Sample Essay about Strategy of Apple
The objectives of Apple are primarily business driven. For instance, it is indicated that the company is concerned with maintaining high levels of its productivity based on the research and development. Thus, the company has an objective to sustain its global dominance. This is supported by the increasing sales. Thus, the company also has an objective of increasing its sales. The company's strategy is to reduce the negative changes, while maximizing the positive ones. The company's strategy is diversification, which entails supplying electronic products and complementary products. The company also focuses on ensuring that the customers get the best experience, when using its products. The company centers on developing unique products. In order to ensure success, the company has a policy of continuously investing in research and development (Young and Simon 23-67).
Based on the article being reviewed, the Apple Group has budgets for every activity that is undertaken. In the article there are such statements as the consolidated statement of operations, consolidated balance sheet, etc. this confirms that the company makes use of budgeting. Thus, the objectives, strategies, policies of Apple can be found clearly stated as well as implied from the financial statistics.
Determining the consistency of the objectives, mission, policies and strategies is an arduous task. Since the Apple Group has a mission of uniqueness, the objective of giving customers a lasting experience, has adopted a policy to fund its objectives and it has various strategies to achieve each objective, it is conclusive that there is consistency. The aspect of sustainability also implies that the company's goals are consistent with both internal and external environmental expectations.
In the current times, technology has assumed great significance. Technology is a key attribute in the production process. Thus, the extent to which an organization succeeds is to some extent dependent on the technology. Thus, corporate performance may be a reflection of the level of technology that the company employs.
The interplay between basic, applied and engineering research affects the appropriateness of the corporate strategies as missions. Given the weight the company places on the research and development, it is discernable that the primary goal of the company is to achieve its mission based on its basic, applied and engineering research. Research and development present a significant attribute in the production process. Research and development allows the company to produce high-level products for the market. The production of high quality products endears the company to customers. As a result, it is held that research and development allows the company to enjoy a comparative advantage in the industry (Hertzfeld 56-102).
The company is receiving a big return from its investments in research and development. For instance, the company is the best in the production of smart phones across the globe. The company's products are also unique and are traded in high-end markets. On this evidence, the company is benefiting highly from the research and development. The company has a strategy of technology. For instance, Apple has supported community development in developing hardware products and third-party software. The company also uses cross-functional teams in process and product design. Technological discontinuity influences the company's operations. When technological discontinuity occurs, the products, which were processed, have to rely on alternative technologies.
Research by Apple in research and development is among the best. Close rivals include Nokia, Motorola, etc. Apple uses value alliances in its production line. Thus, it implies that the company outsources some equipment. The value-chains add to the company's innovativeness and competitive advantage. Based on the evidence in the article, the company attempts to adjust its technology to suit the country of operations. However, its overall technology remains similar. Apple pays significant attention to the environmental sustainability. This is why its products are tested to ensure compliance with the environmental standards. The strategic management process entails the development of strategies that are used to achieve set goals. Thus, the strategic management process is critical in research and development exercise. A research and development manager has the role of aligning research and development initiatives (Hertzfeld 56-102).
Operations and Logistics
The objective of Apple is to control the manufacturing process. Although Apple has indirect suppliers, it dominates them and thus overall operations. Apple operates a closed system, where it controls nearly every item in its supply chain. This implies that Apple has the control from designing to retailing. The manufacturing objectives, strategies, policies, and programs are implied from the operations that the company employs.
Determining the consistency of the objectives, mission, policies and strategies is challenging. Since Apple has a mission of uniqueness, the objective of working with partners is critical towards achieving its goals. Apple has adopted a policy to fund its aims. The company has various strategies to achieve each objective. Hence, it is conclusive that there is consistency. The pursuit of sustainability implies that the company's goals are consistent with both the internal and external environment (Hertzfeld 56-102).
The extent of operations capabilities of Apple are wide ranging. A big percentage of the company's operational capabilities are done locally. Given that, Apple is a leading company; it is discernable that its level of outsourcing is significant. It is also thought that the purchasing is done appropriately. As indicated, by complying with environmental regulations, the company has a sustainable framework. The company's I-Phones have the highest profit margins, while the computer segment has the least. The Apple Group is product oriented. This is based on its high levels of automating its production process. Based on the products it assembles, it seems that the Apple Group targets the young generation.
Manufacturing services are vulnerable to national strikes, natural disasters, decline in resources, limitation in suppliers, etc. however, the big size of Apple allows the company to overcome such challenges. Now threats attributable to nationalization have ceased. However, crises, such as an economic downturn, pose challenges on any company, including Apple. A decline in the global economy as reflected in 2008 has an effect on the company's operations, since sales are likely to crumble in such difficult times (Young and Simon 23-67).
The case of Apple reflects an efficient and effective production process. The company uses machines in the production process. Nevertheless, people play a key role in the production process. Thus, an appropriate mix is mandatory. Similarly, the company has a support staff that helps customers on how to attain the best of their products. Given the level of the competition in the electronics industry, the Apple Company has done considerably well, since it is a world leader in technological gadgets. For a company to continue operations and attain success, it is required that costs are lower than income. Given that Apple has often posted profits and growth in production, it is conclusive that the company does well relative to the competition in the industry.
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