The Process of Strategic Planning and Formulating Strategy @Apple

Questions: Prepare a report addressing the following tasks, answer all questions and relate your answers to Apple wherever possible:Task 1 The Process of Strategic Planning1.1. Explain the concept of strategy, vision, mission, goals, objectives and core competencies.1.2. Review the issues involved in strategic planning.1.3. Explain different planning techniques that organisations can useTask 2 Formulating Strategy2.1. Produce an internal organisational audit of Apple evaluating their strengths and weaknesses2.2. Carry out an industry analysis of Apple using Porters 5 Forces framework, and conduct and environmental analysis of its macro environment using PESTEL model, clearly identifying Opportunities and threats present in the external environment.2.3. Explain the significance/importance of stakeholder analysis.Task 3 Approaches to Strategy Evaluation and Selection3.1. Analyse possible alternative future strategies of Apple relating to substantive growth (horizontal and vertical integration, re lated and unrelated diversification), limited growth (do nothing, strategies described in Ansoffs Matrix market penetration, market development, product development) and retrenchment. 3.2. Select an appropriate strategy Apple can pursue for its future growth.Task 4 Strategy Implementation4.1. Compare the roles and responsibilities of the different levels of strategy in implementing the strategy adopted in 3.2. 4.2. Evaluate what resources will be required to implement Apples chosen strategy. 4.3. Discuss targets and timescales to monitor the successful achievement of the adopted strategy for Apple. Answers: Introduction Apple is a multinational company which is situated in America. Headquarter of Apple Inc. is in Cupertino, California. Apple Inc. manufactures and designs customer computer software and electronics products. This company is acknowledged for hardware products it comprises iPod media player, the iPhone, the Macintosh computers and Apple smartwatch. Software of Apple companies comprises of the media browser of iTunes, creativity software Mac OS X operating system, , the I Life suite of multimedia and the Work suite of productivity software, Final Cut Studio, a suite of professional audio and film-industry software products as well as Logic Studio, a suite of audio tools. Apple Company is operated in more than 250 advertising stores in 9 nations and a virtual store where both software as well as software products are traded. This company is recognized since 1st April, 1976 in Cupertino, California and this is amalgamated on 3rd January, 1977. Since First 30 years, Apple Company was entitl ed as Apple Computer, Inc. but released the term "Computer" on 9th January, 2007 to replicate the corporation's ongoing development into the customer electronics marketplace in toting to its old-fashioned focus on private computers. It has around 35,000 employees globally and had global yearly trades of US$32.48 billion in its financial year termination on 29th September, 2008. Intended for reasons as numerous as its viewpoint of widespread aesthetic strategy to its unique advertising promotions, it has recognized a distinctive character in the industry of consumer electronics. It also comprises a consumer base i.e. enthusiastic to the corporation and its product and brand, mostly in the U.S. Fortune magazine entitled Apple the further most esteemed company in the U.S. in 2008 and in the nation in 2009. Task 1 1.1 Concept of Strategy: Strategy refers it is the route and scope of a business over the long-standing that accomplish benefits for the business through its design of wherewithal contained by a challenging surroundings, to meet the requirement of marketplace and to execute stakeholder expectations (Grunig, Kuhn and Kuhn, 2005);(McKean, 2009). Roles of strategy: There is lots of strategy under a business or an organization. Agenda for operational arrangement: It provides the agenda for plans through guiding operating assessment and frequently predefining them. If planning is develop cautiously and understood correctly by managers, they make available more reliable structure for operational arrangement. If the trustworthiness exists and functioned, there would be exploitation of managerial possessions in those parts where they get better use (Harding and Long, 2006). It explained these parts both in terminology of geographical as well as customers area (Boyle and Fleming, 2000). Transparency in direction of performance: Strategies mainly focus on route of performance by stating what performances are to be accepted for attaining organizational objectives. They formulate the managerial objectives more understandable and exact (Mooradian, Matzler and Ring, 2012). Enhance organizational effectiveness: It ensures organizational helpfulness in different ways. Effectiveness means that the business is capable to attain its goal within the known resources. As a result, it is not essential that assets are situating to the most excellent of their competence however they are set in a manner which makes certain their maximum involvement to organizational intentions. Persons satisfaction: They contribute towards business efficiency by providing pleasure to the workers of the business. Vision: it is denoted as dream. Vision summarizes what the association desires to be or else how vision needs the world or human race in which vision functions to be. Vision is a long-standing view and focus on the future opportunity. The vision statement of Apple is that the company believes that they are the face of the earth to make quality products with constant focus on innovation. They believe in simplicity and not complexity. They identify the need of owning and controlling the complexity in technologies behind their products, and take part in only those areas where the company can make a meaningful contribution. They believe in rejecting thousands of projects offered to focus only on some which is valuable for the company. They further believe in strong collaboration and cross pollination within their group, which would help them to innovate in a unique way. The company would not settle for any standard less than excellence within every group of the company and they would res ort to self-honesty admit if they have gone wrong and have the courage to correct it. These values are so rooted in the employees of Apple that they would perform extremely well regardless of who does what. Mission: It describes the original intention of an association or a venture, briefly describing why it stays lively and what mission does to attain is the vision. The mission statement of Apple includes the following: To produce products which are high in quality, low in costs and are easy to use and incorporates high level of technology. This high technology does is not meant to target non computer users. The company is devoted to delivering high degree of social responsibility in all their endeavors. The companies engaged with Apple in doing business must ensure working conditions which are safe, must treat all employees fairly, and use manufacturing process which is environment friendly to make Apples product. Goal: It gives a hint of where a corporation is headed. It is associated with the corporations vision mission and strategies. The goal of Apple Company includes the following: Increase the existing revenue of the company by meeting its new sales target. Increase in profitability of the business by reduction in product costs. Enhance customer satisfaction by increasing the customer service (like onsite customer visits, reduction in customers hold time. Support the larger community getting involved in charitable events. Foster a strong work culture for the employees. Build products that are remarkable and incredible. Objectives: It means organization have to achieve such target to build its strategy be successful. The CEO of Apple Inc, Steve Jobs, during the launch of iPad 2 made an outstanding statement which was that it is the DNA of Apple that just good technology is not sufficient, it is technology being married with generous arts which is married to humanities which it-turn yields a result that would make their hearts sing, and this is most true the post PC devices created by Apple. The objective that was embedded in this statement was merging of skills of engineers with those of artists, psychologist and musicians to make a graceful and well designed product. In brief, the objective of Apple is to create best product s and services within restricted timeframes, at reduced costs that would ensure great value to their customers and the shareholders. This objective is not just assigned to the company as a whole but to the individual employees of Apple as well. Core competencies: It is the collective acquaintance as well as technical capacities so as to allow a company to be ready for action in the market. The core competencies of Apple are its specific skills and capabilities that have been acquired over time. These are the software based innovative technology and designs which gives uniqueness to Apples product and builds competitive advantage for them over the competitors. 1.2. Issues involved in strategic planning Planning issues: An association can have problem or troubles with strategic arrangement procedure. They can have troubles facing an association that the considered planning procedure can facilitate the supervisor to recognize and address (Heath and Palenchar, 2009). Issues faced in strategic planning: Strategic planning faces confliction between the staff and the board. Sometimes it fails to coherent a value suggestion and presumes that everybody outside the business like it and appreciates its value (Kelly, Kelly and Kelly, 2006). Issues faces by an organization are that it focuses merely on program. They believe that the funds will somehow trail (Dawson, Larke and Mukoyama, 2006). 1.3 Different planning techniques BCG MATRIX: is a framework is shaped by Boston Consulting Group to discover the strategic point of company brand assortment and its prospective. This classifies big business assortment into 4 types which is based on the business growth. Relative Market Share: This is used to assess the business portfolio. If relative market share is high it means return in cash is high. Market Growth Rate: it means earning is high when market growth rate is high. It eats lots of hard cash. Four quadrants of BCG matrix explained as: Dog: it has low market share as well as low market growth rate. Investors of this stage are not worth spending in as they make small cash return (Spender, n.d.). The market share of Apple in the developed countries is high. The growth rate of the company in the market is high. In the developing nations, the market share of Apple is low. The market is captured by the large Asian companies like Samsung and other organizations. Cash Cow: In this stage the market growth rate is low but the relative market share is high. It consumes more cash and invests it into stars to provide support to them. It is known as cash generator. The growth rate of the market of Apple is high. The market share of the company is high but it has to get hold of the Asian market so that it can compete with the other large organizations. Star: it has high relative share as well as market growth rate. It is also known as cash users and generator as well. This applicable for Apple in the UK and the US market. However the high market share and high rate of growth of Apple is not applicable for Asian countries. The company has to revise its product and pricing strategies for the Asian market. Question Mark: they have low market share in growing market. They consume too much cash and incur lose (Strategic Planning Techniques and methods, 2015). Apple does not belong to this stage. It has already established itself in the market and has high market share in the UK and US market. Space: It is known as strategic position and action evaluation matrix. It is also used to evaluate the strategic planning (Differentiateyourbusiness.co.uk, 2015). There are four important issues which affect the internal and external issue: External: Internal Environmental Finacial strength Industry Attratctiveness Competitive advantage Financial strength is required to reimburse the environmental unsteadiness. The more complicated the future atmosphere is notion to be; the further vital it is have to well-built financials. Both competitive advantage and industry attractiveness are known for the substitute sources of superior profit. Task 2: Formulation of strategy 2.1. Internal audit of the Apple Strengths: Brand is the main strength of Apple. Product development: apple does not discover in the marketplace, though apple products position high values for the market. Design and efficacy: lustrous but not thick. Apple iPhone has hardly any buttons but it seems to be nice in hand. Products can be use easily, almost instinctive. Apple company is very clever and obtain advantages of individuals annoyance with other hardware Weakness: Prices are very high relative to other hardware. Apple CEO explained as an organized freak and difficult. When Steve jobs dies, Apple will take ruthless blow. When Steve jobs health was in the reports, his slyness smashed the companys reputation (Vank, Mikol and vkov, 2012). Market share is decreases because company are not friendly with shareholders. Flexibility in strategy is also the factor of weaknesses. 2.2. Opportunities and threats of apple Opportunities: There is growth in the market for Smartphone and tablet. Apple has strong mobile advertising market growth Apple has trustworthy customers base. It has increased away from the Mac-heads in the year 1990S with the iPhone to iPod. Apple TV new version also took advantages in todays extremely developed web. Apple will obtain the patents by acquisition from other company. Threats: Competition is the major threat for the Apple High-priced product would be the main threat for the Apple. Apple valued itself out of the individual computer promote this is the problem. Changes in technology rapidly are the main threat of the Apple. Samsung is also doing well in the market and capture the market so it would be the threat for the Apple. This company is shifting into Apple's Smartphone space via operating system. Apple has broadcasted that it will shifting into the TV space. There eare sound funded so any fight among them could be ugly and long. Pestel Model: It includes political analysis, economic analysis, social analysis, technological forces, economic and legal forces. Research and development section of Apple is accountable to examine the 4 forces and recommend action arrangement for the expectations. Political forces, government and legal forces: Some of the countries are developed and some are under developed. Each country has own rules and regulation, and tax rates. Apple properly sticks towards their rules if Apple wishes to do trade in individuals countries. If Apple will not stay with changing government performance, Apple will be in difficult situation to sell the products. And in brutal cases of Apple products might be banned. The political factors do not hinder the business of Apple. Apple has already established itself in the market. The Government policies favor the business policies of Apple. Thus the political climate is favorable for Apple. The tax regulations for Apple are similar for other companies in UK. Economic Factors: Each and every economic feature has a collision on the function of worldwide companies keen to do trade in a nation. It include present economic situation, deflation and inflation, rate of interest, level of unemployment, trend of stock exchange, credit terms etc. business of Apple exaggerated by these reasons negatively/positively. The economic factors are favorable for UK. UK is a developed country and it offers enough growth opportunities for business. The GDP of the country is stable and the inflation rate of the country is favorable for the business. The business opportunities in the country are favorable for growth and expansion of Apple in UK. Social Factor It includes preference of consumer, perception about the brands; income groups etc. social factors said that is relate d with the common living patterns in the country or economy. Its products are afraid, inhabitants everyone over the planet are well conscious of its image of brands. UK is a developed nation. The living pattern in the society is high. The purchasing power of the consumers in the country is high. This has resulted in the increase in sales of Apple in UK. The market share of the mobile phones is highest in UK. This is a result of the high purchasing power of the consumers of UK. This has resulted in the increase in market share of Apple in UK. Technological Forces: Technology can be outdated or archaic overnight. This product is the market leader of the innovative ideas. While, if ignore continuously to bring modern products, there place for the innovative product would be snatched by the market leader. UK is a developed country. The technology in the country is advanced and it is constantly upgrading itself. This has resulted in the growth of Apple in UK. It has been constantly upgrading itself with the growth in the technology. Environmental factor: The United Kingdom is a tough contestant in the formation of overall strategies, mainly with admiration to conformities dealing with the atmosphere, sustainable energy and emission reduction source. On the other hand, the UK is called as high level of air pollution. Employment rate also affect the Apple products in the market and in the economy. Money rates also influence the market and economy as well. Unemployment rates and sometimes currency exchange rates also affect the whole economy and when economy will affected by these factors gradually decrease the market force of Apple products. There is rising awareness in UK regarding the adverse environmental impact of the various effluents released from the industries. There are various measures that are taken to reduce the environmental impact. Apple is aware of the rising environmental impact and the adverse impact on the environment and this can be reduced by the various measures and policies to reduce the environmental degradation. Legal: Every country has own legal system, United kingdom legal system which is classified, apparent and competent, and labors are being exercised to compose the procedure in the magistrates simpler and additional well-organized and apparent. The governmental system favors an elevated level of liberty in business, first and foremost to enable shareholder trust and self-assurance. These are the effective enforcement of the commandment. Health and safety enforcement law is also important for the products factors. It has been a member in a variety of legal proceeding as well as claims since Apple began operation. It has been in a quantity of cases with cast list like Samsung, Nokia, HTC, etc. In the year 2009 Nokia Corporation sued Apple for Apples infringement of NOKIAs patents which is related to wireless technology. The legal policies are favorable for Apple. The legal policies in UK are favorable for the various business activities in UK. The legal policies in the country favor the technological development in the country. This has resulted in the business expansion of Apple and it is able to extend itself with the increase in market share. Michael Porters Five Forces analysis The Five Force Model states that there exists five essential forces which helps in the determination of the competitive power of a business. These are highlighted below. An analysis of the competitive position of Apple using the five force model has been done below. Supplier power: Here Apple needs to determine how easily its suppliers can drive up prices. If the product that they are supplying is unique and has no substitute then the suppliers are more powerful. More number of alternate suppliers can increase the power of Apple. Buyer power: If the numbers of buyers are many and the alternate options available to the then the buying power of the buyer increases. Apple has several buyers as well as several competitors. But its quality supercede that of its competitors, hence, this enhances the power of Apple in this area. Threat of substitution: if the customers are able to find cheaper substitutes for Apples products then it will be a big threat for Apple. Hence, it must always aim in creating unique products. Threat of new entry: if new companies can easily enter the market i.e., the threat of new entry is low, then it will reduce the power of Apple. However, this is not true for manufacturing of IT products. Competitive rivalry: Despite having many competitors, Apple has a quality standard which is better that its competitors; it implies that its power is high in this area (Bijapurkar, 2011). 2.3. Importance of stake holder analysis Definition of stakeholders Stakeholder Analysis is the method of identifying the important people associated with the business and find ways to win over them. A stakeholder planning is then done to build an appropriate plan to succeed. First of all the stakeholders of the business bust be identified, from within and outside the organization. After identifying them, they should be prioritized in the order of importance. Not every stakeholder is important to the business, some are definitely more important and others less. The important stakeholders are the ones who have more power and interest in the business and should always be kept satisfied. The business must always be in close contact with them and share important information. It is these stakeholders who have important influence of the end result of the business. So they can be of great help to the business whenever required (Blythe, 2006). Significance of the stakeholder analysis The opinions of the powerful stakeholders in the business will help the corporation to shape their plan of action at an early stage. Not only will the opinions support the business it can also help in improving the quality of the end product. Frequent communication with the stakeholders regarding the business will make them understand the business better and ensure their support whenever required. It will help business to identify what is expected from them and the process can be planned accordingly to meet the business expectation. Gaining stakeholders support will also will also help in procurement of more resources (Campbell, Edgar and Stonehouse, 2011). Task 3 3.1 Future strategies of Apple Substantive growth Strategies Many large companies frequently go for substantive growth strategies which can be implemented through mergers, acquisition or joint venture rather than going for growth which is organic. Franchising is also a mean of external growth but it only applicable to certain kinds of business. Substantive growth in involves purchasing or going for an arrangement with companies which are ahead or behind a business and would lead to adding value to its current business. Such an arrangement can also be done with a completely unrelated business. The primary objectives of companies behind such association are to increase and create new market share, to have more power in the industry with large size business increased profitability(Ferrell and Hartline, 2011). Vertical and Horizontal integration When a company merges with or acquires its major competitor, or a firm which is operating in the same level in the value adding chain, it is referred to as a horizontal integration. This will result in increase of market share, improved capabilities and skills that can create synergy. An example of such integration is the merger of National Provincial Bank and the Westminster Bank to create the National Westminster Bank. Apple Inc can go for horizontal mergers with several companies in different lines of its business. For instance, to increase its market share and power in the line of personal computers in can merge with Dell, in the line of smartphones it can integrate with Samsung (Haimowitz, 2011). Vertical integration takes place when a company acquires another company which is its supplier of inputs (such as raw materials) or which is a customer of the companys products and services (assembler or distributor). For instance, if a shirt manufacturing company acquires its supplier, a cotton textile firm, it is a backward vertical integration and if the cotton textile company acquire the shirt manufacturing company, then it is a forward vertical integration. Apple Inc can easily go for a backward vertical integration by acquiring its suppliers. Forward vertical integration is not much applicable for Apple Inc as it produces the end-products which are ultimately sold to the end users(Khachidze, 2012). Related and unrelated diversification Related diversification implies diversifying on your existing lines of business by merging with or acquiring companies who are in the same business or related business. The company mainly uses its strengths and competitive advantage to increase its size and market share. For example, the strategic alliance that took place between Nokia and 3com. On the other hand unrelated diversification is entering a completely new line of business. It is the most risky strategy amongst all level of market strategies. Example of an unrelated diversification is that of General Electric (GE) and NBC Television (Kotabe and Helsen, 2011). If Apple Inc, which has established its quality and existence in the eyes of the general public, goes for an unrelated diversification to a new line of business, it may get acceptance. However, it is a risky decision, but a related diversification would always work for Apple. Limited Growth: A business strategy adopted by firm should be one which brings the company success in terms of profitability and growth with reduced risks and costs. A substantive growth strategy may sometimes bring financial problems and challenges to the business. In such a scenario, a limited growth strategy can be a good option for the business to avoid the risks associated with substantial growth(Leshik and Cralle, 2011). Ansoff Matrix The marketing strategy alternatives that come under limited growth are market penetration, market development and product development. These marketing strategies can be analyzed and selected using an Ansoff Matrix. The Ansoff Matrix is a planning tool widely used in marketing which assists a business in selecting the appropriate growth strategy. The decision is made on the basis whether the companys product is new or existing. The four alternative marketing strategy of Ansoff are market penetration, market development, product development and product/market diversification. Three strategies amongst these which come under limited growth are: Market Penetration: the strategy involves being with the existing product and in the same market. The existing product can further be exploited by adopting new pricing and promotional strategies to attract more customers, coming up with new usage of the product. Product Development: it involves developing and modifying the existing product by changing the outlook of the product, increase product performance and quality, introduces new features to the product etc. The aim of such strategy is to make the product more attractive and appealing to its already existing market. Apple has to develop and modify its product so that it can compete with other large organizations like Samsung. It will be able to compete with the other firms in the industry. Market Development: this strategy involves selling existing products to new market. It can be done by doing market segmentation to venture into geographically new markets, new product packaging, new distribution channels and different pricing. Market development is much more risky strategy as compared to market penetration and product development(Pollack, 2011). Apple Inc can go for limited growth using both market penetration and product development. It can add new features in its existing products, improve product performance, creating a new outlook of products to target new customers in its existing market. Market development strategy would not be much applicable for Apple because it is already widespread geographically. Retrenchment This strategy is used by organizations to lessen their geographical diversity or reduce the size if the companys operation. It is adopted by companies to cut down on the unprofitable expenses to become more financially stable. Specifically, it involves discontinuation of one or more products, withdrawal from certain markets with the purpose of making a valuable turnaround (Ray, 2012). Turnaround It means moving back and retreating from an existing business or process. A turnaround is required when corporation consistently facing losses, negative cash flow, mismanagement, high employee turnover, decline in market share etc. Divestiture and Liquidation Divestment involves liquidation or sell of a major portion/division of the business, an SBU or a profit centre. It is adopted when a turnaround strategy has proved to be unsuccessful. The reasons for divestiture may be when the business is unable to integrate with the company, unable to compete with the successful competitors and when a better alternative is available. Liquidation strategy involves winding up of the entire firm and selling off its assets. This is the extreme and the last resort as it leads to unwanted consequences like the stigma of a failure with loss of employment and an end to the future opportunities. Since Apple is successfully running a profitable business with all its product lines, it does not require adopting any retrenchment strategies as the same is not applicable for successful business ventures (Pons-Vignon, 2011). 3.2. Justification of appropriate strategy of Apple to pursue future growth Amongst all the above growth strategies above, the ones applicable for Apple Inc are horizontal integration; backward vertical integration; related and unrelated diversification; market penetration; and product development. Limited growth strategies of market penetration and product development can always be taken up because of them being less risky and costly. The substantive growth strategy of backward vertical integration by acquiring one or more of Apples supplier firm would be most profitable for Apple, as compared to other growth strategies. The risk involved is also comparatively less as compared to other substantial strategies. Task 4: Implementation and Evaluation 4.1 Roles and responsibilities of different level of strategy Strategies are planned at different levels of the organization which are the corporate level, business level and the functional level. The corporate level strategy rests in the topmost level of management and requires decision-making related to goal of the firm, allocation and distribution of resources and co-ordination of strategies and performance of different SBUs. The corporate strategy is related to the overall value delivery of the firm and not to that of individual SBUs and functions. The business level strategy is applicable to the different strategic business units (SBUs) of the corporation. Different strategies are formulated for different SBUs depending on the customers, nature of market, competition, and marketing channels. Functional level strategy is concerned with tactical decision making pertaining single functional operations and activities. In order to implement the growth strategy of backward vertical integration, each level of management must be directed a common goal. Appropriate actions must be executed by each level towards achievement of the common goal. Some of the activities are: Strategic Direction: Keeping in view of the roles and responsibilities of different levels of Apple it can be said that the strategic direction that they have followed had been quiet successful for the business. The strategic direction operate level strategy, the local and the functional and business strategies are been put in a manner which would enable the people to have a good idea about their strategic applications. The internal aspect of the strategic direction at apple aims to build the team which shall be creating extraordinary products that would contain the best specifications in business. The quality, design, appeal and its utility are few to name among the many attributes that the internal module of strategy explains to the internal consumers. Thus the approach is to recruit the best that are willing to seek challenges and innovate. These are directed towards a future where the entire team is future technology development oriented. The Training and development as well as a free flowing communi cation channel shall help it the best to cope with future challenges (Edmonstone and Chisnell, 1993). A leadership to identify the future challenges along with people constantly engaged to evolve with new changes and market oriented inputs in product makes the strategic direction more objective oriented for the brand. The other aspect is to secure a market share in the global context where the brand would be creating a pseudo monopoly (Fenske, 1972). The top level management of Apple must set an ultimate target of sales and revenues at the time of acquiring a supplier firm. Each SBU must set its own strategy and targets in order to best utilize the available resources. Communication: Communication is the very vital tool for management which ensures that the flow of information both horizontally and vertically across the organization. The way person interacts with each other both horizontally and vertically. The use of social media, internal quality group discussion, generation of ideas and grievance management are few of the aspects that apple have introduced for their strategic operational use. The updated information of the acquisition and the set target must be communicated from the corporate level to the concerned Strategic Business Units heads of Apple. The SBU heads must then make their own strategies and expected plan of action and communicate it to the functional heads. Task sequencing and scheduling: The task scheduling and sequencing means the management must identify the tasks performed by each of the individual employee. Each employee have their own set skills which again have the ability to identify and involve the people with right skill sets and aspirations to have the best of productivity while ensure that the skilled people are satisfied with the job they perform. Nevertheless, the training and team coordination plays a role in it where the sequences of activities are designed to complement each other (Knorr, 1990). The scheduling is another time bound job execution where the task time and specifications are well defined to reduce the ambiguity in production line. This is a tool to increase the manpower efficiency. Taking into consideration the corporate and business level strategies, the functional heads must then formulate necessary work plan for different work processes. Objectives must be set for specific functions and there must be proper co-ordination between differ ent functional area to ensure that all the departments are on the same page and working towards attaining the overall objective. Flexible planning: The flexibility in planning can be justified by stating the contingency plans in case the delay or deviation in standard operating processes happens. The flexibility enables the people to exercise some degree of time and job experiments those are directed towards the development of the processes (Klimov, 2012). However, the future is unpredictable so the utility of the plans can only be tested once the plan shows some results those are efficient enough to aid the business to succeed in time while also give enough aid to the business in such unpredictable circumstances. Work plan must be formulated taking into consideration any expected hindrances. The plan must be flexible to easily adapt to changes as and when required. Balanced Organizational control: The balanced control is the tool to management and is meant to check upon the success and failure or deviation from the set targets. The control on exercises based upon set strategies and plans of development, where each individual is treated equal. However the balance needs to have a plan like policy framing and percolating the same among the employees. The deviation from it has to be rectified by establishing standard operations methods via supervision. This would be achieved when each level in the Apple Inc will have their own set of goals and managers which is ultimately linked towards the attainment to the common goal. Management of Organization portfolio: The management style of the Apple is a very open where the hierarch is linear in terms of behavioral expressions while the departmental heads are vested with responsibilities to bring in the desired changes wherever required. The portfolio ensures the flow of ideas and communication at all directions (Ma and Yang, 2013). Proper planning by each level would ensure effective utilization of resources. 4.2. Resources to implement Apple strategy Human Resource: The recruitment to induction needs to have a solid planning which is also to be measured by strict guidelines. Equal pay for similar positions, training to improve performance, performance oriented bonus, employee voice and aspiration studies are few to name. The human capital is the futuristic strategic tool that with its innovation and skill is to determine the best talents and give them the jobs that suites their profile. As Apple will be acquiring its supplier firm, it will have to hire resources that are skilled and experienced in the field of its supply part. It can also conduct a training program for its existing employees who can be taken into the new venture of Apple. Material: The best of raw material needed for production are to be got from the suppliers who too have ethical and controlled standardized practices which have reliability. The use of material also needs to cope with various environmental and geographical conditions so the material has to be arranged which is not only cost effective but also gives ample chance to the manufacturer to be confident of its use. The brand image of Apple is such that it cannot compromise on its material for a sustained image and quality output. As the supplier firm is being acquired so that Apple will not have to buy materials from outside, it will not have to invest further in materials. Technology and Finance: The technology is ever changing so the use of the latest gadgets and technology which are futuristic would give the brand an edge. The innovation centric production of Apple has to have those technological inputs while they also need to ensure that the finance is well utilized for cost effective production. Thus a through planning and insight into the futuristic technologies while arrange finance which is best allocated to see no spillage or mal expenditure occurs has to be incorporated (Lusensky, 2014). The technology of Apple Inc is already of a standard quality, new innovations must be incorporated to add on to its existing technology. This would require additional investment. Time: The time of such introduction of technology and its advanced product has to also keep time into the loop. The introduction of product in such a competitive global market is not only risky but is also liable to fail due to the launch period selection. Such launch and time bound technology addition makes the product greatly admired and thus the chance of gaining market share is also increased (Hindle, 1997). Apple will have to ensure a good time management because it will be adding a new process into its chain of activities however the time in delivering the end product must not be compromised. Benefits and Limitations of resources: The benefits are many of which price competency and limited resources use with efficient price from supplier, cost effective production and innovation are the benefits. The limitations come from the resources being mis-utilized or being identified wrongly. The edge due to right material and manpower and technology may fail if the utilization is not proper or the material used are not upto the standards of expectations. However the other limitation is the pricing since the growing Asian market is highly price sensitive and are prone to have local products which are cheaper with same usage qualities. Here the business needs to introspect (Budnikas, 2010). Own Opinion: In order to successfully implement the substantive growth strategy of backward vertical integration by acquiring one or more of Apples supplier firm would be most profitable for Apple, as compared to other growth strategies. Other activities that Apple should engage in are to venture out and take the models of gadget production from the South Korean markets. This has engulfed the electronic goods market without much ado. The use of superior Operating system and cost effective product have made the same very popular. Thus to have the Asian market share the brand have to follow the model and see where it may put its own innovations to create differences. 4.3. Important target and Time scales for monitoring successful achievement Given below is a Gantt chart which states the different categories of tasks required by Apple for successful incorporation and implementation of the proposed strategy. The time frame estimated is twelve months and the sequence and the time frame of each sub-tasks is given alongside. The below given chart will help Apple in sequencing and scheduling the new project. Project Component M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Collection of available data sources and key information (on the available suppliers) Conduct a survey across different suppliers Analysis of the survey and selection of the best supplier Financial analysis of the proposed acquisition Implementation of the acquisition Hiring relavant staff for the new project (new hiring or existing employees) Training and development program for new project Preperation of the list and sequence of activities involved Implementation of the new process Process evaluation Impact valuation Outcome evaluation Given below is the budget allocation chart which assigns each task to the estimated budget. However, this is just the budget of implementation and evaluation of the project. The cost of acquisition i.e. the price at which Apple Inc is acquiring the supplier firm will be the major portion of the budget. Apart, from acquisition costs, other expenses associated with it are given below. Departments Tasks Amount () Marketing Collection of available data sources and key information (on the available suppliers) 0.25M Conduct a survey across different suppliers Analysis of the survey and selection of the best supplier Finance Financial analysis of the proposed acquisition 1M Implementation of the acquisition Human resources Hiring relavant staff for the new project (new hiring or existing employees) 1.5M Training and development program for new project Business Units and Functional heads Preperation of the list and sequence of activities involved 0.30 Implementation of the new process SBU heads Process evaluation 0.15 Impact valuation Outcome evaluation The above targets and timescales will not only help Apple in implementing the new acquisition project, it will also help in constant monitoring of the different tasks and sub tasks. The gantt chart above can be updated on a weekly or daily basis. This will reflect all the works in progress, whether the tasks are meeting its allotted deadline. This will keep the business units heads constantly alert about the progress of the tasks. Appropriate actions can be immediately adopted if the deadlines are not being met. Conclusion The futuristic business model that the business follows has the essence of creating new ideas in its products. The ability of the business to be successful and have sustained market share the use of the innovation is been competently used by the business. The development of Individual employees as well as introduction of knowledge management interventions are been frequently used to keep the people in business at par with the evolving technological inputs. This has made the business acquire the needed impetus to be a futuristic innovation driven firm. All these strategies have worked well for Apple Inc so far. Now, in order to secure a competitive position for itself in future and grow well above its competitors, Apple must go for further expansion of its business such as the adopting the recommended strategy. This will not be a very risky venture for Apple as it already built a good competitive advantage for itself in the market. Recommendation The recommendations that the business may incorporate in is folds for improvement has to be such that aids and directs its futuristic business aspirations. The business of Apple may incorporate a variety of product related specifications and use the same to attract ideas about the utility and identify the faults in such a product. Hence the idea of the product qualities can be assessed prior to the launch. Further, the recommendation of using feedback collection media is another aspect of rectification of the product fault or idea inclusion. So the business may utilize social media to generate ideas and thus use them there product design. Nevertheless, the other suggestion is that the business has to continuously monitor the competitors so that the strategic plans for competitive market share development are well formulated. The target market for Apple has to be diverse. Otherwise it will not be able make a strong position in the market. They must focus towards the college and university students. They will comprise a significant portion of the market share of Apple. The college and the University students will use the products like Mac Book, iPad and iPhones. They require the devices to organize the notes and college assignments. They will comprise a potential section of the target market. Apple has to attract this section of the market so that the other companies like Samsung and Chinese companies will destroy the market share of Apple. Samsung has coming up with new strategies to capture the target market. The products of Samsung are targeted towards the lower middle class, middle class as well as upper class of the society. They comprise of larger section of the market. The market share of Apple can be captured by Samsung in the near future. In order to surpass the situation, Apple has to revise its pricing strategy so reach out to larger section of the market. The prices of the products of Apple are too high to afford for the middle class section of the society. The Asian mobile phone companies are catching up really fast. Thus Apple has to redefine their rules so that they can reach out to wider section of the society. Apple makes huge investment for the development of technology. They should invest more in marketing their devices so that it can reach out to wider audiences. Apple can expand its business by potential mergers and acquisitions. The other big companies like Google and Nokia have entered into tie up with large organizations to expand their business. Google has entered into tie up with Android and then it has acquired Motorola. Nokia has tied up with Microsoft to expand their business. Thus Apple must expand their business to maintain and expand their market share. It might target the market of the Japanese consumer electronics. It will acquire Sony to maintain their market share. Apple can venture into other segments and launch new electronic products like television, music system. They can launch Apple TV to move into other segments of the market. The diversification of the product of Apple will increase the market share of Apple. Apple can expand its business and enter the market of digital ecosystem that has been already created by Apple. Thus Apple can make its products available for the customers to enhance their lifestyle and meet the need of the end users. Apple has to continue to play the changing game. There are opening for Apple to explore the market. 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