Apple Written Report

TMGT 3305-V01
Spring 2015
Team #1:
Rinus DeLaRosa, Claudia Hernandez,
Vivien Regalado & Ana Zuniga

Table of Contents:

Backgroundpg. 3
Products/Servicespg.5
External Environment.pg.7
Evaluation.pg.10
Recommendations.pg.12
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Reference Page..pg.13

Background:
Apple is an American multinational corporation headquartered in Cupertino, California,
that designs, develops, and sells consumer electronics, computer software, online services, and
personal computers. Apples best-known hardware products, are the Mac line of computers, the
iPod media player, the iPhones, and the iPad tablet computer. Apple designs Macs, the best
personal computers in the world, along with OS X, iLife, iWork and professional software. Apple
leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented
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the mobile phone with its revolutionary iPhone and App Store, and is defining the future of
mobile media and computing devices with iPad.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April1, 1976
and became Apple Inc. on January 9, 2007. Apples first headquarter was in Steve Jobs parents
garage, where Jobs and his friends designed their first computer kit: the Apple I. Apple is the
worlds second-largest information technology company by revenue after Samsung Electronics,
and the worlds third-largest mobile phone maker. In 2014 it became the largest publicly traded
corporation in the world by market capitalization. Apple became the first U.S. Company to be
valued at over $700 billion. The Company posted quarterly revenue of $58 billion and quarterly
net profit of $13.6 billion. These results compare to revenue of $45.6 billion and net profit of
$10.2 billion in the year-ago quarter. As of August 2010, the company operates 301 retail stores
in ten countries, and an online store where hardware and software products are sold. Apple plans
to open 25 new stores in China alone by 2016. As of May 2011, Apple is one of the largest
companies in the world and the most valuable technology company in the world, having
surpassed Microsoft.
Apples mission statement is, "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.
Apples major stakeholders include shareholders, lenders, Apple employees,
manufacturers, software developers, customers, suppliers, and a lot of the music industry. The
company says theyre seeing a higher rate of people switching to iPhone than they had
experienced in previous cycles, and theyre off to an exciting start to the June quarter with the
launch of Apple Watch. Apples Strategic Planning: Theyve created desirable offerings and

features to create consumer lock-in and switching costs, but this hasnt been due to a master plan
laid out years ago. Its not like Steve Jobs rolled out a calculated product roadmap ten years ago.
Rather, he set a strategic target for Apple to be the digital hub for consumers. In hindsight, its
easy to see those ten years ago, Apple had only a few ideas on how to do this. The rest came
from a long series of experiments that created the ecosystem effects it desired. They believe that
they are on the face of the earth to make great products. Apple is committed to bring the best
personal computing experience to students, educators, creative professionals, and consumers
around the world through its innovative hardware, software, and Internet offerings.
Apple computer is committed to protecting the environment, health, and safety of their
employees, customers and the global communities where they operate. Apple strives for
continuous improvement in their environmental, health and safety management systems and in
the environmental quality of their products, processes and services. Apples business strategy is
also being extremely competitive. Apple competes with Microsoft in operating systems and
software. Apple competes with IBM, DELL and HP in personal computers and laptops. Apple
competes with Adobe in Multimedia software applications. Apple competes with so many
companies and always has higher sales. They believe in the simple, not the complex. They
believe in saying no to thousands of projects so that they can really focus on the few that are
truly important and meaningful to them. They dont settle for anything less than excellence.
Products/Services:
Apple is the company that has changed the world of computing and entertainment. Thats
through a unique kind of PC, through the iPod, then the iPhone and most recently the iPad. This
is not to mention the implausibly slim, trend-setting MacBook Air laptop. In 1976, High-school
buddies Steven Wozniak and Steven Jobs start Apple Computer. Their first product, Apple I, built
in circuit board form, debuts at "the Homebrew Computer Club" in Palo Alto, California, to little
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fanfare. In 1977, the Apple II is unveiled, as the first personal computer in a plastic case with
color graphics. In 1983, Apple starts selling the "Lisa," a desktop computer for businesses with a
graphical user interface, the system most users are familiar with today. In 1984, Apple debuts the
Macintosh personal computer, hyped with a dark, stylized commercial. In 1991, Apple
introduces the PowerBook 100, its first hit portable computer. In 1993, the Newton Message Pad
debuts as Apple's first handheld device, it has a touchscreen and features tools found in today's
smartphones, such as an address book, calendar and e-mail function. Unfortunately it was
unsuccessful. In 1997, Steve Jobs introduces a new line of Macintosh computers called G3, and a
website that lets people order directly from Apple. In 1998, Apple unveils the iMac desktop
computer.
In 2001, Apple introduces the iPod, a palm-sized, hard-drive-based digital music player.
In 2003, the iTunes Store opens, allowing users to buy and download music, audiobooks, movies
and TV shows online. In 2005, the iPod adds video, and Apple fills out its portable media line
with the low-end iPod shuffle, and sleek iPod Nano. In January 2007, Apple announces the
iPhone. The device features one button on its smooth face and a virtual keyboard. It also
introduces Apple TV, which attracts few buyers. In September 2007, Apple unveils the iPod
Touch, which has wireless capabilities and performs much like a portable computer. In 2008,
Apple opens its App Store as an update to iTunes. The store features small applications that add
functions to the iPhone and iPod Touch. Apple also releases the MacBook Air. In 2009, Apple
releases the iPhone 3GS. The company has sold more than 220 million iPods so far. In April
2010, Apple begins selling the iPad, a 10-inch touchscreen tablet, and has an 84% share of the
tablet market by year's end. In February 2011, Verizon Wireless, a venture of Verizon
Communications Inc. and Vodafone Group Plc., starts selling the iPhone in stores and puts an
end to AT&T's exclusive contract for the phone in the United States. Also in the same month,
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Apple launches a long-awaited subscription service for magazines, newspapers, videos and
music. The following month, Apple launches the iPad 2, a sleeker, lighter version of its tablet
with a new dual-core processor, and two cameras and, for the first time, it comes in either white
or black. Ever year after that Apple launches new models of their most known products such as
the MacBook, iPhone, and iPads. Apples latest newest product is the Apple Watch that was just
released last month. The Apple Watch incorporates fitness tracking and health-oriented
capabilities as well as integration with iOS and other Apple products and services.
Apple has 447 retail stores in 16 countries and an online store available in 39 countries.
Each store is designed to suit the needs of the location and regulatory authorities. Apple has
received numerous architectural awards for its store designs, particularly its midtown Manhattan
location on Fifth Avenue. The Apple Store in Regent Street, London, was the first to open in
Europe in November 2004, and is the most profitable shop in London with the highest sales per
square foot. The Regent Street store was surpassed in size by the nearby Apple Store in Covent
Garden, which was surpassed in size by the Grand Central Terminal Apple Store, New York City,
in December 2011. Of the 43,000 Apple employees in the United States 30,000 work at Apple
Stores. Apple Store employees make above average pay for retail employees and are offered
money toward college as well as gym memberships, 401k plans, healthcare plans, product
discounts, and reduced price on purchase of stock.
External Environment:
Apple makes a wide variety of products that penetrate many different markets. When it
comes to smartphones, perhaps Samsung is its biggest competitor. Apple may not have any close
competitors in the tablet market, but perhaps Amazon or Microsoft qualify as potential threats to
the iPads dominance. Google might be considered an Apple competitor on multiple fronts.
Google-owned subsidiary Motorola recently unveiled the Android-powered Moto X smartphone,

which could be a possible competitor to Apples iPhone. Google also offers the Google Drive
cloud service, which could be considered a competitor to Apples iCloud.
Apples abides by ten culture building principles. The ten culture building principles, are
1.) Communicate your dream and operationalize it. Mission statements tend to be narrow,
business oriented statements such as Be the leader in customer satisfaction. 2.) Be clear about
what you stand for, inside and outside your company. Your personal priorities, values, and
principles set the culture. 3.) Design your organization for what it needs to win. This includes the
specific work your startup must do, the capabilities you need to build for a competitive
advantage, and the career path for team members to bring this to life. 4.) Get your team right and
do it quickly. For startups, this means knowing where you need help and where you need helpers,
and hiring carefully. 5.) Champion innovation of all kinds. You must visibly champion a portfolio
approach to innovation, emanating from dreams, not desperation. 6.) Set your standards very
high. You tell people every day what meets your standards when you agree or disagree with
recommendations from your team. 7.) Train all the time. Every interaction every day is a training
event, and you can capitalize on it or not. 8.) Do a few symbolic things to create excitement
about what is important. 9.) Think like a winner, act like a winner. Customers can sense how
motivated a businesss people are just from seeing the product and how its presented to them.
10.) Live your desired legacy. If you dont know your ultimate goal, you will never get there. If
you team doesnt know the ultimate goal of your business, they cant get it there either. Be like
Steve Jobs, who lived a legacy and left a legacy at Apple, of radical or even magical products
and experiences.
Apple's high level of brand loyalty is considered unusual for any product. Apple Store
openings can draw crowds of thousands, with some waiting in line as much as a day before the
opening or flying in from other countries for the event. Fortune magazine named Apple the most
admired company in the United States in 2008, and in the world from 2008 to 2012. Research in
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2002 by NetRatings indicates that the average Apple consumer was usually more affluent and
better educated than other PC company consumers. The research indicated that this correlation
could stem from the fact that on average Apple Inc. products were more expensive than other PC
products.
The company's manufacturing, procurement and logistics enable it to execute massive
product launches without having to maintain large, profit-sapping inventories. In 2011, Apple's
profit margins were 40 percent, compared with between 10 and 20 percent for most other
hardware companies. During the Mac's early history Apple generally refused to adopt prevailing
industry standards for hardware, instead creating their own. This trend was largely reversed in
the late 1990s, beginning with Apple's adoption of the PCI bus in the 7500/8500/9500 Power
Macs. Apple has since adopted USB, AGP, HyperTransport, Wi-Fi, and other industry standards
in its computers.
Apple has a strong environmental responsibility. Posted the company website is their
environmental statement, which reads, We take our passion for innovation beyond our products
and into our practices. As part of our continuing mission to leave the world better than we found
it, were partnering with The Conservation Fund to protect and create the type of forests we use
in our packaging. Weve developed a renewable micro-hydro project to power our data center in
Prineville, Oregon. And were building a solar farm in China to offset energy used by our offices
and retail stores. Because its our responsibility to make sure that while creating beautiful
products, were also caring for our beautiful planet.
Structure & Design:
Apples organizational structure has changed. When Steve Jobs was in charge, everything
flowed through him. The company is encouraging Apple's software and hardware teams to
collaborate, something that never happened under Jobs. This new collaborative approach is
causing Apple to be more deliberate than in the past. In the long run it will be interesting to see

how this collaborative approach works. Apple was always a company with one guy making all
the calls. This made product decisions easier, but it also made them slower at times. In theory,
the new organizational structure should help certain divisions make decisions more quickly. But,
collaboration has its downside. If everyone is trying to reach consensus on a decision it could
lead to big delays. Apple went from a mechanistic model of organization to an organizational
model, which allows for more collaboration between all workers, and divisions of labor.
Apples divisions of employment are retail, corporate and student. Retail employment can
be in sales, customer support, or leadership. Apple seeks individuals that are unique, whose
varied talents and experiences bring value to the way they connect people with Apple. So
whether youre analytical or creative, tech savvy or a people person, the Apple Store provides an
ideal opportunity to challenge yourself. Corporate employees are responsible for dreaming up
whats next for Apple. Apple expects corporate employees to contribute to the company. Apple
needs the best of the best to create hardware and software, and we expect nothing less from the
people who market, support, and manage our products, our process, and our people. Apple also
opens opportunities for students as AppleCare advisors, interns, or through scholarship
opportunities. Apple is a place where students can thrive. Apple has the opportunities that can
help students take their ideas and their passion to the next level. Develop skills and get hands-on
experience working with some of the best minds in the business.
Evaluation:
Apple is well known American multinational technology company of whom has designed
and distributed possible the best phone, computers, and tablets of all time. Apples biggest
success yet has been the IPhone 5 and IPhone 5 Plus selling more than 10 million devices in the
first 3 days on sale. As apple continues to drastically advance they have also been very
successful because of the simplicity their products offer. An inner round button coupled with the
outer "click" wheel could in essence operate the whole device in most cases the simpler the
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better. The simplicity of their products has gained positive attention from buyers and continues to
be one of the key reasons as to why no matter how many new products are released loyal Apple
users never seem to have enough. On the other hand apple has come across a few bumps on the
road. Along with success sometimes comes failure. A big failure with in apples history in 19951996 Apple came about a project. A game console called Pip Pin a multimedia PC aimed at
gaming and CD playback -- like what a PlayStation or Xbox is today. Apple didn't make the
Pippin; it licensed the design to companies like Bandai and Katz Media, but the PlayStation,
Nintendo, and Sega consoles were already out and more popular, so game developers and users
ignored the Pippin . The game console died out just 3 years after released.
The Apple Newton Message Pad was also one of apples biggest disappointments. The Apple
Newton Message pad was around from approximately 1993-1998. This device was a tablet with
PDA hybrid and handwriting recognition. While the evolution of this tablet began most of its
features were not all that great. Most people complained about its ungainly size, woeful battery
life, and hard to read screen.
Apple later on perfected the concept with the release of the well-known iPad device of
which later evolved the pad era and perfected the flaws the Apple Newton Message pad once
had. Being such a popular manufacturer and multinational technology company, Apple has begun
to struggle balancing production of iPhone 6, and iPhone 6 plus. Some researchers are even
predicting that there will be shortages of the iPhone 6 next year as Apple shifts focus to the
iPhone 6 Plus. According to a report by The Wall Street Journal, Apple delayed plans to mass
produce the larger 12.9-inch iPad in order to shift its resources towards the iPhone 6 Plus as it
has remained unsatisfied with the production output from its suppliers for its larger iPhone.
Apple is also struggling with the I Pad Sales of which research shows sales have drastically
decreased. People are no longer that much interested in purchasing iPads because they are

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looking a lot similar to the old version. Although iPads may be a little bigger in size they offer
the same features as iPhones do. As Apples technology advancements have been obvious to
many people Apple may now be given the opportunity of partnering up with vehicle manufacture
in order to include functions found on smartphones and tablets in vehicles and this will only lead
to many more opportunities.
Recommendations/Conclusions:
Apples marketing techniques continues to stand out from all other technology
manufactures. Apples marketing and advertising capabilities are very well known and have
continued to influence people. Marketing benefits the manufacture because it increases brand
awareness and creates stronger demand for companys products. Apple does not follow its
competitions footsteps it leads them, by creating the most advance revolutionary alternatives.
Apple was the 2nd valuable brand in 2012 and its brand value was at $76.5 billion. Apple should
be coming up with different marketing techniques. As a growing company Apple needs to keep
customers in mind and provide marketing techniques that best suits their preferences. Apple
should try looking into the prices of the products being manufactured. High price is the major
weakness of Apple because there is a strong competition in the market now, and the consumers
of Apple products can easily obtain the similar function products by its competitors in a lower
price. The high price of Apples products plays a major role in its success. Although the price
may be high people tend to continue purchasing the most advanced version of Apples products.
My recommendation to Apple would be that they justify and ensure that their products
are surely worth the money. Research shows that although Apple provides the latest technology
advancements most may also be found in cheaper products of which maintain a better quality.
This would allow more people to purchase their products. Apple must ensure that their ideas and
innovations are truly legally protected to make sure their success is only theirs and that
competition does not begin benefiting from it. Apple should be careful in legal and political areas
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because as to reduce operating cost it has outsourced in different countries and it has to find
different alternates to reduce the risk.
Reference Page
Apple - Apple Info. (n.d.). Retrieved from http://www.apple.com/about/
Arnold, N. (2013, August 5). Who are Apple's 3 Biggest Competitors?. Retrieved from
http://www.cheatsheet.com/popular/3-of-apples-competitors.html/?a=viewall
Gruman, G. (2014, September 8). Rotten Apple: Apple's 11 biggest failures | InfoWorld.
Retrieved from http://www.infoworld.com/article/2606286/mac-os-x/163363-Rotten-AppleApples-11-biggest-failures.html#slide8
Hughes, N. (2014, December 2). As Apple still struggles to meet iPhone 6 demand, Canaccord
raises price target to $135. Retrieved from http://appleinsider.com/articles/14/12/02/as-applestill-struggles-to-meet-iphone-6-demand-canaccord-raises-price-target-to-135
MacWorld Staff. (n.d.). Apple's greatest hits: 30 significant products | Macworld. Retrieved from
http://www.macworld.com/article/1050178/30applelist.html
Padilla, R. (2014, October 20). Apple CEO Tim Cook: iPhone 6 and 6 Plus Demand 'Far
Outstripping' Supply - Mac Rumors. Retrieved from
http://www.macrumors.com/2014/10/20/tim-cook-iphone-6-demand-outstripping-supply/
Rivington, J., & Swider, M. (2014, December 23). Apple CarPlay: everything you need to know
about iOS in the car | TechRadar. Retrieved from http://www.techradar.com/us/news/cartech/apple-carplay-everything-you-need-to-know-about-ios-in-the-car-1230381
Yarow, J. (2013, May 1). Apple's New Organizational Structure Could Help It Move Faster Business Insider. Retrieved from http://www.businessinsider.com/apples-new-organizationalstructure-could-help-it-move-faster-2013-5
Zwilling, M. (2012, March 3). 10 Ways to Build a Business Culture Like Apple - Forbes.
Retrieved from http://www.forbes.com/sites/martinzwilling/2012/03/03/10-ways-to-build-abusiness-culture-like-apple/

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