Such alliances enabled the firm to mitigate the competitive risks. Boston, MA: Harvard Business School Publishing. Apple Inc. has followed a flat structure of organization. This is IvyPanda's free database of academic paper samples. The development and introduction of new products is the main driver and the cause of increased demand. ensure the integrity of our platform while keeping your private information safe. In this project I am going to describe the Strategic and Marketing Plan of Apple Inc, Which is the biggest consumer electronics provider in the world. Apple Inc. has managed to create a demand for its products through innovative approach, which has provided the firm with increased power over pricing. Our objective is to find out the advantages and disadvantages of different organization structure that Apple Inc. has implemented till now. Gone is the feeling of a small, nimble company run by a visionary founder who can single-handedly make major product, design and marketing decisions on his own. One of the main challenges is the logistical costs, which in effect increases the cost of production. Apple Inc. was known because of its lenient business thinking. Finally, there are many risks facing the company, that’s why it should not rely too much on the innovative and management power of one person (Yukl, 2010). Operational plan is the key to run the entire business of company. This exclusivity strategy results in a limited market reach. The main sources of risks and uncertainties include competition and economic factors. The dependence on the third-party suppliers has many challenges. Increased costs of production and cumulative reduction in the prices squeeze the firm’s profits. Compared to the competitors, the company’s products are highly priced, which lowers its competitive advantage. Your privacy is extremely important to us. Apple’s strengths are based on several factors. Your privacy is extremely important to us. Managerial Decision-Making. Upper Saddle River, NJ: Pearson/Prentice Hall. Apple CEO and co-founder Steve Jobs on March 2, 2012, emerged from a medical leave of absence to introduce the second generation of the iPad.Kimihiro Hoshino/AFP/Getty Images. As a result, they produce cheap, efficient and competing products that in many ways drive down the prices of the original products. The industry structure and dynamics has enabled the firm to come up with strategies that has effectively improved its competitive advantage. In 1996, the Company was transformed to Apple Inc. under Steve Jobs. The dependency on the third-parties for product components and logistic services are the main source of inventory risks, which have a direct effect on the products quality, costs and compliance. Consequently, the company plays in gradually growing industry. Apple from iPod to iPad, a case study on the corporate strategy. Apple has had difficulty passing on their ethical values on suppliers providing components to the company. Organizational behaviour (14th ed.). On the other hand, most Apple products are incompatible with Windows. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. On one hand, it’s an unquestionable success. Cookies Policy, This research paper on Apple Inc. Famington Hills, NJ: Prentice Hall. The content-first approach is still evident in Apple’s decision making today. Its researches are carried out by highly skilled workforce. Apple Inc. has a very limited distribution network due to the company’s strategy of exclusivity. Innovativeness is Apple’s core strength. Most of the competing firms are likely to produce similar and low-cost products. Managerial Decision-Making specifically for you for only $16.05 $11/page. The strategic and operational choices are some of the managerial decisions that can lead to the growth and development of the firm. The how refers to the actions a company takes to bring the beliefs into reality. Apple Inc. attracts customers from all over the world. The paper also investigates how the company has responded to changes in competitive markets. Company develops designs and mark… However, the company has not successfully met its customers’ need. The database is updated daily, so anyone can easily find a relevant essay example. Apple has its stores all over the world trying to enhance customers’ accessibility in such a way. The paper discusses the managerial decisions made by Apple Inc. that has led to its growth over the years. This keeps delays in decision making to a minimum and enables the company to be very lean with its approach to design. Unfortunately, your browser is too old to work on this site. The strategic financial and managerial decisions have resulted in in an increase in net revenues since the revamp of the firm in 2001. One of the most important aspects is the company’s ethical decision making. When Steve Jobs returned to Apple in 1996, Jonathan Ive was already head of the company’s design team. Appendix 1: Apple’s Net Sales from 2001 financial year to 2013 financial year, Appendix 2: Apple’s revenue growth trends from FY 2001 to FY 2013. The implication is that the changes in prices would not significantly change the quantity demanded (Douglas, 2012). (See the appendices for more details on the firm’s financial performance). Managerial Decision-Making." Apple unique products still place it at exceptional competitive position over the rivals. This report on Apple Inc Decision Making Process was written and submitted by your fellow student. Who captures value in a global innovation network? Copyright © 2021 - IvyPanda is a trading name of Edustream We will write a custom Research Paper on Apple Inc. The affiliate firms have increased potential of labor violations and misconduct due to lack of direct oversight or differing labor standards. Apple has also created a good brand name in the market. (2008). "Apple Inc Decision Making Process." This paper analyses each and every capacity of the company to invest in decision making process. In most instances, the input components are manufactured in countries with low labor costs. The company is always involved in active research and implementation of new developments. Lastly, Steve Jobs was a genius, which made the company rise to such a height (Lashinsky, 2012). In fact, the firm’s dependency on the performance of distributors, carriers and other resellers has the effect on the products quality and cost, which in turn affects the firm’s operating profits (Linden, Kraemer & Dedrick, 2008). "Apple Inc. On 1 April 1976 Apple was founded, making the company 41 years old as of the 1 April 2017 - here's a historical breakdown of the company. We will write a custom Report on Apple Inc Decision Making Process specifically for you for only $16.05 $11/page. Retrieved from https://ivypanda.com/essays/apple-inc-managerial-decision-making/. Saarbrücken: VDM, Verlag Dr. Müller. Apple’s strengths are based on several factors. Technologies LLC, a company registered in Wyoming, USA. Even though the pricing strategy of the firm is aimed at placing the products at the highest competitive edge in the high-end market, the cost of product is also considered. The Apple Model. IvyPanda. Apple has managed to survive and even thrive despite some very bad leaders, products and financial results over the years. Apple Inc. has the design, marketing and manufacturing services. One way through which the firm can sustain its competitiveness is through continuous offering of unique and quality products. Most importantly, the economic decline greatly affects the firm’s sales margin. Despite the challenges, Apple strengths and opportunities still overweigh its weakness and threats making it still a lucrative investment company. This is IvyPanda's free database of academic paper samples. Com­munications of the ACM, 52(3), 140–144. The case of Apple’s iPod. By undergoing external factor analysis of PEST Apple Inc we will easily handle many assumptions and will also adapt quickly and effectively to the change of external conditions. Consequently, The Apple has a small market share as compared to its competitors’ ones. For instance, Samsung produces cheap iPads and Smartphones compared with that of Apple. Douglas, E. J. In order to succeed in this endeavor, the firm has to secure input components from the supplier firms, which are located within the country or abroad. Apple shops also provide their customers with opportunity to choose between different products and services (Janko, 2012). As such, Apple would lose out to competing products from other firms when prices are changed. He is a flexible person and he recognized his role was to be visionary of the company. Do you see the problem? Apple conducts thorough promotions under its slogans, such as “think different” and “the greenest lincups of notebooks”. IvyPanda. As a result, some customers prefer companies like Nokia and Samsung that provide compatible with Windows platform products. By 2010, it became a competitive mobile and PC devices vender. The company’s wide researches in technological field make it stand out from the other companies in the market as the pioneer in the industry. As a result, the firm invested into these newly emerging opportunities and established itself to be the market leader in these product segments. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Apple Inc. In fact, all the economic risks and uncertainties are extrapolated on the firm’s gross and net profit margins. The company that is selected for the analysis of information management is the famous digital products manufacturing company “Apple Inc.”. Secondly, strategic planning will encourage improved decision making at Apple Inc. Bryson (2004) says that the Apple Inc senior management team will, through the strategic plan, develop a sound and justifiable basis for decision making and then harmonize the resulting resolution across all levels of Apple Inc. The launch of Ipod caused an increased in the gross margins by over 40%. "Apple … "Tim Cook has had a stellar run at Apple—even without another mega-smash like the iPhone." The company has good relationship with most players. The appropriate strategic and managerial decisions have enabled the firm to survive the industry dynamics, technological transformations and financial difficulties. The consumer behavior towards the firm’s products reflects the purchasing decisions of the majority within the industry. The majority of the clients would not make purchases when the prices are changed. Managerial Decision-Making." Market Segment and Decision Making on Apple Company Introduction to Market Segment and Decision Making on Apple Company Market segmentation is a procedure of dividing a broad customer segment into sub-groups of consumers. Apple production of energy is efficient because it is cloud based, moreover, its music products keep it a head among competitors in meeting customers’ demand (Schneiders, 2012). They should not be dictatorial, and should express faith in the unknown… Leadership in organizations (7th ed.). Whether Apple… The company, known for its design, takes that ethos to its communications, and communicating who is visible and thus who is “an Actor” is a design decision. Managerial Decision-Making." The company has survived because of a … Ashcroft, J. Your decisions should come with confidence and resolve, and should not feel forced or come from uneasiness. July 1, 2019. https://ivypanda.com/essays/apple-inc-managerial-decision-making/. IvyPanda. Other stakeholders include their lenders and suppliers. "Apple Inc. Schneiders, S. (2012). 1. Subsequently, Apple has a strong basis for expansion in Asia, Europe and Africa. The decision making process depends on an exclusive group of people in gathering information and ideas, but the final critical decision decided by its C.E.O. The company has various software developers who assist in its production. Let's see if we can help you! To satisfy the Board's duties, directors are expected to take a proactive, focused approach to their positions, and set standards to ensure that Apple is committed to business success through the maintenance of high standards of responsibility and ethics. Apple’s high innovativeness has made the company stand a stiff competition in the industry. The intense competition has a profound effect on the operations, marketing and pricing strategies. Leaders are cross-functionally collaborative and deeply knowledgeable about details. This helps the organization to identify the strengths and weakness of the company and formulate appropriate improvement plans. Generally, the increased competition and the industry dynamics have a direct effect on the costs, operations and profitability of the firm. IvyPanda. Need a custom Research Paper sample written from scratch by The strategic and managerial decisions influence the firms operations, which in turn enables it to survive in a highly competitive environment. Consequently, Mobile and PC industry is very dynamic that calls for constant innovation. It provides wide range of consumer electronics in the market like MAC computers, IPOD, I Phone, LAPTOP, IPAD. The other source of risk is the firm’s dependency on the third-parties for certain components used in the product development. Areas where the government regulations affect the firm’s operations are in the patents and copyrights laws as well as labor regulations. However, the prices will continue to decrease with time (Linden et al., 2008). (2019) 'Apple Inc Decision Making Process'. professional specifically for you? Further, the Firm is boasting of market Capitalization of a bout $592 billion and an enterprise value of about $550 billion. Apple’s method of communicating provides consumers’ with trust, confidence, and a set of shared beliefs inspiring people to make a purchase from the company. Over the last decade, the significance of digital devices particularly, the mobile communications and media devices merged. The focus is on how the firm has used the managerial decisions to respond to the changes in the market structure and competitive environment. In fact, the improved revenues have enabled the firm to gain financial capabilities (See appendix on more of the firms Revenues). Apple Inc. is one of the few largest companies that is producing the information technologies in distinctive manner that are satisfying the needs and requirements of the people. Apple’s Mac, iPhone, iPad and iPod are produced with a lot of high technology innovation. 2019. Accessed April 20, 2020. Many people are locked out of its market due to high prices. The most likely decision- making process Apple Inc. would go through based on its values when hiring a team to work in a retail store would come from an orientation to the Results profile. The database is updated daily, so anyone can easily find a relevant essay example. The what are the resulting actions, such as the services, products, culture, marketing, and employees. IvyPanda, 29 Dec. 2019, ivypanda.com/essays/apple-inc-6/. Apple’s success is rooted over its constant innovation and wide marketing. As indicated, the firm is operating in a highly competitive environment. Managerial Decision-Making." It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. For instance, the introduction of the new products into the market has caused the firm’s revenues to increase from $5 billion to over $108 billion within ten years. Essentially, economic decline have a triple effect on the firms sales. Apple has had trouble go throughing on their ethical values on providers supplying constituents to the company. In 2009, its PC market share was 8% in the United States. Like any other company, Apple has its own strengths and weaknesses. Apple Inc Decision Making Process. Blue ocean strategy – How to create uncontested market space and make the competition irrelevant. Most customers need the experience provided by Apple stores. However, most of the product inputs are not manufactured within the firm’s premises. Technologies LLC, a company registered in Wyoming, USA. However, the concept of price elasticity is only applicable when other factors are kept constant. Similarly, the launch of iPad caused a leap in the operating profit to 32% in 2011. Apple Inc. net revenues have been increasing since the revamp of the firm in 2001. IT World. How did Bill Gates and Steve Jobs Differ in their Leadership Style? Such effects are indicated in the financial results as declining sales, gross, operating and net margins (Linden et al., 2008). Apple’s compliance with the government regulations is reflected on its ethical values and corporate culture. We utilize security vendors that protect and Besides risks associated with operations, economic and political uncertainties are also reflected in the firm’s financial results. The products sent a bad picture of Apple that is why the company lost many customers. "Apple Inc Decision Making Process." It has about 49,400 employs and over 240 Retails Store all around the world wide out of it 218 are in US and 24 in UK rest in other countries. Apple has a strong ethical code of conduct that represents the company as being ethical in all decisions being made. Managerial economics. Despite its tactics, Apple is threatened by high competitors in the market. For instance, the firm recorded low profit margins during the 2001 economic decline and the 2007-2008 economic recessions. Under this, it assumes that various market segment needed several marketing events such as offers, promotions, prices etc. It faces a lot of competitive pressure concerning its differentiated products. The marketing of Apple Inc.: a success story analyzed in a traditional marketing model. The profits are estimated to have grown by over 28% during the period. Generally, the firms pricing and production decisions, take into consideration the micro-economic theories of production and consumption. On contrary, Apple has some weakness in its production. We utilize security vendors that protect and (2012). The company’s wide researches in technological field make it stand out from the other companies in the market as the pioneer in the industry. CNBC. The financial results indicate all the risks and uncertainties the firm has gone through during the financial year. Ethical decision-making at the Apple Corporation is based on the necessity of the company helping improve the lives of individuals. Apple’s Mac, iPhone, iPad and iPod are produced with a lot of high technology innovation. The launch of such products has caused a tremendous increase in the firm’s sales and profit margins (Kim & Mauborgne, 2005). Political, Economic, Social, and Technological factor (PEST) are four main external factors that place a big role in a company’s decision-making process. Apple has many stakeholders. Robbins, S., & Judge, T. (2011). Strategic plan sets up the business plan of a company while business plan in turn establishes the business operation plan. For full functionality of this site it is necessary to enable JavaScript. Mobile and PC industry is growing fast because there is an ever-rising demand for its products. How many pages (words) do you need? Let's see if we can help you! I personally think that before studyin… Like any other company, Apple has its own strengths and weaknesses. Well, Bill gates leadership is participative style because he involves his subordinates in decision making. IvyPanda. Such increased expenses have the effect of increasing the cost of the final component delivered to the firm. Yukl, G. (2010). It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. 29 December. Hamburg: Diplomica Verlag. Constant changes in the consumer demand as well as the purchasing decisions in relation to the firm’s products, the competitive pressures and transformations in the technological innovations are some of the uncertainties the firm is facing (Ashcroft, 2012). Besides, the labor issues with some of the firm’s suppliers have a direct effect on the operations of the firm. How many pages (words) do you need? Linden, G., Kraemer, K., & Dedrick, J. Janko, G. (2012). "Apple Inc Decision Making Process." Apple Inc. still enjoys a lot of opportunities in the field. In practice, this should mean that every single Apple product is inspected by the executive team at least once a fortnight. Such competing firms enjoy the cost advantages in their production process. Apple enjoys good relationship with its stakeholders due to its well-structured operating system (Robbins & Judge, 2011). IvyPanda, 1 July 2019, ivypanda.com/essays/apple-inc-managerial-decision-making/. Apple Inc.’s operations management (OM) involves the application of the 10 decisions of OM to ensure that all aspects of the business are running smoothly. The economic decline also affects the operations of the other firms that depend on the Apple’s products and services. Apple has failed in production of affordable products. December 29, 2019. https://ivypanda.com/essays/apple-inc-6/. The operating profits have jumped from a loss of $344 million in 2001 to over $33 billion in 2011. Apple Inc. is operating in a risky and uncertain industry. You are free to use it for research and reference purposes in order to write your own paper; however, you must. For instance, most of the components that were used in the production of iPad were mainly manufactured in China. IvyPanda. we will assume that you agree to our Apple also has its manufactures and subsidiary companies with their subsequent employees. Inside Apple: the secrets behind the past and future success of Steve Jobs’s iconic brand. In other words, the product prices are normally high during and immediately after the launch. "10 ways Tim Cook has made Apple his company… This weakness exists even with the advantages that come with exclusivity like strong control of the distribution of products. (2012). Apple has also create… Apple Computers was founded by Steve Wosniak and Steve Jobs in 1976. ensure the integrity of our platform while keeping your private information safe. It has the music industry, which enables it to develop music products. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. In fact, most of the Apple products have close price elasticity considering marginal revenues and costs (Douglas, 2012). Managerial Decision-Making'. Besides, the inputs used in the production of the major firm’s products are manufactured by the third-party suppliers that are mainly located internationally. San Diego: Bridgepoint Education, Inc. Kim, W. C., & Mauborgne, R. (2005). If you continue, Decision making will help in understanding what best suits their needs and, in turn, also helps the company out to better serve in the modern market. This paper analyses each and every capacity of the company to invest in decision making process. As a result, Apple incurs extra cost of ensuring that all its product components are manufactured under internationally accepted labor standards and conducts. The violation of labor regulations has resulted in some firms closing their operations or increased financial compensations for the workers. From 2001, the firm’s revenues have increased from a bout $5 billion to over $108 billion in 2011. Price elasticity is significant in the pricing decisions especially in an industry that is highly competitive. At Apple’s company, one is a magic number. Even though the products have different elasticity, the demand for most of the firm’s products can be described as price elastic. Lashinsky, A. Apple carefully selects the authorized sellers of its products. Risks associated with such uncertainties include timely delivery of the firm’s products and services, product development and adaptability to meet the changing consumer demand. Basically this flat structure has encouraged employees to contribute to the decision making process by directly participating in it. "Apple Inc Decision Making Process." The strategic and operational decisions are significant success factors of the firm and determine its growth direction. Besides, the firm also offers a wide range of services, peripherals and network solutions to businesses, private and government institutions (Apple, 2011). (2012). The Charismatic Leadership of Steve Jobs at Apple. Apple TV and Mac Mini seriously suffered a blow in the market. Competition is the major factor that contributes to the decline of prices. A pple is a confusing company.