ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

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Student Name TRẦN TUYẾT NHI Student ID BHBF190069

Class BH-BF 1911-2.1 Assessor name Ngo The Nam

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Contents
1. Introduction of the company………………………………………………………………………………………….
1.1. The introduction ……………………………………………………………………………………………………………
1.2. The head office …………………………………………………………………………………………………………
1.3. The structure of the ownerships/ shareholders ……………………………………………………….
2. The type and purpose of the company…………………………………………………………………………….
2.1. The type of the company ………………………………………………………………………………………….
2.2. The purpose of the company ……………………………………………………………………………………
2.2.1. Apple’s Vision …………………………………………………………………………………………………
2.2.2. Apple’s Mission ………………………………………………………………………………………………
2.2.3. Apple’s Corporate Values ……………………………………………………………………………….
2.2.4. Apple’s Objectives ……………………………………………………………………………………………
2.3. Operation of the company …………………………………………………………………………………………
3. The size and scope of the company…………………………………………………………………………………..
3.1. The size of the company …………………………………………………………………………………………….
3.2. The scope of the company ………………………………………………………………………………………….
4. The function of the company…………………………………………………………………………………………….
4.1. Advantages ………………………………………………………………………………………………………………..
4.2. Disadvantages ……………………………………………………………………………………………………………
5. Conclusion…………………………………………………………………………………………………………………........
 Apple Computer Inc.

1. Introduction of the company

1.1. The introduce:
The company was founded by Steve Wozniak and Steve Jobs, Apple was incorporated on January
4, 1977. Today, Apple is a leading manufacturer of a line of personal computers, peripherals, and
computer software under the Apple Macintosh (Mac) brand name. Apple's line of smartphones,
the iPhone, are the third most popular smartphone brand in the world. Apple also develops wearable
devices, like the Apple Watch.
1.2. The head office:

Cupertino, California, United States

1.3. The structure of the ownerships/ shareholders:

It is owned by its shareholders.

 The largest shareholder is Arthur Levinson, who holds 1.16 million shares in the company. He
is also chairman of the board at Apple, and CEO of research and development company
Calico. (35%)
 As of December 2017, Tim Cook is second with 901,474 shares. Cook has been CEO of Apple
since 2011 following on from Steve Jobs, and prior to that was COO of the business. (29.07%)
 Craig Federighi, a senior vice president of software engineering (who works on development
of Apple’s operating systems) owns 460,367 shares. (20%)
 Institutional shareholders including The Vanguard Group and Blackrock own 15.93% of the
company’s outstanding shares.
2. The type and purpose of the company
2.1. The type of the company:
Based on statistical tables we can see Apple is a really for-profit company. In addition, Apple is a public
company because it always publicizes finance, revenue, profits ... Apple is also a large private enterprise
because 100% of the company's shares are privately held

Year 2019 2018

Total net sales $ 260,174 $ 265,595

Net income $ 55,256 $ 59,531

Earnings per share:

Basic $ 11.97 $ 12.01

Diluted $ 11.89 $ 11.91

Cash dividends declared per share $ 3.00 $ 2.72

Shares used in computing earnings per share:

Basic 4,617,834 4,955,377

Diluted 4,648,913 5,000,109

Total cash, cash equivalents and marketable securities $ 205,898 $ 237,100

Total assets $ 338,516 $ 365,725

Non-current portion of term debt $ 91,807 $ 93,735

Other non-current liabilities $ 50,503 $ 48,914

(source: Investor.apple.2019)
2.2. The purpose of the company:
2.2.1. Apple’s Vision

Apple vision statement is “We believe that we are on the face of the earth to make great products and
that’s not changing. “ It gives a detailed account of how the company approaches its operations to position
itself as the dominant player in the sector it operates in. Some of the components associated with this
statement include:

1. Innovations
2. Integration of partners and excellence
3. Market specialization
The first component shows that Apple is all about technological innovations. It does this by stimulating its
employees with the best innovative resources that are also client-focused. To achieve this, Apple believes
in the power of collaboration in such a competitive era to stay ahead of the rest. It also promotes this by
specially targeting its resources in areas where it can have maximum quality impacts.

The following table shows net sales by category for 2019, 2018 and 2017 (dollars in millions):

(source: investor.apple.2019)

2019 change 2018 change 2017

Net sales by category
iPhone $ 142,381 (14) % $ 164,888 18 % $ 139,337
Mac 25,740 2% 25,198 (1) % 25,569

iPad 21,280 16 % 18,380 (2) % 18,802

Wearable , Home and Accessories 24,482 41 % 17,381 36 % 12,826

Services 46,291 16 % 39,748 22 % 32,700

Total net sales $ 260,174 (2) % $ 265,595 16 % $ 229,234

iPhone
iPhone net sales decreased during 2019 compared to 2018 due primarily to lower iPhone unit
sales.
Mac
Mac net sales increased during 2019 compared to 2018 due primarily to higher net sales of
MacBook Air, partially offset by lower net sales of MacBook® and MacBook Pro ® .
iPad
iPad net sales increased during 2019 compared to 2018 due primarily to higher net sales of iPad
Pro.
Wearable, Home and Accessories
Wearable, Home and Accessories net sales increased during 2019 compared to 2018 due primarily
to higher net sales of AirPods and Apple Watch.
Services
Services net sales increased during 2019 compared to 2018 due primarily to higher net sales from
the App Store, licensing

2.2.2. Apple’s Mission

Apple mission statement is “ To bringing the best user experience to its customers through its innovative
hardware, software, and services. ” In this current mission statement, the company highlights the scope
of its operations and how it exploits these to satisfy the needs of its client base. While focusing on the
dynamic technological changes over time, Apple stays clear that impacting positive change through
innovation is its central objective. The following components arise from this mission statement.

 Improving the lives of people. In the first component of its mission statement, Apple reiterates the
duty of the company to stimulate ease in the lives of its users through simplified and user-friendly
technology. The recognition of the vulnerabilities in the online space has particularly pushed the
company to link this component with the demand for security features that improve the user’s
experience. While doing so, the company has broadened the services its customers can enjoy as
shown in its education, business and healthcare reach.
 Empowerment of the public. The approach adopted by Apple in meeting this element of its mission
statement shows that the company considers its products to be more than mere tools of
entertainment. They are instead a source of empowerment, and this explains the extensive
presence of apple at work. In fact, this emerges as a major source of innovation motivation for the
company.
 Top-quality products. The popularity associated with Apple products is evidence of how far the
company goes to fulfil the third component of its mission statement. Most importantly, one rule
remains unbent in this company, and that is providing the customers with the best quality
products.

2.2.3. Apple’s Corporate values

Apple core values include “inclusion and diversity, education, accessibility, environment, supplier
responsibility and privacy.” Values reveal the aspects that Apple considers integral to its overall success
as a technological and innovation leader. Apple is critical about the principles that have seen it model
itself as a quality-oriented company in over two decades. To stay true to these standards, the company
ensures that all its operations are in line with each of these values as highlighted in its statement of core
values.

2.2.4. Apple’s Objectives & Goals

Product
Apple offers premium products at premium prices while still maintaining large market share and high
profit margins.
Objective 1- Continue to create groundbreaking products. Apple has made a name for itself becoming a
trend setter in the market with every one of their products introducing something new and exciting to
the world. Strategy- To create groundbreaking products Apple will need to have a great team building
culture along with a strong research and development team. Too they will have to operate with a sense
of no complacency and not let current success limit future potential.

Objective 2- Innovate and dictate the movement for future technology. Technology is forever changing
and even the biggest companies can get left behind. The consumer will always buy the next big thing and
brand loyalty is hard to come by. This is why Apple must continue to lead the serge of the innovative
world. Strategy- To continue success of having the best products, Apple must study the market to
understand what consumers want next while improving their current products from listening to
customer

Place

You can find an Apple product in most areas of the world and that is certainly the overall goal for global
business. However where there is product demand there must be supply.

Objective 1- Expand nationwide chain of Apple stores globally. The Apple store accounts for the majority
of the company’s sells. Therefore there must be more stores to increase sells substantially. Strategy-
Begin placing stores in all large markets and expand outward based on population and demand of
products.

Objective 2- Make products available in every other possible retail channel, ex. Online, Big Box retailer.
Even though the Apple store leads in sells, Apple must make sure it’s products are accessible to every
consumer since their demand is so high. Strategy- Place products in every retail store that carries
electronic devices, all e-commerce web sites, and make sure mobile devices are featured on every large
mobile carrier.

Price

With every premium branded product there will come a premium price. It’s to be expected that the big
name brands that present superior quality will bring the highest price.

Objective 1- Enter and sustain premium pricing while attempting to gain market share. As long as their
products are cutting edge consumers will have no problem paying more for them. It’s important this
trade off does not subside in order for the premium pricing to be sustained. Strategy-Strategically price
all products at the top of the market base price relying on brand and quality to offset the price
differential.

Objective 2- Increase profit margins. Even with a high or low share of the market it’s your margins that
make or break you. Apple has great margins but a low market share across the board due to competitors
low price points. Strategy- Continue push to lower cost to make products while sustaining the same retail
price in the market.

Promotion

Building a brand may be the toughest challenge in all of business. To start at absolutely nothing and build
something that persuades millions of consumers to buy your products. Success like this is not built
without excellent marketing and promotion strategies which Apple has certainly demonstrated they
have.
Objective 1- Build hype and anticipation for new upcoming products. No better promotion than getting
consumers to anticipate your next release. Every great product’s next version will always do great
despite its functionality based solely on the anticipation from its previous version. Ex: If you liked the
iPhone 5 why would you not like the 5S with newly added features and design? Strategy- Use annual
conference and events to announce release and information on each new product before it hits the
market. This allows the consumer to build a demand for the product before it ever hits the shelf.

Objective 2- Sustain and expand on strongly branded name. There is no bigger name in the tech world
and it can only get bigger as we go. Apple has changed the way we look at phones and tablets. Who says
the word tablet anymore, most associate the device with iPad. Strategy- Be a trend setter, enter new
product markets before competition, and deliver current products at an unreachable standard of quality.
If they continue to set trends, enter new product lines and take their share of the market they will not
only build their brand they will dominate the competition.

3. The size and scope of the company

3.1. The size of the company:
Apple Company is a large, large-scale manufacturing organization with more than 132,000 qualified
employees to be certified as one of the largest businesses in the world. In addition, the company also
owns tangible fixed assets 64040$ USD in September 2019.
3.2. The scope of the company:
The Company manages its business primarily on a geographic basis. The Company’s reportable
segments consist of the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas
includes both North and South America. Europe includes European countries, as well as India, the
Middle East and Africa. Greater China includes China, Hong Kong and Taiwan. Rest of Asia Pacific
includes Australia and those Asian countries not included in the Company’s other reportable
segments. Although the reportable segments provide similar hardware and software products and
similar services, each one is managed separately to better align with the location of the Company’s
customers and distribution partners and the unique market dynamics of each geographic region.
The following table shows net sales by reportable segment for 2019, 2018 and 2017 (dollars in
millions)

2019 change 2018 change 2017

Net sales by reportable segment:

Americas $ 116,914 4% $ 112,093 16 % $ 96,600

Europe 60,288 (3) % 62,420 14 % 54,938

Greater China 43,678 (16) % 51,942 16 % 44,764

 Japan 21,506 (1) % 21,733 23 % 17,733

Rest of Asia Pacific 17,788 2% 17,407 15 % 15,199

Total net sales $ 260,174 (2) % $ 265,595 16 % $ 229,234

Americas
Americas net sales increased during 2019 compared to 2018 due primarily to higher Services and
Wearable, Home and Accessories net sales, partially offset by lower iPhone net sales. The weakness
in foreign currencies relative to the U.S. dollar had an unfavorable impact on Americas net sales
during 2019.
Europe
Europe net sales decreased during 2019 compared to 2018 due to lower iPhone net sales, partially
offset by higher Wearable, Home and Accessories and Services net sales. The weakness in foreign
currencies relative to the U.S. dollar had a significant unfavorable impact on Europe net sales during
2019.
Greater China
Greater China net sales decreased during 2019 compared to 2018 due primarily to lower iPhone net
sales, partially offset by higher Wearable, Home and Accessories and Services net sales. The
weakness in foreign currencies relative to the U.S. dollar had an unfavorable impact on Greater China
net sales during 2019.
Japan
Japan net sales decreased during 2019 compared to 2018 due to lower iPhone net sales, partially
offset by higher Services and Wearable, Home and Accessories net sales. The value of the Japanese
Yen relative to the U.S. dollar had a favorable impact on Japan net sales during 2019.
Rest of Asia Pacific
Rest of Asia Pacific net sales increased during 2019 compared to 2018 due primarily to higher
Wearable, Home and Accessories and Services net sales, partially offset by lower iPhone net sales.
The weakness in foreign currencies relative to the U.S. dollar had a significant unfavorable impact on
Rest of Asia Pacific net sales during 2019.
(source: investor.apple.2019)
4. The function of the company
This is Apple’s management structure. Based on the diagram, we see that apple is organized
according to functional structure
Board of Directors
The Board of Directors is responsible for planning the company's development strategies and
objectives in the short and long term. Operating and managing the company towards the proposed
development direction. The Board of Directors is the most responsible in organizing and managing all
daily business activities of the company, being the company's representative before the law.
Organizing the implementation of the resolutions and decisions that the Board of Directors has set
up
Information Technology Division:
Applying information technology to the company's activities.
Managing, maintaining and operating the entire information technology infrastructure system of the
company, providing technical support for other units in the company to exploit and use information
technology systems in a way the most effective. - Implement the management system based on
information technology to build baocaonoibo.com system or ERP software - One of the top
management systems that only a few large companies are using, build websites for sales or
information exchange of the company
Administrative Division - Personnel:
Operational objectives of HC-NS are to support departments in attracting, developing, motivating
and retaining employees. Raise the ability of employees and help them achieve outstanding results at
 work. Administrative and human resources division includes administrative and human resources
departments:
 The Administration Department is responsible for performing office work, asset
management, handling official documents, documents and invoices for buying stationery
according to employees' needs.
 Human resources department is responsible for planning human resources, monitoring and
reporting demand and assessing the situation of periodic human resources in the company;
Performing the function of recruiting new employees, labor norms to perform remuneration,
benefits for employees. Organize periodical training and training of necessary skills for
former employees and provide professional skills training for new employees. Building
company culture, solving difficulties and needs of employees in the process of working.

4.1. Advantages:
Strong Corporate Control.
The hierarchy in Apple’s organizational structure supports strong management control in the
organization. Theoretically, hierarchy empowers top leaders like Tim Cook to control everything
in the organization. Through the hierarchy, business functions and product-based groups are
effectively controlled through the decisions of the CEO and other top executives. This advantage
of Apple Inc.’s corporate structure facilitates rapid and effective strategic management
implementation, and helps in establishing coherence throughout the entire organization.
4.2. Disadvantages:
Limited Organizational Flexibility.
Apple’s corporate structure has the downside of low flexibility. Hierarchy typically prevents
lower levels of the structure to flexibly respond to current business needs and market demands.
For example, the company’s product-based divisions must wait for directives from the CEO or
other top executives to proceed in implementing changes that address trends in the market for
consumer electronics. However, Tim Cook has already made slight improvements by increasing
collaboration among different parts of the firm. Such collaboration improves organizational
flexibility. Still, Apple’s organizational structure does not support rapid changes because
everything must go through Tim Cook and the top management.
5. Conclusion
References
https://burnetteb.wordpress.com/2015/06/25/apple-inc-objectives-and-strategies/

https://investor.apple.com/investor-relations/default.aspx