Abstract
This paper is about the strategic management and strategic competitiveness of an organization. Apple Incorporation is an American-based multinational corporation, which is mainly involved in designing, development, and selling computer software, consumer electronics, online technological and user-based services. Apple Inc. is currently the largest information technology company across the globe and second largest phone manufacturer in the world. It relishes a superior brand loyalty and as per 2014, it was the most valuable brand with an approximate valuation of US $ 118.9 billion. The paper discusses how globalization drastically influences the business style, capabilities, proficiencies, expertise, and overall business performance of the firm. Apple Inc. exploits the benefits of emerging markets that offers relatively low wages at low cost, which leads to its better financial growth and proportionate to achieve market leadership. Market opening and orientation for the world markets also led to dramatic structural changes in Apple Inc. it also explains how by applying the resource based model and industrial organization model; Apple Inc. can avail excellent opportunities of increasing its returns above the average. It elucidates the influence of vision and mission statement of Apple Inc. on its corporate success as they are the foundation of world’s most valuable business organization. Apple Inc. is a symbol of design, technological elegance and innovation, and these characteristics are associated with its mission and vision statement as they keep the employees motivated to support and contribute towards organizational competitive advantage. Lastly, it expounds that the success and prosperity of Apple are partially credited to its capacity to fulfill its corporate social obligations and satisfying its stakeholders. A group of stakeholders imposes a number of demands to every business that are translated as the corporate social responsibilities, which impact the performance of the firm.
Srategic Management & Strategic Competitiveness
Introduction to Apple Incorporation
Apple Incorporation is an American based technology multinational corporation, which is headquartered in Cupertino – California. Apple Inc. is mainly involved in designing, development and selling of computer software, consumer electronics, online technological and user-based services. Its major hardware products involve Mac Personal Computers, iPhone smartphones, iPad tablet computers, iPod portable media players, Apple smart watches and Apple digital TV/media players. Its major consumer software products include iOS operating systems, MacOS, iTunes media player, iWork, iLife, Safari web browser, iTunes store, iOS Apple store, iCloud and Mac App Store.
The company was founded by Steve Jobs in 1976 as Apple Computer Incorporation. It later got incorporated in 1977 and was renamed to Apple Inc., which reflects its shifted business focus towards consumer electronics. According to revenues and totals assets, Apple Inc. is currently the largest information technology company across the globe and the second largest phone manufacturer in the world. In 2014, in addition to being the 1st U.S. company to be worth over US $700 billion, it also became the world’s largest public traded corporation in terms of market capitalization. Apple Inc. currently employs more than 115, 000 employees and have more than 478 exclusive retail outlets in 17 countries. As of September 2015, the annual revenues of Apple Inc. totaled US $233 billion. Apple Inc. relishes a superior brand loyalty and in 2014, it was the most valuable brand with an approximate valuation of US $118.9 billion (U.S. Securities & Exchange Commission, 2016).
The Impact of Globalization on Apple Inc.
Apple Inc. also exploits the very best of the globalization like other multinational corporation. Globalization drastically influences the business style, capabilities, proficiencies, expertise, and overall business performance of Apple Inc. As a major player in several modern industries, Apple Inc. requires specialized and high-quality market that it found to a large extent in other industrialized countries partly - in particular for the consumer goods industries, which it found in the developing countries. It also takes benefits of the emerging markets that offers relatively low wages at a low cost, which leads to its better financial growth and proportionate to achieve market leadership. Market opening and orientation for the world markets also led to dramatic structural changes in Apple Inc. (Hitt et.al, 2016).
One of the most significant influence of globalization on Apple Inc. include the prospects of grossing benefits from the developing countries, which are usually characterized by insufficient legal certainty, political instability, inadequate infrastructure, and inadequate infrastructure. The developing countries attracted Apple Inc. even at very low wages and this provides it with the opportunity to have low labor costs, flexible investment structures, tax rebates, and other conditions in different countries that work drastically in favor of Apple Inc. Especially from an economic perspective, it increased trade and increased division of labor, poverty that benefits Apple Inc. facilitating it to expand across the globe. The policy of import substitution also encouraged protection from high tariffs and trigger financial growth (Frynas & Mellahi, 2015).
Application of Industrial Organization Model and Resource-based Model to Apple Inc.
While applying the resource based model and industrial organization model, Apple Inc. can avail excellent opportunities of increasing its returns above the average. Industrial organization model could offer 5 step plan to Apple Inc. i.e. studying the external environment, locating an attractive industry, adequate strategy formulation, developing a set of required skills and assets, implementing the strategy by using the firm’s core competencies and resources. This model can help Apple Inc. to fetch superior returns to business while capitalizing optimally on its business goals. On the other hand, resource based model is a set of distinctive resources and capabilities that offers a foundation for any business strategy. It can help Apple Inc. to recognize its core business strengths and weaknesses, as well as, threats and opportunities. On the basis of its core competencies and resources, Apple Inc. should consistently endeavor to find out the environment that is favorable to exploit the best available opportunities on the basis of its available capabilities and resource (Hitt et.al, 2016).
Influence of Apple’s Mission & Vision Statement on Its Overall Corporate Success
The vision and mission statement of Apple Inc. are the foundation of world’s most valuable business organization. Apple Inc. is a symbol of design, technological elegance and innovation. These characteristics are associated with its mission and vision statement as they keep the employees motivated to support and contributes towards organizational competitive advantage and innovation. Apple Inc. has recently changed its mission statement, which is different from the original idea of Steve Jobs. Tim Cook has introduced a new vision for Apple Inc. to reflect the current corporate position. New vision and mission statement has been developed over time to address changing market and organizational conditions (Hitt et.al, 2016). Apple Inc. follows its mission and vision statement to sustain its competitive business strategy. The vision statement of Apple provides it with the direction for development and growth. Whereas, its mission indicates the actions that are required to ensure that business will continue its path of success.
The vision statement of Apple is significantly comprehensive and it reflects the far-reaching strategic approach of the organization in ensuring its consistent development, success, and growth. For instance, the vision statement of Apple lists various real focuses; like for example, the accentuation on advancement and innovation that is directly associated with the strategy of quick innovation. Likewise, it determines simplicity, which is additionally an indispensable part of the organization’s way to deal with development and product design. Similarly, the mission statement of Apple focuses on the changing landscapes and market conditions, which influence the plausible outcomes of what Apple can do. The mission statement of Apple is inclined towards showing what the company does and will do in future (Frynas & Mellahi, 2015).
Role of Apple’s Stakeholders in Its Corporate Success
The Success and prosperity of Apple are partially credited to its capacity to fulfill its corporate social obligations and satisfying its stakeholders. A group of stakeholders imposes a number of demands to every business that are translated as the corporate social responsibilities, which impact the performance of the firm. For Apple’s situation, stakeholders essentially influence the corporation in terms of sales revenues and customer perception. While considering the persistent high brand value, Apple represents its stakeholders in its business procedures and strategies. Apple Inc. also considers the concerns and interests of its key stakeholders in its programs and policies. Stakeholders force shifting requests in various parts of business.
In the case of Apple, the most significant stakeholders include customers, employees, investors and Apple’s distributors/suppliers. Apple Inc. prioritizes its highly valuable customers as the most valuable stakeholders in formulating its corporate social responsibilities. The primary interest of customers with Apple is to get efficient and effective products that have a reasonable price. The second priority of Apple is its highly valued employees whose main interest is to get competitive compensation packages and benefits in return for their efforts and contributing towards organizational success. Employees are crucial for Apple as they directly regulate the HR capabilities of the company that is fundamental for profitable product development and innovation. Investors are usually the most significant stakeholder of any business. In the case of Apple Inc., its investors are interested in capitalization of investment returns. This concern is effectively addressed by Apple through its outstanding financial performance. Members of Apple’s value chain are of great consideration and their concern is similar to those of employees i.e. timely payments/compensation and long-term relationship. Apple Inc. imposes and monitors requirements of all its stakeholder's group (Frynas & Mellahi, 2015).
References
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press, USA. Retrieved on July 16, 2016
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management cases: competitiveness and globalization. Cengage Learning. Retrieved on July 16, 2016
U.S. Securities & Exchange Commission (2016) Official Website. Retrieved on July 16, 2016
