STRATEGIC MANAGEMENT

Strategic Management

[Name of the Institute]

Executive Summary3

Strategic Management4

Introduction4

Discussion4

Corporate Governance of Apple4

Competitive Strategies of Apple6

Differentiation6

Cost & Differentiation Strategy7

External analysis8

Internal Analysis10

Value Chain10

Resources and competencies10

VRIO framework11

Strengths/weaknesses11

Comparison to competitors12

Samsung12

Dell13

Conclusion13

References15

Executive Summary

The mission and vision of Apple Inc is bringing to the best personal computing experience for its consumers all around the world by being highly innovative. Apple values the health, safety and improvement of employees, consumers and global communities. This paper aims the discussion on the strategic management of the Apple Inc. it discusses the corporate government of the Apple and its role in returning profit to shareholders. The competitive strategies of the Apple are incorporated with differentiation strategy on the basis of innovation and Just-in-Time & Build-to-Order methods. Competitive advantage will be further defines with external and internal analysis of Apple. Value chain and VIRO analysis will help to understand the competitive advantage of the Apple in industry with the comparison of competitors.

Strategic Management

Introduction

The Apple Inc. came into being in 1977, founded by Steven Wozniak and Steven Jobs. The key operations of Apple include designing, developing and marketing of PCs, cell phones, media tools, and digital music players which are portable. Apple sells a wide variety of software, peripherals, and solutions for networking, services and digital content applications for the other companies. Geographic markets of Apple include North and South America, Japan, Asia-Pacific, and Europe (Data monitor, 2011, pp.4-5). The most common products of Apple Inc include Mac computers, iPad, iPod, iPhone, television, and software. It comes under the industry of information technology. Apple is using the differentiation strategy as it is focusing on being more innovative rather than saving the costs.

Discussion

Corporate Governance of Apple

Board of Directors of Apple Inc watches over the CEO and senior management on daily basis that fulfils the duty in Apple's ethical operations and makes sure that shareholders' interests are protected. The designed governance structure is to encourage proper monitoring of performance and compliance, effective decision making, and principled actions.

Directors

Arthur D. Levinson

Chairman and former CEO Genentech

Audit Committee

Chairman of the Board

William V. Campbell

Chairman and former CEO Intuit Corp.

Nominating Committee Chair

Audit Committee

Tim Cook

CEO Apple

Millard S. Drexler

Chairman and CEO J. Crew

Compensation Committee

Nominating Committee

Albert A. Gore Jr.

Former Vice President of USA

Compensation Committee

Nominating Committee

Robert A. Iger

President and CEO The Walt Disney Company

Audit Committee

Andrea Jung

Senior Advisor to Board of Directors Avon Products

Compensation Committee chair

Ronald D. Sugar

Former Chairman and CEO Northrop Grumman Corp

Audit Committee chair

After the death of Steve Jobs and Apple dropped the action of iPhone 5 launch, it did not collapse but has been falling consistently. Therefore, the company decided to increase profits through dividends distributed as an attempt to increase the share price. Apple was such a successful company in cash generation in recent years it grew to around $ 300 billion in cash (Culpan, 2012). If we believe that the purpose of keeping a valued action is the potential for fundraising, this strategy does not make sense since Apple already has $ 300 billion in free resources. It is very likely that they do not have to fundraise in the next ...