External and Internal Environments
Apple Inc. is a reputable and well-known maker of computers, smartphones, and other digital gadgets. Since its inception, the company has established solid roots in the computing industry thanks to consistently delivering high-quality products to its cherished clients.
In the 1970s, Steve Jobs founded the company with his pals, Steve Wozniak and Ronald Wayne, under Apple Computer Inc. The top-quality products in the computer, music, and mobile phone industries are sold by Apple Incorporation (Inc.), which is renowned for its design. While Apple’s primary focus is customer relationship management, it employs a different business approach in which all employees and management collaborate to build its goods and services. Apple Inc. uses various online business strategies, such as business-to-business e-commerce, to sell computers and improve the efficiency of other companies. Instead of selling goods to businesses, the business-to-consumer e-commerce model sells products like iPods, PCs, iTunes, iMacs, and other things to different people. Selling Apple products to government-run entities is another example of business-to-government e-commerce.
Thus, the company has expanded its business globally into several sectors, particularly two of the business offerings: mutual funds and stock solutions and other education loans, where students are interested in taking out loans for their education. The company has been promoting its reputation as one of the top IT companies offering these services to a wide market and continually strengthening its strategy to increase its profit.
Organizational Strengthening Model of Five Competitive Forces
Michael E. Porter created the Five Competitive Forces paradigm in 1980. Since then, one of the crucial techniques for examining a company’s industry structure in strategic processes is the “five forces tool.”
This concept is founded on the understanding that a corporate strategy should address the opportunities and challenges in the environment outside the Apple organization. The particular competitive strategy ought to be built on understanding their structure and how they change, where forces impact the level of rivalry and, as a result, the profitability and allure of the organization.
Based on the knowledge gained from the organization’s integration with Porter’s Five Forces Analysis, management chose and addressed the two most crucial issues from the organization’s perspective regarding how to affect or utilize specific organizational characteristics and two forces that have been strengthening the organization.
The method is described as follows in an article by Michael Porter from 1997:
- The goal of the strategy is to establish a distinctive and useful position through various actions.
- When competing, strategy forces you to make trade-offs and decide what not to do.
- The plan entails fostering “fit” among a company’s
Apple’s business has grown, and it continues to add new services. The best characteristic that Apple embodies, desktop computers, was where Apple first began. After that gradually swept the market and introduced several digital players. All those looking for high-quality goods embraced the Apple iPod and iPhone in spades. Apple is well known for its high-quality products.
- Companies pay close attention to how easy or difficult it is for their competitors to retain their current services and any barriers put in place by those competitors.
- The second is to utilize experts’ core technical skills during technological developments where professionals are required to enter due to organizational market position and taking a reduced profit share.
There are two areas that an organization has to improve.
Two crucial elements of the business model that organizations should concentrate on are covered below:
- Organizations must control external threats, which include external entities replacing existing firms and launching less expensive ones.
- Organizations must concentrate on competitive analysis and how to launch new services, as their competing organizations are doing.
Threats from Outside Impacting Apple’s Business
Due to organizational and interpersonal issues, the organization has been dealing with external organizational conflict for a few months. Some clients of this IT-based company blame higher management for being ineffective and not listening to employees’ requests, which caused employees to go on strike. These issues are related to organizational behaviour towards its customers and clients, creating an organ. By using the market’s competitive drive, only some other IT organizations have produced challenges of this nature.
Even now, they have the matter under control, but it is not working as well as they had hoped, and they keep losing customers. Therefore, it is necessary to adopt conflict resolution theories and models of conflict control in order to handle the problem properly.
Conflict is a fundamental force influencing all facets of existence, as we all know. It has always existed between numerous rival businesses.
As a result, managing conflict can enhance the organizational decision-making process and resource allocation, increasing the organization’s effectiveness. Effective conflict management can help Apple keep up with new developments and develop appropriate solutions for its threats. As a result, the objective is to investigate the methods for handling individual and group conflict in organizations while weighing the benefits and drawbacks of various organizational and procedural approaches to handling client interactions.
Organizational Weaknesses and Strengths of its Business Strategy
This organization has a few strengths and weaknesses, and the following is how it manages its organizational strength:
Strengths: According to (John E. Gamble, 2012), Apple Inc.’s technological advantage over rivals is its main and most important strength. The iPhone has been a hit and gained recognition in over 70 nations. Additionally, iTunes has proven to be a superb source of income, and because it also sells the iPod, its associated tool, Apple Inc. has seen an increase in revenue. The fact that Apple Inc. introduces its hardware with high-quality and distinctive features in each software system it creates is another strength of the organization, contributing to its experience at the top of the sector. The simplicity of the Apple product’s design gives it a clear advantage over the competition. Another one of its key advantages is the incredibly committed research and development team and brand loyalty to its products.
Weakness: Since the passing of Apple Inc.’s founder Steve Jobs, the corporation has overcome several obstacles. Apple has fought for intellectual property rights, which immediately impact business performance. Samsung held the top spot in the smartphone industry in 2011 because of the design of the Galaxy and other devices. Additionally, Google’s Android operating system is similar to the core characteristics of the iPhone. Customers’ perceptions of the device are negative due to its expensive price and Apple’s lack of updated features.
According to the business perspective, we will briefly examine business analysis in this article. This analysis will cover a few elements of company strategy, such as key strategies, organizational goals, short-term objectives, success indicators, and its operational model that has been successfully applied.
So let us start with the organization’s ability to scale its business. The important thing is that it focuses on the same organizational goals and upholds the same values with all different types of clients.
It merely framed the difficulties in the context of business; nonetheless, it is generally known that during the previous ten years, their difficulty has been managing the organization’s tremendous expansion. Although it is a tough problem, it is wonderful to have one. Moreover, the infrastructure and procedures need to be scaled to accommodate that. I believe organizational executives know how hard the organization works to achieve this scalable company expansion. Therefore, even if we consider American corporations as a whole, I would assert that this is not necessarily the case for Apple.
Resources, capabilities, and core competencies of the organization
I discovered that the “Unification” operating model is an appropriate example of “Apple Inc.” after completing the analysis using the provided data and other sources since the company has been collaborating and integrating with a single corporate strategy for competitive focus. High-level integration and IT standardization are being used to leverage this business, and the strategy’s success is measured by totalling the number of integrated business branches worldwide providing the same services.
This model demonstrates its capacity for high process integration, standardization, and business management, which calls for a single integrated strategy for competitive advantage and problems that are developed centrally and specifically for demands and business optimization.
Organizational dysfunction is a common occurrence. It is true and hard for quick expansion that much of that dysfunction can be attributed to a poor working relationship or misunderstanding between corporate finance and IT.
Following this brief explanation of Apple Inc., the IT market has been expanding more quickly as it moves steadily toward IT business management due to its technological base. People are becoming more interested in obtaining benefits through investments, loans, etc., as was previously described. However, as security is a fundamental technical area, numerous security policies must be required for managing a business, finances, data transmission via networks, information technology risks, etc. Customers of this IT-based business are subject to numerous security dangers.
Corporate Value Chain
There were a lot of difficulties and obstacles at first for Apple. The included challenges allowed for simple computer interaction and were user-defined. However, it soon became clear that Apple pioneered the computer industry. It consistently met the demands of its clients. Mobile phone users’ perspectives have changed as a result. Although the products are more expensive than those produced by a competitor, the company employed this tactic to grow its clientele rather than build a vast empire.
One crucial aspect of Apple’s strategy is that its quality remains constant. It never goes down from the start. Although Apple’s brand positioning has changed, its current positioning remains consistent with these original promises.
Another strategy is to give the user a top-notch interface. The movements Apple employs are excellent and difficult to replicate in a product from another firm. This is the foundation of the company’s product strategy, of which the performance of the iPhone, Mac, iCloud, iTunes, and Apps Store is vital.
The business is more than just a mobile device. It has extended to a huge number of online services. Such examples of the company’s services include iBooks and iTunes. ICloud, an excellent background service from Apple, allows users to access various services and features on any (Apple) device.
Apple adopts a branding strategy that emphasizes emotions. The first impression you have of an Apple product is how you feel. Thanks to Apple, life is now so inventive, and individuals use their fantastic goods to realize their ideas. Apple does not aim to lead the market in just one thing. Day by day, it is expanding its products and services. It is the cornerstone of Apple’s plan.
The fact that it deals with the economic logic of the organization’s existence, which is that manufacturing companies create value by purchasing raw resources and employing them to develop useful products like Samsung, makes it a topic of basic relevance to the organization. Retailers group various products and arrange them so that customers can easily use them. They occasionally provide services like fitting assistance in their technical operations. The profit margin is the value that this company creates and captures:
The formula “Value Created and Captured – Cost of Creating that Value = Margin.”
The more value an organization can provide, the more probable it is that it will be profitable, and when we give our customers more value, we generate a competitive edge.
Developing a competitive strategy requires understanding how the organization adds value and focusing on how to do so. The landmark 1985 book “Competitive Advantage,” in which Michael Porter popularized the idea of the value chain—a collection of actions that a firm might do to generate value for its clients—discussed this topic. This organization can use Porter’s general-purpose value chain to examine its operations and determine how they relate to organizational and functional activities. This tool can assist you in understanding the sources of value for your firm and its flow process since how value chain activities are carried out determines costs and impacts earnings.
Apple is a pioneer in the computer industry and will control its market position over the coming years with the help of its products. It was among Forbes’ top firms; the only items it concentrated on were the iPhone and iPad. They have driven folks insane. For instance, in 2009, Apple released “Snow Leopard,” the most recent version of the Apple Mac operating system, which included capabilities allowing Mac computers to support Microsoft Exchange fully. As a result, a surge in Mac sales for people who wanted to use email easily began. Then, around 2011, Apple released LION, which had all the commercial viewpoints required by business people. In the market, Apple made a huge leap. All business people are now using Macs for their gain.
Following the analysis of Apple Inc., we addressed organizational capabilities with its sizeable value chain, strengths, applicable forces, external variables, and organizational capabilities.
One of the best and most successful market leaders, Apple’s product brand has been steadily expanding the market and demonstrating its strong commercial acumen. Apple has made a very clear commitment to ensuring that everything they do is about human technology and figuring out how to use it to meet human needs.
As the true representative of quality, technologies, and experiences, Apple was founded by Steve Jobs and has since revolutionized the globe with its products. As a result, it is now a market leader in terms of technology.
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Sofiane Achiche, Francesco Paolo Appio, Tim C. McAloone, Alberto Di Minin (2013). Fuzzy decision support for tools selection in the core front-end activities of new product development, Research in Engineering Design, 24, 1, 1
Jeffrey W. Alstete, John P. Meyer (2012). Intelligence Methods and Systems Advancements for Knowledge-Based Business.
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Week 6 Assignment – External and Internal Environments
In this assignment, you are to use the same corporation you selected for the Week 3 assignment and examine the industry in which the entity operates. This assignment requires the use of three or more quality resources, including your textbook. Use any or all of the following resources to conduct research on the chosen corporation:
- The corporation’s website.
- Public filings from the Securities and Exchange Commission’s Filings & Forms page.
- Strayer University’s online databases.
- The Nexis Uni database.
- Other credible sources, such as the corporation’s annual report, will often provide insights that other resources may not include.
- It is expected that you will use your textbook as a resource for this assignment.
- Read the Assignment Formatting and Tips [PDF] before starting the assignment. Refer back to this document as needed.
- Download and save the External and Internal Environments Template [DOCX].
- Use the template to write a 4-6 page academic research paper in which you include the following:
Step 1. Choose one segment of the general environment that would rank highest in influence on the selected corporation:
- Assess how this high-ranking segment in the general environment influences the corporation and the industry in which it operates.
Step 2. Considering the Five Forces of Competition, choose one that you estimate to be the most significant for the selected corporation:
- Evaluate how well the corporation has addressed this force in the last five years. Support your response with relevant, specific evidence.
Step 3. With the same force in mind, predict how the corporation could improve its ability to address this force in the next 5-10 years. Support your response with relevant, specific evidence. Step 4. Consider the external threats affecting the corporation:
- Assess how the corporation should deal with its most serious external threat. Support your position with two pieces of specific evidence.
Step 5. Consider the opportunities available to the corporation:
- Assess how the corporation should deal with its greatest opportunity. Support your position with two pieces of specific evidence.
Step 6. Consider the corporation’s greatest strengths:
- Determine the strategy or tactic, as explained in the textbook, the corporation should use to maximize its strengths. Support your choice with specific evidence.
Step 7. Consider the corporation’s most significant weaknesses:
- Determine the strategy or tactic, as explained in the textbook, the corporation should use to minimize its greatest weakness. Support your choice with specific evidence.
- Use three or more quality sources, including your textbook, to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. (Note: Wikipedia and similar websites do not qualify as academic resources.)
- For help with research, writing, and citation, access the library.
- Produce writing that is clear and well organized and applies appropriate Strayer Writing Standards (SWS) style. Writing contains accurate grammar, mechanics, and spelling.
This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all support. Check with your professor for any additional instructions. The specific course learning outcome associated with this assignment is as follows:
- Analyze the effects of the general environment, competition, threats, opportunities, strengths, and weaknesses relative to a corporation.
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