1. Executive summary (1 page maximum). (05 marks)
This analytical report will detail the case study for Apple in 1997. It will conduct an internal and external environmental scan to show the factors influencing the business position of Apple at that time. In addition, it will discuss the strategic actions done by management at that time.
After many remarkably successful years in the business, Apple found itself in a very dire financial situation at the end of fiscal year 1997. Sales have fallen considerably low. The company’s revenue for the fourth-fiscal quarter in 1997 was $1.6 billion, a decrease of 30% from the previous year. The net loss for the quarter was $161 million, or $ -1.26 per share, compared with the net profit of $25 million, …show more content…
2. As part of the environmental scanning, identify factors and create tables to perform the following analyses for the Apple Computer. (20 marks) a. SWOT (Strengths, Weaknesses, Opportunities, Threats)
Below is a SWOT Analysis for Apple in 1997 that I have created.
Strengths
• Loyal niche customer base (education and graphic design markets) (p. 8-24)
• Strong brand image. Innovation, high-quality, powerful and user-friendly products.
• Technological innovation and has continually introduced new products and technologies and enhance existing products (p. 8-9) Weaknesses
• Constant Turnover of Top Management (p.8-6)
• Weak financial health. Decline in revenue and demand resulting in losses (p. 8-5)
• MacOS do not have the ability for third-party software (p. 8-5).
• Inability to monitor inventory and forecast supply (p. 8-20)
• Weak distribution strategy and channels (p 8-21)
• Low confidence of potential investors and or partners.
• Low morale of …show more content…
Even though its finances were not ideal, Apple still acquired NeXT at $427 million because they wanted Steve Jobs back in the company. He has the mettle and credibility, which is why Apple executives wanted him back. He was able to make strategic decisions in a short span of time that positively impacted Apple (i.e. strategic deal with Microsoft, stopping the clone licensing program). This goes to show that having the correct people in top management is very crucial in the continued success of a business. If there is constant turnover of top management, the business will not be able to leverage and sustain their competitive advantage in the long run as the business needs a stable top management to formulate and drive its strategic thrust, which will determine the direction that organization should take in their present and future operations. Hence, in Steve Jobs’ able hands, Apple Computer’s future is
This analytical report will detail the case study for Apple in 1997. It will conduct an internal and external environmental scan to show the factors influencing the business position of Apple at that time. In addition, it will discuss the strategic actions done by management at that time.
After many remarkably successful years in the business, Apple found itself in a very dire financial situation at the end of fiscal year 1997. Sales have fallen considerably low. The company’s revenue for the fourth-fiscal quarter in 1997 was $1.6 billion, a decrease of 30% from the previous year. The net loss for the quarter was $161 million, or $ -1.26 per share, compared with the net profit of $25 million, …show more content…
2. As part of the environmental scanning, identify factors and create tables to perform the following analyses for the Apple Computer. (20 marks) a. SWOT (Strengths, Weaknesses, Opportunities, Threats)
Below is a SWOT Analysis for Apple in 1997 that I have created.
Strengths
• Loyal niche customer base (education and graphic design markets) (p. 8-24)
• Strong brand image. Innovation, high-quality, powerful and user-friendly products.
• Technological innovation and has continually introduced new products and technologies and enhance existing products (p. 8-9) Weaknesses
• Constant Turnover of Top Management (p.8-6)
• Weak financial health. Decline in revenue and demand resulting in losses (p. 8-5)
• MacOS do not have the ability for third-party software (p. 8-5).
• Inability to monitor inventory and forecast supply (p. 8-20)
• Weak distribution strategy and channels (p 8-21)
• Low confidence of potential investors and or partners.
• Low morale of …show more content…
Even though its finances were not ideal, Apple still acquired NeXT at $427 million because they wanted Steve Jobs back in the company. He has the mettle and credibility, which is why Apple executives wanted him back. He was able to make strategic decisions in a short span of time that positively impacted Apple (i.e. strategic deal with Microsoft, stopping the clone licensing program). This goes to show that having the correct people in top management is very crucial in the continued success of a business. If there is constant turnover of top management, the business will not be able to leverage and sustain their competitive advantage in the long run as the business needs a stable top management to formulate and drive its strategic thrust, which will determine the direction that organization should take in their present and future operations. Hence, in Steve Jobs’ able hands, Apple Computer’s future is