Unit 1
Rolf Vonderheide
Kaplan University
GB520 Strategic Human Resource Management
Professor Steven Cates
November 11, 2014
Introduction The purpose of this case analysis is to answer the following question as it relates to Apple, Inc. “What is strategic management and why is it crucial to the success of an organization in meeting its goals and mission?” Strategic Management refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between an organization and its environment so as to achieve organizational goals (Daft, 2014). In other words, strategic management is what an organization needs to do to thrive—and not just survive. It also involves taking the long-view in conjunction with the near and present view. As this case study has pointed out, Apple, or more specifically Steve Jobs, was an expert at peering into the future while also providing products that met current consumer wants and needs.
Background
Apple was created in 1976 by Steve Jobs and Steve Woziniak. Jobs made it Apple’s mission to bring an easy to use consumer computer to market and in 1978, launched the Apple II. Apple quickly became the industry leader selling 100,000 Apple IIs by the end of 1980 (Yoffie & Slind, 2008). Things changed drastically for them in 1981 when IBM entered the personal computing market.
With the introduction of competition from an ever growing number of companies, Apple’s share of the market declined considerably over the next few years. They were able to maintain their premium prices on their high-end models due to a loyal fan base though, but cheaper models meant wide spread availability—and more sales, and the competition was beating them to that punch. As a result, Apple’s gross margin dropped to its lowest point in 10 years in 1993 (Yoffie & Slind, 2008).
After muddling around for a few years between the years 1985 and 1997 without Steve