1. Apple Inc. Case Analysis
Presented by: Murad Hudulov

2. Case Analysis Content:
Situation Analysis
Financial Analysis
Key Success Factors
SWOT Analysis
Recommendations
Implementation and Expected Outcomes
Evaluation and Control

3. Company Overview
 Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976 to develop and sell personal computers.
 It was incorporated as Apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9, 2007 to reflect its shifted focus towards consumer electronics.
 Apple Inc. headquarter in California.
 Apple Inc. has 9 products , 7 services and 378 retail stores world wide

4. NAME HISTORY
According to Steve Jobs, Apple was so named because Jobs was coming back from an apple farm, and he was on a fruitarian diet.
He thought the name was "fun, spirited and not intimidating"

5.  Apple Inc. is an American multinational corporation headquartered in California, that designs, develops, and sells consumer electronics, computer software and personal computers.
 Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer.
 Its consumer software includes the OS X and iOS operating systems, the iTunes media browser and the Safari web browser

6. EVALUTION OF APPLE LOGOS

7. Situation Analysis: Industry Overview :
The Consumer Electronics industry includes electronic appliances that are used everyday, mostly for communication, entertainment, and office purposes.

8. Mission Statement
"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."

9. From Where Apple is Making Money
Macintosh Computer
iPod
42%
s 25%
Others
<1%
iPad 10%
iPhone 23%

11. Apple Inc. Competitors
Apple has many competitors in the personal computers industry

12. Apple Inc. Competitors
In smart phones industry

13. Apple Inc. Competitors
In iPads industry

14. Strategic Group Map Smartphones SGM 1.5 Quality 12 10 APPLE 8 HTC
Pric e 6 4
SAMSUNG 2
0.5 1 2
2.5 3
3.5
1.5 Quality

15. Strategic Group Map for Software

16. Financial Analysis Ratio 2010 2009 2008 Comment Profitability Ratios
Gross Profit Margin
39.30%
40.10%
35.20%
Gross profit margin increased in 2009 compared to
2008,slightly decreased in It indicates the
margin available to cover operation expenses and generate profits
Operating Profit Margin
28.20%
27.30%
22.20%
OPM improved throughout the years indicating
profitability from operations regardless og interest
Net Profit Margin
21.50%
19.20%
16.30%
NPM improved throughout the years indicating good
profitability and pricing strategies
Return on Total Assets ( ROA)
18.60%
17.33%
15.40%
ROA improved through the year reflecting good
return on investment or the ability of assets to generate return
Return on Equity (ROE)
29.30%
26%
29%
ROE slightly declined in 2009 compared to 2008, but
again it increased in 2010 reflecting the improved return on stockholders investments in the co.
Earnings per share
15.15%
9.08%
6.78%
EPS improved in 2009 compared to 2010 and
improved dramatically in 2010 thus owners are well paid off

17. Ratios Current Ratio Quick Ratio
Liquidity
Ratios
Current Ratio
2.01
2.74
2.46
Decreased liquidity ratio but still
good in 2010, it indicates that every 1$ of current liabilities is covered by
2.01$ of current assets
Quick Ratio
1.96
2.7
2.42
Decreased quick ratio but still good in
2010, it indicates that every 1$ of
current liabilities is covered by 1.96 $ of current assets, without the need to sell inventory
Inventory to
net working capital
5.01%
2.27%
2.47%
Inventory increased drastically in
2010 compared to 2009 & 2008, yet still represents 5.01% from the
working capital

18. Improved debt to equity ratio in 2009
Leverage Ratios
Debt-to-Asset
ratio
36.40%
33.40%
46.80%
Improved debt ratio in 2009
compared to 2008 , and slight increase in yet the ratio indicates that the co. tends to lower financing its assets through debt
Debt-to-Equity
57.30%
50%
88.20%
Improved debt to equity ratio in 2009
compared to 2008 , and slight increase in yet the ratio indicates that the co. tends to increase self or equity finance and
decrease external debts
Long term debt
to Equity ratio
13.90%
13.70%
21%
Improved long term debt ratio in
2009 compared to 2008 , and slight increase in yet the ratio indicates that the co. tends to lower depts financing its long term capital structure

19. Assets Turn Over ( TATO)
Activity Ratios
Inventory
turn Over 62 94
73.6
Inventory turn over increased in 2009 compared tp 2008 then
decreased in 2010 to 62 times, this might indicate accumulation of finished goods inventory , or mmay be the company metigates the risk of supply through increasing stock of raw materials
Fixed Assts
Turn Over ( FATO)
2.08
3.08
12.7
FATO is decreasing through the years of comparison,
indicating mis management of fixed assets to generate sales, or that the company maintains too much fixed assets that are not much productive
Total
Assets Turn Over ( TATO)
0.87
0.9
0.94
TATO decreased slightly throughout the years of comparison,
the decrease might indicate inefficiency of total assets o generate sales , but it should be compared to industry average to determine clear analysis

20. Key Success Factors  1-Technology
Apple is an expert in the computer technology and the electronics industry becoming a global leader in the computer industry and its R&D.
❏ They have expanded computer technology into phones, laptops, tablets, music players, and recently into watches.
 2. Manufacturing
Apple has achieved both internal and external economies of scale by becoming the number one firm in their industry which lowered their production costs given extremely high demand

21. Key Success Factors  3. Distribution  4. Marketing
Strong Direct Sales Capabilities
Apple’s brick and mortar stores has provided them with strong direct
sales capabilities by dealing directly with the customers themselves
This allows them to personally up sale their products, handle customer complaints, and gauge the overall demand for their goods
 4. Marketing
A well-known and well-respected brand name
Currently Apple’s brand name is ranked number one in the world
according to Interbrand's study of worlds most popular brands.
This title increases their brand awareness and also
proves they are at the top of their game in the electronics industry

22. Key Success Factors  5. Skills and Capability Design expertise
Apple has prided itself on its design teams efforts in crafting unique designs that grab consumers and command their attention
They are lightweight, colorful, and ever changing with different cases

23. SWOT Analysis

24. Recommendations  Options for a leading company
 Focus on differentiated lifestyle branding: Apple has successfully developed a differentiated lifestyle brand and must continue to build on this foundation while resisting pressure to move to the middle to directly compete with Dell and HP. 

25. Recommendations  Generic strategies
 Design innovation: Put additional emphasis on design development with internal resource allocation to continue to lead the industry in design.
 Research user interface possibilities: As a mode of setting Mac computers apart from other PCs Apple must continue to innovate in user interface focusing on easy-of- use and intuitive menu functions
 Consumer electronics diversification: While the PC market has grown increasingly crowded with competitors and customers saturated other areas of consumer electronics continue to grow. Developing complementary products in other categories provides broader sources of revenue by accessing more customers in markets with less intense competition.
Apple should consider all work related to its operations in the
iPod, iTunes, iSync, and iChat sectors.

26. Recommendations Short Menu  Option One: Franchising of stores
 Option Two: Growth Strategy through new products and new market opportunities
 Option Three: Vertical Integration

27. Expected Outcomes of selected strategies

29. Recommended strategy supportive policies:
 Human Resources structured training programs
 Rewarding plan for innovative ideas
 Reward scheme for staff to increase their loyalty
 Effective performance Management
 Career planning and development

30. Action plans:
 Producing an action plan can be beneficial not only for individual basis but also for businesses. For example, it allows project managers or any member of a group to monitor their progress and take each task step-by-step, therefore allowing them to handle the project efficiently. The advantage of doing this is, it allows you to execute a structured plan for the end goal you intend to achieve.
Furthermore, it provides the team with appropriate foundations, therefore prioritising the amount of time you spend on each task.
 This will then prevent any sidetracking that may occur.
Lastly it creates a bond within a team, as each member is aware of their individual role, as well as providing necessary information to ensure success of the project 

32. Thank you..