2.
Mission Statement Source: Apple “ 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.”

3.
<ul><li>Frontrunner in the PC revolution </li></ul><ul><li>Transformed PC industry with 1 st Mac </li></ul><ul><li>Expansion in consumer technology </li></ul><ul><li>Continued innovation in tech industry </li></ul>Apple Inc.

4.
<ul><li>1976 : Steve Jobs and Steve Wozniak founded Apple Computer, Inc. </li></ul><ul><li>1980 : Apple converts to public ownership. </li></ul><ul><li>1982 : Apple becomes first personal computer company to reach $1 billion in annual sales. </li></ul>Source: Apple Key Dates

5.
<ul><li>1985 : John Sculley assumes CEO role </li></ul><ul><li>1997 : Steve Jobs is named interim CEO </li></ul><ul><li>1998 : The all-in-one iMac is released </li></ul><ul><li>2000 : Jobs as CEO, more tightly focused Apple, Inc. </li></ul>Source: Apple Key Dates

6.
Today <ul><li>Apple has 36,800 employees as of 2009 </li></ul><ul><li>Net profit increased from 14.6% in 2007 to 15.6% in 2009 </li></ul><ul><li>EPS doubled since 2007 to $6.29 </li></ul><ul><li>Positive future financial expectations </li></ul>

7.
Apple Stock – 1 Year

8.
Opportunity Statement <ul><li>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. </li></ul>

9.
Significance to Leadership <ul><li>Discovery of untapped resources </li></ul><ul><ul><li>More dedicated and loyal customer base </li></ul></ul><ul><ul><li>Higher profit margins </li></ul></ul><ul><ul><li>New sources of Sustainable Competitive Advantage </li></ul></ul>

10.
Expected Outcomes <ul><li>Greater customer share </li></ul><ul><li>Increase in profit margins </li></ul><ul><li>Sustainable competitive advantage </li></ul>

11.
Research Methodology <ul><li>Secondary Research </li></ul><ul><li>Quality Research </li></ul><ul><ul><li>Environmental Scanning & Monitoring </li></ul></ul><ul><ul><li>Peer Reviewed Journal Articles </li></ul></ul>

12.
Situational Analysis Internal Factors Leadership | Corporate Culture Operations | Marketing | Finance | HRM

13.
Leadership Situational Analysis Internal Factors

14.
Leadership <ul><li>Steve Jobs </li></ul><ul><ul><li>Co-Founder/CEO/Director </li></ul></ul><ul><ul><ul><li>1976-1985/1996-Present </li></ul></ul></ul><ul><li>College dropout </li></ul><ul><li>Perfectionist </li></ul><ul><li>Founded company with </li></ul><ul><li>Steve Wozniak </li></ul>Source: Reuters

15.
Leadership <ul><li>Peter Oppenheimer </li></ul><ul><ul><li>CFO/Senior VP </li></ul></ul><ul><ul><ul><li>1996 - Present </li></ul></ul></ul><ul><li>Former CFO of Automatic Data Processing, Inc. (ADP) </li></ul><ul><li>IT Consulting firm </li></ul>Source: Reuters

16.
Leadership <ul><li>Timothy Cook </li></ul><ul><ul><li>COO </li></ul></ul><ul><ul><ul><li>1998 - Present </li></ul></ul></ul><ul><li>Previously VP Corporate Materials for Compaq Computer Corp. </li></ul><ul><li>COO for Intelligent Electronics </li></ul>Source: Reuters

17.
Corporate Culture Situational Analysis Internal Factors

18.
Corporate Culture <ul><li>“ Work hard, play hard” mentality </li></ul><ul><li>World’s Most Admired Company </li></ul>Source: CNN: Money; ICMRIndia; Apple Insider

19.
Operations Situational Analysis Internal Factors

20.
Organizational Structure <ul><li>Non-traditional </li></ul><ul><ul><li>Team and department divisions </li></ul></ul><ul><ul><li>Very informal and non-hierarchical </li></ul></ul><ul><li>Jobs still very much in control </li></ul>Source: The Wall Street Journal; ICMRIndia; Apple Insider

21.
Operations <ul><li>Corporate headquarters in Cupertino, CA </li></ul><ul><li>Most manufacturing in China </li></ul><ul><ul><li>Supplier code of conduct </li></ul></ul>Source: Apple <ul><li>More than 200 stores </li></ul><ul><li>worldwide </li></ul>

22.
Operations Source: Apple

23.
Sales Breakdown 2009 Sales Source: Apple

24.
Sales Breakdown 2009 Sales by Operating Segment Source: Apple

25.
Marketing Situational Analysis Internal Factors

26.
Marketing <ul><li>Four P’s </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><ul><li>Promotion </li></ul></ul>

27.
Marketing - Product <ul><li>Apple Inc’s product strategy is: </li></ul><ul><ul><li>Supply superior ease-to-use </li></ul></ul><ul><ul><li>Seamless integration </li></ul></ul><ul><ul><li>Innovative industrial design </li></ul></ul>Source: Apple

28.
Marketing - Product <ul><li>Two main types of products: </li></ul><ul><ul><li>Hardware </li></ul></ul><ul><ul><ul><li>Personal computers </li></ul></ul></ul><ul><ul><ul><li>Portable devices </li></ul></ul></ul><ul><ul><li>Software </li></ul></ul><ul><ul><ul><li>iTunes </li></ul></ul></ul><ul><ul><ul><li>Final Cut Pro </li></ul></ul></ul><ul><ul><ul><li>Logic Studio </li></ul></ul></ul>Source: Apple

29.
Marketing - Price <ul><li>Value based pricing model </li></ul><ul><li>Variable pricing for iTunes </li></ul><ul><li>Fixed pricing over all </li></ul><ul><ul><ul><li>“ We don’t know how to make a $500 computer that’s not a piece of junk” </li></ul></ul></ul><ul><ul><ul><li> - Steve Jobs </li></ul></ul></ul>Source: Apple

30.
Marketing - Place <ul><li>Distribution: </li></ul><ul><ul><li>Sales Force </li></ul></ul><ul><ul><li>Third party wholesale </li></ul></ul>Source: Apple

31.
Marketing - Place <ul><li>Distribution Channels: </li></ul><ul><ul><li>Resellers </li></ul></ul><ul><ul><li>Large distribution </li></ul></ul><ul><ul><li>On line stores </li></ul></ul><ul><ul><li>No Franchises </li></ul></ul>Source: Apple

32.
Marketing - Promotion <ul><li>Promotional techniques </li></ul><ul><ul><li>“ Test drive a Mac” 1983 </li></ul></ul><ul><ul><li>iPod as contemporary art </li></ul></ul><ul><ul><li>Celebrity involvement </li></ul></ul>Source: Apple

33.
Financial Analysis Situational Analysis Internal Factors

34.
Financial News <ul><li>April 20, 2010: Apple announced fiscal 2010 Q2 results: </li></ul><ul><ul><li>Revenue of $13.5 billion </li></ul></ul><ul><ul><li>Quarterly profits of $3.07 billion </li></ul></ul><ul><li>Stock price $252.36/share </li></ul><ul><li>Holds over $40 billion of cash reserves </li></ul>Source: World of Apple; BusinessWeek; Hoovers

35.
Short-Term Solvency Ratio Current Ratio = Source: Hoovers

36.
Short-Term Solvency Ratio Quick Ratio = Source: Hoovers Current Assets - Inventories Current Liabilities

37.
Long-Term Solvency Ratio Debt to Equity Ratio = Source: Hoovers Total Liabilities Shareholders Equity

38.
Efficiency Ratio Receivables Turnover = Source: Hoovers Net Credit Sales Avg. Accounts Receivable

39.
Profitability vs. Revenue Source: Hoovers; Argus Research Company

40.
Financial Summary <ul><li>Strong Ratios </li></ul><ul><li>Positive predictions for financial growth </li></ul><ul><li>Profit margins leveling out </li></ul>

41.
Human Resource Management Situational Analysis Internal Factors

42.
Human Resource Management <ul><ul><li>Recruiting </li></ul></ul><ul><ul><li>Hiring </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Retaining </li></ul></ul>

43.
HRM Recruiting <ul><li>Online </li></ul><ul><li>Universities </li></ul><ul><li>Internships </li></ul><ul><li>Apple Store Leader Program </li></ul>Source: Apple

44.
HRM Hiring <ul><li>Online application </li></ul><ul><li>Interview Process </li></ul><ul><li>Equal Employment Opportunity </li></ul><ul><li>Affirmative Action </li></ul>Source: Apple

45.
HRM Training <ul><li>New Technology </li></ul><ul><li>Career Advancement </li></ul><ul><li>“ Customers aren’t 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 third-party 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 </li></ul>Source: Apple

46.
HRM Retaining <ul><li>Fun, innovative work environment </li></ul><ul><li>Possibility for career advancement </li></ul><ul><li>Great Benefits </li></ul><ul><ul><li>Health and Life Insurance </li></ul></ul>Source: Apple

47.
HRM Retaining <ul><li>Tuition Assistance </li></ul><ul><li>Product Discounts </li></ul><ul><li>Commuter Programs </li></ul><ul><li>“ 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 </li></ul>Source: Apple

48.
Situational Analysis External Factors Competition | Technology | Customers Macro-economic Factors

49.
Competition Situational Analysis External Factors

50.
Direct Competition <ul><li>A product or brand that competes in the same industry or product category </li></ul><ul><ul><li>Hewlett – Packard </li></ul></ul><ul><ul><li>Dell </li></ul></ul><ul><ul><li>IBM </li></ul></ul>Source: Hewlett-Packard; Dell; IBM

51.
Direct Competition <ul><li>Microsoft </li></ul><ul><ul><li>The employee empowerment </li></ul></ul><ul><ul><li>“ At Microsoft, we believe that diversity enriches our performance and products and…differences become increasingly important.” </li></ul></ul>Source: Microsoft

52.
Indirect Competition <ul><li>Product that provides an alternative activity that one might choose over using Apple </li></ul><ul><ul><li>Video Games </li></ul></ul><ul><ul><li>Television </li></ul></ul><ul><ul><li>Digital Video Disc (DVD) </li></ul></ul>

53.
Technology Situational Analysis External Factors

54.
Technology <ul><li>Industry Trends </li></ul><ul><ul><li>Tablet PC </li></ul></ul><ul><ul><li>Internet capabilities </li></ul></ul><ul><ul><li>Battery life </li></ul></ul><ul><ul><li>Compatibility </li></ul></ul>

55.
Customers Situational Analysis External Factors

56.
Customers <ul><li>Volatile </li></ul><ul><li>Lack of perceived differentiation </li></ul><ul><li>FUD (Fear, Uncertainty, and Doubt) </li></ul><ul><li>Discrepancy with early & late adopters </li></ul>

57.
Macroeconomic Factors Situational Analysis External Factors

58.
Macroeconomic Factors <ul><li>Moore’s Law </li></ul><ul><li>Current economic climate </li></ul><ul><li>Natural disasters </li></ul>Source: Intel; Businessweek

59.
SWOT Analysis

60.
Strengths <ul><li>Strong cash base </li></ul><ul><li>Intellectual capital </li></ul><ul><li>Technology leader </li></ul><ul><li>Brand image </li></ul><ul><li>Charismatic leadership </li></ul><ul><li>iTunes Store </li></ul>

61.
Weaknesses <ul><li>Lower profit margins </li></ul><ul><li>Dividends rarely paid </li></ul><ul><li>Lack of succession planning </li></ul><ul><li>Presence in business arena </li></ul><ul><li>Underdeveloped customer relationships </li></ul>

62.
Opportunities <ul><li>Digital business strategies </li></ul><ul><li>Customized user experience </li></ul><ul><li>Strengthen brand </li></ul><ul><li>Expand strategic alliance </li></ul><ul><li>Global expansion </li></ul>

63.
Threats <ul><li>Technology </li></ul><ul><li>Volatile customers </li></ul><ul><li>Competition </li></ul><ul><ul><li>Google </li></ul></ul>

64.
Sources of Competitive Advantage

65.
Sustainable Competitive Advantage <ul><li>Advantage the corporation has over their competition that is unique and valuable and not easily duplicated. </li></ul>

66.
Sustainable Competitive Advantage <ul><li>Digital business strategy </li></ul><ul><li>Strategic alliance </li></ul><ul><li>Intellectual Capital </li></ul>

67.
Leadership Recommendations Viable Alternatives | Minor Recommendation Major Recommendation | Future Study Spiritual Implications

68.
Viable Alternatives Leadership Recommendations

69.
Viable Alternatives <ul><li>Customer reward program </li></ul><ul><li>Innovation focus </li></ul><ul><li>Sales promotion / discounts </li></ul>

70.
Minor Recommendations Leadership Recommendations

71.
Minor Recommendations <ul><li>Global expansion </li></ul><ul><ul><li>Open more stores </li></ul></ul><ul><li>Succession planning </li></ul><ul><li>Operational efficiency </li></ul>

72.
Major Recommendations Leadership Recommendations

74.
Recommendation <ul><li>iApple </li></ul><ul><ul><li>Creates database </li></ul></ul><ul><ul><li>for customers </li></ul></ul><ul><ul><li>Personal </li></ul></ul><ul><ul><li>homepage on </li></ul></ul><ul><ul><li>apple.com </li></ul></ul>

76.
Recommendation <ul><li>iApple </li></ul><ul><ul><li>Tracks purchases </li></ul></ul><ul><ul><ul><li>iTunes </li></ul></ul></ul><ul><ul><ul><li>App store </li></ul></ul></ul><ul><ul><ul><li>Apple store </li></ul></ul></ul><ul><ul><ul><li>Authorized re-sellers </li></ul></ul></ul><ul><ul><li>Product recommendations </li></ul></ul>

77.
Recommendation <ul><li>iApple </li></ul><ul><ul><li>Social networking </li></ul></ul><ul><ul><ul><li>Interact with other customers </li></ul></ul></ul><ul><ul><ul><li>Customer service portal </li></ul></ul></ul><ul><ul><li>iPhone / iPod / iPad App </li></ul></ul>

78.
Recommendation

79.
Recommendation <ul><li>iPhone Initiative </li></ul><ul><ul><li>Open phones to every carrier </li></ul></ul><ul><ul><ul><li>Apple experience for all </li></ul></ul></ul><ul><li>Connected to iApple </li></ul><ul><ul><li>Every user now in database </li></ul></ul><ul><ul><ul><li>Customer profile </li></ul></ul></ul>

80.
Recommendation <ul><li>iPhone Initiative </li></ul><ul><ul><li>Growing knowledge of each customer </li></ul></ul><ul><ul><ul><li>Increased customer share </li></ul></ul></ul><ul><ul><li>Paying for apps/music </li></ul></ul><ul><ul><li>Automatic sync with only Mac </li></ul></ul><ul><ul><li>Offer iPhone for free </li></ul></ul><ul><ul><ul><li>Lifetime value </li></ul></ul></ul>

81.
Recommendation <ul><li>AppleU </li></ul><ul><ul><li>Rebranding of one-to-one program </li></ul></ul><ul><ul><li>Product training with Mac Specialist </li></ul></ul><ul><ul><li>Utilize intellectual capital </li></ul></ul><ul><ul><ul><li>Educate customers about any Apple product </li></ul></ul></ul><ul><ul><li>Increased customer share </li></ul></ul>

82.
Future Study Leadership Recommendations

83.
Future Study <ul><li>Pursuing stronger strategic alliances with software companies </li></ul><ul><li>Taking Apple into the business world </li></ul><ul><li>Greater shareholder focus </li></ul><ul><li>Social media integration </li></ul>

84.
Spiritual Implications Leadership Recommendations

85.
Spiritual Implications <ul><li>Socially Ethical Practices </li></ul><ul><li>Diversity and Equal Employment </li></ul><ul><li>Environmentally Conscience </li></ul>

86.
Spiritual Implications <ul><li>Socially ethical practices </li></ul><ul><ul><li>Titus 2:7-8 </li></ul></ul><ul><ul><ul><li>“ Show 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 us.” (ESV) </li></ul></ul></ul>

87.
Spiritual Implications <ul><li>Diversity & Equal Employment </li></ul><ul><ul><li>Acts 10:34 </li></ul></ul><ul><ul><ul><li>“ So Peter opened his mouth and said: ‘truly I understand that God shows no partiality’” (ESV) </li></ul></ul></ul>

88.
Spiritual Implications <ul><li>Environmentally Conscience </li></ul><ul><ul><li>Psalm 115:15-16 </li></ul></ul><ul><ul><ul><li>“ May you be blessed by the Lord, who made heaven and earth! The heavens are the Lord’s heavens, but the earth he has given to the children of man” (ESV) </li></ul></ul></ul>

89.
Final Questions <ul><li>Would we work for this company? </li></ul><ul><li>Would we invest in this company? </li></ul>

90.
Works Cited <ul><li>&quot;Apple Inc.'s Corporate Culture: The Good, The Bad and The Ugly - HROB Case Studies | Case Study.&quot; 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>. </li></ul><ul><li> </li></ul><ul><li>Arends, Brett. &quot;7 Reasons Apple Shareholders Should be Cautious.&quot; 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-reasons-apple-shareholders-should-be-cautious?sec=topStories&pos=7&asset=&ccode=>. </li></ul><ul><li> </li></ul><ul><li>Jade, Kasper, and Katie Marsal. &quot;AppleInsider | Employees offer mixed reactions to Apple corporate life.&quot; 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>. </li></ul><ul><li> </li></ul><ul><li>&quot;World's Most Admired Companies 2010: Apple snapshot - FORTUNE on CNNMoney.com.&quot; 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>. </li></ul><ul><li>Apple . Web. 10 Mar. 2010. <http://www.apple.com/jobs/us/benefits.html>. </li></ul><ul><li>&quot;Retail Store Hiring.&quot; Ifo Apple Store . Web. 10 May 2010. <http://www.ifoapplestore.com/stores/hiring.html>. </li></ul><ul><li>SEC Filings., secfilings.com/myalers.aspx?welcome=true> </li></ul><ul><li>Hoovers., www.hoovers.com/company/apple.inc/rtjcci.html> </li></ul><ul><li>Argus Research., www.argusresearchcompany.com/appleinc </li></ul><ul><li>Business week., www.businessweek.com </li></ul><ul><li> </li></ul><ul><li> </li></ul>

91.
Question Answer