Beruflich Dokumente
Kultur Dokumente
EXECUTIVE SUMMARY
After going thick on the things, now time is to make a complete picture. While making a product a SKU (stock keeping unit) of the shop retailers think about the GMROI (gross margin return on investment) and they promote the brand which provides them highest. They expect return in the form of profit margin, company schemes, window display and reference of the shop. Among these, company schemes make the difference and are the highest sources of motivation after profit margin. Retailing demands a constant push from the company. Marketer needs to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behavior because retailers cant help quality and price. It is only up to manufacturers to deliver what consumer wants. I need to stress on it because 58% retailers said that it is demand why they sell Britannia. 61% agree that at retail shop it is brand popularity, which determine the purchase of biscuit. There is a greater need to understand the retailer behavior. Considering them as a team, working for the company may help them to be attached to the company. There should be a feeling of belonging to the company in inner of the retailers. This can be done by setting values club for retailers so that they may exchange views with the company and help in understanding consumer behavior.
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Managers must also ask how to make such advantages sustainable, instead of highly temporary, in the marketplace. That is: How can we create competitive advantages in the marketplace that are not only unique and valuable but also difficult for competitors to copy or substitute? Ideas that work are almost always copied by rivals immediately. In the 1980s, American Airlines tried to establish a competitive advantage by introducing the frequent flyer program. Within weeks, all the airlines did the same thing. Overnight, instead of competitive advantage, frequent flyer programs became a necessary tool for competitive parity, not competitive advantage. The challenge, therefore, is to create competitive advantage that is sustainable. Michael Porter argues that sustainable competitive advantage cannot be achieved through operational effectiveness alone. Most of the popular management innovations of the last two decades-total quality, just-in-time, benchmarking, business process reengineering, outsourcing all are about operational effectiveness. Operational effectiveness means performing similar activities better than rivals. Each of these is important, but none led to sustainable competitive advantage, for the simple reason that everyone is doing them. Strategy is all about being different from everyone else. Sustainable competitive advantage is possible only through performing different activities from rivals or performing similar activities in different ways.
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purpose of strategic choice; and second, the fact that the range of variables is likely to be so great that it may not be possible or realistic to identify and analyses each one. (b) The resources of the organization: just as there are outside influences on the firm and its choice of strategies, so there are internal influences. One way of thinking about the strategic capability of an organization is to consider its strengths and weaknesses (what it is good or not so good at doing, or where it is at a competitive advantage or disadvantage, for example). These strengths and weaknesses may be identified by considering the resource areas of a business such as its physical plant, its management, its financial structure, and its products. Again, the aim is to form a view of the internal influences -- and constraints -- on strategic choice.
(c) The expectations of different stakeholders: The expectations are important because they will affect what will be seen as acceptable in terms of the strategies advanced by management. However, the beliefs and assumptions that make up the culture of an organization, though less explicit, will also have an important influence. The environmental and resource influences on an organization will be interpreted through these beliefs and assumptions; so two groups of managers, perhaps working in different divisions of an organization, may come to different conclusions about strategy, although they are faced with similar environmental and resource implications. Which influence prevails is likely to depend on which group has the greatest power, and understanding this can be of great importance in recognizing why an organization follows or is likely to follow, the strategy it does.
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Together, a consideration of the environment, the resources, the expectations, and the objectives within the cultural and political framework of the organization provides the basis of the strategic analysis of an organization. However, to understand the strategic position an organization is in, it is also necessary to examine the extent to which the direction and implications of the current strategy and objectives being followed by the organization are in line with and can cope with the implications of the strategic analysis. In this sense, such analysis must take place with the future in mind. Is the current strategy capable of dealing with the changes taking place in the organizations environment or not? If so, in what respects and, if not, why not? It is unlikely that there will be a complete match between current strategy and the picture which emerges from the strategic analysis. The extent to which there is a mismatch here is the extent of the strategic problem facing the strategist. It may be that the adjustment that is required is marginal, or it may be that there is a need for a fundamental realignment of strategy.
are now the most important to concentrate on; is it possible to maintain a common basis of trading across all the different countries? Is it necessary to introduce variations by market focus? All of these considerations are important and need careful consideration: indeed, in developing strategies, a potential danger is that managers do not consider any but the most obvious course of action -- and the most obvious is not necessarily the best. A helpful step in strategic choice can be to generate strategic options.
Strategic options can be examined in the context of the strategic analysis to assess their relative merits. In deciding any of the options a company might ask a series of questions. First, which of these options built upon strengths, overcame weaknesses and took advantage of opportunities, while minimizing or circumventing the threats the business faced? This is called the search for strategic fit or suitability of the strategy. However, a second set of questions is important. To what extent could a chosen strategy be put into effect? Could the required finance be raised, sufficient stock be made available at the right time and in the right place, staff be recruited and trained to reflect the sort of image the company wants to project? These are questions of feasibility. Even if these criteria could be met, would the choice be acceptable to the stakeholders? (c) Selection of strategy: This is the process of selecting those options which the organization will pursue. There could be just one strategy chosen or several. There is unlikely to be a clear-cut right or wrong choice because any strategy must inevitably have some dangers or disadvantages. So in the end, choice is likely
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to be a matter of management judgment. It is important to understand that the selection process cannot always be viewed or understood as a purely objective, logical act. It is strongly influenced by the values of managers and other groups with interest in the organization, and ultimately may very much reflect the power structure in the organization.
Strategy implementation is likely to involve resource planning, including the logistics of implementation. What do the key tasks need to be carried out? What changes need to be made in the resource mix of the organization? By when? And who is to be responsible for the change? (b) Organization structure and design:
It is also likely that changes in organizational structure will be needed to carry through the strategy. There is also likely to be a need to adapt the systems used to manage the organization. What will different departments are held responsible for? What sorts of information system are needed to monitor the progress of the strategy?
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(c) Managing strategic change: The implementation of strategy also requires managing of strategic change and this requires action on the part of managers in terms of the way they manage change processes, and the mechanisms they use for it. These mechanisms are likely to be concerned not only with organizational redesign, but with changing day-to-day routines and cultural aspects of the organization, and overcoming political blockages to change.
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Apple Inc.
Introduction Apple Inc. was previously known as Apple Computers Inc. is an American based multinational company. It designs and manufactures software products. The founders of Apple were Steve Jobs, Stephen Wozniak and Ronald Wayne. This giant American conglomerate was established in Cupertino, California in the middle of the Silicon Valley on April 1 st, 1976 and incorporated on January 3; 1977. This organization is among the Fortune 500 companies. (Young & Simon, 2005)
PHOTOS
The nature and scope of this organization is to create innovative and tech savvy hardware and software which are unique, stylish and very functional at the same time. The companys best known hardware products are Macintosh computers, ipod and the latest one iphone. In software segment MAC OS X operating system, iTunes media, life a suite of multimedia and creativity software, Final cut studio for audio and film industry. It has more than 200 retail stores in eight countries and an online store where all apple hardware and software are sold online. (Cruikshank, 2005)
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This project on Apple Inc is highlighting the founders, foundation, products of the company, Its PESTEL and SWOT analysis and some other. It will show the success of this company and about its strategies adapted to overcome tough competition.
There are some authors who have compiled a mission statement for apple like 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. (Freiberger & Swaine, 2000)
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2. Apple value:
Empathy for customers and users, Achievement and aggressiveness, Positive social contribution, Innovation and vision, Individual performance, Team spirit, Quality and excellence, Individual reward and Good management. (Wozniak, Smith, 2006)
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1)
Previously the staff of apple were ill-informed about there products so, in order to eliminate this they created stores strictly for apple products. By doing this they have created a platform for apple products lover to assemble and look into detail manner about the products. The dcor of the store is very friendly where they can experience apple products and
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2) Complete solutions: All the apple products compliment and complete each other. Like for an ipod the music files can be downloaded via iTunes as most of the software used is produced by apple, so in this way they have a complete control over their products and users need not hunt other places. 3) Are you a Mac? Im a Mac campaign was a huge hit. As apple is a very hip brand and through this campaign it made the apple users feel that they are young and smart as they are Mac users. 4) Varied products: As apple is an expensive brand they bring iPods and iPhone at an entry level with a bit low cost so as to attract new consumers to try apple products. If the new pool of users tries their new products then in future they will try to buy apple computers too. 5) Proprietary funds: Apple products are not much compatible with other systems if customers want to change his/her brand. As many iTunes purchased are encoded with a Fairplay DRM (digital rights management) technology. Except for a
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6) Media fodder: Media is always behind apple as apple makes it easy for them and bloggers love to write about apples leaked rumors like its iphone online store shut down, so by creating this media frenzy apple is always on its customers mind. 7) Education sales: Launching its products in schools and universities they make the classrooms into showrooms. By creating this early exposure, it captures customers before they even know that they are customers. 8) Products that deliver: Apple strictly considers its customers needs and designs all its products by a strong research process into it. This makes its customers hook back to this brand and in future buy the same brand. 9) Outsourcing unpleasantness: Using apple products involves less interaction with the company due to least problems faced while using apple products. So in case of iphone they could have made such errors so they allowed AT&T to handle the service.
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Almost all the apple products have the same basics design so the users who are already using apple have a fair idea of what the new product will be so that they can easily adapt to new products. 11) New innovations:
Apple product designs are consistent but its portfolio is not so, instead it keeps on innovating. It allows customers to install its products in there living rooms and in the pockets as well. 12) Attractiveness:
From packaging to designing they make everything look attractive, accessible and colorful with smiling icons, so as to make to its customers remind every time they use an apple product. (Kaplan & Norton, 2004)
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4. CULTURE
Apple has a tradition of felicitating scientists and mathematicians. There logo of a half bitten apple. Apple logo is for giving respect to Sir Isaac Newton for inventing the law of gravity and the half bitten apple is for the mathematicians Alan Turing who committed suicide by eating an apple which he had laced it with cyanide. He was regarded as on of the fathers of computers. The companys attire is very casual enabling employees to work in a fun environment. There culture is to be unique and to be innovative with sleek and stylish design and very functional. This culture has gained global acceptance.
5. PESTEL Analysis
Political: Apple Inc started as a start up by Steve Jobs and Steve Wozniak initially so they had to face a lot of problems regarding there company registration and other paper works. Today Apple lists at NASDAQ as APPL and this firm has strong rivalry partners like Microsoft, IBM and Google so there share prices clash against each other (The New York Times, May, 2007) the heavy taxes at US and UK are a major block age. Initially apple launched its much awaited iphone and then Google launched an iphone too. In political aspect apple had a lot of financial turmoil so the founder Steve Jobs was asked to resign and later on again in late 1997 was asked
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Lawful: Apple Inc does all its operations under the US Trade Legislation guidelines. In 1986 the companies wasnt enjoying a good time due to many legislative failures. Then in 1993 the company was losing acceptance for which in 1997 Steve Jobs the founder was asked to join as the CEO of the company. There were many break downs in the corporate affairs of the company with many cases filed against the company as they refused to accept and adopt the new standards set for manufacturing software and hardware as they were creating their own products.(Simon,2007)
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SWOT Analysis
Strength
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
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Weakness
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 Forestall 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.
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Opportunity
1. High demand of iPad mini and iPhone 5: iPad mini sales will increase Apples market share in the tablet market and, will strengthen firms competitive advantage. 2. iTV launch: iTV launch will support Apple TV sales and the products ecosystem. 3. Emergence of the new provider of application processors: Samsung, the main Apples competitor, is also the only provider of application processors for Apples products. Apple has to find a new source for the component but could not find a suitable one yet. Nonetheless, new manufacturers with superior engineering capabilities are arising and its just a matter of time, when Apple will seize upon the opportunity of being less dependent on its direct competitors.
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Threats
1. Rapid technological change: One of the most severe threats Apple and the other tech companies are facing is rapid technological change. Companies are under the pressure to release new products faster and faster. The one that cannot keep up with the competition soon fails. This is especially hard when a business wants to introduce something new, innovative and successful. Apple was able to
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hidden secrets as apple is bloogers favorites topic so they go for that extra mile to find confidential facts as recently 19 year Harvard student leaked some facts of the apple for which apple later on prosecuted the student. Since
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CONCLUSION
Over the past 30 years Apple Inc has amplified from computer design to developing consumer electronics. The company was started by Steve Jobs, Steve Wozniak, and Ronald Wayne in the 1970s. Tim Cook is the current CEO of the company. It uses different business strategy. This means that all employees & departments work together in the creation of their product. What we found to be the most interesting about Apple is how they are very innovative and early adapters. Apple is usually 1st company to come with a new product before anyone else. This is very risky but it seems to be working to apples advantage. This shows that taking risks can sometimes make or break you.
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BIBLIOGRAPHY
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