Apple Inc. 2015 Strategic Choices

Apple Inc. 2015 Strategic Choices

Based on market capitalization, Apple is the world’s largest corporation. This company is the manufacturer and seller of the world’s most popular smartphone, the iPhone. The company also sells other products and services, such as Mac computers, iPads, and several internet services (David & David, 2017). To get to its top position, Apple has had to make some effective strategic decisions, which have put the company on the global map. One of the reasons behind the success of Apple products is that the company has adapted its strategies to cultural, political, ecological, and ethical considerations.

Cultural Considerations

            A business, especially one that serves a diverse market, needs to be able to adapt to the cultural environment to succeed. Therefore, businesses often consider cultural factors when developing their strategies to appeal to diverse groups of people. Knowledge and consideration for other cultures help a business design its products and marketing in a way that appeals to diverse groups of people. However, Apple’s strategic decisions have been significantly different from the expected norm for most businesses. Instead of this company shaping its strategy according to the market’s culture, it positions itself to be the creator of the culture. The company makes high-end phones at a premium price that makes its smartphones to be viewed as luxurious. As a result, the company has created an environment where having an iPhone or an Apple product is viewed as luxurious. Therefore, most cultural groups easily follow the trends set by Apple.

Political Considerations

            There are many political factors that can affect a business’s performance. For a business to be successful, it must develop a strategy that considers the potential impact of the political environment within which the company operates. Apple’s strategy has been influenced by political factors. For example, recent trade disputes between the United States and China may affect the company’s strategy. Apple’s supply chain strategy was designed to minimize production costs by choosing offshore production. However, the company may be forced to change this strategy if the United States government proceeds to make production in China more expensive.

Ecological Considerations

            Businesses ought to consider the impact they have on the environment. Ecological policies created by the government also affect the strategies that businesses can make in relation to their operations. Apple’s strategy has included some ecological considerations aiming at helping the company to make a contribution to sustainable development. For instance, the company makes some of its products using recycled raw materials to reduce its negative environmental impact. For instance, Apple reports that the MacBook Air and Mac Mini are made from recycled aluminum to prevent more production of non-biodegradable substances (Apple, 2019).

Ethical Considerations

            Ethical considerations are important for a business, especially when operating on an international scale. Business ethics remain important in creating an environment that is favorable for the business, its stakeholders, and the community in general. While Apple is performing well financially, it has been a target for its appalling ethical conduct in relation to the treatment of its employees. The company has been criticized for several unethical practices, such as forcing overtime and violating labor standards at its production plants in China (Hayoun, 2017).

References

Apple, Inc. (2019). Environment. Retrieved from: https://www.apple.com/lae/environment/

David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases. Pearson.

Hayoun, M. (2017). Apple’s Ethics Dilemma in China. Retrieved from: https://psmag.com/economics/apples-ethics-dilemma-in-china

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Apple Inc. 2015 Strategic Choices

Based on the Apple, Inc. case, your Web search of the current news, and the discussion in the textbook on culture, politics, and governance issues, cite examples of where you think Apple, Inc. has adapted its strategies to cultural, political, ecological and ethical considerations. What role should the board of directors play, or has the board played, in choosing the strategy?