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Past Trajectory & Results

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

In 1997, Steve Jobs re-emergence and established divided units of Apple's

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

According to Steve Job, "Customers are always perplexed within discernments".

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

well as Wearable and Home accessories.

Market Positioning

The huge growth of the technology industry has rapidly increased and constantly

improved. Supplemental products with high technology features and improved

resolutions are constantly preceded. As one of the leading brands and growing

companies in the leading companies of the contemporary technology industry, the

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's positioning to build a connection with its clients through outstanding

experiences is an excellent strategy, particularly in this type of competitive business.

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

technologies while maintaining its eccentricity.


Monthly Cash Flow Budget

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

Apple would also be able to reinvest in their business. 

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

costs, taxes, and so on. 

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

The United States.

Tracking Systems

Apple’s supply chain management process takes place by Sourcing. The

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

customers to buy. Apple also offers their customers to participate in a recycle/reuse

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.

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