Case Analysis – Strategic Management – Apple, Inc. - Unit 1 Anahit Orbelyan
Strategic Human Resource Management
September 08, 2012
Dr. Kenneth Rauch
Case Analysis – Strategic Management – Apple, Inc.
The purpose of this paper is to explain the definition of Strategic Management and why it is critical to the success of an organization in meeting its goals and mission. The paper will include a brief analysis of the situation and pending decision problem, as presented in the case and in relevance to the answer. In addition, the major issues will be surrounding the organization or individuals involved with the organization. Included will be alternate courses of action to address the issues identified. Next, will be the decision or recommendation for action, with the appropriate supporting arguments if any. Statement of the Problem(s):
Thousands of people were laid off at Apple, Inc. It does not look like Apple, Inc. spent much time working on its management and marketing strategies from the beginning. It was not until better marketers such as Jobs and Sculley came into the picture, before the company started to expand to better markets with acquisitions and joint ventures. The problem was not changing their strategy sooner. The jobs are what contribute to a company’s effectiveness (Mello, 2011, p. 115) and if they kept their employees it might have contributed to earlier success. It is human capital that helps companies to strive. For Apple, Inc. to lay off employees to help their financial statement for stakeholders may have been part of the cause of the problem (Yoffie & Slind, 2008). Their mission statement should have answered the question about what is strategic management, and why is it critical to the success of an organization in meeting its goals and mission statement? Summary of the Facts:
According to research done by Yoffie and Slind, (2008) Apple, Inc. started out with a great product line to reach the computer market. Then they advanced to the ipod, iTunes and the 3G network in order to advance their technology into the competitive marketplace. They became the industry leader under Wozniak with the new Macintosh. However, their technology was slow. They did not beat their competitors during this stage. Sculley added desktop publishing, which focused on the educational market which sold at top price. Because Sculley was good at marketing he was able to hit the market with the personal assistants gadgets. The smartest move Apple made was to form a joint venture with its competitor. Products dropped and IBM and Apple parted but they were just starting to learn the joint venture game. When Steve Jobs came on board the company went through reorganization and many people lost their jobs. Microsoft invested one hundred and fifty million dollars just after Microsoft Office was formed. Then iMac went out to three hundred million and Apple’s image was back on track again. Their marketing strategy was to differentiate themselves from other competitors. Apple, Inc. had great designs under Steve Jobs with Microsoft’s cooperation. However, Acer and Dell were catching up with the new Intel processors and Windows 7 emerged. Apple’s smartest move was the iPod with music. However, Amazon was the company’s newest threat. The end result was the iPhone reaching the smartphone market. They reached all heights by finally changing their game, by reaching seventy percent of the U.S. market. In addition, the “iPhone 3G reached twenty-two markets” (Yoffie & Slind, 2008, p. 22). Definition:
The elements of a strategy consist of arenas so the company knows where the main operations will be and core technologies used (Mello, 2011, p. 131). The next step in setting up the company’s strategy is the vehicle they will use to achieve their goals? Third, is differentiation on how they can beat their competitors in the high-tech world? Fourth,...
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