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- QUESTION
Mandatory Outline Framework
This outline is provided to help you organize your SWOT Analysis paper. You must submit a written SWOT Analysis PAPER, properly formatted, cited, and grammatically correct with a minimum of 1,000 words. You need to write a minimum of one paragraph for each sub-section of the outline. You must use this document to organize your paper.
You do need to use all the numbering system, lettering, and headers/sub-headers from the outline to organize the entire paper. Copy and paste the framework, then write your content in paragraph form in each section, citing your sources.
Points will be deducted if you do not use these section headers to organize the different research content required in your paper. Your analysis should be easy to follow as a result of using these organizational tools from the outline. Follow all instructions on this outline and in your rubric.
- Organization History, including a Mission Statement (if possible) (15 points)
- Organizational Strengths and Weaknesses (45 points)
- First Organizational Strength
- Reason it is considered a strength.
- Explain why this strength is a distinctive competence.
- Second Organizational Strength
- Reason it is considered a strength.
- Explain why this strength is a distinctive competence.
- First Organizational Weakness
- Reason it is considered a weakness.
- Discuss how the organization can minimize this weakness.
- Second Organizational Weakness
- Reason it is considered a weakness.
- Discuss how the organization can minimize this weakness.
III. Opportunities/Threats (55 points)
- First Opportunity
- Explanation of the dimension within the general environment and specific force coming from that dimension that is creating the opportunity.
- Explanation of why it’s an opportunity and how it affects the organization.
- Second Opportunity
- Explanation of the dimension within the general environment and specific force coming from that dimension that is creating the opportunity.
- Explanation of why it’s an opportunity and how it affects the organization.
- First Threat
- Explanation of the dimension within the general environment and specific force coming from that dimension that is creating the threat.
- Explanation of why it’s a threat and how it affects the organization.
- Second Threat
- Explanation of the dimension within the general environment and specific force coming from that dimension that is creating the threat.
- Explanation of why it’s a threat and how it affects the organization.
- Summary (15 points)
- Discussion as to how the organization can capitalize on the opportunities that are occurring from the dimensions from within the general environment.
- Discussion as to how the organization can neutralize the threats that are occurring from the dimensions from within the general environment.
- References list and APA parenthetical citations (5 points)
- Spelling/grammar/organization (5 points)
| Subject | Business | Pages | 7 | Style | APA |
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Answer
- Apple Inc History and Mission Statement
The company named Apple computers was established on April 1, 1976 in Cupertino, California (Linzmayer & Linzmayer, 2004). The company was established by Steve Jobs, Steve wozniak and Ronald Wayne and was incorporated in year 1977 with founding of Mike Markula.
Apple is believed to have lead to the widespread of personal computers; this is a result of Apple 1 in 1976, Apple 2 in 1977, Apple Lisa in 1983 and finally the Macintosh. Steve Jobs who was Apple’s founder resigned in 1985 and formed NeXT Inc, (Sted, 2012). In year 1996, NeXT Inc was brought back to be part of Apple, (Linzmayer & Linzmayer, 2004). The PowerBook which was released by Apple in the year 1991 is believed to be one of the designs that set the path for modern day’s laptops, (Linzmayer & Linzmayer, 2004). Apple released a number of iPod varieties that include: iPod classic in 2001, iPod nano in 2005, iPod shuffle in 2005, and iPod touch in 2007. Steve Jobs on January 9, 2007 gave an announcement of the company’s change of name from Apple computer Inc to Apple Inc; this was because the company was dealing with various other products apart from computers, (Sted, 2012). Apple is also responsible for the iPhone models. The iPhone were sold on June 29, 2007, another model called iPhone 3g were on sale from July 15, 2010.
On June 29, 2009 another model named iPhone 3gs was rolled out and the famous iPhone 4 were released to the market on June 24, 2010. Apple Company has a clear mission statement. The mission statement states that Apples mission is to produce the best models of interactive computers, digital media downloads, software and Smartphone to the market. Evidenced by products from Apple TV, iLife, iWork and final cut, Apple has set itself as more than just a company for producing computers and has distinguished itself as a company that sells a lifestyle, (Sted, 2012).
- Organizational Strengths and Weaknesses
- Innovation
Innovation is one of Apple’s strengths; this is because over many years the company has been ahead of the ever changing technology. Apple continues to produce high quality products that are well tailored to suit the customer. Innovation can be traced to the launch of the first iPhone that took place on June 2007 and release of iPad on April, 2010. The company produces original products that are very different from products of their competitors. Apple produced iPhone 6, a new original product. The model will have a number of improvements in specs and size from iPhone 5. Apple is also set to release an iWatch together with an iPad air 2, an ipad mini 3 and new macbooks. Innovation makes it easy for apple to make more profit than its competitors and have more customers, (Sted, 2012).
- Enormous finance
Apple has an enormous amount of finances. The corporation has made a chunk of profits over the years mainly due to the launch of the iPhone models and computers. The company has an estimate of $38 billion in cash assets and $127 billion in the long-term marketable securities as evidenced by the balance sheet on June 28, 2014 (Ximénez & Sanz, 2014). The company is aggressive on the buying of its own stock. Apple also offers cash dividend to shareholders, this practice began in 2012. In April 2014, the board of directors increased the repurchase authorization by $30 billion; from $60 billion to $90 billion (Ximénez & Sanz, 2014). The buyback effort by Apple is a move to consolidate its share net. Apple through its finances it’s able to undertake new investment opportunities that ensure they realize more profits. The finances also enable the company indulge in costly but necessary advertisements that ensure it remains more popular than its competitors such as Samsung.
- Pricing strategy
Apple has a number of weaknesses. The first weakness is the high pricing strategy. The high prices have made Apple’s products to be less appreciated in many developing countries. The premium pricing also increase the competition pressure by other companies such as South Korea’s Samsung and China’s Xiaomi, (Ximénez & Sanz, 2014). Apple should consider rolling out products and matching their prices with the markets. An aspect of producing different qualities of products would be necessary. The move would ensure that the company captures a great portion of the market worldwide and has a product for everyone.
- iPad sales
Another notable weakness is the sales of the iPad. The iPad shipments especially to U.S and Europe have been falling due to the setting of high standards by Apple. The Google’s android devices have offered a lot of competition to Apple’s iPad. The company should be keen on reducing its prices for iPads and matching them with those of its competitors. Apple also partnered with IBM in order to offer business-apps for its iPad and iPhone, the move is set to improve the attractiveness of these products, (Sted, 2012).
Opportunities/Threats
- The Beats electronic
The enormous Beats electronics deal was completed in August 2014. Beats electronics was founded by music industry experts Dr. Dre and Jimmy lovine. The company has a creative management team and has a lot of potential. The Beats electronic company deals with headphone line and streaming music services. The initiative will continue to proect Apple as a company endowed with innovation and originality. The company will also be instrumental in the development of Apple’s products such as iWatch, and other wearable devices (Sted, 2012).
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- The market-share growth rate
The Apple Company continues to outshine its competitors in terms of the market-share ratio. Apple has an estimate of 20% of the worldwide PC/tablet market, thus it outshines competitors such as Lenovo, HP and Samsung, (Ximénez & Sanz, 2014). The percentage is also set to improve based on the company gaining ground in China and the other Asia/Pacific areas. The company is also linking with local wireless carriers in BRIC regions to increase sales of the iPhone.1.Explanation of the dimension within the general environment and specific force coming from that dimension that is creating the opportunity.
- The gross margin challenges
The company is keen on achieving high gross profit margins. The move is as a result of the intensified competition and rising component costs. The market is also shifting away from the iPhone. The iPhone is one of the major profit earners for Apple and this could explain the reduced profits experienced; these reduced profits have been the trigger behind raised profit margins. A problem that results from high profit margins is a high cost to end consumers that tends to reduce sales.
- Competition
Apple experiences a lot of competition in selling its products. Numerous competitors are ever working to produce commoditization in the technological sectors. Customers also tend not to be loyal to certain producers; their main decision towards products is based on quality and the pricing. Producers such as those operating in China are able to offer price discounts on their products and in the process they attract more customers, (Ximénez & Sanz, 2014). A number of produces are not very keen on quality, but they win customers mainly due to their low prices; this is common in developing regions such as Africa.
- Summary
- Apple has been doing well in the past and speculations of further improvements are high. The huge market share is important as it translates to greater profits. Apple should have a key focus of improving its market share by using advertisements and improving on quality and prices (Sted, 2012). Apple should also utilize the Beat Electronics Company through proper management.
- Apple faces a number of threats in its operation. The effect of competition can be effectively countered by monitoring their competitors and using statistics. The company should be keen on market differentiation to ensure a wider margin of the profits. Apple should focus on reducing the gross margin targets and account for this by increasing their sales. Less gross profit margins coupled by more sales will lead to an increased level of profits, (Ximénez & Sanz, 2014).
References
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Linzmayer, O., & Linzmayer, O. (2004). Apple confidential: A definitive history of the world's most colorful company ([Rev. 2nd ed.). San Francisco, Calif.: No Starch Press.
Ximénez, J., & Sanz, L. (2014). Financial decision-making in a high-end company: A case of Apple Inc. Management Decision, 1591-1610.
Sted, M. (2012). Apple: The Company and its visionary founder, Steve Jobs. Minneapolis, MN: ABDO Pub.
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