Professional Documents
Culture Documents
Apple made a comeback when Steve Jobs came back to Apple in 1997. Then
Apple reached heights before Steve Jobs left the company back in 2011. Jobs once
also made Apple the ‘most valuable company’ when he was in position and made a new
product called iPod in 2004. When iPod was introduced, it sold slowly until late 2004
when customers started to take notice of the product’s value. In 2009, the iPhone
became the product that Apple was selling the most as it was 38% of Apple’s revenue in
2009. In 2014, iPod faded as the customers did not find the use of iPods convenient
because the iPhone had all the features and functions of the iPod as a mobile device.
Management Construct
structure. In his initial year as the CEO of the company, Apple was managed under
profit and loss. The merging of segregated functional departments has jointly become
into one functional organization. The unexpected consolidations from the CEO's
redesigned structure were generated due to its company size and management
construct. However, Apple company grew its revenue with its retained structure.
Strategy/Tactics
From this dogmatic standpoint, market research features regarding requirements and
desires are preferably added to the product capabilities that generate customer desire
and demand growth for Apple company. Aside from the product's efficacy, recognizing
the product's simplicity is one of the potent marketing strategies of the company.
Moreover, Steve Jobs emphasizes the marketing strategy of the Apple company with
regard to the quota of products and fragmentation as well as target consumers also
known as premium product users and perceived attention from the customers.
Furthermore, the strategy effect disseminates all over print media advertisements and
face to face. Apple does not usually use sale promotions for its marketing strategy as
they are one of the top brands for mobile devices and customers will buy their products
regardless.
Client Breakdown
As we all know Apple's recognized branding and popularity across countries, the
Apple product such as the iPhone held accountable in the prominent inception of
smartphones. Being the most valuable product in the technology industry, Apple has
capitalized its market to 2 trillion dollars last year. Apple was formerly recognized for
desktop computers and initiated to use of the graphical user interface or GUI and also
successfully pull off the earliest Macintosh. From these data and results, we may
consider Steve Job as a remarkable innovator in the industry for he has convinced and
taught the people the role and advantage of electronics as a necessity more than a tool.
However, in 1985, Steve Jobs withdrew from Apple, especially during the marketing
feud between Microsoft and Windows producers that created battling product sales.
That was the time Apple had taken the chance to diverge its company not only in
desktop computers but also in iPhones, the tablet is also known as iPad, MacBook as
Market Positioning
The huge growth of the technology industry has rapidly increased and constantly
resolutions are constantly preceded. As one of the leading brands and growing
majority of the industry's players frequently look up to Apple, its new innovations, and
products. This success can be a reference to its robust and successful positioning
based on a variety of factors. Apple portrays itself in the market as a luxury brand that
everyone desires. Certainly, the company's products are not inexpensive, but people,
even those who cannot afford them, will discover methods to obtain Apple items.
Apple also employs a competitive positioning strategy. The competition and market feud
of all leading companies in the technology industry has always been furious and
aggressive. For that matter, Apple has ventured into R&D as well as the annual
launching of new products with new features that will get the attention of target users.
Therefore, Apple become coherent in the sustainable development of new features and
In 2019, Apple's annual cash flow of its operation (69.391 billion dollars) declined
to 10.39% due to the pandemic that happened the same year that caused a shortage of
chips for electronics. A decrease in the cash flow from operating activities means that
there is a decrease in the net income of the company. Which may cause the company
to reduce its total production. In Apple’s case, the global shortage of raw materials
caused the decline of the company’s cash flow in 2019. On the other hand, In the year
2020, an increase in annual cash flow activities was emphasized and computed (80.67
billion dollars). Statistically speaking, the increase from 2019 to 2020 grew to 16.36%. A
recovery from the recent year’s decline. This meant that Apple once again had positive
cash flow and Apple’s liquid assets increased. The company will be able to produce
more for the succeeding year and the company would be able to cover obligations and
Budget Variance
The Capital Asset Pricing Model was employed in Apple's stock research
(CAPM). Through systematic risks of asset return, this will be a guide to estimating the
asset's expected return. The only dissension here is its pricing that has structured
menace, especially with regards to the system of economic efficiency. With no risk,
investors should always be able to broaden their holdings, allowing them to remove all
unsystematic or firm risks. Therefore, companies must not seek a profit from such a
single risk if they also have the choice of dealing in a wide portfolio of investments
instead of a small entity. Because the financial world is not perfect with transaction
Revenue Shortfall
Apple was missing revenue expectations since 2019 due to the shortage of chips
during the pandemic. The shortage of chips was a global effect and Apple was only one
of the many companies that were affected. While it is expected that the shortage would
let up and show improvements mid-2022, the shortage of supplies cost Apple over $6
billion in sales. Other possible causes may include the trade war between China and
Tracking Systems
company gets their raw materials from their suppliers and delivers the materials and
components to their factories. This is the first stage of the process of the production of
their products. Then the company would start manufacturing their products in their
factories after they have all the materials and components they need to produce. The
manufactured products are then shipped directly to their warehouses that are stationed
around the world and for some consumers who order their products online, Apple uses
the services of third-party shippers. When the warehousing is complete, the products
are then distributed to the retail stores, wholesalers and network carriers for the
program that sends their old products back to Apple. An eco-friendly program that can
help Apple salvage some parts of their old products that can be used to make new
products.