Challenges in Decision-Making at Apple - Assignment Example

Decision Making Proposal Background Decision making problem can be defined as the science of identifying and choosing the alternatives based on the preference of the decision maker. The decision making problem that is encountered by Apple in introducing new products or services is, whether the consumer will prefer to purchase the particular product and whether the new product will meet the needs and requirements of the consumers. The price of various products of Apple Inc is very high; therefore it creates a problem for the concerned company in launching its new and innovative products in the market (Apple Inc, 2014). 2. Problem Statement The main challenge faced by Apple in its decision making process is regarding introduction of new products and services in the market. The premium price charged by the concerned company might create problem for its business operation in the long run. 3. Evaluation Considerations & Evaluation Measures Apple Inc is well known for offering new and innovative products to its customers. The concerned company is constantly engaged in introducing unique products in the market. But the problem faced by the concerned company in delivering its new product is in determining whether the product introduced in the markets fulfils the expectations of its potential customers. The company charges high price as compared to its competitors. Therefore Apple remains in dilemma whether the consumer will consider the unique specification or feature included in the product or will compare the price while purchasing a particular product. The concerned company gained competitive advantages over its competitors in the market. Therefore in order to maintain its brand value and brand equity in the market Apple Inc is required to consider the psychological and behavioral aspects of the customers. The company is focusing only on the high end products, which might create a problem of sustainability of its business operation in long course of time. Apple is required to emphasize on introducing products both for its high end as well as low end consumers in the market. 5. Alternatives The alternatives considered for overcoming the decision making problem associated with the introduction of new product in the market is to make its premium and high-end products more attractive to its customers. The concerned company is focusing on differentiation strategy for its premium products and low cost producer which will offer an adequate product with low price. The low end product provided by the concerned company to its customers in the market should be charged below its competitor’s price. 6. Resources The list of resources utilized in the decision making process of the concerned company are its easy accessibility for its developers, fast support accessibility, ATMac, discussion on VIPhone which will provide entertainment to its consumers using email for discussion with the particular community and exploring new areas in technology. The product introduced by the concerned company is Ipad Air, Iphone, Ipod touch, Ipad mini, Ipod mini, Ipod shuffle (FEMA, 2005). Interim Report Background The decision making problem encountered by Apple Inc in introducing new product in the market is due to the high price charged by the concerned company. The concerned company is adopting new technology for providing best and unique services to its customers. But the high price charged by the company may act as a barrier for increasing sustainability in the long run. Apple Inc includes various applications in its latest mobile, which is creating problem for the customer in understanding and applying all its applications. The problem faced by the company affects the stakeholders adversely. The products offered by the concerned company become obsolete. Therefore the consumers face problem for servicing their mobile phones. Problem Statement The concerned company usually faces competition from its competitors. The decision making problem encountered by Apple is the high price charged by the company as compared to its prime competitor Samsung. The company is in dilemma, whether the consumers will prefer to purchase the product which offers wide number of features to its customers or the product which is available at lower price. The concerned company encounters problem in identifying the need and preference of the customers in introducing new product in the market. Apple is considered as a market leader in the technological industry. In order to maintain its position as a market leader it encounters decision making problem in manufacturing and introducing new and unique product for its prospective customers (Jurevicius, 2015). Objective(s) The main objective of the business is to generate adequate revenue in the market, achieve sustainability so that it can continue its business operation for a long period of time, gain competitive advantage over its competitors and maintain its position as a market leader in the technological industry. The concerned company faces obstacle and challenges in achieving the above objectives since large number of players are entering in the technological industry, providing various features at a cheaper price as compared to its competitors. The unique features or the applications included in the product, sometimes create problem for the stakeholders in using the device or the product. The market share of the concerned company is declining with the passage of time. Decision Alternatives: In order to solve the problem related to decision making the concerned company is required to hold meetings and conferences with its members. The board along with the other members of the company should implement new ideas and strategies in introducing its new product without any challenges or difficulty. Evaluation Considerations and Evaluation Measures: Adequate measures or steps are required to be adopted by the concerned company in mitigating its problem related to decision making. The decision maker of Apple is required to focus on restructuring its price structure by improving its product and service quality and also emphasizing on continuous development in its technology (Lunenberg, 2011). Executive Summary Problem Background The problem discussed in this paper focuses on the problem or the challenges encountered by the concerned company in its decision making process , whether the new product introduced in the market will be successful in fulfilling the needs of the customers and whether it will meet with the expectations of the stakeholders in the market. The problem faced by Apple in recent years is increasing competition from its competitors in the market. The extent of competition is increasing with the emergence of large number of players in the industry. The concerned company is charging high price for its products, since it is offering new and unique service to its customers. The company is facing difficulty in targeting all segments of customers due to the high end price charged for its products. Problem Statement: The problem faced by Apple Inc may affect its profitability and liquidity in the long run. Therefore the decision maker is required to identify all the problems related to introduction of new and unique products offered in the market. The concerned company should plan its process accordingly in order to overcome its challenges and gain competitive advantages over others (Ulwick, 2005). Objective(s) The main objective of the company is to generate adequate revenue from the market and increase its profitability by capturing a wide segment in the market. The prime objective of the concerned company in introducing its new product in the market is to increase the demand for its product in the highly competitive market. Decision Alternatives The decision alternatives for solving the problem related to charging high price for introducing new products in the market can be overcome by segmenting the products on the basis of high end price and low end price. Apple should focus on product differentiation strategy for providing new and unique product with wide number of features encrypted in it for its high end customers and low cost producer charging lower price as compared to its competitors for its low end customers. The products are required to be segmented because the affordability status of the consumer varies accordingly. Therefore considering the behavioral and the psychological aspects of the consumers the products are required to be introduced in the market. Data Collection and Evaluation Measure Scores Data collection is considered as an important technique for conducting a research. Secondary research has been used in this paper. Various books journals, magazines, news articles are considered in this paper. The company selected for discussion in this paper is Apple Inc. Therefore the company related information is gathered from the company website. The scenario analysis is done on the basis of assumption in order to evaluate the expected rate of return of the concerned company. The decision making problem of the company is discussed in this paper. The market size, revenue etc are considered in this paper in order to evaluate its performance. Both quantitative as well as qualitative data has been used in this paper for analyzing the decision making problem of the concerned company (Oliver, 2007). Value Calculations, Scenarios and Analysis In order to conduct the scenario analysis of Apple the following items were taken into consideration which includes new entrants in the market, the smart phone manufacturers, software or hardware suppliers in the market, government, application developers, the telecom companies, the Smartphone users and the research and development centre of the Smartphone manufacturers. Apple is adopting cloud technology in its products. The concerned company acquires a huge market share in the telecommunication industry. Therefore the company is able to generate adequate revenue from its operation in the market. The scenario analysis of Apple resembles that the company is emphasizing on its research and development for offering new product to its customers with unique features and services. The expected rate of return is calculated on the basis of assumption by considering different economic scenario which includes the boom, normal and recession. Conclusion Apple Inc has been selected as a company for analyzing the decision making problem. Different companies face different types of decision making problem. The decision making problem encountered by the concerned company is introducing new products or services in the market. The concerned company is continuously focusing on improvement in its technology. Therefore the price charged by the company is higher as compared to its competitors. Therefore Apple Inc faces decision making problem while introducing new product in the market. Scenario analysis has been conducted on the basis of assumption for determining the expected return of the company in the future. The concerned company identified the base of the problem and thereby adopted various alternative strategies in order to overcome the decision making problem. References Apple Inc. (2014). Stock Analysis, Retrieved from: < https://www.stock-analysis-on.net/NASDAQ/Company/Apple-Inc>. FEMA. (2005). Decision making and problem solving, Retrieved from: < https://training.fema.gov/emiweb/downloads/is241.pdf>. Jurevicius, O. (2015). Apple SWOT analysis 2015, Retrieved from: < http://www.strategicmanagementinsight.com/products/swot-analyses/apple-swot-analysis-2014.html>. Lunenberg, F. (2011). Decision making in organizations, International journal of management, business, and administration, 15(1), 1-9. Ulwick, A. W. (2005). Business strategy formulation: theory, process and the intellectual revolution. USA: IAP. Oliver, S. (2007). Corporate communication. London: Kogan Page Publisher. Appendix Read More