Project 2011 inc

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Foundation in Arts

INTRODUCTION TO BUSINESS(MANAGEMENT & MARKETING)

PIB (M) 002

PROJECT 2011 (APPLE.INC)

Lecturer Name : Zurina Bt IsmailGroup Member : Nur Ain bt Shaharuddin (11039260)

: Hoe Wei Nian (11034071): Chin ChianYao (11032802): Preetha Sukumaran (11028925): Ang Synn Ee (11023538)

COLLEGE


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Name Task

Nur Ain Bt Shaharuddin Analyzing SWOT Analysis,Conclusion

Hoe Wei Nian (Nicholas) Ways to implement new strategies,Evaluate current performance, Report

Chin ChianYao (CCWHY) Introduction, Current Mission, Goals &Strategy and Slides

Preetha Sukumaran Designing New Logos and Ideas,Survey Forms.

Ang Synn Ee Define New Mission, Goals,Strategies, Formulating Strategies.


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Table of Contents

Page

i) Cover Page 1ii) Group Members Introduction Page 2

iii) Table of Contents 3

iv) Introduction of APPLE.INC 4

v) Define

- Current Mission

- Current Goals

5-6


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Introduction

Apple Computers 30-year history is full of highs and lows, which is what we would expect in ahighly innovative company. They evolved throughout the years into an organization that is very much

a representation of its leader, Steven Jobs. Apple made several hugely successful product introductions

over the years. They have also completely fallen on their face on several occasions. They struggled

mightily while Jobs was not a part of the organization. Apple reached a point where many thought they

- Current Grand Strategy

vi) Current Performance 7

vii) SWOT Analysis

- Strengths

- Weaknesses- Opportunities

- Threats

8-12

viii) Define

- New Mission

- New Goals

- New Grand Strategy

13-15

ix) Implementing Strategy 16-17

x) Logo & Design 18

xi) Survey for new strategy 19

xii) References/ Bibliography 20


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would not survive. When asked in late 1997what Jobs should do as head of Apple, Dell Inc.'s (DELL)

then-CEO Michael S. Dell said at an investor conference: "I'd shut it down and give the money back to the

shareholders. (Burrows,Grover, and Green)

Well, times changed. Less than 10 years later, Business Week ranked Apple as the top performer

in its 2006 Business Week 50. Apple attributes their recent success to robust sales of iPod music players

(32 million in 2005). They are optimistic about the economies of scope with media giants, such as Disney

and Pixar. (Business Week)

Apple rarely introduces a new type of product. Thus, instead of being the pioneer, they are

an expert second mover byrefining existing products. Portable music players and notebook computersare examples. Apple increases the appeal of these products by making them stylish and more

functional. They now appear poised to make significant strides in the home computer market and to

creating a total digital lifestyle whereby the home is a multimedia hub.

CURRENT

1) MissionApple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the

personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal

computing experience to students, educators, creative professionals and consumers around the world

through its innovative hardware, software and Internet offerings.


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2) Goals

Providing updates of their efforts and accomplishments at least annually, most likely around this

time of the year. And plan to bring other environmental issues to the table as well, such as theenergy efficiency of the products in our industry.

Theyre also beginning to explore the overall carbon footprint of their products, and may havesome interesting data and issues to share later this year.

Apple is already a leader in innovation and engineering, and theyre applying these same talentsto become an environmental leader. Based on their tangible actions and results over time,

hopefully their customers, employees, shareholders and professional colleagues will all feel proud

of their ongoing efforts to become a greener Apple.

The Company is committed to bringing the best personal computing, mobile communication and

portable digital music and video experience to consumers, students, educators, businesses, and

government agencies through its innovative hardware, software, peripherals, services, and

Internet offerings.

3) Strategies

For several years Apple's product strategy involved creating innovative products and services

aligned with a "digital hub" strategy, whereby Apple Macintosh computer products function as thedigital hub for digital devices, including the Apple iPod, personal digital assistants, cellular phones,

digital video and still cameras, and other electronic devices. More recently, the full impact of a

very well throughout brand strategy has come into focus - and one in which customer experience

is central

Apple has a branding strategy that focuses on the emotions. The Apple brand personality is about

lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; and

power-to-the-people through technology. The Apple brand personality is also about simplicity andthe removal of complexity from people's lives; people-driven product design; and about being a

really humanistic company with a heartfelt connection with its customers.

The brand equity and customer franchise which Apple embodies is extremely strong. The

preference for Apple products amongst the "Mac community", for instance, not only kept the

company alive for much of the 90's (when from a rational economic perspective it looked like a
http://www.marketingminds.com.au/branding/brand_profile.html#personalityhttp://www.marketingminds.com.au/demand_generation/customer_franchise.htmlhttp://www.marketingminds.com.au/demand_generation/customer_franchise.htmlhttp://www.marketingminds.com.au/branding/brand_profile.html#personality


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dead duck) but it even enables the company to sustain pricing that is at a premium to its

competitors.

It is arguable that without the price-premium which the Apple brand sustains in many product

areas, the company would have exited the personal computer business several years ago. Small

market share PC vendors with weaker brand equity have struggled to compete with the supply

chain and manufacturing economics of Dell. However, Apple has made big advances in

becoming more efficient with its manufacturing supply chain, logistics and operations, and it can

be assumed that as far as like-for-like hardware manufacturing comparisons are concerned,

Apple's product costs are very similar to those of Dell. In terms of price to the consumer, Apple's

computer products have an additional cost advantage: the company does not have to pay

another company for operating system licenses.

Apple seems to approach the people as a more user-friendly person. Rather than giving people astraight up "Would you like to continue with this action or deny" Macs seem to be friendlier in

some cases.

-Personal Computers A Shift in Strategy

Apple has historically taken a far different path than the traditional Windows and

Intelcombination. Microsoft provides the Windows operating system to separate downstreamhard

ware producers such as Dell. Apple vertically integrated both the operating system software and

hardware completely under Apple. A consumer running Microsoft Windows can choose from a

myriad of systems based on the Intel processor, while a consumer running Apples OS X mustpurchase Apple hardware

Apple is adjusting this strategy by migrating their microprocessors from IBM andMotorola

PowerPC to Intel. Analysts believe that the Intel-based Macintosh may be able to run Microsoft

Windows applications by the end of 2006. (Burrows)

Current Performance

Financial

Today Apples operations are as diversified as they were never before. With its currently 13,599employees worldwide it generated a revenue of $63 million in the last quarter. It holds cash reserves of

over $4.5 billion and has a ROIC of 3.05%.Apples operations are spread around the PC industry,computer peripherals and the software and service industry. In the overall PC industry Apples marketshare has diminished to a skinny 2.1%.Apple itself doesnt look itself at the overallPC market, as it has


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defined 4 specific markets on which it currently focuses on. The market shares in these sectors are to

some extent more significant.

Price Range of Common Stock

The price range per share of common stock presented below represents the highest and lowest sales

prices for the Companys common stock on the NASDAQ Global Select Market during each quarter of thetwo most recent years.

Fourth Quarter Third Quarter Second Quarter First Quarter

Fiscal 2010 price range

per common share

$293.53 - $235.56 $279.01 - $199.25 $231.95 - $190.25 $209.35-$180.70

Fiscal 2009 price range

per common share

$188.90 - $134.42 146.40 - $102.61 109.98 - $ 78.20 $119.68 - $ 79.14

HoldersAs of October 15, 2010, there were 29,405 shareholders of record.

DividendsThe Company did not declare or pay cash dividends in either 2010 or 2009. The Company anticipates

that for the foreseeable future it will retain any earnings for use in the operation of its business. Purchases

of Equity Securities by the Issuer and Affiliated Purchasers

SWOT Analysis

1) Strength

Technical savvyProduct lines are easy to use and stable which recent integration with Microsoft products lines

and Intel processors demonstrate ability and willingness to adapt to a diverse customer base.

However, such innovation would not be sustainable without a learning environment tolerant of

mistakes. it becomes very costly to imitate when it exists within the socially complex,


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entrepreneurial culture of Apple while the pure technical expertise alone is not a valuable or rare

resource.

Financial vitality

Cash reserves remained robust and stable despite stagnant market share growth in the computerhardware and software arenas. Apple exploited this by resisting market pressures to reduce costs,

tightly integrating product packages, and forming strategic alliances. As an example is securing

the backing of all major music distributors in the support if iTunes.

Brand loyaltyThe only way that Apple could maintain the financial vitality described above is

via a fanatical, almost cult-like, affair with its customer base. Such brand loyalty is extremely

costly and time-consuming to imitate.

Steve Jobs As discussed earlier, Jobs proved to be a vital component to Apples success . During

his absence in 1985 until 1996, Apple experienced the most turbulent whether in financial

and innovative timeline in its history. Immediately upon his return, here placed most of the Board

of Directors, pruned and focused the new product ideas, and de li ver ed se ven cons ecut iv e

quarters of positive earnings to shareholders. (Linzmayer,289-99) As such, Jobs is

certai nly a val uable , rar e, an d har d to imit ate r esour ce th at Apple fully exploits.

Products

Brand is all-important. Apple is one of the most established and healthy IT brands in the World,

and has a very loyal set of enthusiastic customers that advocate the brand. Such a powerfulloyalty means that Ample not only recruits new customers, it retains them i.e. they come back for

more products and services from Apple, and the company also has the opportunity to extend new

products to them, for example the iPod.


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Conclusion :

Apple is a very successful company. Sales of its iPod music player had increased its second quarter

profits to $320 (June 2005). The favorable brand perception had also increased sales of Macintosh

computers. So iPod gives the company access to a whole new series of segments that buy into other

parts of the Apple brand. Sales of its notebooks products is also very strong, and represents a huge

contribution to income for Apple.

2) Weaknesses

Market shareApple has historically been strongest in the US geographical and educational vertical

markets. With the educational market facing tightening budget constraints and the US

approaching a PC saturation point, Apple may need to burn cash more quickly and succumb to

market cost pressures on its products without a strategic innovation, integration, or divesture.

Steve Jobs


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For virtually the same reasons Jobs is a strength, he is simultaneously a weakness. The

aggressive drive to bring innovative visions to life was noticeably absent and painfully felt,

especially by shareholders during his departure. The apparent absence of succession planning

coupled with a lust for the limelight positioned Jobs as Apples single consciousness in the eyesof consumers and shareholders.

Conclusion :

It is reported that the Apple iPod Nano may have a faulty screen. The company has commented that

a batch of its product has screens that break under impact, and the company is replacing all faulty items.

This is in addition to problems with early iPods that had faulty batteries, whereby the company offered

customers free battery cases.

There is pressure on Apple to increase the price of its music download file, from the music industry

itself. Many of these companies make more money from iTunes (i.e. downloadable music files) than from

their original CD sales. Apple has sold about 22 million iPod digital music players and more than 500

million songs though its iTunes music store. It accounts for 82% of all legally downloaded music in the US.

The company is resolute, but if it gives in to the music producers, it may be perceived as a commercial

weakness.

Early in 2005 Apple announced that it was to end its long-standing relationship with IBM as a chip

supplier, and that it was about to switch to Intel. Some industry specialists commented that the swap

could confuse Apple's consumers.

3) Opportunities

Consumer electronics

With the startling success of the iPod and iTunes, Apple entered the consumer electronicsmarket. By expanding the iTunes concept to downloadable mobile phone features and movies

podcasts, the door is now open to develop new

and potentially profitable strategic alliances with peripheral component manufacturers such as

speaker, home stereo, and etc. While the media transmission giants such as Disney, TBS,

Verizon, and etc.


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PC hardware and software market growthWith cross-licensing of operating system platforms in place, Apple entered the high-volume

business environment traditionally dominated by Windows-based PCs. The introduction of Intel-

based processors prompted businesses to replace PCs with iMacs. They did this to gain a level

of stability andre liability in their business applications that PCs failed to provide. An example isJapans Aozora Bank Ltd., who is replacing 2,300 PCs with iMacs. Wing field, Apple mustestablish themselves as a credible player in business desktop applications to overcome the

desktop publishing stereotype.

Conclusion :

Apple has the opportunity to develop its iTunes and music player technology into a mobile phone

format. The Rokr mobile phone device was developed by Motorola. It has a colour screen, stereospeakers and a advance camera system. A version of Apple's iTunes music store has been developed for

the phone so users can manage the tracks they store on it. Downloads are available via a USB cable,

ands software on the handset pauses music if a phone call comes in. New technologies and strategic

alliances offer opportunities for Apple.

Podcasts are downloadable radio shows that can be downloaded from the Internet, and then played

back on iPods and other MP3 devices at the convenience of the listener. The listener can subscribe to

Podcasts for free, and ultimately revenue could be generated from paid for subscription or through

revenue generated from sales of other downloads.

4) Threats

Legal risksIn a market that literally changes at the speed of thought, patent and copyright infringement risks

remain high. As long as operating systems and support software packages continue to convergeand remain relatively easy to imitate, present and future lawsuits are inevitable. The Apple

records claim against iTunes remains unresolved.

Competition


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This threat occurs primarily on two fronts: PC hardware/software and consumer electronics. For

the same reasons discussed in the opportunities section, the threat of limit ability increases such

as cloning, pirating and etc. As relative newcomers to the consumer electronics arena, will

Apple retain a competitive advantage as they diversify their offerings

Conclusion :

The biggest threat to IT companies such as Apple is the very high level of competition in the

technology markets. Being successful attracts competition, and Apple works very hard on research and

development and marketing in order to retain its competitive position. The popularity of iPod and Apple

Mac are subject to demand, and will be affected if economies begin to falter and demand falls for their

products.

There is also a high product substitution effect in the innovative and fast moving IT consumables

market. So iPod and MP3 rule today, but only yesterday it was CD, DAT, and Vinyl. Tomorrow's

technology might be completely different. Wireless technologies could replace the need for a physical

music player.

In 2005 Apple won a legal case that forced Bloggers to name the sources of information that pre-

empted the launch of new Apple products. It was suspect that Apple's own employees had leaked

confidential information about their new Asteroid product. The three individuals prosecuted, all owned

Apple tribute sites, and were big fans of the company's products. The blogs had appeared on their sites,

and they were forced to reveal their source. The ruling saw commercial confidentiality as more important

as the right to speech of individuals. Apple are vulnerable to leaks that could cost them profits.

Apples New Mission

1) Apples products used among classes, different layer in the society.

For example: students, designers, music producer, business, and even pilots to use Ipad as their

checklist. To satisfy unlimited human wants to maximum their satisfaction. Apple need to create more

creativity product compare to others .Example : Slim and lightest ,High tech and better quality .Other than

that ,if want to success in their future they should do some certain survey to analyze what type of

category of products they should focus on.


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2) To meet the future generations demand for high technology products and to

cultivate users in adapting rapid changes in Technology.

As future is changing vigorously, the demand for high Technology products is getting stronger in the

market for the consumers .This will also cause the quality of lifestyle getting higher. Other than that, as

new inventions being developed everyday people will slowly adapt to the rapid changes in the

Technology .Besides that, Apple is no longer just to organize the worlds technology, but to meet thedemand of technology with information and to produce products to serve the demands of users in the fast

paced Technology. As planning and management of department is also important for every Applesproduct.

Apples New Goals

1) T o meet peoples expectation

Based on the consumer needs, we should focus on meeting what people expect from Apple .Besides that,

they should place the future as a priority at the first place, this is interpreting what is present today and

what tomorrow generation may want to remain competitive in the industry .Future generation is the future

users of Apple where they are placed first, in order to innovate something that is so new, futuristic and

modern. In other way, Apple can get survey from consumers to know their needs. Lastly, we need tocarry out research into customer requirements to make sure that they provide those products and

services which best meet customer expectations in the relevant market segment.

2) Before 2013, the human begin will be having at least 1 apples product with

themselves.As ages of century grow, humans needs are unlimited and always go for the popular side .According to

the research, almost every family now at least have one Apples product with them. So Apple expectedthat every family will be having at least one apples product with them before 2013.This is not onlybecause of the population but the quality of high technology. In the future, Apple predicted will become

the success full company as their sales revenue increasing every year .This could be a big achievement

among all the high technology company.


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Apples New Strategy

1) Apple One-Station Service

As new products also need a new strategy to success in the future because creation is different in every

year. Apple must full control over the services to show how efficient management product from

apple .Detailed information for every products is also important so that will make sure all the consumers

clearer about all the information on the products. This will help the organization made easier to know what

they need to improve. Besides that, every Apple users can get free repair software services but there is acertain charges may apply for specific software.

2) Psychological research department

The objective is to study how to manage and plan for the company in the future. In addition, we can also

easily analyze the behavior of employees to control the company and make sure the organization of

company is going smoothly and take corrective action when it is needed. Such department will hold the

simple formula of User+ Future = Apple. Lastly, this will take Apple into the leaders quadrant in the futureand making them the toughest competitor in the industry.

3) Opening 5 branches of Apple Caf in Malaysia

Apple company are planning to opening 5 branches of Apple caf In Malaysia. We are planning to open

the 5 branches of Apply Caf in KL, Petaling Jaya, Johor Bahru, Penang and Kuching, mostly are the

crowded places. The objective of opening the branches it is because Apple caf can help to attract more

customer from different layer of the society or the community to know more about Apples products. Thiswill not only increase the revenue but more recognizing as a main trademark for the company. This will

turn and create a new revenue stream for the caf and eventually create a new production line for the


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company .Besides that, we need a good management as branches in caf because it will be more risky

because there are many competitors of caf in the market. We will also need some comprehensive

training for the employees so that can avoid those mistakes and learn from the others.

Implementation of new Strategies

1) Leadership / Culture

The leaders like the CEO,CFO, COO or the managers will try to cooperate with the employeesand if possible, not to use coercion method for the employees unless is necessary.


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The leader must be aggressive, creative, innovation and has the ability to change the culture orthe behavior of the employees.

Office environment should be in a relaxing and comfortable condition to improve or to innovatesthe employees creativity and creating ideas.

Invest more money to let everyone of the employees know how to lead, public speaking, andhave confidence in themselves.

2) Human Resources

The Head of Department of the human resources must ensure that the employment of staff must

be strictly done to avoid commercial spies.

The list of the newly recruited staffs must be filter.The company should have employee integration to improve the skills and knowledge.

Organizing annual dinner and company trip to ensure the employee knows about the current plan

and strategies, the top management, and motivated by the new coming strategies.

3) Information

Provides a search engine, Imply human skills to the combat spammer issue, having a carelesspage rank caused by algorithms, and lastly provides a Report page button for the search engine.

Always update the websites news feed to let the consumers know more about the happenings of the apple company.

Introducing more branches for one stop engine shop, but not having partnership with others. Create interesting advertisements that will attract the attention of the society or community.

4) Control System

Research & Development

For the employees. To ensure that the employees is satisfied with current job or condition.

For the consumers. To know more about customers or consumers satisfaction and feedback for products.


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For competitors. Modify the strategies. Learn from their mistakes.

Total Quality Management

Quality Circle. The employees about 6 to 12 people meets up regularly to discuss and solveproblems affecting the quality of the work especially for the branches among the world.

Benchmarking. Comparing with the competitors and try to copy the best from them.

6 Sigma. Emphasizes a relentless pursuit of higher quality and lower costs. Take disciplinemethodology : DMAIC ( Define, Measure, Analyze, Improve and Control)

Reduced Cycle Time. Trying to reduce the process of the production or services.

LOGO AND DESIGN


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As for the logo for our new company line , we have chosen the official apples logo but with thecolour green . The reason behind this is because, green symbolizes a more peaceful and creative side of

a person. Green symbolizes the nature and that indicates peace and since this new project of ours

involves people coming to this cafe to release their tension and start working on an assignment or task of

their own with a peaceful and creative mindset, therefore the colour Green is the most suitable colour andwe are proud to have chose this colour to represent our new project line .

The interior of our Apple Caf is also going to be the colour green. We have decided to use

different shades of green in certain areas of the Caf and Cyber Caf , because we didnt want to set amonotone feeling which is boring , we want to mix things up and set a creative and innovative

atmosphere for our customers . Our Customers will step into a new environment and feel energized and

ready to start being creative and making new ideas.

SURVEY about Apple Caf


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The table above shows us the outcome of a Survey that we have done through the students in

Sunway College. The survey is to see how many people are actually interested in this new strategy that

we have came up with. The survey that has taken place indicates that many people these days own at

least one of the product from Apple inc, and out of this 30 people, 20 people are actually interested in the

new Apple caf project and 10 people arent interested and the reason for that it is, because they f ind Apple products is too expensive for them and they think the idea of the cyber caf wasnt appealing tothem. Nonetheless, the survey shows that majority of people that are more interested and fond of this

idea and people are willing to pay any amount to come to this caf.

AGE RANGE 16-24

SEX Female : 20 Male : 10

DO YOU KNOW ABOUT APPLE INC 30/30

DO YOU OWN A APPLE PRODUCT 15 Yes, 15 No

IF YES , WHATS THE PRODCUT IPOD, IPhone, Macbook

IF NO, DO YOU WISH TO HAVE IT? 12 Yes, 3No

REASON WHY YOU DONT HAVE IT? Too Pricey

APPLE CAFS IDEA Yes: 20 No :10


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References

1) http://en.wikipedia.org/wiki/Apple_Inc ( retrieved on 25-09-2011)

2)

http://www.apple.com/pr/ ( retrieved on 25-09-2011)

3) http://www.apple.com/about/ ( retrieved on 25-09-2011)

4) Miguel Helft; Ashlee Vance (retrieved on 03-11-2011). "Apple Passes Microsoft as No. 1 inTech". The New York Times .

5) Apple Investor Relations FAQ, Apple inc. (Retrieved on 03-11-2011)

6) http://wiki.answers.com/Q/What_is_the_mission_statement_of_apple_inc#ixzz1Z9vRDQc1 (retrieved on 14-9-2011, 15-9-2011,16-9-2011)

7) http://what-is-what.com/what_is/apple.html (retrieved on 23-9-2011)

8) http://marketingteacher.com/swot/apple-swot.html (retrieved on 16-9-2011)

9) http://www.google.com.my/ (Retrieved on 1-10-2011)

10) http://www.umlib.um.edu.my/publications/APA-Guide.pdf ( Retrieved on 04-10-2011)

11) Zurina Ismail, Muhinsw Ari Govindasamy, Ruba Loshani Langa Singham (2010) Introduction tobusiness (Management & Marketing) (5 th Edition). Malaysia. Sunway College Foundationin Arts

(Retrieved on 16-09-2011)

-The End-
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