The ever-changing world and the change in the taste and preferences of the consumers directly affect the social structure and the evolution of the markets that depends on the demand and the supply of the commodities demanded. Moreover the ways in which the firms undertake their management based on the ethics and principles, determines their market availability and the brand name of the commodities that the company offers to the consumers. The situation of the company is determined by the resourcefulness of the company’s assets and the involvement of the company in different public interests and the revenue that is being created by the company by the undertakings related to the trade of the company.
The report aims at understanding the situation of the company and makes use of the situation to understand the market condition, the availability of the commodities that is being produced by the company adhering to the demands of the consumers. Moreover, it helps in determining the competition that the company and the range of products face from the chief competitors in the present market (Arora et al. 2016). According to the requirements of the report, the concerned company that his being chosen for the understanding of the situation is Apple. Apple is an American multinational company that manufactures the consumer electronic goods like i-phones, smart phones, iPods and personal computers. The company has evolved being encouraged by the retention level of the clients and the brand loyalty they could produce among the target range of their customers in the recent years.
The only issue that the company faces is based on the distribution of the goods, which affects the market availability of the line of products manufactured by the company (Heracleous 2013). Moreover, the company also suffers from a lower rate of advertising, also that the products manufactured by the company have a lower life span than the products manufactured by the rival companies, mainly Microsoft. It is a miracle that the satisfaction rate of the clients remains the same after the delivery of the product.
The report aims at understanding the situation of the company and the steps that might be taken by the company in order to improve the supply chain and undermine the discrepancies that might arise out due the issues faced by the company with regards to the market availability. The report also focuses on the company’s environmental contribution according to the stakeholder’s approach where the company must consider the environmental factors that support the life of the people on earth. It can be regarded as the duties of the company towards the stakeholders of the company as to monitoring over the wellbeing of the stakeholders and the availability of the resources at large. Therefore, the report aims at delivering a better understanding of the situation of the concerned company and take decisions accordingly.
1 Situation analysis of the company.
The company specializes in the production of the consumer electronic goods and services in this era of technologies. Therefore, to prosper in the field that they are into, they must undertake certain steps to improve the research team in order to make suitable and considerable advancements in the process of manufacturing goods that are both beneficial and sustainable at the same time (Curwen and Curwen 2016). The sustainable approach of the company shall help in retaining the market of the company and thereby maintain the brand loyalty, which they indigenously enjoy. The best part of the discussion is that the company still holds a market that is not taken over by the rivals in all these years (Wheelen and Hunger 2017).
The company has certain strengths, apart from the limitations, which help the company in exploring the opportunities of expansion globally. The main strength that the company enjoys is the superiority of its technology over the other rivals. Therefore, the market is being retained thus by the company. In the recent years, the scenario has changed distinctly with the change in the people’s preference and their shift to the latest technologies offered by the Google Glass (Walton 2012).
The New Entrants and the use of the substitutes in the market is also an important threat that the company might face in the recent years. The report designed by the Porter’s five forces demonstrates that the company is subjected to many substitutes that are resulting to lower rates of supplies that are being undertaken by the company (Porter and Heppelmann 2014). Moreover, the price that the company listed for its products are high enough to match the requirements and the features that the competitors have got to offer to the consumers.
The growing trend of the usage of the analog systems is a massive threat to the company’s expansion. The short life span of the products also affects the buyer’s mentality of buying a product with a considerable life span. The consumers that are investing money on the product expects a certain life span that the product does not fulfill therefore the company must undertake considerable changes that helps in the maintaining the brand loyalty among its consumers.
Competitive rivalry is again a force that helps in the understanding of the company’s situation in the market. The rival companies (Microsoft largely in this case) poses a threat to the expansion of the concerned company by the production of the products at a lower price and which offers the best possible service to the consumers (Kauerhof 2015). The consumers in those cases opt for the products manufactured by the rival company. It not only takes away the market of the concerned company but also the assorted brand name of the organizations.
Bargaining power of the suppliers is also an important factor that must be considered while understanding the current situation of the company and determining the market condition of the company (Jun and Sung Park 2013). The bargaining power of the suppliers justifies the reason as to the listing of the price of the products, which again depends on the quality of the products, or the services they are offering.
The bargaining power of the consumers is another important consideration that must be undertaken to understand the extent of the justification of the price that is being listed by the company. It defines the queries of the consumers as to the high price of the commodities, asking for an explanation in order to justify the cause for listing the price for the commodity. This force determines the consumer’s perspective in understanding the ways in which they affect the pricing of the commodities (Kanagal 2015).
Depending on the above factors, the company faces three forces of change in order to retain the market and the brand loyalty they are into. The changes help the company in undertaking the required changes in the organization in order to retain their target customers. The three driving force can be enumerated, from the porter’s five force, as the competitive rivalry that the company faces, the new entrants in the market and the bargaining power of the consumers at large.
2 Strategies to undermine the limitations
The concerned company must undertake certain strategies in order to undermine the effects of the limitations that the company faces in regards to the supply chain or the short life span of the products that are being manufactured by the company (Gershon 2013). The strategies must be undertaken with the clear view of retaining the brand name and for maintaining the standard of the products that they once promised to the consumers all around the globe.
Proper monitoring over the services and the production of the commodities must be undertaken in order to understand the limitations and thereby retain the market for the line of products manufactured by the company (Feldner and Berg 2014). A proper research team must be formulated which will monitor over the quality of the commodities that is being produced by the individual units. Moreover, a proper monitoring should be undertaken on the parts that are being imported by the company from the other parts of the world in order to support the production of their commodities. Faulty imports can lead to the increased rate of costs, which the company has to bear. Moreover, the faulty imports can also result to the discrepancies that might arise while the production process is being undertaken by the particular unit (Tsai and Chang 2013).
Proper advertising and promotional activities must be undertaken by the company in order to make the people aware of the range of products that the company manufactures (Baroto, Abdullah and Wan 2012). The company can make use of the social media platforms in order to make the people. The advancements in the technology have brought in changes that help in undertaking the advertising functions by the company effectively at an economic cost that the company can adhere to. The proper advertising is important in making the people aware of the innovations that the company has brought about in the range of their products, which helps in dominating over the competitors in the market.
The most important step that the company must undertake in order to avoid the situations of faltering brand name is to undertake and design a supply chain that goes well with the product. Effectiveness of the supply chain greatly affects the market of the company in regards to the market availability of the product and the market being taken over by the competitors (Hitt, Ireland and Hoskisson 2012). The supply chain that is being formulated by the company is such that the shipping process is delayed and therefore the commodities reach the target consumers at a delayed time. The technologies that are used by the company is advanced enough to face the tough competition from its competitors, although there are substitutes in the market that poses a threat to the demands of the products produced by the company at large. The consumers might go for the competitors and opt for their products if the concerned company, which results to a decline in the market of the company, is delaying the order (Kumar, Teichman and Timpernagel 2012).
The corporate social responsibility of a company is a form of the integration where corporate self-regulation is combined to a business model in order to take care of the social responsibilities that the company have towards the society, not determining the individual benefits of the company (Cedillo et al. 2012). It requires the company to act according to the laws and the legislation and the ethical standards of the international norms and ideas, which are characterized by the sustainable approach of the company.
The concerned company for this report undertakes the CSR in order to revise through the ethics that the company is required to take based on the demands of the society and the environment. The steps taken by the company in maintaining the CSR is the basis of the discussion in this section of the report (Wonglimpiyarat 2012). The factors that the company must consider while formulating the CSR is the social, environmental and the markets in which the product is being launched by the company.
A. Social objectives
The social objectives that the company considers are based on the impacts that the company have on the society. People from all around the world are being employed in the company in order to receive a fair remuneration. Now, it is the responsibility of the owners of the company to look after the needs and requirements of the workforce (Backer 2013). The human resource development and the involvement of the skilled labors are an important criteria and an action is taken by the company in order to make the employees aware of their rights and duties (Lemke and Petersen 2013).
The concerned company for this report believes that an educated and skilled workforce is an important consideration that the company must make in order progress in the end. The company also considers the health and the grants that the employees expect from the employers of the firm (Lehman and Haslam 2013). It is to maintain a good relation between the employees and the employers in order to make the workforce more manageable and reliable at the same time. the company holds a responsibility towards the wellbeing of the employees and that can be considered as a social objective of the company. The objectives are specially based on the considerations of the society and the wellbeing of the people at large. The company has enumerated plans and programs for the wellbeing of the employees and looks after the needs and requirements of the employees. It also has certain social and environmental responsibilities that it undertakes through the formulation of the policies.
B. Environmental objectives
The environmental objectives include the concerns that the company needs to have in regards to the laws and the international legislations. Adhering to the laws and norms in order to protect the environment simultaneously with the production process is an important consideration that every company undertakes. The concerned company for this report relies on the renewable sources of power generation for powering up their production units and the facilities worldwide (Frederiksen and Nielsen 2015). The usage of the solar, the wind and the waterpower by the company clearly demonstrates the company’s policies favoring the environment at large. Moreover, the supply chain that is being formulated by the company is green in nature, which means they make use of the environment friendly measures to form their supply chain and thereby the action portrays their concern for the environment. They are also considering and working on the phenomenon of the recycling the wastes that is being created by the products (Khan, Alam and Alam 2015). Moreover, the paper they are using for the packaging of the products are environment friendly and therefore by these steps that are undertaken by the company, clearly demonstrates the company’s concern for the environment and the people, at large.
C. Market objectives
The market objectives that the company adheres to is based on the rate of competition that the company faces from the rival companies and the strategies that the company formulates in order to retain the brand loyalty among the consumers. The market conditions and the situation of the company help in determining the position of the company in the market. The line of products presented by the company has substitutes that might affect the demand of the company in the market. The other factors that affect the market of the company are based on the pricing and the quality of the products and the final distribution of the products through the assorted supply chains. Therefore, in order to undermine the effects of the substitute products the company must monitor over the pricing strategy that it undertakes and the quality of the product. The quantity of the products being produced by the company is another important factor that helps in determining the market availability of the company and thereby determines the value of the revenue that is being created by the company. The short life span of the products manufactured by the company also determines the different forms of discrepancies that might occur from the consumer’s side.
According to certain reports, the concerned company is suffering from a limitation of shipping the commodities at the right time to the final consumers. The supply chain is being affected in this process, which actually determines the market availability of the product that the company manufactures (Jeyarajah 2015). Moreover, it also affects the brand loyalty that the consumers have for the company and its line of products. The manufacturers of the substitute products and the competitors gain the market in this connection and gets hold of huge profits. The most intriguing part of this delay is that the consumers are still satisfied with the quality that is being provided by the company. The short life span of the commodities that is being manufactured by the company is also an issue that the company faces and thereby a research team must be formulated in order to uphold the sustainability of the product in the market and the sustainability of the life cycle of the products is ensured.
The market objectives of an organization denote the market considerations and the situation of the company at large. It determines the market competition that the products of the company face from the existing competitors and the substitute products produced by the other companies (Johnson et al. 2012). The major determinants of this market competition is based on the quality of the product, the pricing strategy that the company formulates keeping the target consumers at mind and the quantity of the products being produced by the concerned company which determines the market availability of the products of the company. In order to make the necessary advancements and make the line of products sustainable in the market the company must ensure that the factors that affect the market competition is being well monitored and the factors are taken care of.
Therefore, from the above analysis it can be concluded that the concerned company for this report undertakes steps in order to ensure the sustainable management of the organization and the resources they require in order to manufacture the products. The market situation of the company and the competition that the company faces in regards to the factors of production and the distribution of the products is an important consideration that the company undertakes and is therefore discussed in the report. The company also undertakes the environmental considerations in order to make use of the sustainable usage of the environment. The most intriguing part of the report states the limitations that the company faces that might be a constraint in the path of their progress. The lower rate of advertisements that is undertaken by the company is subjected to the lower rates of awareness among the consumers. The report gives a detailed view of the problems faced by the company and enumerates recommendations in order to overcome the issues.
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