Review of mission and objectives.docx

8.1 Review of mission and objectivesThe importance in analyzing these factors lies in the interdependence with the companys mission and objectives. One would expect that these strategic issues need to be addressed in the mission statement, as their effective management is crucial for the success of the company. To start with the analysis, the mission statement has to be recalled:“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.” Although short, the first sentence already creates the link between Apples obvious and most powerful strength in innovation and the results from the SFAS-table. In other words, Apple gives its strongest distinctive competence a top priority by pointing out the computer revolution, initiated by Apple during the late 1970s, in the first sentence of the mission statement. Furthermore Apple also addresses key technological issues as its commitment to excellence in all major business areas it operates in. Superior quality and innovation through the extensive use of R&D is the main driving force behind Apples recent success. To build on that and further increase its customer base is clearly one of the main objectives of the company. It doubtlessly highlights its strengths and opportunities in every situation. Nevertheless neither mission statement nor objectives are dealing with Apples threats and here lies another major problem within Apple. Apple and especially its current CEO lack realism, meaning that they have a difficulty to accept economic reality and live in their own innovative digital world. Apple, still condemned to be a niche player because of incompatibility and high pricing options, doesnt comment at any time on any possible threats such as competitors eaten in Apples market share, such as Dell in the education market or Sony in its notebook segment. Therefore attempts should be made to adapt its objectives and the mission statement not only to one half of the SFAS, but to incorporate every strategic factor. Any change in the mission statement and objectives would have huge and direct impacts on any strategy, beginning with functional over business to corporate strategy. In order to change all of them, the organization as a whole has to change. For this purpose you need to first unfreeze the organization in order to be able to move it. The change has to be lived within the people, because it is only people who can change the organization9. Alternative and recommendationAlthough most components essential to the companys business were generally available from multiple sources, certain key components including but not limited to microprocessors, enclosures, certain liquid crystal displays(“LCDs”), certain optical drives, and application-specific integrated circuits (“ASICs”) were currently obtained by the company from single or limited sources, which subjected the company to significant supply and pricing risks. Many of these and other key components that were available from multiple sources, including but not limited to NAND flash memory, dynamic random access memory (“DRAM”), and certain LCDs, were subject at times to industry-wide shortages and significant commodity pricing fluctuation. In addition, the company entered into certain agreements for the supply of key components including but not limited to microprocessors, NAND flash memory, DRAM, and LCDs at favorable pricing. However, there was no guarantee the company would be able to extend or renew these agreements on similar favorable terms, or at all, upon expiration or otherwise obtain favorable pricing in the future. Therefore, the company remained subject to significant risks of supply shortages and /or price increases that could materially adversely affect its financial condition and operating result.The company and other participants in the personal computer and mobile communication and media device industries also competed for various components with other industries that experienced increased demand for their products. In addition, the company used some custom components that were not common to the rest of these industries, and introduced new products that often utilized custom components available from only one source, when a component or product used new technologies, initial capacity constraints existed until the suppliers yields had matured or manufacturing capacity had increased. If the companys supply of a key single-sourced component for a new or existing product was delayed or constrained, if such components were available only at significantly higher prices, or if a key manufacturing vendor delayed shipments of completed products to the company, the companys financial condition and operating results could be materially adversely affected. The companys business and financial performance could also be adversely affected depending on the time required to obtain sufficient quantities from the original source, or to identify and obtain sufficient quantities from an alternative source. Continued availability of these components at acceptable prices, or at all, may be affected if those suppliers decided to concentrate on the production of common components instead of components customized to meet the companys requirements.Substantially all of the companys Macs, iPhones, iPads, iPods, logic boards, and other assembled products were manufactured by outsourcing partners, primarily in various parts of Asia. A significant concentration of this outsourced manufacturing was performed by only a few outsourcing partners of the company, including Hon Hai Precision Industry Co. Ltd. and Quanta Computer Inc. The companys outsourced manufacturing was often performed in single locations. Among these outsourcing partners were the sole-sourced supplier of components and manufacturing outsourcing for many of the companys key products, including but not limited to final assembly of substantially all of the companys Macs, iPhones, iPads, and iPods. Although the company worked closely with its outsourcing partners on manufacturing schedules, the companys operating results would be adversely affected if its outsourcing partners were unable to meet their production commitments. The companys purchase commitments typically covered the companys requirements for periods ranging from 30 to 150 days.The company sources components from a number of suppliers and manufacturing vendors. The loss of supply from any of these suppliers or vendors, whether temporary or permanent, would materially adversely affect the companys business and financial condition.10. ImplementationThroughout its history, the company focused on the use of technology in education and was committed to delivering tools to help educators teach and students learn. The company believed effective integration of technology into classroom instruction can result in higher levels of student achievement, especially when used to support collaboration, information access, and the expression and representation of student thoughts and ideas. The company designed a range of products, services, and program to address the needs of education customers, including individual laptop programs and education road shows. In addition, the company supported mobile learning and real-time distribution and accessibility of education related materials through iTunes U, which allowed students and teachers to share and distribute educational media directly through their computers and mobile communication and media devices. The company sold its products to the education market through its direct sales force, select third-party resellers, and its online and retail stores.The company also sold its hardware and software products to customers in enterprise, government, and creative market in each of its geographic segments. These markets were also important to many third-party developers who provided Mac-compatible hardware and software solutions. Customers in these markets utilized the companys products because of their high-powered computing performance and expansion capabilities, networking functionality, and seamless integration with complementary products. The company designed its high-end hardware solutions to incorporate the power, expandability, compatibility, and other features desired by these markets.The company was confronted by aggressive competition in all area of its business. The markets for the companys products and services were highly competitive. These markets were characterized by frequent product introductions and rapid technological advances that had substantially increased the capabilities and use of personal computers, mobile communication and media devices, and other digital electronic devices. The companys competitors who sold personal computers based on other operating systems had aggressively cut prices and lowered their product margins to gain or maintain market share. The companys financial condition and operating results could be adversely affected by these and other industry-wide downward pressures on gross margins. The principal competitive factors included price, product features, relative prices/performance, product quality and reliability, design innovation, availability of software and peripherals, marketing and distribution capability, service and support, and corporate reputation.The company was focused on expanding its market opportunities related to mobile communication and media devices, including iPhone and iPad. The mobile communications and media device industries were highly competitive and included several large, well-funded, and experienced participants. The company expected competition in these industries to intensify significantly as competitors attempted to imitate some of the iPhone and iPad features and applications within their own products or, alternatively, collaborate with each other to offer solutions that were more competitive than those they currently offered. These industries were characterized by aggressive pricing practices, frequent product introductions, evolving design approaches and technologies, rapid adoption of technological and product advancements by competitors, and price sensitivity on the part of consumers and businesses. The companys iPod and digital content service faced significant competition from other companies promoting their own digital music and content products and services, including those offering free peer-to peer music and video services. The company believed it offered superior innovation and integration of the entire solution including the hardware (personal computer, iPhone, iPad, and iPod), software (iTunes), and distribution of digital content and applications (iTunes Store, App Store, and iBookstore). Some of the companys current and potential competitors had substantial resources and may have been able to provide such products and services at little or no profit or even at a loss to compete with the companys offerings. Alternatively, these competitors may have collaborated with each other to offer solutions that were more integrated than those they currently offered.The companys future financial condition and operating result were substantially dependent on the companys ability to continue to develop and offer new innovative products and services in each of the markets it competed in. in 2010, only AT&T was the carrier for the iPhone. Verizon began selling a version of the iPhone in early 2011. AT&T activated 11 million iPhone accounts in the first nine months of 2010. Before Verizon, the iPhone had been exclusive to AT&T since its launch in 2007.11. Evaluation and controlActually, Apples current information system is highly capable and advanced and therefore should be able to provide sufficient feedback about the companys performance and the status of its cost reduction objectives in an accurate and timely manner. Moreover, through the use of the firms intranet the whole workforce as well as the management team should be informed about the current status quo and IT can also facilitate to implement appropriate strategic control measures which should provide instantaneous and continuous feedback on the performance and effectiveness of the firms strategy-specific activities. In fact, these strategic control systems should contain incentives to motivate the work force in order to improve efficiency, quality, innovation, and customer responsiveness. Moreover, in order to be effective, they should use IT for measuring/monitoring purposes, comparison of actual/desired results, and the final evaluation which could lead to enhanced or corrective action. In our case, Apple as it currently concentrates on personal and behave our control should also implement output control in terms of performance goals for separate divisions or even specific employees. These perform