Running head: STRATEGIC CHOICE AND EVALUATION 1
STRATEGIC CHOICE AND EVALUATION 6
Strategic Choice and Evaluation
Instructor Name
STR 581
May 26, 2014
Student Name
Strategic Choice and Evaluation
Finding and gathering organization possibilities is an activity for companies especially for firms like Apple Inc. In order to establish business strategic planning, managers are supposed to analyze cases that present organizations competitive benefits which distinguishes them from their rivals in the market. Apple is a huge firm which promotes creativity and brand value. Apple strictly focuses on ways to establish themselves as next generation technology leaders. We have many new and same products upcoming into the market which creates challenge for Apple to emphasize their vision. But still Apple succeeds growing in this inflated market and ensures that the growth rate is carried at a descent pace that doesn’t create problems for their brand identity or to their potential revenue growth. This paper examines the strategic planning’s and measures that Apple should consider to ensure continuous growth.
Generic Strategy
Apple stands in the world market for its creativity and innovation. The company successfully establishes market leadership by practicing generic strategy. Apple implemented the generic strategy for three places that comprises Low-cost leadership, Differentiation, and Focus. Concentrating on Low-cost Leadership, Apple has the advantage of controlling its huge and accepted supply chain to output the products at an affordable price. The prices for Apple products are at a high rate for increase in demands. So producing mass products like Phone and iPod, the firm establishes effective contract with the suppliers. This helps the company to provide a great quality product compared to the rivals. The iPod is the first key implementation by Apple that captured market shares from Sony which is known for its walkman. It experienced an evolution which came into action by the digital technology that segregated the iPod from various other goods in the market. Finally providing focus to enhanced planning, Apple was able concentrated on its products and introduced the iPod that targeted a huge number of people. In spite of the product being costly, the reduced size and the capability to accompany more songs established a belief amongst youth and the rest of the population. (John Kirk, 2013).
Value Discipline
One of the greatest concentrations of Apple is to ensure that their customers purchase value and the company utilizes it for promoting success. Apple was aware of the fact that few customers experienced value along with cost, services and goods. By this practice Apple links with Value Discipline as the top overall cost provider. The company succeeded in giving customers products with reduced cost and increase sales. Management was considered the key members to practice the Value Discipline and helping their customers and enhancing.
Running head STRATEGIC CHOICE AND EVALUATION 1STRATEGIC CHOI.docx
1. Running head: STRATEGIC CHOICE AND EVALUATION 1
STRATEGIC CHOICE AND EVALUATION 6
Strategic Choice and Evaluation
Instructor Name
STR 581
May 26, 2014
Student Name
Strategic Choice and Evaluation
Finding and gathering organization possibilities is an activity
for companies especially for firms like Apple Inc. In order to
establish business strategic planning, managers are supposed to
analyze cases that present organizations competitive benefits
which distinguishes them from their rivals in the market. Apple
is a huge firm which promotes creativity and brand value. Apple
strictly focuses on ways to establish themselves as next
generation technology leaders. We have many new and same
products upcoming into the market which creates challenge for
Apple to emphasize their vision. But still Apple succeeds
growing in this inflated market and ensures that the growth rate
is carried at a descent pace that doesn’t create problems for
2. their brand identity or to their potential revenue growth. This
paper examines the strategic planning’s and measures that
Apple should consider to ensure continuous growth.
Generic Strategy
Apple stands in the world market for its creativity and
innovation. The company successfully establishes market
leadership by practicing generic strategy. Apple implemented
the generic strategy for three places that comprises Low-cost
leadership, Differentiation, and Focus. Concentrating on Low-
cost Leadership, Apple has the advantage of controlling its huge
and accepted supply chain to output the products at an
affordable price. The prices for Apple products are at a high
rate for increase in demands. So producing mass products like
Phone and iPod, the firm establishes effective contract with the
suppliers. This helps the company to provide a great quality
product compared to the rivals. The iPod is the first key
implementation by Apple that captured market shares from Sony
which is known for its walkman. It experienced an evolution
which came into action by the digital technology that segregated
the iPod from various other goods in the market. Finally
providing focus to enhanced planning, Apple was able
concentrated on its products and introduced the iPod that
targeted a huge number of people. In spite of the product being
costly, the reduced size and the capability to accompany more
songs established a belief amongst youth and the rest of the
population. (John Kirk, 2013).
Value Discipline
One of the greatest concentrations of Apple is to ensure that
their customers purchase value and the company utilizes it for
promoting success. Apple was aware of the fact that few
customers experienced value along with cost, services and
goods. By this practice Apple links with Value Discipline as the
top overall cost provider. The company succeeded in giving
customers products with reduced cost and increase sales.
Management was considered the key members to practice the
Value Discipline and helping their customers and enhancing
3. market shares. Customers also experienced “Value Discipline”
as the best technology for products. The customers preferred
recent and optimum technology on the market. They didn’t
worry about the cost but concentrated on the company coming
up with new technologies. On the other hand some consumers
focused on products that can satisfy needs, customer service and
no contacts.
Grand Strategy
The grand strategy of Apple Inc. proposes key direction
strategies for major activities aimed towards attaining long term
business goals (Sam Grobart, 2013). The optimum grand
strategy for Apple Inc. to execute is related to product
development and innovation.
Product development thus links with comprehensive alteration
in the available products that can be sold to present customers
(Pearce, 2014). Apple Inc. has entrenched loyal customers with
respect to their quality of product and brand names. It is a
believed to be the best in product development. The final goal
of this strategy helps expand the business and extend the
products life cycle.
Attaining the long term business goals for Apple Inc. basically
concentrates on developing simple to use quality products meant
for customers. Apple designs products that adjunct each other
well, enhancing product sales. It becomes convenient for the
customers to experience quality products with less nuisance and
annoyance. (Sam Grobart, 2013).
The grand strategy is therefore is the one which embeds itself to
the final marketing strategy. Apple Inc. wishes to deliver their
products in their own store. Apple makes the processes very
clear and believes that key idea of selling products in the store
is a great strategy and the company is also able to track the
distribution and selling process (CRM Editors, 2014).
Recommendation
Apple, under the headship of Steve Jobs, has achieved success
from continuous and systematic improvement in visionary
products that reached great heights. The creativity proposed by
4. Apple has helped the company come out of overshadows of
Microsoft through establishing itself as the leading industries.
Strategies like “thinking-out-of-the-box” has made customer
choose Apple products and promoted their smooth network from
one Apple product to another Apple product and its service. The
recommendation meant for Apple links following the present
business model of customer enhancement. As more companies
with similar products come into the market it becomes more
difficult for Apple to resist. Thus following a strategy of high-
priced, low-volume product at the top with mounted lower
levels of other products will provide tough competition to its
rivals while entering the market. This will certainly help Apple
continue its development process and produce products that are
great examples of allure and clannishness. Apple has various
choices to start its new theme of pyramid profit model. Apple
has thus succeeded in developing strong customer base and
continuous to satisfy its consumers at the optimum levels.
Conclusion
Altering strategies and linking them to the environmental trends
is important to guide a business to go through its activities and
turn successful. After correct identification of strategies
organizations get in a position to change the process. Thus
strategic modifications become important for firms like Apple
Inc. who have served the world for years. Apple Inc. wishes to
expand its customer base and promote customer satisfaction by
executing new online features and activities linked with
frequent creativity in present programs. People working inside
Apple have dedicated themselves to produce the world’s best
quality goods and the company also provides with the best
environmental and working places to live, learn and nurture.
The company not only focuses on its business strategies and
goals, ensures overall progress of the organization to maintain
high levels of sustainability and balance. Therefore Apple Inc.
should target customers as their foremost choice and build
technology through great skill, creativity and innovation to
promote maximum customer satisfaction.
5. References
1. Pearce, J. A., II, Robinson, R. B. (2014). Strategic
management: Formulation, implementation, and control (12th
ed.). Boston, MA: McGraw-Hill/Irwin.
2. CRM Editors. (2014). Retrieved from
http://www.insidecrm.com/features/strategies-apple-loyal-
customers/
3. Travlos, Darcy, (2012). "Apple: Product Commoditization?"
Forbes. Forbes Magazine. Retrieved from
http://www.forbes.com/sites/darcytravlos/2012/05/15/apple-
product-commoditization/
4. Sam Grobart, (2013).Apple Chiefs Discuss Strategy, Market
Share—and the New iPhones. Retrieved from:
http://www.businessweek.com/articles/2013-09-19/cook-ive-
and-federighi-on-the-new-iphone-and-apples-once-and-future-
strategy
5. John Kirk, (2013). Apple's Grand Strategy. Retrieved
from:http://www.realcleartechnology.com/2013/10/27/apple039s
_grand_strategy_16728.html
Precis assignment, writer one paragraph each.
6. 1- Arnold, "Dover Beach"
http://www.poets.org/poetsorg/poem/dover-beach
2- Mole, "Selling Geraniums"
See the attached files
3- Browning, "My Last Duchess"
http://www.poets.org/poetsorg/poem/my-last-duchess
4- Shelley, "With Guitar, to Jane"
See the attached files
Running Head: APPLE STRATEGIC PLAN
APPLE STRATEGIC PLAN
10
Apple Strategic Plan Draft; Implementation, Strategic Controls,
and Contingency Plans
STR 581
June 01, 2014
Apple Strategic Plan; Implementation, Strategic Controls, and
Contingency Plans
Introduction
Apple, Inc.is an electronics company that has over the years
provided consumers with high quality products in the
electronics industry. This has enabled the company to continue
to thrive in the highly competitive industry with implementation
7. of well-planned strategic plans. The company has set very high
standards that enable it to maintain profitability in the already
high commoditized market. In a wider perspective, the actual
manufacturing of the products outsourced from trusted suppliers
makes the company to be able to satisfy its consumers with high
quality products.
In order to continually make an impact in its market and satisfy
the market while making a wider presence in other markets that
Apple is yet to set up operations, the company need to
continually review its strategies and identify loopholes that
needs to be fixed. In this context, the management of the
company requires to prepare strategic plans to enable it to
succeed in its plans. In this analysis, the strategic plan of the
company that will enable it to increase its market size and deal
with the many challenges of competition and price wars in the
industry is of focus. This includes analysis of the
implementation plans the company sets and the controls that
will enable the strategic plans implementation a success.
Contingency plans will entail definition of the steps the
management of the company will take to deal with the likely
risks in the implementation process and in the market as a
whole.
Implementation Plan
Apple aims to implement its strategic plans that will help it to
continually increase the market size for its products while still
creating more innovative products. In order to achieve this, the
management has strategies on continuous implementation of key
action items within set deadlines. Te main aim for this is to
attain more relevance in the electronics industry. The
implementation process will entail communication with
stakeholders in the company to be able to continually get ideas
on the progress of the strategic plan implementation process.
Communication is vital as it gives information on the specific
target areas and the requirements from every stakeholder
namely, the employees of the company, electronics engineers
8. mandated with the task of innovations and development of the
products, the suppliers to make sure that all the materials are
available and of high quality, and the management of the
organization who gives direction and guideline. This will enable
the company to achieve its goals and carry out its mission in the
industry (Koontz, 2010).
Objectives
Various objectives are laid out in the strategic plan for the
achievement of the company’s plan. The company aims to
increase its market size through creation of high quality
products that are of high technological value and up-to-date
with the trends in the electronics industry. Secondly, the
company has the objective of setting up a research and
development center where the technocrats of the company will
be able to continually carry out their research on the electronics
that will be released in the market. The company will also carry
out strategic marketing plan with an aim of increasing its
market by proper pricing models to be able to cope with the
high competition in the market. In addition, there is need to
increase its corporate social responsibility both in its present
and prospective markets in order to increase the loyalty of its
products (Weihrich & Koontz, 2013).
Functional Tactics
The company will employ various functional tactics to enable it
achieve its aims. Firstly, the company will invest heavily in
research and development department of its company. In
addition to this, identification of the social responsibility areas
is vital in the implementation of its strategic plan. This will
involve continuous and sequential educational programs for
highly qualified individuals in new market who will be
mentored to lead the local company operations and education of
the public on the company’s products use in the improvement of
their businesses and other uses. In this sense, the company will
increase the applications in the company’s mobile phones,
9. tablets, and other gadgets (Koontz, 2010).
Action Items
The action items for the success of the strategies’
implementation will enable the management to assess and
monitor the progress towards the main end. Increase in research
and development in the company is essential and thus, the
company aims to employ qualified staff that are recruited
through a vigorous process. The company will attain the
corporate social responsibility objectives through involvement
in social activities in the societies that they have stores. This
will be affirmed through sponsorships to education for children
with interest and capability in the electronics sector. Pricing of
the products will be competitive in order to cope with the high
competition in the market. The company will also operate
several agencies for the company’s gadgets that will enable the
company to increase consumer support. In addition, the
company aims to review the warranty rules for its products such
that most of its products will attract several consumers. This is
a game changer for the competition (Weihrich & Koontz, 2013).
Milestones and Deadline
Implementation of the strategic plan will be carried out in three
consecutive years with frequent changes to enable incorporation
of other external changes in the market. The company will carry
out new marketing plans for new markets with support from
systematic social responsibility bearings. In this sense, every
new market will have well managed continuous activities in the
society that the company sets up operations. The company will
set up the research and development center in the first year of
operations and increase its funding in consecutive years up to
five years. In this sense, the company will be able to create
more innovative products and introduce them in both the new
and existing market (Weihrich & Koontz, 2013).
Key Success Factors & Financials
10. Knowing the accessibility of financial resources is vital with
respect to strategic implementation. Key factors for success
comprises of the Apple engineers, creating products meant for
them, consumer friendly goods and services, efficient customer
service, and reality that Apple leads the competition with its
consistent innovative ideas. Within the Key Factors for success,
the software industry involves professionals of computer and
information technology, abilities for producing innovative
products, low cost of production, design and engineering, and
vast connectivity of retailers. As the other companies in the
software industry, Apple is advantageous in a variant way and
must be at the above mentioned level. Appendix A displays
Risk Management Plan
Risk is induced in all business activities. ”Risk Management is
the method in whose duration, the risks are identified by the
organization and is prioritized and consequently opts for
measures to lower the harmful event’s probability and increases
opportunities,” (Pearce & Robinson, 2014). Thus, risk
management is not a one-time method but this process aims in
executing consistent advancement to the organization as the
changes in the marketplace would be mitigating negative effect.
Risk Identification & Assessment
Apple Inc.’s planning strategies is conceptualized to ensure the
company to earn market share for retailers offering new ideas,
consumer-friendly relationships. There would be no limitations
in innovation in renovating the storefront areas and deals with
the products and its location availability to the customers and
ordering all products via internet. Enhancing the use of a
technologically-improved user-friendly system for ordering the
products allows the customers with higher flexibility related to
the company, but in the meantime, the brand loyalty is kept
within the industry. The risks associated with electronic
11. commerce are given below:
1. Phishing attacks – information break-through the loss of
intellectual property which loses data’s of the customers.
2. Personal use of confidential information by employees –
employees have approach towards self information like credit
card numbers, addresses and some other key components that
ensures the identification of occurrence of theft.
Risk Mitigation & Contingency Plan
The risk mitigation and contingency plan of Apple Inc. is
confronting the probability of risks in order to foil the problems
before they are occurring. The measures for prevention that
should be taken for ensuring user security and satisfaction are:
• SSL Security: SSL, or Secure Socket Layer, is an encrypted
process used for encrypting sensitive data’s of the customers for
protecting it from the hacker’s interception. The website having
SSL protection ensures the customers with the company’s
responsibility towards their safety and security that is equally
important as their business.
• Limited Access to Customer Information: Availability of
information to employees would be on the basis of need for
knowing. As an example, if a Purchasing or Finance employee
approaches to the full credit card number for processing
payment then that employee would be allowed for accessing this
information level. On the contrary, a Receptionist does not
require this information to be necessarily available for
completing their job.
Implementing these measures allows the company in averting
drastic actions which can harm its reputation. Moreover, for the
submission of orders, series of disclosures would line up
providing customers with the policies of the company
corresponding to online transactions and processes for
competitive charges or other problems related to customer
12. service. If the customer is victimized after dealing with Apple
Inc. on website, then the company will be fully supportive with
the extension of law in recouping damages to the customers and
prosecuting assailants. This ensures the company in salvaging
any damage to its brand before increasing the outcomes in the
customer’s loss.
Tasks and task ownership
The company will be in control of all the operations of the
strategies. In this perspective, the company will look for new
funds sources and invest them in the new markets and
operations. Thus, the company will take liability and benefits
that will come with the new strategies’ implementation. The
research and development center will be mandated to the
research and development department of the company. In
addition all other departments of the company will help in the
implementation of all the strategies of the company through
provision of support and management support of the strategies
(Weihrich & Koontz, 2013).
Resource Allocation
Apple, Inc. is committed to continuous development of its
products and to increase its market size through strategic
investment in both the research and marketing. In this context,
the company has set aside enough reserves for any strategic
plans implementation. However, the company will invest more
heavily in research and development of its products as there is a
significant competitive advantage connected to new products
and high quality products (Weihrich & Koontz, 2013).
Organizational Change Management Strategies
13. The company is likely to experience various changes in its
organization in various departments as a result of the likely
impact that implementation of the company strategies will have
on the overall performance. The company will record a decline
in cash profits from its new markets and thus the management
should be prepared to manage the changes both in the human
resources and management of the available finances. This
requires tight management of all the sectors of the organization
with critical focus of increasing the success of the strategies of
the company.
Key Success Factors
Success of the strategic plan of Apple, Inc.lies on the
management’s capability to budget and plan well on its
financials. Budget estimates for the strategic plan of the
company will rely on an investment of $3000000 that the
company has set aside for the implementation of the plans. Most
of these funds will be allocated to research department while
only $1000000 will be invested in marketing in new markets.
The rationale of this low investment is because most of the new
stores that the company will open in new markets will be
through partnerships with interested dealers. The company will
be interested in increasing sales in new regions through
corporate social responsibility activities and promotional
strategies (Koontz, 2010).
Risk Management Plan
Risk management is a vital ingredient to the success of
achievement of any strategy that a company has. The process
involves identification, assessment, and development of
strategies to manage the risks. The implementation process of
the company’s will encounter various risks such as regulation
risks by authorities, competition from other companies, political
risks in other regions among others. The company will
14. implement risk management by continuous assessment of
critical areas of management issues (Koontz, 2010).
Conclusion
Apple Inc.’s commitment to improve its products will get a
great boost after implementation of the strategic plan. The
company will benefit from new markets’ marketing and
increased presence in the societies where its consumers and
prospective consumers thrive. In this sense, the company’s
allocation of enough funds for the implementation process and
the strategic planning process will contribute a lot to the
success of the company’s vision, achievement of its goals and
objectives, and long-term sustainability of its business.
References
Koontz, H. (2010). Essentials Of Management 8E. Tata
McGraw-Hill Education.
Weihrich, H., & Koontz, H. (2013). Management: A Global,
Innovative, and Entrepreneurial Perspective. Tata McGraw-Hill
Education.