Issues in Strategic Management Strategic Audit Exercise - Essay Example

Download file to see previous pages Apple experienced good success during the late 1980s but after that there were testing times during the 90s. John Sculley, previously the CEO joined Apple in 1983. Sculley came to Apple with the valuable experience of the 'Cola-War' between Coke and Pepsi. Steven Jobs, more of technology oriented initially found this approach little weird, but later gave Sculley a free hand. Gradually, over the years, Apple has succeeded in regaining the lost glory to a great extent. Feb 27 edition of Business Journal (2007) points out that the ipod helped in this transformation process with the sale of over 90 million ipods since its launch in 2001. After this successful parade of its ipod, Apple has now taken up another ambitious product called 'iphone'. This gadget is an integration of an iPod, a mobile phone, a portable computing machine and a digital camera. With touch controls and an internet communication device the iphone is an innovative product from the armory of Apple. Slated for a full-fledged launch in June 2007, iphone also has the Wi-Fi connectivity and Bluetooth features and it is based on quad-band GSM + EDGE technology. Now it is to be seen how Apple can mobilize its resources to convert this venture into another success story. Over the years Apple has also established a dependable value chain with strong links with its suppliers and distributors, but the spat with its arch rival Microsoft will not allow Apple to take things lying down, it'll have to be on the path of innovation with regular inputs from market. Though the iphone promises to be a cult item that may influence the industry to follow suit, yet there are certain finer edges which need to be smoothened before Apple expects an ipod like revolution. For example ipod became such a craze owing to its compatibility with the most popular music format-MP3, and the most popular operating system-Windows. But it at the moment industry analysts are keenly watching the verbal dual between Apple and Microsoft. On the one hand Apple has issued a warning about MS Vista being a security threat to the ipods while on the other hand Microsoft chief Bill Gates underlined the importance of the 'software part' when asked for his views on Apple iphone. He sought to downplay the technological advancement and innovative features that Apple has put in it. This dual promises more fireworks in near future.
Resources Audit
Such an audit is done to identify different types of resources available to the company. Some of the resources that Apple Inc. could mobilize for carrying out its business are;
Financial resources: The Company has been able to post a record revenue billion and record net quarterly profit of $1.0 billion, or $1.14 per diluted share for its fiscal 2007 first quarter ended December 30, 2006 (Apple, 2007). During the operations Gross margin was 31.2 percent, up from 27.2 percent in the year-ago quarter. What is the source of strength is that the International sales accounting for 42 percent of the quarter's revenue. The very fact that the company has been able to sustain the onslaught of Microsoft and IBM provides an insight into the strength of its financial resources. Company's consistent track record of dividend indicates that Apple values its ...Download file to see next pagesRead More