Apple is the 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 f
Trang 1BANKING ACADEMY MAJOR OF BUSINESS MANAGEMENT
ASSIGNMENT
ON
PRINCIPLE OF MANAGERMENT
TOPIC: ENVIRONMENTAL ANALYSIS OF APPLE
Instructor : Nguyen Huong Giang Group: 5
Class: K22CLCG
Trang 2I INTRODUCTION 3
1.1 Internal stakeholders 3
1.2 External stakeholders 3
II ANALYSIS AND EVALUATION 3
2.1 Organization overview 3
2.1.1 General information 3
2.1.2 Statement of recent and current state of business 5
2.2 Introduction of environment analysis in Apple Inc 5
2.3 Environment Analysis 6
2.3.1 Internal Environments 6
2.3.2 External environment 7
2.4 Evaluation 16
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
Trang 3I INTRODUCTION
Environmental analysis is a strategic tool and it identifies all the external and internal elements which can affect the organization’s performance Corporations now 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 failure in a specific market can be mitigated with a subsequent success in another market.
The organizational environments
Managers operate in two organizational environments, both made up of various stake- holders The two environments are internal stakeholders and external stakeholders
1.1 Internal stakeholders
Whether small or large, the organization to which you belong has people in it who
have an important stake in how it performs These internal stakeholders consist
of employees, owners, and the board of directors
1.2 External stakeholders
The environment outside it, which consists of external stakeholders-people or group in the organization’s external environment that are affected by
it This environment consists task environment and general environment
The task environment consists of 11 groups that present you with daily tasks
to handle: customers, competitors, suppliers, disttributors, strategic allies, employee
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 forces: economic, technological, sociocultural, demographic, political-legal, and international.
Trang 4II ANALYSIS AND EVALUATION 2.1 Organization 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 the 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 Five American information technology companies, along with Amazon, Google,, 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 did power struggles between executives In 1985, Wozniak departed 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 resolve Apple's unsuccessful operating system strategy and bring back Steve Jobs, who replaced Amelio as CEO later that year Apple returned to proffitabillity under the revitalizing "Think different" campaign, 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
Trang 5CEO due to health complications, and died two months later He was succeeded
by Tim Cook.
In August 2018, Apple became the first publicly traded U.S company to be valued
at over $1 trillion and the first valued over $2 trillion two years later It has a high level of
brand loyalty and is ranked as the world's most valuable brand; as of January 2021, there are 1.65 billion Apple products in use worldwide However, the company receives
significant criticism regarding the labor practices of its contractors, its environmental practices, and business ethics, including anti-competitive behavior and materials sourcing.
II.1.2 Statement of recent and current state 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 year, and quarterly earnings per diluted share of $1.30.
“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people 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 to our shareholders during the quarter, and continued to make significant investments across our business to support our 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.
Trang 6Apple will provide live streaming of its Q3 2021 financial results conference call beginning at 2:00 p.m PT on July 27, 2021 at apple.com/investor/earnings-call This webcast will also be available for replay for approximately two weeks thereafter.
II.2 Intrtroducctitioon of environment analalysis in Applple Inc
Apple is one of the best-known tech companies all over the world To obtain this goal, Apple Inc not only needs to understand deeply their company but also external
prompting governments and businesses to take unprecedented measures in responsnse Followining the inititiaial outbreak of the virus, the Companany expeperirienenceced disruptions to its manufacturing, supply chain and logiistical services provided by outsourcing partners, resulting in temporary iPhone supply shortages that affected sales worldwide However, thanks to environmental analysis, the Company believes its
exissting balances of cash, cash equivalents and marketable securities, along with commercial paper and other short-term liquidity arrangements, will be sufficient to 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 strategies, then new strategies are devised or old ones are modified accordingly 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 Adding to that, it identifies opportunities, namely prospective customers, new products, segments and technology to occupy a maximum share of the 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 the value-added core competencies in the business This may lead the company to produce valuable products and services leads to a mounting opportunity for the shareholders and customers.
Trang 7II.3 Ennvviirroonnmmeennt Annaallyyssiis
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,
Vice President, and Chief Operating Officer Many analysists argue that effective leadership has been a key to the global success of Apple Steve Jobs’ leadership played a
big role in shaping the company’s future, though his leadership style was sometimes 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 growing 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
Apple does not use customer behavior research in product development, the 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 involving affect and cognition, customer behavior
Trang 8and 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 customer satitisfsfacaction rankining This is one of theieir soururceces for theieir products
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 Score The feedback includes an Net Promoter Score, beside an open-ended follow up question: “Anything else on your mind?” Most recently, Apple has collected NPS responses to measure customer satisfaction with its new Apple Watch NPS research 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 industry leader?”.
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 suppliers of the firm are: Foxconn - one of the oldest and largest 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 great multifunction and friendliness to customers.
Trang 9• Diissttrriibbuuttoorrs
Apple has its own retail store system as Apple 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 with major retailers to sell their product in an official capacity called Apple Authorized Resellers These stores can offer Apple products with personnel trained on basics to help customers to find what they want.
Applple Authororized Resesellllerers play a prime role in Apple’e’s sale strarategy and represent a large portion of sales of Apple products worldwide.
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 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 demand of users The compettition also help the industry development when every company want to create their own competitive advantages.
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 on new creation.
Trang 10Apple 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 of Apple, help the business transform global business through their custom
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 apps, Salesforce is innovating their client experience on iPhone and iPad by mixing the world’s number one CRM with the world’s most advanced mobile operating system for business Besides, SAP supports core business processes on the Apple platform from their employees to customers experience The last partnership of Apple is
in Networking, Security and Collaboration with Cisco The company provides leading, networking, security and collaboration solutions for Apple products.
The Big Tech companieies like Applple have limited recognitioion of worker organtiations Apple does not recognize any trade union in the USA, but the company recognizes some unions and work councils in Europe, and a 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.