Apple Computers. Jessica Bourgoin Amy Kakuk Beth Theriault 04/25/2005. Brief History of HD Where we are now Vision and Mission External Analysis CPM EFE Summary Internal Analysis IFE Financial ratio analysis Net Worth Analysis Summary. Strategic Analysis SWOT Matrix SPACE
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Where we are now
Vision and Mission
Financial ratio analysis
Net Worth Analysis
Grand Strategy Matrix
Strategic implementation and desired results
Objectives & GoalsOutline
As of January 2005 Apple has introduced the Mini Mac and the iPod Shuffle.
Graphics from: http://www.apple.com/macmini/
Graphics from: http://www.apple.com/ipodshuffle/
52 Week Low: 12.75
Apple had a 2:1 Stock split on 02/28/05
52 Week High: 45.44
Last Trade: 35.50
To become the world wide leader in computer and mp3 player sales.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.
Mission Statement (Proposed)
The Apple commitment to excellence is its mission to provide computers and service (2) for people (1) that meet the highest standards of value and reliability. Apple is one of leaders in the computer industry and makes the best-selling computers in the world (7) (3). Apple provides the highest level of quality and value for our customers. Those are timeless fundamentals. We also apply innovative technology to our core business (4) to differentiate ourselves and make our products irresistible to our customers, beneficial to society, and profitable to our company (5). We strive to provide additional opportunities for growth and enrichment of company personnel while maintaining a work environment for all employees (9) that encourages personal commitment and participation in support of achieving excellence. We are committed to being a good corporate citizen, and being openly honest with all of our stakeholders (6). We support activities that help to build common understanding, enhance excellence, and enable people to improve their lives and reinforce their commitment to society (8).
Increase in worms and viruses on PCs.
Large population (Gen X&Y) which are extremely individualistic and name brand conscious.
Weak ties with Microsoft products.
Downloadable music and MP3 players are highly marketable.
Increase sales of computers online by 25 percent.
Increase sales of laptops by 20 percent.
Companies not seeing Apple as compatible with their software.
Dell and HP are major competitors.
Increasing competition with music downloads.
Dell does not invent but provides computers at a more cost effective rate for customers.
Recession—price of Apple computers are higher.
Intel’s future Pentium release.External Audit
Apple has rated the Increase in worms and virus on PCs, Large population (Gen X & Y) which are extremely individualistic and name brand conscious, and the Creating more ties with Microsoft products as their three highest opportunities.
Apple has rated that the fact of Dell and HP being such huge competitors as their top threat.External Summary
iTunes Music Store is a good source of revenue, especially with the iPod and the availability on Windows platform.
Developing own software and hardware.
Apple’s niche audience provides the company with some insulation from the direct price competition.
Revamping desktop and notebook lines.
Web technology can be used to improve product awareness and sales.
Low debt—more maneuverable.
Good brand loyalty.
Weak relationship with Intel and Microsoft.
Weak presence in business arena.
Dependency on new product launches.
Weak presence in markets other than education and publishing.
Slow turn around on high demand products.Internal Audit
SE + Additional paid in capital + retained earnings 4,095M + 119M +2,325=6.5B
9/28/02 Net income x 565M x 5 = 325M
Share price (10/17/03)/ EPS (10/17/03) x avg. net income (3years)
[22.75/ 0.49] x 275M = 12.7B
Number of shares outstanding x share price
358,958,989 x 22.75 = 8.1B
Method average = 6.9B
Apple has rated their iTunes Music Store being a good source of revenue, especially with the iPod and the availability on Windows platform, their low debt—more maneuverable, and their Web technology being used to improve product awareness and sales as their 3 highest strengths.
Apple did not rate any of their weaknesses higher than a 2. they should work on being able to direct more attention to those areas and especially concentrate on the two areas of dependency on new product launches and the weak presence in business arena.
Increase awareness through the web of the immunity of Mac products to worms and viruses. (S5, O1)
Advertise using individuals that will link Generation X & Y to the iTunes and other related products. (S1, O2, O4, O5, O6)
Using movies and music groups that are geared towards Gen X and Y to promote computers and laptops. (S3, S5, O2, O5, O6)
Increase and promote the compatibility to Window operating system. (S5,T1)
Promote the originality of Apple computers and the different style and stable system that is slightly more but worth the price difference in style, stability and speed. (S2, S5, T2, T4, T5)
Increase ties with Microsoft and Intel and their products.(W1, W2, W4 O2, O3)
Promote to business the safety of having a worm and virus free computer by using Mac. (W2, W4, O1, O5, O6)
Improve relationship with Microsoft and Intel so that companies will see them as compatible. (W1, W2 T1)
Increase productivity and turn around of high demand products to compete with Dell and HP (W5, T2)SWOT Matrix
3.0 to 4.0
2.0 to 2.99
1.0 to 1.99
3.0 to 3.99
2.0 to 2.99
1.0 to 1.99
Grow and Build
Cash need High vs. cash flow low
Contract music spokes person (Sarah McLachlan | 50 cent) for a cost of
Start production of Wintel compatible software for a cost of
Total expected cost =
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