Final Output Strat. Man Case Analysis.

Chapter 1
Situation Analysis
Company Profile:
 Business name: APPLE,Inc
 Business industry: COMPUTER HARDWARE
 Business type: TECHNOLOGIES
 Owner of the business: STEVE WOZNIAK and STEVE JOBS
 Current standing in the market: FIRST TO BE A BLOCKBUSTER;
SUCCESFUL NEW PRODUCTS; MOST SUCCESFUL COMPANY
Company History:
 The coworker relationship started when Wozniak successfully created building
boxers to make free long distance calls, which was a huge invention at that time.
 Apple became the most rapid growing company in the United States.
 Apple gets more than half of its sales from United States.
 In 2010, for the first time, the company’s market capitalization surpassed
Microsoft.
Vision:
 Apple is committed to bring the best personal computing experience to students,
educators, creative professionals, and consumer around the word through its
innovative hardware, software, and Internet offerings.
Strategic Management Plan for: APPLE, Inc, S.Y.2018-2019 1

Mission:
 Apple computer is committed to protecting the environment, health, and safety of
our employees, customers, and the global communities where we operate.
Objectives:
 Integrating sound environmental, health, and safety management practices.
 Offer technologically innovative products and services while conserving and
enhancing resources for the future generations.
 Continuous improvement in our environmental, health, and safety management
systems and in the environmental quality of our products, process and service.
Milestone:
 Wozniak successfully created building boxes to make free long-distance calls,
which was a huge invention that time. Wozniak extended his invention again
when he made another box that was called the Apple I computer. Wozniak and
Jobs were able to sell 50 units of computers in San Francisco Bay area for $666
total.
Best Feature:
 Apple became the most rapid-growing companies in the United States and spread
across the nation through 100 dealers.
 Apple sells different variety of products and services.

Internal Environment Assessment
Management
 Apple has no presidents of divisions and no SBU’s
Human Resource
 The stores employ experienced and knowledgeable personnel who provide product
advice service and training.
Operation/Production
 Apple sold $4.69 million iPads the first quarter of 2011.
 Apple’s iPad, iPhone and new versions of the Mac helped Apple replace Microsoft as
the world’s most valuable technology in 2010.
 The company operated 317 retail stores.
 Sell 50 units of computers in the San Francisco Bay area for $666 total.
 Apple launched Macintosh which initially sold very well
 Apple Macintosh soon declined due to its high price and limited range of software
titles.
 Apple introduced power book, a 17-pound machine with a 12 hour battery.
 Apple continues to innovate its core Mac desktop and laptop computers.
Finance
 Apple’s digital music players (iPod) and online music store (iTunes) make millions
for the company.

 Apple gets more than half of its sales from outside the United States.
 Apple’s revenue increased a whopping 52% in 2010, while its net income increased
70%
 Apple has zero long-term debt on its balance sheet
 Company’s sale from America increased 29%, from Europe increased 58% and retail
sales from its own stores increased 47%
Marketing
 Apple’s iPad tablet computer is a blockbuster success.
 Apple offers wide range of product
 Apple markets its product in many ways.
 Apple invest heavily in marketing and promotional campaigns using direct mail, print
media, TV commercials, internet advertising, product placements and social
networking websites,
 Apple is arguably the most successful company ever in many aspects.
External Environment Assessment
1. TASK ENVIRONMENT
Customer
 Direct contact with its target customer is one of the best way to
demonstrate the advantages of its product over those of its
competitors.
Competitors
 Hewlett-Packard (HP), Dell, Xerox, NCR, IBM, Microsoft Corp.

2. SOCIETAL ENVIRONMENT
Demographic Profile
 Apple is arguably the most successful company ever in many aspects.
 The stores come in various sizes and locations, such as high-traffic
shopping malls or urban shopping districts.
Economic Environment
 Apple became the most valuable company in the world.
 Apple replace Microsoft as the world’s most valuable technology in
2010
 Apple gets more than half of its sales from outside the United States.
 Apple became one of the most rapid-growing company in U.S and
spread across the nation
Competition
 Dell’s sales to consumers declined 7.5%
 Microsoft windows sales fell 4.4% to $4.45 billion that first quarter
of 2011.
 In 2010, the company’s market capitalization surpassed Microsoft.
 HP offers many products and services that compete with Apple.
 HP’s personal systems segment group, which competes with Apple
computer is the second largest contributing segment in the
organization yet ranks as the fifth-most-profitable segment.

 Dell offers a broad range of products and services that competes with
Apple.
 Dell’s greatest strength is its ability to drive down cost through its
direct sales approach.
 Dells computer are manufactured once an order has been received
thus reducing inventory and warehousing expenses.
 Dell has nearly perfected the cost and quality control.
 Mac’s operating system far superior to windows
 Microsoft has continued to be a serious competitor to apple.
 Apple is once again getting the best of bitter rival Google
 Apple being the premier “first mover” in any industry.
 Rival firms across the globe are getting better at quickly duplicating
successful Apple products and offering those newly enhanced
products at lower prices.

Chapter 2
Strategic Formulation
PRESENTATION OF EXTERNAL AND INTERNAL FACTORS
External Factors Matrix
# External Factors Description Description Reference

Apple opened its two newest stores on August 13, 2011 in
1 Strengtht Demographic Environment
Anchorage, Alaska, and Murray, Uttah.
The stores come in various sizes and locations, such as high-traffic
2 Strengtht Demographic Environment
shopping malls or urban shopping districts.
3 Apple became the most valuable company in the world. Opportunity Economic Environment
4 Dell’s sales to consumers declined 7.5% Opportunity Competition

Microsoft windows sales fell 4.4% to $4.45 billion that first quarter
5 Opportunity Competition
of 2011.
6 In 2010, the company’s market capitalization surpassed Microsoft. Strength Competition
7 HP offers many products and services that compete with Apple. Threat Competition
HP’s personal systems segment group, which competes with Apple
8 computer is the second largest contributing segment in the Threat Competition
organization yet ranks as the fifth-most-profitable segment.
Dell offers a broad range of products and services that competes
9 Threat Competition
with Apple.
Dell’s greatest strength is its ability to drive down cost through its
direct sales approach.
Dells computer are manufactured once an order has been received
thus reducing inventory and warehousing expenses.
12 Dell has nearly perfected the cost and quality control. Threat Competition
13 Mac’s operating system far superior to windows Strengtht Competition
14 Microsoft has continued to be a serious competitor to apple. Threat Competition

15 Apple is once again getting the best of bitter rival Google Threat Competition
16 Apple being the premier “first mover” in any industry. Strengtht Competition
17 Rival firms across the globe are getting better at quickly duplicating Threat Competition
successful Apple products and offering those newly enhanced
products at lower prices.
18 Apple replace Microsoft as the world’s most valuable technology in Strengtht Economic Environment
2010
19 Apple gets more than half of its sales from outside the United Economic Environment
Opportunity
States.
20 Apple became one of the most rapid-growing company in U.S and Economic Environment
Opportunity
spread across the nation

Internal Factors Matrix
# Internal Factors Description Description Reference
1 Apple has no presidents of divisions and no SBU’s Weakness Management

The stores employ experienced and knowledgeable
2 Strengtht Human Resource
personnel who provide product advice service and training.
3 Apple sold $4.69 million iPads the first quarter of 2011. Strengtht Operation/Production
Apple’s iPad, iPhone and new versions of the Mac helped
4 Apple replace Microsoft as the world’s most valuable Strengtht Operation/Production
technology in 2010.
Apple sells its product globally through its retail stores,
5 Strengtht Operation/Production
online stores and direct sales force.
6 The company operated 317 retail stores. Strengtht Operation/Production
Sell 50 units of computers in the San Francisco Bay area
for $666 total.
8 Apple launched Macintosh which initially sold very well Strengtht Operation/Production
Apple Macintosh soon declined due to its high price and
9 Weakness Operation/Production
limited range of software titles.
Apple introduced power book, a 17-pound machine with a
12 hour battery.
Apple continues to innovate its core Mac desktop and
laptop computers.
Apple’s digital music players (iPod) and online music
12 Strengtht Finance
store (iTunes) make millions for the company.
Apple gets more than half of its sales from outside the
13 Opportunity Finance
United States.
14 Apple’s iPad tablet computer is a blockbuster success. Opportunity Marketing
Apple’s revenue increased a whopping 52% in 2010, while
15 Strengtht Finance
its net income increased 70%
Opportunity/
16 Apple has zero long-term debt on its balance sheet Finance
Strengtht
Company’s sale from America increased 29%, from
17 Europe increased 58% and retail sales from its own stores Strengtht Finance
increased 47%
18 Apple offers wide range of product Strengtht Marketing
19 Apple markets its product in many ways. Strengtht Marketing

Apple invest heavily in marketing and promotional
campaigns using direct mail, print media, TV
20 Strengtht Marketing
commercials, internet advertising, product placements and
social networking websites.
Apple is arguably the most successful company ever in
21 Opportunity Marketing
many aspects.

CRITICAL FACTOR EVALUATION MATRIX
Critical External Factors Evaluation Matrix
Weighted
# TN Critical factors Weight Rate
Score
1 EF7 HP offers many products and services that compete with Apple. .05 3 0.15
HP’s personal systems segment group, which competes with
2 EF8 Apple computer is the second largest contributing segment in .10 3 0.30
the organization yet ranks as the fifth-most-profitable segment.
Dell offers a broad range of products and services that competes
3 EF9 .10 3 0.30
with Apple.
EF1 Dell’s greatest strength is its ability to drive down cost through
4 .15 4 0.60
0 its direct sales approach.
EF1 Dells computer are manufactured once an order has been
5 .05 3 0.15
1 received thus reducing inventory and warehousing expenses.
EF1
6 Dell has nearly perfected the cost and quality control. .15 4 0.60
2
EF1
7 Microsoft has continued to be a serious competitor to apple. .15 4 0.60
4
EF1
8 Apple is once again getting the best of bitter rival Google .10 4 0.40
5
EF1
9 Apple being the premier “first mover” in any industry. .10 4 0.40
6
Rival firms across the globe are getting better at quickly
EF1
10 duplicating successful Apple products and offering those newly .05 3 0.15
7
enhanced products at lower prices.
Total Weighted Average Score 1.00 3.65
Rating Description:
4.00= Strongly Responding 2.00= Responding
3.00= Moderately Responding 1.00= Not Responding
INTERPRETATION:
Critical external factor’s 10, 12, and 14 has the highest weighted score with 0.60,
followed by critical external factor’s 15 and 16 with a weighted score of 0.40, followed by
critical external factor’s 8 and 9 with a weighted score of 0.30, followed by critical external
factor’s 7, 11, and 17 with a weighted score of 0.15 while the total weighted average score of
the critical external factors is 3.65. The listed external factors are considered critical external
factors of the Apple,Inc because these factors are all referring to the competition of the

company which will be needing too much attention for the company to consistently change
their standards and to eliminate their company’s competitor in the business industry.
Critical Internal Factors Matrix
Weighted
# TN Critical factors Weight Rate
Score
1 IF1 Apple has no presidents of divisions and no SBU’s .15 2 0.30
Apple’s iPad, iPhone and new versions of the Mac helped
2 IF4 Apple replace Microsoft as the world’s most valuable .05 4 0.20
technology in 2010.
Apple sells its product globally through its retail stores, online
3 IF5 .10 4 0.40
stores and direct sales force.
4 IF8 Apple launched Macintosh which initially sold very well .10 4 0.40
Apple Macintosh soon declined due to its high price and
5 IF9 .10 2 0.20
limited range of software titles.
IF Apple continues to innovate its core Mac desktop and laptop
6 .10 3 0.30
11 computers.
IF
7 Apple has zero long-term debt on its balance sheet .10 4 0.40
16
IF
8 Apple offers wide range of product .10 4 0.40
18
IF
9 Apple markets its product in many ways. .10 4 0.40
19
Apple invest heavily in marketing and promotional campaigns
1 IF using direct mail, print media, TV commercials, internet
.10 4 0.40
0 20 advertising, product placements and social networking
websites.
Total Weighted Average Score 1.00 3.40
Rating and Description:
4.00= Major Strength 2.00= Minor Weakness

3.00= Minor Strength 1.00= Major Weakness
INTERPRETATION:
Critical internal factor’s 5, 8, 16, 18, 19, and 20 has the highest weighted score with
0.40, followed by critical internal factor’s 1 and 11 with a weighted score of 0.30, followed
by critical internal factor’s 4 and 9 with a weighted score of 0.20 while the total weighted
average score of the critical internal factors is 3.40. The listed internal factors are considered

critical internal factors of Apple,Inc for these factors are highly needing much attention from
the company in order to maintain a smooth competitive operation and production and highly
profitable company and also to maintain its status in the business industry.
Competitive Profile Evaluation Matrix
HEWLETT-
APPLE,Inc DELL MICROSOFT
PACKARD
Weighted Weighted Weighted Weighted
# Critical Factors Weight Rate Rate Rate Rate
Score Score Score Score
1 Price Affordability 0.10 2 0.20 4 0.40 4 0.40 3 0.30
2 Product Variety 0.25 4 1.00 4 1.00 4 1.00 3 0.75
3 Accessibility 0.20 4 0.80 4 0.80 4 0.80 4 0.80
4 Service Quality 0.20 4 0.80 3 0.60 3 0.60 4 0.80
5 Brand Recognition 0.25 4 1.00 4 1.00 4 1.00 4 1.00
Total Weighted Average Score 1.00 3.80 3.80 3.80 3.65
INTERPRETATION:
Hewlett-Packard (HP) and Dell’s have the highest total weighted average score which
is 3.80. Hewlett-Packard (HP) and Dell’s highest critical factors are product variety and
brand recognition with a weighted score of 1.00 and its lowest critical factors is price
affordability with a weighted score of 0.40. The product variety and brand recognition of
both company will help them to attract many customers for they provide many choices to for
them to choose when buying, but with the service quality this is one of the set standard of a
customer because with service quality, your customers will surely buy another product on the
company for they we’re satisfied and that may lead to more customers and more profits for
the company.
SWOT Matrix Analysis

Grouping of Strategies
Strategy Group SN Activity Description

Market SO1 Apple may open another retail stores on other countries and
Development introduce their products.
SO2 Apple should produce more Macintosh to gain more profit.
ST1 Apple needs to undergo their products again into quality and service
Product check-up to surely release their product with the most perfect
Development quality of product in the industry.
ST2 Apple should promote their products uncostly through social
medias to attract more customers easily and to gain more profit.
WO2 Apple needs to produce a Macintosh that still has a good quality
using another cheaper apparatus and materials on making the
Retrenchment
Macintosh to regain its declining sales of that product and sell it for
cheaper price.
Related WT1 Apple may launch another product to prevail with their competitors
Diversification existing products sales.
WO1 Apple should promote their existing employees who are qualified to
Service operate/handle their assigned position.
Development WT2 Apple may hire experts and ask for advice on how to subdue
Microsoft.
Qualitative Evaluation of Strategies
Strategy 1
Strategy Advantages Disadvantages
Market Development Increase target market More building and utility expense
Product Development Increase in sales More expenses producing the product.
Retrenchment More work on finding high quality but

Regain its declining sales
cheaper apparatus and materials
Related Be able to defeat competitors Another expenses for producing the
Diversification existing sales product
Service Development Increase control over

Professional expenses
competitors

Quantitative Strategic Planning Matrix

Chapter 3
RECOMMENDATION
STATEMENT OF RECOMMENDATION AND STRATEGY IMPLEMENTATION
EVALUATION AND CONTROL
Vision Statement:
Apple is committed to bring the best personal computing experience to students,
educators, creative professionals, and consumer around the word through its innovative
hardware, software, and Internet offerings.
Mission Statement:
Apple computer is committed to protecting the environment, health, and safety of our
employees, customers, and the global communities where we operate.
Strategy Direction #1: SO2 Apple should produce more Macintosh to gain more profit.
Activity 1
Performanc
Program/Activit Othe
Key Result Area e Timeline Key Person Budget
y r
Indicator
The Apple,Inc will
increase in number Operation
Hire more skilled
of customers and Increase in manager/
employees to
will gain more profit company April, Human $3,000,00
produce more
from producing of profit by 2019 resource 0
Macintosh
more Macintosh 90% managemen
efficiently.
because it really t
sells very well.

Strategy Direction #2: ST1 Apple needs to undergo their products again into quality and
service check-up to surely release their product with the most perfect quality of product in
the industry.
Activity 2
Performance Program/Activit Timelin Key Othe
Key Result Area Budget
Indicator y e Person r
The company will
maintain its status in
the industry as the most
The product’s Company will
successful company in Operatio
quality will thoroughly check March, $3,000,00
the world and their n
increase by its quality and 2019 0
products will be more Manager
95%. control process.
high quality because of
the thorough
inspection.
Strategy Direction #3: ST2 Apple should promote their products uncostly through social
medias to attract more customers easily and to gain more profit.
Activity 3
Performance Timelin Key
Key Result Area Program/Activity Budget Other
Indicator e Person
Increase in numbers of
customers conveniently
Increase in
for social medias is the Hire experts on
number of
best medium to promote promoting March, Marketing
customers and $100,000
the products efficiently products on social 2019 department
gain profit by
and gain more profit and media
95%.
decrease in promotion
expenses.

Implementation and Control
If the recommended activities won’t be able to achieve because of some
uncontrollable factors beyond the control of the management these are some of the
alternative activities:
 The company may send their present employees to some workshops and seminars on
how to be efficient, effective and skilled employees to cover up the unexpected
problems on the operation especially on the production of the product. These would
make the company to produce a highly standardized product for the employees are well
trained.
 The company may conduct the thoroughly inspection while the product is being
produce in order to check it before and after the product is done producing. With these
the company will efficiently produce the products while it is being checked at the same
time. These will help the company to lessen the production and inspection expenses.
 The company may use their own company employees by creating a competition
between them on making a creative promotional idea using social medias with these the
company would easily gather more ideas because of the entries of the employees. These
would lessen the marketing expenses for these are their own company employees.

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Chapter 1

 Business name: APPLE,Inc

 Business industry: COMPUTER HARDWARE

 Business type: TECHNOLOGIES

 Owner of the business: STEVE WOZNIAK and STEVE JOBS

 Current standing in the market: FIRST TO BE A BLOCKBUSTER;

SUCCESFUL NEW PRODUCTS; MOST SUCCESFUL COMPANY

 The coworker relationship started when Wozniak successfully created building

 Apple is committed to bring the best personal computing experience to students,

innovative hardware, software, and Internet offerings.

Strategic Management Plan for: APPLE, Inc, S.Y.2018-2019 1

 Apple computer is committed to protecting the environment, health, and safety of

our employees, customers, and the global communities where we operate.

 Integrating sound environmental, health, and safety management practices.

 Offer technologically innovative products and services while conserving and

enhancing resources for the future generations.

 Continuous improvement in our environmental, health, and safety management

 Wozniak successfully created building boxes to make free long-distance calls,

across the nation through 100 dealers.

 Apple sells different variety of products and services.

Strategic Management Plan for: APPLE, Inc, S.Y.2018-2019 2

 Apple has no presidents of divisions and no SBU’s

advice service and training.

 Apple sold $4.69 million iPads the first quarter of 2011.

the world’s most valuable technology in 2010.

 The company operated 317 retail stores.

 Apple launched Macintosh which initially sold very well

 Apple introduced power book, a 17-pound machine with a 12 hour battery.

for the company.

Strategic Management Plan for: APPLE, Inc, S.Y.2018-2019 3

 Apple has zero long-term debt on its balance sheet

sales from its own stores increased 47%

 Apple’s iPad tablet computer is a blockbuster success.

 Apple offers wide range of product

 Apple markets its product in many ways.

media, TV commercials, internet advertising, product placements and social

 Apple is arguably the most successful company ever in many aspects.

External Environment Assessment

demonstrate the advantages of its product over those of its

 Hewlett-Packard (HP), Dell, Xerox, NCR, IBM, Microsoft Corp.

Strategic Management Plan for: APPLE, Inc, S.Y.2018-2019 4

 Apple is arguably the most successful company ever in many aspects.

 The stores come in various sizes and locations, such as high-traffic

shopping malls or urban shopping districts.

 Apple became the most valuable company in the world.

 Apple replace Microsoft as the world’s most valuable technology in

 Apple became one of the most rapid-growing company in U.S and

spread across the nation

 Dell’s sales to consumers declined 7.5%

 In 2010, the company’s market capitalization surpassed Microsoft.

 HP offers many products and services that compete with Apple.

 HP’s personal systems segment group, which competes with Apple

computer is the second largest contributing segment in the

organization yet ranks as the fifth-most-profitable segment.

Strategic Management Plan for: APPLE, Inc, S.Y.2018-2019 5

direct sales approach.

 Dells computer are manufactured once an order has been received

thus reducing inventory and warehousing expenses.

 Dell has nearly perfected the cost and quality control.

 Mac’s operating system far superior to windows

 Microsoft has continued to be a serious competitor to apple.

 Apple is once again getting the best of bitter rival Google

 Apple being the premier “first mover” in any industry.