apple company decision making

Apple’s secret of success traditional marketing vs. cult marketing. 1 July. Apple also has the capacity to meet the ever-changing demands in the market. Copyright © 2021 - IvyPanda is a trading name of Edustream Let's see if we can help you! Apple’s compliance with the government regulations is reflected on its ethical values and corporate culture. Price elasticity is significant in the pricing decisions especially in an industry that is highly competitive. The company is always involved in active research and implementation of new developments. Apple Inc. and its wholly owned subsidiaries manufacture and market personal computers, portable digital music players, mobile communication devices and a wide range of software (Apple, 2011). Apple brands are known and easily recognized across the world (Lashinsky, 2012). Mobile and PC industry is growing fast because there is an ever-rising demand for its products. From 2001, the firm’s revenues have increased from a bout $5 billion to over $108 billion in 2011. (See the appendices for more details on the firm’s financial performance). December 29, 2019. https://ivypanda.com/essays/apple-inc-6/. Consequently, Apple stores across the world are aesthetically designed to appeal to the customers. The company is organized around functions, and expertise aligns with decision rights. IvyPanda. The focus is on how the firm has used the managerial decisions to respond to the changes in the market structure and competitive environment. "Apple Inc Decision Making Process." You are free to use it for research and reference purposes in order to write your own paper; however, you must. However, the concept of price elasticity is only applicable when other factors are kept constant. It faces a lot of competitive pressure concerning its differentiated products. Managerial Decision-Making." Essentially, economic decline have a triple effect on the firms sales. Managerial Decision-Making was written and submitted by your fellow student. This helps the organization to identify the strengths and weakness of the company and formulate appropriate improvement plans. Need a custom Report sample written from scratch by The strategic and managerial decisions have a direct influence on the firm’s improved competitive advantage. When Steve Jobs returned to Apple in 1996, Jonathan Ive was already head of the company’s design team. Apple unique products still place it at exceptional competitive position over the rivals. Increased costs of production and cumulative reduction in the prices squeeze the firm’s profits. Apple Inc. is one of the few largest companies that is producing the information technologies in distinctive manner that are satisfying the needs and requirements of the people. We use cookies to give you the best experience possible. Apple Inc. was known because of its lenient business thinking. In other words, the unit prices are considered where the marginal revenues equal the marginal costs. This is IvyPanda's free database of academic paper samples. Executive Summary on the Wounded Warriors Project, Decision-Making with Managerial Accounting, Substance Abuse, Addiction and Dependency among Adolescents, Gate Gourmet International Business and Management. One way through which the firm can sustain its competitiveness is through continuous offering of unique and quality products. The case of Apple’s iPod. Apple’s organizational structure supports a centralized decision making framework whereby managers are able to include the employees in the decision making process. Apple’s Mac, iPhone, iPad and iPod are produced with a lot of high technology innovation. At Apple’s company, one is a magic number. For instance, the firm recorded low profit margins during the 2001 economic decline and the 2007-2008 economic recessions. Further, the Firm is boasting of market Capitalization of a bout $592 billion and an enterprise value of about $550 billion. Ethical decision-making at the Apple Corporation is based on the necessity of the company helping improve the lives of individuals. In other words, the product prices are normally high during and immediately after the launch. In this project I am going to describe the Strategic and Marketing Plan of Apple Inc, Which is the biggest consumer electronics provider in the world. Operational plan is the key to run the entire business of company. How did Bill Gates and Steve Jobs Differ in their Leadership Style? Most importantly, the economic decline greatly affects the firm’s sales margin. Cookies Policy, This research paper on Apple Inc. On 1 April 1976 Apple was founded, making the company 41 years old as of the 1 April 2017 - here's a historical breakdown of the company. Apple has a wide target market. Despite Apples positive representation, the company has been faced with many ethical issues. Most customers need the experience provided by Apple stores. Giant players like Nokia, Dell, Samsung, HP, Toshiba and Lenovo offer stiff competition in the industry. The company has good relationship with most players. Risks associated with such uncertainties include timely delivery of the firm’s products and services, product development and adaptability to meet the changing consumer demand. Besides risks associated with operations, economic and political uncertainties are also reflected in the firm’s financial results. Who captures value in a global innovation network? Apple Inc. has managed to create a demand for its products through innovative approach, which has provided the firm with increased power over pricing. July 1, 2019. https://ivypanda.com/essays/apple-inc-managerial-decision-making/. As indicated, the firm is operating in a highly competitive environment. By 2010, it became a competitive mobile and PC devices vender. Due to the strong brand image, ‘Apple culture’ has been created and promoted among loyal customers. Apple has failed in production of affordable products. In operations management, the 10 decisions relate to such aspects as product design, quality management, process and capacity design, and location strategy, as well as inventory management, among other operational areas. Consequently, Apple has failed in expansion to attract new customers and enter the markets across the world. IvyPanda. The company, known for its design, takes that ethos to its communications, and communicating who is visible and thus who is “an Actor” is a design decision. Whether Apple… IT World. (2019, December 29). Lashinsky, A. As a result, the firm invested into these newly emerging opportunities and established itself to be the market leader in these product segments. Its researches are carried out by highly skilled workforce. As a result, they produce cheap, efficient and competing products that in many ways drive down the prices of the original products. The paper also investigates how the company has responded to changes in competitive markets. The industry structure and dynamics has enabled the firm to come up with strategies that has effectively improved its competitive advantage. IvyPanda. Managerial Decision-Making'. In order to succeed in this endeavor, the firm has to secure input components from the supplier firms, which are located within the country or abroad. Inside Apple: the secrets behind the past and future success of Steve Jobs’s iconic brand. The appropriate strategic and managerial decisions have enabled the firm to survive the industry dynamics, technological transformations and financial difficulties. When making a decision on whether to purchase something or not, the consumer will follow the "consumer decesion-making process" and … The launch of Ipod caused an increased in the gross margins by over 40%. However, the company has not successfully met its customers’ need. The strategic and managerial decisions influence the firms operations, which in turn enables it to survive in a highly competitive environment. Apple has many stakeholders. The company also suffers from high pricing against its competitors. Besides, the inputs used in the production of the major firm’s products are manufactured by the third-party suppliers that are mainly located internationally. Similarly, the launch of iPad caused a leap in the operating profit to 32% in 2011. Lastly, Steve Jobs was a genius, which made the company rise to such a height (Lashinsky, 2012). Managerial Decision-Making." The development and introduction of new products is the main driver and the cause of increased demand. Leadership in organizations (7th ed.). This allows joint ventures and sharing some ideas. Besides, the labor issues with some of the firm’s suppliers have a direct effect on the operations of the firm. Constant changes in the consumer demand as well as the purchasing decisions in relation to the firm’s products, the competitive pressures and transformations in the technological innovations are some of the uncertainties the firm is facing (Ashcroft, 2012). Need a custom Research Paper sample written from scratch by Such alliances enabled the firm to mitigate the competitive risks. A pple is a confusing company. The paper discusses the managerial decisions made by Apple Inc. that has led to its growth over the years. The launch of such products has caused a tremendous increase in the firm’s sales and profit margins (Kim & Mauborgne, 2005). The company’s wide researches in technological field make it stand out from the other companies in the market as the pioneer in the industry. This exclusivity strategy results in a limited market reach. Even though the revenues have been fluctuating previously, the constant increases in the firm’s profits since 2001 are evident (Apple, 2011). We utilize security vendors that protect and Apple shops also provide their customers with opportunity to choose between different products and services (Janko, 2012). Apple has over time relied upon the development and the introduction of new and innovative products to the market. We utilize security vendors that protect and For instance, the introduction of the new products into the market has caused the firm’s revenues to increase from $5 billion to over $108 billion within ten years. Most of the Apple’s product components are manufactured in international firms operating in countries with low labor costs and poor or exploitative labor laws. Apple Inc. has a very limited distribution network due to the company’s strategy of exclusivity. Ashcroft, J. The intense competition has a profound effect on the operations, marketing and pricing strategies. For instance, most of the components that were used in the production of iPad were mainly manufactured in China. Technologies LLC, a company registered in Wyoming, USA. In 2009, its PC market share was 8% in the United States. The dependence on the third-party suppliers has many challenges. The firm believes in premium prices and mainly targets the high-end markets. Apple conducts thorough promotions under its slogans, such as “think different” and “the greenest lincups of notebooks”. The main sources of risks and uncertainties include competition and economic factors. Apple Inc. has the design, marketing and manufacturing services. The consumer behavior towards the firm’s products reflects the purchasing decisions of the majority within the industry. Consequently, the company plays in gradually growing industry. In 2010, Apple’s market share was $220 billion. Besides, changes in the product pricing and marketing mix as well as increases in the component costs are some of the uncertainties that have greater effect on the firm’s gross and net margins. The products sent a bad picture of Apple that is why the company lost many customers. Apple Inc. net revenues have been increasing since the revamp of the firm in 2001. If you continue, If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. professional specifically for you? It provides wide range of consumer electronics in the market like MAC computers, IPOD, I Phone, LAPTOP, IPAD. This essay explores Apple Company’s managerial decisions that have been made over time. So we are led to believe that decisions are made by the Actors and who the Actors are is determined by the very entity we are trying to analyze. Apple Inc Decision Making Process. Linden, G., Kraemer, K., & Dedrick, J. Economic depression reduces the consumption rate and consumer spending on non-basic items. Apple has had difficulty passing on their ethical values on suppliers providing components to the company. Most of the competing firms are likely to produce similar and low-cost products. Generally, the firms pricing and production decisions, take into consideration the micro-economic theories of production and consumption. (2008). Managerial economics. To satisfy the Board's duties, directors are expected to take a proactive, focused approach to their positions, and set standards to ensure that Apple is committed to business success through the maintenance of high standards of responsibility and ethics. professional specifically for you? Apple TV and Mac Mini seriously suffered a blow in the market. Each product within Apple portfolio such as iPad, iPhone, iPad, Apple TV and iWatch is a result of collaboration of product-based groups. Like any other company, Apple has its own strengths and weaknesses. Ethical decision-making at the Apple Corporation is based on the necessity of the company assisting better the lives of persons. The financial results indicate all the risks and uncertainties the firm has gone through during the financial year. The strategic and operational decisions are significant success factors of the firm and determine its growth direction. Managerial Decision-Making specifically for you for only $16.05 $11/page. "Apple Inc. The majority of the clients would not make purchases when the prices are changed. Apple enjoys good relationship with its stakeholders due to its well-structured operating system (Robbins & Judge, 2011). As a result, Apple incurs extra cost of ensuring that all its product components are manufactured under internationally accepted labor standards and conducts. Some of the stakeholders, such as shareholders and employees, operate directly within organization. It has the music industry, which enables it to develop music products. Apple Inc. attracts customers from all over the world. Its products were highly sophisticated non-PC electronics. Your privacy is extremely important to us. History of the Apple Company. The marketing of Apple Inc.: a success story analyzed in a traditional marketing model. Apple has had trouble go throughing on their ethical values on providers supplying constituents to the company. Apple’s high innovativeness has made the company stand a stiff competition in the industry. Let's see if we can help you! Unfortunately, your browser is too old to work on this site. Under this, it assumes that various market segment needed several marketing events such as offers, promotions, prices etc. Such effects are indicated in the financial results as declining sales, gross, operating and net margins (Linden et al., 2008). December 29, 2019. https://ivypanda.com/essays/apple-inc-6/. The decision making process depends on an exclusive group of people in gathering information and ideas, but the final critical decision decided by its C.E.O. December 29, 2019. https://ivypanda.com/essays/apple-inc-6/. IvyPanda. However, most of the product inputs are not manufactured within the firm’s premises. (2019) 'Apple Inc Decision Making Process'. The company that is selected for the analysis of information management is the famous digital products manufacturing company “Apple Inc.”. Apple Inc.’s operations management (OM) involves the application of the 10 decisions of OM to ensure that all aspects of the business are running smoothly. Creating and then dominating entire categories of products and making more money than any other business in … IvyPanda, 1 July 2019, ivypanda.com/essays/apple-inc-managerial-decision-making/. Communications of the ACM, 52(3), 140–144. Saarbrücken: VDM, Verlag Dr. Müller. We will write a custom Research Paper on Apple Inc. Robbins, S., & Judge, T. (2011). Operational business plan covers the all areas of company including the finance, manufacturing, internet, operations, R&D, human resources and marketing. "Tim Cook has had a stellar run at Apple—even without another mega-smash like the iPhone." As a result, some customers prefer companies like Nokia and Samsung that provide compatible with Windows platform products. Consequently, Mobile and PC industry is very dynamic that calls for constant innovation. 1. One of the most important aspects is the company’s ethical decision making. The strategic and operational choices are some of the managerial decisions that can lead to the growth and development of the firm. To counter its challenges, Apple is fighting to meet the customers’ demand for compatible with Windows products though it has failed in lowering product prices. Apple Inc. still enjoys a lot of opportunities in the field. Areas where the government regulations affect the firm’s operations are in the patents and copyrights laws as well as labor regulations. This weakness exists even with the advantages that come with exclusivity like strong control of the distribution of products. The most likely decision- making process Apple Inc. would go through based on its values when hiring a team to work in a retail store would come from an orientation to the Results profile. The evolution of the firm into a multinational corporation involved in a wide variety of business ventures has been driven mainly by the technological innovations (Apple, 2011). If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Apple Inc. Generally, the increased competition and the industry dynamics have a direct effect on the costs, operations and profitability of the firm. Some of the major competitors are shown in the table below. On contrary, Apple has some weakness in its production. Despite the challenges, Apple strengths and opportunities still overweigh its weakness and threats making it still a lucrative investment company. Over the last decade the firm has introduced variety of the products including the iPod, iPhone and iPad. Apple carefully selects the authorized sellers of its products. (2019) 'Apple Inc. 29 December. Copyright © 2021 - IvyPanda is a trading name of Edustream In fact, most of the Apple products have close price elasticity considering marginal revenues and costs (Douglas, 2012). This paper analyses each and every capacity of the company to invest in decision making process. The violation of labor regulations has resulted in some firms closing their operations or increased financial compensations for the workers. Apple Inc. has followed a flat structure of organization. You are free to use it for research and reference purposes in order to write your own paper; however, you must. (2012). July 1, 2019. https://ivypanda.com/essays/apple-inc-managerial-decision-making/. In fact, the firm’s dependency on the performance of distributors, carriers and other resellers has the effect on the products quality and cost, which in turn affects the firm’s operating profits (Linden, Kraemer & Dedrick, 2008). ensure the integrity of our platform while keeping your private information safe. Over the last decade, the significance of digital devices particularly, the mobile communications and media devices merged.