A Report on the business management of Apple Company

Introduction

This report is addressed to the senior manager, in respect to Apple’s project of inventing ibike. Notably, the senior manager will scrutinize it and thus, come up with a decision on either commissioning a full proposal or deciding; or not, or whether the idea might require a reworking; or not. In this regard, the report will be provided in form of a concept note, which will be divided into 5 sections, including the project rationale, analysis of the organization’s context, the project outline, the case for implementing the project and finally the feasibility assessment.

A Project Rationale

California. The company designs, develops, and also sells various consumer electronics, online services, as well as computer software. Apple’s mission is to bring forth the best user experience to its various customers by inventing innovative hardware, services, as well as software (Encyclopaedia Britannica, 2019). On the other hand, the objectives of the Apple Company, aligned with its strategies are as follows. First, its objective is creating groundbreaking products, and as such, it has initiated a strategy of building a great team culture alongside a strong research, as well as a developmental team (Reuters, 2019). The second objective of the company is to innovate and also dictate future technology movement. In this, its strategy is studying the market and understanding the needs of the customers whilst improving their current products upon listening to the feedback of the customers. The third objective is to expand its stored globally and as such, it strategizes to place its various stores in various large markets and expanding based on the population and products demand (Investopedia, 2019).

Even though Apple purposes to invent innovative products with the aim of meeting the needs of its customers, it is evident that the company lacks a technology, which would integrate customer’s iPod or iPhone by use of a smart bike. There are a few companies making little sensors with the aim of tracking information on bicycles, and clearly, Apple has not focused on this subject at all. In this regard, it is worth noting that Apple needs a system that would enable bike riders to be able to log and also wirelessly share significant information regarding cycling routes (Turner, 2009).

In order to solve the shortcoming above, Apple needs to provide a comprehensive software solution for a smart bike that would significantly integrate customers with iPhone and iPod into a system that would detail their performance, as well as the status of the bike then be able to communicate significant information to other cyclists (SullyTech, 2019). This technological application can be used with any kind of bike and it is referred to as iBike. iBike application would allow cyclists keep track of their speed, incline, decline, course, pace, heart rate, and environmental factors such as wind, elevation and even altitude. Moreover, the application would use voice commands with a display that is handlebar-mounted, in order for cyclists to be able to know and be able to boost their lap times (latest) to a network of friends (Brandrick, 2010). Overall, iBike would create a significant vision for Apple, as it would allow the company to create a meaningful customer experience through innovation and design, owing to the fact that it would change how cyclists cycle for better experience. Clearly, it would take Apple to a new level.

Apple’s high performance is connected to its effectiveness towards addressing various external factors in its macro-environment. Firstly, considering the political factors, it is evident that the US has improved free-trade policies, and political stability. Clearly, these factors provide an opportunity for Apple to expand its lines of business without government disturbance. However, over the years, the US has experienced trade disputes with China and this has forced China to impose high tariffs on Apple’s products, which may influence the iBike (Yüksel, 2012).

Apple supplies its products in developing countries and it is evident that these countries such as Asian countries are currently experiencing stable economies plus rapid growth, which would enable iBike to sell. Moreover, target customers for iBike are noted to have increased disposable incomes and this also poses as an opportunity for iBike, as they are able to purchase Apple’s high-priced products (Bovaird, 2004).

It is evident that currently, people depend mostly on digital systems and this provides a significant opportunity for iBike as it is now considered a socio-cultural trend, thus requiring Apple to ensure it copes with the high demand. However, a threat is posed as there international anti-Apple sentiments, which question Apple’s business practices (Yüksel, 2012).

An opportunity arises as Apple experiences an increased technological integration in its business. As such, Apple is capable of enhancing its services by offering technological products as well as services to customers including iBike. However, there are growing technological capabilities experienced in other firms and this poses a threat (Bovaird, 2004).

Generally, there is a business sustainability trend in the US. Notably, this increases favor for Apple to adopt significant sustainable practices. Moreover, there is also an energy efficiency trend in the US, which requires Apple to adopt new and efficient technologies in its practices (Yüksel, 2012).

A threat is poses as there are legal challenges that act against the policies and practices of Apple, especially in third party repair services. Secondly, in the US, there are increased privacy regulations, which require Apple to face costly regulatory compliance requirements, as well as more limits to its operations (Yüksel, 2012).

Internal context

Apple’s resource audit indicates that its tangible, as well as intangible resources are abundant. The company has an efficient management team, which has outsourced transportation, assembly work, as well as logistics, thus posing a cost leadership strategy. Moreover, the company has constructed an effective supply and distribution chain system and has an alliance with Microsoft and Dell Company, thus enhancing a win-win strategy with its competitors (Lundin, 2009). Generally, Apple has a continuous innovative spirit that is customer-focused, thus providing it with a brand reputation that makes it much competitive in the market.

Apple’s resource audit also reveals various resource gaps such as technology gap, as most of its operating system and applications fail to be compatible. Physical resources, reputational resources, human resources, intellectual resources, as well as financial resources of the company have differing strengths in major companies. However, for Apple, it is evident that its intellectual and reputational resources pose as their strong fields, as the intellectual resources purpose to improve the reputation of the company, especially for producing quality products (Ackerman et al., 2009).

The Project Outline

Inventing iBike has the following objectives. First, it will purpose to hitch a ride on Apple’s name, and as such, would glow its logo on the bike. The strategic activity aligned with this will be marketing the iBike application, in order to reach the attention of many iPod users and cyclers. Secondly, it will purpose to create an attractive experience for cyclers. A strategic activity of Apple will be integrating the application from one device to another, thus making the entire experience different (Business Insider, 2019).

The timeframe required for the implementation of the iBike project should take 4 years, whereby, having been announced in the month of November 2019, it should take effect in the month of November 2023. This timeframe is enough for necessary and effective steps to be taken to ensure that its quality is guaranteed.

Notably, this project will have its sources of funding as follows. 70 per cent of the capital will be derived from the stockholder’s equity, which by June 29, 2019 was estimated to equal $96.5 billion. Moreover, the remaining 30% of the capital will be derived from Apple’s hardware. This will be profits from its products, especially iPhone (which garners 70% of its profits, and also makes up 92 per cent of all the profits gotten from smartphones) (SullyTech, 2019).

The estimated cost for this project will be approximately $2,000,000. Making relevant researches about the app will require around $500,000. Creating the design for the bike will require approximately $1,000,000 and this will include assembling of the tools required of different designs. Finally, marketing the idea will require around $50,000 and the required labor costs for the project will require $450,000.

This project can bring forth a monthly income of around $3billion for Apple Company.

The potential partners for this project are AT&T, Nike Company, and Foxconn Technology Group. On the other hand, the potential stakeholders for this project are Apple’s employees, consumers, investors, suppliers, as well as distributors (Brandrick, 2010).

Apple Company will ensure that it markets the idea to the public prior to the start of its implementation, in order to get the feedback of the customers, thus deciding whether it is worth releasing it to the market or not (Levine, 2005).

Clearly, this project will bring forth a significant revenue for Apple Company and will as well meet the needs of the customers, especially those who are fond of the digital technology. Secondly, the project will bring forth a unique experience for customers (Cleland & Ireland, 2006).

The Case for Implementing the Project

The invention of iBike project aligns with Apple’s mission as aforementioned, which is to bring forth the best user experience to its various customers by inventing innovative hardware, services, as well as software. It is evident that iBike is an innovative software that brings forth a unique experience to consumers (Business Insider, 2019). Moreover, iBike also aligns with the strategic objectives of Apple as follows. First, it will create a groundbreaking product. Secondly, as aligned to Apple’s other objective, which is to innovate and also dictate future technology movement, it is evident that iBike will bring forth a future technological movement, which will move Apple to another level (Brandrick, 2010).

Clearly, owing to the fact that Apple needs a system that would enable bike riders to be able to log and also wirelessly share significant information regarding cycling routes, the company should have iBike to be able to meet the needs of its customers globally and also expand its lines of businesses. Apple will have to enforce its strategy of building a great team culture alongside a strong research, as well as a developmental team. Moreover, Apple Company will ensure that it studies the market and thus understand the needs of the customers whilst implementing iBike upon listening to the feedback of the customers (Investopedia, 2019).

This project may face the following risks. Firstly, over the years, the US has experienced trade disputes with China and this has forced China to impose high tariffs on Apple’s products, which may influence the iBike (Yüksel, 2012). Secondly, there are international anti-Apple sentiments, which question Apple’s business practices and this may negatively affect iBike. Thirdly, there are growing technological capabilities experienced in other firms such as Nike and this poses a threat to iBike and finally, in the US, there are increased privacy regulations, which require Apple to face costly regulatory compliance requirements, as well as more limits to its operations. This may as well affect iBike (Bovaird, 2004).

Apple’s effective supply and distribution chain system will enable the company to supply and distribute iBike globally and thus meet up the high demands it is likely to face, and consequently accrue more profits. Moreover, whilst considering that the project is customer-focuses, the reputation of the brand will increase and thus, be at par with Apple’s other competitive firms that also invent technological products. Finally, owing to the fact that iBike is intellectual-oriented, Apple will use the intellectual resources to improve the general reputation of the company and this is in line with producing quality products such as iBike (Cleland & Ireland, 2006).

It is worth noting that the operating system used in iBike may fail to be compatible with the application. In this regard, much research will need to be conducted, in order to ensure that every aspect of its implementation will be in order. Moreover, Apple may fail to conduct appropriate marketing, which may hinder more selling of iBike (Turner, 2009).

Conclusion

Based on the provisions above, this report makes it evident that iBike is a significant invention for Apple, which would benefit the organization on various aspects including financially, and in rebranding the organization to a better image. The decision on whether to implement this project is thus left for the senior manager.

References

Ackerman, M., Rucker, B., Wells, A., Wilson, J., & Wittmann, R. (2009). IT Strategic Audit Plan. Journal of Technology Research, 1, 1

Bovaird, T. (2004). Marketing in public sector organizations. In Public management and governance (pp. 105-118). Routledge.

Levine, H. A. (2005). Project portfolio management: a practical guide to selecting projects, managing portfolios, and maximizing benefits. John Wiley & Sons.

Turner, J. R. (2009). The handbook of project-based management: leading strategic change in organizations (Vol. 452). New York, NY: McGraw-hill.

Yüksel, I. (2012). Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52.

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