Strategic Management Case Analysis: Apple Inc.

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Strategic Management Case Analysis: Apple Inc.
Veronica R. Hart
Kaplan University
Strategic Human Resource Management
Unit 1
GB 520
p. 1-6

March 9, 2011

The 2008 Harvard Business Case Study on Apple Inc, describes the very popular corporation with 24 billion in revenue as of 2007 and how the company has had some problems yet sustainability over the years. The status of the company was examined in detail by the article which revealed a number of strategic moves under the leadership of several CEO’s in marketing, not only the PC industry, but also the consumer electronics industry. This will be discussed in the first five sections of the Process of Strategic Management. The final section will offer recommendations of some difficulties Apple, Inc faced as it made successful changes (Slind & Yoffie, 2008). I. Mission Statement

The very first stage of the strategic management process is for the corporation to evaluate its mission statement. The purpose of this mission statement is to define in simple terms the organizations reason and purpose for its existence. This can be very complex to construct because it requires one to have a clear and concise understanding and vision of the organization and ultimately understand why the company exists at all (Mello, 2006/2011). Apple Inc’s Mission Statement was to bring easy to use computers to the market and envisioned changing the world through technology (Slind & Yoffie, 2008). II. Analysis of Environment

The second stage of the Process of Strategic Management is to analyze the external environment in which an organization operates parallel with the Industrial Organization model (I/O) of Strategic Management whereas decision makers analyze the various components of the external organization, identifying the key players, and are aware of the opportunities and challenges with the environment. This involves analyzing

regulations, chief competitors, economic trends, market trends, technological sector, to name a few (Mello, 2006/2011)
Apple Inc.’s identified their key players in the PC market are Dell, HP, IBM, Gateway, and Microsoft. At times they partnered with a few of their competitors such as was the case with IBM and Microsoft.

Apple Inc. made various changes in the role of CEO and management on several occasions through the years in efforts to increase revenue. They began to lose their competitive edge and had several missed opportunities, which apparently led to tremendous decrease in profits. Starting with Wozniak and Jobs in leadership to Scully, Spindler and Amelio, and back to Jobs, Apple looked within its internal organization to determine how they can better the product line and increase profits again by starting with individual leadership and new innovative ways of thinking.

Apple Inc began to open their core markets to education and desktop publishing, cut costs in the workforce and reduce R&D. They created new servers and kept costs low. Unfortunately, the profits continued to decline (Mello, 2006/2011). III. Organization Self Assessment

The third stage of Strategic Management is to assess the internal environment of the company, which is ultimately where decision makers find ways to capitalize their strengths and eradicate and improved weaknesses after careful consideration of what their primary strengths and weaknesses are (Slind & Yoffie, 2008).

Apple, Inc. exemplified this stage of the Strategic Management Process well. Again, the management and board reorganized on several occasions to find the leadership that would be the most innovative yet increase revenue and simply make changes where

needed. They assessed the changes that needed to be made including their product being cloned repeatedly, and moved accordingly in efforts to better the corporation. In 1997, they put Jobs back into CEO position where he quickly reaffirmed and developed core products by reducing the product line from 15 products to 3. He also made...
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