Apple Strategic Audit

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I.Current Situation

A.Current Performance
Strong financial results for its fiscal 2010 first quarter; no debt. •Best quarter ever, recorded $15.68 Billion in revenue.
Reported $3.38 billion net revenue
283 retail stores in 10 countries.

B.Strategic Posture
1. The company’s strategic posture is clearly stated, and is also back up by its strong performance.

2. Mission
Apple is committed to bringing the best personal computing and music experience to its customers. The company has a unique ability to design and development its own hardware and software.

3. Objectives
Today, Apple is committed to lead the industry with its award-winning computers, OS X operating system and iLife and professional applications. The company’s objectives are clearly in line with its mission, and both internal and external environments.

4. Strategies
Continual investment in research and development critical to facilitate innovation of new and improved products and technologies. Apple is also committed to expand its digital footprint in the music industry, and worldwide expansion of its retail operations. The company’s strategies are in line with its mission, objectives, and both internal and external environments.

5. Policies
Award-winning design.
User-friendly products.
High quality.
Environmental sustainability.
Unique customer experience.

II. Corporate Governance

A.Board of Directors
1.Six members-five outsiders and one internal.
2.Board members own a significant share of the stock
3.Stock is publicly traded-different classes of stock with different voting rights. 4.Board members contribute different skills to the corporation: retail operations, software technology, marketing experience, and environmental sustainability. Several of the board members have international experience. 5.Board members server for well over five years, some ten years. 6.Board members take the leading role in establishing and modifying the mission, objectives, strategy and policies.

B.Top Management
1.Consist of highly skilled individuals in the computer industry. 2.Very experience in international operations based on performance. Not all executive from acquired companies considered top management. 3.The team has been responsible for the strong performance. Some are promoted from within and others are externally hired. 4.Have established an approach to strategic management.

5.Highly involve with the company’s strategic management process. 6.Flat organization with constant communication with lower level management. 7.Decisions are made ethically in a socially responsible manner. 8.Highly concerned with the environment-carbon footprint.

9.Own significant amount of stock in the corporation.
10.Sufficiently skilled to cope with the future with several products in the pipeline.

III. External Environment: Opportunities and Threats (SWOT)

A.Natural Physical Environment: Sustainability Issues
1.Availability of raw materials for production.
2.Possible in shipment from China due to weather delays.
3.No major threat of other natural environment.

B.Societal Environment
Though economic times preventing some consumers to purchase high-ticket items. •Global economic crisis has resulted in tight credit markets, volatile fixed income. •Consumers may postpone spending.

Intense rivalry with Adobe and Google over the non-use of Flash on Apple’s portable devices. •Mobile technology and cloud computing have becoming increasingly important. •Apple dominates the music player market.

Pressure from EU countries requiring iPod player and iTunes online store compatibility with rival offerings. •2006 investigation by SEC over the company’s issuance of stock options to top management. •Growing legal battle with Nokia and HTC over patent infringements. •Stolen 4th generation of iPhone...
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