Apple Inc.
Apple Inc. formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that creates and retails consumer electronics, computer software, and personal computers. Apple’s mission and vision summarizes its committed efforts in bringing the best user experience to its customers through its advanced hardware, software, peripherals, and services along with a unique ability to design and develop its own operating system, hardware, application, software, and services, in order to provide its customers new products and solutions with superior case-of-use, seamless integration, an innovative design (“Apple Inc. Form 10-K Annual Report”, 1, 2012).
Company’s mission and vision statements against the performance of the organization Apple’s mission and vision statements and objectives are neither interchangeable nor autonomous. Without objectives, the mission and vision statements are impractical. Without the mission and vision statement the objectives have no relevance. Both statements are too broad to be measurable, and the objectives are too definite to provide the big picture. When properly coordinated they strike a balance that helps to shape the business operations and service strategy.
Apple Inc.'s mission statement is as follows - Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and internet offerings. The mission statement offers that the organization is concentrated on quality and innovation to reach its target customers. In its mission statement Apple aims to provide customers with the best computing experience therefore markets products that meet customer needs in terms of functionality and quality. An example of the company's performance in line with its mission statement is the fact that the company is ranked as the largest vendor of smart phones accounting for 20.3% of shipments and 18.5% of global market share (“Strategy Analytics”, 2011). This indicates that the business strategy employed is working out effectively to ensure organizational growth. Apple Inc's vision statement is 'Man is the creator of change in this world. As such he should be above systems and structures and not subordinate to them'. The vision statement focuses on the customer whereby the company targets to make them masters of products.
The company's performance is in line with its mission and vision which is reflected in its accomplishments. Performance indicators such as sales, operating and net income show that the company has managed to maintain growth through strategies employed. Apple Inc. is recognized for offering products that are high in quality and are inventive which is in accordance with the company' mission statement.
Organization’s Strategic Goals Link to the Company’s Mission and Vision.
An organization’s strategic goals are often in concurrence with first its mission, and if properly executed, the vision will then successfully follow thereafter as the company continues to develop, expand, and or venture to new industry opportunities. Apple Incorporated’s strategic goal successfully links to their mission and goals. Apple outlines its committed efforts in bringing the best user experience to its customers through its advanced hardware, software, peripherals, and services along with a unique ability to design and develop its own operating system, hardware, application, software, and services all through innovative approaches through their products.
From the beginning, Apple’s number one strategic goal has been to be merely noticed as the company that designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, develop and sell a variety of related software and hardware, services, peripherals, networking solutions, and third-party digital content and applications (“Apple Inc. Form 10-K Annual Report”, 1, 2012). This first notion assesses how the organization’s strategic goals link to the company’s mission and vision, along with their second important future financial and operating strategic goal- to continue to develop and offer new innovative products and services in each of the markets in which it competes in (“Apple Inc. Form 10-K Annual Report”, 31, 2012).
Apple’s Financial Performance
Apple Inc.’s business strategy put emphasis on its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and innovative design; they will always have lucrative financial performance. Their successful financial performance can be observed by the figures provided within the company’s annual report. The article entitled “Apple News and Financial Performance” provided by Apple Digest also exhibits their financial success. Apple reported the second best quarter in both company and technology sector history with revenues of $39.2 billion and net income of $11.6 billion, also showing GAAP earnings per share were $12.30 and cash flow per share from operations was $14.79 (Apple Inc. Financial Performance, 2012).
Apple has encountered a five year annual growth rate of 41.16% compared to industry's growth rate of 38.38%. This indicates that the company has high performance compared to other competitors in the industry and that the company is achieving its goal of increasing organizational revenue. The results indicate that strategies employed are effective in generating revenue and in improving performance. Apple registered high growth in net income whereby it increased by from $14,013 million in 2010 to $ 25,922 in 2011 and this represents 85% increase in income. Apple has a 5 year annual growth rate of 67.11% in net income compared to 61.93% for the industry. This is an indicator that Apple is effective in achieving its overall objective which is generating wealth for its shareholders.
One of the strategies employed by Apple is to include differentiation through branding. Apple is one of the most recognized brands and has a strong identification within the market, especially with young consumers. It mainly focuses on offering products high in quality and periodically launches original new products which drive sales for the organization thus high growth in revenue.
Apple’s financial performance does determine the link between their strategic goals, strategy, and its financial performance. These numbers show that only a company that commits in setting forth its mission and vision and plan for success, can become profitable in revenue. Apple’s strategy is initiated upon being a competitive corporation in order to be diversified within several industries. Their financial performance is closely linked to a strategy that emphasizes on always developing innovative products based on future projected financial performance revenue, and not previous financial performance revenue. Apple Inc. focuses on “new” financial numbers, leading them to without end carry out their mission and vision to again, provide its customers new products and solutions, all while continuing to gain successful profit.
Competitive and Marketing Analysis to Determine Strengths and Opportunities.
Apple Inc. strengths and opportunities can be determined through a competitive and marketing analysis which outlines how they have remained on top within this platform. It mastered an expertise in providing a complete solution for the consumer, creating a position for itself that makes it nearly impossible for other companies to compete with. This is all made likely because Apple has identified its strengths, as well as its business opportunities allowing them to hold the business title as unstoppable. Apple is focused on expanding its market opportunities, which creates the competitive foundation causing other competitors to imitate some of Apple’s products and applications (“Apple Inc. Form 10-K Annual Report”, 6, 2012). Some of those competitive products and services Apple Inc. markets, which make them highly competitive to only face aggressive opposition include: iPod, iPhone, iPad, iTunes, Mac App Store, Mac, iCloud, software products and computer technologies, Mac OS X, application software, iWork, Apple TV, displays and peripheral products, and operating system software (“Apple Inc. Form 10-K Annual Report”, 4-5, 2012).
Along with a company’s competitive force, a strategic marketing plan is needed in order to market these products. Apple uses a variety of direct and indirect distribution channels, such as retail stores, online stores, direct sales force, third-party cellular network carriers, whole sellers, retailers, and lastly, value-added sellers. They believe by providing direct contact with its targeted customers, it is an effective way to demonstrate the advantages of its products over the competitors (“Apple Inc. Form 10-K Annual Report”, 6, 2012). Branding then becomes a vital element along with research and development, which is needed in order to stay, aligned with its rapid technology advances and ability to ensure a continuous flow of their competitive products, services and technology to the marketplace (“Apple Inc. Form 10-K Annual Report”, 6, 2012).
A company’s branding is a highly important tool along with an effective strategy to promote the products anticipated to be sold to its consumers. Apple’s product branding strategy has been to create innovative products and services, but a recent branding strategy is to keep the customer experience central and the Mac is no longer the nucleus product of Apple (“Apple Inc. Branding Strategy”, 2012). Because of the initial branding strategy by introducing Mac computers, Apple has gained the consumers trust and eye for good quality products and services to now purchase their additional innovative products and services. Do competitive products and services, a strategic marketing plan, and branding all determine the strengths and opportunities for a company? Apple’s strengths can be defined as simply being highly recognized as the only company around to date that has the unique ability to design, develop and market its own operating system, hardware, application, software, and services all in an profound time schedule, and the ability to foster new innovative technologies. Through Apple iPod, it gives the company access to a whole new series of segments that buy into other parts of the Apple brand, with sales of the notebook products are also very strong bringing in a huge income for the company (“Apple Inc. SWOT Analysis”, 2012).
The opportunities Apple Inc. are able to showcase and bring in company revenue lie in their specific products and services such as iTunes and its music player technology into a mobile format. The version of Apple’s iTunes music store was developed for the phone so its users can manage the tracks they store on it. This particular product is considered Apple’s new technologies and strategic alliances that offer tremendous opportunities for Apple (“Apple Inc. SWOT Analysis”, 2012).
Strategy for Apple’s Return to Shareholders.
The implementation of differentiation strategy is defined as, value is provided to customers through the unique features and characteristics of a company’s products, rather than by the lowest price. Distinguished products satisfy customers’ unique needs or preferences and then in return, companies can charge premium prices for differentiation products. Differentiation strategy is the strategy that Apple Inc. uses in order to maximize on the organization’s return to shareholders. Apple’s relies on their products through hardware and software integration, the design quality of their products, and by targeting high profit margins. Apple prides itself on its innovation; product innovation is a must in order for shareholders to gain profits.
Apple’s strategy, along with product differentiation sets a strong return to its shareholders. Their shareholders are able to gain profit from the company’s revenue due to their success within their ability to create and develop ongoing new products. In evaluating their history of product differentiation, in 1993, Apple pioneered the PDA market by introducing the Newton, by only then introducing the easy-to-use iMac in 1998, and also releasing an extremely stable operating system in 1999 by introducing the iBook, which completed their product matrix at that time, bringing in millions of revenue. Differentiation strategy is the appropriate business strategy Apple has used and will continue to use to maximize on the organization’s return to shareholders. Apple’s performance within their products allows not only the company to gain revenue, but also their shareholders.
Merger or Acquisition a Viable Strategy to Implement.
A merger or acquisition would be a viable strategy to implement for any company, especially Apple Inc. Merger or acquisition is always a plus when one company joins forces with another company in order to capitalize on shareholder value. A merger or acquisition can be viable solution if Apple Inc intends to reduce cost, if it wants to increase market share or wants to enter into a new market, and when an organization wants to diversify operations. An acquisition can be an effective strategy for an organization to grow and increase synergy.
In a scenario where Apple intends to diversify its product offerings it can acquire a company like Sony and this can provide the companies with major competitive advantage. Sony is a firm dealing with electrical appliances and an acquisition would allow Apple to diversify operations into video and music products. The acquisition would provide Apple with an opportunity to offset decline in sales of other products.
Apple is reliant on third party suppliers to provide them with various components used in product development. Apple also utilizes customized components that are used by the company only. A scenario that can lead to an acquisition is failure of a supplier to provide essential components. An example is the war that is currently going on between Samsung and Apple whereby Samsung provides Apple with key components that are used in Apple products (Fox News, 2011). If Samsung stops supplying Apple with needed components, Apple would have to acquire another firm who can provide the missing components.
Rewards that motivate employees toward achieving the desired strategy.
Within every company, there is a need for rewards for their employees in order to create employee motivation, which will in result help drive the organization to reach the mission set forth. Some employee rewards consist of: salary increases, annual employee recognition, career advancements, and paid time off. The focus should not just be on the salary aspect of employee rewards, but also the compensation strategy. Ultimately, money is the factor that in the end motivates people, but more importantly it should be achieving the success of the organization. There are a lot of organizations that do not value their employees; they are just looked upon as employees working for the company, but not a part of the company. We are employed by our employees, but would like to also be appreciated for the work we do. A strategy that can be utilized to motivate employees is performance incentives whereby employees who are exceptional in performing their duties are rewarded. This requires employees to have goals and once their goals effectively and efficiently achieved, they can be rewarded in monetary or non monetary terms. One important factor to keep in mind as a leader of an organization when trying to increase employee motivation is, if you are not able to increase your employees’ salaries, employee recognition is always another way to show your appreciation for their service within the organization.
Since Apple participates in a highly dynamic market, the company can undertake training and development programs that would ensure employees are adequately equipped with desired skills and knowledge. This would lead to increased employee satisfaction which translates into improved employee motivation.
Apple’s Current Strategy Supports or Discourages Ethical Business Behaviors
Some company’s business strategy may support or discourage ethical business behaviors in a positive or negative way that may affect their ultimate goal for the organization. They also may cultivate ethical behaviors within the organization that affect the individuals work with one another behind closed doors. Apple Inc. is a company that fosters Diversity Management. Apple promotes diversity management by having a diverse employee base and embraces it by successfully hiring employees from diverse cultures. In doing so, the company is able to bring in not only a diverse group of employees, but a diverse group of knowledge, skills, abilities, and cultural technology.
Apple has established monitors and code of conduct policies to monitor and regulate accepted practices within the organization. This will ensure that company activities are as close to ethical standards in order to avoid ethical legal lawsuits.
Apple’s business strategy is based on ethical business behaviors that should always be positive; keeping the best interest of the consumers in mind, as well as its shareholders. They have ethical standards for their clients to deliver what they present within their mission statement; to present committed efforts in bringing the best user experience to its customers through its advanced hardware, software, peripherals, and services a long with a unique ability to design and develop its own operating system, hardware, application, software, and services, in order to provide its customers new products and solutions with superior case-of-use, seamless integration, an innovative designs. They also have made a commitment to its shareholders to be certain that they also stay true to the vision in developing new innovative technology and products so that an enormous amount of revenue is brought into the company that these shareholders invest in.
Apple’s current business strategy can always bring about questions of business ethics, and or support negative business ethics if it not properly executed; however, Apple Inc. has displayed positive business ethics with both their internal customers, as well as their external customers and shareholders, all demonstrated through their company success by way of their products and revenue.

References

Apple Inc. (2012). Apple Inc. Form 10-K Annual Report. Retrieved on December 18, 2012, from http://investor.apple.com/
Apple Inc. Branding Strategy. (2012). Marketing Minds: Apple’s Branding Strategy. Retrieved on December 18, 2012 from http://www.marketingminds.com.au/branding/apple_branding_strategy.html
Apple Inc. Financial Performance. (2012). Apple Digest: Apple News and AAPL Stock Analysis. Retrieved on December 18, 2012, from http://appledigest.blogspot.com/p/apple-financial-performance.html
Apple Inc. (2012). Apple SWOT Analysis. Retrieved on December 18, 2012, from http://marketingteacher.com/swot/apple-swot.html
Compensation Strategy. (2012) Use Compensation Strategy as a Tool to Motivate Your People. Retrieved on December 18, 2012, from, http://www.strategichumanresource.com/compensation-strategy.html
Fox News. (2011, September 23). Samsung vs. Apple War Set to Explode. Fox News. Retrieved December 18, 2012, from http://www.foxnews.com/scitech/2011/09/23/samsung-vs-apple-war-hits-high-gear