Strategic implementation plan for Apple Inc - Research Paper Example

Apple Implementation Plan Implementation Plan The strategy implementation is a fundamental task in turning the mission and vision of a company into reality (Sheahan, 2013). The implementation process of a strategy encompasses a series of actions and tasks which ultimately established the intended change within the organization. However, in order to successfully implement a plan, the resources required as well as the time frame required need to be identified appropriately (Brgov, 2011). Apart from the identification of resources and time, it is also important to define or set a parameter on the basis of which the implementation process will be monitored (Holmquist, 2012; Linder, 2006). This study intends to draw a strategy implementation plan for Apple Inc. The strategy or the plan which has been formulated to implement is the online service platform. Apple is arguably one of the most flourishing companies of the world and has one of the most noteworthy brand names of the modern era (Acme-articles, 2012). The new product launch of the company is an awaited event across the globe and customers have high anticipations from the products of the company. Furthermore, the financial performance of the company is also exemplary. However, the success of the company can be attributed to two main factors; the presence of innovation in every division the company and the visionary leadership of Steve Jobs. The company headquartered at California, USA operates in almost every part of the world. As of 2013, the company had 408 retail outlets spread across 14 countries of the world. The competitors of the company are Samsung, LG, Nokia, Panasonic and Sharp to name a few (Sherr & Ramstad, 2013; Kulkarni, 2013). The company targets only higher income group and as a result of that the market size of the company is limited (Tapscape, 2013; Treloar, 1999). Despite the large business volume, strong market position and good reputation in the market, even the target customers of the company are sometime not considering the purchase of their products due to concerns over the service. As a result of that, this study proposes to develop an implementation plan of the online service platform. The plan is described below in detail. Objectives The objective is to develop an implementation plan for the online service platform. It is believed that the company will be able to tap that segment of consumers in the market who give high priority to the after sales service of a product (Binder & Witt, 2011). As mentioned earlier the company has been losing significant sales volume due to poor after sales service. Therefore in order to get rid of this, the company proposes to develop an online service platform where the products will be serviced. In this platform, any kind of software related issues will be resolved by the company itself and the user do not have to physically visit the store or service centre. The users need to connect their phone to the network and need to give the access of the phone. The service engineers on the other side will gain control of the phone through remote access and will be able to make the necessary modifications and restorations. However development and implementation plan is a complex task and requires time and resources. Functional Tactics The functional tactics undertaken by a company plays a critical role in the implementation process of a strategy. The first and foremost concern pertaining to the implementation process of any strategy in the organization is to convert the current strategies into actions throughout the entire organization. The functional tactics in this context is principally responsible for identifying the specific and immediate action that the company must take so as to ensure proper implementation of the business strategy. In this context, the objectives of the company are to implement an online service platform and in order to implement it the following are the financial tactics or the immediate action that the company needs to take. The first task and the most important task which the company needs to undertake are to test the viability of the plan. The viability of the plan can be explored by considering the views of the internal employees. The customers can also be surveyed about their thoughts on online service technique. However, it is believed that majority of the respondents will like the idea of getting service from their home. Furthermore, the cost associated with it also needs to be estimated so as to ensure the company remains profitable. In addition, the company also needs to assess the service techniques of the competitors. This will result in mitigating the risks associated with the strategy. Once the viability of the plan is assessed the next task is to develop the platform. However, only developing the platform will not serve the purpose, it needs to ensure full functionality as well as must be user friendly so that people can access it with ease. Hence, the next step is to test the functionality of the platform. Action Items In this section, the actions that need to take place within the company will be highlighted. In general, the action items are distinct units that are handled by individual people. In this context, the actions items are detailed below in the tabular form: - Aim Action To test the viability of the plan In order to test the viability of the plan the company should carry out a cost benefit analysis of the program. In addition, the company should also analyse the after sales service strategies of the potential competitor companies of Apple. To develop the online platform The next task is to develop the platform through which the service to the customers will be provided. In order to develop the website, the company should use its own IT department rather than outsourcing the same to some other companies. To test the initial response and functionality The next task is to test the initial response of the customers regarding the final large scale implementation of the plan. It is however believed the customers will not mind getting services at home by paying few bucks extra. To communicate the strategy within the organization The next task is to convey the change within the organization so that employees become aware of this and can communicate the same to the customers. The company should also form a separate department so as to look after these service offerings. To promote and create awareness of the service offering The company also need to promote the offerings to the customers in order to gain long term benefit. The promotion can be carried out through television and social media promotion. Key Success Factors The key success factors of this strategy are as follows: - 1. The company will achieve success if it succeeds to provide the online service to the customers without any major complexity. 2. The success can be also measured in terms of the sales figures of the Apples products before and after the launching of this service. Risk Management and Contingency The strategy is characterised by a number of risk factors. Since, it is an online platform there is chance of high security threats. Moreover, there is also a chance of functional disputes as technical problems may arise during the servicing process and can even cause severe damage to the product. Furthermore, there are other risks as well. For example, the revenue can be below the expectation resulting in financial loss. Thus to overcome these issues, the following is the contingency plan for the company: - 1. The company should strengthen its security of online platform so as to prevent the attack of hackers and viruses. Strengthening the firewall of the company will also help in ensuring data is not lost. 2. In order to mitigate the risk of technical failure which may result in loss of data, the company should allow the users to back their data in a specific server. 3. In order to deal with the financial losses or low revenue, the company can increase the service charge is some extent. Possible Change in the Company There are certain changes that are needed to bring in the organization for better outcome of this strategy. One of the possible changes is the central connectivity and operation. If the company can operates centrally the process will be more streamlined. For example, if a certain product of Apple needs servicing then if the customers directly contract the central office the servicing will be quicker. On the contrary, rather than directly contacting the service if the company goes to service station via another channel the process will be delayed. Hence, central service centre will assist in proving better customer service. As a result of this change the company also needs to appoint more service engineers so that customer queries and issues can be handled in real time. The creation of a separate department for the purpose of managing and overseeing the online service platform will also help to implement the strategy properly. Although this will increase the cost of the company, but will be effective for the company in the long run and can also act as a competitive advantage. Milestones and a Deadline The objective is to develop an online service platform and in between the process the company should set the following as important milestones. Milestones Deadline Viability test of the strategy or plan 3 months Development of the website and test its functionality 6 months Promotion of the online service platform 2 months Starting to provide online service to the customers n/a Tasks and task Ownership Task ownership is one of the vital tasks for keeping the workforce motivated. It is process by which team members are allotted or given the responsibility of completing the task (Baribeau, 2012). In this context of the study a task and simultaneously task ownership will be developed. However, specific individuals will not be highlighted rather the departments will be mentioned. Task Task Ownership Test the viability of the strategy Market Research Team Platform Development IT Department Feedback of the market and customers Market Research Team Create awareness within the company New committee formed for overseeing the process Create awareness among the consumers The marketing team of the Apple Recruitment of Service engineers HR department Resource Allocation Resource allocation is another vital task in the strategic implementation process. It is the process used to assign the available resources of the company in the most proficient way (Ahc, 2004). More human resource will be allotted to the online service department. In addition, other resources such as funds, modern communication equipments will be allotted to the new division of the company. References Acme-articles. (2012). Strategy Implementation in Apple Inc. Retrieved from http://www.acme-articles.com/article/Strategic_Planning/Strategy_Implementation_in_Apple_Inc/88369. Ahc. (2004). Definition: What is Resource Allocation? Retrieved from http://www.ahc.umn.edu/bioethics/prod/groups/ahc/@pub/@ahc/documents/asset/ahc_75702.pdf. Baribeau, P. (2012). Task Ownership Boosts Employee Engagement. Retrieved from http://tribehr.com/blog/task-ownership-boosts-employee-engagement. Binder, M. & Witt, U. (2011). As Innovations Drive Economic Growth, Do They also Raise Well-Being? Retrieved from https://papers.econ.mpg.de/evo/discussionpapers/2011-05.pdf. Brgov. (2011). Strategic Implementation Plan. Retrieved from http://brgov.com/dept/planning/pdf/FBRStrategicE.pdf. Holmquist, L. E. (2012). Grounded Innovation: Strategies for Creating Digital Products. Massachusetts: Elsevier Kulkarni, V. A. (2013). Samsung and other players have grabbed chunks of Apple's market share in the last year. Retrieved from http://www.knowyourmobile.in/samsung/8090/apple-no-longer-invincible-premium-smartphone-marketplace. Linder, J. C. (2006). Does innovation drive profitable growth? New metrics for a complete picture. Journal of Business Strategy, 27 (5), 38 – 44. Sheahan, K. (2013). The Importance of Strategic Implementation. Retrieved from http://www.ehow.com/about_6453292_importance-strategic-implementation.html. Sherr, I. & Ramstad, E. (2013). Has Apple Lost Its Cool to Samsung?Retrieved from http://online.wsj.com/article/SB10001424127887323854904578264090074879024.html Tapscape. (2013). Apple's stock drop shows lack of pure innovation. Retrieved from http://www.tapscape.com/apples-stock-drop-shows-lack-of-pure-innovation/. Treloar, A. (1999). Products and Processes: How Innovation and Product Life-Cycles can help Predict the Future of the Electronic Scholarly Journal. Retrieved from http://www.bth.se/elpub99/ap.nsf/08c6c2f88424ad99c12566ff002a0c10/d8acd24bab1f7220c12566ff0034fd67/$FILE/250-260.pdf Appendix Budget for 3 years Expenses Year 1 budget Year 2 budget Total Budget Advertisement expenses $ 10, 000 $ 10, 000 $ 20, 000 Cost of new platform $ 20, 000 $ 5, 000 $ 5, 000 Human Resource Cost $ 5, 000 $ 6, 000 $ 7, 000 Total $ 35, 000 € 21, 000 $32, 000 Income Year 1 budget Year 2 budget Total Budget Earning from Services $ 20, 000 $ 50, 000 $ 75, 000 Sales in Long term (for this service) $ 5, 000 $ 15, 000 $ 25, 000 Total $ 25, 000 $ 65, 000 $ 100, 000 Estimated Market Size 100,000             Price of the Product   Product Name/Version End Customer Price (MRP) (in $)     Normal service 100                     Sales Forecast       Particulars Year 1 Year 2 Year 3 Expected Market Share 0.20% 0.50% 0.75% Expected servicing 20000 50000 75000                                                         Total Revenue 20000 50000 75000 Break Even Point Read More