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Yr12 Business Studies > Case Study: Apple > Flashcards

Case Study: Apple Flashcards

1
Q

Operations: Cost leadership

A

Economies of scale used by Apple’s outsourcers

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2
Q

Operations: Good/service dif.

A

iOS, quality

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3
Q

Operations: Tech.

A

Highly competitive market, ongoing issues w/ iPhone X face recon.

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4
Q

Operations: Legal Regs.

A
  • Ongoing battles w/ Samsung, both companies claiming IP infringement
  • overworking FOXCONN workers
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5
Q

Operations: Govt. policies

A
  • Trump’s tariffs on China import
  • ^2019, caused global eco. ‘shockwave’
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6
Q

Operations: Flexibility

A
  • 2014, iPhone6/6+ release w/ larger screens ~ response to competitors phones + Asian market demands
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7
Q

CostOperations:

A

Vertical integration
- (2019 AAPL purchased Intel’s 5G department of $1B-USD). + Using cheaper suppliers (Swapping Samsung for TSMC for the phone memory, worth $10B-USD/yr)

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8
Q

Operations: Design/Dev a New prod/service

A

2021, $21.91B-USD spent on R&D

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9
Q

Operations: Logistics

A
  • inputs (var. parts of iPhones) are sources from a global web of suppliers, delivering to Apple’s outsourcing partners (FOXCONN etc)
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10
Q

Operations: Global srcing.

A
  • Apple is known to buy a large amount of one component, to buy out competitions stock
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11
Q

Operations: Leading edge tech.

A
  • FOXCONN reduced employees from 110,000 to 50,000 through induction of robots in factories
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12
Q

Operations: Global issue ~ Global sourcing

A
  • Covid; 24th April 2022: Apple expects to take a hit of up to $ 8 b from supply chain shortages and factory shutdowns in China…Supply constraints caused by Covid-related lockdowns and industry-wide silicon shortages were identified as the key disruptors, along with declining customer demand in China.
  • Silicon shortages, declining customer demand in China, COVID factory shutdowns in China
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13
Q

Marketing: Selling approach

A

iPhone is seen as a high quality product

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14
Q

Marketing: Psychological

A

Cheaper iPhone version, iPhone 5c, plastic back etc, is an example of this

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15
Q

Marketing: Economic

A

In COVID, iPhone SE was updated to meet concern consumers re; cost of living

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16
Q

Marketing: Gov.

A

Launch of iPhone 6/6+ delayed in China due to gov concerns re privacy

17
Q

Marketing: Decep. misl. adver.

A

2015, law suit against AAPL ~ intentionally slowing iPhone 4 users via software updates

18
Q

Marketing: Estb. market obj.

A

AAPL; increase market share in India by 2% in next yr. by offering discounts on older iPhones and payment in installments

19
Q

Marketing: Segmentation; Demographic

A

Low-cost iPhone (SE) is aimed at dev. countries.

20
Q

Marketing: Segmentation; Geographic

A

highest demand for smartphones in recent yrs have been in ASIA.

21
Q

Marketing: Segmentation; Psychographic

A

iPhones viewed as a status symbol

22
Q

Marketing: Branding

A

Quality, design, appearance, OS, apps etc

23
Q

Marketing: Global Branding

A

AAPL most val. brand in world, 2022

24
Q

Marketing: Global pricing

A

2016, depreciation of Euro-VS-USD led to 30%inc in iPhone price in France

25
Q

Marketing: e-Marketing

A

65% of a person’s individual media consumption is spent on a mobile device

26
Q

Finance: Retained profits

A

The value of Apple’s retained profits has significantly declined in recent years, from 66% of shareholder’s equity in 2018 to 9% in 2021.

27
Q

Finance: Equity sources

A

Apples Debt:Equity ratio has increased sign. in recent yrs. (Liabilities increased, 31% decrease in owners’ equity)

28
Q

Finance: Equity sources

A

Apple’s level of debt compared to owner’s equity (gearing) has increased significantly in recent years (from 107% in 2014 to 456% in 2021)

29
Q

Finance: Infl. of Gov.

A

AAPL’s tax haven in Ireland (<1% tax rate) –> had to pay back $13B-Euro.

30
Q

Finance: DebtVsEquity Financing

A

Historically, Apple had low gearing, however the company has become highly geared in response to record low interest rates in recent years. Liab incr. nearly 400% in past decade.

31
Q

Finance: Cash flow

A

Overall, Apple’s holding of cash has declined significantly over the 3-year period of 2019 to 2021.

32
Q

Finance: Inventories

A

Apple uses FIFO + JIT

33
Q

Finance: Payables

A

Apple’s accounts payable has increased steadily between 2019 and 2021.

34
Q

Finance: Reducing fix/var costs

A

Low-cost models, cheaper suppliers, change outsourcing partners, reloct. prod, vert. integration.

35
Q

Finance: Rev controls ~ marketing obj

A

AAPL marketing iPhone in India, using competition-based pricing strats.

Yr12 Business Studies (6 decks)

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