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Key Success Factors
Budget & Forecasted FinancialsApples breakeven analysis will be used to determine when they will be able to cover all its “expenses and begin making profit. Apple will calculate their breakeven point by identifying fixed and variable cost. The breakeven point is reached when revenue equals all business costs.” (US Small Business Administration, 2016)“Over the next five years, the Apple is expecting it to grow earnings at an average annual rate of 11.95%.”
Risk Assessment & Contingency#RiskOutcomeRatingMitigation1Supplier Backorder IssuesRequested Units to Ship not MetHighSet up back up suppliers for components that are at higher risk of back order.2Production Failure/MalfunctionIncreased production is not met, leading to units shipped decreaseMedUse secondary production facility on stand by to ensure all unit production goals are met. 3Product Change not AcceptedLoss in profit or SalesLowUse R&D expense wisely to select features components to add to iPad to ensure change is widely accepted and not drastic4Partnership terminatedReduced sales/profit due to lack of confidenceLowEnsure contract is in place with partnering organization IBM. Set up back up sales schedule to meet sales goals if necessary.5Marketing Strategy not MetUnit sales expectations will not meet requirements of new iPad planMedProvide secondary marketing initiatives to promote iPad if marketing strategy is not prepared by launch.
ConclusionApple has created a strategic plan that has established value and a sustainable competitive advantage. Apple is an industry leader in the world of forever changing competitive technology. It is evident that customer’s love Apple products and Apple love to create the high quality innovative product designs for optimal customer experience. Apple strategic plans suggest that they will continue to focus on innovation as a key success factor for future and continued growth.
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