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car industry experts, Apple plans to jump into the market with an electric masterpiece. The car won’t reach consumers for a few more years, but when it does, CEO Tim Cook and the company will be looking at making a big profit (Fortune 500, 2016). Apple has made products that are notnecessarily needed by consumers, but made user friendly for consumers. The fact that they are user friendly make the product that much more desirable by consumers. Also by having their products compatible with only their own (iTunes and iPods/iPhones), it makes the customer stickto the Apple brand, thus ensuring customer loyalty.As mentioned in our text, when we try to determine the ability of an organization to manage its technology and innovation, we must understand their capabilities. According to the text, capabilities are the set of characteristics an organization possesses to facilitate and support its strategies (White & Bruton, 2011). With capabilities comes innovation. Innovation is definedas the process whereby new and improved products, processes, materials, and services are developed and utilized (White & Bruton, 2011). There are five areas that determine when, where, how, if, and what innovations should be undertaken in the business. The Five Step Innovative Capabilities Audit Framework includes:Resource availability and allocation– these include human resources and available raw materialsto achieve goals. A company needs to know who produces the materials needed and where alternatives can be found.Capacity to understand competitors' strategies and industry evolution with respect to innovation– a company needs to see the technological advancements of materials and innovation to
AUDIT EXERCISE PAPER ONE4improve their existing line of products and services. Companies generally follow the strategic process in M.T.I. that include three stages: planning, implementing, and evaluate and control.Capacity to understand technological developments relevant to the business – technology firms needs to see advancements in chips and other electronics to upgrade their products. If firms do not, they will fall to newcomers entering the market with new and improved solutions and products. Releasing products before testing them is a sure way to lose customers.