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Question 1

H

ow well has Steve Jobs done as Apple s CEO? Has he done a good job of performing the five tasks of strategic management discussed in Chapter 2? Why or Why no? What grade would you give him? Phase 5 Phase 4 Phase 3 Phase 1 Phase 2 Developing A strategic vision

Crafting Strategy to achieve Objectives And vision Monitoring Developments, Evaluating Performance, and Making corrctive adjustments

Setting Objectives

Imprementing And executing The strategy

Revise as needed in light of actual performance, changing Conditions, new opportunities, and new ideas

Components of Apple s Strategy

Efforts to build competitive advantage : Lower costs, different or better product, niche market Planned, proactive moves to outcompete rivals (better product Design, added features, improved Quality or service, better ecommerce capabilities, wider product lines, and so on Moves to respond and react to changing conditions in the macroenvironment and in industry and competitive conditions

Key Functional Strategies

- R&D, technology, engineering strategy -Supply chain management strategy -Manufacturing strategy -Sales,marketing,promotion,and distribution Strategies -Human resources strategy -Financial strategy

Scope of geographic coverage (local, reginal, multinational, or global)

Business Strategy

Collaborative partnerships and strategic alliances with others

Question 3

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Does it make good strategic sense for Apple to be a competitor in the computer, digital music player, and mobile phone industries?

± ± Used to be just in the personal computer and software industry. Utilized its strengths and expanded its business to the entertainment industry.

‡ ‡

Starting from digital music players (iPod) and online music service (iTunes) ~ 2001. And to mobile phones (iPhone) ~ 2007.

Are the value chain activities that Apple performs in computers, digital music players, and mobile phones very similar and compatible or are there very important differences from product to product? Which of the three products lines computers, digital music players, or mobile phones do you think is most important to Apple s future growth and profitability? Why?

The marketplace trend seems to be destroying all the boundaries of each industry.

More than just a digital music player.

More enhanced tool for full-motion videos and data storing.

More than just a mobile phone.

Taking the role as a digital camera, a carry-on PC for memory storing and internet, and an audio device. The value chain activities are not much differences from product to product. Instead, Apple has been able to command a premium in the market and gain above average returns from utilizing the similar and compatible of its value chain activities across the products. Competitive advantages, especially in its mobile phones products. The most important industries for Apple s future growth and profitability.

Question 4

‡ In which industry computers or digital music players is competition more intense?

± Computer industry is seem to be more intense for Apple as it can gain only 8.5% of the total market shares.

‡ Dell Inc. (23.4%) ‡ Hewlett-Packard (16.8%)

± Apple is used to be just in the computers and software industry.

‡ Expanded its business to the digital music players (iPod) industry.

± Occupying 71% of the total market shares. » SanDisk (11%) » Microsoft (4%) » Creative (2%) ± Contributed a significant revenue to Apple Inc

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Question 5 (1/2)

‡ What does a competitive strength assessment reveal about Apple, as compared to the leaders in the personal computer industry?

± ± ± ± Design and innovation oriented. Greater horizontal and vertical integration. R&D oriented. Everything ready device.

‡ Use