Strategy Development and Implementation

Management Strategies

The History of Apple Corporation

Strategy Development and Implementation

The History of Apple Corporation

The corporation has an exciting history, as it has transformed to the biggest and most successful technology firms in the world, under the best managers of time. Both the employees of the firm, the management and the product consumers have been linked to the firm’s success. The firm was started with the two Steves, who from their early lives had shown considerable interest in electronics. Steve Jobs and Steve Woznlak were former employees at Atari and HP respectively. However, in April 1976, the two conceptualized the Apple computer, which was among the first personal computers at that time. The company has focused on products that are innovative and new in the market ever since it was started. It is Job that started developed the legendary Macintosh, which is known to many as ‘Mac’. There have been tremendous changes and product developments in the firm and currently the firm has products that meet the consumer demands, in terms of design and innovation (Schermerhorn, 2011).

SWOT and IE Matrices for Apple

The SWOT Matrix

When a business is undergoing transformation and development, the SWOT matrix is a powerful tool that can be used to decide on the best strategies any organization, so that the strategies focus on the advantages of the organization, which include the strengths and opportunities of the organization. The advantage the organization holds can be used to counter the external threats and overcome the weaknesses of the firm. The SWOT matrix for Apple Corporation is illustrated in figure 1.1.

The IE Matrix

This is the Internal External matrix, which is the other management tool that is used to assist in the strategizing of businesses. Typically, the IE matrix works based on the EFE and IFE matrices, which are plotted on a nine-cell template, with the EFE on the y-axis and the IFE on the x-axis. Lines are drawn from the axes, and their meeting point is the position where the strategies are to focus. are used to determine the positions. When drawing the EFE on the y-axis, the scores from 1.0 to 1.99 indicate the low position. Score 2.0 to 2.99 indicate medium position and the scores 3.0 to 4.0 indicate high positions. On the IFE plane, the score of 1.0-1.99 is the weak position. Scores 2.0-2.99 is the average position. The score of 3.0-4.0 is the strong position. The figure 1.2 represents the IE matrix for the Apple Corporation.

Figure 1.1: The SWOT matrix for the Apple Corporation

The template of the SWOT matrix

(ST)

Weaknesses

(WT)

(WO)

(SO)

Threats

Strengths

Opportunities

SWOT Matrix

Opportunities to counter the weaknesses of the firm

(WO);

Cha

nge the operating system of products to serve more consumers

Do more advertisements to beat the competitors

Implement the right motivational tools to increase satisfaction

Strengths to take advantage of the opportunities (SO);

Use the innovative power to change the operating system of the Apple products

Produce quality products that will be user friendly

Advertise the products to increase the market share

Manage the organization better so as to attain desired reputation

Opportunities;

Change Operating System for the Apple Products

Production of user friendly products

Increase the market share by changing the operating system-more consumers for the product

Strengthen reputation more

Use media to advertise new products

Weaknesses;

Specification of Apple’s products Operating System

Many competitors like Google and Dell

Poor employee motivation

Strengths;

Ability to innovate

Product quality

Advertising

Presence of online stores

Strong financial position

Efficient management structure

Consumer support

Strategies that will curb the weaknesses and threats (WT);

Motivate the employees

Appoint financial manager and advisor

Review the organization’s structure

Strengths to counter the threats (ST);

Use innovation and quality to survive competition

Introduce better operating systems for the firm’s products

Produce better quality products than incumbents

Threats;

Great competition from the incumbent firms such as Hewlett Packard

Limited functioning of products-specialized operating system

Equal advantage with other technology firms like

Google, which has open O.S and free products

The IE Matrix (Apple Corporation)

The EFE total weighted score is 2.63 whereas the IFE total weighted score is 2.98.

Strong

Average

Weak

EFE Total Weighted Score

Low

Medium

High

4.0

4.0

1.0

2.98

2.63

Divest

Or

Harvest

Maintain

And

Hold

Build

And

Grow

IFE Total Weighted Score

X

IX

VII

VI

V

IV

III

II

I

Alternative strategies

Market Development

Apple Corporation has had issues with the current operating systems they are using, as the systems are specifically for their products, making it difficult for the products to get to certain market segments. This could be corrected using the market development strategy. The strategy entails the process of attracting other new consumers to products that already exist. What happens is that the old users of the product that motivate the other consumers into purchasing certain products. If the Apple products were diversified and new operating systems integrated, there is a high possibility that sales will increase, and the profit margins of the firm would rapidly increase. The products are to be distributed to the continents where they have hardly reached, like Africa. Expanding the market is therefore, necessary for the Apple firm to realize better performance in the future. The advantage that comes with market development in most cases is the fact that the organization will increase its sales, hence better income. However, the strategy becomes challenging, as the consumers could easily reject the product, due to tastes and preferences, and the product prices (Quelch & Deshpande, 2004).

Diversification strategy

This strategy involves the increasing of sales by the introduction of new and innovative products to new markets. Apple Corporation, for instance, could bring the latest i-phones to the African markets, where the product has hardly reached the consumers. New brands are known to attract sales, especially to the market segments of the people who value technology. The strategy could be a limitation because the markets are new and the owners of the products have no idea of the market trends when they introduce the products. The advantage of diversification is the potential for many sales, hence an increase in the profit margins of the firm (Lamb, Hair & McDaniel, 2011).

Figure 1.3: Strategies for Apple Products (Amounts in dollars)

Recommended strategies

Years

Total Amount

2012

2013

2014

Integration of the new operating system.

12,500 (Installation Costs)

3,000 (Maintenance)

2,500 (Maintenance)

18,000

Appointment of the financial advisor.

13, 200

13,200

13,200

39,600 (For entire 3 years)

Motivate employees to better performance.

5,600

3,300

8,900

TOTAL AMOUNT

66,500

Comparisons and contrasts

As Apple firm is aiming at addressing the dire needs of consumers, and offering programs to customers that will assist them use the products efficiently, there is a need to motivate the employees of the firm. Motivation of the workers is what will lead to a better outcome in terms of servicing the customers. Employees also work best when they are motivated, and motivation either may be in monetary value, or could also be non-cash rewards like pensions and insurances. The recommended strategy to appoint a financial advisor is extremely significant, as the company is growing at fast rates, which require good management of their finances, and proper investment strategies. The firm is also expected to exercise its innovation quality, and ensure a more dependable and diverse system is used to target larger market segments.

Figure 1.4: Implementation of Strategies, Results and Timeframe of Action

Recommended Strategies

The Common Implementation Process

Result Expected

Timeframes

Integration of the new operation system.

The management is obligated to implement the strategy. The first stage is the tactic shaping, where the plans and design are written and well indicated.

There will be more sales, as the Apple products will target more market segments.

1-year.

Appointment of financial advisor and manager.

After the tactical shaping, is the implementation of the contingencies. The aspect of governing is analyzed and deliverables are confirmed. The execution process begins with the revision of the estimated prices and evaluation of the stages.

There will be better management of the company’s resources, hence minimal costs and higher profits.

Immediately after appointment.

Motivation of the employees.

Operations and support of the strategy are managed and there has to be flexibility that allows for termination of the strategy, in case it does not work as expected. Liability is evaluated and necessary actions taken. At this point, strategies are functional.

Employees will feel content with their job, hence better service delivery.

3 months.

Review and evaluation of the strategies

The strategies will only be effective when the company experiences changes, both on employees and on the firm’s returns. If there is an increase of consumer satisfaction, this indicates the employees are working well to ensure customer satisfaction, due to motivational tools implemented. To know if the change in operating systems is efficient, the company’s returns of profit will increase, and so will the people’s demands the Apple products. The company should retain more of the profits for investment purposes and the market share of the firm is to stabilize, to confirm the effectiveness of the financial advisor and resource managers.

Conclusion

Apple Corporation has the potential to grow bigger, and lead its market if the right strategies are implemented. The management of the firm is therefore responsible to ensure costs are set aside to implement the strategies successfully. It is necessitated that the organization structure be reviewed periodically to insure that the communication channels of the company are in order, to allow for smooth communication to the managers, from consumers and employees.

References

Lamb, C.W., Hair, J.F. & McDaniel, C. (2011). Essentials of Marketing. New York: Cengage Learning.

Quelch, J.A. & Deshpande, R. (2004). The Global Market: Developing a Strategy to Manage Across Borders. New York: John Wiley and Sons.

Schermerhorn, J.R. (2011). Exploring Management. New York: John Wiley and Sons.