Construction for Apple Measure Target Action Financial

¶ … Construction for Apple

Apple

Measure

Target

Action

Financial

Increased profitability

Greater dominance

Increase earnings per share / revenues.

Improve dominance inside the marketplace.

Enhance market value.

Sell more units in contrast with competitors.

25% annual growth.

Increase market share to 30%.

Increase profit margins and decrease operating costs.

Promote different products as higher quality

More customers

Greater satisfaction

Enhance customer satisfaction.

Reach out to a larger demographic of cliental.

Offer more products that are in demand.

Have better quality merchandise with great customer support.

Sell 60 million units per quarter.

Improve customer satisfaction with products.

Increase marketing efforts.

Have enhanced quality control, testing and responsiveness.

Internal

Reduce bureaucracy

Increased oversight.

Reduce bureaucracy.

Listen to new ideas from employees and managers.

Establish reviews that will monitor for changes in attitudes and ideas.

Focus on streaming videos and next generation technology.

Learning

Effective management structure

Improve shareholder value.

Make the company more flexible.

Increase transparency and innovation.

Reduce waste and bureaucracy.

1-year 20% growth.

2-year 25% growth.

3-year 30% growth.

More effective management controls.

Increase responsiveness to customer demands.

("Global I Phone Sales," 2013) (Sebastian, 2012) (Thompson, 2012)

The balance scorecard is effective in helping Apple to identify possible strategies the firm can use in the future. This is because it is identifying critical weaknesses and introducing solutions that can be used to improve their profitability. At the heart of this approach, is looking at unique ways the firm can reduce their operating margins and increase market share. For instance, in the past quality control issues from third party providers in China (i.e. Foxconn) have resulted in a number of defects. To deal with these challenges, Apple needs to focus on using other companies that have an established track record of quality. ("Global I Phone Sales," 2013) (Sebastian, 2012) (Thompson, 2012)

Moreover, the firm must focus on addressing the changing needs of consumers. This is occurring in the streaming TV market and there is more demand for applications that are user friendly. The problem that Apple has with its products; is it utilizing a closed end operating system. This makes it difficult for the company's merchandise to work with other operating platforms and applications. ("Global I Phone Sales," 2013) (Sebastian, 2012) (Thompson, 2012)

There are also the challenges with the firm charging developers a fee for creating programs that will work on the I Phone and I Tablet. If they can make their products more compatible and user friendly, it will help the company to become more flexible. This is the key for ensuring that they can adjust with changes in the marketplace and enhance their ability to meet new demands. ("Global I Phone Sales," 2013) (Sebastian, 2012) (Thompson, 2012)