Apple Case

Apple Inc.

Apple Inc. is the biggest technology organization in the world and the second biggest organization by market capitalization. It has an online store and over 200 retail stores in eight different countries. Steve Wozniak, Steve Jobs and Ronald Wayne founded the company. Wozniak was the computer designer, Jobs was the marketing person and Ronald Wayne was like the publicist. They created their first computer the Apple I in April 1976. Apple Inc. is responsible for designing and manufacturing some of today's popular computer hardware, software and other electronic devices. They have for main focuses they are personal computers and laptops, music, video and sound, wireless network and accessories. With the success of the iPod, iPhone and iPad Apple Inc. has become a force to be reckon with.

Vision, Mission & Social Responsibility

Apple's vision is to have an Apple computer on every desk. They also want to be the global leader in the electronic industry. Even though Apple employees come up with a lot of different projects, Apple rather focus on the few projects that are truly important to the company's success.

"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad." (Apple Inc., 2013)

"Apple is committed to ensuring the highest standards of social responsibility wherever our products are made." (Klein, 2011) Apple treats their workers with dignity and respect. They provide a safe work environment for their employees. Apple uses responsible environmentally manufacturing processes.

As a company Apple has lived up to its vision statement. But the mission statement only has descriptions of their products and services. I feel their mission statement does not tell the customer or employee anything. An effective mission statement has to include nine characteristics: the function of the company, target customer, target region, values, technology, employees, strategic positioning, financial objectives, and image. The purpose of a mission statement is to explain a company's existence and long-term goals. The new CEO of Apple Timothy Cook has proposed a new mission statement that I think will address the nine characteristics of an effective mission statement.

Global and Domestic

Apple sells products world wide their global strategy is to have a standardized product. The power source is the only modification made due to different countries power voltage. The design and engineering of Apple products are developed in the U.S. The manufacturing of their products is done in China because of the cheaper labor cost. Apple also claims it is dealing with China because China has a big population and they have a stable economy.

Apple Inc. headquarters is located in California. But none of Apple's cash is managed in California due to California's corporate tax of 8.84%. Instead their cash is managed in Nevada by a subsidiary called Braeburn Capital because Nevada does not have a corporate tax. Braeburn Capital was created by Apple Inc. in order to manage their assets and avoid certain taxes from other U.S. states. "At the same time that Apple is avoiding California taxes by managing its cash in Nevada, it is getting tax credits from California for conducting "research and development" in California." (Yarow, 2013)

Apple Inc. has an international headquarters, which is located in Cork, Ireland. Apple states they have 4,000 employees there that are responsible for selling products in Europe, the Middle East, Africa, India, Asia and the Pacific. "Apple says 61% of its sales come from overseas, which is why two-thirds of its $144.7 billion in cash and equivalents is parked overseas, cash which supports growth, including things like acquisitions or opening new stores." (MacDonald, 2013) The U.S. Senate is blaming Apple for using this headquarters as a shell company in order to get out of paying certain taxes in the U.S.

I strongly disagree with Apple's business practice I think they are unethical. They are a very greedy company. It seems like it is all about making money. As a top company in the U.S. they are consider a role model and very influential company. Apple Inc. should be setting the example for others to follow. I feel they can help the unemployment rate by having some of their products manufactured in the U.S. They are a very profitable company that does not need to find loopholes to get out of paying taxes. This could be prevented if the tax laws were changed.

Apple's new CEO Timothy Cook says he is "promoting a $100 million investment in domestic manufacturing, where the company will begin producing a new version of a current Mac product later this year. Cook also noted that not only will the final product be manufactured in the US, but so will many of its components." (Hutchinson, 2013) Arizona, Texas, Illinois, Florida and Kentucky are the five states claiming they will be manufacturing parts and will have assembly locations. Cook says Apple Inc. has paid all their taxes and the company does not rely on tax gimmicks in order to get out of paying taxes.

Inside Apple Inc.

The best way to understand Apple is by going through their strengths, weakness, opportunities, and threats. Apple is one of the most recognized companies in the world. Apple is also one of the most innovative companies in technology. Apple has very loyal customers who cannot live without owning an Apple product. The "company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. The company has no debt and is not directly affected by interest rates or credit markets." (Jurevicius, 2013) Apple has a valuable brand with a high reputation in the technology world.

I think the biggest weakness that Apple has is their products are very expensive especially the personal computers and laptops. Apple is not the only one making computers so consumers have other cheaper options they can choose from. Apple's operating system is not compatible with different programs unlike Microsoft. Apple is also having some issues in the leadership department with Timothy Cook as the new CEO. The retail chief and iOS chief have both left the company now Apple has to replace them, which could be a negative impact.

Apple's opportunities can be endless depending on how they explore the future