FACULTY OF BUSINESS AND MANAGEMENT

MGT657 – STRATEGIC MANAGEMENT

GROUP ASSIGNMENT
COMPANY REVIEW & STRATEGIC PLAN
(APPLE INC.)

PREPARED BY:

NAME STUDENT ID
AHMAD NUR HADIF BIN ROSDI 2020847066
AMIRUL BIN RAJA ROSMAN 2020846726
AZMIN RIDWAN BIN AZMI 2020473826
IQBAL SYAKEER BIN HAMZAH 2020834388

PREPARED FOR:
DR. MOHAMMAD ZULFAKHAIRI BIN MOKTHAR

CLASS:
BA2505C

SUBMISSION DATE:
30TH DECEMBER 2022
 ACKNOWLEDGEMENT

Assalamualaikum wbt. First and foremost, we would like to say Alhamdulillah to Allah S.W.T for the guidance
that He gave us for completing this report about Apple Inc.

Second, we would like to express our gratitude to our MGT657 Strategic Management lecturer, Dr.
Mohammad Zulfakhairi bin Mokthar for spending for of his time guiding and supporting us from start to finish by giving
us information regarding on how to conduct this report.

Third, we also would like to expand our gratitude to those have been directly and indirectly involved in
supporting us regarding this report, especially to our classmates. They gave us lots of valuable recommendation on
this report which also gave us lots of improvements in terms of quality of our report. Without their supports as cited, we
would have been led astray from the right path.

Last but not least, we would like to thank to each of our group members who had sacrificed most of our time
on making this report and perfecting it. We backed each other and faced any difficulties that occurred during our making
of this report.

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 TABLE OF CONTENTS

PAGE
ACKNOWLEDGEMENT i

TABLE OF CONTENTS ii

EXECUTIVE SUMMARY iii

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 EXECUTIVE SUMMARY

Jobs and Wozniak established Apple Computers in 1976. The two college dropouts intended to make portable,
compact computers. The Apple II changed the personal computer market by introducing colour graphics. Apple's
largest yearly earnings were in 1990. Apple's vision statement describes its future plans.

Tim Cook, Apple's CEO since Steve Jobs' death, continues Jobs' mission. The iPhone helped Apple become
the first company worth a trillion dollars in 2018. The vision statement is wide, assumed, and consistent with embracing
the technology industry's future. The company may elaborate on strategic orientation and AI. Apple makes user-friendly
iPhones, iPads, and wearables. Purpose

Apple's hands-on approach is a competitive advantage. The iPhone helped Apple become one of the world's
most valuable public companies. Steve Jobs introduced the iPhone in 2007. iPad Mini, iPad Air, and iPad Pro are
entry-level tablets. Globally, COVID-19 has caused a negative demand shock across all areas.

The consumer electronics industry is expected to increase from $689.45 billion in 2020 to $989.37 billion in
2027, a 5.3% CAGR. Apple's mission statement describes the company's purpose and market role. A vision statement
is a living document that helps all stakeholders, especially employees, understand the company's meaning and purpose.
A vision statement helps the company build a long-term plan and unites everyone around its aims. The company aims
to "provide the best PC experience to students, educators, creative professionals, and consumers worldwide" (Apple,
2020).

It also explains how it'll do this. Apple encourages accessibility, education, environmental responsibility,
inclusiveness & diversity, and supplier accountability. These objectives will drive Apple's social media marketing team
to work within the limits of the company's most recent 2022 product launches, notably the iPhone 14 series.

A strong mission statement needs this.

Timed Time-based: With the new iPhone 14 models, monitoring SMART targets and KPIs over six months will give
fast feedback and insight. A mission statement emphasises organisational goals and how to reach them. It's important
to know how a company views the future and how its purpose and vision were formed. Apple's mission statement is to
provide the best user experience through innovative hardware, software, and services. Its vision statement is to make
great products, and that won't change (Gill, 2022). Begin a vision statement with societal and organisational vision.

Then, evaluate your company's role in bringing the vision to life. Ask everyone to write a mission statement.
Include the new purpose statement in all organisational activities and documents like bids and training manuals. Core
principles, core focus, core aim, marketing approach, 3-year picture, 1-year plan, rocks, and issues should be included
in your vision statement. Too often, leaders focus on the 10-year horizon. The final vision statement should be stickier
than final.

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1.0 APPLE INC. COMPANY REVIEW

1.1 Background of Apple Inc.

The college dropouts Steve Jobs and Steve Wozniak established Apple Computers, Inc. on April 1, 1976.
They brought to the new firm a goal of transforming the way people perceived computers, and they did it by founding
Apple Computers, Inc. Jobs and Wozniak had the vision of creating personal computers that were portable and
compact enough to fit in people's homes or offices. To put it another way, all they wanted was a computer that was
easy to use.

In the beginning, Steve Jobs and Steve Wozniak constructed the Apple I in Jobs' garage and sold it to
customers without a monitor, keyboard, or housing (which they decided to add on in 1977). The Apple II was a game-
changer in the personal computer market since it was the first personal computer to provide colour graphics. After then,
Apple began trading publicly.

The lack of interest in Steve Wozniak's part in the day-to-day operations of Apple Computers led to his
departure from the company in 1983. Jobs then decided to promote John Sculley of PepsiCo to the position of president.
However, this effort ended up being unsuccessful, and after considerable contention with Sculley, Jobs finally departed
the company in 1985 to pursue new and greater opportunities.

Apple continued to enjoy success throughout the remainder of the 1980s, and in 1990 it reported its biggest
annual earnings to date. This was, however, mostly owing to the plans that Jobs had already put into action before he
departed, the most notable of which was his contract with a very obscure business known as Adobe, which was
responsible for developing the Adobe Portable Document Format (PDF). Desktop publishing was a new industry that
was established as a result of the collaboration between the two firms.

When Microsoft founder Bill Gates approached Sculley in 1985 with an offer to licence its software, Sculley
declined the offer. This choice would come back to haunt him in the future because Microsoft, whose Windows
operating system (OS) featured a graphical interface similar to Apple's, became their most formidable competitor in the
late 1980s and throughout the 1990s. Apple's graphical user interface (GUI) was developed by Apple.

After reaching its high point in 1990, Apple's market share began a gradual decline that continued for several
years; by the year 1996, industry observers were convinced the business would never recover. It wasn't until 1997,
when Apple was in dire need of an operating system, that the company bought out NeXT Software, and the board of
directors decided to ask for some assistance from Steve Jobs. Jobs agreed to assist Apple, and the two worked
together to create the Macintosh operating system. Jobs stepped into the role of temporary CEO, which he referred to
as iCEO (Jobs was not officially the CEO until 2000). Jobs came to the conclusion that certain adjustments needed to
be made at Apple. He established a partnership with Microsoft in order to develop a Mac version of the company's

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widely used office software. The corporation underwent a complete 180 degree turn not long after this choice was
made. Jobs redesigned the machines and produced the iBook, which is a personal laptop. He then introduced the iPod,
which is an MP3 player that eventually became the industry standard.

The first iPhone was a touch-screen mobile phone that was debuted in 2007, and it quickly became one of
the most popular items in the world. Since then, the business that made it has come out with various updated models.
The iPad tablet and the Apple Watch are two of Apple's other popular products. Apple has lately extended its service
offerings by introducing a credit card called Apple Card, a news and gaming platform called Apple News and Arcade,
and a streaming service called Apple TV+ for the company's own original content produced by Apple. Tim Cook, who
succeeded Steve Jobs as CEO of Apple after Jobs' death on October 5, 2011, is carrying on Jobs' vision for the
company even after Jobs' passing. Apple was the first firm to reach a valuation of one trillion dollars in 2018, because
to the incredible success of the iPhone, and it doubled that total just two years later.

Apple Inc. Vision Statement

“To make the best products on earth and to leave the world better than we found it”

The vision statement for Apple outlines the path that the company intends to take in the future. It possesses
a number of the standard qualities that are typically associated with good business vision statements. For instance,
Apple's corporate vision makes it very apparent what the company's objectives are. These objectives include leadership
in product design and development as well as a priority on excellence as a commercial organization. In addition, the
vision statement is broad, assumed, and consistent with the goal of embracing the future of the technology industry.
Nevertheless, one suggestion for enhancing Apple's vision statement is to expand upon its current level of specificity.
Instead of presenting a broad statement, the organization may make the corporate vision more particular by elaborating
on topics like strategic orientation and the ideal future condition of a variety of commercial sectors, such as internet
services and artificial intelligence. These supplementary pieces of information could make it simpler for Apple's staff
members to comprehend the corporate vision statement and act in accordance with it.

Apple Inc. Mission Statement

” To bringing the best user experience to customers through innovative hardware, software, and services”

This mission statement shows Apple's dedication to providing the greatest goods and services to satisfy each
individual customer's particular requirements. It directs the business toward its long-term objectives, which has aided
in its success. The three main parts of Apple's mission statement which are best user experience, innovative product
and quality service delivery.

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Best user experience. Apple makes every one of their devices, whether it's an iPhone, iPad, or wearable, user-friendly.
When it comes to user experience, the firm makes no concessions. Apple devices offer the finest user experience due
to their creative and approachable features. Apple released iOS 13 in 2020 with powerful location and Bluetooth
permissions. It released an opt-in ad-tracking functionality with iOS 14 in 2021. These convenient privacy tools for
iPhone users can enhance their experience while helping to safeguard their private information.

Innovative product. Apple creates goods to meet the specific requirements of its clients. Apple has raised the bar for
product design, usability, and usefulness ever since it was founded. Apple's hardware and software products serve a
range of markets, including those in healthcare, business, and education. Apple has boosted its influence in the
healthcare industry in recent years with cutting-edge devices like the Apple Watch, which can detect cardiovascular
problems. Patients may access their medical information using their mobile devices thanks to its Apple Health Records
function for the iPhone. Patients may access their medical information using their mobile devices thanks to its Apple
Health Records function for the iPhone.

Quality Service Delivery. Apple is a customer service nut, from the App Store to Apple Care to tech assistance.
Everything is under its control, including development, sales, and maintenance. Apple has an advantage over its rivals
because to its hands-on approach. Given that the majority of businesses provide subpar customer service, this score
is outstanding.

1.2 Apple Inc.’s Products

Mac

The Mac is a group of personal computers made by Apple. Macs are renowned for their user-friendly interfaces and
unique, minimalist designs made of aluminum. Students, artists, and software developers have all been known to use
Macs. The iMac, Mac mini, Mac Studio, and Mac Pro desktop computers make up the current lineup, together with the
MacBook Air and MacBook Pro laptops. All Macs use Apple silicon processors, excluding the Mac Pro. Macs have the
iWork productivity suite, the Safari web browser, iMovie for home video editing, and GarageBand for music production.
They also run the macOS operating system. Apple also produces professional-level programmers, including Xcode for
software developers, Logic Pro for musicians and producers, and Final Cut Pro for video creation. Apple offers a wide
range of additional Mac peripherals, such as the Pro Display XDR, Apple Studio Display, Magic Mouse, Magic Trackpad,
and Magic Keyboard.

iPhone

Apple's iPhone range of devices use the iOS mobile operating system. Steve Jobs launched the first iPhone on January
9, 2007. Every year since, additional models have been launched. Its multi-touch screen was hailed as "revolutionary"

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and a "game-changer" for the mobile phone industry when it was first shown. The app economy has been ascribed to
the gadget. The iPhone is credited with helping to make Apple one of the most valuable publicly listed businesses in
the world by generating significant earnings for the business. The iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and
iPhone 14 Pro Max are the newest models.

iPad

Apple's iPad tablets use the iPadOS operating system. The launch of the first iPad took place on January 27, 2010.
The iPad is mostly promoted for using it to watch videos, make art, work on papers, participate in video conferences,
and play games. The iPad portfolio includes a number of entry-level devices in addition to the iPad Mini, iPad Air, and
high-end iPad Pro. Even while Apple's iPad Pro has the same M1 and M2 CPUs as the Mac, the iPad nevertheless
draws criticism for its constrained operating system. The Apple Pencil, Smart Keyboard, Smart Keyboard Folio, Magic
Keyboard, and various adapters are just a few of the iPad accessories that Apple sells.

1.3 Current Scenario of the Consumer Electronics Industry

According to Fortune Business Insights, 2021, the global consumer electronics market for the year 2019 was
USD 729.11 billion. The impact of COVID-19 that hit globally has been unprecedented and staggering, with negative
demand shock across all regions due to the pandemic. The consumer electronics market exhibited a decline of 5.4%
in the year 2020. The market was projected to grow from USD 689.45 billion in 2020 to USD 989.37 billion in 2027 at
a Compound Annual Growth Rate (CAGR) of 5.3% for the period of 2020 to 2027. The rise in CAGR is attributable to
this’ market’s demand and growth, reverting to pre-pandemic levels once the pandemic declared as over.

During the first wave of COVID-19 that hit China, the China’s Government imposed strict lockdown regulations.
China is one of the leading manufacturers of electronic components and raw materials. China also are the homes for
famous tech giants, for instance Xiaomi, Huawei, Oppo, Oneplus, Realme, Lenovo, and ZTE. With the rise of the
pandemic in China, it had a significant effect on the supply chain for the electronic products, such as several factories
manufacture electronic components had to be closed as workers are not allowed to leave their homes. Social distancing
and stay-at-home rules had impacted negatively in terms of sales for electronic items around the world. For example,
the market revenue of Sony’s Electronics Products and Solution (EP&S) segment had declined from 977.4 billion Yen
in the first half of fiscal year (FY) 2019 to 836.5 billion Yen in the first half of fiscal year (FY) 2020 as a result of the
closures of electronics retail stores (Fortune Business Insights, 2021). However, the trend of work-from-home had led
to a growth in demand for computing devices and peripherals. As an example, LG Electronics’ percentage share of
monitors in total revenue in Q2 2020 increased to 23% from 17% in Q1 2020, in addition notebook and tablets increased
to 29% in Q2 2020 from 20% in Q1 2020 (Fortune Business Insights, 2021). Relaxing on lockdown regulations,

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reopening of retail stores, and continued trend of online shopping are the factors that will accelerate the consumer
electronics industry to grow in the near future.

Government authorities are making efforts to support the growth of electronic products in their respective
countries (Fortune Business Insights, 2021). For example, India issued the National Electronics Policy 2018 with the
aim to attain a turnover of nearly USD 400 billion in domestic electronics manufacturing by the year 2025 (Fortune
Business Insights, 2021). This will boost the adoption of modern technologies for example 5G, IoT, AI, and machine
learning. Thus, resulting in greater implementation of electronic products embedded with latest highlights in the country.

With the increasing income level in the world population, this allows the consumers to spend more on new
devices as the technology is getting better and smarter for newer devices. These technologies are such as Near Field
Communication (NFC) for digital wallet, 5G for faster connectivity, better camera which allows them to take pictures
more beautiful, long-lasting and fast charging battery that allows the consumers using it on heavy usage for longer
period, larger storage for the consumers to keep all the files, and etc.

Among technical consumer goods in households, electronic devices are one of the highly penetrated products.
Now, firms are concentrating on creating high-performing and convenient-to-use devices due to the increasing
consumer demand. This will also further likely to push the demand for electronic devices and domestic appliances with
the introduction of technology and digitalisation.

1.4 Comment on Apple Inc. Vision, Mission, and Objectives

Simply said, a vision statement is a live declaration that offers a tangible manner for all stakeholders,
particularly workers, to comprehend the meaning and purpose of the company. It is what, where, or who you want the
business to eventually become. A vision statement should be able to excite and encourage others to support a notion
or idea. It can set a benchmark, offer a point of reference, direction, and the organization's desired state after a certain
number of years. Setting a vision has two goals: first, it helps the firm develop a long-term strategy for its future, and
second, it unites everyone over the organization's goals.

Contrarily, a mission statement is utilised to describe the reason for being of a business as well as the function
it fulfils in the marketplace. The mission of a corporation is its reason for existing; it is its purpose, passion, or cause, if
the vision was what, where, or who they wanted the firm to become. The mission statement of Apple is direct, brief,
and to the point. They clearly want to give their customers high-quality items. They also indicate that they want to
continue doing this for a while, and the customers seems to trust them. It provides a thorough explanation of how the
business conducts its operations to establish itself as the industry leader in the technology field.

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 This goal statement was initially presented by Apple's current CEO, Tim Cook, in the company's 2018 annual
report. Apple emphasises that its purpose is to provide its customers with the finest service possible in its mission
statement. Yes, it exists to provide the finest service possible. The beautiful thing about Apple's objective is that it also
provides a high-level explanation of how it expects to accomplish this. A crucial component that a strong mission
statement must include.

Through its cutting-edge hardware, software, and online offerings, Apple aims to "deliver the finest personal
computing experience to students, educators, creative professionals, and consumers throughout the world" (Apple,
2020). The company's ambition to progress technology in its goods to meet the demands of its target markets is outlined
in this purpose. Apple is committed to upholding the five basic principles of accessibility, education, environmental
responsibility, inclusiveness & diversity, privacy, and supplier accountability in line with their corporate mission.

SMART targets will be created with Apple's business objectives in mind to increase productivity and provide
more cutting-edge, user-friendly technology for its customers. These objectives will guide Apple's social media
marketing team to work within the constraints of the company's most recent 2022 product launches, including the
iPhone 14 series, as well as to include additional goods that use the newest technology.

Specific: Boost new product purchases by at least 5% compared to when the prior models were released by increasing
user traffic to Apple's website through social media postings and marketing. By the time the next product launch comes
along, increase leads by 5%.

Measurable: Analyse individual data points such as conversion rates, hashtag usage, customer happiness and loyalty,
and competitive advantages/disadvantages by tracking relevant KPIs as shown below.

Attainable: Direct customers to announcements about new releases and upgrades via social media. As an alternative
to in-store purchases, provide free contactless delivery and Apple assistance online.

Realistic: By setting a goal to increase social media engagement and tracking KPIs by at least 5%, Apple can continue
to sell products to existing and new customers as scheduled. Consistently using social media to illustrate and promote
technological features of new products will maintain brand visibility.

Time Based: Time-based: With the recently released new iPhone 14 models, monitoring SMART objectives and KPIs
over the course of six months will enable immediate feedback and insight on these goods. In the future years, Apple
will advance with the recently unveiled A15 Bionic processor chip thanks to the data gathered. During this period, any
required software or product changes can be considered and correctly handled.

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1.5 Suggestions for Improvements

Apple vision statement is ‘we believe that we are on the face of the earth to make great products, and that’s
not changing, while its mission statement is that ‘bringing the best user experience to its customers through innovative
hardware, software, and services (Gill, 2022). The first step to understanding how an organization advances toward its
short- and long-term goals is identifying the mission and vision that guide it. Indeed, a mission statement places more
of an emphasis on the company's goals and how to achieve them. The vision describes how that same business
envisions itself eventually. To comprehend how an organization views the future, it is crucial to understand how its
purpose and vision were developed.

A mission statement needs to be succinct and to the point, but it also needs to be wide enough to include the
long-term goals of the company. A strong mission statement tackles opportunities, is motivating, and aligns with the
organization's capabilities. A strong mission statement conveys the organization's goals for how it wishes to be
remembered (Simpson, 2022). Mission statements are frequently confused with various other organizational
statements or strategies: goals and objectives are result definitions that describe what an organization is trying to
achieve with its programs and policies; a vision statement explains the location or circumstances that the organization
envisions it will be in once its mission has been fulfilled; a values statement identifies the principles directing the
organization's work. Strategies provide an answer to the question about how an organization will accomplish its goals;
tactics are the exact procedures used to conduct strategies, such as financial and budget strategies, schedules, and
the designation of individuals in charge of various tasks.

A company should examine its mission statement for a minimum of every couple of years, and preferably
more regularly if it works in an industry that is experiencing rapid change. Create a small group with members from the
staff, board, clients, and funders. (Avoid trying to create a mission statement in a sizable organization.) To display what
you hope will exist once your vision has been realized, start with the social and organizational vision. Then, consider
your company's unique role in bringing the vision to life. Request that each person compose their own personal mission
statement. The writing group will then use these draughts to produce a single statement based on the recurring themes
revealed in each individual draught. The entire board is asked to approve the updated or new mission statement. Be
prepared for board members to discuss the statement and modify it. Better still if board members can steer this
conversation. The revised mission statement ought to be used and extensively disseminated after it has been approved.
Include the new purpose statement in all organizational activities and in documents like bids, training manuals,
brochures, and other marketing assets. Even the backside of business cards is printed with it by certain organizations.
In the end, it ought to influence all you do. These stages are essential if you want to develop a purpose that will
genuinely benefit your organization in a significant way—one that motivates and is simple to express (Simpson, 2022).

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 For the vision statement, companies like Apple can use these three tricks in writing a good vision statement.
The first one is a good vision statement involves alignment (O'Donnel, 2021). Vision statements must be approved by
leadership teams, but they must also be supported by all employees. The only way to guarantee a vision will have a
good influence on your team, your company, and your consumers is to ensure alignment around it. Your vision
statement should not be created entirely by democratic means. Every shareholder should have a say even though they
should not all have a vote. And you ought to listen carefully to everything they have to offer. Ask employees to identify
their priorities for the company as you create your vision statement. What do they hope the company will accomplish?
Consider their opinions as you create your vision statement. Take team members out of the scene if they cannot
commit, even if they disapprove of the final product. A united front cannot be maintained if even one player refuses to
participate.

The second one is that your vision statement creation process should include eight core points (O'Donnel,
2021). In building your vision statement, you should have core values, core focus, core target, marketing strategy, 3-
year picture, 1-year plan, rocks, and issues to make sure the statement is good enough. You may develop a realistic
vision that is not overly abstract by taking each of these into consideration. Leaders all too frequently focus primarily
on the long-term view, the 10-year goal. They may have a goal like, "In ten years, we desire to have 100,000 clients
plus $100 million in sales." But how can workers right now support that objective? A 10-year goal stands too far apart
from regular obligations and chores. Little enthusiasm, incentive, or motivation is produced by it. The 10-year goal is
significant, but employees can grasp and make progress toward the other seven manageable components that can
help you get there immediately.

The last technique is that the final vision statement should be sticky-but not actually final at all (O'Donnel,
2021). Your business will inevitably experience change as things in life and the economy change and as doors open
and shut. Do not make your vision statement irrevocable; it should evolve along with your company. Allow time for
recalculating and adjusting. Just be certain to travel with your team. Have an all-team meeting every quarter to review
your vision statement. Bring your team together every three months (whether in person, online, or a combination of
both) and discuss where you have been, where you are now, and where you are heading. Describe any revisions and
restate the vision. Next, go over the vision statement for the following three years with your staff. Making a vision
statement is a continuous process. As much as they are in charge, it is something that leaders must continually consider
and reaffirm. You can reduce the chance of leaving someone behind, prevent whiplash from pivots, and maintain
alignment among your team as you work to make your vision a reality by being open and honest about how and why
the vision has changed.