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Apple Inc. . Maintaining the Legacy November 4 th , 2013 Britta Wickham Janelle Goulard David Dlab Aditya Vardhan Michael Ries Matt Colphon. Executive Summary Apple Inc. in 2012.

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    1. Apple Inc. Maintaining the Legacy November 4th, 2013 Britta Wickham Janelle Goulard David Dlab Aditya Vardhan Michael Ries Matt Colphon

    2. Executive SummaryApple Inc. in 2012 Situation:Steve Jobs, a visionary and creative genius turned Apple into one of largest and most profitable companies in the world, revolutionizing several industries in the process. After his passing, it is uncertain how his successor Tim Cook will make his mark on Apple and take the company to the next level. Issues: • Tim Cook: does the new CEO have the right skillset to replace an iconic leader? • Competition: strong competitors in all product categories, especially against iPhone from Google & Samsung • Culture: is the closed nature of the Apple ecosystem helpful or hurtful? • Carriers: volume demand and subsidies required • International: technical Siri issues, recent healthy and safety issues with outsourced labour • Growth: is Apple in a cycle of cannibalizing itself and simply maintaining current customers rather than attracting new customers? Can it maintain its astronomical growth rate and valuation? Recommendations: Cultural Engagement – Continue to strengthen as a modern cultural icon, embed culture into a broader environment Address Conflicts – Work with carries, focus on competition, address technical and labour issues Develop Sustainability – Shift Apple away from Steve Jobs’ symbolic leadership while recognizing his enormous contributions to innovation Innovation – Analyze R&D budget, create skunk-works innovation center, re-hire from Steve Jobs era, new product development

    3. Short and Long term opportunities

    4. Short Term Strategy in current product lineLetting go of the iPod

    5. Long Term Strategy in current product lineRealizing potential in Macintosh PC PC World Wide Shipments

    6. Detailed Recommendations 1. Apple Sustainability • Recognize successful strategies that have brought Apple to this point • Understand values Steve Jobs brought to Apple and what may need to be replaced • Symbolic leadership needs to be pivoted 2. Address Innovation Needs • Analyze Research & Development budget • Create/Expand Skunk-works innovation center • Retain/Rehire innovative personnel from Steve Jobs Era (Ron Johnson) • Apple must move beyond Steve Jobs, compete in the here and now • Embed culture/life into broader environment • Strengthen Apple as a modern cultural iCon 3. Apple Culture • Work with Cellular carriers on issues of volume and subsidies • Overseas labour & technical issues (China, Siri, etc.) • Competition rapidly increasing from Google & Samsung 4. Address Conflicts

    7. Apple FutureNew Product Innovations • Next Generation Television • Apps & iTunes utilization 1. Apple TV 2.0 2. iLife & iProfessional • iLife Apple products not just niche, mainstream • Apple at home and in your office (Macintosh office solutions) • iProfessional apps and products for business today • Apple WiFi immerses your Apple products in your daily life, everywhere you go • Recognize iPad users prefer WiFi only option • iTunes access from any non-Apple device anywhere 3. Apple WiFi

    8. Key TakeawaysCulture and Innovation • Shift Apple away from the Steve Jobs symbolic leadership while recognizing his enormous contribution to innovation • Actively foster a culture of innovation • Enhance Apple experience at home, the office, and everywhere in between to ensure that Apple is a part of your everyday life Focus on maintaining the innovative culture and product creation from Job’s Legacy