Term paper









BUAD 4980

STRATEGIC MANAGEMENT

STRATEGIC ANALYSIS OF Apple Inc.







1. INTRODUCTION

In four to six sentences, introduce your paper.

2. STRATEGY ANALYSIS

Have a transition paragraph (three to five sentences).

2.1. SWOT analysis

Table 1 General Motors’ internal analysis

Strengths

Weaknesses

-

-

-

-

Directions for Table 1: Inside Table 1, do the following (*see examples below):

- Strengths: In one sentence each identify two strengths from either tangible resources, or intangible resources, or capabilities

- Weaknesses: In one sentence each identify two weaknesses from either tangible resources, intangible resources, or capabilities

*Examples for Table 1:

Strengths

Weaknesses

- Intangible resources: General Motors has an established brand recognition as it is known worldwide

-

- Capabilities: With more than 90 models of cars, managing General Motors requires complex coordination and control mechanisms that result in high bureaucratic costs

-

Table 2 General Motors’ external analysis

Opportunities

Threats

- Industry environment:

- General environment:

- Industry environment:

- General environment:

Directions for Table 2: Inside Table 2, do the following (*see examples below):

- Opportunities: In one sentence each identify two opportunities (one in the industry/competitive environment, and one in the general environment)

- Threats: In one sentence each identify two threats (one in the industry environment, and one in the general environment)

*Examples for Table 2:

Opportunities

Threats

- Industry environment:

Threat of entry: The threat of entry is low as potential competitors will be kept out of the automobile industry because of high entry barriers such as significant capital requirements

- General environment:

- Industry environment:

- General environment:

Socio-cultural forces: Increasing consumer demands for environmentally friendly cars are forcing automakers to invest heavily in green technologies

Based on specifics in Table 1 and Table 2, discuss (in five to seven sentences) your company’s SWOT analysis.

2.2. Value chain analysis

Table 3 General Motors’ value chain analysis

Items

Answers

General Motors’ core business

Assembly of automobiles

One model in the automobile business

Corvette

The value Corvette is seeking to create

Differentiation

Explanation of why Corvette seeks differentiation

Buyers are looking for a high performing sports vehicle with clearly identifiable features that set Corvette apart from competing sports cars. For instance, Corvette has five distinct and selectable driver modes that electronically calibrate up to 12 performance variables to adapt to any road. In addition, the price range ($66,415 to $86,860) illustrates the fact that Corvette buyers value, not low cost, but a top of the line and highly differentiated sports model

Two activities General Motors performs along automobile assembly’s value chain

- GM’s Powertrain division designs and makes engines and transmissions for General Motors’ vehicles

- General Motors assembles its automobiles

Two activities along automobile assembly’s value chain General Motors has outsourced

- General Motors buys tires from tire manufacturers

- General Motors relies on independents dealers to sell its motor vehicles

NOTE: I have completed Table 3 using General Motors for your reference. Provide specifics related to your company.

2.3. Performance analysis

NOTE: Please conduct only the financial analysis of your firm based on Table 4.

Table 4 General Motors’ financial data

Years

Sales

Net Income

ROI (%)

$millions

Growth (%)

$millions

Growth (%)

2006

N/A

N/A

2007

2008

2009

2010

2011

2012

2013

2014

2015

Directions for Table 4:

Inside Table 4, provide your company’s financial data for the latest ten years (you can use your company’s sales, or your chosen brand or model’s sales. In addition, in the last column, you are free to use ROI or any other ratio. Please make sure that your Table 4 has the same headings and sub-headings as above. Also, note that growth rate for 2006 has N/A (not applicable). This is because Table 4 has no data for 2005.

Right after Table 4, interpret what the data tells you (five to seven sentences).

2.4. Competitive advantage analysis*

Using information in Table 1 and/or Table 2 and/or Table 3 and/or Table 4, and any other information you may have, discuss whether your company has achieved a competitive advantage for the model you are focusing on (five to ten sentences).

* Example for General Motors:

Table 3 shows that Corvette was seeking differentiation, because buyers of sports cars were looking for high performing vehicles with clearly identifiable features. Based on U.S. sales, buyers preferred Corvette to any other sports car. The number of Corvette sold went from 12,624 in 2010 to 33,329 in 2015, representing an increase of 164% in just five years. When compared to competing sports cars, Corvette was well ahead. Whereas sports car buyers purchased 33,329 Corvette in 2015, the closest competitors, Subaru Impreza, Volkswagen GTI, and Lexus RC, sold respectively 28,164, 19,337, and 11,791. Clearly therefore, Corvette has achieved a competitive advantage, as it was the most sold sports car in the United States (i.e. above-average ales in the sports car segment).

3. STRATEGY FORMULATION

Have a transition paragraph (three to five sentences).

3.1. Corporate strategy

Table 5 General Motors’ corporate strategy

Name of the corporate strategy

Explanation (provide specifics)*

* Explanation: Explain in three to five sentences.

3.2. Generic strategy

Table 6 General Motors’ generic strategy

Name of the generic strategy (brand/model)

Explanation (provide specifics)*

* Explanation: Explain in three to five sentences

3.3. International strategies:

Table 7 General Motors’ international strategies

Name of one international entry strategy

Explanation of entry strategy*

Name of one international competitive strategy

Explanation of competitive strategy*

* Explanation in three to five sentences

Based on Tables 5, 6, and 7, assess your company’s strategies (five to seven sentences).

4. STRATEGY IMPLEMENTATION

Have a transition paragraph (three to five sentences).

4.1. Organizational structure

Table 8 General Motors’ organizational structure

Type of vertical structure

Explanation of vertical structure*

Type of horizontal structure

Explanation of horizontal structure*

* Explanation in three to five sentences

4.2. Corporate governance

Table 9 General Motors’ corporate governance

Corporate governance problem

Governance mechanism

Directions for Table 9: Inside Table 9, do the following:

- Corporate governance problem: In one sentence, state whether or not your company was facing a corporate governance problem. Then in three to five sentences, explain your answer.

- Governance mechanism: In one sentence, give the name of one governance mechanism your company is using to minimize the problem. Then in three to five sentences, explain your answer by providing specifics.

4.3. Strategic leadership

Table 10 General Motors’ strategic leadership

Name of one role assumed by strategic leaders

Explanation*

* Explanation: In five to seven sentences, explain your answer with specifics

Based on Tables 8, 9 and 10, discuss (five to ten sentences) whether your company has effectively implemented its strategies








ADDITIONAL NOTES ABOUT THE PAPER:

To help you write a good paper, I suggest that you do the following:

1. Open this file, print it (for you to have the instructions)

2. On cover page, write your company name and your team members’ names

3. Keep all headings, sub-headings, and all tables. But delete everything else (all instructions and these additional notes). Then save the file.

4. Type everything, and use Time New Roman, with font size 12 (as in this file)

5. Double-space the paper (however single-space inside tables)

6. Pay attention to spelling and grammar, and always have transition paragraphs where indicated

7. Your paper must have page numbers (as in this file)

8. Tables: Please read carefully the instructions for your tables:

Use tables exactly as they are presented above

Simply key in your information/data as required in the instructions

To avoid very long tables, provide specifics in few sentences as indicated

Be aware that one table cannot stretch over two pages, so format your paper accordingly

To avoid long tables, always single-space inside tables (as in this file)

9. When your paper is done, staple it

10. Your paper MUST be typed on one side of the paper

11. Each team writes one paper. Turn in only ONE HARD copy on due date (or before)

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