Coursework Header sheet 1. Introduction
2. Financial Analysis 3. Marketing Analysis 4. Human Resource Management Analysis 5. Operations Analysis 6. Prioritised Strengths 7. Prioritised Weaknesses
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8. P.E.S.T.E.L Analysis 9. Porter‟s Five Forces Analysis 10. Critical Success Factors 11. Prioritised Opportunities 12. Prioritised Threats
13. Strategic Position
14. Proposed Strategic Options 15. Selection of the Winning Strategy 16. Description and Risk Assessment
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List of References
1. Introduction and Report Objectives
The objective of the report is to evaluate Apple Inc.‟s business model through internal and external analysis and then recommend future strategic business unit (SBU) and corporate strategy which are based on the previous suggestions and analysis. Apple‟s annual report 2011, Apple case study and Applestore.com will contribute to the analyses of internal and external which are performed to work out strategies. The reporting currency is USD.
The Apple Inc. Company was founded in 1976 by Steve Wozniak and Steve Jobs and after that was incorporated in 1977 in California. Apple‟s core profit generating from design, manufacture, distribution and retailing. Apple‟s global reach enables it to distribute and sell its products worldwide through Wholesalers, retail stores, online stores, as well as through mobile telecom operators in different countries. Apple also profits from the sells of different kinds of third-party products. Moreover, Apple sells to consumers, like small and mid-sized businesses, education, enterprise and government customers. Apple also profits from exchange rate hedging.
Apple has 9 SBUs operating in 5 key geographical market segments as following:
INTERNAL ANALYSIS 2. Financial Analysis
The key profit driver is iPhone and related products and services, accounting for 43.47% of net sales $108,249 in 2011.While Total Mac including Desktops and portables ranks 2nd with 20.12%.However, the change rate of iPad and related products and services soared to 311% In terms of geographical regions, America takes the lead with 35.4%, it is followed by Europe, accounting to 25.7% and Asia-pacific (20.9%). The Retail (13.05%) and Japan (5%) represent a significantly smaller percentage The Asia-Pacific market significant increases in net sales (173.64%) (63.46%) and operating profit (162.87%)) (61.96%) compared to 2010.
Performance and efficiency • Net sales increased by 77.29% from 2007-2011 at $108,249M, and its net profit peaked at $ 25,922M soared by 86.52% • The trend of ROCE is fluctuate from 2007 to 2011 around and above 30% 1 which is relatively high comparing with other competitors, 2 and it attributes to the significant increased operating income which is much larger then operating expense • The upwards gross profit margin increased from 33.17% in 2007 to 40.48% (2011) which suggests Apple has been generating higher revenues over the years and the relatively slower increase in cost of sales , 3 and it can partly due to the outsourcing manufacturing tool
which vary from 31.16%,36.06%,33.52%,34.04% to 31.81% ROCE: Toshiba at 6.79%, Dell at 20.22%. 3 Dell and Toshiba, gross profit margin are 23.7% and 26.55% respectively
The current and quick ratio went downward trend from 2.73(2007) to 1.61 (2011) and 2.6(2008) to1.58 (2011), respectively. This may be due to the increase of the trade payables and the increased current liabilities which is higher comparing with most liquid current assets. 4 It suggests that Apple may be over-leveraged, struggling to maintain or grow sales, paying bills too quickly, or collecting receivables too slowly. 5
Various acquisitions and investments made between...
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