Apple Inc. Management Case Study
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Transcript of Apple Inc. Management Case Study
![Page 1: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/1.jpg)
Team MembersAllison Fukano | Jason Khoo | Megan Darger | Yuri Flores | Hannah Tran
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Brief Historical Review
• Timeline
• Starts in 1976• 70’s, 80’s, 90’s, 2000-2005, 2006 – Present
2
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Apple Computer Inc founded: 1st product was Apple I computer
Apple II is released
Apple introduced the Apple II+
1976 1979
1977
Apple: 1970’s
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Apple goes public and files for IPO
Apple III is released
Steve Jobs is fired and leadership now under John Scully
Apple discontinues Apple III; 1984
Macintosh commercial
Apple reaches $1 Billion in sales and is first personal computing company
Apple registered Apple.com as a
domain name
1980
1981
1982
1984
1985
1987
Apple: 1980’s
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Apple teams up with Motorola to create PReP; Power book line of computers is released
Apple releases the
Newton
All in one iMac is released
Apple introduces the online Apple store; Steve Jobs
named interim CEO
Purchase NeXT and Steve Jobs enters the company again
1991
1993
1996
1997
1998
Apple: 1990’s
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Steve Jobs officially named CEO
Opened Apple retail stores in major retail markets; first iPod is released; Mac Odx is released
Steve Jobs is diagnosed with cancer
Name changed to Apple Inc.;Release of the first version of the iPhone; Apple TV released
Apple introducesthe first iPad
Apple: 2000’s 2000 2003 2010
2001 2007
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Steve Jobs takes a leaveof absence & Tim Cook isNamed interm. Later that yearJobs resigns; Jobs passes away
Apple watch is announced
Apple: 2011 - Present
2011
2014
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First iPhone is released
iPhone 3G is released
iPhone 3GS isreleased
iPhone 4 is released
2007 2009
2008 2010
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iPhone 4S is released
iPhone 5 is released
iPhone 5S & 5C are released
iPhone 6 & 6 Plusare released
2011 2013
2012 2014
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1976 – 1996To be the leadingprovider of personalcomputers to those of theupper middle and elite class
1996 – 2007Stand as an innovative leader indigital equipment provider
2008 – PresentTo be the premierprovider of highquality & user friendly iPhonesfor consumer entertainment& business purposes
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Apple’s Performance Objectives Release the iPhone 7 by September 2016 with thesize reduced by 10% & a 10%increase in memory capacity
By 2018 increase net profitmargin to 35%
By 2020 obtain a35% market shareIn China
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Apple I and II released
Macintosh personal computerlaunched
Apple Online Store Opened
iPod and iTunes launched
1976-77 1997
1984 2001
Growth|Concentration|Horizontal integration
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iPhone released
Macbook Air and App Storelaunched
Apple release the iPad
iCloud launched
2007 2010
2008 2011
Growth|Concentration|Horizontal integration
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Acquired StylewareAnd Nashoba Systems
Acquired NeXT and Steve Jobs
Acquired Astarte – DVD Authoring Software and SoundJam MP
iCloud launched
1988 2000
1997 2011
Growth|Diversification|Concentric
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Acquired Zayante
Acquired FingerWorks
Acquired Placebase and Lala.com
C3 Technologies
2002 2009
2005 2011
Growth|Diversification|Concentric
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Acquired Chomp
SnappyLabs and Beats Electronics
2012
2014
Growth|Diversification|Concentric
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Apple went public at $22 per share. Made more millionaires than any company in history
Power struggle between Jobs and Scully. Jobs removed from management duties and resigned
Named “first golden age” of Macintosh
John Sculley leaves after multiple failed product launches
1980 1989 - 91
1985 1993
Stability
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Gil Amelio replaced Michael Spindler as CEO
After three years of record low stock prices, Amelio ousted and Jobs named interim
Stock prices jumped from $6 to $80. Market cap surpassed Dell
Jobs announces Apple Inc and shared hit all time high at $97.80
1996 2003 - 06
1997 2007
Stability
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Apple named most valuable consumer-facing brand in the world
Stock rose the company’s value to world record $624 billion
Apple planned to launch in Japan and India
2011 2014
2012
Stability
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Historical Functional Strategies
Nature of Market
• Always - B2C
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National •
•
•
•
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Breadth of Product Line Partial
• 2007 iPhone 2G – 4, 8, 16 GB
• 2008 iPhone 3G – 8, 16 GB
• 2009 iPhone 3GS – 8, 16, 32 GB
• 2010 iPhone 4 – 16, 32 GB
• 2011 iPhone 4S – 16, 32, 64 GB
• 2012 iPhone 5 – 16,32, 64 GB
• 2013 iPhone 5C – 8, 16, 32 GB
• 2013 iPhone 5S – 16, 32, 64 GB
• 2014 iPhone 6 – 16, 64, 128 GB
• 2014 iPhone 6 Plus – 16, 64, 128 GB
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Breadth of Product Line Partial
• 2007 iPhone 2G – 4, 8, 16 GB
• 2008 iPhone 3G – 8, 16 GB
• 2009 iPhone 3GS – 8, 16, 32 GB
• 2010 iPhone 4 – 16, 32 GB
• 2011 iPhone 4S – 16, 32, 64 GB
• 2012 iPhone 5 – 16,32, 64 GB
• 2013 iPhone 5C – 8, 16, 32 GB
• 2013 iPhone 5S – 16, 32, 64 GB
• 2014 iPhone 6 – 16, 64, 128 GB
• 2014 iPhone 6 Plus – 16, 64, 128 GB
Insert iphones here
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Degree of Customization
Standard
Color
• 2007-2009 – black or silver
• 2010-2013 – black, silver, or white
• 2013-now – pink, green, yellow, blue, white, black, silver, gold, or space gray
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Degree of Customization
Siri
• 2011 – now
IOS software
• 2007 – IOS 1.0
• January 2015 - IOS 8.1.3
Size
• 2007 – 2012 – 3.5”
• 2013 – 4” display
• 2014 – 4.7” or 5.5” display
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•••
•
•
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•
•
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Degree of Selectivity of Channels
• Medium (Big name retailers and chains, colleges, online retail)
• In the past, Low because wanted to sell as many as possible
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Advertising Media
• Print (I.e be different)
• Radio/TV (Product Placement)
• Movies (Product Placement)
• Billboards (all over big cities)
• Throughout Apple’s history they have been seen as a leader in advertising. With the infamous 1984 commercial they have utilized a heavy emphasis on advertising.
• Link to history of Apple Ads (includes print and commercials)
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Use blogs and their fanatical group of super fans. Always have a line out the door with every launch of a new phone or tablet.
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Short Term Liabilities= Short Term Liabilities/Total Assets
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 28% 24% 22% 21% 27%
Samsung 30% 28% 26% 22% 23%
Nokia 45% 48% 46% 38% 35%
Motorola 34% 27% 26% 27% 22%
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Long Term Liabilities= Long Term Liabilities/Total Assets
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014
Apple Samung Nokia Motorola
2010 2011 2012 2013 2014
Apple 9% 10% 11% 19% 25%
Samsung 4% 6% 7% 6% 7%
Nokia 14% 13% 24% 17% 24%
Motorola 23% 35% 48% 42% 52%
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Retained Earnings= Retained Earnings/Total Assets
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 49% 54% 58% 50% 38%
Samsung 63% 63% 66% 69% 71%
Nokia 27% 22% 13% 10% 22%
Motorola 17% 7% 13% 20% 33%
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Dividend Payment=Dividends/Net Income
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 0% 0% 6% 29% 28%
Samsung 5% 6% 5% 0% 13%
Nokia 80% 0% 0% 0% 0%
Motorola 0% 13% 32% 28% 25%
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Credit- Rent
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 0.36% 0.29% 0.28% 0.31% 0.31%
Samsung 0.01% 0.01% 0.01% 0.00% 0.00%
Nokia 0.01% 0.01% 0.01% 0.01% 0.01%
Motorola 0.48% 0.66% 0.35% 0.43% 0.59%
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Credit- Lease
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
5%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 2.78% 2.61% 2.51% 0.29% 0.29%
Samsung 0.08% 0.09% 0.06% 0.05% 0.04%
Nokia 2.73% 2.84% 3.36% 2.18% 0.00%
Motorola 2.29% 2.18% 2.81% 4.14% 4.36%
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Credit- Purchase
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 2.67% 3.66% 4.71% 3.94% 4.13%
Samsung 16.10% 14.11% 12.68% 10.82% 9.49%
Nokia 1.74% 1.65% 1.54% 1.62% 1.48%
Motorola 0.09% 0.23% 0.65% 0.48% 0.45%
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Network Innovations (Software), Orion Network Systems, Styleware, NashobaSystems
1988 1989 1997 1999
Coral SoftwareXemplar Education and Raycer Graphics
NeXT and Power Computing Corporation
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NetSelector, Astarte-DVD Authoring Software, and SoundJam MP
2000 2001 2002 2005
Bluefish Labs, bluebuzz, Spruce Technologies, and PowerSchool
Schemasoft and FingerWorks
Nothing Real, Zayante, Silicon Grail Corp-Chalice, Propel Software, PrismoGraphics, and Emagic
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Silicon Color and Proximity
2006 2008 2009 2010
P.A. SemiiQuattro Wireless, Intrinsity, Siri, Poly9, Polar Rose, and IMSense
Placebase, Lala.com
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Chomp, Redmatica, AuthenTec, and Particle
SnappyLabs, Busrtly, Luxvue Technology, Spotsetter, Swell, BookLamp, Beats Electronics, and Press
C3 Techonoligies and Anobit
Novauris Technologies, WiFiSlam, Locationary, HopStop.com, PassifSemiconductor, Matcha, Embark, Algo, Cue, PrimeSense, Topsy, BroadMap, and Catch.com
Semetric and FoundationDB
2011 2012 2013 20152014
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Operations Systems- Degree of Integration
•
•
•
•
•
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Two large plants (Texas and Ireland)
1980 1990 1996 2004
Medium size plants in US
Many Foxconnfactories in China
Shift manufacturing overseas and reduced US plants
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Carrollton, Texas and Cork, Ireland
1980 1981 1983 1985
Singapore Plant
Closed Carrollton, Garden Grove and parts of the plant in Cork, Ireland
Fremont, CA
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Fountain, Colorado
1991 1992 2004
Elk Grove
Shut down last of US manufacturing line in Elk Grove. Most plants located in China
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Type of Equipment
General Purpose•
•
•
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Production Scheduling
•
•
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Inventory Turnover Ratio= COGS/Average Inventory
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 37.62 83.03 111.06 60.43 53.18
Samsung 7.00 7.47 7.57 7.71 8.85
Nokia 13.50 11.27 11.26 6.29 4.90
Motorola 9.27 4.33 8.49 8.61 7.04
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R&D Expenditure
0%
5%
10%
15%
20%
25%
30%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 2.73% 2.24% 2.16% 2.62% 3.30%
Samsung 5.88% 6.05% 22.53% 23.70% 25.67%
Nokia 13.81% 14.52% 20.00% 20.61% 19.55%
Motorola 15.61% 12.62% 13.36% 12.22% 11.58%
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Applied and basic research
1995
1997-2000Apple used only
applied research and focused on
their current products
2001-PresentApple uses both applied and
basic research
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Engineering Emphasis•
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Nature of Product Design•
•
•
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2007 iPhone 4.5 in. H, 2.4 in. W, .46 in. D, 3.5 in. screen
2009 iPhone 3GS Smear free screen,.1 oz. heavier
2008
iPhone 3GS Plastic polycarbonte housing,.02
in. higher, black and white case, glass frame
2010iPhone 4 Stainless steel body, metal band with
multiple mobile and data antennas flat back .11 in. thinner, 2 grams heavier
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2012iPhone 5 Anodized
aluminum body, .32 in. longer, m07 in. thinner, an
oz. ligher, larger screen
2011 iPhone 4S Access panel for SIM card
2013iPhone 5S available in silver, gold,
space gray, shorter by .03 in., more narrow by .02 in., .05 in. less thinner, .70 oz. lighter & 5C available in blue, yellow, pink, white both with 4 in. screens
2014iPhone 6 .54 in. longer, .33 in. wider, .03 in. more shallow, .60 oz. heavier & 6
Plus 1.32 in. longer, .73 in. more narrow, .01 in thicker 1.42 oz. heavier
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Brief Historical Review
• Timeline
• Starts in 1976• 70’s, 80’s, 90’s, 2000-2005, 2006 – Present
58
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Stock Performance
315.27382.54
593.65 558
118.81
831.41
1226.661290.27
1362.96
1175.78
9.74 5.8 3.29 8 8.068.33 46.49 54.63 65.75 65.59
1,186.601,246.91
1,416.34
1,806.55
2,065.78
2010 2011 2012 2013 2014
Pri
ce in
US
do
llars
Apple Samsung Nokia Motorola S&P
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Market Share
Apple3%
Samsung18%
Nokia29%
Motorola2%
Other Competitors48%
2010
Apple5%
Samsung18%
Nokia24%
Motorola2%
Other Competitors51%
2011
Apple7%
Samsung22%
Nokia19%
Motorola2%
Other Competitors50%
2012
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Apple8%
Samsung25%
Nokia14%
Motorola3%
Other Competitors50%
2013
Apple9%
Samsung17%
Nokia7%
Motorola5%
Other Competitors62%
2014
Market Share
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$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2010 2011 2012 2013 2014
Sale
s in
mill
ion
s o
f U
S d
olla
rs
Apple Samsung Nokia Motorola Other Competitors
Market Share
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Net Sales
$0
$50,000
$100,000
$150,000
$200,000
$250,000
2010 2011 2012 2013 2014
Ne
t sa
les
in m
illio
ns
($)
Apple Samsung Nokia Motorola
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Net Income
-$10,000
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2010 2011 2012 2013 2014
Ne
t In
com
e in
mill
ion
s ($
)
Apple Samsung Nokia Motorola
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Number of Units Produced
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 46,600 89,260 130,130 150,790 169,220
Samsung 281,070 313,900 384,630 444,440 317,200
Nokia 461,320 422,480 333,940 250,790 138,100
Motorola 38,550 40,270 33,920 62,100 92,700
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Dollar-profit-per-unit of units produced
$(0.05)
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
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Number of Employees
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
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Dollar-profit-per-employee
-$0.10
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
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ROE=Net profit after taxes/Shareholder’s Equity
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 29.32% 33.83% 35.30% 29.98% 35.42%
Samsung 19.90% 14.40% 21.40% 22.40% 10.80%
Nokia 9.34% -10.69% -40.11% -11.10% 7.73%
Motorola 6.13% 14.39% 20.78% 31.74% 40.63%
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ROA=Net profit after taxes/Total Assets
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 18.64% 22.28% 23.70% 17.89% 17.04%
Samsung 13.10% 9.50% 14.20% 15.40% 7.60%
Nokia 3.43% -4.11% -12.65% -2.93% 3.18%
Motorola 2.47% 5.86% 6.62% 8.96% 11.66%
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Gross Profit Margin=(Sales-Cost of Goods Sold)/Net Sales
0%
10%
20%
30%
40%
50%
60%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 39.38% 40.48% 43.87% 37.62% 38.59%
Samsung 33.64% 32.03% 37.02% 39.79% 37.79%
Nokia 30.20% 29.30% 36.10% 42.10% 43.73%
Motorola 35.77% 50.51% 49.99% 48.77% 48.29%
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Net Profit Margin=Net profit after taxes/Net Sales
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 28.19% 31.22% 35.30% 28.67% 28.72%
Samsung 11.20% 9.48% 14.44% 16.08% 12.14%
Nokia 4.90% -2.80% -5.30% 4.10% 10.67%
Motorola 4.09% 10.46% 14.44% 13.97% 22.01%
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Earnings Per Share=Net Profit after taxes-preferred stock dividends/Average number of common shares
-$1.00
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 2.16 3.95 6.31 5.68 6.45
Samsung 0.09 0.08 0.14 0.19 0.15
Nokia 0.27 -0.39 0.06 -0.009 0.14
Motorola 0.86 0.57 1.15 1.29 0.97
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Common Sized Income Statement - 2010
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Common Sized Income Statement - 2011
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Common Sized Income Statement - 2012
Apple Samsung Nokia Motorola
Net Sales 100% 100% 100% 100%
Cost of Sales (56.13%) (62.98%) (63.90%) (50.01%)
Gross Profit 43.87% 37.02% 36.10% 49.99%
S&A Expenses (6.42%) (22.58%) (8.90%) (22.57%)
R&D (2.16%) (22.53%) (20.00%) (13.36%)
Operating Profit 35.30% 14.44% (5.27%) 10.58%
Other income/expense, net 0.33% (0.01%) (8.03%) 14.12%
Income before taxes 35.63% 14.88% (7.66%) 13.97%
Provision for income taxes (8.96%) (3.02%) (1.97%) (3.87%)
Net income 26.67% 11.86% (9.62%) 10.13%
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Common Sized Income Statement - 2013
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Common Sized Income Statement - 2014
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Is the company’s current performance satisfactory? Is the company achieving its performance objectives?
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III. Examination of the Corporate Top Decision Makers
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Ratio of the Internal vs. External Directors
Internal : External
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Board Committee & Membership
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Audit Compensation
Audit & Com
pensation
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NominatingName Title
Andrea Jung Director, Chairman of Compensation Committee and Member of Nominating & Corporate Governance Committee
Robert Iger Independent Director, Chairman of Nominating & Corporate Governance Committee and Member of Audit & Finance Committee
Millard Drexier Director, Member of Nominating & Corporate Governance Committee andMember of Compensation Committee
FinanceName (Connections) Title
Robert Iger Independent Director, Chairman of Nominating & Corporate Governance Committee and Member of Audit & Finance Committee
Arthur Levinson Ph.D. Chairman, Member of Audit & Finance Committee and Member of Compensation Committee
Ronald Sugar Independent Director and Chairman of Audit & Finance Committee
Susan Wagner Director and Member of Audit & Finance Committee
Nominating &
Finance
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Corporate Governance
Name Title
Millard Drexier Director, Member of Nominating & Corporate Governance Committee and Member of Compensation Committee
Robert Iger Independent Director, Chairman of Nominating & Corporate Governance Committee and Member of Audit & Finance Committee
Andrea Jung Director, Chairman of Compensation Committee and Member of Nominating & Corporate Governance Committee
Corporate Governance
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Art Levinson
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Ronald Sugar
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Sue Wagner
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External Directors – 2014 Compensation
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External Directors – Relevant Education
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External Directors – Average Stock Ownership
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External Directors – Personal Profile
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Historical Review of Management Style
• Steve Jobs • Tim Cook•
•
•
•
•
•
•
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•
•
•
•
•
•
•
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Top Management Team’s Compensation
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Compensation Compared with Competitors
Apple Total Nokia Total Samsung Total
Timothy D. Cook | Chief Executive Officer
$9,222,638Stephen Elo, EVP Devices & Services, former President
and CEO$10,427,463 Oh-Hyun Kwoon, CEO $6,095,700
Luca Maestri | Senior Vice President and CFO
$14,002,801Risto Siilasmaa, Chairmen of
the Board of Directors, Interim CEO
$540,000 Boo-Keun Yoon, CEO $4,580,100
Peter Oppenheimer | Former SVP and CFO
$4,517,720Timo Ilhamuotila, EVP Chief
Financial Officer$3,636,124 Jong-Kyun Shin, CEO $5,591,700
Angela Ahrendts | SVP, Retail and Online Stores
$73,351,124Louise Pentland, EVP Chief
Legal Officer$2,440,042 Sang-Hoon Lee, Director $3,360,600
Eduardo H. Cue | SVP, Internet Software and Services
$24,445,739 Michael Halherr $2,352,97 Gee-Sung Choi, former CEO $3,573,000
Jeffery Williams | SVP, Operations $24,403,235 Jo Harlow, EVP Smart Devices $2,200,909Ju-Hwa Yoon, Former
Director$519,300
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Eddy Cue is Apple's senior vice president of Internet Software and Services, reporting to CEO Tim Cook. Eddy oversees Apple's industry-leading content stores including the iTunes Store, the revolutionary App Store and the iBooksStore, as well as Apple Pay, Siri, Maps, iAd, Apple's innovative iCloud services, and Apple’s productivity and creativity apps. Eddy's team has an excellent track record of building and strengthening online services to meet and exceed the high expectations of Apple's customers.
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Luca Maestri
Luca Maestri is Apple’s senior vice president and Chief Financial Officer reporting to CEO Tim Cook. As CFO, Luca oversees the accounting, business support, financial planning and analysis, treasury, M&A, investor relations, internal audit and tax functions at Apple. Luca joined Apple in 2013 as vice president of Finance and corporate controller, and has worked closely with Apple's senior leadership since his arrival.
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Production-per-employee= Units Produced/Total Employees
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 1.00 1.48 1.79 1.88 1.83
Samsung 0.82 0.85 0.91 1.11 0.97
Nokia 3.57 5.23 4.65 4.23 2.53
Motorola 0.76 1.75 1.54 2.96 6.18
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Receivables Turnover Ratio= Sales/Average Gross Receivables
0.00
5.00
10.00
15.00
20.00
25.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 14.71 19.90 19.20 14.22 11.96
Samsung 8.30 8.38 7.91 7.26 7.52
Nokia 5.46 5.24 4.74 3.01 3.55
Motorola 5.70 3.20 4.64 4.58 3.53
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Average Collection Period= 365/Receivables Turnover
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
2010 2011 2012 2013 2014
Day
s
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 24.82 18.34 19.01 25.66 30.51
Samsung 50.00 43.53 46.13 50.28 48.51
Nokia 66.86 69.64 77.00 121.37 102.72
Motorola 64.01 114.22 78.62 79.77 103.31
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Inventory Turnover Ratio= COGS/Average Inventory
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 37.62 83.03 111.06 60.43 53.18
Samsung 7.00 7.47 7.57 7.71 8.85
Nokia 13.50 11.27 11.26 6.29 4.90
Motorola 9.27 4.33 8.49 8.61 7.04
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Days of Inventory= 365/Inventory Turnover
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2010 2011 2012 2013 2014
Day
s
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 6.95 5.18 3.26 4.37 6.30
Samsung 50.10 48.88 48.22 47.33 41.25
Nokia 27.03 32.39 32.40 58.04 74.42
Motorola 39.38 84.39 43.00 42.40 51.88
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Fixed Asset Turnover= Sales/Fixed Assets
0.00
5.00
10.00
15.00
20.00
25.00
2010 2011 2012.00 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 16.89 17.26 13.48 10.67 9.82
Samsung 2.60 3.18 3.08 2.87 3.17
Nokia 22.55 20.80 18.57 12.73 13.54
Motorola 9.93 6.25 10.03 10.55 8.65
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Total Asset Turnover= Sales/Total Assets
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 1.06 1.13 1.07 0.89 0.83
Samsung 0.9 1.16 1.19 1.14 1.25
Nokia 1.13 1.03 0.91 0.46 0.53
Motorola 0.75 0.42 0.65 0.71 0.53
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Is the management effective?
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IV Examination of Internal Environment of the company
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•
•
•
•
Corporate Culture
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Corporate Structure
Matrix
Steve Jobs
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Corporate Structure
Matrix
Tim Cook
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Corporate Structure
•
•
•
•
•
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Core Competencies•
•
•
•
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Common Sized Balance Sheet 2010
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Common Sized Balance Sheet 2011
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Common Sized Balance Sheet 2012
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Common Sized Balance Sheet 2013
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Common Sized Balance Sheet 2014Apple Samsung Nokia Motorola
Cash and cash equivalents 5.97% 7.31% 12.00% 37.94%
Accounts Receivable, net 7.53% 10.72% 16.28% 13.52%
Inventories 0.91% 7.52% 6.05% 3.31%
Other Current Assets 4.23% 0.78% 4.33% 7.10%
Total Current Assets 29.56% 49.97% 65.16% 66.00%
Property, Plant, and Equipment 8.90% 35.10% 3.40% 5.27%
Goodwill 1.99% 0.00% 12.17% 3.67%
Intangible Assets 1.79% 2.08% 1.66% 0.00%
Other non-current Assets 1.62% 1.01% 0.37% 1.39%
Total Assets 100.00% 100.00% 100.00% 100.00%
Accounts payable 13.02% 3.43% 10.98% 5.18%
Accrued liabilities 7.96% 5.59% 17.24% 16.37%
Current portion of long-term debt 0.00% 0.77% 0.00% 0.04%
Other current liabilities 6.38% 0.14% 0.00% 0.00%
Total current liabilities 27.37% 22.57% 34.60% 21.59%
Long-term debt 12.50% 1.15% 12.23% 32.58%
Other non-current liabilities 10.71% 0.65% 10.43% 19.29%
Total liabilities 51.89% 27.05% 58.84% 73.46%
Preferred Stock 0.00% 0.05% 0.00% 0.00%
Common Stock 10.06% 0.34% 1.17% 0.02%
Retained Earnings 37.59% 73.57% 22.36% 32.72%
AOCI 0.47% 0.03% 0.00% (17.80%)
Total Equity 48.11% 72.95% 41.16% 26.54%
Total liabilities & Equity 100.00% 100.00% 100.00% 100.00%
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Debt to Equity Ratio= Total Debt/Total Equity
0%
20%
40%
60%
80%
100%
120%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 0.00% 0.00% 0.00% 13.73% 31.64%
Samsung 11.40% 13.19% 10.76% 96.57% 59.00%
Nokia 32.52% 38.24% 60.06% 99.00% 31.05%
Motorola 24.60% 29.11% 56.63% 66.71% 100.00%
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Times Interest Earned= Profit before taxes+Interest charges/Interest charges
-30
20
70
120
170
220
270
320
370
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 0.00 0.00 0.00 369.79 140.28
Samsung 34.26 27.64 108.80 121.14 192.39
Nokia 8.03 -5.05 -3.47 1.76 2.03
Motorola 4.06 6.59 6.76 5.81 -6.90
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Current Liabilities to Equity= Current Liabilities/Shareholder’s Equity
0%
20%
40%
60%
80%
100%
120%
140%
160%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 43.36% 36.51% 32.60% 35.34% 56.88%
Samsung 44.71% 39.43% 38.63% 34.21% 30.94%
Nokia 108.00% 125.00% 148.00% 142.00% 84.00%
Motorola 79.28% 72.34% 101.00% 87.29% 81.34%
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Debt-to-Asset Ratio=Total Debt/Total Assets
0%
5%
10%
15%
20%
25%
30%
35%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 0.00% 0.00% 0.00% 8.19% 15.22%
Samsung 8.92% 8.58% 7.22% 4.60% 4.30%
Nokia 13.49% 14.70% 18.51% 26.45% 12.78%
Motorola 10.57% 11.02% 14.69% 20.77% 32.62%
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Current Ratio= Current Assets/Current Liabilities
0.00
1.00
2.00
3.00
4.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 2.01 1.61 1.5 1.68 1.08
Samsung 1.54 1.61 1.86 2.16 2.21
Nokia 1.55 1.46 1.43 1.46 1.86
Motorola 1.97 2.30 2.22 2.18 3.06
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Quick Ratio= Current Assets-Inventory/Current Liabilities
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 1.72 1.35 1.24 1.40 0.82
Samsung 1.11 1.17 1.34 1.61 1.67
Nokia 1.13 1.04 1.06 1.34 1.53
Motorola 1.39 1.82 1.64 1.60 2.45
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Cash Ratio= Cash/Current Liabilities
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 1.24 0.93 0.76 0.93 0.4
Samsung 0.25 0.25 0.4 0.32 0.32
Nokia 0.11 0.11 0.26 0.39 0.35
Motorola 0.48 0.21 0.44 1.00 1.76
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Manufacturing/Operations Resources
•
•
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•
•
•
•
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Manufacturing/Operations Resources
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R&D Resources
•
•
•
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R&D Intensity=R&D/Sales
0%
2%
4%
6%
8%
10%
12%
14%
16%
2010 2011 2012 2013 2014
Apple Samsung Nokia Motorola
2010 2011 2012 2013 2014
Apple 2.73% 2.24% 2.16% 2.86% 3.30%
Samsung 5.81% 6.05% 6.14% 6.82% 7.87%
Nokia 3.63% 3.62% 3.72% 8.89% 2.78%
Motorola 13.61% 12.62% 12.60% 12.22% 11.58%
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Degree of Technological Competence•
•
•
•
Degree of Proficiency in Technology Transfer•
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Marketing Resources
•
•
•
•
•
•
•
•
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Marketing Resources
•
•
•
•
•
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Price •
•
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Marketing Resources
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•
•
•
Marketing Resources
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•
•
•
•
•
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Human Resources
![Page 142: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/142.jpg)
•
•
•
•
•
•
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Work Environment:
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Quality of Work Life
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Utilization of Autonomous Work Teams
![Page 144: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/144.jpg)
Information Technology Resources•
•
•
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![Page 145: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/145.jpg)
What are the major Strength & Weakness of the Company?
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Section V.
Task Environment/Industry Analysis
![Page 147: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/147.jpg)
Competitors
![Page 148: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/148.jpg)
•
•
•
•
•
•
•
Potential Entrants
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•
•
•
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Substitutes
![Page 150: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/150.jpg)
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Customers
![Page 151: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/151.jpg)
Suppliers
![Page 152: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/152.jpg)
•
•
Other Interest Groups
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Societal Environment Analysis
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•
•
•
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Socio-Cultural Forces
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•
•
Political/Legal Forces
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•
•
•
•
•
•
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Technological Forces
![Page 157: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/157.jpg)
Economic Forces•
•
•
•
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Economic Forces- Disposable Personal Income
![Page 159: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/159.jpg)
SWOT ANALYSIS
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•
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•
•
•
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SWOT ANALYSIS
•
•
•
•
•
•
•
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Short Term & Long Term Performance
![Page 162: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/162.jpg)
Short Term
•
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•
•
![Page 163: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/163.jpg)
Long Term
•
•
•
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![Page 164: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/164.jpg)
VI. New Plan
![Page 165: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/165.jpg)
Plan 1: Increase global market share in China
![Page 166: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/166.jpg)
Plan 1: Increase global market share in China
![Page 167: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/167.jpg)
•
•
•
Plan 1: Increase global market share in China
![Page 168: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/168.jpg)
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Plan 1: Increase global market share in China
![Page 169: Apple Inc. Management Case Study](https://reader031.fdocuments.us/reader031/viewer/2022012319/55a65ddd1a28ab45798b4845/html5/thumbnails/169.jpg)
Thank you