourage the MP3 player market, but on the other hand, this can be the threat to iTunes. Low
Low - Todays phone has a lot of functions in addition to calling/receiving - Apple which is already in the industry of PC and MP3 mostly deals with internal mediates and suppliers.
Moderate
Low - The number of buyers is even bigger than the PCs. Also the buyers keep increasing with the new market of other developing countries.
- The number of buyers is - The number of buyers is continually Threat of huge and growing as new increasing and they keep demanding new and updated products. buyers technologies are introduced at a fast pace. - iPod has relatively loyal customers. -Apple has made them selfs different by creating their own operating system.
Apple is in the position to be the leader in everything that it does. Apple currently leads the industry in market cap among its competitors. Apple has a reputation that is unmatched by anyone and anything. According to the Porters five forces analysis the highest level of threat is in the personal computer division, because Apple is more focused on the mobil aspect of it, compared to being chained up to your computer at home. Yes, there are lower cost computers out there but Apple has a following that is unmatched by any company. I am one of those people and I wont buy a windows based pc anymore, as well as a lot of my friends. Apple is very smart in their profitability and the way that they handle the devices and new innovations. Apple has made it clear that they are on the forefront of technology and that they arent going anywhere.
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NAICS Codes 334111 - Electronic Computer Manufacturing 334119 - Other Computer Peripheral Equipment Manufacturing 511210 - Software Publishers
External Factor Evaluation An External Factor Evaluation is an effective strategic-management tool that that is used to asses the current conditions. The EFE is used to asses the external factors that contribute to your overall business strategic plan. The EFE Matrix takes your external opportunities and your external threats and places them in the matrix with weigted totals, based upon how the company has been responding to theses factors (David, 2011).
Below is the External Factor Evaluation of Apple Inc.
External Factor Evaluation

Opportunities Expansion into Business Sector Expansion of Retail Stores Expansion in Education Field Product line expansion Global Sales Expansion Easier products for Retirees Cell phone 4G LTE Threats Competitors Technology Competitor Pricing Low Software availability Substitution Recession Increasing Smartphone Market Other Music download Stores Totals
Matrix (EFE)
Weight 0.05 0.07 0.05 0.10 0.05 0.05 0.10 Weight 0.10 0.06 0.10 0.07 0.06 0.09 0.05 Rating 2 4 4 4 4 3 3 Rating 4 4 3 3 3 4 4 Weighted Score Weighted Score
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As I had mentioned above the EFE measures the external environment and the opportunity and threats that the company faces. Each opportunity and threat is weighted, then it is giving a rating based upon the way that Apple is reacting to it (David, 2011). They are rated from 1 being that they arent dealing with it, to 4 where they are reacting and dealing with it in the way that they are using it or changing it into a strength (David 2011). Apple is one of the best and most expensive companies in the world. With that said, they still have opportunities that they can participate in even though they are in many different fields. One thing that they havent really dealt with is expansion into the business sector. They tried to get into the business sector but they were unsuccessful in the 1980s. They havent tried to hard to get back in the business sector, but according to the 2011 October Apple event keynote, 99% of fortune 500 companies are testing or running application on an iOS device. Two of the biggest opportunities that Apple have are Product line expansion and mobile device 4G LTE. These two things are being dealt with extensively through Apple. Apple has expressed interest in expanding their product line that already consist of the iPhone (4, and 4S), iPad (1 & 2), iPod shuffle, touch and nano, the MacBook family, the iMac family, AppleTV, and wireless devices. They have expressed renewed interest in printers, as well as a new interest in televisions (MacWorld). They have been researching and starting to test different televisions devices that they might be able to produce. This could be a huge asset for Apple to invest in. Apple has had a huge
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success with their iMac display and hi res displays. They have been able to show that they can take Apple into the Television category. The two biggest threats that the company has is that they have a low software availability ratio compared to windows, and the recession. The software availability issue has been that apple and their partners have been solving at a furious rate. Apple has been adding more and more software to their products. They have also capitalized on the popularity of the app store for an iOS device and brought the app store to their Mac OS X operating system. Here you are able to download any mac software that you need. They have also made it so that you never need to have a CD in order to re-install it. All you have to do is log in to your account and re-download the software that you have already purchased through the app store from anywhere or any computer. This is something that they used for the new operating system. Apple has said in many statements that they are dedicated to being a green company and by doing this they are able to eliminate waste from the CDs. This was apparent this in July when Apple released their newest OS Lion. According to their press release on July 21, 2011 Apple OS X lion, which was ONLY available by download through their online store, top over 1 million downloads in the first day available (Apple press release, 7/21/2011). The second threat, which is a threat to every company, the recession. The recession has hit every company across the board, but Apple has dealt with it because they use one of their biggest strengths to combat the downfall of the economy. Acording to a 2010 article in TG Daily, Apple has continued to define the economy and continues to out sell any of their competitors (TG Daily, 2010). This is also shown with their recent
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release of their newest handset, iPhone 4S. According to Apples October 10, 2011 press release, Apple sold over 1 Million iPhone 4S handsets in the first day (Apple Press release, 10/10/2011). The way that they are able to attain these heights are by using their brand image, to harness the millions of fans to buy into their ideas and products. What does this mean for Apple as a company? This mens that Apple has to continue to work on their threats and opportunities to make them their strengths. All that they have been doing, they need to continue to do. Apple has built a company around their brand image. This has been apparent with the strong sales of their products, even after the death of their iconic leader. They need to follow the plan that Jobs, laid out for them and continue to build upon their success. Apple, really need to start focusing on the business sector, even though they havent really attacked the segment, but it is something that is there and is penetrable.
Stakeholders Analysis As in any corporation that wants to succeed, Apples stakeholders are very important to them and the way that they operate their business. According to David, Stakeholders are individuals and groups of people that have some sort of special stake in the company (2011). This means that anyone that has any stake, whether they are positive, negative, or persuadable is considered a stakeholder. Stakeholders can include, but arent limited to employees, stockholders, customers, managers, Board of Directors, creditors, distributors, the general public, distributors, governments (local, state, federal and foreign), environmental groups, competitors and labor unions (David 2011). All these different types of groups are considered stake holders of a company because they are all affected by or they effect the company in some way, shape of form (David, 2011). There are two different types of stakeholder that are recognized by the company (David 2011). The first type of stakeholder that is recognized by a company are internal stakeholders. The internal Stakeholders are made up mostly from the most important people within the company. They are the CEO, Chairmen of the Board, the Board of Directors, Top Management team, major share holders, trusts, unions, employees, and investors (David 2011). These internal stakeholders have a very high interest in the company and are perusable based upon the strategic plan that is being implemented (Finn 2011). The second type of stakeholder is an external stakeholder. These stakeholders are affected by or effect the business but they dont have any direct input to the company and their business model (David 2011). Thses types of stakeholders are the media, foreign governments, local governments, the general public, and local communities (Post 2001).
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There are two types of stakeholder models that we use. The first is a basic stakeholder model. 0 POSITIVE
I N T E R E S T
NEGATIVE 0 POWER
0 +
In the stakeholder model above you would place your stakeholders according to their interest in your company, the power that they have and whether the interest is positive or whether it is negative. Then you would draw rings to see where your more important stakeholders are and deal with each stakeholder that way (Finn 2011). Why is this stakeholder model not that good to use? Its because you need to know how to deal with each stakeholder in different ways. According to this model, Apple would deal with their TMT the same way that they deal with their competitors. This should not be the case. You have to deal with you competitors in a manner that they have different information than your TMT does. You cant be giving them the same updates as you do your executives.
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The second Model is the Finn Stakeholder model. This will be explained further down.
Top 15 Stakeholders
Apple Inc, is one of the worlds largest companies and is probably the largest mobile computing company, but just like any other company need to know who their stakeholders are. This is the hard thing for a company to figure out, because they dont understand they these are the people that essential decides whether your company succeeds or dies. As stated on previous pages, a stakeholder are individuals or groups that have some sort of stake or claim to the company (David 2011). Some stakeholders are more important to the company than others, because they have more power, or interest in the company than others and will be listened to more than others (David 2011). The following stakeholders are what I believe to be the top fifteen stakeholders in Apple Inc. 1. Tim Cook 2. Board of Directors 3. Share holders 4. Competitors 5. Cell Companies 6. Chinese Government 7. The Music Industry 8. Software Developers 9. App Developers 10. Suppliers
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11. Manufactures 12. Employees 13. Human Rights Groups 14. US Government 15. City of Cupertino
Tim Cook- Apple CEO Tim Cook became Apple's CEO on August 24 2011 when the former CEO, Steve Jobs sent his letter of resignation to Apple. Cook has been the interim CEO of Apple on two separate occasions when Jobs took medical leaves of absences, then most recent being from January to June of 2011 (Gadget lab, 2011). Cook has been seen as the man that is in charge at Apple. Tim Cook was hired by Apple company in 1998 as the senior vice president of operations and was quickly promoted in 2002 to world wide sales. Before coming to Apple, he was responsible for managing Compaqs entire product inventory. Cook has helped perfect Apple's inventory management. Apple, which will regularly launch big new products, has few of the old products left in inventory at the end of their cycle. It has helped the the company avoid having to discount the old ones in order to get them off their shelves (Gadget lab 2011). Almost from the very first time that Cook turned up at Apple, he knew he had to stop Apple from manufacturing its own products. Cook established relationships with companies to manufacture Apples products and he closed all of Apples plants and warehouses all around the world. Because of this, Apple's inventory, which is measured by the time that was on Apples balance sheet quickly fell from months to days (Gadget lab 2011).
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Tim Cook has made a huge contribution to Apple by doing this. It allows the company to show a greater margin because the product isnt sitting on the shelves for as long. You can think of it this way; A company has two main ways to create profit margin. The first is to charge a high price for their product (which Apple does). The second is by reducing their costs, which is what Cook did when he arrived at Apple (Lashinsky, 2008).
Apple Board of Directors Apples Board of Directors is made up of 5 men and 2 women which has a significant stake in the company. The members of Apples BOD are; William V. Campbell- Chairmen of the Board Tim Cook- CEO Mildard S. Drexler Albert A. Gore Jr.- Former US VP Andrea Jung Arthur D Levinson Ronald D. Sugar With these people making up Apples it means that Apples BOD is well connected to many other businesses. The Board easily effects the company and is affected by the company and the business direction that they go in. The board consists of thes 7 members and are broken down into their own committees which are the compensation committee, nominating committee, auditing committee and the board co-lead (Apple Governance, 2011). These men and woman represent the biggest and most important stakeholders in the company. They are educators, CEOs, and former Vice Presidents. Because they are such a
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diverse group of people they have 3 factors. They have action, Resources and Attention. Since they are all from many different walks of life and they all are on different boards, they have a great ability to network with other companies and other agencies (Apple Governance 2011). Top Management Team As we have learned in the past four years at Saint Rose, the top management team includes the people that are responsible for the day-to-day operations of the company. These people are the Chief Executive Office (CEO), Chief Operating Officer (COO) and the Chief Financial Officer (CFO). It also includes the executive VPs of the company CEO-Tim Cook COO (Senior VP Operations)- Jeff Williams CFO- Peter Oppenheimer SVP internet Software and Services- Eddy Cue SVP iOS Software- Scott Forstall SVP Industrial Design- Jonathan Ive SVP Retail- Ron Johnson SVP Mac Hardware engineering- Bob Mansfield SVP Worldwide Product Marketing0 Phillip W. Schiller SVP General Counsel- Bruce Sewell These people combined make up the daily day to day happenings of the company and keep the company going. These are the most important people in the company and they have very strong networking skills that help the company succeed. They have to in order to keep the company functioning and running. They have to be able to network with the people within the
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company and outside the company. The TMT, are the most important people inside the company and make the run. They resources, including capital and including natural resources.
Shareholders Shareholders are very important to the company and the way that they do their business because they want them to continue to invest in the company. So to make sure that they continue to invest in the company they will have to make sure that they are listening to them and keeping them happy.
Competitors Competitors are some of the most important stakeholders in a company. This may sound odd, but its true. Competitors are very important stakeholders, because they have the most to risk. Competitors that look upon Apple for what they are doing include; Microsoft Google Samsung Research in Motion Hp HTC Motorola Dell Aser
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These are just a few of Apples biggest competitors that they have to watch. Apple has to make sure that they dont allow their competitors to get ahead of them or get their secrets. They have to also make sure that they keep their competitors close, meaning that they keep informed on what their competitors are doing.
Cell Companies
Cell phone companies are a huge Apple Stakeholder. Apple is in many different countries and deal with many different cellular companies. Below are all the Wireless carriers that apple deals with worldwide; AT&T Verizon Wireless Sprint T-Mobile AMC 3 Orange A1 Telekom Mobistar Telenet GLOBUL Mtel VIPNet 02 Vadafone Telenor Telia EMT Sonera DNA Elsia Bouygues Virgin Mobile SFR
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Cosmote Wind Emobile Meteor TIM LMT Swsscom Omnitel Tango LUXGSM KPN Optimus TMN Beeline Si.mobile Movistar Sunrise Tesco TurkCell Avea China Unicom GTA Aricel Telkomsel XL Softbank Olleh CTM SmarTone DIGI Celcom Maxis Globe SinTel M1 Starhub Chunghwa Telecom FarEas Tone Taiwan Mobile AIS Dtac TrueMove Viettel
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VinaPhone Bell Fido MTS Rogers Sasktel Telus Lime Claro Personal Tigo Oi VIVO Mobily STC Saudi Etisalat DU
These are all of the carriers world wide that carrier the iPhone. They are all important to Apple because they bring Apple revenue from the iPhone sales.
Chinese Government
Apple is very particular about their products and the way that they are produced and where they are manufactured. Apple, has many assembly plants in China and many of the parts that they use for the assembly come from here, so it isnt hard to see why the Chinese government plays a major role in the development of Apples stakeholder model. Apple wants to keep the chinese government happy because they have to do business over there. Apple assembles all their product in china ( Apple 2011).
Music Industry
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Apple has licensing deals with record labels to use their vast song catalogs by artists from the Beatles to Led Zeppelin to Lady Gaga in the new service. As the world's biggest music retailer, with longstanding label deals for iTunes, Apple had the clout to make these deals where Amazon, Google and Spotify could not. The deals allow Apple to scan a user's hard drive and make copies of the songs in the cloud, rather than forcing users into the cumbersome process of uploading their collections. "You don't have to store every track. Which Amazon and Google do," says former CEO Steve Jobs at Apples WWDC in 2011 (Apple 2011). Apple entered the music business in 2002, when it made digital-music deals with major record labels still shell-shocked from Napster and illegal downloading. In so doing, the computer company almost singlehandedly transformed the record business' longstanding sales model from selling $15 to $18 CDs to far less profitable 99-cent digital tracks. Apple did not give music companies a cut of the iPod, iPhone or other devices, however, and record executives have loudly complained as Apple's shares have skyrocketed during the same period labels have laid off staff, cut artist rosters and in the case of once-powerful EMI, flirted with bankruptcy (Apple museum 2011)
Software Developers
Software developers are very important to the company. They are the ones that create programs and items to for the Mac. Apple has listened to them and created a Mac Development program in which a developer buys a years subscription for $100 and then Apple gives you all the tools and pre-release software you need in order to create and test the software (Apple Developer 2011).
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The tools that are included are ; Apple Developer Forums Development Videos Development Tools and Documentation Pre release Software SDKs Bug reporting
These tools allow developers a chance to develop software for the Mac and there for staying loyal to them. They are stakeholders because they make is possible for software to be developed. iOS App Developers iOS App developers are very important to the company. They are the ones that create programs and items to for all the iOS devices. Apple has listened to them and created a iOS Development program in which a developer buys a years subscription for $100 and then Apple gives you all the tools and pre-release software you need in order to create and test the software (Apple Developer 2011). Included in this section of development is; Pre-release iOS Pre-release Mac Software Developer library Developer Forum How-to videos
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Sample codes Documentation Iad producer Xcode SDK iTunes Connect Support Center
These Features allows the developers to create apps easily and submit them easily for approval. This also allows Apple to track the use of the site by the developers and see how it is being used.
Suppliers
Apple is committed to ensuring the highest standards of social responsibility wherever our products are made. We insist that our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes. Apples program is based on our comprehensive Supplier Code of Conduct, which outlines our expectations for the companies we do business with. We evaluate compliance through a rigorous auditing program and work proactively with our suppliers to drive change. (Apple Supplier Responsibility 2011).
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Apple has taken steps in the right direction with making sure that their suppliers are following ethical and moral resposibilty with their auditing for compliance and beyond compliance sections (Apple Supplier Responsibility 2011).
Apples suppliers are very important to the company because they want Apple to succeed because if they do Apple will order more and more parts for their devices. Apple has set out code of conduct for their suppliers which include;
Labor and human Rights
Health and Safety
Environmental impact
Ethics
Management Commitment
These Facilities that supply Apples products are often under strict watch and are always being audited by Apple employees.
Employees
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Apple trains their employees very well and they are given every opportunity in the company to succeed. Apple compensates them for their hard work with store discounts, as well as Apple related products and good pay (Apple 2011).
Apple employees want Apple to succeed and they are the front line in most cases with the costumer. If Apple doesnt succeed they will lose their jobs and be unemployed, so why wouldnt they want to work hard? After talking to several Apple employees in the Crossgates mall Apple Store, they told me that Apple is an exciting place to work and that they allow your creativity to flow without too many restrictions.
Human Rights Groups Human rights groups are very interested in Apple and Apple has to keep an eye on them. They have been increasingly targeting Apple due to their recent issues with a factory employee jumping off the roof of a building. They have also had to deal with the groups that think that its not right for them to be mining for certain minerals in Africa that they need (Campus Progress 2010). They have used minerals and paid for them knowing that the money goes to help fund genocide. These minerals are essential minerals for Apple to use in their electronics.
What does this mean for Apple
For Apple this means that they have a wide range of stakeholders that they have to satisfy. Apple needs to find a way to satisfy all of these stakeholders, but in the same time find a
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balance of information given out. Apple has been doing a good job at making sure that everyone is being kept in the loop to the point where they are still secretive about their products.
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Temporal SWOT
A temporal SWOT analysis is a tool that used to asses the companys internal strengths and weakness that they current hold today, as where the external factors, the opportunities and threats, are identified what may occur in the next 5-10 years down the road. All the factors that accompany the temporal are important to the company in order to make an informed decision. The temporal uses a grading system in order to rank each strength, weakness, opportunity and threat. They are ranked based upon the action that they have or havent taken with each. Strength
Product Mix
Rank
1
Grade
A

Apples product mix gives them a huge variety of products for people of all types of backgrounds Apples Brand name is recognized globally. Apple has created a cult following. Product updates every year, new and futuristic features The biggest online music store. Partnership with many different labels Over 200 stores from all over the world.
Brand Loyalty
Strong R & D iTunes Music store
4 5
B+ B+
Retail Stores
Weakness
Presence in Business segment Loss of Steve Job
Rank
5
Grade
C

Apple has shown interest in this market with their iOS devices being used in the business arena Loss of their visionary CEO will hurt them, but they have the correct people in place to continue Apple Products have to be update every year Recent Human rights violations and workers comitting suicide, has Apple being watched by human rights groups Items have recently begun to take longer and longer to ship out
Short product life cycle Human Right Violations
3 2
A A
Slow turnaround on high volume items
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Strength
Product Mix
Rank
1
Grade
A

Apples product mix gives them a huge variety of products for people of all types of backgrounds Apples Brand name is recognized globally. Apple has created a cult following.
Brand Loyalty
Opportunity
Venture into a new market
Rank
1
Grade
A

Apple has proven that they are ahead of the learning curve. Now they are able to break into new markets that they havent yet. Ie Television They have the opportunity in the next 5-10 years to have joint ventures with some of the big names in computing Cloud based computing is up and coming. With Apple making iCloud operational, they can capitalize on it and take it to the next level They have a niche community that they are in. Specifically Education and the arts. They can expand on that to include the business segment The growing population shows signs of becoming more and more technologically advanced. Apple is in the position that they can capitalize on it and market and grow.
Joint Ventures
Cloud based Computing
Large niche community
A-
Growing Generation
Threats
Growing Tablet market
Rank
4
Grade
A

Apple has the best tablet on the market and is continually developing it to stay ahead of the rest Apples iPhone 4S just sold 1 million devices in the 1st 24 hours. Apples iPhone is the leading smartphone in the world. Apples iTunes is the biggest music store out there. They are able to fight against the illegal downloading of music with this store. Apple faces a challenge in keeping it this way. The U.S Economy is in the toilet, but yet they continue to turn in multi million dollar revenues each quarter. Their products are priced high, but seen to be the best on the market
Growing Smartphone Market
Free Music Downloading
Long-term Recession
A+
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Threats
Non Compatible Software
Rank
5
Grade
B+

Yes, software for mac is hard to come by sometimes, but a lot of companies are seeing how much they can profit from it and are starting to develop their software to be Mac friendly. Example; Microsoft Office
What does this mean as a whole for Apple Inc?
You cant just look at one chart and say this is what Apple should do. You need to look at what they are strong at now and see how they can plan for the future. Apple is a very strong company, especially at their design and for-seeing where the consumer electronics market is heading, but without their visionary leader this is very difficult for them to do. Apples CEO has the insight that Jobs did and Apple believes that he can capitalize on their strengths and eliminate their weaknesses and threats that are forming. The biggest strength that Apple currently holds is their brand image. Apples brand image is next to non. Watching a news cast from the day after Steve Jobs passed away, the Japanese and Chinese citizens think highly of Apple and when someone looks at the Apple logo they know exactly what company it belongs to. Apple can use their brand image to enter into the new markets like, the television segment. Apple has been developing a television that is slated to be released in 2012 (Appleinsider 2011). They are able to use their brand image to get into the market, because people will buy it just because its Apple.
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Financial Analysis The overall performance of Apple Inc has shown great progress over the years. For each one of the ratios there was a year or two that they fell short of their goals but this is an explanation of what each one of the different ratios means and how Apple Inc has been affected by them. The current ratio, one of the two liquidity ratios, shows the overall progress of the company. Its purpose is to show whether or not the company is becoming successful or losing business. From 2006 to 2010 the percentage has gone from 2.24 to 2.01 which shows that since 2006 that Apple has been able to make more of a profit. The quick ratio, the other liquidity ratios, is used to show the companies ability to meet its short term obligations with its assets. Between 2006 and 2010 the percentage has ranged from 2.20 to 1.96 which shows a constant ability to meet its short term obligations, much like the current ratio. Apple Inc has constantly been able to over that 1% bubble although, it isnt as high as they would like. That 1% bubble explains whether or not a company will get to a point where they cant meet there short term obligations with their assets because they have more payments than assets. This is explained best by the way that Apple is turning up retail stores from all over the world. Apple has almost 250 retail stores throughout the world (Apple 2011). Debt to total assets, one of the leverage ratios, is used to show the percentage that a company has with regard to more assets than debt or more debt than assets, depending on the percentage. Between 2006 and 2010 the percentage ranged from 2.3823 to 1.5219 which is a great improvement. This shows that Apple was able to cut their debt in significantly over these few short years. This shows a constant progress and the capability that Apple has to handle their
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debt so that it doesnt take over their success. Apple debt has dramatically dropped off because of the way that they handle their supply issues and the fact that they dont own many of their building. They are currently in the process of building their new campus in Cupertino, CA which will cost a significant amount (Steve Jobs Presentation, 2011), this will increase their debt. Debt to equity, also a leverage ratio, is used to show the leverage that a company has in its industry financially although a high debt to equity can be a bad decision for investors because they usually tack on interest rates that can be somewhat high. Between 2006 and 2010 the percentage ranged from .72 to .57 which is a sign that Apple has the ability to create different services that have given them a leg up in their industry with being able to keep it low. Long term debt to equity, a leverage ratio, is used to show the way the company handles their long term debt in comparison to their financial leverage in the industry. Between 2006 and 2010 the percentages have ranged from .075 to .13 which shows that Apple has encountered more long term debt over these four years. Although it has been an increase in debt, it has not increased by a substantial amount to put the company in danger. Apple has also been accruing more longterm debt with the acquisition of supplier companies. Time interest earned, a leverage ratio, shows if the company is able to pay the interest that has accrued on the debt that they have. What this means is that a high percentage shows that the company has been able to cut down the amount if interest that they have to pay off. Between 2006 and 2010 the percentages have ranged from 2.82 to 18.5. This shows that the interest that was owed byApple was much higher in 2006 than it was in 2010. It is a good improvement for this company because it also shows the capability that they have to cut their interest on their Appledebt.
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Inventory turn over, an activity ratio, is used to show how effective a company is when it comes to the money they spend on their inventory versus how quickly they need to produce more. This is a great way to see if a company can be cost effective. Between 2006 and 2010 the percentage ranged from 63.07 to 52.51 which shows that Apple has cut the amount of money that needed to be spent on their inventory turn over. They have become more cost efficient with the money that they need to spend in order to keep themselves in business and making a profit. It also shows that Apple has been able to push their products out quicker and more efficiently, mostly by creating such a hype for their products. Fixed assets turnover, an activity ratio, which shows how productive a company is with regard to the money they make along with their assets. The percentage from 2006 to 2010 are 18.41 to 16.89 which shows they have been able to cut down on how much they are turning over their assets. It is an improvement to cut down on how much they are turning over their assets. Accounts receivable turnover, an activity ratio, which helps to show how many times per year the accounts receivable is collected over a period of time, usually a year. Between 2006 and 2010 the percentage has ranged from 17.99 to 14.71. This dropped means that they are collecting their accounts less frequently. This can be seen as a good thing because they havent had any issues with people paying them back. Average collection period, an activity ratio, explains just how long it takes for a company to collect the money that they are owed by customers or potential investors. Between 2006 and 2010 the percentage has ranged from 20.29 to 18.5 which is a small drop off. This shows that the average time that people have been paying Apple back has dropped off. This doesnt mean that their sales have dropped, it just means that they have been collecting faster.
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Gross profit margin, a profitability ratio, is explained as what the company still has left over after they have paid their financial obligations. This can determine the success that a company has or hasnt had along with the ability to continue to profit or lose money. From 2006 to 2010 the percentage for Apple has gone from 28.98 to 39.38 which is a sign of success. This means that they have found a way to continue to make money while keeping their bills relatively the same so that they can continue to profit. Operating profit margin, a profitability ratio, is used to show if the way a companys pricing strategy for their product has been efficient or not. This too can determine if a company has been able to efficiently price their product in order to continue to be productive and profit. Between 2006 and 2010 the percentage has gone from 12.70 to 28.19 which shows a huge increase in the way that Apple has been able to price their products to move. This shows that customers are more interested than they were in the past. Even with the economy the way that it is, customers still believe in Apples products and are still purchasing them. Net profit margin, a productivity ratio, is used to show how effective a company has been over time at controlling their cost. This is one determinant of how successful a company can make themselves in the future by how much they are spending and how much is left over. The percentage from 2006 to 2010 has gone from 10.30 to 21.48. This is close to the operating profit margin because the decisions that Apple has made have affected both areas which shows a common decision. Return on total assets, a productivity ratio, is used to show the money the company makes before interest and taxes. This helps to show the amount of money that they are making over all before they make any type of payments. The percentage from 2006 to 2010 ranges from .
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13.28 to 22.84. This shows an improvement in the money that they have been making. It shows that people are interested in their service and continue to be so Apple can profit. Return on stockholders equity, a productivity ratio, shows how much money the company is making off of its stockholders and shareholders. This is another way of showing how effective a company has been over the years when it comes to marketing their services to those who are investing in them. From 2006 to 2010 the percentage has gone from 22.8 to 37.16 which proves that Apple has been successful in marketing to its stock and shareholders which is one of the best ways to continue to succeed. Earnings per share, a productivity ratio, are used to show the range of money a company makes off of their common stock. The higher the percentage the more successful a company has been with their over all service. Between 2006 to 2010 the percentage has ranged from 2.27 to 15.15 which show a massive improvement in the amount of money they have been making off of their common stock. This shows a large increase in the amount of common stock that has been purchased due to their success. Price-earnings ratio, a productivity ratio, this is used to show the comparison of how much the share price is to how much money they made off of it. This can be used to determine if the price of the shares is too high or low along with determining the success of the company over all. Between 2006 to 2010 the percentage has ranged from 30.45 to 18.73. Sales growth, a growth ratio, is used to show if a company has been continuing to make money over the years and how much it has fluctuated. This can be used to determine if a company is continuing to profit and if they arent they can see what the problem is with their sales. Between 2006 and 2010 the percentages have gone from 38.6 to 30.25 which is a slight
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decrease over these four years. This shows that there is some problem in the way that Apple is handling their sales which could have something to do with the price. This can also mean that Apple introduced new products over the four years and some years saw new ones and some didnt. Net income percentage growth, a growth ratio, is used to show how much a company is able to create growth when it comes to their net income. The higher the percentage the more success a company has had from year to year with regards to their net income. Between 2006 and 2010 the percentage has gone from 48.99 to 70.16 which is a huge increase. This means that over 4 years Apple has been making money with regards to their growth in net income. Earnings per share, a growth ratio, is used to show if a company has continued to earn more and more each year from their shares that are being bought. This would show success for the company if the percentage has increased over the years. From 2006 to 2010 the percentage has ranged from 45.51 to 68.85 which has shown growth for Apple with how much they have made off of their shares of common stock. This shows an over all success for the company because with out a successful product people would not be interested in buying shares of a company. Dividends per share, a growth ratio, are used to show the amount of dividends that have been paid over the course of about a year. The more dividends sold in a year, the more money that is made for the company. This is much like the earnings per share because it can determine the success of a company. Between 2006 and 2010, Apple has not paid dividends per share. This is contributed to the fact that Apple just doesnt want to pay dividends. They make enough to but chose not to.
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Year end share price, a growth ratio, is used to show if a company has had to lessen their share price due to lack of interest in the company or financial complications. It can also be used to show the over all accomplishments of a company and attempting to make more money for the end of the year off of their shares. It also can show that a company has become more financially savvy with their financial planning and understanding the market that would be interested in buying shares. Between 2006 and 2010 the percentage has gone from $84.84 to $336.12. This shows that in 2006 Apple had a lower share price than it did in 2010. Their Share price has sky rocketed due to the introduction of Apples iPhone line ups, iPad line ups as well as major OS upgrades. Paid in capital to total capital, an equity ratio, is best explained by saying that its the money that was paid by the company from their equity alone. This means that a company is not calculating in the money that they have made for their service, only their equity. The higher the percentage the more valuable the company actually is. Between 2006 and 2010 the percentage has gone from 4.96 to 10.7 which is a very high increase. This expresses the value of Apple and their potential to become even more valuable in their industry. Earned capital to total capital, an equity ratio, is much like paid in capital to total capital except the earned capital is the money that was made by the company. Between 2006 and 2010 the percentage has gone from 5.61 to 37.2 which shows that Apple has been able to increase the money that they have earned primarily from their earnings alone. Return on stockholders equity, an equity ratio, this is used to determine how a company is spending their money. It is important that a large company be able to use their money efficiently. Return on stockholder equity can make the final determination of whether or not a
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company has an efficient way of spending their money. Between 2006 and 2010 the percentage has gone from 22.8 to 37.16 which is a great improvement. This shows that Apple has found a way to increase their efficiency of spending their money with regards to their stockholders. Change in total equity, an equity ratio, this is best explained by saying it is used for a company to get a reading of the equity accounts every period. This is known to fluctuate from year to year and it is a better reading to see what the percentages are each period rather than from year to year. Between 2006 and 2010 the percentages went from 2.51 to 20.0 which shows a significant increase. This can be looked at a few different ways but the change in equity is only used to see how efficient a company is from period to period. Cash flow from the operating account, a cash flow ratio, is used to see how the companys money is fluctuating specifically from their operations. It is a good way to see if a company is able to make money from their operations alone. Between 2006 and 2010 the percentage has ranged from -12.43 to 83.04 which is a great improvement in the money that is coming in for Apple. This shows efficient money flow and efficient decisions with regards to their operations. Cash flow from the investing account, a cash flow ratio, is used to show the way that money is fluctuation in the way the company is investing their money. In other words, they want to see that they are profiting from the investments that have been made. From 2006 to 2010 the percentage has gone from .35 to -13.9 which shows that Apple has invested a great deal of money into their products. In order for a company to know that their investments are profitable they need to have the cash flow from investing accounts ratio.
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Cash flow from the financing account, a cash flow ratio, is used track the fluctuation of cash flow involved in the finances made by the company. It is important that a company know that their financials are in tact with how much money they are making over all. They also need to track the spending that they are doing to make sure they arent creating too much debt. From 2006 to 2010 the percentages have gone from .324 to 1.26 which also a great improvement. This shows that Apple is able to handle their finances with efficient spending. Change in cash and equity, a cash flow ratio, is used to show the percentage that the company has of fluctuation between the cash they are making and the worth of the company. From 2006 to 2010 the percentage has gone from 2.90 to 6.00 which has the ability to show Apple that they have a steady amount of money coming in that equates their value as well. One thing that you can see by reading this chart is that the liquidity ratios have fluctuated. This means that the ability to cover short term obligations has fluctuated as well. All of these fluctuations are due to the fact that the amount of liquid money that Apple has had a percentage difference that went up or down every year from 2006 to 2010. Liquidity ratios are not something that can always be predicted before the fiscal year has ended because, it all relies on the amount of revenue that the company has had over the year and the amount of expenses that they had. Once this information has been calculated it becomes much easier to determine just how liquid the company actually is. It is expected that the overall percentage for each year should fall somewhere between 1% and 5%. When it reaches 5% the company is too liquid and it isnt good for business. It means that they have not sold enough stock, or found further investments that needed to be made in order to secure the amount of extra income that they would receive for each individual year. The fact that Apple has not gone over 3% means that they are right in the middle of where they need to be, in terms of the liquid money that the company
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has. Due to the fact that it hasnt gone over 3% also shows that they have made the right investments and will ensure the ability of the company to make liquid cash.
While this graph shows the progression of liquidity and sales for Time Warner Cable. Both of these companies are somewhat evenly matched. They are making very close to the same amount of money and having the same increase in liquidity. They both had their slumps, while Apple had a little bit more of a decrease, but they are both proving that they are strong competitors. The leverage ratios for Apple have also been improving. Leverage ratios explain the debt when compared to the assets. If a company has more debt than assets for a certain period of time, there is a good chance that they wont be able to recover. One way to increase assets would be to draw in more investors along with more shareholders. By doing this it lessens the chance that a company will stay in debt, as long as the product or service itself is making money. Here are two graphs that show the debt to asset ratio for Apple and Time Warner.
The key competitor as stated before is Hewlett-Packard, because they provide an almost identical service. They both play a key role in the industry because they somewhat run the industry. The equity ratio explains how well the company is managing their equity and how much is financed. (David 2011) It is important for any company to be aware of how much money they are spending to finance their company compared to how much money they are actually making from their service.
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The activity ratios explain how the firm is effectively utilizing their supplies. (David 2011) Using a ratio such as the activity ratio shows the owners of the corporation whether or not they are using their supplies in a financially efficient way. If they were not, then it would begin to show when it came into their revenue and operating cost financials. They would be forced to change their cost of operating expenses or have to face a possible debt.
This graph shows the revenues that they have made over the years.
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Profitability ratios explain how the company generates their return on investments and sales. (David 2011). Apple has shown improvements on their overall profitability ratios. This means that they are creating more money for the company by putting returns on their investments, without falling into farther debt, and that their sales have increased. Google has had increases in their profitability as well, but not without falling into debt on a more frequent basis, as shown in their template.
The growth ratios show how the organization is doing from the entire economy compared to other industries and its own. (David 2011). For Apple, they have grown immensely. The cash flow ratios are statements of cash flows (David 2011), which in other words mean, the cash that is coming and going from the company in every area. This is beneficial to the company because they are able to calculate where all of their money is going. Apple has not struggled with their cash flows. They know where the money is going and how to use it. The strategies that have created the financial conditions that have been spoken about strictly have to do with the way that Apple fulfills its own expectations. They have made all the right moves when it comes to developing certain products that customers can afford, due to the economy. Financially speaking, they have also coordinated their revenue with their operating expenses so that they arent putting themselves into further debt and will actually profit. They have also sold shares at a price that people can afford and still make money off of it. What Apple needs to do, from a strategic perspective, to improve conditions would be to find a way to cut their debt. Everything is working for them with the products that they have created. Entering new markets can help them improve their financials. Apple doesnt have a big
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problem right now that needs to fixed. Their sales have been increasing over the past four years. They have been able to increase their ability to sell product by creating new and innovative products.
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Appendixes E. Performance Analysis
Apple Inc. Liquidity Ratios Current Ratio Quick Ratio 2006 2.24 2.20 2006 Debt to Total Assets Debt to Equity Long-Term Debt to Equity Time-Interest Earned 0.72 2.82 2006 63.07 18.41 17.99 20.29 2006 28.98 12.70 10.30 13.38 22.8 2.27 30.45 2007 2008 2009 2010 2.36 2.46 1.88 2.01 2.32 2.42 1.86 1.96 Leverage Ratios 2007 0.74 5.01 2008 0.88 2009 0.93 2010 0.57 18.5 2010 Total Avg. Change Average Value 52.51 16.89 14.71 24.82 2010 Total Avg. Change Average Value 39.38 28.19 21.48 22.84 37.16 15.15 18.73 2010 Total Avg. Change Average Value 30.25 70.16 66.85 0 336.12 2010 Total Avg. Change Average Value 10.7 37.2 37.16 20.0 2010 Total Avg. Change Average Value 83.04 -13.9 Total Avg. Change Average Value
Total Avg. Change Average Value
6.89 7.98 Activity Ratios
Inventory Turnover Fixed Assets Turnover Accts Receivable Turnover Average Collection Period
2007 2008 2009 51.47 49.90 53.28 15.42 15.15 15.86 16.62 16.00 14.84 21.96 22.81 24.60 Profitability Ratios 2007 33.97 18.37 14.56 16.43 28.5 3.93 32.01 2008 2009 34.31 40.41 19.32 27.36 14.88 19.19 14.89 18.92 27.2 23.41 5.36 9.08 26.09 20.41 Growth Ratios
Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholders' Equity Earnings Per Share Price-Earnings Ratio
2006 Sales Growth 38.6 Net Income Percentage Growth 48.99 Earnings Per Share 45.51 Dividends Per Share 0 Year End Share Price 84.84 2006 4.96 5.61 22.8 2.51
2007 2008 2009 24.3 35.3 12.0 75.77 38.27 70.36 73.13 36.39 69.40 0 0 0 199.83 85.81 210.73 Equity Ratios 2007 5.3 9.10 28.5 4.52 2008 2009 7.18 8.21 13.8 19.5 27.2 23.41 6.5 6.8 Cash Flow
Paid in Capital to Total Capital Earned Capital to Total Capital Return on Stockholders' Equity Change in Total Equity
2006 2007 2008 2009 Cash Flow from Operating Act. -12.43 146.40 75.43 5.87 Cash Flow from Investing Act. 0.357 -3.25 -8.19 -17.4
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Cash Flow from Financing Act. 0.324 0.739 1.12 0.663 1.26 Change in Cash & Cash Eq. 2.90 2.96 2.52 -6.61 6.00 Microsoft Corporation Liquidity Ratios Current Ratio Quick Ratio 2006 2.18 1.94 2006 Debt to Total Assets Debt to Equity Long-Term Debt to Equity Time-Interest Earned 2007 2008 2009 2010 1.69 1.45 1.82 2.13 1.46 1.25 1.58 1.90 Leverage Ratios 2007 2008 2009 2010 Total Avg. Change Average Value
Total Avg. Change Average Value
0.74 1.03 1.01 0.09 0.11 0.0 0.0 0.0 4.81 5.74 -5.569 -6.294 -7.906 5.975 -3.353 Activity Ratios 2006 7.77 16.43 5.37 67.99 2006 84.8 37.20 28.5 17.95 28.56 1.25 21.00 2007 2008 2009 8.21 10.98 14.28 13.83 11.41 8.48 4.95 4.85 4.72 73.73 75.29 77.39 Profitability Ratios 2007 81.9 36.23 27.5 21.19 39.51 1.5 20.31 2007 15.45 11.64 18.33 0.39 35.79 2008 2009 84.2 83.6 37.23 34.85 29.3 24.9 26.01 19.34 52.48 38.42 1.93 2.03 13.79 13.60 Growth Ratios 2008 2009 18.19 -3.28 25.71 -17.60 31.69 -13.37 0.43 0.50 19.53 30.62 Equity Ratios 2010 Total Avg. Change Average Value 17.01 8.24 5.16 70.70 2010 Total Avg. Change Average Value 84.4 38.57 30.0 22.88 43.76 2.15 12.90 2010 Total Avg. Change Average Value 6.93 28.77 26.63 0.52 28.05
2006 Sales Growth 11.29 Net Income Percentage Growth 2.82 Earnings Per Share 7.14 Dividends Per Share 0.34 Year End Share Price 29.91
Paid in Capital to Total Capital
2006 2007 2008 2009 2010 Total Avg. Change Average Value 1.168 1.267 1.096 -1.044 2.156
0.987 1.661 -1.002 2.014 2.153 Earned Capital to Total Capital Return on Stockholders' Equity 28.56 39.51 52.48 38.42 43.76 Change in Total Equity -8.0 Cash Flow Cash Flow from Operating Act. Cash Flow from Investing Act. Cash Flow from Financing Act. Change in Cash & Cash Eq. 2006 14.4 8.00 -20.56 1.54 2007 17.8 6.09 -24.54 1.60 2008 21.61 -4.59 -12.93 1.69 2009 19.04 -15.77 -7.46 0.58 2010 Total Avg. Change Average Value 24.07 -11.31 -13.29 0.90
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Google Inc. Liquidity Ratios Current Ratio Quick Ratio 2006 2007 2008 2009 2010 10.00 8.49 8.77 10.62 4.16 9.63 8.12 8.03 10.08 4.00 Leverage Ratios Total Avg. Change Average Value
Debt to Total Assets Debt to Equity Long-Term Debt to Equity Time-Interest Earned
2006 2007 2008 2009 2010 Total Avg. Change Average Value 12.72 9.57 9.00 9.01 4.98 0.08 0.12 0.12 0.12 0.25 0 0 0 0 0 6.6783 9.2010 11.355 15.125 13.141 92 14 23 95 63 Activity Ratios 2006 0 6.32 7.16 14.11 2006 65.6 33.48 29.02 21.4 23.26 9.96 41.29 2007 2008 2009 0 0 0 5.16 4.70 4.69 9.11 8.32 7.91 13.54 9.74 8.13 Profitability Ratios 2007 65.8 30.64 25.33 19.2 21.16 17.81 30.26 2008 2009 67.3 69.1 30.43 35.15 19.39 27.57 14.8 18.1 16.60 20.30 17.61 20.41 26.4 24.6 Growth Ratios 2010 Total Avg. Change Average Value 0 4.65 8.65 12.24 2010 Total Avg. Change Average Value 69.2 35.40 29.01 17.3 20.68 26.31 21.8 2010 Total Avg. Change Average Value 23.9 30.44 26.76 0 596.48
2006 Sales Growth 72.76 Net Income Percentage Growth 110.01 Earnings Per Share 9.96 Dividends Per Share 0 Year End Share Price 466.00
2007 2008 2009 56.47 31.35 8.51 36.60 0.55 54.26 17.81 17.61 20.52 0 0 0 692.87 30.60 626.95 Equity Ratios
2006 2007 2008 2009 2010 Total Avg. Change Average Value 0.0296 0.3292 0.7288 0.8381 0.8322 Paid in Capital to Total Capital 47 44 39 65 76 0.9703 0.6707 0.2711 0.1618 0.1973 Earned Capital to Total Capital 53 56 61 35 68 Return on Stockholders' Equity 23.26 21.16 16.60 20.30 20.68 Change in Total Equity Cash Flow 2006 2007 2008 2009 2010 Total Avg. Change Average Value
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Cash Flow from Operating Act. Cash Flow from Investing Act. Cash Flow from Financing Act. Change in Cash & Cash Eq.
3.58 -6.9 2.97 1.00
5.78 -3.68 403.07 1.56
7.85 -5.32 87.57 1.77
9.32 -8.02 233.41 2.33
11.08 -10.68 3.05 3.42
Hewlett-Packard Company Liquidity Ratios Current Ratio Quick Ratio 2006 1.35 0.98 2006 1.87 0.07 3.04 6.00 2006 9.49 13.77 41.37 58.68 2006 24.25 7.16 82.72 7.78 16.46 1.30 4.65 2007 2008 2009 2010 1.21 0.98 1.22 1.10 0.84 0.67 0.76 0.78 Leverage Ratios Total Avg. Change Average Value
2007 2008 2009 2010 Total Avg. Change Average Value 1.76 1.52 1.54 1.48 0.13 0.20 0.35 0.38 5.63 6.77 121.18 12.26 6.26 6.33 5.23 7.08 Activity Ratios 2007 2008 2009 10.00 11.24 12.50 14.23 12.70 10.37 42.51 46.79 53.32 55.27 52.89 60.36 Profitability Ratios 2007 24.26 8.36 79.08 8.51 18.95 1.44 5.06 2007 12.78 17.20 2.68 0.32 50.48 2008 2009 24.42 23.59 8.85 8.85 80.80 79.20 8.25 6.72 21.50 19.28 1.90 1.63 5.45 5.60 Growth Ratios 2008 2009 13.50 -3.22 14.66 -8.03 3.25 3.14 0.32 0.32 36.25 51.54 Equity Ratios 2010 Total Avg. Change Average Value 15.26 10.95 50.71 55.41 2010 Total Avg. Change Average Value 23.76 9.11 80.16 7.32 21.64 2.13 6.03 2010 Total Avg. Change Average Value 10.02 14.37 3.69 0.32 42.22
2006 Sales Growth 5.72 Net Income Percentage Growth 158.47 Earnings Per Share 2.18 Dividends Per Share 0.32 Year End Share Price 41.05
2006 2007 2008 2009 2010 Total Avg. Change Average Value 1.0064 0.7714 Paid in Capital to Total Capital 5 1 0.5032 0.3501 0.2945 0.0064 0.2285 Earned Capital to Total Capital 5 9 0.4968 0.6499 0.7055 Return on Stockholders' Equity 16.46 18.95 21.50 19.28 21.64 Change in Total Equity -0.070 0.0798 -0.008 -0.011 0.2376 Cash Flow
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Cash Flow from Operating Act. Cash Flow from Investing Act. Cash Flow from Financing Act. Change in Cash & Cash Eq.
2006 11.353 -2.78 -6.0 0.70
2007 9.615 -9.12 -5.59 0.68
2008 14.591 -13.71 -2.02 0.88
2009 13.37 -3.58 -6.67 1.30
2010 Total Avg. Change Average Value 11.92 -11.35 -2.91 0.82
Personal Computer NACIS Liquidity Ratios 2006 2007 2008 2009 2010 Total Avg. Change Average Value 14.757 12.842 5 5 12.925 14.625 8.575 11.867 14.015 12.11 5 13.71 8.055 Leverage Ratios 2006 2007 2008 2009 2010 Total Avg. Change Average Value 25.441 12.805 22.509 21.787 16.599 439780 081280 551529 994363 524269 0888 3754 5515 7374 3629 1.5575 1.9225 2.06 1.2275 1.025 0.8351 1.5123 1.9044 35.347 8.9445 503006 275862 047619 446043 397489 01202 069 0476 1655 5398 5.4293 9.4820 11.921 30.388 30.058 92 14 73 45 63 Activity Ratios 2006 73.212 5 44.602 5 40.862 5 2007 2008 2009 2010 73.335 32.517 5 41.197 5 121.61 25 2010 198.92 104.43 75 100.53 Total Avg. Change Average Value Total Avg. Change Average Value
Current Ratio Quick Ratio
62.18 63.69 70.685 37.967 31.622 5 34.435 5 41.307 40.867 5 5 40.8 123.04 121.06 117.06 75 25 125.21 Profitability Ratios 2009 199.00 75 99.572 5 91.46
2006 2007 2008 185.44 187.73 191.91 Gross Profit Margin 25 5 5 89.192 Operating Profit Margin 85.17 87.33 5 Net Profit Margin 88.5 87.16 83.77 58.947 57.762 Return on Total Assets 54.675 5 5 93.907 101.65 Return on Stockholders' Equity 78.735 5 5 Earnings Per Share Price-Earnings Ratio
58.04 64.85
86.95 107.01 31.927 44.142 13.805 23.6 25.375 5 5 93.902 67.642 54.937 5 83.845 5 60.01 5 Growth Ratios
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2006 2007 2008 2009 124.08 99.415 88.215 16.425 201.43 105.01 Net Income Percentage Growth 75 128.31 68.195 25 86.502 Earnings Per Share 63.155 109.94 5 77.335 Dividends Per Share 0.42 0.47 0.51 0.58 591.01 145.00 881.18 Year End Share Price 25 941.11 25 5 Equity Ratios Sales Growth 2006 6.4092 Paid in Capital to Total Capital 595 7.5689 Earned Capital to Total Capital 655 2007 7.0890 965 11.488 9035 93.907 Return on Stockholders' Equity 78.735 5 4.4999 Change in Total Equity 5.5075 5 2006 2007 8.3882 172.38 Cash Flow from Operating Act. 5 375 0.7619 999999 Cash Flow from Investing Act. 99999 -3.12 377.87 Cash Flow from Financing Act. 18.766 15 Change in Cash & Cash Eq. 5.615 6.29 2008 9.1306 39 13.193 361 101.65 5 2009 8.0916 9 21.838 31
2010 Total Avg. Change Average Value 63.585 132.96 25 121.16 25 0.6 971.20 5 2010 Total Avg. Change Average Value 13.761 901 39.726 743
86.95 107.01
10.067 26.679 11.688 25 4 Cash Flow 2008 108.53 775 21.527 5 2009 2010 Total Avg. Change Average Value 37.572 5 121.17 38.727 42.085 5 224.94 75.255 55 9.7075 6.2 -3.375 10.525
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Works Cited
1. David, Fred R. 2011. Strategic Management Concepts. New Jersey: Full-Service
Project Manager, 2011.

2. Apple Lore: The creation of the Macintosh 3. Linzmayer, Ronald W. (1999). Apple Confidential: The Real Story of Apple
Computer, Inc.
4. (USA) "Apple Retail Store - Store List". Apple Inc.. Retrieved September 7, 2011. 5. Apple Investor Relations FAQ, Apple inc. Retrieved on September 7, 2011. 6. http://www.theapplemuseum.com/, retrieved September 20, 2011. 7. O ' G r a d y , J . ( 2 0 0 9 ) . H o w a p p l e i n c . c h a n g e d t h e w o r l d . N e w Y o r k : J a i c o
Publishing House.Retrieved from h t t p : / / b o o k s. g o o g le . co m / b o o ks/ f e e d s/ vo lu m e s ? q =9788184 9 5 05 4 0
8 . O ' G r a dy, J . (2 0 0 8 ). A p p l e in c . Ne w York : J a i c o P u b l is h i n g

House.Retrieved from http://books.google.com/books/feeds/volumes? q =97 8818 4 9 5 0 5 4 0
9 . 2010 A p p l e I n c . A n n u a l R e p o r t , ( 2010 ) . 2010 a n n u a l r e p o r t . C u p e r t i n o ,

CA:
10. A p p l e I n c . B u s i n e s s a n d c o m p a n y r e s o u r c e . G a l e . R e t r i e v e d f r o m
h t t p : / / g a l e ne t . g a l e g r o u p . c o m . e z p ro xy.s t r o s e . e du / s e r v l e t / BC R C ? vrsn=unknown&locID=nysl_ca_csr&srchtp=glbc&cc=1&c=1&mode=c&ste =60&tbst=tsCM&tab=1&ccmp=Apple I n c . & m s t = a p p l e & n = 2 5 & b Co n t s =13247& se s= 1

Think Differently: Steven Desteoglu Business 497 Apple Inc

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Think Differently: Steven Desteoglu Business 497 Apple Inc

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Think Differently

Steven Desteoglu Business 497 Apple Inc

Mission and Vision Statement

Markets Geographically, where does the firm compete?

Technology Is the firm technologically current?

Self-concept What is the firms distinctive competences or competitive advantage

Concern for Employees Are employees a valuable asset of the firm?

Internal Factor Evaluation

0.12 0.12 0.10 0.07 0.09 0.08 0.05

0.06 0.06 0.09 0.05 0.06 0.05

Reduced prices among competitors Increased advertising Product differential

Personal Computer Low

Music Players Low

Mobile devices Low

Below is the External Factor Evaluation of Apple Inc.

External Factor Evaluation

Labor and human Rights

Health and Safety

What does this mean for Apple

What does this mean for Apple

Strong R & D iTunes Music store

What does this mean for Apple

Short product life cycle Human Right Violations

Slow turnaround on high volume items

What does this mean for Apple

What does this mean for Apple

Cloud based Computing

Large niche community

What does this mean for Apple

Growing Smartphone Market

Free Music Downloading

What does this mean for Apple

What does this mean as a whole for Apple Inc?

Appendixes E. Performance Analysis

Total Avg. Change Average Value

6.89 7.98 Activity Ratios

Total Avg. Change Average Value

Paid in Capital to Total Capital

3.58 -6.9 2.97 1.00

5.78 -3.68 403.07 1.56

7.85 -5.32 87.57 1.77

9.32 -8.02 233.41 2.33

11.08 -10.68 3.05 3.42

2006 11.353 -2.78 -6.0 0.70

2007 9.615 -9.12 -5.59 0.68

2008 14.591 -13.71 -2.02 0.88

2009 13.37 -3.58 -6.67 1.30

Current Ratio Quick Ratio

1. David, Fred R. 2011. Strategic Management Concepts. New Jersey: Full-Service

Project Manager, 2011.

8 . O ' G r a dy, J . (2 0 0 8 ). A p p l e in c . Ne w York : J a i c o P u b l is h i n g

9 . 2010 A p p l e I n c . A n n u a l R e p o r t , ( 2010 ) . 2010 a n n u a l r e p o r t . C u p e r t i n o ,

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