Mission Statement

Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers globally through innovative hardware, software and Internet offerings.
Source: Apple

Apple Inc.
Frontrunner in the PC revolution Transformed PC industry with 1st Mac Expansion in consumer technology Continued innovation in tech industry

Key Dates
1976: Steve Jobs and Steve Wozniak founded Apple Computer, Inc. 1980: Apple converts to public ownership. 1982: Apple becomes first personal computer company to reach $1 billion in annual sales.
Source: Apple

Key Dates
1985: John Sculley assumes CEO role 1997: Steve Jobs is named interim CEO 1998: The all-in-one iMac is released 2000: Jobs as CEO, more tightly focused Apple, Inc.

Source: Apple

Today
Apple has 36,800 employees as of 2009 Net profit increased from 14.6% in 2007 to 15.6% in 2009 EPS doubled since 2007 to $6.29 Positive future financial expectations

Apple Stock 1 Year

Opportunity Statement
Apple Inc. currently operates in highly competitive and highly technological driven consumer electronics / computer industries. There exists opportunities to further leverage the intellectual capital and brand image along with new digital business strategies to create new sources of sustainable competitive advantage within Apple Inc.

Significance to Leadership
Discovery of untapped resources - More dedicated and loyal customer base - Higher profit margins - New sources of Sustainable Competitive Advantage

Expected Outcomes
Greater customer share Increase in profit margins Sustainable competitive advantage

Research Methodology
Secondary Research Quality Research - Environmental Scanning & Monitoring - Peer Reviewed Journal Articles

Situational Analysis
Internal Factors

Leadership | Corporate Culture Operations | Marketing | Finance | HRM

Situational Analysis
Internal Factors

Leadership

Leadership
Steve Jobs Co-Founder/CEO/Director o1976-1985/1996-Present College dropout Perfectionist Founded company with Steve Wozniak
Source: Reuters

Leadership
Peter Oppenheimer CFO/Senior VP o1996 - Present Former CFO of Automatic Data Processing, Inc. (ADP)
Source: Reuters

IT Consulting firm

Leadership
Timothy Cook COO o1998 - Present Previously VP Corporate Materials for Compaq Computer Corp. COO for Intelligent Electronics
Source: Reuters

Situational Analysis
Internal Factors

Corporate Culture

Corporate Culture
Work hard, play hard mentality Worlds Most Admired Company

Source: CNN: Money; ICMRIndia; Apple Insider

Situational Analysis
Internal Factors

Operations

Organizational Structure
Non-traditional - Team and department divisions - Very informal and non-hierarchical Jobs still very much in control

Source: The Wall Street Journal; ICMRIndia; Apple Insider

Operations
Corporate headquarters in Cupertino, CA Most manufacturing in China Supplier code of conduct More than 200 stores worldwide

Source: Apple

Operations

Source: Apple

Sales Breakdown
2009 Sales

Source: Apple

Sales Breakdown
2009 Sales by Operating Segment

Source: Apple

Situational Analysis
Internal Factors

Marketing

Marketing
Four Ps 1. Product 2. Price 3. Place 4. Promotion

Marketing - Product
Apple Incs product strategy is: Supply superior ease-to-use Seamless integration Innovative industrial design

Source: Apple

Marketing - Product
Two main types of products: Hardware oPersonal computers oPortable devices Software oiTunes oFinal Cut Pro oLogic Studio

Source: Apple

Marketing - Price
Value based pricing model Variable pricing for iTunes Fixed pricing over all We dont know how to make a $500 computer thats not a piece of junk - Steve Jobs
Source: Apple

Marketing - Place
Distribution: Sales Force Third party wholesale

Source: Apple

Marketing - Place
Distribution Channels: Resellers Large distribution On line stores No Franchises

Source: Apple

Marketing - Promotion
Promotional techniques Test drive a Mac 1983 iPod as contemporary art Celebrity involvement

Source: Apple

Situational Analysis
Internal Factors

Financial Analysis

Financial News
April 20, 2010: Apple announced fiscal 2010 Q2 results: - Revenue of $13.5 billion - Quarterly profits of $3.07 billion Stock price $252.36/share Holds over $40 billion of cash reserves

Source: World of Apple; BusinessWeek; Hoovers

Short-Term Solvency Ratio

Current Ratio =
Source: Hoovers

Short-Term Solvency Ratio

Quick Ratio =
Source: Hoovers

Current Assets Inventories Current Liabilities

Long-Term Solvency Ratio

Debt to Equity Ratio = Shareholders Equity

Source: Hoovers

Total Liabilities

Efficiency Ratio

Receivables Turnover =
Source: Hoovers

Net Credit Sales Avg. Accounts Receivable

Profitability vs. Revenue

Source: Hoovers; Argus Research Company

Financial Summary
Strong Ratios Positive predictions for financial growth Profit margins leveling out

Situational Analysis
Internal Factors

Human Resource Management

Human Resource Management

1. Recruiting 2. Hiring 3. Training 4. Retaining

HRM Recruiting
Online Universities Internships Apple Store Leader Program

Source: Apple

HRM Hiring
Online application Interview Process Equal Employment Opportunity Affirmative Action

Source: Apple

HRM Training
New Technology Career Advancement
Customers arent the only ones who get to discover new things at the Apple Retail Store. Every location provides regular training, which counts as work time, to keep you up to date on the latest Apple and thirdparty products. You can also get training to help you move ahead as a Genius, Creative, or Manager or to transition to one of those tracks from your current position. - Apple

Source: Apple

HRM Retaining
Fun, innovative work environment Possibility for career advancement Great Benefits oHealth and Life Insurance

Source: Apple

HRM Retaining
Tuition Assistance
Product Discounts Commuter Programs

Source: Apple

Working at Apple is a whole different thing. Because whatever you do here, you play a part in creating some of the best-loved technology on the planet. And in helping people discover all the amazing things they can do with it. You could call it work, or you could call it a mission. We call it a blast. - Apple

Situational Analysis
External Factors

Competition | Technology | Customers Macro-economic Factors

Situational Analysis
External Factors

Competition

Direct Competition
A product or brand that competes in the same industry or product category Hewlett Packard Dell IBM

Source: Hewlett-Packard; Dell; IBM

Direct Competition
Microsoft The employee empowerment At Microsoft, we believe that diversity enriches our performance and products anddifferences become increasingly important.

Source: Microsoft

Indirect Competition
Product that provides an alternative activity that one might choose over using Apple Video Games Television Digital Video Disc (DVD)

Situational Analysis
External Factors

Technology

Technology
Industry Trends Tablet PC Internet capabilities Battery life Compatibility

Situational Analysis
External Factors

Customers

Customers
Volatile Lack of perceived differentiation FUD (Fear, Uncertainty, and Doubt) Discrepancy with early & late adopters

Situational Analysis
External Factors

Macroeconomic Factors

Macroeconomic Factors
Moores Law Current economic climate Natural disasters

Source: Intel; Businessweek

SWOT Analysis

Strengths
Strong cash base Intellectual capital Technology leader Brand image Charismatic leadership iTunes Store

Weaknesses
Lower profit margins Dividends rarely paid Lack of succession planning Presence in business arena Underdeveloped customer relationships

Opportunities
Digital business strategies Customized user experience Strengthen brand Expand strategic alliance Global expansion

Threats
Technology Volatile customers Competition Google

Sources of Competitive Advantage

Sustainable Competitive Advantage

Advantage the corporation has over their competition that is unique and valuable and not easily duplicated.

Sustainable Competitive Advantage

Digital business strategy Strategic alliance Intellectual Capital

Leadership Recommendations

Viable Alternatives | Minor Recommendation Major Recommendation | Future Study Spiritual Implications

Leadership Recommendations

Viable Alternatives

Viable Alternatives
Customer reward program Innovation focus Sales promotion / discounts

Leadership Recommendations

Minor Recommendations

Minor Recommendations
Global expansion Open more stores Succession planning Operational efficiency

Leadership Recommendations

Major Recommendations

Recommendation
iApple -Creates database for customers -Personal homepage on apple.com

Recommendation
iApple Tracks purchases oiTunes oApp store oApple store oAuthorized re-sellers Product recommendations

Recommendation
iApple

- Social networking
oInteract with other customers oCustomer service portal iPhone / iPod / iPad App

Recommendation

Recommendation
iPhone Initiative Open phones to every carrier oApple experience for all Connected to iApple - Every user now in database oCustomer profile

Recommendation
iPhone Initiative Growing knowledge of each customer oIncreased customer share - Paying for apps/music - Automatic sync with only Mac - Offer iPhone for free oLifetime value

Recommendation
AppleU Rebranding of one-to-one program Product training with Mac Specialist Utilize intellectual capital Educate customers about any Apple product Increased customer share

Leadership Recommendations

Future Study

Future Study
Pursuing stronger strategic alliances with software companies Taking Apple into the business world Greater shareholder focus Social media integration

Leadership Recommendations

Spiritual Implications

Spiritual Implications
1. Socially Ethical Practices 2. Diversity and Equal Employment 3. Environmentally Conscience

Spiritual Implications
Socially ethical practices Titus 2:7-8 oShow yourself in all respects to be a model of good works, and in your teaching show integrity, dignity, and sound speech that cannot be condemned, so that an opponent may be put to shame, having nothing evil to say about

Spiritual Implications
Diversity & Equal Employment Acts 10:34 oSo Peter opened his mouth and said: truly I understand that God shows no partiality (ESV)

Spiritual Implications
Environmentally Conscience Psalm 115:15-16 oMay you be blessed by the Lord, who made heaven and earth! The heavens are the Lords heavens, but the earth he has given to the children of man (ESV)

Final Questions

Would we work for this company? Would we invest in this company?

Works Cited
"Apple Inc.'s Corporate Culture: The Good, The Bad and The Ugly - HROB Case Studies | Case Study." Case Studies | Case Study in Business, Management, Operations, Strategy Case Studies. N.p., n.d. Web. 14 May 2010. <http://www.icmrindia.org/Casestudies/catalogue/Human%20Resource%20and%20Organization %20Behavior/HROB124.htm>. Arends, Brett. "7 Reasons Apple Shareholders Should be Cautious." Yahoo! Finance - Business Finance, Stock Market, Quotes, News. The Wall Street Journal, n.d. Web. 25 Apr. 2010. <http://finance.yahoo.com/family-home/article/109376/7-reasonsapple-shareholders-should-be-cautious?sec=topStories&pos=7&asset=&ccode=>. Jade, Kasper, and Katie Marsal. "AppleInsider | Employees offer mixed reactions to Apple corporate life." AppleInsider | Apple Insider News and Analysis. N.p., n.d. Web. 15 May 2010. <http://www.appleinsider.com/articles/05/03/30/employees_offer_mixed_reactions_to_apple_corporate_life.html>. "World's Most Admired Companies 2010: Apple snapshot - FORTUNE on CNNMoney.com." Business, financial, personal finance news - CNNMoney.com. N.p., n.d. Web. 14 May 2010. <http://money.cnn.com/magazines/fortune/mostadmired/2010/snapshots/670.html>. Apple. Web. 10 Mar. 2010. <http://www.apple.com/jobs/us/benefits.html>. "Retail Store Hiring." Ifo Apple Store. Web. 10 May 2010. <http://www.ifoapplestore.com/stores/hiring.html>. SEC Filings., secfilings.com/myalers.aspx?welcome=true> Hoovers., www.hoovers.com/company/apple.inc/rtjcci.html> Argus Research., www.argusresearchcompany.com/appleinc Business week., www.businessweek.com

Question Answer