Analyzing Business Strategy Assignment Sample

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Introduction

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Business strategy is defined as the actions which the company undertakes in order to attain the organization objectives. Analysis of Business strategy determines whether the plan will be effective for the company or not. Moreover, for the assessment Apple has been given the company is a global brand established in 1976. Apple is an American-based multinational technological company that is also the world's biggest organization in terms of market capitalization. Now with the help of pestle analysis its effects on the company will be identified. Moreover by using an appropriate framework an internal environment and capabilities assessment will be conducted. Nevertheless to analysis market sector for the organization will be conducted with some management tools. Along with this, the strategic objectives will be identified on the basis of the analysis. Further by the application of the different models will be made in order to devise the strategic plan for the company.

Main Body

Analyzing impact of macro environment 

Political factor: The companies are influenced and impacted by various political factors that can change with a period. The ongoing war between Russia and Ukraine has impacted many businesses as well. For example, it has stopped the company from exporting and importing from those countries that are directly influencing the revenue of the company (Apple Inc. PESTLE Analysis, 2015). Moreover, some other political factors are like if the government increases Tax then the cost of the company will also increase. Nevertheless, all those things impact the organization's operation as well. 

Economical factor: As Apple is a global company the economic factors of all around the world affect the company as well. Moreover, Apple also manufactures its products in China and the labor cost in this country has been increased which will impact the cost of the company. Nevertheless, the value of the US dollar also increased so while exchanging goods and resources the exchange cost will get high as well. 

Social factor: When it comes to the social factor the mobile industry is growing rapidly because of generations Y and Z. At the same time even though the price of Apple products is dramatically high the demand never goes down. People prefer Apple products because of the brand value in the market as well as the quality and features of the products. Moreover, the company's recent association with China has offended some potential customers as well. 

Technological factor: As the use of mobile and other digital tools is increasing the demands of the consumer in the feature are also increasing. Moreover, the companies are focusing on the innovation in the products a lot. Apple is known for its IOS security and other innovative feature that the company launches every year. Nevertheless, the IOS system also restricts the user from using many other websites or applications which is one of the Disadvantages the Company has to face. 

Legal factor: As a global company Apple has to comply with various national and international laws. Moreover complying with laws and regulations will help the company to make good relations with the government as well as to create a reputation in the market. For example, the company is entering into the financial industry by launching Apple Pay. Now the company has to also follow regulations set by the World Bank and particular country national banks as well. Nevertheless, the company has a high reputation in the market and Apple cannot compromise. 

Environmental factor: People nowadays are aware and concerned about the environmental crisis in the world. The concern and awareness of the people have impacted the companies in many ways. Moreover, industries are looking forward to adopting the change like making sustainable goals. Apple also has to go through the process of change and use environment-friendly products.

Analysis of Internal environment and capabilities assessment 

Strength: As a global brand Apple has many advantages or strengths in the market some they are like the brand image. The company has a high reputation as well as a strong brand image in the market (Li, 2021). Moreover Apple main focus always remains on the innovation and quality provide to the consumers. At the same time company is proficient in research and development and through Liam a recycling robot Apple has start taking initiative toward sustainability.

Weaknesses: One the main weakness will be the high price product because of which many people have to choose alternate option. Moreover the company does a limited promotion and advertising of the brand that can result in the lack of information about the new innovation to the people. 

Opportunity: As the company mainly focus on the innovation that now results in the growth in the costumer as well. Moreover to work for sustainability the company can launch products through green technology (Singh, 2022). At the same time Apple can utilize the artificial intelligence to improve the features of the products as well. 

Threat: Just like many other companies Apple also gets affected by the pandemic because the lockdown has disrupted the whole supply chain management. Moreover the company is already facing the problem of counter feting that can impact the brand image of the company.

 From the VRIO framework the capabilities of Apple have been highlighted like the brand image of the company is most important for the present as well as the future scenarios. Moreover, the brand image is valuable for the company also it is rare and costly to inimitable for the competitor as well (Barley, et. al, 2020). Lastly, the organization can also use the brand image and make changes or experiment by entering into a new market. As Apple is a global as well as publicly listed company it has good financial stability which is valuable and rare. At the same time, the Inimitable organizations can use the financial resources for making changes or any plan. At the same time even if there is much competition in the mobile sector company has made its market position very strong. That again results in high revenue and profits for the company as well as having the market position of the company attract shareholders and investors as well (Widayanto, 2022). Nevertheless, Apple is known for bringing innovative products to the market like IOS, Siri smart watches etc. That is valuable, rare and inimitable will also help the organization in the future as well.

Management tool to analyze the market

Before developing an organizational strategy, several factors, such as the market sector, need to be analyzed and determined. To evaluate the market sector effectively, certain management tools are essential. Management Assignment Help One such tool is the Ansoff Matrix (Zugay and Zakaria, 2023), which is often used by management teams to create strategies for expanding product or market ranges. This tool helps stakeholders minimize risks through various growth strategies (Vorobyov et al., 2019). The Ansoff Matrix includes four types of growth strategies: 

Market penetration: From all four strategies this is the safest for the company to consider to expanding the product or market. In this, the companies try to increase the sales rate of existing products in the existing market. Moreover, this method is beneficial for the company because the market and product are known to the organization and management. 

Market development: In this method company tries to enter a completely new market with existing products. The company has to include a new feature for new use of the existing product to enter a new market. This method can be a little risky for the company because it has a chance to fail if it does not attract consumers. Moreover, the company does not have proficiency or experience in the new market as well. 

Diversification: This method provides an opportunity for the company to enter into the new market with a company's new kind of product or service (Le, 2019). Moreover, it can be a little risky for the company as they do not have proficiency in the products/services and the market as well. Nevertheless, the company will also have an opportunity to explore and learn about new markets and products. 

Product development: This strategy is different from the other methods. In product development, the company introduces different kind of products into the existing market. This strategy helps the company to explore new products or services that they can introduce in the market. Moreover, this method can be considered risky as well because the consumer of the market can either get disappointed or not be satisfied with the product. From the explanation of all the four methods of the Ansoff matrix the one which will suit the company the most will be Diversification. Moreover, Apple has already many diverse products and services in different markets (Clarissia, 2020). Some of them are Apple Pay, Apple Music, smart watches, digital wallets Apple cards etc. Every product or service is from a different market in which the company makes a good amount of revenue and profits. Nevertheless, there are many other markets as well that are yet to be explored and Apple can enter a new market with new products or services.

Developing strategic objectives

From the outcome of the analysis done with the help of the Ansoff matrix highlighted the one which is selected is Diversification. Moreover, there are various strategic objectives of this method Apple some of them are like Growth in revenue: The Company will invest in various new products and explore new markets. Moreover according to that the company will have an opportunity to increase the revenue as well. Some new markets for Apple can enter the healthcare industry. The healthcare industry needs innovation with time. Moreover, Apple can increase its revenue by 10-15% by 2024-25 approximately. 

Market expansion: Healthcare is a very promising industry in the case of IT and innovation. Apple can expand its market by entering this market because the company can use its finance and innovation to launch more digital equipment related to medicine which can be easy to use as well. By entering into the healthcare market the company will have an opportunity to explore new markets and learn about many other things about the market. • Talent development: Retaining and attracting new talent in the company is very important for the company. By entering into the new market of healthcare Apple will need many new talents who are proficient in this industry. This will not only help the company to have new talent but by training sessions, the existing worker will also have a growth opportunity in their career as well. Moreover, the employee will be motivated to work in the company. At the same time, the retention rate of talent will also increase so the company can maintain the workforce. Nevertheless, the company's productivity will also increase as well as the revenue of the organization. 

Customer satisfaction: One of the main focuses of the Apple always remains on consumer demand and satisfaction. So by entering the market the health care, the company can use its innovation to make the instrument advanced and easy to use. Moreover, apple is known to provide good quality products so customers will be satisfied with the instrument even if the market is new for the company. Nevertheless the customer satisfaction eventually turns into the revenue and profit. 

Innovation: If Apple wants to enter the new market of health care it needs to launch an instrument with innovative features and designs. Apple's main strategy to make a market position is always to remain on the innovative features or products. Moreover, the healthcare industry will provide an opportunity for the company to explore new types of products and make innovations. Nevertheless innovation in health care not only diversifies the company but at the same time increases the organization's reputation.

Devising strategic planning

Porter's Generic Strategies model: This model focuses on the four approaches to achieve the objectives of the strategy. One of them is cost leadership means reducing the cost to minimize the price to increase the profit (Islami, Mustafa and Topuzovska Latkovikj, 2020). With this strategy, the company can target conscious customers. Moreover, the differentiation approach focuses on making the product different and unique from the competitors. To attract the consumers and make a strong position in the market. Nevertheless before entering a new market understating the dynamics is very important.

So needs the company to focus on the market to make the product different than the competitors. Moreover, the different products or features will help the company to attract the consumers of the market which will eventually impact the revenue of the organization. Lastly, the cost-focus strategy helps the company to lower the price of the product to the competitors. Nevertheless, it will help the company to grab the attention of the consumer and beat the competition. From all these strategies of Porter’s generic model Cost leadership will be effective for Apple. Moreover, the company can enter the market and make a position with the help of the lower price.

Bowman's Strategy Clock: This strategy is based on the competitive position in terms of price and preserved value in the market. The model has a range of strategies to determine the price and value for the company to enter the new market. Some of them are like selling the product at a low price to target the cost-conscious customer while maintaining quality (Villagrasa, Sánchez and Donaldson, 2023). Nevertheless, the company can also use a hybrid strategy to maintain the balance between profit and quality. Another strategy is lower price and lower quality of the product it will help the company to maintain the company cost and profit at the same time.

Further, there is a high price but lower Quality this strategy only works when the company does not have many competitors in the market. Another strategy is a higher price but providing a stander quality of the product. This strategy is better than the higher price but lower quality. Moreover, this strategy will help the company to enter the market with a standard budget. So the other product line does not get affected by the low or almost no profit. Lastly, the differentiation strategy method determines that the company has some unique features in the product that can give an advantage to the organization. Moreover, in the case of Apple, the hybrid strategy will work for them to balance the cost and revenue as well.

Strategic management plan

Improving the competitive edge and market position is the ultimate plan of the organization and for that, the company has to make a strategic management plan. Moreover to apply the strategic management plan need to appropriate strategies (SOSTAC ® Marketing Model – Top Ranked Planning System, 2023). Moreover, SOSTAC is a model most companies use for market and business planning. 

Situation: The SOSTAC model's first approach is to identify the current situation of the company in the market. Moreover from the above analysis, it is highlighted that the company needs to diversify and enter the healthcare industry. Nevertheless from Bowman's method and Porter's Generic method two strategies are recommended. Cost leadership and Hybrid strategy were selected from those models which suitable for the company. 

Objectives: The objectives of Apple are to enter into a new market, increase revenue, attract and retain talent and continue innovation for society by entering into the healthcare industry. Moreover, the overall goal of the company is diversification in the market and the products. With entering into the market the company has a target to achieve 10-15% revenue growth by end of 2023. 

Strategy: One of the strategies is more innovative product introduced in the new market to attract most consumers by focusing on the needs of people (10 business strategy examples (And why it is helps to have one), 2023). Moreover, Apple can launch products more technologically advanced to solve the issues faced by people related to health and medicine. Nevertheless, the company can use the current trend of sustainability and take initiative towards it. 

Tactics: Some tactics that can help the company to achieve the objective and some of them are advertising and promotion. Moreover, Apple does not focus on advertising and promotion but entering a new market will help them to attract customers. As well the company can make a budget for the specific industry to manage the cost and profit.

Action: As Apple has finance and reputation as one of its capabilities it can merge or acquire a company from the healthcare industry. It will the company understand the market dynamic that they use while producing and launching the product. Moreover, the company can also hire professionals and encourage the employee to work with them. By this action, Apple will have skilled professionals to enter and make good positions in the industry. •

Control: At the last the company needs to control every action taken by the management to achieve the goals or the objective. There are some ways to control some of them are like behavioral control. Moreover, in this, the company directly controls the management to avoid any error. Then the predictive control by the company can detect any issue that can occur later.

CONCLUSION

At last, the study has analyzed the impact and influence of the macro environment on Apple with the help of PESTLE. At the same time SWOT has been conducted to analyze the internal environment and with the help of VRIO matrix capabilities of Apple have been identified. Moreover to analyze the market sector for Apple and a suitable strategy Ansoff’s tool of management has been used. Results in selecting the healthcare sector and diversification strategy to enter the new market. Nevertheless from the outcome of the analysis, some appropriate objectives have been devised for Apple to inform strategy. Further models like Bowmen’s and Porter's generic model were applied to interpret and devise strategic planning for Apple. At last SOSTAC model strategies have been highlighted to improve competitive edge and market position based on the methods that have been selected.

References

Books and Journals

• Barley, B., Kitamura, A., Loar, T., Ramon-Samayoa, E., Yuzon, J. and Daim, T.U., 2020. An Investigation of the Motivations and Strategies Behind Apple’s Product Design. Innovation Management in the Intelligent World: Cases and Tools, pp.3-27. Clarissia, S.M.S., 2020. A study on Ansoff Matrix Technique: As a growth strategy and an adaptive learning technique adopted in the leading brand of products. BIMS Journal of Management, 18. Islami, X., Mustafa, N. and Topuzovska Latkovikj, M., 2020. Linking Porter’s generic strategies to firm performance. Future Business Journal, 6, pp.1-15 Le, H., 2019. Literature review on diversification strategy, enterprise core competence and enterprise performance. American Journal of Industrial and Business Management, 9(1), pp.91-108. Li, Y., 2021. Apple Inc. Analysis and Forecast Evaluation. Proceedings of Business and Economic Studies, 4(4), pp.71-78 Singh, P., 2022. COMPANY ANALYSIS OF APPLE (Doctoral dissertation). Villagrasa, J., Sánchez, F. and Donaldson, C., 2023. HOW TO WIND THE STRATEGIC CLOCK: A BEST PRACTICE EXAMPLE SHOWING THE DYNAMIC PROCESS THAT UNDERLIES. In INTED2023 Proceedings (pp. 943-955). IATED. Vorobyov, A.D., Pozdeev, P.V., Kruglova, N.V., Nogovitsyna, O.S. and Tokareva, P.V., 2019. A Unified Methodology of Strategic Management and a Knowledge Management Model. TEM Journal, 8(2), p.554. Widayanto, M.T., 2022. Review of Aliekperov, Adyl (2021): creating business and corporate strategy: an integrated strategic system, Routledge. Competitiveness Review: An International Business Journal, 32(6), pp.861-864 Zugay, B. and Zakaria, R., 2023. Ansoff Matrix. Online 10 business strategy examples (And why it is helps to have one), 2023. Online Available through: https://www.indeed.com/career-advice/career-development/business-strategy-examples Apple Inc. PESTLE Analysis, 2015. Online. Available through: https://pestleanalysis.com/apple-pestle-analysis/ SOSTAC ® Marketing Model – Top Ranked Planning System, 2023. Online. Available through: https://www.daniel-one.com/blog/sostac-marketing-model-planning-system