Apple Inc Strategic Analysis

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Case 10: Apple Computer and Steve P. Jobs

CURRENT SITUATION
* Performance
The current performance at Apple Inc. shows a slightly higher gross margin percentage of 33.9 compared to 32.9 for the previous year. This is based on figures from the quarterly report ending March 29, 2008 and the date for the comparison figure is the previous year ending March 31, 2007. The revenue for that same quarter was $7.51 billion with a net quarterly profit of $1.05 billion. The Macintosh computers unit showed a 51% unit growth while the IPOD unit showed a 1% unit growth. According to Steve Jobs, Apple's CEO, "We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history." * Strategic Posture

o Current Mission
"Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone." o Current Objectives

The company's objectives show through the plans and marketing that are currently in place. * Increase Macintosh presence in the areas of education and business. * Improve sales of IPOD music devices.

* Introduce and market new devices and concepts such as Apple TV. * Show a pressing concern to be "green." Apple's environmental policy has taken quite a bit of flack in the press in the past few years. That is being worked on from multiple angles. * The main objective of any business is to make money for the shareholders so it can stay in business. o Current Strategies

* One important strategy is the "principles of business conduct" statement which outlines five strategic principles - honesty, respect, confidentiality, community, and compliance. * Design, manufacture, and market computers, music players, and communication devices on a worldwide scale. * Provide innovative products and solutions to the professional, consumer, and education market to run complex applications using a high quality user interface. * Create products that connect to a wide range of digital devices with the least amount of user interaction possible. * Maintain the unique position of being the only computer industry participant who controls the design and development of the entire line of personal computer hardware and software along with this control over music players and mobile communication devices. * Increase product awareness through increased investment and marketing and advertising programs. * Utilize direct and indirect distribution channels properly staffed in order to produce a quality sales experience and after sales support. o Current Policies

* Comply with federal laws enacted for the protection of the environment. * Research and adhere to individual local and state regulations regarding environmentally sound recycling and disposal methods. * Discard back orders as a method of determining any particular level of revenue or financial performance. * Accept seasonal business as an opportunity instead of an indicator of a possible trend in sales. * Use sole-sourcing for critical components from vendors in the U.S., Singapore, China, Korea, and Japan. * Continually develop innovations into all product lines to remain competitive in the markets and stay ahead of or surpass the leader in each market in which we are involved.

CORPORATE GOVERNANCE
· Board of Directors
* Eight members on Apple Inc's board (minimum of five, no more than nine). * Board members are elected to one year terms.
* If a director's position changes through retirement of acceptance of...
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