Anthropology Variation in Skin Color - 2669 Words

Old Dominion University Human Adaptation and Variation Alyssa Carlson 01005378 ANTR 110S_10772 Dr. Elva Smith 24 November 2014 Human biological diversity encompasses much more than the characteristics seen by the naked eye. Our species walked new and unique paths to arrive at our present existence. Our journey resulted in the achievement of many innovative and unique physiognomies allowing us to survive and reproduce. What characteristics have our species evolved and which most greatly shaped our evolution by conferring additional advantages in survivorship? Although there are many remarkable characteristics that have evolved the most striking†¦show more content†¦We can acclimatize to a wide range of temperature and humidity. The nature of skin color distribution suggests an association with environmental factors varying with latitude. The association between dark skin color and a tropical habitat existed throughout the Old World due to the majority of the world’s dark skinned population residing in the tropics. The tropics are 23 degrees north and south of the equator. Huma ns and their ancestors have been inhabitants of that land for thousands of years until migration to all corners of the globe started to occur. As migration continued so did natural selection. Outside of the tropics, in locations such as the poles, skin variation is different due to the lack of sun and is quite obvious. Adaptation to lighter pigmentation may have been driven by a need to increase UV absorption for vitamin D synthesis at high latitudes. In addition, the pigment of the poles inhabitants did not change rapidly. Instead it was done by becoming acclimated to the environment. Acclimatization is another kind of physiological response to environmental conditions, and it can be short-term, long-term, or even permanent. Acclimatization is the physiological responses to changes in the environment that occur during an individual’s lifetime. These responses to environmental factors are partially influenced by genes, but some can also be affected by the duration and sever ity of the exposure. AfterShow MoreRelatedEssay about The Evolution of Human Skin Color1019 Words   |  5 Pagesworld, humans have significantly changed overtime and have developed all sorts of diverse characteristics. One noticeable characteristic of human beings is the variation of skin color. Skin color has been used to identify, classify, and verify the variation that exists in the human population around the world. How did such a distinct variation arise and how did it play into adaptation? I’ve often heard that â€Å"humans came from monkeys,† or something similar. It is true that humans’ ancestors were primatesRead MoreAnatomically Modern Humans968 Words   |  4 Pageshumans were found in more than one location across the globe (Europe, Asia and Africa) which has led scientists to formulate two different theories as to why this is. The first is the regional continuity model and the replacement model (with some variations on this model). The multiregional continuity model says that the earliest H. sapiens in the Pleistocene didnt originate only in Africa and also says that as a result of â€Å"gene flow† the early population spread out geographically. Because of naturalRead MoreIndian Skin Pigmentation Of India743 Words   |  3 PagesSarkar and Nandineni undertook this study to better understand and document the genotype-phenotype associations for skin pigmentation in Indians. They found that many similar studies were being done in E uropean populations, but not South Asian populations. Of these, only a few have been done in India and these were limited to specific regions. Sarkar and Nandineni’s goal was to correlate single nucleotide polymorphisms (SNPs) to the melanin index (MI) of Indian populations. Rather than being limitedRead MoreUnderstanding the Differences Between Human Variation and Race 1065 Words   |  4 Pages Human variation and race are two topics that are often confused with one another. Human variation is the broad spectrum of differences in human populations based on gene interaction and biological traits. Race is the grouping of human populations based on phenotypes and cultural backgrounds. For example, human variation can be the differences among people that occur from migration as well as adaptations to environmental challenges. Race, on the other hand, can be the categorization of a specificRead MoreThe Full Scope Of Human Life871 Words   |  4 Pagesbe human. Many fields such as history, psychology, and sociology all offer a perspective in the study of humanity, but there are distinguishable from anthropology. Anthropology differs from other humanities fields due to its holistic nature, comparative research methods, and the strong emphasis on fieldwork and participant interaction. Anthropology is the study of people throughout the world, their evolutionary history, how they b ehave, adapt to different environments, communicate and socialize withRead MoreGene Therapy And Human Genetic Engineering1646 Words   |  7 Pagesthe color of our skin and the shape of our noses, and in biochemical factors such as our blood types and our susceptibility to certain diseases† (Sheridan College Institute of Technology and Advanced Learning, 2013, p. 34). To understand human physical development and evolution one has to understand biological anthropology as the focus on humans as biological organisms. Biological anthropologist conduct research, and form techniques of modern molecular biology to learn about human variation and howRead MoreNatural Selection And Human Evolution1198 Words   |  5 PagesBiological Anthropology Biological anthropology, also known as physical anthropology, is the study of human evolution defined by Anthropology Professor Dr. Craig Palmer at the University of Missouri. Evolution is the changed caused by natural selection. The effect of the inheritable elements on their own frequency in succeeding generations. (Inheritable elements replaced the words generations). The variation within species and reproductive success are the basis of natural selection. Natural selectionRead MoreNatural Selection Has Altered the Appearance of Europeans ove the Past 5000 years1177 Words   |  5 Pagesappearance of Europeans over the past 5,000 years† discusses how scientists have finally discovered how natural selection played a role on the human genome in the past 5,000 years and how it caused transformations in the appearances of people, in their skin, eye and hair pigmentation. This research had been on going for a long time and unfortunately; the methods the geneticists originally used did not produce good results. Finally the researchers were able to conduct new experiments by examining theRead More Biological Differences that Exist Between Individuals in a Population3749 Words   |  15 PagesIndividuals in a Population Physical anthropologists view humans as biological organisms. Coupled with genetics and biochemistry, scientists can form a more complete picture of human anatomy, both past and present. Physical anthropology looks at human variation and evolution. Variation looks at the biological differences that exist between individuals within a population and at individuals between populations (e.g., body shape, size, and physiological responses). These differences in human biology areRead MoreRace in Different Countries1270 Words   |  5 Pagescountries and for some people, race is the color of your skin, or the background that you come from, or even biological and physical traits. Therefore, it’s crucial to thoroughly explain the topic of race and how it plays into context in today’s society. For example, what is considered â€Å"race† in Brazil is different than what it is in other countries. In Brazil, race is categorized by biological anthropology, or by the way someone looks physically. Brazilians look at skin tone and a series of tipos, when considering

Is Marketing Ethical And Ethical - 1158 Words

Is Marketing Ethical? The purpose of this paper is to discuss whether or not Marketing is ethical. The flow of this paper will present a brief discussion on the definition of marketing, a brief discussion on the definition of ethics, and overview of the marketing process, and finally a narrative that discusses my view on whether or not marketing is ethical. WHAT IS MARKETING? According to the Kotler text, marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return (Kotler and Armstrong 5). This definition extends marketing beyond advertising, promotion and selling. Marketing is used to create value for customers and building strong relationships with those customers. If a company is successful in creating value and building strong customer relationships, the company will be able to capture value from customers. WHAT IS ETHICS? According to Brown and Suter, ethics are the moral principles and values that govern the way an individual or a group conducts its activities (Brown and Suter 10). Based on the definition provided by Brown and Suter, ethics go beyond whether something is legally or socially correct. It is based on a set of principles and values. The principles and values employed by a company will drive the overall marketing process of that company. WHAT IS THE MARKETING PROCESS? Since marketing goes beyond the advertising, promotion and selling of a product,Show MoreRelatedEthical Issues With Ethical Marketing Essay1333 Words   |  6 PagesIssues with Ethical Marketing Ethical problems in marketing starts with conflicts and disagreements. Each party in the marketing transaction brings expectations of how the business relationship will exist and how the transaction should be conducted. Some ethical problems in marketing research aren’t always the invasion of privacy and stereotyping. Selective marketing is used to discourage the demand from undesirable markets or just by disenfranchising them altogether. Examples of unethical marketRead MoreEthical Aspects of Marketing1455 Words   |  6 PagesEthical Aspects of Marketing Developing a Business Plan August 4, 2009 Ethical Aspects of Marketing Executive Summary This report outlines the social, ethical and legal aspects of marketing. Environmentally Responsible Products Consumers have become more aware of the impact of both production and consumption on the wider environment in recent years. This is acutely apparent in the way products are now packaged. During recent years many companies have assisted in doing their part for the environmentRead MoreThe Ethical Issues Of Marketing1488 Words   |  6 Pages Introduction: - marketing is a tool which the organization makes use of to provide Valuable products or services to customers by using the expertise of the organization And at the same time to achieve the goals of the organization. Marketing is an organ of the company which communicates The merits of the product or service to its customer to which it intends to sell its Product or service. Marketing is done by the company not only to communicate aboutRead MoreEthical Issues in Marketing1566 Words   |  7 PagesEthical issues in marketing The importance of ethics in marketing is growing. Recognition and respect for ethics, covering a wide range of issues can be used as USP (unique selling point) for a company. Each society will have it own unwritten code of behavior. However view of matter will change over time. Due to this societal marketing concept has emerged which requires that marketer adhere to socially responsible and ethical practices in the marketing of their goods and products. Below is the definitionRead MoreEthical Issues in Marketing3405 Words   |  14 PagesEthical Issues in Marketing: The Context of Developing Countries Introduction: Marketing, in contemporary times, has seen a tumultuous change in the way its conducted in developing countries. The oft cited dictum that only change is constant in the marketing genre is an apposite one. Just as the media of social communication themselves have enormous influence everywhere, so advertising and marketing, using media as their vehicles, are pervasive, powerful forces shaping attitudes and behavior inRead MoreHealthcare Marketing And Ethical Considerations928 Words   |  4 PagesHealthcare Marketing and Ethical Considerations Marketing and advertising strategies have historically been an important avenue for businesses to reach target audiences. However, for the healthcare sector, marketing and advertising are a newer strategy. Thus, advertising regulations and ethical considerations have remained slow in comparison with technological growth and consumer interests. Progressing from an industry banned from advertising, to an industry where marketing has become crucial, hasRead MoreIs Marketing Really All That Ethical?1453 Words   |  6 Pages Is Marketing really all that ethical? Marketing has been used as a forefront for promoting the sale of products, and services to customers for centuries. We see examples of marketing every day channeled through mediums such as television, radio, newspapers, product packaging, and massive billboards on the side of the road. As humans, we are naturally wired to fall for the so called ‘next best product’, the ‘intriguingly eye catching packaging’, and the ‘lowest price’. However, what we are notRead MorePractical And Ethical Consideration Of Marketing1123 Words   |  5 PagesPractical and Ethical Consideration of Marketing to Children Introduction: In 1935, the National Association of Marketing Teacher adopted the first definition of marketing, which was the performance of business activities that direct the flow of goods and services from producers to consumers. Since 1948, the American Marketing Association has become responsible for the definition of marketing, and it adopted the definition in the same year . The definition of marketing has changed many timesRead MoreEthical Issues Of Marketing : Marketing Ethics871 Words   |  4 PagesEthical issues in Marketing - Marketing ethics deals with the moral principles behind the operation and regulation of marketing. Possible fundamental frameworks of analysis for marketing audit are: - Value-oriented framework, ethical problems on the basis of the values which they infringe honesty, autonomy, privacy, transparency. †¢ - Stakeholder-orientated framework, analyzing ethical problems on the basis of whom they affect: consumers, competitors, society as a whole †¢ - Process-orientated frameworkRead MoreEthical Guidelines For The Marketing Industry1562 Words   |  7 PagesWhen it comes down to ethical guidelines it is pertinent that every industry have them. However, when consumers think of the marketing industry, they tend to think those are the most unethical people participating in those jobs. Marketing too has some ethical guidelines, but to what extent are they being followed to have consumers thinking otherwise? Marketing is supposed to make honest claims and satisfy the needs and wants of the customers. It is supposed to develop brand loyalty, to in turn increase

Family Should Not Be Defined By Blood - 1129 Words

Kroeker 1 A family can be defined in many different ways and almost every person has their own view and definition of families. Some may define it as simply as the blood relatives they have grown up with, living in the same home for most of their life. Whereas others, including myself, have a much more in depth or personable definition. No matter the culture or living situation, my definition of a family is the people I know will be there for me whenever I need them to be. This includes not only my actual blood related siblings, parents, grandparents and cousins but also my best friends and even some of my parents’ close friends that I have known the majority of my life. Family should not be defined by blood. I have an aunt that was adopted which means she is not blood related, but I still fully consider her family, I believe this has an impact on my own definition of a family. Television today has changed the views and stereotypes on American Families. Stereotypes include the family ha ving a mother and father living in the same home where the mother is a stay at home mom, while the father makes a living for the family. Also the family is usually Caucasian and considered wealthy, living in the suburbs. The shows such as Full House, Good Luck Charlie Keeping Up With The Kardashians have had a major impact on how societies view families in this day and age because of the way they follow these American Stereotypes. Television portrays American families in a way that isShow MoreRelatedSymptoms And Symptoms Of Pneumonia1234 Words   |  5 PagesPneumonia can be defined as the inflammatory process of the lungs that produces excess fluid. The most common cause of pneumonia is bacteria pneumonia. Bacteria pneumonia is caused by Streptococcus pneumonia. This type of pneumonia can occur on its own or after you ve had a cold or the flu. For your average adult, pneumonia manifestations include: fever, chills, flushed face, diaphoresis, shortness of breath, tachypnea, pleuritic chest pain, sputum production, crackles, coughing, dull chest percussionRead MoreHealth Of Family Members Living And Deceased Essay1496 Words   |  6 PagesCompiling data regarding the health of family members living and deceased can lead to a more complete understanding of one’s own health. Based on the research I composed regarding my family’s health history it appears that I am at risk for high cholesterol, r heumatoid arthritis, heart disease and thyroid conditions. In my lifetime I have witnessed my family’s lifestyle characteristics that have contributed to these diseases. Of those ailments, heart disease is a primary concern and one that my ownRead MoreThe Role Of Lifestyle On Influencing Our Health1241 Words   |  5 PagesOrganisation (WHO) defined health as a state of complete physical, mental and social well-being and not merely the absence of diseases or infirmity. It is a positive concept focusing on social and personal resources as we as physical strength. A state of been free from illness or injury. BEING HEALTHY Being healthy simply means staying fit and feeling well. This is maintained by eating healthy, eating things in the right proportion and exercising regularly. LIFESTYLE Strydom (2005) defined lifestyle asRead MoreThe Secret Life Of Bees Character Analysis854 Words   |  4 PagesFamily can be defined as individuals who are related by blood, yet it is more so about our ability to care for a person or people and for them to care for us as well. This same theme is demonstrated by many literary texts throughout history. One, exemplary novel is The Secret Life of Bees. Within the book, there are many exchanges between characters that stresses the importance of family and how there are no limits when it comes to choosing who you consider family and who you do not consider familyRead MoreEssay on Acute Renal Failure 970 Words   |  4 Pagesthe causes are characterized as a sudden decrease of blood flow to the kidneys, damage from some medications, poisons, or infections, a sudden blockage that stops urine from flowing out of the kidney. Prerenal failure is caused by the perfusion of the kidney which then results to reduced cardiac output and constriction of the afferent arteriole. If there is lengethened hypoperfusion which is characterized as the decrease in the flow of the blood it can lead to malfunction and death of the cell knownRead MoreFamily Is A Role Model917 Words   |  4 PagesFamily is a word that many hold dear to their hearts. Family is defined as â€Å"a group consisting of parents and children living together in a household.† So in society’s eyes, the typical â€Å"family† would include a mom, dad, and siblings. However, that is not the case. Family can be a protector, a therapist, and a role model. Family is someone who protects you. Generally, when someone thinks of a protector they think of a spouse or older sibling. Your spouse will be the one to protect you from a burglarRead MoreThe Effects of Exercise on Blood Pressure Essay884 Words   |  4 PagesEffects of Exercise on Blood Pressure Introduction Blood pressure is defined as â€Å"The force the blood exerts against the inner walls of the blood vessels† (Shier, 2013, pg 582). Blood pressure is monitored by using a sphygmomanometer and a stethoscope and is a routine test in most medical examinations. A sphygmomanometer is basically a cuff, it is wrapped around the upper arm and inflated with air to put force against the brachial artery and briefly stop the blood flow. The person performingRead MoreAmerican History : The Colonial Present1203 Words   |  5 Pagesargue that reserves and blood quantums all act as technologies of modernity, enforcing racialized worldviews and categorizing groups into inferior and superior. Modernity can be defined as a system of prevailing knowledges that seek to understand and categorize bodies. Modernity began during the age of imperialization and globalization in which Europeans aimed to control non-European systems of knowledge. Technologies of modernity in the framework of this pap er can then be defined as systems of rulesRead MoreResearch Study On Kidney Disease1433 Words   |  6 Pagesdefinition of kidney disease and the various stages that compromises it. Definition of Kidney Disease â€Å"The National Kidney Foundation criteria for diagnosis of Chronic Kidney Disease (CKD) are as follows: kidney damage for 3 months or longer, as defined by structural or functional abnormalities of the kidney, with or without decreased glomerular filtration rate (GFR), and glomerular filtration rate is less than 60 mL/min/1.73 m2 for 3 months or longer, with or without kidney damage (Briggs, KrizRead MoreThe Moral Life Written By Louis P. Pojman And Lewis Vaughn983 Words   |  4 Pages Every day in life we have to face tough decisions whether their good or bad. We have to makes decisions in regards to family, friends, work, and school. For this purpose, we have ethics that we use in our everyday lives. According to the book The Moral Life written by Louis P. Pojman and Lewis Vaughn, ethics is defined as the study of morality using the methods of philosophy, and morality concerns beliefs about right and wrong actions and good and bad persons or characters (pg.1, 2014). There wi ll

The Extraordinary Jimi Hendrix Essay - 2402 Words

The extraordinary performances, recording, and lyrics of James Marshall Hendrix have made him impossible to forget. This American rock music guitarist made a legendary mark not only in the history of rock n roll but also on the pop culture as a whole (Ross 32). With unique techniques never seen before and blatant sex-related performances on stage, he became one of the most influential music figures of the 60s (Kamin). Hendrix was not born into stardom nor was it given to him by any means. He strived all throughout his life to be the very best. Johnny Allen Hendrix was born on November 27, 1942 in Seattle, Washington to Al and Lucille Hendrix, and not until four years later did his father change his sons name to James Marshall†¦show more content†¦Unfortunately, he never was able to get Richard to realize his talents, so he abandoned Richards tour in St. Louis (Wolters, Pre-Experience). After aimlessly wandering for awhile, Hendrix found himself in Atlanta and once again teamed up with Little Richard. The tour brought them to Los Angeles where he then went in his own direction. He hooked up with Richard for a third time during the summer of 1964 to record an album in which he again felt confined as being only a backup to Little Richard (Wolters, Pre-Experience). Hendrix later joined the budding musician Arthur Lee, but the partnership did not last long as he once again set out in search of his own identity (Wolters, Pre-Experience). He embarked as a traveling musician for various tours backing such artists as Ike and Tina Turner, Muddy Waters, Elmore James, B.B. King, Chuck Berry, King Curtis, Solomon Burke, Chuck Jackson, Jackie Wilson, and several others (Wolters, Hendrix). On his next endeavor, he teamed up with saxophonist Lonnie Youngblood. The pair was short-lived as Hendrix soon split, and his adventurous spirit ended him up in New York where he rented a small, cheap apartment and drifted from job to dead-end job (Wolters, Pre-Experience). The spring of 1964 brought better luck to Hendrix. Ronnie Isley of the IsleyShow MoreRelatedEssay about Jimi Hendrix1489 Words   |  6 Pages This future guitar master went by the name of Jimi, Jimi Hendrix. His childhood was not very fortunate, however, he did indulge himself in one particular way: Jimi loved to play the guitar. Jimi could never afford to take lessons so he taught himself. At first he played an old acoustic guitar, and later a cheap Silvertone electric. Both of these guitars were both strung for a lefty on a right-handed guitar, one of the defining Hendrix traits. Jimi would have preferred to play a guitar that was madeRead More Psychedelic Music, Its Origins, and Its Effects on Music Today1397 Words   |  6 Pagessynthesizing lysergic acid for possible use to help migraines. On his twenty-fifth try, he made LSD-25, and after his work he began to feel dizzy. He assumed he had the flu, so he went home. â€Å"I perceived an uninterrupted stream of fantastic p ictures, extraordinary shapes with intense kaleidoscopic play of colors,† Hofmann wrote in his biography LSD, My Problem Child. â€Å"After some two hours, this condition faded away.† He then knew that it was not the flu that made him dizzy, so he tried LSD again and gotRead MoreMusic And The Way It Makes Us Feel1661 Words   |  7 Pageswork, Because My Father Always Said He Was the Only Indian Who Saw Jimi Hendrix Play ‘The Star-Spangled Banner’ at Woodstock,† is the theme of music. Its presence is a faint drumbeat of life, felt throughout the piece. It not only accompanies moments of sorrow, such as when the narrator listens to music while he is longing for his father, but encompasses every variation of emotion available to man, and because of its extraordinary influence on the characters, it takes on human qualities. Through musicRead MoreJimi Hendrix3785 Words   |  16 PagesJimi Hendrix: Reflections of the Man Through the Development of His Albums James McGuire UWC 4, Hampton November 4, 1996 On November 27, 1942,Jimi Hendrix was born as John Allen Hendrix in Washington at Seattle General Hospital. His childhood was not a privileged one, however, he did indulge himself in one particular way: Jimi loved to play the guitar. At first he played an old acoustic, and later a cheap Silvertone electric, which were both strung for a lefty on a right-handed guitar, oneRead More 1960-19701279 Words   |  6 PagesPresident Kennedy was assassinated in 1963, but in 1969 the President Kennedy’s promise was kept as Apollo XI landed on the moon and Neil Armstrong became the first man to set foot on the Moon. It is difficult to determine whether the most extraordinary innovation of 20th-century art was Cubism or Pop Art. Both arose from a rebellion against an accepted style: the Cubists thought Post-Impressionist artists were too tame and limited, while Pop Artists thought the Abstract Expressionists pretentiousRead More The Rose - Janis Joplin and the Lonely Sixties Essay2041 Words   |  9 Pagessticks strongly in my own mind are the passings of many great individuals -- the assassinations of John and Robert Kennedy, Martin Luther King Jr., and Malcom X. The second half of the decade marks itself with the untimely deaths of rock legends Jimi Hendrix, Jim Morrison, and the subject of this essay -- Janis Joplin. [2] After the fifties, Americans were emotionally dead. During the next decade the population would search again for the â€Å"grand ideals† of democracy. The American people wereRead MoreBiography of Jim Morrison618 Words   |  3 PagesCurtis, David Gahan, Henry Rollins, Ian Astbury, Perry Farrell, Scott Weiland, Trent Reznor, Eddie Vedder, Jude Rawlins, Ville Valo, Sully Erna, The Blood, Siouxsie Sioux, and Jeff Martin. There were many great rock and roll artists out their like Jimi Hendrix, Led Zeppelin, Janice Joplin, Keith Richards. But there was something different about Jim Morrison; his poetry was astonishing along with his music lyrics. Morrison was that guy that would push things to the limit, just to see what would happenRead MoreThe Lone Ranger And Tonto In Heaven By Sherman Alexie978 Words   |  4 PagesFistfight in Heaven by Sherman Alexie illustrates the lives of modern Native Americans on the Spokane Indian Reservation and their hardships, which include despair, alcoholism, and poverty. Tribal members hold high hopes for the young who have extraordinary talent while doubting that they will achieve success and watching them succumb to alcoholism. These stories, while sad and gloomy, are told with humor and wit, making the stories bearable to the reader. The grabbing title came to Alexie in a dreamRead MoreThe Revolution Of The Time1159 Words   |  5 Pagesrebellion, that hints that the world was not as free and liberal. This shows another side of the 1960s where the establishment angered the youth. Similarly, the viewer is left asking, how much revolution and changed actually happened during those five extraordinary years, as the exhibition gave off the impression, that the only change was in attitude and style. The exhibition was curated by Geoffrey Marsh, Director of the VA’s Department of Theatre and Performance and Victoria Broackes, a curator in theRead MoreBob Marley : Rock And Roll Hall Of Fame1038 Words   |  5 PagesWhat Is Bob Marley Remembered: Bob Marley was reggae’s foremost practitioner and emissary, embodying its spirit and spreading its gospel to all corners of the globe. His extraordinary body of work embraces the stylistic spectrum of modern Jamaican music - from ska to rocksteady to reggae - while carrying the music to another level as a social force with universal appeal. Few others changed the musical and cultural landscape as profoundly as he. As Robert Palmer wrote in a tribute to Marley upon his

Changes in the Dynamics of Pc Industry Free Essays

Core Competency (CI#1) : Apple design, develop and market numerous product and service lines. They sell their products to education, consumer creative professional, business and government customers. While apple seems to display numerous products and conduct business on different segments, it is legitimate to wonder what the company is really good at? Too much diversity is exactly what crushed Apple during the John Scully days. We will write a custom essay sample on Changes in the Dynamics of Pc Industry or any similar topic only for you Order Now Cannibalization (CI#2): Through January 2005, Apple has opened 102 retail stores. Although these launches are potentially beneficial, Apple stores are hurting the resellers’ business and not all of them will survive. Considering that the company’s resellers still account for more than 50% of its domestic sales, the company is facing the risk of cannibalization and might deeply suffer. High Cash (CI#3): Why is Apple holding so much cash? Having too much cash in reserve might either mean that the company does not know yet how to allocate it or that they may have some risk concerns about future potential investment. Succession (CI#4): Apple is clearly one of the handful of companies where the fortunes are seen to be intricately tied to the person in charge. The star quality and the visionary talents associated with Steve Jobs are certainly contributed to the success of the company. So the news of Jobs’ cancer surgery might lead to a succession problem and compromise the company’s future. I. CURRENT SITUATION A. CURRENT PERFORMANCE Apple achieved a solid performance for the first quarter of 2005 compared to the same quarter 2004 with strong net sales in the Americas segment (+77%) in Europe (+63%) and in Japan (+18%). The Americas segment represents approximately 47% of the company’s total net sales. The increase in net sales in the Americas, Europe and Japan was primarily driven by increased demand of the iPod and the consumer-oriented iMAC. Demand for the iBook products were especially high for the Americas, while peripherals and other hardware were more popular in Europe. The retail segment’s net sales grew to $561 million as compared to $273 million in the same period in 2004, this represents a remarkable 105% increase. B. SRATEGIC POSTURE Mission Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services. Apple’s Guiding Principles O Meet or exceed all applicable environmental, health and safety requirements. O Where laws and regulations do not provide adequate controls, Apple will adopt their own standards to protect human health and the environment. O Support and promote sound scientific principles and fiscally responsible public policy that enhance environmental quality, health and safety. O Advocate the adoption of prudent environmental, health and safety principles and practices by their contractors, vendors and suppliers. O Communicate environmental, health and safety policies and programs to Apple employees and stakeholders. O Design, manage and operate our facilities to maximize safety, promote energy efficiency and protect the environment. O Strive to create products that are safe in their intended use, conserve energy and materials and prevent pollution throughout the product life cycle including design, manufacture, use and end-of-life management. O Ensure that all employees are aware of their role and responsibility to fulfill and sustain Apple’s environmental, health and safety management systems and policy. Goals O Innovation above everything else. O Increase sales in the education segment. O Produce user friendly, good appearance products to get customers â€Å"think Different† and â€Å"think Digital†. O Developing new digital lifestyle consumer, and professional software application O Investing in new products area such as rack-mount servers, RAID storage system and wireless technologies. O Provide a high quality sales and after sales support experience. Strategy Trough the design and the development of its own operating system, hardware and many software application and technologies, Apple strives to bring to its customers compelling new products and solution with superior ease-of-use, seamless integration and innovative industrial design. Apple currently focus on: O Increasing marketing and advertising investment in order to improve product and brand awareness. O Vertical growth strategy: expand the retail segment by opening more retail stores. (CI#2) O Market opportunities related to digital music distribution and consumer electronic devices, including iPod. O Implement a cost leadership strategy to keep up with the competition and be more affordable for the educational segment. O Continue to be the leader in innovation for new technology by implementing a product differentiation strategy. Policies â€Å"Employee diversity â€Å": This policy is a key component and contribute to the success of the company. â€Å"We respect these differences and threat them as an additional value that we incorporate in the way we treat other and approach our customers. † Therefore, Apple apply that each employee is fully responsible for understanding and following this policy. Substance policy† O Apple comply with applicable substance legislation worldwide. O monitor and assess new scientific findings on the environmental impact of substances used in Apple products. O educate our supply chain partners and drive innovations within our supply chain to find alternative materials that improve environmental performance. â€Å"Product Take-Back and Recycling Policy† O Producers should provide a means to facilitate environmentally friendly recycling of their products at the end of electronic products’ useful life. O Consumers should select a disposal method for end-of-life electronics products that does not adversely impact the environment. O Governments should develop a legal framework and public policies to promote appropriate end-of-life management, including environmentally friendly disposal and recycling. O Materials generated from the recycling of our products should be used as feedstock for new products whenever possible. II. CORPORATE GOVERNANCE A. BOARD OF DIRECTORS The Board consists of 6 members, of which 5 are external directors: Board Member-Occupation Audit and Finance committee Nominating Committee Compensation Committee William l V. CampbellChairman Intuit, Inc C Ccc Millard S. DexlerChairman and CEOJ. Crew C C Albert Gore, Jr. Former Vice President of the US C C Steve JobsCEO and Co-founderApple ComputerChairman and CEOPixar Arthur D. LevinsonChairman and CEOGenentech, Inc C Ccc Jerome B. YorkCEOHarwinton Capital Corporation Ccc cc=Chairperson C=Member *Audit and committees members are used to ensure feedback and monitor implementation and compliance. Steve Jobs Co-founder of Apple in 1976, he has played an important role in the development of the personal computer. He also co-founded NeXT Software, inc. and served as CEO until 1997 when NeXT was acquired by Apple. Director since 1997 and currently CEO of Apple and Pixar Animation Studios, Jobs is viewed as a key character for the company. However his strong voice and personality within the company could give him the power to sway the board. (internal) (Advantage/Conflict? ) CI#4 William V. Campbell Director of Apple since 1997, he was also the former CEO and president of Intuit, Inc. Mr. Campbell also serves on the board of directors of Opsware, Inc. His experience and knowledge in business, finance and technology might be valuable for the company, however, he is in direct competition with Apple in the sale of software such as Quickbook. (External) (Conflict) Millard S. Dexler Director of Apple since 1999, he has been Chairman and Chief Executive Officer of J. Crew Group, Inc. since March 2003. Previously, Mr. Drexler was Chief Executive Officer of Gap Inc. from 1995 and President from 1987 until September 2002. (External) Albert Gore, Jr Director since 2003, he was a former Vice President of the United States of America. He has remained an active leader in technology, launching a public/private effort to wire every classroom and library in America to the Internet. Therefore, Gore plays a key role in the implementation of Apple’s products in the educational segment. (External) (advantage) Arthur D. Levinson Director since 2000, he has been President, Chief Executive Officer and a director of Genentech Inc. since July 1995. Mr. Levinson’s experience could benefit apple but his interest may be somewhere else. (External) (Advantage/Conflict? ) Jerome B. York Director since 1997, he is also a director of Tyco International Ltd. nd Metro-Goldwyn-Mayer, Inc. Previously, Mr. York was Chairman and Chief Executive Officer of MicroWarehouse, Inc. , a reseller of computer hardware, software and peripheral products and he also served as a Senior Vice President and Chief Financial Officer of IBM Corporation. Mr. York’s experience in the computer industry might be a big pro for the company. (Ex ternal) ( Advantage) The Board of Apple is composed of a very diverse group of professionals who bring valuable expertise in the areas of technology, biotechnology, finance, turnaround strategies, retail business management, etc. The backgrounds and current â€Å"independent† positions of these members provide a wealth of knowledge and a variety of business perspectives for Apple. However the external activities of some of the members of the board might also be a source of conflict for the company. B. Top Management Management Style 1) Fred D. Anderson-Executive Vice President and CFO 2) Timothy D. Cook-Executive Vice President, Worldwide Sales and Operations 3) Nancy R. Heinen-Senior Vice President, General Counsel and Secretary 4) Ronald B. Johnson, Senior Vice President, Retail ) Peter Oppenheimer, Senior Vice President of Finance and Corporate Controller 6) Jonathan Rubinstein, Senior Vice President, Hardware Engineering 7) Philip W. Schiller, Senior Vice President , Worldwide Product Marketing [pic]Vertrand Serlet, Ph. D. -Senior Vice President, Software Engineering 9) Sina Tamaddon, Senior Vice President, Applications 10) Avadis Tevanian, Jr. , Ph. D. -Senior Vice President, Chief Sofware Techno logy Officer C. Management Style Despite the fact that the company claims to have a partnership management style, I personally believe that Steve Jobs is leading an entrepreneurial style and highly influence the company. CI#4) III. EXTERNAL ENVIRONMENT SCAN A. SOCIETAL ENVIRONMENT 1) Political-Legal Forces O Different countries have different legislations and these in some ways restrict the companies or give opportunities to the company. O NAFTA, European Union and other regional trade open doors to market in Europe, Asia, Latin America that offer enormous potential. O Political uncertainties caused by terrorism activities are directly impacting the overall business of the company. O The company relies on access to patent and intellectual property obtained from third parties. The company might unknowingly encounter infringe issues with existing patents of others. O Beatles lawsuit against the company may negatively affect the company’s reputation. O The company has to comply with the environment regulations such as environment safe disposal or recycling. 2) Socio-Cultural Forces O The computer and internet usage is growing worldwide and is a good source of opportunities for the computer industry. O Customers had become more experienced and computer literate. O Education has become a primordial issue for the new generation, which is a key factor for the company’s business. 3) Economic O In the past year, the industry has been affected by the slow economic and that resulted in low consumer spending. However the current economy shows some sign of improvement, consumer spending and investment might increase as well. O Due to weak economic conditions, the U. S. educational is encountering large budget deficits in many states. This factor has a negative impact over Apple’s sales in the educational segment. O Sales of products that include components obtained from foreign suppliers can be adversely affected by currency exchange rate fluctuations and by international trade regulations (tariffs and antidumping penalties). ) Technology O Technology is evolving at a rapid pace today ,and people appreciate more more advances in their systems and are switching over to new information appliances. O Internet availability and usage is growing and leads to good opportunities for the industry. O The traditional desktop might become outdated by the entrance of new revolutio nary products. O Increasing demand for new technology in schools and professionals. B. TASK ENVIRONMENT Threat of New Entrants: O Medium to High – In the PC market any firm that discovers a new technology that is efficient in terms of price performance is an immediate threat to the industry. However, Established standards, start-up costs and established brands names (Intel, Windows) are difficult to overcome for a new entrant. Threat of substitute products: O High – The new forms of Information appliance like Digital TV / HDTV Digital set- top box Internet screen phones are gaining increasing popularity this might hamper the growth of the PC industry as a whole. Bargaining power of suppliers: O High – Since the industry is highly dependent on component suppliers, a powerful supplier could exert pressure on the market, by supplying components at a higher price to increase his profits. Since Apple is working only with few selected suppliers, the company is running at a higher risk than the average. Bargaining power of buyers: O Low – Due to high number of other suppliers in the industry the customer has the options to take the cheapest and the best. Rivalry among competition: O High – Competition among the giants is fierce, everyone aiming for a larger market share ,intensive price cuts changes. IV. INTERNAL ENVIRONMENT SCAN A. CORPORATE STRUCTURE Apple is organized along functional lines. Apple is structured primarily on a geographic basis. The company’s reporting operating segment are comprised of: 1. The Americas 2. Europe, Middle East and Africa 3. Japan 4. Other: Asia-Pacific (Australia, Asia, and the subsidiary FileMaker, Inc. ) B. CORPORATE CULTURE O Commitment to innovation and product quality O Dedication to hard work and education O Commitment to diversity and to empowering employees O Commitment to safety and conservation of the environment/energy Steve Jobs has a huge impact in the company’s culture. Since Job’s return in 1997, the company has reinvented itself with an array of different colors and styles of computers. The introduction of the Ipod and Itunes largely position the company as an innovative leader. C. CORPORATE RESOURCES 1. ) Marketing Mix a. ) Product Apple is committed to sell original, good looking products that have an easy-to-use interface. The company offers a range of personal computing products, related devices and peripherals, and various third party hardware-products. In addition, the company offers software products (Mac OS X), server software and related solution; professional application software; and consumer, education and business oriented application software. Apple has been very innovative by finding new usages for its Macintosh computer, such as desktop publishing and strong graphics/animation capabilities. The Macintosh’s functionality for managing multimedia files from cameras, DV recorder and MP3 devices has been very popular and successful. The new introduction of Apple’s iPod and the iTune has revolutionize the digital music industry. b. ) Place Apple’s operating segment are comprised of: O U. S. O South America O Europe O Japan O Australia. Recently Apple chose to implement a vertical growth strategy and began xpanding their own retail stores. (CI#2) The company also sells its product via third-parties dealers, or via internet through their own website or through the iTune online music stores. c. ) Promotion In 2003, Apple formed a strategic alliance with PepsiCo. The Pepsi iTune Music promotion calls for people to use the winning code found under the Pepsi’s bottle caps products to redeem songs from App le’s iTunes Music Store. This promotion has already been successful for both companies and increased the awareness of the iTune presence in the market. In 2003, Apple also announced a marketing partnerships With America Online that are aimed at driving iTunes use deeply into the mainstream. Apple and America Online have agreed to put iTunes â€Å"buy this song† buttons next to every song that’s listed in AOL’s music service, which its 25 million subscribers can access. Clicking the button will automatically launch the iTunes music jukebox and begin downloading the song; billing will be handled through the customer’s existing arrangement with AOL. Apple has a joint venture with Hewlett Packard. Apple has produced an iPod for PC users and the success of this product was a good way for the company to capture non-MAC users. The company’ also drew on endorsements from music stars. U2 singer Bono, rap artist Dr. Dre and Rolling Stones singer Mick Jagger each gave a live endorsement of the iChat videoconferencing software. Singer Sarah McLachlan also appeared live to sing several songs and to talk about how she used the iPod. In 2005, Apple Computer has initiated a partnership with Wal-Mart that will soon see the iPod shuffle featured at Wal-Mart discount locations around the country. d. ) Price Apple price is know to be above average in the industry. The company is using a differentiation strategy and focus more on innovation, and quality. This strategy is justifying their premium prices. Lately, however, their new technology and their high cash flow allowed them to lower their price and to offer more discount to certain markets such as the education market. (CI#3) This new pricing strategy may help Apple to better compete with the non-Mac user market but might cause some issue with the brand image/recognition. 2. ) Finance The financial results for the fiscal 2004 fourth quarter ended September 25, 2004. For the year 2004, the Company reported net income of $276 million on revenue of $8. 28 billion compared to net income of $69 million on revenue of $6. 21 billion in 2003. Their net income has increased 400%! Sales to the education market grew 11 percent, bringing its highest quarterly total for that market in seven years. Apple has a strong balance sheet with a lot of cash (CI#3), their inventories have almost double compared to the year 2003. Apple short-term debt and long-term debt have been completely paid, which is a very good advantage for the company. Apple’s activity ratios are very good and improved a lot compared to year 2003. However their ROE and ROI ratios are still low compared to the industry. Income Statement Sep 04 Sep 03 Sep 02 Revenue 8,279. 0 6,207. 0 5,742. 0 Cost of Goods Sold 5,870. 0 4,386. 0 4,021. 0 Gross Profit 2,409. 0 1,821. 0 1,721. 0 Gross Profit Margin 29. 1% 29. 3% 30. 0% Net Income After Taxes 276. 0 69. 0 65. 0 Balance Sheet Sep 04 Sep 03 Sep 02 Cash 2,969. 0 3,396. 0 2,252. 0 Net Receivables 774. 0 766. 0 565. 0 Inventories 101. 0 56. 0 45. 0 Total Current Assets 7,055. 0 5,887. 0 5,388. 0 Total Assets 8,050. 6,815. 0 6,298. 0 Accounts Payable 1,451. 0 1,154. 0 911. 0 Short-Term Debt 0. 0 304. 0 0. 0 Other Current Liabilities 1,229. 0 899. 0 747. 0 Total Current Liabilities 2,680. 0 2,357. 0 1,658. 0 Long-Term Debt 0. 0 0. 0 316. 0 Total Liabilities 2,974. 0 2,592. 0 2,203. 0 Total Equity 5,076. 0 4,223. 0 4,095. 0 Ratios 2004 2003 Industry Liquidity Ratios Current Ratio 2. 58 2. 89 1. 33 Quick Ratio 2. 3 1. 44 1. 1 Profitability Ratios Gross Profit Margin 29. 47% 27. 52% 20. 43% Net Profit Margin 5. 20% 1. 11% 4. 53% Return on Equity (ROE) 8. 8% 1. 63% 20. 3% Return on Investment (ROI) 8. 8% 1. 1% 19. 1% Activity Ratios Inventory Turnover 56. 2 110. 84 81. 4 Asset Turnover 1. 2 0. 9108 1. 8 Leverage Ratio 1. 62 2. 47 3. ) Research and Development Apple consider that RD are critical for the activity of the company. therefore, they are willing to increase investment in RD to keep a sustainable competitive advantage in the industry. According to the company’s Annual Report in 2004: â€Å"In order to remain competitive, the Company believes that increased investment in research and development (RD) is necessary in order to maintain and extend its position in the markets where it competes. The Company’s RD spending is focused on delivering timely updates and enhancements to its existing line of personal computers, displays, operating systems, software applications and portable music players; developing new digital lifestyle consumer and professional software applications; and investing in new product areas such as rack-mount servers, RAID storage systems, and wireless technologies. † New products are a necessity in this industry and seems to be a priority for Apple. New products are not always a success, though. This might explain why Apple seems to be so hesitant in investing its high cash flow into new projects, the company might be afraid by the potential failure of the outcome. (CI#3) 4. ) Operation and Logistics Apple heavily rely on third-parties in the manufacturing and logistics sector. Therefore, the company’s overall performance is greatly dependent on the performance of its distributors. In order to have more control over the quality of the buying experience, Apple has done continual effort to become vertically integrated during these two passed years. Apple work only with suppliers that meet the criteria from their policy (involve commitment to environment, safety and diversity. ) At each period the company performs a detailed review on demand forecasts, inventory, product lifecycle status. 5. ) Human Resources Management (HRM) Apple has over 13,000 employees world wide. Apple believe that employee’s diversity is a key component for the company success. The company expects that all employee will respect the background or cultural differences of their peers. Apple offer great benefits to its employee such has competitive pay, and compensation, insurance coverage, bonuses, substantial product discount, stock purchase and saving/investment plan. The company offers all-level of position such as internship, part-time and entry-level for college student. 6. ) Information Systems Apple has encountered a substantial success by introducing a new digital music device called iPod that can store 1,000 songs and copy a CD in 10 seconds. The continual heavy investment in RD allowed the company to be on the edge of new technology. Online store distribution channel has been very powerful for the company. V. SWOT/TOWS ANALYSIS A. SWOT ANALYSIS Strengths Weaknesses 1. Ease of use 2. Established in the personal computer market3. High Corporate reputation 4. Control over the product (manufacture both the computers themselves and also the operating systems which they run)5. Leader in innovation and product differentiation6. Employee diversity 7. Strategic Alliance (HP)8. Joint venture with Pepsi9. Strong Top management10. Loyal customer base11. Creative style 1. The ease of use has led to some image issues, with some business people regarding the Macintosh as a toy. . High inventory3. Distribution problems4. high prices5. Not IBM compatible, though great strides have been made in connectivity the Macintosh is not transparently compatible. 6. Declining share in educational market7. Too many product lines Opportunities Threats 1. Internet2. Growing industry3. Creating new software markets and selling the hardware into these markets. 4. Demand for innovation5. Employee benefit programs6. Growing educational market (In both higher education and schooling, the Macintosh ease of use and low maintenance costs are attractive. )7. Music downloads from Itune 1. Very intense competition among the industry2. Price competition3. loss of market share4. Potential litigations5. Budget deficits in education6. Technological and prices discontinuity7. Potential increase in supply’s costs B. TOWS ANALYSIS SO1. Focusing on innovation and product differentiation will contribute to the customers satisfaction (S5, O3, O4)2. The diversity of the employees and the employee benefit programs contribute to the high corporate reputation (S3, S6, O5)3. Joint venture with Pepsi and strategic alliance with HP respond to the demand for music download. S7, S8, O7) WO1. The growing educational market should increase Apple’s market share in this segment (W6, O6)2. The growing industry should allow the company to decrease prices (W4, O2) ST1. The high corporate reputation might suffer from the potential litigations. (S3, T4)2. Strong management might overcome the potential litigations. (S9, T4)3. Focus on innovation and product creative style might offse t the low prices of competitors. (S11, T1, T2)4. Innovation will depend on the technological -prices conditions and changes. (S5, T6) WT1. The image issues concerning the ease of use of the machine might contribute to the loss of share. (W1, T3)2. The discontinuity in technology and prices might create some forecasting problems, which could result in excess or shortage of inventory. (W2, W3, T6)3. Competition might take advantage of Apple’s high price. (W4, T1, T2)4. Apple’s high price might lower the amount of educational contracts (W4, T5)5. Not being IBM compatible might lead to loss in market share (W5, T3)6. The broad product line might be endangered by the technology and prices discontinuity. (W7, T6) VI. STRATEGIC ALTERNATIVES AND RECOMMENDED STRATEGY A. STRATEGIC ALTERNATIVES 1. ) Turnaround The company could stop the expansion of their own retail segment in order to maintain a healthy relationship with its third-party distributor and avoid lawsuit. This strategy would also reduce the risks and costs tied to the stores investment. Apple could use its high cash to implement a product development strategy within the market segment they are currently serving. The company could also keep selling its products at a premium price in order to maintain the company’s reputation as an upscale and innovative brand. PROS O Improve relationship with resellers. (CI#2) O Reduce risks O The allocation of the high cash into a product development strategy might ultimately increase the revenue of the company(CI#3) O The premium price might be profitable and the upscale image brand of the company is respected. CONS O No control over the quality of the buying experience procured by the third-party distribution (CI#2) O Potential loss of market share because of the premium selling price O Broad product lines might lead to confusion and extra overhead costs. (CI#1) 2. ) Pause and Proceed with Caution In the Annual Report for 2004, the company saw an increase in revenue and profitability. The introduction of iPod or Itune items have largely contributed to the company’s successful year. The retail segment growth has increased the brand awareness of the company but has led to some conflicts with the resellers. This strategy has to be taken with caution because Their lower price strategy is allowing the company to attract some non-Mac users. During the mid of this year (2005), the company could consider to primarily focus on: the music segment market and the education segment. Apple could also implement a succession plan for the eventual departure of Steve Jobs. The company’s growth strategy has to be taken with caution and compromises with resellers have to be done. PROS O Good financial results O More control over the quality of the buying experience (CI#2) O Better brand awareness O Less confusion among core competency. (CI#1) O Sufficient cash flow to support the discounted prices. (CI#3) CONS O Cannibalization risk is still present (CI#2) O The low prices might discredit Apple’s upscale brand image. 3. ) Vertical Growth The company could decide to do a forward integration, by expanding its own retail store. Apple could use its high cash to finance this investment. The stores are a critical way to leverage Apple’s brand and showcase newfangled digital wares to affluent consumers. PROS O Total control over the quality of the buying experience (CI#2) O High cash can support the investment for the retail segment (CI#3) O Better brand awareness CONS O Dissatisfaction of the resellers(CI#2) O Potential loss of revenue due to cannibalization (CI#2) O The high cash investment is risky, and might have been allocated in a more safety way. CI#3) B. RECOMMENDED STRATEGY Pause and Proceed The last fiscal year has seen improvement for Apple. Profits have increased and the focus has been on innovation, especially in the music segment market. Using the high cash to implement a price strategy appears to be a good idea to compete with the non-Mac users. (CI#3) The brand image might slightly suffer from this st rategy, therefore marketing incentive should be increased in order to sustain Apple’s reputation for high quality and innovative products. The retail segment growth should be implemented with a lot of caution. Apple needs to ease the pain of the resellers by coming up with programs to encourage these longtime partners to help it accomplish goals it can’t achieve on its own. (CI#2) Apple should also primarily focus on the music segment market and the educational segment market in which they have good opportunities. This focus would allow Apple to be more competitive and profitable. (CI#1) Least but not Last, the company should prepare a succession plan in response to the eventual departure of Steve Jobs. (CI#4) VII. IMPLEMENTATION A. WHO? The top management should narrow their focus to two market segment. B. WHAT? Apple’s core competency should focus on the music segment market and the educational segment market in which they have good opportunities. (CI#1) C. HOW? The company has to invest more into these 2 segments and cut some product lines that are not very profitable to the company. D. WHO? As Steve Jobs initiated, the company should keep focusing on a price strategy E. WHAT? By lowering the prices, the company will be able to be more competitive and increase market share. F. HOW? The company can use its high cash to support discounted prices. (CI#3) G. WHO? The top management should decide to expand the retail store. H. WHAT? Improve the quality of the buying experience by having control over the salesperson and collaborate with the resellers. (CI#2) I. HOW? The company can use its high cash to invest in the retail store expansion. The company should also tightly work with the resellers by supporting them through programs and bonuses. (CI#2) (CI#3) J. When? During mid 2005. K. HOW MUCH? The Company’s current strong financial condition and low debt-to-equity ratio will provide the means to accomplish these implementation initiatives in the short-term. In the long-term these measures will be well worth the cost in increased revenue and market share. L. WHO? The board of directors and the top management should prepare a succession plan. (CI#4) M. WHAT? The company has to deal with Steve Jobs eventual departure. N. HOW? Steve Jobs has to delegate some of his power to the top management and he should also implement some training programs. Tim Cook might be a good potential successor. (CI#4) P. WHEN? Right now. VIII. MAINTENANCE AND CONTROL A. The company’s strong financial position should allow the implementation of the strategies stated above. However the investment related to the retail segment growth is very costly and might be risky. Therefore, the company should: O Increase gradually the opening of retail stores. O Assess performance by having Finance and Marketing reviewing â€Å"the numbers â€Å"monthly†. O Spot and immediately address any negative trends The top management should periodically visit stores and gather feedback from line employees. They should also gather feedback from resellers to address expansion issue. B. The company’s focus on the music segment market and the education segment market has to be tightly monitored. O Top management should evaluate on a weekly basis overall performance. Revenue, Profit, ROI) O Feedback forms should also be given to customers to maintain good relations and to spot market trends early. Works Cited 10-Q for Quarterly Period Ended December 25, 2004 http://www. apple. com/investor/ Apple Governance http://www. apple. com/investor/ Apple Financial Analysis http://www. hoovers. com/ Diverse Articles on Apple http://www. businessweek. com Leave a Reply You must be logged in to post a comment. VISION STATEMENT â€Å"Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them. † Explanation of vision Apple lives this vision through the technologies it develops for consumers and corporations. It strives to make its customers masters of the products they have bought. Apple doesn’t simply make a statement. It lives it by ensuring that its employees understand the vision and strive to reach it. It has put systems in place to enable smooth customer interaction. It has put objectives in place to continuously move forward; implemented strategies to fulfil these objectives; and ensured that the right marketing, financial and operational structures are in place to apply the strategies. MISSION STATEMENT Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings. † Page 15 of 54 [pic][pic][pic] The PC Industry We can glean Insight into the history and composition of the PC Industry from its eponymous title. In the late 1970s, as Wozniak and Jobs were starting Apple computer, personal computers were an emerging product. The following chart (Reimer) gives an overall view of the major market players since the mid-1970s. PC Share of Market 0% 10% 20% 0% 40% 50% 60% 70% 80% 90% 100%Year 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 ShareofMark et IBM SOM Apple II SOM Mac SOM Amiga SOM C64 SOM TRS 80 SOM By 1983, the market share of the Apple II fell to 8% while the PC had 26%. Market share of Macintosh peaked at slightly more than 10% in the early 1990s and has since tapered to between 2-3%. The IBM PC and its clones became the standard due to the success of the open nature of the PC. This allows product developers to offer vastly more products for the platform. Some argue that not licensing the Mac OS was a mistake. Bill Gates and Microsoft were encouraging Apple to license their OS in the early 1980s, because they were developing software for Apple and had much riding on the success of the company. When Apple did not license, Microsoft began developing their operating system, Windows. (Linzmayer, 169-75, 245-9) Page 16 of 54 [pic][pic][pic] The Online Music Industry While Apple clearly dominates the online music industry, the battle for domination is not over. Although digital music sales are growing rapidly, the Recording Industry Association of America (RIAA) states that digital sales account for only 4% of all music sales. Borland) Analysts at Forrester (Bartiromo) and Gartner (Bruno) validate this. Apple’s sales are between 66% and 75% of downloads and 80% of music players. (Bruno) Apple is part to a suit alleging monopolistic practices concerning their market share dominance of players and downloads. (Grundner) The other players in the download market are (the revised) Napster, Yaho o Music, Rhapsody, and illegitimate file-sharing services. Portable music players competing with the iPod include those made by Creative, Samsung, iRiver, and Sony. A major point of contention between these services and player manufacturers is the control of a variety of incompatible Digital Rights Management (DRM) schemes. The Future of Apple Personal Computers – A Shift in Strategy Apple has historically taken a far different path than the traditional Windows and Intel combination. Microsoft provides the Windows operating system to separate downstream hardware producers such as Dell. Apple vertically integrated both the operating system software and hardware completely under Apple. A consumer running Microsoft Windows can choose from a myriad of systems based on the Intel processor, while a consumer running Apple’s OS X must purchase Apple hardware. Page 17 of 54 [pic][pic][pic][pic] Apple is adjusting this strategy by migrating their microprocessors from IBM and Motorola PowerPC to Intel. Analysts believe that the Intel-based Macintosh may be able to run Microsoft Windows applications by the end of 2006. (Burrows) In addition to switching processors, Apple positioned their computers as an immediate option for the traditional Microsoft Windows user. With Apple Boot Camp, users may now use Mac OS X or Windows on an Apple computer. (Sutherland) Figure 1: Apple Boot Camp – Allowing Mac OS X or Windows By allowing users to run Windows on an Intel Mac, Apple reduced the switching costs for traditional PC users. Apple may steal away customers that are willing to pay a premium for a system that runs both Windows and Mac OS X. Figure 2: IBM PowerPC Processor, Intel Processor Core Duo / Pentium M Page 18 of 54 [pic]Apple continues to retain a strategic option to license its technology to clone makers such as Dell. Past attempts at licensing Apple technology (to IBM, Gateway, and others) failed on accord of Apple’s rigid demands. Many technology leaders (such as a 1985 letter by Bill Gates to Apple CEO John Sculley) criticized Apple for keeping a closed architecture. Apple cofounder Steve Wozniak criticizes this strategy, â€Å"We had the most beautiful operating system, but to get it you had to buy our hardware at twice the price. That was a mistake. † (Linzmayer, 245-57) Whether Apple would be willing to pursue this reversal of vertical integration is unclear. Although such a move would cannibalize a portion of Apple’s own hardware sales, it would also provide royalty-based revenue that could approach $1 billion annually. (Burrows) Jobs traditionally sided against licensing Apple technology. He referred to Mac clone producers as â€Å"leeches† and he personally killed Power Computing (a Mac clone producer) by terminating their license in 1997. (Linzmayer, 255) Apple in the Living Room Apple’s iPod and iTunes are a powerful combination that fosters a network style of increasing returns. (Barney, 124) By selling iPods, Apple increases the consumer demand for music from iTunes. By placing more musical choices on iTunes (including less popular songs that appeal to niche audiences), there is more demand for iPods. Apple had 70% of the legal music download market in early 2005. (Yoffie) Apple is shooting for the digital living room of the future. For example, Apple just released a â€Å"boom box† portable version of the iPod. This iPod (the iPod Hi-Fi) comes with a remote control. Instead of forming a strategic alliance, Apple engineered the iPod Hi-Fi and designed it with high-fidelity features. (Burrows) Apple is clearly trying to develop a stronger core competency in the entertainment area. Page 19 of 54 [pic][pic] Figure 3: The Apple Hi-Fi Apple may also release an Apple-branded cell phone and iPod combination device by the end of 2006. (Burrows) This product would again position Apple as a â€Å"second mover† responding to Palm’s Treo and Verizon’s VCAST technology. Strategic Alliances and Entertainment Jobs had the early strategic vision to complement computing with movie entertainment. After founding NeXT, he personally acquired a majority interest in the young movie company Pixar in February 1986. (Linzmayer, 219) Jobs went on to invest ? of his personal wealth into Pixar. In 1995, Pixar solidified its position within animated movies with the debut of Toy Story. Grossing $358 million worldwide, it became the 3rd-largest grossing animated movie in history. (Linzmayer, 222) After this success, Jobs took Pixar public and negotiated far better terms with Disney. Later successes included Toy Story 2, Monsters Inc. , and Finding Nemo. Ironically, Jobs stated in the November 23, 1998Business Week, â€Å"I Think Pixar has the opportunity to be the next Disney – not replace Disney – but be the next Disney. † (Linzmayer, 222-4) The alliance between Pixar and Disney has remendous potential for economies of scope. As CEO of Apple and Disney’s largest shareholder, Jobs is the strategic link between Disney, Page 20 of 54 [pic][pic] Apple, and Pixar. Opportunities include combining the animated movie expertise of Disney and Pixar, as well as sharing the content of Disney’s ABC or ESPN networks over Apple’s digital offerings. (Burrows, Grover, and Green) A current example of the fusion between Disney, Jobs, Apple, and technology is video on the iPod. Disney’s Desperate Housewives was one of the first television programs available for purchase and download to the newer video-enabled iPod. There are concerns about whether these synergies will come to fruition. There are fears that the personality and style of Jobs may conflict with Disney, and that Disney CEO Iger could be â€Å"Amelioed† — driven out of office by Jobs in a manner similar to how Jobs drove Amelio out of the CEO post at Apple. (Burrows, Grover, and Green) EXTERNAL ANALYSIS Technological Environment Brand Awareness – Style at a Premium Apple’s products are trendy and stylish. After Jobs returned in 1997, Apple retained designer Jonathan Ive to differentiate their computers from the typical beige box. Ive’s design of the iMac included clear colorful cases that distinguished Apple computers. (Linzmayer, 295-6) Apple’s iPod (with the trademark white ear buds and simple track wheel) commands a 15%-20% premium over other MP3 players. (Yoffie) Apple and Pixar limit the number of computer products and movies that they sell. Product differentiation with focused quality and style also extend to the Jobs Pixar – â€Å"Pixar’s executives focus on making sure there are no ‘B teams,’ that every movie gets the best efforts of Pixar’s brainy staff of animators, storytellers, and technologists. † (Burrows, Grover, and Green) Page 21 of 54 pic][pic][pic][pic][pic] Figure 4: The Stylish Design of the iMac and Mac Mini Apple positions its Macintosh computers as higher quality and higher price. HP, Dell, and other PC manufacturers are pricing many systems under the $1,000 threshold. â€Å"Apple is struggling to meet demand for its new MacBook P ro laptop despite a $1,900 price tag that is nearly twice that of garden-variety rivals. † (Burrows) Apple has only recently entered the low-end (below $500) consumer market with the Mac Mini. Although the Mac Mini is a base model with few features, it comes encased in a very small and distinctive package. Apple portrays this computer as â€Å"Small is Beautiful†. (Apple) Likewise, the iPod Shuffle was Apple’s first entry into the lower-end ($100 range) of flash- memory-based portable music players. Interoperability Although Apple competes directly with Microsoft for operating systems, the release of iTunes for Windows in 2002 was a key strategic move. This decision expanded the potential customer base to nearly all personal computer owners, even though Apple only has 2%-3% of all personal computer sales. (Yoffie) Conversely, Apple depends on Microsoft for a version of Microsoft Office. As the most widely used office suite of applications, Macintosh users rely on Office to correspond with companies that standardized on Windows. This is from a strategic alliance between Apple and Microsoft after Jobs returned in 1997. (Linzmayer, 290) Page 22 of 54 [pic][pic][pic] Apple’s iTunes service has a technological hook (asset specificity) to Apple’s iPod. Although versions of iTunes exist for both Apple and Microsoft operating systems, the iTune’s AAC file format prevents other portable music players (such as iRiver or Samsung) from playing purchased songs. (Yoffie) Technology and the Digital Lifestyle Apple not only dominates the music player market, its iLife suite provides consumers with easy-to-use software for music and video composition. With â€Å"podcast† a household word, Apple’s Garage Band application makes the recording of podcasts and music very easy. (Boddie) Figure 5: The GarageBand Music and Podcast Application Page 23 of 54 [pic][pic] Regulatory Environment While introducing new technologies, there is a persistent threat of legal action by competitors. For example, Apple sued Microsoft in 1988 (settled in 1997 for an undisclosed amount) for perceived similarities between Microsoft Windows and Macintosh audiovisual works. Linzmayer, 172-4) Microsoft has generally been the focus for government antitrust charges (such as U. S. v. Microsoft) (US DOJ, 2006). Both federal and state governments assert that Microsoft’s dominance blocked fair competition within the software industry. This is an advantage for Apple, because its operating systems are a vi able substitute for Windows. Furthermore, Microsoft’s continued support for Office for Macintosh reduces the perceived level of market monopoly and abuse. (Linzmayer, 290-1) Manufacturers will continue to trespass on Apple’s intellectual property. For example, the company tex9 released an open source music program called xtunes that was very similar to iTunes. In 2002, Apple took legal action against tex9, who then altered the program and renamed it sumi (pronounced, â€Å"sue me†). (Linzmayer, 300) Legal threats can surface from somewhat unusual sources. Apple Corps Ltd. is the London-based company that owns the rights to the music of the Beatles. Paul McCartney and Ringo Starr recently sued Apple over the use of the Apple logo in iTunes, claiming that it violated Apple’s agreement not to produce music under an apple-based logo. Associated Press) Research and development is a key component to Apple’s sustained competitive advantage. Apple is currently taking legal action against several popular technical web sites for releasing proprietary product research. Sites such as appleinsider. com have allegedly posted verbatim content from documents protected by employee non-disclosure agreements. Page 24 of 54 [ pic][pic][pic] (McCullagh) Release of critical insider information could give Apple’s competitors a jump in producing rival products. Industry Analysis Using Porter’s Five Forces Model Apple operates in two primary industries: †¢ Computing – Hardware and Software †¢ Delivery of Entertainment and Media Apple has always been under intense competition within the computer, software, and entertainment industries. â€Å"Looking to 2005†¦ Every time that Apple had jumped into the lead in a product category during the past two decades, it had had difficulty in sustaining its leadership position. † (Yoffie) We use Porter’s Five Forces Model to understand why Apple’s industries are so competitive. Figure 6: Porter’s Five Forces Model Page 25 of 54 Threat of New Entrants Bargaining ower of Suppliers Threat of Substitutes Bargaining power of Buyers Level of Threat in an Industry [pic][pic] Figure 7: Summary of Industry Threats (Computer Equipment and Entertainment Distribution) Type and Severity of Threat Organization Examples Entry – High Threat Verizon Streaming audio and video with V CAST. Amazon On demand online serv ices to purchase music (similar to iTunes). Google They make everything. The â€Å"Next Google† New entrants with disruptive technology. Rivalry – High Threat Microsoft Windows Operating System, Windows Media Player for playing music and video. Linux Competition to Mac OS X Operating System. Napster, Rhapsody Online music sources – alternatives to iTunes Music Store. Dell, HP, Lenovo Alternate sources for computer hardware. iRiver, Samsung, Creative Small, stylish MP3 Players. DreamWorks Animated movies. YouTube. com Online video. Substitutes – Moderate Threat XM, Sirius Satellite Radio for music. XBox, PS2 Entertainment Media, Media and Music. Various Internet Streaming Radio and Podcasts. Music CDs, DVD- Audio and SuperAudio CD Alternative means to acquire music. Broadcast, Cable, Satellite, NetFlix, TiVo, Theatres Alternative sources for video. Suppliers – High Threat Motorola, IBM, Intel, Samsung Suppliers of Processors and computer memory. Microsoft Strategic Alliance / Supplier of Office for Mac. The Big Five – BMG, EMI, Sony, Universal, and Warner Sources of music. Will they raise prices and break the dollar per song model? Some in the record industry resent Apple’s distribution model. â€Å"Apple reaps billions from selling its hit music player, but there are sparse profits from the songs being sold over the Net. † (Burrows, Grover, and Green) Disney, ABC, NBC, CBS, Fox, Pixar, Sony Suppliers of Television and Movies. Will they sign exclusive contracts with other online services? Note that this threat is reduced for Disney / Pixar. Buyers – Moderate Threat Consumers and Illegal peer-to-peer file sharing Consumers share music using peer-to-peer networks without paying for music. Distributors Apple retailers may pressure for lower prices or better terms. For example, the release of the Apple Store in 2001 â€Å"infuriated longtime independent Apple retailers that didn’t appreciate Cupertino cannibalizing their sales. † (Linzmayer, 300) Consumer Attitudes and Behaviors Consumers or businesses may reduce spending on personal computers or non-essential (potentially high elasticity of demand) music players if they fear economic downturns. Consumer Refresh Consumers and businesses may continue to use previous-model iPods and Page 26 of 54 [pic][pic] Cycles Macs rather than upgrade to current iPods, iMacs, or OS Page 27 of 54 [pic]The total industry threat for the industry space that Apple occupies (computer equipment and distribution of entertainment) is a high threat industry. Apple must continue to pursue product differentiation (i. e. he style and ease-of-use of an iPod) and economies of scope (i. e. offering ABC television shows on iTunes) to maintain their sustained competitive advantage in this industry. Which External Threats are Most Significant †¢ Computer Hardware and Software: Open Source software such as the Linux Operating System and Open Office applications threaten both Apple and Microsoft. The low (often, free) cost of the software may allow it to overtake Apple and Microsoft, especially in developing markets such as China. †¢ Music Products: Major online retailers such as Amazon are considering entry into the online music market. With a wide internet presence and a household name, Amazon could present a formidable challenge to Apple. If the major record labels (Universal, Sony BMG, EMI, and Warner) negotiate better terms with new competitors to iTunes, Apple may be unable to provide some of the music content that they currently offer. The major music labels dislike Apple’s dollar per song pricing. They would prefer to earn higher profits with â€Å"variable pricing†. (Wingfield) With variable pricing, the most popular songs would be greater than $1, and less popular songs would be less than $1. Although the labels recently renewed their contracts with Apple, there may be provisions that allow future changes in the pricing model. (Wingfield and Smith) †¢ Suppliers: The recent shift to Intel processors could present a significant threat to Apple. With only two companies (Intel and AMD) producing Intel-compatible processors, there is a strong potential for tacit collusion and oligopoly power between these suppliers. Apple purchasing must now directly compete with HP, Lenovo, and Dell. If shortages or Page 28 of 54 [pic][pic] exclusive agreements materialize, Apple could face problems with obtaining raw materials. Apple should consider additional sources such as Advanced Micro Devices (AMD). Figure 8: CPU Market Share Additional External Threats Security Apple software, like all large software products, has security vulnerabilities that hackers may exploit. A significant exploitation in the future could damage many businesses and households using Apple computers. This would affect future customer purchasing decisions. Apple enjoys a competitive advantage, because their OS X is mature and stable due to its basis on BSD Unix. In fact, â€Å"computer security folks back at FBI HQ use Macs running OS X†. (Granneman) Page 29 of 54 pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic]Ads by Google |Free Whitepaper | |Gain competitive advantage | |using predictive analytics | |www. sas. com/uk/retail | |SPSS Predictive Analytics |Learn To Use Predictive Analytics | |In This Free SPSS White Paper. | |www. cognos. com/SPSS_analytics | |SWOT Analysis Diagrams | |Easy SWOT Diagram Software | |See Examples. Free Download! | |www. SmartDraw. com | pic][pic][pic][pic][pic][pic]A Strategic Analysis of Apple Corporation DownloadPrintMobileCollectionsReport Document Report this document? Please tell us reason(s) for reporting this document Top of Form [pic] [pic] [pic]Spam or junk [pic]Porn adult content [pic]Hateful or offensive If you are the copyright owner of this document and want to report it, please follow these directions to submit a copyright infringement notice. 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[pic] Info and Rating Reads: 46,219 [pic] Uploaded: 02/09/2009 Category: School Work Rated: pic][pic][pic][pic][pic](28 Ratings) course information mck54321@gmail. com inc analyse strategy summary macintosh computers organisational objective (more tags) course information mck54321@gmail. com inc analyse strategy summary macintosh computers organisational objective avac strategic control business activities term strategy industries case profitibility economic relative ideas (fewer) Follow mahantesh123 [pic][pic][pic][pic][pic][pic][pic][pic]Sections show allcollapse « prev | next  » †¢ EXECUTIVE SUMMARY †¢ HISTORY OF APPLE †¢ The PC Industry †¢ The Online Music Industry The Future of Apple †¢ Apple in the Living Room †¢ EXTERNAL ANALYSIS †¢ Technological Environment †¢ Interoperability †¢ Technology and the Digital Lifestyle †¢ Regulatory Environment †¢ Industry Analysis Using Porter’s Five Forces Model †¢ SWOT Analysis †¢ Threats †¢ Financial Analysis †¢ Stock Price Performance †¢ Profitability Measures †¢ Product Unit Sales †¢ 2002 Product Sales †¢ 2005 Product Sales †¢ Strategy †¢ Product Differentiation †¢ Strategic Alliances [pic]Share Embed Related Documents PreviousNext 1. 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Modern Middle East

Question: Did World War I mark the end of an era in Middle Eastern history? Why or why not? Answer: First World War saw the end of Ottoman Empire. Ottoman Empire was one of the premier power focal points in that time. The kings of Istanbul and Syria were the key decision-makers in the Arab region. Post world war created dependent states in Arab region of the Ottoman territories because of western imperialism. The involvement of empires in the war and all the Arab nations entered the war pitted against the British, French and Russians. Arab people had lived under Turkish domination for nearly five hundred years. Nevertheless, at the time of war German armies were taking the charge of Ottoman troops. This misled the Ottomans and particularly the Arabs who were religious more than any Nationals were. The ceasefire saw endless bloodshed of Arab East. The conflict had further led to a split between Sunnis and Shiites of Arab (Gee, 2014). The war changed an entire era of Middle Eastern history. A large number of people shifted to military service and this lead to a civil oriented government in that region. It also recognized the women rights and initiated the practice of divorce in the ground of polygamy. The Muslim sovereignty was interrupted and warned the Muslims. They said they would face extinction if they did not unite. Sharif Hussein declared his rebellion against Ottoman Empire in early 1916. He sent out ten letters to the Arab empires and wished to create a new united Arab kingdom. The response proved a failure and only a few tribal groups supported Sharif Hussein, but absolutely no Arabs flocked to Hussein's side. Hussein only wanted to be a leader of greater Arab region free of Ottoman Empire. In the proceeding of war, British forces captured Jerusalem and Ottoman residents collapsed. British promised to Hussein of favoring him of forming Arab kingdom, but the promise fell short. After the World War I the B ritish promise was not applied. Hussein again announced himself the Caliph of Arab territory but like an early decade, no one took his pretensions seriously. It can be concluded that Arab revolt was a major event in Middle Eastern history. It symbolically ended the century-long Ottoman domination. It practically helped in the rise of European imperialism instead of a cause of disagreement between Arab and the Turkish Muslims (Brennan, 2014). References: Brennan, K. (2014).The First World War and the End of the Ottoman Order. Mason Crest. Gee, J. (2014). The Ottoman Empire and World War I: It Could All Have Been Very Different...The Washington Report on Middle East Affairs,33(7), 24.