Introduction

Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment. It is a disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it, with a focus on the future. Effective strategic planning articulates not only where an organization is going and the actions needed to make progress, but also how it will know if it is successful. History Apple Inc: Apple Inc formerly known as Apple Computer Inc which provides corporate Server, MAC OS Systems and Operating System. Apples core product lines are the iPhone, iPod and Macintosh System. Steve Jobs and Steve Wozaniak, The founder of Apple has created the Apple Computer on 1st April 1976 and integrated in the company on 3rd January 1977, in Cupertino California. It has driven the Computer manufacturing market for more than two decades. Mr. Steve Jobs who was expelled in 1985 was return as CEO of the APPLE Inc in 1996 with new Ideas and corporate philosophy. With introduction of successful IPod Player in to 2001 Apple has again proved itself as a Market leader in consumer electronics. Latest era of extraordinary success of the company is in iOS based Apple products like I Phone, IPod slim, I Pad and now I Pad 2. Now a days Apple is a biggest technology corporation in the planet with the profits of more than $65 billion. It has about 49,400 employs all over the world. Fortune Magazine most Admired company in United State in 2008 and in the world in 2008, 2009 and 2010. Apple has over 240 Store all over the world and the bifurcation of these store in different countries are as below. Vision Statement of Apple: Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.

Mission Statement of Apple: Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. http://www.corporateir.net/ireye/ir_site.zhtml?ticker=aapl&script=1800&layout=7#corpinfo2

TASK 1: THE EXTERNAL EVNIRONMENT AFFECTING AN ORGANISATION 1.1 Importance of external factors affecting an organisation In an organisation there are several factors influence the growth and performance of the organisation. There are some factors which are influence the organization can be controlled by the management but some factors are beyond the organisation management control. The factors which are controlled by the organisation known as internal factors and factors which are beyond the management control known as external factors such as Political, economical, social and technical factors. For example apple iphone 4 technology factors affected their business because of the technological problem, FSA regulatory change made on impact to several banks with penalties and fines because of their regulations in not obliged by the financial institution. Therefore the external factors are more important to the organisation performance.

1.2 Needs and expectations of stakeholders of an organisation It is important for Apple Inc to analysis the expectations of different stakeholders and the extent to which they are likely to seek influence over Apple strategies. Investor/Shareholders maximum return of profit of their investment, annual

dividends or increase share price Managers responsibility Distributors On time and reliable deliveries Good salaries and bonuses, facilities, status, power, status and

Suppliers Customers

Payment of their supplies on time and good margin of their products Customers always looking low price with good quality and some

discounts and benefits Employees Employees looking good rate of wages, bonuses, incentives, holidays

and job security Government Government drawing taxes of each private organization according to their profitability Financiers Society Interest payment and loan repayment Social responsible actions and positive attitude about environment

1.3 Analysis of major changes taking place in the external environment that will affect strategy

TASK 2: REVIEW EXISTING BUSINESS PLANS AND STRATEGIES OF AN ORGANISATION 2.1 Analysing the effect of current business plans There are various tools to analysis the effect of current business plans. Some of them are described as under: I. BCG matrix : The famous BCG matrix classifies a firms product portfolio into four strategic business units (SBU): Stars, Question Marks, Cash Cows and Dogs. Within each SBU, there are again four potential strategies to take: build market share, hold market share, harvest (reduce investment) and divest (phase-out).

Star: This would be the iPad because it has a high share of the rapidly growing tablet market. As the iPad is in its growth phase of the product life-cycle, the product is beginning to lose its first-mover advantage as other manufacturers begin to launch their own. Hence, Apple should invest heavily into marketing the iPad in order to grow sales to maintain their share (sales need to grow at the same rate as overall market sales to maintain market share within a growing market). But in the future, when market sales become stable, Apple should harvest the product to turn it into a Cash Cow to fund other SBUs.

Question mark: Despite Apples best attempts, PCs with Microsoft operating systems still continue to dominate the PC market. Much of this is down to strong business-to-business marketing and high switching costs for businesses and consumers, alike. Apple could potentially used three strategies for their Mac software: 1) Divest this could allow Apple to devote more time on their most profitable products, but it is highly unlikely as the Mac is part of the firms brand identity. 2) Build Apple could potentially invest lots and lots of resources to try to turn Macs into a star, however even with Apples huge cash pile, it is questionable if it is even possible to beat Microsoft-powered PCs. 3) Hold this is the most likely strategy. Apple will probably continue to develop new Macs and support existing customers, however investments will be kept at a minimum and be target towards the iPad.

Cash Cow: Apples source of steady flows of income is clearly the iPhone and the iPod; both the MP3 and mobile phone market have reached saturation and Apple has a high share of both these markets. As the iPod is reaching the decline stage of the PLC, Apple is beginning to harvest the product. That is, slowly reducing investment in marketing iPods to increase their profitability; by generating more cash, further investments can be made into question marks or stars. In the future, Apple will probably only maintain their market share of the iPhone. It is a highly profitable to generate sales from existing customers from upgrades, which can be almost guaranteed after a consumer invests heavily in downloads from the app store. Dog: Lastly, Apple TV a device that allows media files in iTunes to be played on a TV has never really caught-on. By launching a second and third generation, Apple have shown they are committed to building sales. However, unless the overall market for digital media receiver grows, it could be more profitable to divest the product.

SWOT Analysis of Apple Inc: Although participation in such activities may add value, they may not be a source of competitive advantage. Ultimately, the value, rarity, inimitability, and/or organization (VRIO) of an activity or resource determine its sustainability as a source of competitive advantage. Within this context, we can identify a firms strengths, weaknesses, opportunities, and threats (SWOT). In SWOT analysis Strength and Weaknesses are depends on Internal factors and Opportunities and Threats Depends on External Factors of and Organization. SWOT analysis is useful in decision making about the organization going for any new or existing project. Apple SWOT Analysis Strength: ITunes Music Store is a excellent source of revenue, especially with the iPod and the accessibility on Windows platform. Apple Computer are expert in Developing own software and hardware. Apples niche audience provides the company with some lagging from the direct price competition. Giving a face-lift to desktop and notebook lines. Technology can be used to improve product awareness and sales. Low debtmore manoeuvrable. Apple Computers have good brand loyalty. Strong Research & Development Department. Weaknesses: Weak relationship with Intel and Microsoft. Weak presence in business arena. The product life cycle of Apple products are very small for that reasons revenues are more depend on launch of new products and services. Weak presence in markets other than education and publishing. Slow turn around on high demand products. Apples market share is far behind from major competitor Microsoft.

Opportunities: Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple Large population (Gen X&Y) which are extremely individualistic and name brand conscious. The ties of apple other companies are weak, Apple can develop good relationship for joint ventures Downloadable music and MP3 players are highly marketable. The online sales of computer are increasing with rapid speed. The laptop market growth is high; Apple Computers should focus to develop new models to cater the need of customers. Threats: Companies not seeing Apple as compatible with their software. Apple facing strong competition from Dell, HP, Sony and Toshiba in laptop segment. Downloading free music from other online source without paying cost is common it may impact the iTunes sales. Apple software, Cell phone and hardware are expensive as compared to other competitors such as Dell. The long lasting recession may impact the sales of the company due to higher prices of the products and services Microsoft launched Microsoft Vista, Windows 7 which is gaining market share. The switching in technology is very fast
http://writepass.co.uk/journal/2012/12/strategic-analysis-swot-and-bcg-matrix-of-apple-inc/

2.2 Review the position of an organisation on its current market

2.3 Evaluation of strengths and weakness of Apples current business strategies Strengths: 1. Customer loyalty combined with expanding closed ecosystem. While at first Apples closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apples closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apples expanding closed ecosystem and customers loyalty increases firms competitive advantage. 2. Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Companys core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market. 3. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt).Apples financial performance is one of the best among many companies. Company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by interest rates or credit markets. 4. Brand reputation. Apple has a reputation of highly innovative, well designed, and wellfunctioning products and sound business performance. Apple brand is valued at $76.5 billion and was the second most valuable brand in the world in 2012. 5. Retail stores. Apples retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness. Besides, Apples stores are one of the most profitable in terms of sales/ft2. 6. Strong marketing and advertising teams. Marketing is one of the strongest functional areas Apple has. It can sell pricier products, build superior stores (they are more or less built to achieve marketing goals) and advertise their products in a compelling manner.

Weaknesses: 1. High price. Apples products cost much more than its competitors devices. Some critics argue that the price is not justified. When theres such a fierce competition, Apple products price becomes a weakness because consumers can easily opt for similar quality but lower price products. 2. Incompatibility with different OS. The iOS and OS X are quite different from other OS and uses software that is unlike the software used in Microsoft OS. Due to such differences, both in software and hardware, users often choose to stay with their accustomed software and hardware (Microsoft OS and Intel hardware). 3. Decreasing market share. The less market share Apple has, the less it can influence its potential customers and persuade them to jump into using Apples closed ecosystem products. 4. Patent infringements. The firm is often accused of infringing other companies patents and has even lost some trials. This damages Apple brand and its financial situation. 5. Further changes in management. Apple has lost Steve Jobs in 2012 and Tim Cook became the new CEO. Scott Forstall and John Browett (chief of retail) left the company too and this will have an impact on companys management, which, as many think, will be negative. 6. Defects of new products. This is not current Apple weakness but one that jumps out time to time. Some of Apples iPod and iPhone releases had clear faults and thus disturbed sales of the products and firms reputation of superior product performance. 7. Long-term gross margin decline. Current Apples gross margin is one of the highest in the tech industry but analysts fear that due to increasing component prices and competition current margins will not be sustained. Hence, glooming firms future financial performance.
http://www.strategicmanagementinsight.com/swot-analyses/apple-swot-analysis.html

TASK 3: DEVELOP OPTIONS FOR STRATEGIC PLANNING FOR AN ORGANISATION 3.1 Modelling tools to develop strategic options for an organisation

PORTER'S GENERIC STRATEGIES

A competitive strategy arises from the understanding of the industrial structure and the changes occurring in the field. Michael E. Porter developed a model of generic strategies to analyse how a company competes in the market to create and sustain the competitive advantage. Porter's model of competitive advantage has three generic strategies.

Cost Leadership Differentiation Focus strategies A company can achieve higher profit rates over their competitors in either of the two ways: supplying a product at a comparatively lower cost which means cost leadership strategy

the customers are ready to pay a premium price for the product. This is known as differentiation strategy (Grant 2005:241-242). Cost Leadership "Cost leadership is where the company achieves comparatively lower costs than their competitors and competes across a broad range of segments" (Thompson, Martin 2005:287). A company must be able to offer their products at the lowest possible price without making any compromises in the quality of the product. It does not imply that the company has to offer their product at the lowest market price as those products are often regarded as inferior. A firm which focuses on cost leadership strategy will be able to produce higher profit margins by selling more product units. "Cost leadership can be achieved by superior management, concentrating on cost-saving opportunities, minimising waste, and not adding values which customers regard as unimportant to the product (Thompson, Martin 2005:287).

Differentiation "Differentiation is the ability of the firm to provide unique and superior value to the buyer in terms of product quality, special features, or after-sale services" (Porter 1992:37). Even though the firms focussing on differentiation strategy sell lesser product units, they will be able to achieve higher profits as they have more profit margins on the product. Focus Strategies In a focus strategy, the firm concentrates only on a particular or a limited range of market segments. Focus strategy can be used by a company to gain either cost leadership or differentiation. Focus strategy can be subdivided into two:

Cost Focus Focus differentiation

Based on Porter's generic model, the strategies and market segments pursued by Apple and its competitors can be analysed. Apple Based on Porter's model, Apple falls under differentiation strategy. Apple offers a wide range of products in personal computers field like the iMac and iBook product lines for basic computer buyers and PowerBook and G series computers for advanced purchasers. Apple concentrates more on innovative product lines and quality rather than releasing products at lower prices. Apple computers work on Macintosh operating system which is unique in the industry where most others rely upon Windows. Apple has diversified its product range off late through iPods, the success of which has further enhanced Apple's brand identity. None of Apple's competitors have been able to replicate its unique product quality, reliability and design. Because of the differentiation strategy, Apple is able to charge premium prices for their products.

LIST OF REFERENCES

Michael E Porter (1992). The Competitive Advantage of Nations. HongKong: The MACMILLAN PRESS LTD. P37-39. Robert M.Grant (2005). Contemporary Strategy Analysis. 5th ed. Cornwall: Blackwell Publishing. 241-242.

John Thompson, Frank Martin (2005).Strategic Management: Awareness and Change. 5th ed. London: Thomson learning. 287. Ricky W Griffin & Michael W Putsay (1998). International Business:A Managerial Perspective. 2nd ed. Harlow, England: Addison-Wesley. 451, 453-457, 470. Terry P. Harrison, Hau Leung Lee, John J. Neale (2005).The practice of supply chain management: where theory and application converge. New York: Springer Science and Business Media, Inc. 86. Refik Culpan (2002).Global business alliances: theory and practice. Westport: Greenwood Publication Group. 25. Randall S. Schuler, Susan E. Jackson, Yadong Luo (2004).Managing Human Resources in Cross-Border Alliances. London: Routledge. 28-29. John Alwyn Mathews (2006).Strategizing, disequilibrium, and profit. Stanford: Stanford University Press. 80.

3.2 Develop a comparative understanding of activity from Apple in the market

3.3 Create options to form the basis of future organisation strategy Creating options to form the basic future Apple strategy could be Ansoff Matrix.

The Ansoff Matrix

The Ansoff Matrix is a useful tool in developing marketing strategies. We will spend quite a bit of time working with it but the idea is not that this is the only tool out there: the intention is that you see how it works and how it integrates in to making and understanding strategic decisions that then impact on creative decisions. Through your own reading of marketing text books you will encounter many more tools like this which are worth considering in more depth by working through them with examples so they become second nature.

What is the Ansoff Matrix?

This is the Ansoff matrix. Its a classic 22 matrix of the sort that is often used to visualise problems and situations. It has two axes, one for markets and one for products. Each is split into two: Existing and New.

The matrix is useful in showing how an organisation can develop its strategy for its market position and/or its product range.

For example, if you have a product that is selling well to a certain market, how can you grow sales? You could sell the existing product to new markets, sell a new product to existing markets, or sell a new product to new markets. Each of these strategies carries risks and costs, and the matrix helps you work those out.

Apple

Lets look at another example, one which shows how the ideas of penetration, product development, diversification and then market development have worked for Apple.

In 2000, Apple made computers. Those computers sold quite well to a core market, but it was difficult for Apple to extend their reach into other areas such as corporate sales and Windows users.

In 2001 they entered the MP3 player business. This was risky but the product appealed to existing Markets. Before long it also began to appeal to Windows users too and that in turn had the effect of making many people consider an Apple Mac as their next computer.

In 20067 they entered the phone market. This was very risky because even though there would have been some overlap between existing Markets and the product, essentially all the Markets were new because the phone market was mature. The vast majority of potential iPhone buyers already had a phone.

This time the brand, Apple, helped sell the product as did the way it was pitched: not so much as a phone but as a mobile device. It was easier to use than existing phones, and wasnt seen as disposable. The knock on effect of the iPhone has been that sales of the Apple Mac have increased particularly the laptop range and Apple is now welcome in companies that previously were Windows-only. So the effect has been to increase sales of computers to a wider audience! Note that in this case were using the Ansoff matrix to explain something after the event. The trick is using the matrix to make sense of a current situation, and it is particularly useful in explaining it to others to help them see why you have made a particular decision. It is not the answer, only a tool for helping find or explain the answer.

TASK 4: DEVELOP A STRATEGY PLAN FOR AN ORANISATION 4.1 A suitable structure that would ensure participation of all stakeholders Stakeholder analysis and stakeholder is suitable structure that would ensure participation of all stakeholders in Apple. Stakeholder Mapping Level of interest Low High A GOVERNMENT B SUPPLIERS C CUSTOMER D

INVESTOR Low Power High Government: Government has low level of interest by the change Apple brought into service. Suppliers: Investor who put the money in Apple has high level of interest by the change has happened. Customer: Customer has low level of interest of what Apple has brought the change. Investors: Supplier as internal stake holder has high level of interest of what change has brought into Apple. Stakeholder analysis: Stakeholders are those people who have legitimate interest in Apple. There are six steps of analysing the stakeholder in Apple. Those steps are Step 1.Identify stakeholders: Identifying the stakeholders is the first step of analysing the stakeholder in Apple. The stakeholders are in Apple is Customers, suppliers, Buyers, Employees & Managers, Community, Government, and Media. Step 2.Prioritise Stakeholder: Prioritise the stakeholders in Apple according to their attribution is very important element of bring the development in Apple. It is an effective process of gradual involvement. Step 3.Develop an engagement strategy: One of the important element of stakeholder analysis is to develop an engagement strategy of stakeholders with Apple. It brings the commitments and individual duties belong to individual into practice. The methods of involvement could be: Meetings, presentations, Group facilitation, Delegating, develop and share a change plan. Step 4.Map their profile: Mapping their profile according to their level of influence and Level of interest is significant element of analysing stakeholder profile. Step 5.Optimise their support: Stakeholder analysis is the effective way of involving Stakeholders into direct and indirect approach of Apple activities. Optimising their support

means, the support is provided by stakeholder is to utilise them in the best possible way. Utilise the support of stakeholders resources. Step 6.Monitor changes: Changes may come according to the demand of time. It is vital to monitor the changes may come potentially.

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4.2 Reviewing potential option for a strategy plan Developing the criteria for strategic management plan is a form of various sources. The reviewing options are to identify the effect of management strategy in Tesco. The options consist of Attractiveness to stakeholder: The criteria that involve the stakeholder must have the attractiveness to the stakeholder. It should reserve the interest of Stakeholder and to be attractive to them Feasibility studies: Tesco has Human resource management of 472,000 people work for Tesco. It has got Technological approach of applying the self service till and online shopping service for the consumer. Effects on Market position and share: The criterion of making the potential options for strategic plan is to assess the effect on present market position (30.3%) and the share it has. Risk assessment: The option for strategy plan is to identify the potential risk and assess it properly which may arise anytime during the strategic plan. Cost benefit analysis: Commercial Cost benefit analysis is a process of measuring, comparing and identifying the commercial cost that involve the investment in return of benefit in Tesco.

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4.3 Construct an agreed strategy plan that includes resource implications

TASK 5: EXAMINR FACTORS AFFECTING AN ORGANISATION STRATEGY PLAN 5.1 Compare core organisation values with the current business ojjectives of an organisation