Apple Strategic Audit

2393 words 10 pages
I. Current Situation

A. Current Performance Strong financial results for its fiscal 2010 first quarter; no debt.
• Best quarter ever, recorded $15.68 Billion in revenue.
• Reported $3.38 billion net revenue
• 283 retail stores in 10 countries.

B. Strategic Posture
1. The company’s strategic posture is clearly stated, and is also back up by its strong performance.

2. Mission
• Apple is committed to bringing the best personal computing and music experience to its customers. The company has a unique ability to design and development its own hardware and software.

3. Objectives
• Today, Apple is committed to lead the industry with its award-winning computers, OS X operating system and iLife and professional
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• Big players with deep pockets- Google, Nokia, Microsoft, Sony, HP.
• Competitive factors affecting the mobile industry include: price, product quality, service.
• Rapid changing technologies and standards.
• Apple must continue to innovate to keep in pace with technological changes and the consumer demands.
• Apple’s products are trendy and stylish.
• Positions its products as higher quality and higher price.
• Though economic times preventing some consumers to purchase high-ticket items.
• Apple dominates the music player market.
• Pressure from EU countries requiring iPod player and iTunes online store compatibility with rival offerings.
• 2006 investigation by SEC over the company’s issuance of stock options to top management.
• Growing needs on mobile devices and cloud computing technology, consumer and business applications.
• Threats of new entry very low due to huge capital requirements, strong R&D, and market strategy required.

IV. Internal Environment: Strength and Weaknesses (SWOT)

A. Corporate Structure
1. The company is structured around its portfolio of products.
2. Decision-making authority is centralized at headquarters.
3. The corporation is organized based on some combinations of functions, projects, and geography.
4. Structure is clearly understood by everyone in the corporation.
5. Present structure consistent with current corporate objectives, strategies, policies, and programs, as well as with the firm’s


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