Apple Inc Assessment - Assignment Example

APPLE INC Name Institution Professor Course Date 1. Detailed analysis of the strategic options open to the company and your recommended future strategy Apple Inc is perhaps the most successful organisation in different respects. Although the company has managed to establish great value in the increasingly competitive personal computer industry, via forging and innovating a path greatly diverse from biggest competitors, there are major financial dangers with being the first mover. Coming up with concepts of innovation is one thing and exploiting them is another thing altogether (Anonymous 2008:13). Competitors throughout the world are enhancing their market positions via duplicating successful Apple products besides providing newly enhanced products at reduced prices. To enhance its position and value in the personal computer industry, there are several practical strategies that Apple can adapt and implement in future. Apple Inc should pursue a broad differentiation strategy .Through this strategy, the company should differentiate its products via providing high-quality, personalised and exceptional designs. The capacity of this strategy is to target a wide range of clients from refined product users to unrefined users. Another strategy applicable to the company to help it curb competition is value creation that can be promoted through outsourcing its product basics to 3rd party original equipment manufacturers that hold the potential to cut on costs via economies of scale. The company can as well use in-housing design components to retain and attract clients. According to Daft and Marcic (2012:170), one of the principal roles of managers is to set goals for where the firm should be in future and plan how to get there. While managers at Apple Inc decide to move to expand the firm’s reach in entertainment through signing deals with four major music labels, Universal Music Group, Warner Music Group, Sony Music Entertainment and EMI, the company should eliminate subscription fee for its cloud music service in order to attract and retain more clients. While diversifying its products, Apple Inc should also diversify its services to include financial service solutions just like its major competitor, Dell Inc. Apple should also drive down its cost via direct sales perspective. Another strategy worth considering is manufacturing products on order to lower inventory and warehousing cost (Grundy 2012: 13.) Just-in time manufacturing enhances production and quality costs. Other strategies include licensing more Apple stores and the recommended strategy is to develop lasting organisational strengths through executing an apparent intended selection program and leadership development that will be in a position to build up the needed leadership that will guide the company’s growth. Innovative and creative leadership is what the company requires. The leadership should implement diversification strategy that needs great resources aimed at developing novel products to sell into new markets. Through effective leadership, the company will to grow through market penetration, market development and product development (Kazmi 2007:43). These strategies are feasible because the success of the company is linked to its capacity to innovate and grow. Innovations enhance growth and it is recommended that Apple finance research and development to ensure that company produce high-quality and valuable products at affordable prices. 2. Description of how implementation of your strategy will be undertaken The strategic options and the recommended strategy for Apple Inc are feasible and their purpose is to address the issues facing the company in its growth, leadership, innovation, manufacturing and inventory and retention and attraction of its customer base. Conversion and implementation of strategies to organizational activities is the hardest part every management has to deal with (White & Bruton 2011: 157). However, there are several actions, which must be adhered to support the implementation of the strategies. The management must resort to following a detailed efficient tactical management model with amplified innovative perspectives. In addition, the management should publicise the central tactical philosophies without disseminating crucial information or competitive aptitudes. Publicity helps in recognition and devotion to the strategic procedures. However, all the selected strategic options should be designed accordingly to satisfy the criteria of S.M.A.R.T goals (White & Bruton 2011: 157) .The management should establish a well conceived and transparent plan for cultivating a leadership that is participative and consensual in temperament. The company should consult the services of Human Resources experts from other well [performing industries. A marketing strategy to ensure efficient dissemination of information in a socially and culturally acceptable manner should be adopted. The company should also utilise its financial reserves to establish novel and high quality-products at reduced prices. For instance, the company should establish free music subscriptions to attract more customers. 3. Description of the strategy control and evaluation processes According to Kozami (2002:419), strategic assessment and control entails the final phase of strategic management and this process operates at strategic level and operational level. It entails the procedure of determining the effectiveness of a selected strategy in attaining the organisation goals and taking corrective action when needed. At the strategic level, the strategists are more concerned with steadiness of the strategy in relation to the environment while at the operational level, the strategists focuses on evaluation of how well the firm is pursuing the selected strategy (Ireland & Hitt 2011:38) . Apple Inc should set the standards, measure performance, assesses variance and take corrective action. The company’s management and all other stakeholders will be included in the strategy control and evaluation processes. The process should entail only limited amount of information, check only managerial activities and results and the control will focus on underlining exceptions. Constant evaluation of the strategy will be performed and adjustments made to meet novel requirements. The strategists will assume implementation control that identifies and monitors strategist thrusts such as marketing of novel products or monitoring the practicality of diversification programme. 4. Summary Apple Inc is one of the most extremely valued firms across the world. However, to retain its market position in the midst of other valued companies, Apple requires adopting feasible strategies that promotes good leadership and innovation. Apple faces stiff competition from both software and hardware companies such as Hewlett-Packard, Dell Inc and Microsoft Corp. To ensure that the company remain competitive in the industry, Apple must develop and implement strategies which include manufacturing high quality products and offering them at affordable prices, embracing innovation, licensing more stores, diversifying its products, embrace value creation, adopting a broad differentiation strategy and more importantly introducing efficient leadership shifts following resignation of its CEO and founded Steve Jobs. The strategic recommendations will function to ensure that the company constantly grow and embracing an innovation strategy will support diversification of the company products to communication and entertainment devices. All these strategies are a major component to the company’s success and continuous growth. The strategic controls and evaluations allow the strategists to adopt longer-term strategies and embrace acceptable risks while upholding the firm’s productivity and profitability. The strategic recommendation and their implementations, evaluations and control will facilitate arise in apple sales, innovation, market share, profits beside ensures a competitive edge for the company. References Anonymous (2008) In from the cold: How Apple has blossomed. Strategic Direction. 24.3:13 -16. Daft, Richard, Marcic, Dorothy (2012) Understanding management. UK: Cengage Learning. Grundy, Tony (2012) Demystifying strategy: How to become a strategic thinker. UK: Kogan Page Ireland, Duane, Hitt, Michael (2011) Understanding business strategy concepts plus. UK: Cengage Learning. Kazmi, S (2007) Marketing management: Text and Cases. India: Excel Books India. White, Margaret, Bruton, Garry (2011) The Management of technology and innovation: A strategic approach. UK: Cengage Learning. Read More