Management Principles Assignment (Porter's Five Forces on Apple Inc.)

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Section| Assessment| Page|
1| Introduction| 4|
2| Contents| |
| * 2.1 To analyze the company’s practices/operations in relation to the selected topic.| 5-9| | * 2.2 To identify and explain the relevant principles and concepts of management (in relation to the selected topic) those are being applied in the company.| | | * 2.3 To identify and explain the pros and cons in the application of the relevant principles and concepts of management in order to find the problems that will be encountered by the company | 10- 16| 3| Recommendations| 17- 21|

4| Conclusion| 22|
5| Bibliography| 23-25|
6| References| 26-|

1.0 Background
In April 1976, Steve Wozniak and Steve Jobs were established Apple together after they graduated. When Wozniak successfully created Apple I, co-worker relationship between Steve Jobs and him began. The uses of Apple I was to make free phone calls for long-distance. Steve Jobs who had an eye for the future, sold the Apple I with Wozniak to the public and got the great appraisal for the public. Apple Computer Company started in 1997 and the first Apple Computer was born. Apple Inc. created manufactured and marketed mobile device and media devices, computer, and portable digital music players. In the past ten years, Apple has expanded into a very intricate company, and they tried to design more new technology so that the company can penetrate to the market easily. In 2001, Apple introduced the iPod into the market, and the iPod successfully becoming the main market leader in music players. Besides that, Apple joined the phone industry in 2007 with the iPhone, which has also been proverbially successful and attract many customers. The company's famous hardware products are Macintosh line of computers, consumer software (iCloud, iChat, iTunes) and electronic (iPad, iPhone, iPod). The company operates in five sections: Americas, Europe, Japan, Asia-Pacific and Retail. Apple sells its products worldwide through its retail shops, online shops, and direct sales force, and through third-party to sell their products which are wholesalers, retailers, and resellers. As of September 24, 2011 (2011 -09-24)[update], the company had 60,400 permanent full-time workers and 2,900 temporary full-time workers worldwide; its worldwide annual profit in 2010 total $65 billion, growing up to $108 billion in 2011. Apple has become a consumer goods company, and therefore evaluating its value requires understanding its products and consumers. Although the company keeps on designing the new mobile devices but they still loses some customers, as Apple competes with many different companies throughout the different industries in which Apple Company involves. Nevertheless, Apple Company alerts and realizes what their consumers need. This is the reason the company has a very strong customer base and has strong brand equity in the market.

2.0 Contents
2.1 To analyze the company’s practices/operations in relation to the selected topic. 2.2 To identify and explain the relevant principles and concepts of management (in relation to the selected topic) those are being applied in the company. Porter’s five forces model is proposed by Michael E. Porter. It is a commonly used tool that businesses use for exploring the economic factors that may affects the competitive intensity and overall industry profitability of a market. The followings below are the Porter’s five forces analysis of Apple Inc. i. Threat of New Entrants

A high profitability market will attract a new firm to enter because of the opportunity to earn profits. When new firms enter into the market, the new entrants are likely to become the competitors for the existing businesses. As a result, it will lower down the profitability for all firms in that particular industry. However, the barriers of entry can help to decrease the rate of entry of new competitors into the market. The threat of new...
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