Instructions
Choose one public corporation in an industry with which you are familiar. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database [http://www.sec.gov/edgar.
Be sure each paragraph has at least 5 sentences or more.
Write a five page paper in which you”
1. Thoroughly, assess how globalization and technology changes have impacted the corporation you researched.
2. Thoroughly, apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns.
3. Thoroughly, assess how the vision statement and mission statement of the corporation influence its overall success.
4. Thoroughly, evaluate how each category of stakeholder impacts the overall success of this corporation.
5. Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
The assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
Essay
Strategic Management and Strategic Competitiveness
A public corporation refers to companies that allow public trading of their shares. It also refers to the companies owned by the government. Apple Company is a public traded company whose shares have been listed on the NASDAQ Stock Exchange market (Apple Press, 2015). The Apple Inc. is a multinational company with headquarters located in Cupertino, California. Apple invested largely to benefit from the globalization and technological developments.
Globalization has created an extensive market for Apple Inc. With the globalization, the Apple Inc. has realized enormous sales globally. The Apple Inc. has advanced in building a global infrastructure. The infrastructures located in Singapore, California and Ireland makes it possible for the Apple Company to launch new products in Europe, the United States of America, and Asia respectively.
However, the globalization also challenged the technological expertise of Apple Inc. The Company has to create products that promote global interaction of the people. People need products that enhance their global interactions. Many companies specializing in computers, phones, and the electronics have made efforts to meet the emerging global communication needs. The major competitors of the Apple Inc. include the Samsung, Huawei, and Google. The competition has been increasing with each company making efforts to meet the consumer needs and have more awareness on the market. Consequently, there has been a progressive production of very innovative products from the Apple Inc. such iPhones, and the iPads as it tries to outdo other companies (CNN Money, 2013). The Apple Inc. currently invented the Apple TV. The TV comes with a Siri Remote that enables the users to search what is more entertaining on the television. The TV operating system enables the application developers to send the applications directly to the user.
Technological developments have a huge impact on the success of the Apple Inc. marketing strategies. Market Analysts have frequently predicted the decline of Apple Inc. business. Nevertheless, the technological innovations adopted by the Apple Inc. have always brought success into the business. Most of the Apple products are sold at a higher price compared to those of other companies. Due to innovations, the customers view the products of the Apple Inc. as Veblen goods and they are willing to pay the high prices charged by the Apple Inc.
The Industrial Organization Model holds that the external forces are the major determinants of the strategic actions adopted by a firm (Spiegler, 2011). It is based on the assumptions that competitive pressures in the industry have a huge impact on the strategies that will realize above average returns. The firms in the same industry have almost similar strategies. Moreover, resources that can be transferred easily among firms with management committed to the success of the firm.
It is crucial for the Apple Inc. to assess the external environment. The assessment of the competing firms will enable Apple Inc. come up with strategies that will result in high returns. The competitors such as Samsung Electronics and Sony Corporation need to be considered when making strategies for the Apple Inc. They are vital members of the industry, especially for the newly introduced TV. The company should then identify skills, technology, and other resources necessary to implement the strategy.
The Resource-Based Model holds that the internal capabilities of a firm enable a firm to earn returns above average. The distinctive resources and skills would make certain the increased earnings of the firm (Spiegler, 2011). The firm acquires the resources used in the building competitive capabilities. Once the company acquires the resources, they cannot be transferred to other companies. The Apple Company has maintained vital strategies in making sales of its highly priced products such as phones, personal computers, watches, and televisions. Maintaining increased returns requires the firm to build skills and invest in the unique technology to compete effectively in the industry.
In Apple’s current vision statement, the CEO stated that they aim to provide great products. More so, they were continuously focusing on innovation of simple products as opposed to complex products (Nicolas & Sanz, 2014). Besides they believe in owning and controlling the key technologies behind the products that they make. They also focus on only the markets that they can make significant contributions a factor that allows them to innovate in a unique way compared to other companies.
The vision statement of Apple plays a significant role in influencing its overall success. For instance, the vision gives informative details about the company. It reflects that company’s inclusive approach to ensure the success and growth of the company. For example, the vision statement entails its emphasis on innovation and simplicity in their products that reflects in its key aspects in design and development of their products. Due to their vision, Apple is widely known because its products are friendly, easy to use and improves the users’ daily activities (Nicolas & Sanz, 2014). The vision statement also reflects a proper selection of market segments. Such a marketing strategy reflects their reliance on market research in their decision-making and product development. Their key involvement of the employees’ collaboration and excellence is a key determinant of the success of the corporation. The detailed nature of the company’s vision statement greatly influences their success. The holistic approach of the leaders of the company is effectively shown in the vision statement. Therefore, regarding conventions of the construction of vision statement, it is acceptable as it outlines the direction of the company. Such a detailed vision statement influences the corporation’s success as it acts as a yardstick to the decision makers and employees in working towards the objectives of the company. In this case, the objective of Apple is to achieve continued global success based on excellence and innovation.
Mission Statement
Apple’s mission statement also influences its future success. It states what the company does and will continue to do. For instance, the mission statement states that the company designs the best computers globally as well as professional softwares. More so, the company’s products, such as the iPods and iTunes in the online store, lead in the digital music revolution (Nicolas & Sanz, 2014). The current condition of the company is reflected in the details about the different product lines. Such details are important in setting and recognizing the future actions of the company. It also shows that the company plans to continue engaging in research on the provision of more innovative products. It is, therefore, evident that the vision and mission statement of the company greatly influences its success.
Stakeholders
Customers
Apple’s customers contribute significantly to the success of the company. They are the reason for the existence of the company (Nicolas & Sanz, 2014) . They direct their purchasing power to the products of the company thereby generating numerous profits for the company. They form the external part of stakeholders and without them then the company would not exist. Consequently, the company directs most of its efforts in meeting the customers’ needs.
Suppliers
The suppliers are also an integral part of the company’s stakeholders who contribute significantly to the company’s success. Without suppliers, Apple would not be in a position to produce any product (Nicolas & Sanz, 2014) . The suppliers provide the instruments required by company to produce their innovative products. In that case, the suppliers supply the instruments according to the requirements of the company and, therefore, contribute to their success.
Owners
The owners form part of the internal stakeholders of the Apple Company. They influence the success of the company since they hold the last say on every activity that takes place at Apple Company (Nicolas & Sanz, 2014). Therefore, the decisions that the owners make is reflected in the successful operation of the company. More so, they contribute the funds towards the company’s operation. In that case, the success of the company is greatly determined by the owners.
The local and national community
The local community forms that internal part of the company’s stakeholders. They usually have the right to know whatever is happening in the business that influences their lives. In that case, Apple has established an Apple Day where the members of the local community come together and purchase their products (Nicolas & Sanz, 2014). On the contrary, the national community is external stakeholders. They contribute to the company’s success by purchasing their products, which helps the company to keep ahead of their competitors.
References
Apple Press. (2015), Apple brings back to television with the-all new Apple TV. Retrieved from, http://www.apple.com/pr/library/2015/09/09Apple-Brings-Innovation-Back-to-Television-with-The-All-New-Apple-TV.html
CNN Money. (2015). Apple’s innovation conundrum. Retrieved from, http://money.cnn.com/2013/06/09/technology/new-apple-products/
Nicolás Marín Ximénez, J., & J. Sanz, L. (2014). Financial decision-making in a high-growth company: the case of Apple incorporated. Management Decision, 52(9), 1591-1610.
Spiegler, R. (2011). Bounded rationality and industrial organization. Oxford: Oxford University Press.
