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    Business strategy

    Introduction Of Business Strategy

    The main aim of this particular assignment is to get a proper knowledge about the different aspects of the business strategy and after that provide a suitable business strategy for Apple in order to make their business profitable. In this assignment, the process of strategic planning is discussed. In the development of the strategic business plans the effectiveness of the techniques is also discussed in this assignment. The strategic positioning and the environmental audit of Apple is also analyzed in this assignment. The significance of the stakeholders of Apple is also analyzed in this assignment. The different approaches to the strategy evaluation are also discussed in this assignment. The justification of strategy selected for Apple is also discussed in this assignment. The implementation of the chosen strategy is also discussed in this assignment.

    Task 1: Understand process of Strategic Planning

    1.1 Assessing how missions, visions, objectives and core competencies inform the strategic planning  

    According to Haines (2016, p.35), the strategic planning of the organization is greatly depended on the missions, visions, objectives and the core competencies.  The mission of the organization plays a major role in the in making of the strategic planning of the organization. It also assists in meeting the demands of the customer and the different stakeholders of the organization. The mission of the Apple assist in creating a value for their customer, make the customers loyal to the organization and to grow the share of the organization in the market (David et al. 2016, p. 10). This helps in making a strategy so that the customer base of Apple always remains high. The vision of the organization helps to identify the future aims of the organization. It assists in identification of the benefits and the growth of the organization. The vision of Apple is to make the services of the organization in the worldwide level. It helps in making a strategic planning so that the guidelines that Apple desire to achieve in a specific period of time helps Apple to grow its core business. The different stages to achieve the goal of Apple help the organization in becoming a leading business.  The core competencies of Apple are to make the business exceptional among its competitors. By creating an exceptional among the competitors, helps Apple to create a brand image among the customers and achieve their loyalty on Apple. The vision, objectives and the core competencies help the Apple to make such a strategic plan that provide tough competition to the competitors by providing high product value to the customers in a specific period of time (Ward and Peppard, 2016, p.25).

    1.2 Factors that have to be considered for formulating the strategic plans


    \Apple faces high competition in the market from Samsung and Lenovo. Samsung is providing a high product value to the customer. The market share of Samsung has increased from 20.4 % to 23.7% from 2015 to 2016. The market share of Apple has decreased from 18.7% to 15.4% from the 2015 to 2016. The market share of Samsung has increased as it implements the customer ideas. Samsung incorporates innovation for the development of the product.  In order to implement the customer ideas and to develop the product, Apple has to understand the needs of the customer. Apple can spot the new trends ahead of its competitors like Samsung and Lenovo. This helps in making Apple to know the customer ideas and implement the ideas. By fast responding to the needs of the customer Apple might develop a positive response among the customers and increase its market share (Thomas and Alluru, 2016, p.9).

    Socio Cultural Environment

    Apple is facing difficulty in finding the target customers for its product. Samsung is highly successful in determining the target customers for its product.  Apple is losing the market among the middle class and the lower class due to its high price. Samsung products are much cheaper than the Apple products. Due to this reason, Apple has a strong market in the metropolitan areas where a large number of rich persons live. Samsung is popular in both the middle income and the high income group. Petrides et al. (2016, p.36) stated that, Apple has to make its products cheaper without compromising its value. This helps in making of the product popular among the target customers. Apple has to develop its feature that is more popular among the target customers.

    Skills of the Employees

    The Technical skills of the employees in Samsung are better than that of the Apple team. Due to this reason the product development is better in Samsung than in case of Apple. Between the years of 2014 to 2016 Samsung has innovate many new products in demands of the target customers without reporting any faults. This is possible due to an effective technical team. Samsung also has an effective advertising team that is capable to market its product. Apple in order to develop the advertising and technical skills of its employees has to train them effectively in the changing market. Apple has to guide and monitor the activities that are performed by both of its technical and advertising team. This may help Apple to provide competition to Samsung.

    1.3 Evaluating the effectiveness of techniques that are used for developing the strategic plans

    According to Abou-Moghli (2016, p.5360), Ansoff matrix is an existing marketing strategy that helps Apple in increasing its market share and help in decision making of the development of its products. There are four strategies of Ansoff Matrix. They are Diversification, Market Penetration, Market Development and Product Development. Apple follows Diversification and Product Development to develop the strategic plans. Diversification is taken by Apple as it helps Apple to develop its products in a different way that their competitors are doing. It helps in innovating of new features to its products provide a competition in the market.  Product Development helps Apple to develop new products and services and place it in the existing markets. Apple could diversify its existing products like MacOS by incorporating new features to it. Apple is facing difficulty in implementing the Market Penetration and Market Development. The reason for difficulty in implementation of Market Penetration is because it involves increased promotion of the existing products. Apple is finding it difficult to lower the prices of its existing products and increasing its promotion. There also lies the difficulty of selling the existing products in the new markets. Apple faces the difficulty in finding the target customers in the new market. Due to this reason, the Market Development strategy is difficult to be implemented by Apple.

    Pearlson et al. (2016, p.44) mentioned that stakeholder analysis is a marketing strategy that identifies the individuals and groups that are affected by the change in decision by Apple company. The cooperation between the various stakeholders and the team is maintained by the stakeholder analysis. The two types of stakeholder in the Apple team are the internal and the external stakeholders. The internal stakeholders of the company are its employees and managers. The external stakeholders of Apple are its customers. The current situation of the Apple is due to the satisfaction of its external stakeholders. Apple has developed a approach to address the interest of its external stakeholders. The external stakeholders present their views on the Apple and Apple addresses the interests of the stakeholders. The internal stakeholders are not satisfied with the Apple. Apple is not able to provide compensation and job security to its employees that are causing the dissatisfaction of its internal stakeholders.

    Task 2: Ability in formulation of a new strategy

    2.1 Analyzing the strategic positioning by carrying out organizational audit

    Haroun (2016, p.71) mentioned that Apple follows a strategy to maintain the profit level by investing their money in some other products. In other words Apple tries to innovate new products while not disturbing the existing products. The strategy of Apple includes investing high in the research and development of its products. This strategy makes Apple to make a much stronger position in the market. Apple also makes sure that the products that are delivered from its own stores. In order to analyze the strategic position of Apple in the market SWOT analysis is done for Apple.

     Based on the SWOT analysis, Apple must follow a strategy where it provides its services at a lower price. Apple must remove the restriction from the DRM - Free Tracks. It should continuously invest in the Research and Development and should collaborate with the higher companies for continuous diversification and emergence.

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    2.2       Carrying out the environmental audit

    The environmental audit of Apple gives the impacts of the Political, Economic, Social, Technological, Legal and Environmental factors.

    Political Impact

    Apple dominant position in the the music industry could limit its market share in the future. Apple high dependence on China for its manufacturing could cause trouble for Apple in times of Political unrest in the country.

    Economic Impact

    Poff and Schmidt (2016, p.1100) stated that the increase in the labor cost in the developing countries might affect the cost advantage of Apple products. The rise in value of the US Dollars makes it difficult for Apple to operate in Asia and European Countries.

    Social Impact

    There is a huge distrust among the customers of many countries due to the expensive products. The potential customers of Apple of many countries could be offended due to the association with China.

    Legal Impact

    By offering the various financial services, Apple might face a high level of Legal Implications. There is an increased level of regulation and government oversight due to transaction by Apple Pay.

    Technological Impact

    The growing demands of Smartphone and tablets lower the demand for Apple’s PC thus reducing the sale of Apple’s PC.  The increase in the number of cyber attacks takes away one of the strongest advantage of Apple PC’s that is high security.

    Environmental Impact

    The disposal of Apple batteries is a biggest environmental concern for the company. The effort to cut the Greenhouse gases could increase the electricity rates and manufacturing costs of Apple.

    Figure 2: PESTLE AnalysisFigure 2: PESTLE Analysis

    2.3 Assessing the significance of stakeholder analysis

    Stakeholder analysis holds a great significance for Apple. The analysis significantly impacts the business of Apple. The perception of the customers and the sales from the different products is greatly impacted. Smith (2016, p.140) mentioned that the stakeholder analysis helps Apple in formulation of its strategies and policies. The stakeholder Analysis helps Apple in developing a price strategy for the organization. The interests of the customers are greatly met by the Stakeholders analysis done. Apple also meets the needs of the investors that help Apple to become one of the leading companies in the world.

    2.4       Presenting new strategy for the organization

    In order to continue as a leading company, Apple has to develop a strategy that emphasize on more of the advertisement and promotion of the product. Apple should also focus on the Research and Development of its product. It increases the innovation of the product in accordance to the needs of the customers. The strategy must also stress on the demands of the customer that is required for the innovation.

    Task 3: Understanding the approach to strategy evaluation

    3.1   Analyzing the alternate strategy of the organization

    Smith (2016, p.140) mentioned that there are alternative strategies that could be implemented by Apple. Apple could devise a strategy of Franchising in response to the entry in the market. Franchising helps in the rapid expansion of Apple markets. As Apple have a strong brand name that could be utilized internationally and nationally. The growth strategy of Apple is required to be organic that makes Apple to acquire 1 company every year. By using the Organic Growth, Apple could spend heavily on the Research and Development of its products. The Organic Growth indicates the real growth of the Apple. The substantive growth of Apple can be done by acquisition and merger with another company. Franchising is one of the tools of substantive growth. The limited growth strategies if implemented make Apple to implement the Market Penetration, Market Development, Product Development and Innovation. The limited growth strategies help Apple to compete in the market with its competitors. In case Apple is facing with losses then it could cut some expenses or reduce something. It is usually referred as Retrenchment. In case Apple needs money in a fast manner then it could switch to Divestment. It is also helpful when there is a poor strategic fit for the Apple.

    3.2 Justification of selecting the strategy by organization

    According to Haroun (2016, p.71) mentioned that the strategies taken by the organization are very helpful as it has implemented some organization personnel who can make the employee motivated towards the work and can yield better productivity. The target setting of the job is to complete the job within specified time and execute the same in proper way. According to Verbeke (2013, p85), the personnel has implemented a proper communication process through which the employees can understand the organization and the nature of project so as to do the job in specified way of job that the organization need from the employees. The strategies taken by the organization are very much justified and are implemented for the better yield of the business and proper running of the organization.

    L04 understanding the implementation of chosen strategy

    4.1 The roles and responsibilities of the charged personnel for implementation of the strategy

    The charged personnel have some responsibilities towards the organization. Communicating the plans of the organization by setting goals and communicate about the same to the employees are prior role of the personnel. He has to put resources to the employees and explain the processes for the same and do transmit the overall view to the working team. According to Hoejmose et al. (2013, p.610), the personnel do communicate well and this refers to the explanation of work to a understandable manner and the employees do proper comprehension with the personnel. He uses the layman communicating terms while communicating with the workers. Proper communications of him are very small and have digestible words that are tested to understand before the task move on for processing.

    The personnel have other role of giving out of the job assignments to the employees. A proper delegation ensures good implementation of business strategy. The manager is responsible for the picking of the people with teams that are best suited for the projects. He does take pressure for discovering different segments of the processes and understand the scope for such implementation. He has the role to implement mini leaders for splitting the jobs that are easy to manage to complete the total project. The organization has to monitor the job execution done by the employees. According to Buckley et al. (2016, p.78), there has to keep the document processing carefully and rectify the problems of the employee facing any sort of difficulty. He has the role to take care of the employees to manage the employees and involve the leader who is joining to work for proper managing of the work.

    Another most important role of the organization personnel is to encourage the staff in a correct attitude. Encouraging the employees for processing the job is very much needed to ensure for a proper job execution. For this purpose the personnel has to become the role model of the organization and look after the employees in a friendly manner. These are the roles and responsibility of the personnel for managing the projects and the jobs for proper business yield with the interest of employees as without the employee interest the job cannot be done properly.

    4.2 Estimation of resource for implementing of new strategy for the given organization

    Implementation is the process which turn strategies and the process this to action to accomplish objective strategy and targets. Critical actions need to implant for plan related to the strategy and is important. There should be strategy with estimated budget for the proposed project. Employee incentives are to be implanted within the target strategy. Pagani (2013, p630), stated that many organization personnel does spend less than an hour to discuss the plan of strategy however it must be more to avoid the failure of the project. The employee of the organization does not understand the strategy of the organization which is a great issue for the proper yield from the business. There must be some proper way to make the employee understand about the strategy of the company and this would help the employees work in a proper way of work to execute the job for a proper business by the organization.

    4.3 Strategy implementation achievements based on the contribution by SMART Targets

    Implementations of strategy based on the SMART targets are:

    Setting targets are easy however difficult to gain them- the target of the job has to be specific and need expression on it in the positive terms. Realistic targets are gained targets however unrealistic targets are only dreams (Jayaram et al. 2013, p.710). There should be target that is started in a timely manner and end up with the job within the due date.
    The targets need to be share with some people who are concerned with the job role- the job description does need to understand by the leader employee who involve the worker for completion of the job. There need to gather everything that is needed for the execution of the job before the job is started so as to do the job without any problem.
    There must be minimum potential challenges- to achieve target there need to produce a measurable, complete and action plan which are necessary to gain the target. According to Slack (2015, p.59), regular evaluation of the job makes it easier to complete the target in proper way and finish within the given time. There should be a proper system to support the job and provide advice by receiving feedbacks.


    The study is helpful to conclude elements of any organization are designed in very way so as to execute in a proper way of strategy. It is explained the process to divide the employees for increasing the work efficiency and the effectiveness of starting point for further complex decision which lead to create organization charts. There should be some proper business strategies taken by them to improve the functions of the organizations. The legal factors of the business would take an vital decision for the implementation into the organizational structure.


    • Haines, S., (2016). The systems thinking approach to strategic planning and management. CRC Press.
    • David, M.E., David, F.R. and David, F.R., (2016). The quantitative strategic planning matrix: a new marketing tool. Journal of Strategic Marketing, pp.1-11.
    • Ward, J. and Peppard, J., (2016). The Strategic Management of Information Systems: Building a Digital Strategy. John Wiley & Sons.
    • Thomas, M. and Alluru, J.R., (2016). The disastrous consequences of the Ikea Effect: Apple, Intel and Wang Labs learning the cost of true love. Strategic Direction, 32(1), pp.8-10
    • Petrides, L., Goger, L. and Jimes, C., (2016). The role of" open" in strategic library planning. education policy analysis archives, 24, p.36.
    • Abou-Moghli, A.A., (2016). Leadership Style in Strategic Decision Making and Factors of Perceived Environmental Uncertainty: An Integrative Framework. International Business Management, 10(22), pp.5358-5362.
    • Pearlson, K.E., Saunders, C.S. and Galletta, D.F., (2016). Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.

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