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Apple strategy evaluation
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How recent economic trends are influencing the business
A firm and its management are affected by many factors present in its environment and this because a business can not operate in vacuum. The factors existing in a business’ environment are beyond control by a firm and the factors affects how a business operates and performs in the market (Li, 2008). Other macro environmental factors besides economic that affect business performance include political factors, social, demographic or ecological, and technology. The economy is an important factor affecting businesses since it determines level of profitability a business can receive from operations. In recent period the economy can has been characterized by recession and increasing inflation levels. These two issues have had significant effect on businesses in terms of strategies, costs and profits.
The recession has had significant impact within the country and across the world and has had mainly negative effect on businesses. In order for businesses to make profits their must exist demand for their products but the recession affected the demand for products thus business had to change their business processes. One trend exhibited by businesses to recent economic condition is price wars. The prevailing economic conditions have led to consumers spending and demanding fewer products which in turn results in reduced sales for businesses (Li, 2008). Businesses are involved in price wars in an attempt to attract customers and maintain their sales levels. Since the economy has resulted in reduced demand for products it means that Apple will have reduced sales. Other effect of recession on business includes increased risks and also businesses looking into new methods to cut down on c...
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...e it has strengths major strengths that include a strong brand known for innovation and quality. The company has also developed strategies to guard against internal and external changes thus ensuring stability in performance.
Works Cited
Li, B. (2008). An Investment Analysis of Apple: Case Study. Associated Content From Yahoo. Retrieved On October 6, 2011 from Http://Www.Associatedcontent.Com/Article/1170502/An_Investment_Analysis_Of_Apple_Inc_Pg16.Html?Cat=3
Lliev, V., Lindinger, A. & Poettler, G. (2004). Apple Computer Inc. Strategic Audit. Retrieved On October 6, 2011 from Http://Www.Andreaslindinger.Net/Downloads/Strategicmgmts-Lindingeretal.Pdf
Rogers, J. (2008). Apple’s Not Letting Economy Get It Down. Technology Update. The Street. Retrieved On October 6, 2011 from Http://Www.Thestreet.Com/Story/10443376/1/Apples-Not-Letting-Economy-Get-It-Down.Html
On January 25, 2000, Apple’s portable pc the iBook was ranked number 1 in its fourth quarter market and gives Apple a 10% share of all portable computers in the U.S. retail market and is estimated to have a 7% in foreign markets. I believe an increase in demand for this product over the next few months and Apple’s ability to supply the increase will be gradually pushing the price upward. The introduction of Apple’s new operating system is underway and is sure to boost stock price after the new product is highly marketed.
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
The business cycle is the short-run alternation between economic downturns and economic upturns (Investopedia n.d.). A recession is an economic downturn and happens in every country and some recessions are worse than others and the output of GDP and employment are falling farther and faster. The great depression lasted from 1929-1933 and was a deep prolonged downturn in the business cycle before a recovery/expansion of the business cycle occurred and GDP and employment started to rise (Krugman & Wells. 2012). The next recession lasted from 1981-1982 and was comparatively smaller than the first (Krugman & Wells. 2012). More recently in 2001 a slump in the economy was noted and was followed by the great rescission of 2007-2009 (Krugman & Wells. 2012). Recession is defined as a “period of at least two consecutive quarters (a quarter is three months) during which the total output of the economy shrinks” (Krugman & Wells. 2012). In the United States the National Bureau of Economic Research (NBER) is assigning the task of determining when a recession begins and the NBER looks at a variety of economic indicators such as employment and production (Krugman & Wells. 2012). Every business cycle recession has a negative impact on the economy the recession’s deferrer on the strength of the impact on the country. Consider the two charts for Figure 21-5 of the more recent recessions of 2001 and 2007. The Recession of 2001 did not last as long as the recession of 2007 and did not have as much of an economical hardship on the business cycle and as shown 2007 dipped greatly in industrial production. In the second chart it demonstrates a recession at the point the economy turns from expansion to recession or the business-cycle peak. Then in the char...
The industry, indicates that IBM would impact our economy in very positive strong way were it contributed lots of products to all electronics retailer. Michael Porter’s main force is to analyze the necessary framework of five points. The five Forces include: (1) the threat of entrants, (2) bargaining power of buyers, (3) bargaining power
New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.
Mandel, Susan. "Hard Times." Nine recessions that give these times a little perspective, April 2010, p 63.
In fact, about this business one can easily write a few weighty books. Without exaggeration, we can say that Apple is one of the brightest technology companies that appeared in the 70s of the last century. Due to innovative technology and aesthetic design, Apple Inc. has established a unique reputation comparable to the cult in the consumer electronics industry. In 2014 the company was ranked first in the world by market capitalization. The concept of the brand is built around the slogan 'Think different’ (Linzmayer, 2004).
Apple has made reasonable management of its human and material resources since its innovational approach demands effective strategic allocation of its resources to the development and utilization of its productive resources to support its innovative investment strategies. Effective strategic control brings power to Apple’s decision-makers to allocate its resources to confront the technological, market, and competitive uncertainties which are inherent in the innovation
There are many responses that a company can have to troubling economic times. They can first weather the storm and survive. They can back up and get driven out of business, or they can grow. The economy has been in recession for many months. It is the job of our company to identify things that can help businesses to make it through these times and hopefully prosper.
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
The history of apple is not shy of turbulence with large periods of its early stages met with instability and downturn. Apple Inc. was founded by Steve Jobs and Steve Wozniak and was established on April 1, 1976 and incorporated the company on January 3rd 1977. The first two decades of its inception Apple was predominately in the business of manufacturing personal computers however as alluded to it faced rocky sales and low market shares during the 90’s. Steve Jobs, one of the original founders of the enterprise who had been dismissed in the mid 80’s following differences in vision for the companies future, returned to Apple in 1986 after Apple had acquired his then company NeXT (Apple Inc., 1...
downturn with four changes in CEO since 2009 (Exhibit I). Having a strong corporate force is so important
Economic factors affecting negative or positive way the companies. The inflation and currencies rates have big influence.
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
Apple Inc is functional departmentalisation. There are 15 departments responsible for specific tasks. These departments are finance, legal, software engineering, marketing, retail and online stores, hardware engineering, industrial design and human interface, internet so...