Apple Computer 2005

Apple Computer – 2005

Forest David: Francis Marion University

A. Case Abstract

Apple Computer, Inc. designs, manufactures, and markets personal computers (PCs) and related software, peripherals, and personal computing and communicating solutions. Apple is a member of the S&P 500 and the NASDAQ 100. Its products include the Macintosh line of desktop and notebook computers, the Mac OS X operating system, the iPod digital music player, and a portfolio of software and peripheral products for education, creative, consumer, and business customers. Apple sells its products through its online stores, direct sales force, third-party wholesalers and resellers, and its own retail stores. As of September 24, 2005, Apple operated 116 stores in the United States, and 8 additional stores in Canada, Japan, and the UK. In addition to its own hardware and software products, Apple’s retail stores carry a variety of third-party hardware and software products. Revenues for the period ending September 2005 were $13.9 billion, up 69 percent from September 2004 and up 124 percent from September 2003.

B. Vision Statement (proposed)

To become the global leader in computer and digital music products.

C. Mission Statement (actual)

Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services.

(Proposed)

The Apple commitment to excellence is its mission to provide computers and service (2) for people (1) that meet the highest standards of value and reliability. Apple is one of the leaders in the computer industry and produces some of the best-selling computers and digital music products in the world (3). Apple provides the highest level of quality and value for our customers (7). Those are timeless fundamentals. We also apply innovative technology to our core business (4) to make our products irresistible to customers, beneficial to society, and profitable to our company (5). We strive to provide additional opportunities for growth and enrichment of company personnel while maintaining a work environment for all employees (9) that encourages personal commitment and participation in support of achieving excellence. We are committed to being a good corporate citizen, and being openly honest with all of our stakeholders (6). We support activities that enable people to improve their lives and reinforce their commitment to society (8).

1. Customer

2. Products or services

3. Markets

4. Technology

5. Concern for survival, profitability, growth

6. Philosophy

7. Self-concept

8. Concern for public image

9. Concern for employees

D. External Audit

Opportunities

1. Increase in worms and viruses on PCs.

2. Large population (Gen X & Y) which are extremely individualistic and name brand conscious.

3. Government crackdown on pirating music off the Internet.

4. Much of the world is still without computers.

5. People enjoy small electronic gadgets.

Threats

1. Companies not seeing Apple as compatible with their software.

2. Dell and HP are major competitors.

3. Increasing competition with music downloads.

4. Competition