Assignment 1: Strategic Management and Strategic Competitiveness
Assignment 1: Strategic Management and Strategic Competitiveness
ASSIGNMENT 1: STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS
Apple Inc. is a multinational corporation in the US that deals in technological advancements. The company has its headquarters in California, and it develops designs and sells various consumer electronics, e-services, PCs and software. The corporation is globally known because of their products like the iPod, the Mac, the iPad computer and the iPad Smartphone. The corporation’s online dealings include the iTune store, the App store and the iCloud. Their software includes the safari browser, iWork, iOS operating systems among many others. It is known to be the world second largest producer of information technology.
Globalization entails interrelated processes of organizations, which include the internalization of trade and finance. Due to globalization, Apple Inc. has increased their levels of profit to greater heights (Kenney, 2010). The corporation has succeeded in advancing their strategies, which rely on importing, exporting and outsourcing. In the year 2013, Apple had established 417 stores in 13 nations with their online portal in the presence of 38 countries. Their global sales during this period shot up to $16billion in merchandise, and this figure has increased subsequently in recent times. All this has been possible because of the benefits of globalization. They have managed to spread to almost every part of the world with the intention of establishing stores and increasing their sales revenue.
It is vital to note that Apple has become a creative company as opposed to a production one due to globalization. Although it has benefited more than $400,000 for its employees in the US it has made outsourcing a key component in its operations. The company employed twice as much employee from outside the US to come up with its tech iPod product. The company has benefited more in its operations and also increased the earning share of its shareholders due to globalization.
For any product to become acceptable by the majority because of technology it has to be one that is of high quality. Investments in foreign direct incentives can only become reasonable if products are produced with high quality technology. Apple has managed to get such investment prospects in other countries like China where final products are assembled for the corporation. Due to their corporate strategy they have been in a position to give outsourcing a priority and at the same time producing high quality products for their clients. Apple provided different specifications of companies in China, and they were able to produce high quality iPods for the consumer markets.
Technology has also enabled the company to outsource various products that are of high quality through assemblage from other nations apart from China. The producing nations often follow after the specifications provided by Apple and then go into production while following all their requirements. The technological advancements in the US have enabled the corporation to have standards that meet the global world’s needs without problems. The company has met the tenets of internationalization, and this has made them to have their products leveraged within utilities that are of a high quality. The company’s leverage on producing quality products have been in line with the research and development concepts that have been introduced in the company as a whole.
The industrial organization model
Large organizations like Apple make use of the industrial organization model to ensure a large stake within different markets. The economic model can be used by the organization while developing and selling their products to their consumers (Mallin, 2011). Through this model, the company can ensure limited competition through the use of strategic governance, advertising, transaction costs and production. They can ensure reduced costs of their transactions while making advertising a priority for their products. This will keep the competition pool at low levels and also ensure barriers to new entrants in the market. Such a move can make the company make assessment of their remaining competitors who are always few in number hence maintaining a foothold in their industry of operation.
The resource-based model
The resource-based model often looks at the company resources as being key in the overall performance of the organization in question. Apple can gain competitive advantage if they make their resources superior. The company will need to exploit their opportunities, and this are those that are internal through the use of existing resources. This can be done without making use of other new skills that arise because of new opportunities. The company’s resources will be given a bigger role in ensuring increased performance in the long run (Yoffie, 2011).
The mission statement of Apple clearly focuses on their present offerings and other products that are already in the market for sale. The company’s mission statement enhances their business by providing quality products that are required by their customers. They enumerate their products in a sequential manner, and this is vital as it makes customers aware of the products that they can get from the company at any time. The company does not hide their productions, but rather share them with people from all walks of life. This is a gesture of honesty and has led the company far up to where it is today.
Apple’s vision statement ensures high standards in all their products. According to their visions statement, they desire to produce products that meet world standards to ensure increased clientele base. Such a provision makes them a world leader in the production and distribution of electronics leading to high profits from their sales. They have a vision of ensuring that all their customers are satisfied with the products they buy from them. This is important as it will increase their presence around the globe and minimize on the level of completion as a whole.
Apple Inc. Stakeholders
There are several stakeholders of Apple who ensure increased profits and participation for the company. Lenders provide the company with financial assistance, which ensures that all technologies are achieved within the stipulated time. This helps them to meet their requirements and also provide services and products that are timely leading to success. Apple employees also follow after the corporation’s standards, which are meant to propel the organization to higher heights. The employees provide design and develop products that meet the needs of the people thereby increasing the clientele level of the organization. The customers often buy products from the company because of their relatively high quality leading to high profits. The shareholders and suppliers on the other hand are also important as they ensure that all the required projects and products are completed in time through their advice and provisions.
Apple Inc. has a high presence around the globe because of their unique and high quality products. Through outsourcing they are able to reduce their production costs and increase their overall profits in the long run. Opening up new stores and engaging in their technological advancements will make them a world leader in the production and sell of electronics years to come.
Kenney, M. (2010). Towards a new theory of innovation management : A case study comparing Canon , Inc . and Apple. Journal of Engineering and Technology Management, 8, 67-83.Mallin, M. L., & Finkle, T. A. (2011). Apple inc.: product portfolio analysis. Journal of the International Academy for Case Studies, 17(7), 63-75.Yoffie, D. B., & Kim, R. (2011). Apple Inc. in 2010. Harvard Business School, 9-710-467, 1-25.
Get a verified expert to help you with any urgent paper!Hire a Writer
from $10 per-page