Apple Company - Strategic Directions, Implementation, and Evaluation - Case Study Example

APPLE COMPANY Strategic directions, implementation and evaluation Name Institution Date Apple Company: Strategic directions, implementation and evaluation Introduction The process whereby an organizations draft, implement and evaluate strategies that facilitate achievement of long-term objectives is referred to as strategic management. Koch et al, identify five stages of crafting and executing a company’s strategy. First, coming up with a strategic vision which tells the long term direction the company is taking. Hand in hand with that, develop a mission which pronounces the company’s purpose. The vision and mission are guided by a set of values the company comes up with. Secondly, setting objectives and making them yardsticks to measure how the company performs and progresses. Thirdly, crafting a strategy which helps the company to achieve the set objectives and drive the company on the strategic course. Fourthly, execute the strategy in an efficient and effective manner. Finally, “Monitoring developments, evaluating performance, and initiating corrective adjustments in the company’s vision and mission, objectives, strategy or execution in light of actual experience, changing directions, new ideas and new opportunities” (Koch et al, n.d, p. 22). Strategic direction and strategic objectives Established in 1976, the Apple Inc. (Apple), designs and markets computer software, consumer electronics and personal computers. It was established by Steve Wozniak and Steve Jobs in Cupertino, California. It operates in United States, Canada, United Kingdom, Japan, Australia, Switzerland, Italy, Germany and China. Apple’s motto is “Think differently. Apple has been termed as one of the most successful companies in the world. Vision Statement There are a myriad of speculations about Apple Inc.’s vision and mission statements. Khan (n.d) says that Apple’s vision is the quote by Steve Jobs. He said, “Man is the creator of change in this world. As much he should be above systems and structures, and not subordinate them” (Apple Inc, Website). Ramosaj et al says that Steve jobs words “An Apple computer on every desk” is Apple Inc.’s vision. They are of the opinion that the vision is clearly stated. The second vision statement can be termed as the ideal vision statement. It is not very well articulated since there are different views from different scholars about its mission statement. They live this vision by making their customers to be masters of the products they buy from Apple. They ensure that this vision is lived by communicating it to the employees and encouraging them to live it. Mission Statement From its website, the mission statement is “Apple design Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its ipods and itunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with ipad.” Apples press releases ends with this statement, “Apple is.” The mission statement is no better in articulation. Apple has been acclaimed for its innovation and one would expect that its vision and mission statement should be equally innovative. Apple mission my not be considered a mission at all. It is a list of the products that they produce and past accomplishments. It is not directly distinguishable which of the two their mission statement is. Nevertheless, Apple has lived their mission; it has not only provided the best computing experiences, but it has also continued to produce creative and innovative range of products. Strategic Objectives Apple outlines three major objectives which are in line with their vision and mission statements 1. “To keep creating and releasing computers and consumer electronics that are more user-friendly” 2. To open more stores and international locations to increase sales. 3. Innovation Apple’s guiding principles which are innovation strategies could be looked at as their strategic strategy to meet their objectives. Bruce MacVarish outlines points that guide their innovative strategies, they include: 1. Don’t follow your Customers; lead them- Apple believe that a customer’s should be shown a superior alternative in the products they want rather than waiting for them to tell you what they want. 2. Temper engineering with art; they design the products in a creative way. 3. Focus on the few to sell to many – It narrows customer’s tastes rather than satisfy every taste a customer has. It seeks to sell a few products in each category. 4. Be your own tough critic – it seeks to beat itself rather than beat their competitors. This way they not only beat themselves but they beat their competitors too. 5. Clear your mind and “Think Different” 6. Build your innovation infrastructure and fortress 7. Cultivate your “Creatives” – the Innovation Elite 8. Institutionalize your “Creatives” 9. Innovation is not Invention 10. Organize Something (MacVarish, 2009). Stakeholders A stakeholder is “any group or individual who is affected by or can affect the achievement of an organization’s objectives. Stakeholder theory contends that each legitimate person or group who participate in a firm’s activities participate to gain benefits. It also argues that the priority of those stakeholders’ interest is not self-evident. Jones et al (2007) says that the theory views a company as a pool of internal and external groups. The groups includes; employees, shareholders, creditors, suppliers, customer among others. The theory involves the relationships between the company’s management and stakeholders. The interests of the stakeholders move away from the firm’s interests and from each other’s interest. Companies use three attributes; to prioritize stakeholders, that is, power, legitimacy and urgency (Rawlins, 2006). The dominant stakeholders have legitimacy and urgency. Dangerous stakeholders have urgency and power, but no legitimacy for example activist groups and the media. Definitive stakeholders have the 3 attributes, they have the highest priority. Apple Inc.’s stakeholders include its shareholders, employees, the management (board of directors), customers, supplier’s trade unions, the local communities and finally the future generations. Apple employees, shareholders and the management are the definitive stakeholders of the company. Should any of their interest shift from obtaining the company’s objectives, the company lags behind in its mission and vision. Using the ethics matrix, the way Apple responds to all the stakeholders is guided by three ethical principles; wellbeing, autonomy and fairness. The table below shows the stakeholder demands addressed by Apple’s strategic objectives. Type of stakeholder Stakeholders Their demand on Apple How Apple’s objectives satisfy the demand Definitive Management Government Regulators Board of directors Transparency; it entails fully disclosing of financial and non-financial information Apple’s objectives do not deal with this. It is known for its secrecy especially about its future plans. Dominant Employees Unions Suppliers Accountability; effective overseeing of the management through appointing independent and able governing body. This is done by incorporating the innovation strategies as outlined by MacVarish Consumers Retailers Distributers Fairness; the investors should be equally treated By leading their consumers not following them. It also seeks to make products that are user friendly. Dangerous Community Media Special interest groups Responsibility; making sure the company satisfies its role to the society Steve jobs promises a more transparent handling of issues especially the recent statement on how to deal with toxic chemicals on their products. Strategic Implementation Combining the vision and the objectives plus implementing the strategy results in achievement of the strategic plan. Implementation of a strategy is operations-oriented which makes things happen (Koch et al, n.d). Apple has done this by equipping their staff with the skills and expertise needed. It also builds and strengthens the internal competitive capability which as earlier discussed Apple aims at “beating” itself. Its greatest asset is the innovation strategy which ensures their products gives their customers superior alternatives. The Apple Inc. culture and work climate ensures that there is maximum strategy execution. There has not been a mismatch between the level of environmental volatility and the top management’s strategic focus. Strategic evaluation The balanced score card analysis which means that improved strategic performance nurtures better financial performance. According to Khan et al (n.d), financial indicators of a company shows the results of decisions made in the past and other activities the organization has been involved in. Apple is acclaimed as one of the leading company in the world in economic returns. Through their innovation, they have continued to dominate the market and fulfil its mission of “bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings”. However, Apple is considered very secretive since it does not talk about their future plans. For example, its stakeholders; employees, shareholders and customers have made demands to know the company’s standing at removing toxic chemicals in their products. In retaliation to this, Steve Job promised that the company will implement a policy where they share the company’s future plans to its stake holders. A continued program of checking the company’s standing against the set objectives ensures that the company does not drift from the vision and mission of the company. References Apple Corporate Website. Frequently Asked Question. Available at: investor.apple.com/faq.cfm?faqSetID=6 Fremond, O. (2000) The role of shareholders. Available at: http://www.oecd.org/daf/corporateaffairs/corporategovernanceprinciples/1930657.pdf Huzefa, A. Gaurav, V. and Singh, H. (2009). A strategic analysis of apple corporation. Indian institute of planning and management. Hyderabad Khan A. Brief Description of World’s Most Admired Company. Koch, C. Chesire, A and Ash, M. (n.d). Charting a Company’s Direction: Vision and Mission, objectives and Strategy. Available at: http://highered.mcgraw-hill.com/sites/dl/free/0078112729/898107/Chapter02.pdf MacVarish, B. (2009). Guiding Principles of Innovation. Available on: http://www.brucemacvarish.com/2009/08/guiding-principles-of-innovation-at-apple1-dont-follow-your-customers-lead-themapple-tends-to-place-less-emphasis-on-evide.html Ramosaj A., Grezda D., Latifi N. & Batalli V. Apple Inc. Available at: http://www.scribd.com/doc/52991178/1/Business-Mission-Vision Rawlins, B. (2006). Prioritizing stakeholders for public relations. Institute for Public Relations Read More