The publicly traded company selected for the study is Apple, Inc. It is an American multinational corporation founded in the year 1976. The products manufactured by Apple include, “mobile communication and media device and personal computers.” Apple portfolio of products includes IPhone, IPad, Apple Watch, Apple TV, ICloud, Apple Pay and a variety of support offerings (“Apple Inc Form-10K”, 2017). Among these IPhone and MacBook gained huge popularity and made the company famous. Apple has recently launched IPad which has also turned great success in the global market. Globalization and the use of the latest technologies for product development have greatly impacted the corporation.
The paper discusses the impact of globalization and technology on Apple’s operations. The I/O and resource-based model will be used in determining how Apple can earn above-average returns. Further, the paper also presents an analysis of its mission and vision statement in determining Apple’s success. Lastly, the paper will evaluate the impact of a different category of stakeholders on the overall success of the corporation.
Globalization and Technology
Globalization
Globalization has significantly affected the company’s operation. With time Apple has been successful in establishing its business operation in America, Europe, Greater China, Japan and rest of Asia Pacific. Globalization resulted in the interconnectedness of different markets across the world. As of 2018, the company has 500 retail stores all over the world. Further, 67% of the company’s net sales came from its international business operation. Also, globalization has resulted in the manufacturing of all its hardware products by partners that are primarily located in Asia. For example, it would have been impossible to stay competitive with rivals such as Samsung if Apple had manufactured all its components of IPhone in the US. It is because Apple requires a vast and complex supply chain to compile an IPhone. The availability of suppliers exists in Asia, Southeast Asia and China who have the expertise to handle the equipment (Lapowsky, 2018).
Apple’s business operations are also significantly affected by fluctuation in foreign exchange rates as the company is dependent on its international suppliers and complex supply chain for manufacturing its products. Also, business can be significantly impacted by, “political events, war, terrorism, a public health issue, and natural disasters,” because it can create interruptions and inefficiencies in the company’s supply chain.
Technology
Apple competes in a highly competitive environment which is characterized by aggressive price competition, frequent introduction of new products and short life cycles. The success of Apple depends heavily on its ability to bring innovative products and services in the market. As a result, the Company invests a significant portion of revenue in R&D. It also holds a significant number of patents and copyrights which prevents other competitors from copying the product.
Further, the company provides regular updates to its operating systems which inspires excitement among customers. Technology has enabled Apple to release diverse and stylish looking products such as IPhone, IPad and Apple Watch. In fact, Apple’s IPhone is so popular that it generates an average annual revenue of 60% of the company’s total sales. The use of technology has resulted in the use of very light IOS resulting in the consumption of less processing power and thus making its unique.
Industrial Organization Model
The I/O model explains it is the external environment which the company should take care of before making any strategy. This model will allow Apple to assess the general, competitive and industry environments in which the company operates resulting in the development of strategic plans which further results in high superior returns. Using I/O model Apple, the management team will act in the best interest of the firm.
Resource-based Model
According to this model, each organization has unique resources and capabilities which provide the basis of strategy formulation (Jacobs & Chase, 2014). Here, differences in firm performances are primarily because of unique resources and capabilities. Apple unique resource and capabilities are its ability to design, manufacture and sell an operating system, hardware and software applications. It also has extraordinary industrial design capability as well as unique software which could be run on their own developed hardware. Further, the company has a large number of patents in their name which cannot be imitated. For example, Apple IPhone has unique features such as unique design, better fingerprint sensor, great customer support, and the latest IOS updates as soon as they are available which set apart from its competitors. In order to generate a higher return, the company needs to spend heavily on R&D to remain unique in the market.
Vision and Mission Statement
Mission Statement
Apple’s mission is to develop the best personal computers in the world, stay ahead of competitors in the music world with its IPods and ITunes, provide the best customer experience with regard to use of iPhone and define the future of mobile media and computing devices with IPad. (“Apple Introduces Next Generation IWork & ILife Apps for OS X & iOS”, n.d.)
Vision Statement
The company vision is to produce only a few products which are meaningful and important while having a constant focus on innovation. Apple does not believe in manufacturing thousands of different products.
Analysis
Both the mission and vision statement of Apple are related in terms of how to grow continuously despite challenges in the competitive landscape. Apple vision statement helps in inspiring and motivating the company’s workforce by providing a clear picture of its future goals. Further, Apple’s vision statement reflects upon a comprehensive approach to be used by the company to maintain continued growth and development.
The mission statement depicts the primary purpose of remaining in business. The mission and vision statement of Apple is an essential part of its strategic management process. Apple’s clearly defined mission and vision statement help managers in setting strategic objectives that are aligned with its long-term goals. Since the company envisions continuous growth through innovation, the management team must consider the launch of new products with unique features to maintain the enthusiasm among customers regarding Apple’s products.
Impact of Stakeholders
Apple has a number of stakeholders which influence the organization towards its success. The different types of Apple’s stakeholders are.
- Customers: Apple gives top-most priority to customers as its top stakeholders. This group is comprised of individual and organizational buyers of products. Customers play a vital role in the company’s survival because without them the company cannot exist. Further, feedback provided by customers regarding usage of products helps the company to improve the quality of products further.
- Employees: Employees are given the next priority which is composed of individuals who work at Apple’s facilities. They are crucial for determining a company’s success as they determine the human resource capabilities essential for making products which are profitable.
- Investors: Investors as a stakeholder’s primary purpose is to maximize returns on their investments. Apple addresses this group through strong financial performance. They play a pivotal role in the growth of the company. Investors join the board of the company and make some important decisions which affect the overall growth and success of the company.
- Suppliers and Distributors: Apple’s distributors and suppliers can be considered as indirect stakeholders in the company’s business. These suppliers and distributors supply essential components of products without suppliers making of IPhone, IPad will be a difficult task.
Conclusion
From the above analysis, it is clear that both globalization and technology are crucial factors in determining Apple’s success. Further, Apple mission and vision statement help the company in making strategic plans for the future so that the company can grow continuously. Lastly, different stakeholders play their individual roles which finally impact the success of the organization.
References
Apple Introduces Next Generation IWork & ILife Apps for OS X & iOS. Retrieved from https://www.apple.com/in/newsroom/2013/10/23Apple-Introduces-Next-Generation-IWork-and-ILife-Apps-for- OS-X- and-iOS/
EDGAR Search Results. (2018). Retrieved from https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000320193&owner=exclude&count=40&hidefilings=0
Apple Inc Form-10K. (2017). Retrieved from http://www.annualreports.com/Click/20362
Jacobs, F. R., & Chase, R. B. (2014). Operations and supply chain management (14th ed.). New York, NY: McGraw-Hill Irwin.
Lapowsky, I. (2018). Trump’s Plan for American-Made IPhones Would Be Disastrous. Retrieved from https://www.wired.com/2016/03/trump-wont-get-apple-make-Iphones-shouldnt/
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