1. The characteristics of the firm taking the action. 2.The characteristics of the action. It could be a new market entry or price change. 3.The characteristics of the rival. Its size, performance, or desired reputation. 4. Environmental characteristics such as market turbulence, growth. Ability to Create Standards Apple has Very High Expectations and Standards for Their Suppliers The suppliers must commit to provide the best products and services to the Apple customers. “We take our social and environmental responsibilities seriously” (Apple, Inc.). Supplier must be fully aware of what is expected and the culture of Apple. The work environment that they create must be safe at all time. Every employee must be treated equally. The products used must be environmentally safe. Cost Factors in Commercialization When new products are put into the market it is called commercialization. There are several factors that play apart in commercialization for Apple. They are labor, land, resources, and logistics. Without the tings the products cannot be manufactured or available. Cost Considerations in Development
STRATEGIC INFORMATION TECHNOLOGY PLAN 15 Apple does not spend very much in the development of their products. The less the organization spends on sales, general and administrative costs. They are known as SGA. The least spent on SGA the bigger the is for Apple. The more the organization can decrease SGA the more money they save. The organization also saves a lot of money by outsourcing jobs. It does not pay very much for labor and the products are made much faster. “The high innovation share motivates the firms to economize on organizational cost” (Lo, 2011). Labor cost would be higher but there would be more people with jobs if the organization did not outsource. McFarlan & McKenney Strategic Grid Planning Process Apple falls under quadrant 4 high current and high future impact. The organization must continue to make high quality products, continue to improve their products to beat out the competition “Among the attractions with iPhone 8 are expected to be a glass body (instead of aluminum), edge-to-edge OLED display, iris-scanning for security, long-range wireless charging and an even less intrusive home button” (Brown, 2016) an use less resources to make their products. Balanced Score Card Analysis Financial Results The critical success factor for Apple in the Financial area liquidity. The operating margin increasing improves profitability. Apple offers products that cannot be purchased anywhere else. Another critical success factor is liquidity. “ Harford (2005), suggests macro-level liquidity
STRATEGIC INFORMATION TECHNOLOGY PLAN 16 is perhaps one of the most important determinants of mergers. The reason is that liquidity reduces financial constraints which in turn reduce transaction costs” (Baxamusa, & Georgieva, 2015). The rationale for this critical success factor liquidity is it expands business and gives stability to Apple. Increasing liquidity and lack of debt provide Apple with adequate capital. The expansion takes place geographical and operational. The key performance indicators to measure
You've reached the end of your free preview.
Want to read all 22 pages?
- Fall '12