Internal environment of APPLE company Essay Example

  • Category:
    Management
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    3
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    1720

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Internal Environment of Apple Company

Executive Summary

Apple Inc. is a technological company offering various products to their customers across the world. Apple is an international company specializing in designing, producing and selling goods of the Computer, Mobile-phone and Music Industries. The company faces stiff competition from other rivals that are providing the same products like Apple Company. However, the company manages to maintain its market share through competition strategies such as differentiating its product by its brand perception and identification. Over the years, Apple has been to become a cult-brand, iMac lines, Quick Time and iTunes. The short term goals of Apple Inc is to increase sales of its latest product launch in the market while its long term goals is to lead the market by becoming the number one leader.

Table of Contents

Executive Summary 1

Introduction 2

Internal Audit 2

Internal Audit of Apple Inc 2

I. Internal Environment 2

1.1. Value 3

1.2. Rarity 4

Internal Factors Evaluation Matrix 5

The SWOT matrix 5

I. SWOT Matrix for APPLE Inc 6

1.1. S-O Strategies 6

1.2. S-T Strategies 6

1.3. W-O Strategies 6

The Quantitative Strategic Planning Matrix (QSPM) 6

Human Resource Management of APPLE Inc 7

Conclusion 8

Recommendation 8

Strategy 1 8

Strategy 2 9

Strategy 3 9

References 10

Introduction

Apple Inc. is among the leading computer product companies in the world. The company was started in 1976 through a collaboration effort by Steve Jobs and Steve Wozniak. The two partners launched this company in the market with the aim of reaching the diverse global community. Furthermore, the company is aiming at creating value and competition so that it can facilitate the attainment of high profit maximization levels.

Apple Inc has managed to retain its top position in the computer market because of its favorable internal competitive environment. The company has related well with customers, and this has won the company many loyal customers. The performance of an organization in the market is high due to the company’s strong brand image that it portrays to the customers. According to Cole, 2013, the company has a tendency of focusing on research and development, hence creating an avenue where products are brought into the market.

Internal Audit

According toGallo, all theorganizations in the world have opportunities and challenges in the functional areas of business. There is no company that is either weak or strong in all areas.

Internal Audit of Apple Inc

  1. Internal Environment

VRIO Framework

The VRIO framework stands for value, rarity, imitability, and the organization as a whole. VRIO framework is an essential tool for assessing internal business environment of Apple Inc Company.

internal environment of APPLE company

The table shown above reflects the VRIO of Apple Company. It is essential for the Apple Inc to explore external and internal opportunities so that it can increase its competitive advantage over its competitors. The company utilized all of its internal advantages in developing iPhones, its brand name, implementing the latest technology and effortlessness in using the user interface.

    1. Value

Customers gained a lot when they purchase an iPhone. Some of the advantages of iPhone are that the device uses high technology, the fast and easy usage and that the customer is able to carry, all in one devise when customers purchase it.

    1. Rarity

The technology that was used in making iPhone is a superior one, this is why the phone has a unique and rare features, and this is the reason why the iPhone has a unique design, easy to use, high quality and of course for the status symbol among the youngsters.

However, the handset has been experiencing problems such as slow internet connection, and the call dropping problems. The result of these issues has not been good for the company. The company has lost some of the customers who got disappointed in one way or another. Meanwhile, the status and of course the publicity of owning iPhone has been a great advantage to the company and this has kept the customers intact (Hitt et al, 2012, p 139)

    1. Imitability

The technology that was used in manufacturing iPhone is unique making it nearly not imitable. However, there are other companies such as Samsung that are providing smart phones with same features as that of the iPhone. Also, some of the companies such as Google have designed their own phones such as T-mobile; the Samsung Company has design smart phones. All these can be a threat to the company because of the competition.

    1. Organization

Apple Company has been focusing on maintaining its brand name and it has succeeded in that. This has given the company the biggest competitive advantage in the market.

The Apple Company holds a huge and stable market, however, the company needs to keep updating it product features so that it can remain to be relevant in the market. Competition is high in the technological market and it requires constant innovation to maintain market leadership.

Internal Factors Evaluation Matrix

In order to conduct an internal audit effectively, it requires the construction of an Internal Factor Evaluation (IFE) Matrix (Ghezzi et al, 2014, p 104). This management tool is essential because it facilitates evaluations of key strengths and weaknesses in the active areas of the business. Furthermore, the tool helps in identifying and evaluating the relationship between those areas.

IFE for APPLE

internal environment of APPLE company 1

The SWOT matrix

This is an acronym for strength, weaknesses, opportunities, and threats. SWOT matrix is an essential tool in every organization because managers utilized it in developing four types of strategies: Strengths – Opportunities (OS) strategies, Weaknesses – Opportunities (WO) Strategies, Strengths – Threats (ST) Strategies, and Weaknesses – Threats (WT) Strategies

  1. SWOT Matrix for APPLE Inc

    1. S-O Strategies

  • This strategy is very vital because it increases awareness through the web of immunity of Mac products to various issues such as virus and worms

  • The company promotes its products through individuals who are likely to link Generation X and Y to the iPad, iTunes, and other related products

  • Utilization of current music and movies that are likely to attract Gen Y and X so as to promote company’s products such as laptops and computers

    1. S-T Strategies

  • To facilitate to compatibility of using windows operating system

  • Promote the originality and reliability of Apple products and the stable systems of computers provided by the company

    1. W-O Strategies

  • Develop a long lasting ties with Microsoft and Intel and their products as a way of improving reliability, and so that companies will see them as compatible

  • To improve the quality of their products and services. This is essential because it can make the company compete effectively with other top rivals such as Dell and HP.

The Quantitative Strategic Planning Matrix (QSPM)

The quantitative strategic planning matrix (QSPM) is an essential tool that can be used to evaluate various alternatives that are available for the company. Many scientific managers propose this technique because it indicates the best alternative to be adopted (Lüsted et al, 2014).

internal environment of APPLE company 2

Human Resource Management of APPLE Inc

Apple Inc has had strategies laid by the human resource manager with the aim of placing greater emphasis on ground-breaking new products and designs. The strategies used are the one that are compatible with the changing market through constant redefining the design and purpose of the digital technology (Harris and Kevin. 2014, p78).

The company is constantly training its employees so that they can be able to deliver quality services, the changing technologies require competent employees who are able to handle customers, complaints, queries and recommendations. The company has a competitive human resource department. The department has been recruiting qualified and competent employees who are able to deliver companies objectives and goals (Abraham, 2014, p 46)

The corporate culture of the Apple Computers has been company’s internal strength because it is one of optimism and belief. The founder and the CEO have been focusing on innovation and investment in new arrivals despite of the challenging climatic economic challenges. This persistent behavior of the company’s management has made the company achieve a lot in the competitive environment.

Conclusion

In conclusion, the internal environment of the company matters a lot, especially in the technological industries. This is because the technological industries are never easy to compete with. Apple Inc has a lot to invest in R&D and to employ proactive strategies so that they can maintain its leadership position in the market. Furthermore, R&D is essential because it enables the company to sell new products in the market.

Recommendation

Strategy 1

The company needs to open computer retail stores instead of focusing on the peripheral and accessories. Most of the Apple stores offer peripherals and accessories for their computers. It is, therefore, essential for an organization to expand their line of business by adding the hardware so as to generate more hands-on and use already established locations. This step is likely to improve the internal environment of the company.

Strategy 2

The company’s management needs to contract music spokesperson to attract the younger generations who are attending colleges and high school. This is a vital step for connecting the apple with a distinctive and memorable top ten hits. This strategy is essential because it stays in the customers’ awareness and can influence the complex purchasing decision of the customers. Normally, the music spokesperson can be contracted at an estimate of $6 million.

Strategy 3

The company can add more features on their products for greater Wintel compatibility. The software used by the Apple Company should be compatible with windows and another device such as Office programs that are loaded on the computer installation disk. This will require the company to arrange for the software agreement with the Microsoft.

References

Abraham, Manish. «Five Leadership skills that made Steve Jobs transform Apple.» (2014).

Cole, Alex. The Apple Organization: Unethical Behaviors. GRIN Verlag, 2013.

Gallo, Carmine. The Apple experience: Secrets to building insanely great customer loyalty. McGraw Hill Professional, 2012.

Ghezzi, Antonio, Raffaello Balocco, and Andrea Rangone. «The relationship between Open Innovation and Strategy: data-driven analysis of the Mobile Value Services Industry.» System Sciences (HICSS), 2014 47th Hawaii International Conference on. IEEE, 2014.

Harris, Lie Kevin. «Apple Computer Pricing Strategy: Key Success Factors and Profit Margin.» (2014).

Hitt, Michael, R. Duane Ireland, and Robert Hoskisson. Strategic management cases: competitiveness and globalization. Cengage Learning, 2012.

Lüsted, Marcia Amidon. Apple: Company and Its Visionary Founder, Steve Jobs. ABDO, 2012.