Chapter Seven
(Making Decisions)
Application Case:
“Apple Inc --- Failing and Succeeding”
1) How would you classify each of Apple’s two decisions --- programmed or nonprogrammed? Explain your answer.
The decision regarding Apple’s choice to not license their operating system and software to other computer companies was a non-programmed decision because the decision was made solely on the fact they were the first (pioneer) to introduce an operating system and thought that they were superior with their command in a premium market making their non-programmed decision uncertain of what the outcome would be making the consequences unknown as well.
Apple’s decision to introduce the “iPod” while adding a Window’s version of “I-Tunes” was
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The decision(s) on not to license their software, may have influenced its success by: Degree of Certainty, Imperfect Resources, Internal Environment, and External Environment. If the “Degree of Certainty” was risky then they would have had a better knowledge of the risks and be sure of the consequences to each alternative. Risk at least provides a certain level of probability that success outweighs the degree of risk that is involved. Allowing that, they had all the ideal resources at such time to collect information about any possible problems, than they might have had the opportunity to make a different choice or allow for one to have alternative solutions. Internal factors that might have influenced the success of Apple’s first decision could have been completely different if they would have had the support from everyone within the organization. I believe instead of leaving the decision to license their software should have been left to management (who also gathered input/suggestions from their subordinates) such as the CEO’s vs. the decision be placed solely on the engineers. Apple would have seen better results working with groups who could have offered input and raised questions allowing; reduction in any uncertainty. In order to better the product or service the external environment plays a huge part in letting business’s know what they expect and even offer suggestions on improvements allowing a company to hear a variety of responses that could have
Revenues are recognized in a net basis and only commissions they retain from each sale are reflected under the company’s financial statements.
With the creation of a company like Apple, room for innovation and renovation was always possible. The free enterprise system allowed room for great financial success and greatly appealed to consumer demand needs or wants. Their very first launch of the first PC and Ipod MP3 Music Player grasped the attention quickly in the consumer demand market. His technology skyrocketed as he innovated goods that were advances for the people in their daily lives. Apple was greatly set up with their great alliances in the enterprise industry with companies such as: IBM, Cisco, SAP, JAMF, etc. Apple also includes OS (operating
It is quite obvious from the case that Apple is facing many obstacles. It has way more competitors today than it had two or three decades back. Part of it has to with the highly globalized environment that companies are operating in these days. Another major obstacle is the technological environment which is rapidly changing compared to the one that Apple experienced when it first emerged on the global scene. But the most important of it all seems to be a mental thing. It appears that Apple, over a period of time, developed a rigid mental model that related success of Apple with sheer innovation. This same mental model has lead to demise of many companies in the past, Xerox Corporation being the prime example of that.
Firstly, the primary responsibility of the production is to produce goods and service using all the inputs. This function in Apple Inc is responsible to produce both hardware and software of Apple.The whole production process includes design, quality control, and the philosophy underlying the adopted quality control practices as well as research and development programs to release new Apple products or upgrade existing Apple’s product into something more innovative and advance. For example, Apple is releasing iPhone 5Se which has more unique features compare to the previous iPhone
Apple is a global company represented in many parts of the world, but born in the United States by computer wizards by the names of Steve Jobs and Steve Wozniak who founded the company back in 1976 (Capon, 2008). The organization deals with the design and sale of computer hardware, software and offers tech support to its customers. Examples of the hardware the company manufactures and sells include mobile phones, personal computers, iPads, tablets and iTunes with associated brands, like the MacBook and iPhones that represent Apple’s driving force towards its success. It is recognized as a brand leader in consumer electronics by the world in terms of quality and customer satisfaction and despite the wide product range, Apple manages each product in a distinct way that is a single business unit (Mittan, 2010).
In his philosophical ideals, the goal of government is to enforce the law of nature and provide a judicial system to clear up the disagreements between citizens. Locke believed that by living in a country you consent to the social contract that exists, but the government is unable to make any changes to the contract without the consent of the people. If the citizens believed that the government is not holding up its end of the arrangement then they have not only the right, but the obligation to put in a place a new government that will abide by what the people want. Going off of this philosophical stance, Apple has every right to disobey the government. In this view, the government is overstepping its bounds by attempting to force Apple to provide a new software that harms the company and its’ customers. It was John Locke who once wrote that “no one ought to harm another in his life, health, liberty, or possessions”. Therefore, since this would be harming Apple and their customers’ liberty and possessions the government had no right to attempt to force the tech-giant to assist
The multi billion-dollar corporation, Apple Inc., designs and manufactures some of today’s highest technological gizmos and gadgets. Among their best known products are the Apple and Macintosh computers, iPods, iTunes, iPhones and iPads. Apple is one of the most powerful and influential high tech companies in the world. The success of Apple Inc. stems from the innovation and visions of co-founder and entrepreneur, Steve Jobs, the excellence of the stylish, user-friendly products, and the ability to create innovative products that consumer’s desire.
Apple, Inc. (APPL) operates under a fiscal year accounting period. This period consists of the 52 (or 53) week period that ends on the last Saturday of September. September 25 was the specific date observed as the end of the annual reporting period for 2009 and 2010. Every six years Apple adds an additional week in its first fiscal quarter in an effort to realign its fiscal quarters with calendar quarter.
Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.
Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government.
Apple Incorporated, formerly known as Apple Computers Incorporated, and more commonly known just as Apple, has lead the way in technology and innovation for consumer electronics with their slender storage capacities, vibrant displays, and incredible touch screen products. When they first started, their focus was more on personal computers for customers, but as the company has aged, so has their focus expanded towards this idea of consumer electronics as a whole. Seeing as they now offer popular devices including, but not limited to, computers (Mac Book), home theater (Apple TV), phones (iPhone), tablets (iPad), and media (iPod), it can clearly be
It is beyond all doubt that Apple Inc is one of the most successful and well-known companied all over the world nowadays. What’s more, the company is considered to be the leader of the industry The Apple products are of high quality and in high demand on all the markets. Apple services and stores are the gold standards for all the followers and niche players of the industry. Moreover, the majority of Apple customers are extremely loyal to the brands. Once they started using its high-technical products they keep doing it. At the same time the market share of the company is increasing constantly. Probably all the competitors are questioning what is the key to Apple Company’s success. It is important to note that the whole strategy determines the success of the business and the strategic analysis of the company can help to identify the main criteria. Thus, the object of the research paper is to develop a strategic analysis of Apple Inc, including its internal and external environment.
Apple Inc. has launched its iPhone in January 2007 (telegraph) as a new product in the market with latest technology and it was the first multi touch smartphone adding the feature of iPod and received an overwhelmed response by selling 270000 units. It had created a new record for a new company like apple, iPhone had laid a stepping stone for the success of Apple and till this time iPhone is the best seller product of Apple Inc. during first quarter of 2016 apple has sold over 74 million iPhones worldwide. (statista, 2016).
Some of the weaknesses that Apple was able to pinpoint was their high prices and incompatibility with different operating systems. Since Apple already has a great deal of loyal customers Apple could combat this weakness and provide its customers with a reasonably priced compatible product, thus keeping and retaining more Apple Customers.
Apple strongly followed its beliefs, model strictly. They followed differentiation as a main agenda while developing their products and also vertical integration.