ASSIGNMENT ON PRINCIP PRINCIPLE OF MANA LE TOPIC ENVIRONMENTA ENVIRONMENTAL ANALYSIS l ANALYSIS OF APPLE

Apple is the world's largestthe world's largest technology company by revenue totaling $274.5 billion in 2020 and, since January 2021, the world's most valuable company.. As of 2021, App

BANKING ACADEMY MAJOR OF BUSINESS MANAGEMENT

 ASSIGNME  ASSIGNMENT  NT 

ON 

 PRINCIP  PRINCIPLE OF MANA LE OF MANAGERMENT  GERMENT 

   Instructor Instructor : : Nguyen Nguyen Huong Huong GiangGiang

   Class: Class: K22CLCGK22CLCG

   Hanoi, Hanoi, 20202020

I INTRODUCTION 3

1.1 1.1 Internal Internal stakeholders stakeholders 33 1.2 1.2 External External stakeholders stakeholders 33 II II ANALYSIANALYSIS ANS AND EVD EVALUATIOALUATION N 3 3

2.1 2.1 OrgaOrganizatnization ion overvoverview iew 3 3

2.1.1 2.1.1 GeneGeneral ral inforinformatimation on 3 3

2.1.2 2.1.2 StatStatemenement of t of recerecent and current statnt and current state of e of businbusiness ess 5 5

2.2 2.2 Introduction Introduction of enviroof environment nment analysis analysis in Applin Apple Inc e Inc 55 2.3 2.3 EnviEnvironmeronment nt AnalAnalysis.ysis 6 6

2.3.1 2.3.1 InteInternal rnal EnviEnvironmeronments nts 6 6

2.3.2 2.3.2 ExteExternal rnal envirenvironmenonment t 7 7

2.4 2.4 Evaluation Evaluation 1616 2.4.1 Apple’s Strength 16

2.4.2 Apple’s Weakness 16

2.4.3 Apple’s Opportunities 17

2.4.4 Apple’s Threats 17

III CONCLUSION 18

IV LIST OF REFERENCE 19

I INTRODUCTION

Environmental analysis is a strategic tool and it identifies all the external and inte

internal rnal elemelements ents whicwhich h can can affeaffect ct the the organorganizatization’s performaion’s performance nce CorporCorporatioations ns nownow understand that they don’t need to rely only on their home market in order to be sustainable, and increasing presence in other markets will increase sustainability because fai

failurlure e in in a a spespecifcific ic marmarket can ket can be be mitmitigaigated ted witwith h a a subsubseqsequenuent t sucsuccescess s in in anoanothether r  market

The organizational environments

Managers operate in two organizational environments, both made up of various stake- holders The two

stake- holders The two environments are internal stakeholders and external stakeholdersenvironments are internal stakeholders and external stakeholders

1.1

1.1 InternInternal stakehoal stakeholderslders

Whether small or large, the organization to which you belong has people in it who hav

have e an an impimportortant ant stastake ke in in how how it it perperforforms ms TheThese se intinternernal al stastakehkeholdolders ers conconsissist t of of  employees, owners, and the board of directors

1.2

1.2 ExterExternal stakehonal stakeholderslders

The environment outside it, which consists of external stakeholders- people or  group in the

group in the organization’s external environment that are affected by it This environmentorganization’s external environment that are affected by it This environment consists task environment and

consists task environment and general environmentgeneral environment

The task environment consists of 11 groups that present you with daily tasks to han

handledle: : cuscustomtomersers, , comcompetpetitoitors, rs, suppsupplieliers, rs, disdistritributbutorsors, , strstrateategic gic allalliesies, , empemployloyeeee

organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media

Beyond the task environment is the general environment, or macroenvironment, which includes six

which includes six forces: economic, technological, sociocultural, demographic, political-forces: economic, technological, sociocultural, demographic, political-legal, and international

II ANAANALYSILYSIS AND EVALS AND EVALUATUATIONION 2.1

2.1 OrganOrganizatiization overviewon overview  II.1.1 General information

Apple Inc is an American multinational technology company that specializes in consumer electronics, computer software, and online services Apple is

consumer electronics, computer software, and online services Apple is the world's largestthe world's largest technology company by revenue (totaling $274.5 billion in 2020) and, since January

2021, the world's most valuable company As of 2021, Apple is the world's fourth-largest

PC vendor by unit sales, and fourth-largest smartphone manufacturer It is one of the Big Fi

Five ve AmeAmericrican an infinformormatiation on tetechnchnoloology gy comcompanpanieies, s, aloalong ng witwith h AmaAmazonzon, , GooGooglegle,, Microsoft, and Facebook

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 to develop and sell Wozniak's Apple I personal computer It was incorporated by Jobs and Wozniak as Apple Computer, Inc in 1977, and sales of its computers, including the Apple II, grew quickly It went public in 1980 to instant financial success Over the next few years, Apple shipped new computers featuring innovative graphical user interfaces, such as the original Macintosh, announced with the critically acclaimed advertisement

"1984" However, the high price of its products and limited application library caused  problems, as

 problems, as did power did power struggles between struggles between executives In executives In 1985, Wozniak 1985, Wozniak departed Appledeparted Apple amicably, while Jobs resigned to found NeXT, taking some Apple co-workers with him

As the market for personal computers expanded and evolved through the 1990s, Apple lost considerable market share to the lower-priced duopoly of Microsoft Windows

on Intel PC clones The board recruited CEO Gil Amelio, who prepared the struggling company for eventual success with extensive reforms, product focus and layoffs in his 500-day tenure In 1997, Amelio bought NeXT, to

500-day tenure In 1997, Amelio bought NeXT, to resolve Apple's unsuccessful operatingresolve Apple's unsuccessful operating system strategy and bring back Steve Jobs, who replaced Amelio as CEO later that year App

Apple le retreturnurned ed to to proprofitfitabiabilitlity y undunder er ththe e revrevitaitalizlizing ing "Th"Think ink difdifferferentent" " camcampaipaign,gn, launching the iMac and iPod, opening a retail chain of Apple Stores in 2001, and acquiring numerous companies to broaden their software portfolio In 2007, the company launched the iPhone to critical acclaim and financial success In 2011, Jobs resigned as

CEO due to health complications, and died two months later He was succeeded by Tim Cook

In August 2018, Apple became the first

In August 2018, Apple became the first publicly traded U.S company to be valuedpublicly traded U.S company to be valued

at over $1 trillion and the first

at over $1 trillion and the first valued over $2 trillion two years later It has a valued over $2 trillion two years later It has a high level of high level of   brand loyalty and is

 brand loyalty and is ranked as the ranked as the world's most valuable brand; as world's most valuable brand; as of January 2021, of January 2021, therethere are

are 1.61.65 5 bilbilliolion n AppApple le proproducducts ts in in use use worworldwldwideide HowHoweveever, r, the the comcompanpany y recreceiveiveses significant criticism regarding the labor practices of its contractors, its environmental  practices,

 practices, and and business business ethics, ethics, including including anti-competitive anti-competitive behavior behavior and and materialsmaterials sourcing

 II.1.2 Statement of recent and current statStatement of recent and current state of businesse of business

Apple today announced financial results for its fiscal 2021 third quarter ended June 26, 2021 The Company posted a June quarter record revenue of $81.4 billion, up 36  percent year over y

 percent year over year, and quarterly eaear, and quarterly earnings per diluted share of $1rnings per diluted share of $1.30 30

“This quarter, our teams built on a period of unmatched innovation by sharing  powerful new products wi

 powerful new products with our users, at a time when using tth our users, at a time when using technology to connect peoplechnology to connect peoplee everywhere has never been more important,” said Tim Cook, Apple’s CEO “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”

“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO “We generated $21 billion of operating cash flow, returned nearly $29  billion

 billion to to our our shareholders shareholders during during the the quarter, quarter, and and continued continued to to make make significantsignificant investments across our business to support our

investments across our business to support our long-term growth plans.”long-term growth plans.”

Apple’s board of directors has declared a cash dividend of $0.22 per share of the Company’s common stock The dividend is payable on August 12, 2021 to shareholders

of record as of the close of business on August 9, 2021

Apple will provide live streaming of its Q3 2021 financial results conference call  beginning

 beginning at at 2:00 2:00 p.m p.m PT PT on on July July 27, 27, 2021 2021 at at apple.com/investor/apple.com/investor/earnings-call earnings-call ThisThis webcast will also be available for

webcast will also be available for replay for approximately two weeks thereafter.replay for approximately two weeks thereafter

II II.2.2 InIntrtrooduducctitioon n of of eenvnvirirononmement nt ananalalysysis is in in ApApplple e InIncc

Apple is one of the best-known tech companies all over the world To obtain this goal, Appl

goal, Apple Inc e Inc not only needs to not only needs to underunderstand deepstand deeply their company but alsoly their company but also externalexternal factors in the global market For instance, Covid-19 has spread rapidly throughout the wor

world, ld, propromptmpting ing govgovernernmenments ts and and busbusineinessesses s to to taktake e unpunprecrecedeedentented d meameasursures es inin re

resposponsnse e FoFollllowowining g ththe e ininititiaial l ououtbtbrereak ak of of ththe e vivirurus, s, ththe e CoCompmpanany y exexpeperirienencecedd dis

disrupruptiotions ns to to its its manmanufaufactucturinring, g, suppsupply ly chachain in and and loglogististicaical l serservicvices es proprovidvided ed byby outsourcing partners, resulting in temporary iPhone supply shortages that affected sales wor

worldwldwideide HowHowevever, er, thathanks nks to to envenviroironmenmentantal l anaanalyslysis, is, the the ComCompanpany y belbelievieves es itsits exi

exististing ng balbalancances es of of cacash, sh, cascash h equequivaivalenlents ts and and mamarkerketabtable le secsecuriuritieties, s, aloalong ng wiwithth com

commermercicial al pappaper er and and othother er shoshort-rt-terterm m liqliquiduidity ity arrarrangangemeementnts, s, wiwill ll be be sufsufficficienient t toto satisfy its working capital needs, capital asset purchases, dividends, share repurchases, debt repayments and other liquidity requirements associated with its existing operations

To be more specific, Apple Ins ascertains whether the goals defined are achievable or  not, with the present strategies If is not possible to reach those goals with the existing str

strateategiegies, s, thethen n new new strstrateategiegies s are are devdeviseised d or or old old oneones s arare e modmodifiified ed accaccordordingingly.ly Moreover, environmental analysis helps in the detection of threats even uncertainty at an early stage which assists the organization in developing strategies for its survival

early stage which assists the organization in developing strategies for its survival AddingAdding

to that, it

to that, it identifies opportunities, namely prospective customers, new products, sidentifies opportunities, namely prospective customers, new products, segmentsegments and technology to occupy a maximum share of the

and technology to occupy a maximum share of the market than its competitors.market than its competitors

Even though it consists of such capabilities there occur various trends in the general environment that causes the threats which pull down the progress and success of  the firm These threats can be marginalized only with the help of appropriate planning and suitable action which concentrates more on

and suitable action which concentrates more on the value-added core competencies in thethe value-added core competencies in the  business This may lead th

 business This may lead the company to produce vae company to produce valuable products and servicluable products and services leads to aes leads to a mounting opportunity for the shareholders and customers

IIII 33 EEnnvviirroonnmmeennt t AAnnaallyyssiiss  II.3.1 Internal Environments

The main internal stakeholders of Apple are the Board of Directors, executives, employees, and shareholders Its top executive positions are CEO, Senior Vice President, Vic

Vice e PrPresiesidendent, t, and and ChiChief ef OpeOperatrating ing OfOfficficer er ManMany y anaanalysistlysists s arargue gue thathat t effeffecectivtivee leadership has been a key to the global success of Apple Steve Jobs’ leadership played a  big

 big role role in in shaping shaping the the company’s company’s future, future, though though his his leadership leadership style style was was sometimessometimes  branded as aggressive

Apple has more than 80.000 full time employees all over the world whereas the engaged people are more than 5 million Apple employees the best human resources in the world and provides them with the facility to improve their skills Apple’s employees also play a big role in

also play a big role in growing success Apple is world renowned for the aesthetic designsgrowing success Apple is world renowned for the aesthetic designs

of its products Therefore, it can be easily imagined what role the design team plays It is worth noting that Apple is very secretive about its designs and the design team works under very strict terms and conditions

Apple has both individual and institutional shareholders Some of its executives have shares worth millions of dollars Some of its top institutional shareholders are the Vanguard Group, BlackRock, and Berkshire Hathaway… It is worth mentioning that some of the largest shareholders of Apple are mostly former or current employees and investment companies

 II.3.2 External environment  The Task environment 

  Customers

App Apple le doedoes s not not use use cuscustomtomer er behbehaviavior or resresearearch ch in in proproducduct t devdeveloelopmepment, nt, thethe research of behavior is their tool of marketing Apple uses the information to gain essential insight into the consumer and what directs the purchase behavior The research

on consumers provides specific insight

on consumers provides specific insight involving affect and cognition, customer behavior involving affect and cognition, customer behavior 

and customer environment that the company can reach their target market effectively It will lead to the development of sales and customer service

Another one is feedback of customers In 1997, the founder of Apple, Steve Jobs spoke to attendees of Apple Worldwide Developer Conference where he clearly stated

that customer must be the center of the company In recent years, Apple has concentrated

on

on cucuststomomer er sasatitisfsfacactition on raranknkining g ThThis is is is onone e of of ththeieir r sosoururceces s fofor r ththeieir r prprododucuctsts innovation and development Feedback surveys have proven to be a significantly useful way for Apple to collect customer insight One of the most important metrics for Apple is  Net Promoter Sc

 Net Promoter Score The feedback iore The feedback includes an Net Pncludes an Net Promoter Score, beside aromoter Score, beside an open-endedn open-ended follow up question: “Anything else on your mind?” Most recently, Apple has collected  NPS responses to measure custom

 NPS responses to measure customer satisfaction with its new Aer satisfaction with its new Apple Watch NPS resepple Watch NPS researcharch has provided the company with valuable insights into its latest product

By listening and considering customer needs, Apple can create and launch exactly what they want and expect It is one of the most reasonable answers for the question

“Why is Apple the

“Why is Apple the industry leader?”.industry leader?”

•• SSuupppplliieerr

Apple does not manufacture by itself It has over 200 suppliers that produce components for its assembly

Apple is managing one of the most efficient supply-chain management systems on the market The supply-chain of Apple accounts for about 98% of its procurement Some  prominent

 prominent suppliers suppliers of of the the firm firm are: are: Foxconn Foxconn - - one one of of the the oldest oldest and and largest largest suppliers,suppliers, Wistron, Pegatron in Taiwan; Goertek, Luxshare in China; Qualcomm, Intel in USA; Murata Manufacturing Ltd in Japan; Samsung in Korea…

With its brand reputation and the global reach, Apple totally has high-quality  product demand and imposes stricter terms on its supply By outsourcing its supply-chain and assembly operations, Apple can focus on its product designs for a

and assembly operations, Apple can focus on its product designs for a great multifunctiongreat multifunction and friendliness to customers

•• DDiissttrriibbuuttoorrss

Apple has its own retail store system as Apple has its own retail store system as Apple Store The customers of the firm areApple Store The customers of the firm are all over the world but there are only 510 stores in 22 countries The system cannot meet the demand and serve over the world To solve the problem of distribution, Apple has  partnered

 partnered with with major major retailers retailers to to sell sell their their product product in in an an official official capacity capacity called called AppleApple Authorized Resellers These stores can offer Apple products with personnel trained on  basics to help custome

 basics to help customers to find what they wrs to find what they want.ant

Ap Applple e AuAuththororizized ed ReResesellllerers s plplay ay a a prprimime e rorole le in in ApApplple’e’s s sasale le ststraratetegy gy anandd represent

represent a large portion a large portion of sales of of sales of Apple products wApple products worldwide.orldwide

•• CCoommppeettiittoorr

Apple has innovated and developed many kinds of technology devices It is the reason why the operation has many competitors in different field In the Computer  Manufacturers, Dell Technologies, Lenovo Group, HP Inc., Sony Corp and ASUSTeK  Computer Inc are primary competitors In the Smartphone Manufacturers, the biggest competitor of Apple is Samsung – the

competitor of Apple is Samsung – the largest smartphone company accounting for 21.2%largest smartphone company accounting for 21.2%

of the global market

As we can see here, most of Apple's competitors are the big companies in their  own field This leads to the competition about the quality of products, the percentage in the global market at the lowest cost… Apple needs to boost their quality to expand their  market target and improve the value of business by investing more in R&D and meet the dem

demand and of of useusers rs The The cocompempetittition ion alsalso o helhelp p the the indindustustry ry devdeveloelopmepment nt whewhen n eveeveryry company want to create their own

company want to create their own competitive advantages.competitive advantages

•• StStrarattegegic ic AlAllilianancecess

One of the most significant factors that is responsible for the development of a firm is the strategic alliances They help the firm in increasing the value of product in minds of customer Also, firms can easily access markets to offer their products and services Sharing expertise knowledge with each other can cover and acquire knowledge

in their operations 2 partners can share the technological capabilities Last but not least, the firm’s financial can be strengthened so it can focus

the firm’s financial can be strengthened so it can focus on new creation.on new creation

Apple has partnered with different companies in different fields In consulting and systems integration, Accenture supports Apple to transform how enterprise clients match with customers using iPhone and iPad In addition, Deloitte maximized Apple devices such as iPhone and iPad by providing EnterpriseNext two-week solution – focused

workshops and EnterpriseNext Value Map Last but not least, IBM – one of the oldest  partners

 partners of of Apple, Apple, help help the the business business transform transform global global business business through through their their customcustom mobile app by using IBM Garage Methodology, Apple dedicated Garage and Studios, IBM Solution for Apple and the cutting-edge of Apple tool In the area of enterprise  business

 business apps, apps, Salesforce Salesforce is is innovating innovating their their client client experience experience on on iPhone iPhone and and iPad iPad byby mixing the world’s number one CRM with the world’s most advanced mobile operating sys

system tem for for busbusineiness ss BesBesideides, s, SAP SAP supsupporports ts corcore e busbusineiness ss proprocescesses ses on on the the AppApplele  platform from

 platform from their employees their employees to customers to customers experience The last experience The last partnership of partnership of Apple isApple is

in Networking, Security and Collaboration with Cisco The company provides leading, networking, security and collaboration solutions for

networking, security and collaboration solutions for Apple products.Apple products

•• LLaabboor r uunniioonnss

Th The e BiBig g TeTech ch cocompmpananieies s lilike ke ApApplple e hahave ve lilimimiteted d rerecocogngnititioion n of of woworkrker er  organtiations Apple does not recognize any trade union in the USA, but the company recognizes some unions and work councils in Europe, and a

recognizes some unions and work councils in Europe, and a union in Japan.union in Japan

However, in 2011, an employee of an Apple Store – Cory Moll created the Apple Retail Workers Union in San Francisco, referring to compensation, pay, benefits and hiring processes as motivation

Lately, a Twitter account was created under the name #AppleToo by a group of  Apple employees to require a workplace condition improvement The staff of Apple are encouraged to email appletoo@protonmail.com if they want to join the effort The group

is where people told their story when working at a company and showed what they expected Apple to change In a conversation with a media organization, they are planning

to create a formal union which could collectively bargain for legally enforceable changes

at Apple