Apple Incorporated Research Paper

Apple Incorporated: An Analysis Adit Singh Business 50. 1 Company Research Paper Apple Inc.

Technology has taken an uprising since the late 20th century to our world today. Everyone essentially owns some sort of technological device from cellphones to computers. Companies like Microsoft, Xerox and Canon have made our lives simpler and possibly much easier, but there was another company waiting to override the norm and push an industry giant to its limits. Apple Incorporated, followed an unconventional path to its recent success in the computer industry, despite being consistently dominated by Microsoft.

What is the business of this company?

Apple Inc. In its entirety “designs, manufactures, and markets personal computers, portable digital music players, and mobile communications devices and sell a variety of related software, services, peripherals, and networking solutions. ” (Annual Report, page 1) One may think these markets are completely covered by the likes of Microsoft, Motorola and possibly a Microsoft owned digital music player. But in reality Apple’s MacBook, iPod, and iPhone are products that not only have a profound effect on the progression of technology available to the average user, but on average have begun to creep up on Microsoft and its market share.What was the total revenue of this company in 2006? What was the total expenditure of this company in 2005? In the 2006 fiscal year, the total revenue of Apple Inc was $19,315 (in millions) and its total expenditure in 2005 was $2,399 (in millions)(Annual Report, page 56). If you compare the net income of both companies, you see that Apple generates a little over $600 million dollars more than it did the year before.

This success is attributed to the products made by Apple as well as maintaining operational costs which essentially allows them to make such a profit.The credit for such good control goes to their management team who used every bit of leverage they possessed to present Apple as a marketable brand. Who is the CEO of this company? The man behind the recent success of Apple is Steven P. Jobs, one of the company’s co-founders and current Chief Executive Officer who is coincidentally director of the Walt Disney Company. (Annual Report, page 95) Although he wasn’t a genius in terms of computing and manufacturing things, his vision as CEO and as a director sets him apart from other men of his caliber.In fact, many people do not know that Jobs had a large part to do with the success of a classic American children’s film, The Toy Story.

Where is the headquarters of this company? Apple’s corporate headquarters are located in the heart of Silicon Valley, specifically 1 Infinite Loop, Cupertino, California. All of their services including engineering, marketing, sales, legal, human resources, AppleCare and others are available at this location. (Apple Website, Apple Locations)

Who are the major external stakeholders in this company?

How do they affect the decisions of this company? Other than Steve Jobs, the other stakeholders in the company have a profound effect on what decisions are made as well. These people include, William V.

Campbell, Millard S. Drexler, Albert A. Gore, Jr. , Arthur D. Levinson, Ph. D.

, Eric E. Schmidt, Ph. D. And finally Jerome B. York.

All of these people have very high positions in different industries, but mostly relating to technology of some sort, this basically helps Jobs get work done faster because of his accessibility to resources.Jobs even gets perhaps a different insight of the industry in terms of trends and needs from people like Millard S. Drexler and Albert A. Gore. Drexler has been Chairman and Chief Executive Officer of J.

Crew the clothing company since January 2003 so perhaps his vision on how any of the peripherals are designed. Then there is Albert A. Gore, more commonly known as Al Gore, our 45th Vice President. Gore has served as a Senior Advisor for Google Inc.

This perspective from a person with governmental experience gives insight on what improvements, as per the American public, may want.Where are the major markets? Apple, since its inception, has spread into a wide array of products that were commonly associated with other industry giants. Not only does Apple produce personal computers, but also cellular devices and digital music players. It is widely considered that the iPod launch was instrumental to Apple’s skyrocketing success. These devices are generally very expensive in comparison to its competitors, but because of its ease of use and overall superiority over the competition, its seemingly beating out the competition.

What is the mission of this company?

Apple’s goals as a company include bringing the “best personal computing, portable digital music and mobile communication experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings”. (Annual Report, page 1) With this direction in mind, Apple has created some of the most revolutionary products of our time, from the first touch screen cellphone, to probably the most easy to use operating system on a personal computer ever created.How does this company create value? What are its inputs, conversion process, outputs? Apple creates value through its prominent Research and Development. This department essentially creates products that are both usable and somewhat consumable.

So first, Apple has a vision as to what direction they want to take their brand, then this thought is put into play by researching the cheapest way in which it can be produced. Apple has seemed to always make products which cater to the general public whether its technically or aesthetically.It appeal within the youth might also contribute to their output power. For example just the people who purchase Apple products can dictate how much Apple can charge consumers. Who are the major competitors of this company? Because of the continuously expanding horizons of Apple, its list of competitors seems to grow more and more as the company moves forward. For example, other companies in the business of selling personal computers based on different operating systems have aggressively cut prices and lowered their product margins to gain or maintain market share.

It is widely known that Apple’s market share in the digital music industry is far more dominant compared to any other competitor in that market, hence that shouldn’t even be considered a market where Apple faces fierce competition. We must mention Apple’s step into the mobile communications market with their revolutionary product, the iPhone. Apple faces many well established competitors, but despite the appeal of their product, they cannot win over the whole market because of its price, and because of the imitations other competitors make of the iPhone.This essentially reduces Apple’s chance to completely take over the mobile communications market. What are the core competencies of this company and how are these used to competitive advantage? Apple is unique in the sense that its core competencies and its competitive advantage are the same.

Apple thrives on its ability to produce its own “operating system, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design. Herein lies Apple’s competitive advantage, their ability to produce products that seem attractive and easy to use for the consumer. Another core competence instrumental to Apple’s competitive advantage is the effectiveness of retaining their customer base and growing it because of their dedication to customer service.

How would you measure this company’s organizational effectiveness?

Apple essentially relies on its ability to innovate internally.

This keeps their company from becoming “just another company. Apple’s products differentiate themselves from the rest of the pack by setting new standards with their technology. Apple is also very technically sound, as in their commitment to customer service is another appealing factor towards why consumers are drawn to their products. Apple’s organizational structure has allowed every bit of success for its products.

Does this company have a code of ethics? Yes, the company has a code of ethics "that applies to all of the Company's employees, including its principal executive officer, principal financial officer and principle accounting officer, and the Board of Directors (Annual Report, page 97). The code is called "Ethics: The Way We Do Business Worldwide" and is available on www. apple. com/investor.

Does this company have any joint ventures or strategic alliances with resource providers? Apple obtains many of its materials including microprocessors, enclosures, and certain LCDs from single or limited sources. Apple also has several component suppliers and related manufacturing vendors including Broadcom Corporation, Samsung Electronics, Sony Corporation, and Toshiba Corporation.These vendors at times supply components and assist in manufacturing such as in the assembly of the iPod and iPhone. In addition, the company relies on AT, O2, T-Mobile and Orange to provide service for Apple's iPhone. Does this company engage in outsourcing or franchising? Yes, Apple does engage in outsourcing or franchising. For example, "significant portions of the Company's CPUs, iPods, iPhone, logic boards, and other assembled products are now manufactured by outsourcing partners, primarily in various parts of Asia (Annual Report, page 83).

"Is this company primarily organic or mechanistic or organic? Apple Inc. is an organic company, as innovation is not held down by rules and regulations. Designers are thus free to create and expand their ideas to develop something new and better. In this company, individualism and creativity are emphasized. The Company's future success depends on the continued service and available of skilled personnel, including its CEO as well as the executive team and key employees in the technical, marketing and staff positions.

What is the strategy of this company?DIFFERENTIATION, LOW COST, K strategy INNOVATOR - FIRST OUT THERE, R strategy FOLLOWER Apple is committed to bringing the best personal computing, portable digital music and mobile communication experience to its customers. It is an innovator as it seeks to design and develop its own operating system, hardware, application software and services so as to provide its customers with new products that are of superior ease of use, seamless integration and have innovative industrial design. In addition the company endorses differentiation as it believes in continual investment in research and development.It seeks to capitalize on the convergence of such products as the personal computer, digital consumer electronics and mobile communication devices. Most significantly the company is a heavy competitor and its ability to compete successfully depends on its ability to ensure new innovative products. It is thus the company makes heavy investments in research and development.

What kind of technology does this company employ? SMALL BATCH, LARGE BATCH? Apple Inc. employs both small batch and large batch technology. Most components essential to the Company's business are generally available from multiple sources (Annual Report, page 11). " Nonetheless, certain key components of the company such as microprocessors, enclosures, and certain LCDs are obtained by the Company from single or limited sources. The company sells all types of products from the iPhone to microprocessors.

After all the analysis about Apple, one must begin to notice the importance of this revolutionary company, on its way to dethrone Windows as the dominant force in the computing and electronic industry.Although it might take some time, Apple very certainly possesses the organizational, technical, and personal skills necessary required to effectively create its own place in the market. References 1. Apple Inc.. (2007).

SEC Annual Report 2008 [Brochure]. Cupertino, California: Apple Inc. 2. Apple Locations. Retrieved December 4, 2008, from Apple Web site: http://www. apple.

com/jobs/us/pro/inside/locations. html 3. Pumarejo, Tomas Lopez (2008). Introduction to Management. New York, NY: