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BUS 499 Business Administration Capstone
Ways, in which globalization and technology changes have affected Apple Inc.
Today, the world has become the universal village. Globalization has impacted all companies as a result of free and quick movement of people, services and goods. Apple Inc. has been one of the companies to be affected by the current globalization and technology. Apple Inc. is one of many multinational companies involved in the technology industry. The company is listed on the Securities and Exchange Commissions EDGAR database. Since the company has been started, it has specialized in the design, manufacturing and development of electronic equipment. Apple Inc. manufactures software, smart phones and computers. To remain profitable in the current competitive industry, globalization and technology has aided Apple Inc. to remain an esteemed company by customers all over the world. Globalization has enabled the establishment of both assembling and manufacturing plants and different retail outlets in different locations all over the world. Globalization is all about the improved transport, communication, movement of capital and people and diffusion of knowledge. Globalization has impacted positively on Apple Inc. The Companys products are designed and manufactured at Silicon Valleys in California and China by Foxcom. As a result of globalization, Apple Inc. has been able to make sales all over the world, mainly in the developed economies (Watkins, 2011).
For products of Apple Inc. to become accepted all over the world, technology has played a major role. Implied technology in designing, development and manufacturing of its products has been informed by modern technology. The company strives hard to provide excellent usage experience to its customers by offering innovative and quality products. It is in terms of software and hardware. The company has departments set aside for technology research only. With proper market research, will Apple Inc. have been able to deliver quality products that are advanced technologically? Today success of the company has been attributed to extensive market research of its products and services. The company has manufactured high-end computers, such as the MacBooks; smart phones, such as iPhone and the worlds most loved iPods. Information Technology has also revolutionized the manner in which the company conducts its business. With the use of video conferencing, management of the company from central location in America has ensured that the company continues to implement its business strategies (Scott, 2008).
How Apple Inc. can utilize industrial organization model and the resource-based model to earn the above-average returns
Apple Inc. can efficiently utilize the industrial organizational model to maintain large stake in the highly segmented technology market. The company can focus on the elements of industrial model so that it remains outstanding despite high competition in the technology industry. Apple Inc. can utilize the industrial organizational model and ensure that the limited customers continue being loyal to its products and services. In the industrial organizational model, Apple Inc. can focus on its market structure, market conduct and market performance so as to earn the above-average returns. In utilizing the market structure, which is a component of the industrial organizational model, Apple Inc. can increase the heterogeneity of its products. In this case, the company should continue being innovative and develop new products that are appealing to customers (Scott, 2008). Still on its market structure, the company should utilize the importance of economies of scale. Doing so will ensure that the company makes more sales than its competitors. The company can also utilize the industrial organizational model by studying barriers to entry in new markets. Political, economic and technological barriers can keep new companies or competitors out of the highly segmented market. To enter new markets and increase returns, Apple Inc. will need more than the capacity to establish the product to enter new markets. The company will need other favoring conditions, such as political ties and huge amounts of capital for direct investments. Finally on its market structure, to earn the above-average returns, the company should increase the number and size of distribution of buyers and sellers (Douglas, 2003).
In utilizing the industrial organization model, Apple should also concentrate on the market conduct. The company should come up with very competitive pricing strategies, increase its product development strategies and increase its promotional and advertisement strategies. Currently, the majority of the companys products are expensive, and the company can earn the above-average returns if it can standardize its prices. Apple Inc. can also utilize the industrial organization model under market conduct if it adopts effective means of coordination and cross adaptation of prices and products among competing sellers. In the market performance, another element of industrial organization model, the company should study the relationship between the marginal cost and price. It should also put more focus on its technical and dynamic efficiency. Effective utilization of the industrial organization model will help Apple Inc. keep the pool of competitors small in the technology industry. It will also create barriers to new entrants, and in the process help the company assess the next step and earn the above-average returns (Watkins, 2011).
To utilize the resource-based model, so as to earn the above-average returns, the company should identify and classify the firms resources. In so doing, the company should appraise its weaknesses and strengths relative to competitors. The company should also identify opportunities to utilize its resources. Secondly, under the resource-based model, Apple Inc. should identify its capabilities. In this identification, Apple Inc. should identify areas or things that it can do more efficiently than its rivals. The company should identify the resource inputs to each capability and the complex of each capability. Thirdly, Apple Inc. can appraise the rent generating potential of its resources and capabilities. It should be in terms their potential for sustainable competitive advantage and the applicability of their returns. Fourth, Apple Inc. can earn the above-average returns by utilizing the resource-based model, if it selects a strategy that best exploits the firms resources and capabilities, relative to external opportunities. Finally, under the resource-based model, Apple Inc. needs to identify resource gaps that need to be filled. It should invest in replenishing, augmenting and upgrading the companys resource base (Douglas, 2003).
Apples vision and mission statements have contributed to the companys success
Although the mission and vision statements are poorly stated, it has not hindered performance of the company. The mission statement fails to integrate the elements of teamwork, philosophy or even integrity. Although Apples vision and mission statements lack a direction or purpose, it has not been reflected on the performance of the company (Scott, 2008). The corporation has been continuous profitable and has turned substantial profits for the past five years. The company has been listed on the Fortune 500 as one of the best performing firms in America.
How different categories of stakeholder at Apple have contributed to the Companys Success
At Apple Inc., three stakeholders have contributed to the success of the company. The software developers have been behind the innovation, design and development of products at the company. Employees also form an essential part of the companys stakeholders. With over 75,000 employees worldwide, the company has been able to serve its customers to satisfaction. Another group of stakeholders behind success of Apple Inc. is the lenders. This group of stakeholders makes it possible for Apples customers to acquire the product of their choice. It is irrespective of whether a customer has money or not. Lenders will ensure the customer gets the products on credit and pays later with an interest, which makes the company successful.