Question

Please provide an Internal Environment Analysis for Apple Inc. including the following: a. The Organization’s Resources, Capabilities, Core Competencies, Distinctive Competencies (or Competitive Advantages: determine using the Four Criteria Test), and Supply and Distribution Chains should be addressed.

b. Financials – Key business financial strength statistics (e.g. liquidity); identify any significant trends (5 year; include competitor figures where relevant).

c. Note: The concepts of Strengths, Weaknesses, Opportunities and Threats should be addressed somewhere in the paper, but necessarily as a SWOT chart.

Answer 1

answer-

APPLE INC.

A- Organization’s Resources, Capabilities, Core Competencies, Distinctive Competencies (or Competitive Advantages: determine using the Four Criteria Test), and Supply and Distribution Chains should be addressed

internal analsis helps the company to known its strenghts & weaknesses in terms of its resources, capabilties & core competencies etc.

apple’s most important resources and capabilities are Steve Jobs, the CEO, and theintegrated system of hardware and software that the firm has developed and successfullymarketed to derive value. While Apple’s designers, programmers, and engineers each represent key resources the ability of the firm to exploit their abilities to create their entire software/hardware ecosystem is the firm’s key capability. Taken each individually, the resources only represent competitive parities andtemporary advantages. The combination is their key capability that has established asustainable and ongoing competitive advantage and above average performance within the industry.

Apple tops many retailers in in-store sales, generating $4,032 per retail square foot per year, beating otherretailers like Tiffany & Co. at $2,666 and Best Buy at only $930.

Apple has outsourced all of its manufacturing processes to OEM partners in China, likeFoxconn and Hon Hai Precision Industry while focusing on design internally.

Four Criteria Test-

VALUABLE	its CEO steve job is most valuable & talented Software Development Team & supply chain distribution
RARE	its technology & industrial Design Capability
COSTLY TO IMITATE	tailored Hardware/Software Systems
ORGANIZATIONAL PROCESS	its organization policies & culture to harness above compentancy.

b-. Financials – Key business financial strength statistics (e.g. liquidity); identify any significant trends (5 year; include competitor figures where relevant).

Fiscal year is October-September. All values USD millions.	2014	2015	2016	2017	2018	5-year trend
Sales/Revenue	183.24B	231.28B	214.23B	228.57B	265.81B
Cost of Goods Sold (COGS) incl. D&A	112.55B	142.26B	131.51B	141.7B	163.83B
COGS excluding D&A	104.55B	131.76B	121.71B	132.3B	154.53B
Depreciation & Amortization Expense	8B	10.5B	9.8B	9.4B	9.3B
Depreciation	6.9B	9.2B	8.3B	8.2B	-
Amortization of Intangibles	1.1B	1.3B	1.5B	1.2B	-
Gross Income	70.69B	89.03B	82.72B	86.87B	101.98B

	2014	2015	2016	2017	2018	5-year trend
SG&A Expense	18.03B	22.4B	24.24B	26.84B	30.94B
Research & Development	6.04B	8.07B	10.05B	11.58B	14.24B
Other SG&A	11.99B	14.33B	14.19B	15.26B	16.71B
Other Operating Expense	-	-	-	-	-
Unusual Expense	-	-	(548M)	-	-
EBIT after Unusual Expense	-	-	59.03B	-	-
Non Operating Income/Expense	(585M)	3.7B	(200M)	1.18B	(585M)
Non-Operating Interest Income	1.8B	2.92B	4B	5.2B	5.69B
Equity in Affiliates (Pretax)	-	-	-	-	-
Interest Expense	384M	733M	1.46B	2.32B	3.24B
Gross Interest Expense	384M	733M	1.46B	2.32B	3.24B
Interest Capitalized	-	-	-	-	-
Pretax Income	53.48B	72.52B	61.37B	64.09B	72.9B
Income Tax	13.97B	19.12B	15.69B	15.74B	13.37B
Income Tax - Current Domestic	9.48B	13B	8.64B	8.1B	41.98B
Income Tax - Current Foreign	2.15B	4.74B	2.11B	1.67B	3.99B
Income Tax - Deferred Domestic	3.01B	3.19B	4.91B	5.98B	(33.77B)
Income Tax - Deferred Foreign	(658M)	(1.81B)	33M	(16M)	1.18B
Income Tax Credits	-	-	-	-	-
Equity in Affiliates	-	-	-	-	-
Other After Tax Income (Expense)	-	-	-	-	-
Consolidated Net Income	39.51B	53.39B	45.69B	48.35B	59.53B
Minority Interest Expense	-	-	-	-	-
Net Income	39.51B	53.39B	45.69B	48.35B	59.53B
Extraordinaries & Discontinued Operations	-	-	-	-	-
Extra Items & Gain/Loss Sale Of Assets	-	-	-	-	-
Cumulative Effect - Accounting Chg	-	-	-	-	-
Discontinued Operations	-	-	-	-	-
Net Income After Extraordinaries	39.51B	53.39B	45.69B	48.35B	59.53B
Preferred Dividends	-	-	-	-	-
Net Income Available to Common	39.51B	53.39B	45.69B	48.35B	59.53B
EPS (Basic)	6.49	9.28	8.35	9.27	12.01
Basic Shares Outstanding	6.09B	5.75B	5.47B	5.22B	4.96B
EPS (Diluted)	6.45	9.22	8.31	9.21	11.91
Diluted Shares Outstanding	6.12B	5.79B	5.5B	5.25B	5B
EBITDA	60.66B	77.13B	68.28B	69.43B	80.34B

c- SWOT ANALYSIS-

STRENGHTS	nnovative products,Leadership position,Brand equity Design & Technology,Distribution, its CEO Steve jobs, Consumer focus
WEAKNESSES	Incompatibility – A key issue in Apple as a company is that many of its products are incompatible with third-party software / accessories, HIGH prices, Dependency on few products
OPPORTUNITIES	NEW product lines, Technological advancement
THREATS	competititors like china mobile manufacturers, government regulations etc.

*hope above answer would help you.good luck & rate.