Memo of Analysing Apple Inc.

Project description

You shall analyze Apple Company. For purposes of this paper, you have just been installed as the new CEO of your chosen company, and charged with reigniting and maintaining the progress that your chosen firm has enjoyed. I’m the Chairman of the Board, you are the newly designated CEO. Each of these companies has a positive history and also faces daunting future challenges. Roll up your sleeves and provide me a position paper on just what you intend to do to ensure we reach our economic potential.
I do not want a historical recitation of the successes/challenges of the distant past. I already know those (remember that I’m the Chairman!). This is not a request for a ‘book report’ on your chosen company. I want you to produce a 3 page, typed paper that you would deliver to the Board of Directors for our firm outlining your intended initiatives and how you would execute upon those plans.
I want real-world research with factual data (supported by footnote(s) where appropriate). You have the luxury of seeing some of the near-term, real-world present decisions of these firms, so you can determine some of the choices already made by each firm’s real-world CEO. Each of these companies is a well known, well reported, closely followed firm. There is a wealth of publicly available data for you to consider in this paper.
Think strategically from a ‘macro’ view about a firm you are already familiar with.

An example of the Memo of Home Depot’s
Home Depot’s net sales steadily decreased from fiscal year 2006 to fiscal year 2009, from $79.022 billion to $66.2 billion. The company reported a 2.75% increase for fiscal 2010 in net sales to $67.9 billion from $66.2 billion for fiscal 2009 . Net earnings decreased 56.1% to $2.3 billion in fiscal 2008 from $5.3 billion for fiscal 2006. Net earnings increased 44.3% to in fiscal 2010 to $3.34 billion from $2.3 billion in fiscal 2008. Home Depot’s finances are responsive to inconsistency in the housing and home improvement markets, housing market conditions and consumer spending patterns. Additionally, these fickle market conditions affect Home Depot’s competitors in the home improvement industry. In addition to the stated market risks, Home Depot’s staggering numbers represent a history of inconsistent leadership.
To break from incongruity and realize a period of sustained, strong growth, Home Depot will implement the following strategies:
• To better serve the customer, Home Depot will revert to its early strategy of employing predominantly full-time employees with knowledge about home improvement, the company’s mission, and the product. The company will shy away from minimum wage and bonuses and incentives for linking to improved employee performance and customer service. The company will focus on hiring employees with existing product knowledge while compensating experience. Additionally, the company will train unknowledgeable employees to as a value added step for the company and the customer. Experienced hires will include licensed plumbers and electricians to service customers and train employees.
• Home Depot’s most prominent competitor, Lowe’s Companies, Inc., created a sales specialist position called, “Project Specialist – Exteriors (PSE).” Responsibilities under this role include guiding “the customer experience in exterior project areas such as Siding, Decking, Fencing, Roofing and Gutters.” The representative is responsible for the entire customer project cycle, from initiation of a relationship to “post project-follow up.” Finally, the representative is responsible for driving cross-departmental employee communication. As Home Depot is increasingly beginning to serve DIFM and DIY customers, the company will benefit from creating a position similar to Lowe’s PSE representatives, which acts as an in-home consultation sales position. A position similar to Low’s PSE will help Home Depot to capture more and maintain current market share.
• Home Depot traditionally has merchandised its products in a warehouse setting, while Lowe’s Companies, Inc. has traditionally merchandised its products in a store setting. Lowe’s stores include shelving and displays that may be easier for a customer to peruse, thereby attracting more badly informed DIY customer. Therefore, to increase market share, the company should market primarily towards professionals and DIYM customers. The warehouse style of Home Depot’s store are more inviting to customers who a base knowledge of the desired project. Home Depot should not stop store promotions focused on DIY customers, but should alter promotions to be more welcoming to the less knowledgeable customer. The company will continue to spend money on promotions even during difficult economic conditions to retain market share.
• Home Depot will improve upon its credit services offered to professional, DIFM, and DIY customers. The company will re-negotiate and create new contracts with third party credit providers. Established contracts with credit providers will help both set maximum cost of credit for the credit services program and improve the customers credit portfolio with the company. Private label credit card sales accounted for about 22% of sales; therefore increased credit service offerings will be mutually beneficial for the customer and the company. Increased credit services, as well as the introduction of a PayPal option, will additionally be mutually beneficial as technology and the convenience of online shopping becomes increasingly prevalent in society.
• The home improvement industry is highly seasonable. To increase customer service and employee productivity, Home Depot will outsource labor during the company’s highest volume of sales, the second fiscal quarter.
• Home Depot will re-focus on its retail core. This will be done through the sale of HD Supply, including:
o White Cap Construction Supply, Inc. of Costa Mesa, California;
o National Waterworks Holdings, Inc. of Waco Texas;
o And, Hughes Supply, Inc. of Orlando Florida.
Although HD Supply contributed about 15% of fiscal 2006 revenues, the business was only accountable for about 9% of fiscal 2006 operating profits. Earnings from the sale of all sectors of HD Supply will help finance share repurchases to boost the company stock price and will enable the company to focus on the retail functions of the company while outsourcing supply.
• Home Depot will improve its logistics programs by converting its distribution process to a Rapid Deployment Center (RDC). At the end of fiscal 2007:
o The company operated 30 lumber distribution centers and 39 conventional distribution centers in the United States, Canada and Mexico;
o The company operated eight transit facilities in the U.S. and Mexico to receive and consolidate store merchandise orders from suppliers for delivery;
o And, approximately 20% of merchandise was shipped to U.S. stores through the distribution centers and about 20% through transit facilities. The remaining merchandise shipped directly to stores from suppliers.
The RDC process will allow for all store product needs to be consolidated to a single purchaser order. This will then allow for rapid inventory allocation and deployment to individual stores upon arrival at the distribution center. The Home Depot logistics program and supply chain will benefit from the implementation of a RCD as the process will allow for lead time reductions in replenishment of product and a simplified order processing system at the supplier level. The RDC can be expanded nationally once the pogrom is developed. Once the RDC program is expanded and established nationally, conventional distribution centers can be closed and spaces used for the RDC program can be expanded. This will allow for further supply chain optimization and cost reductions.
Home Depot was founded upon two objectives: customer services and sales. The ideas outlined above aim to streamline the company’s operations and reposition the company to be aligned with its

PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET AN AMAZING DISCOUNT 🙂