Apple Computers, Inc.

Presented By..Kelvin Chong

Edward HwangHyunsook Yoo

Ching-Hsuan Hong

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

What is Apple?

- Founded by Steve Jobs and Steve Wozniak in California on Jan 3, 1977.

- Survived competition of IBM- Products:

– Macintosh line of desktop and notebook computers– iPod digital music player– Xserve server– Xserve RAID storage products– MAC Operating System

Apple• Faced challenges in its early stage; - Extremely strong competition

• Large investment in R&D– OS– System/Hardware technology– Design

• Invented the GUI Interface

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

SWOT – Strengths vs Weaknesses

Strengths

• Brand• Design• Marketing• Loyal

customer base• Distribution (stores, partners)• Customer support (service)

•Inventory held•Narrow range of customers•SCM (outsourcing)

Weaknesses

SWOT – Opportunities vs ThreatsOpportunities

• CRM• SCM• Globalization

(Multi-Currency and Languages)

• Growth• Increase customer satisfaction

•Strong competition (Dell, IBM, SONY, IRIVER)•M&A (Mergers and Acquisition)•Timing

Threats

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

GAP Analysis“As Is”

Legacy SystemHigh inventory costComplicated SCM- lots of paper work

“To Be”

Lower inventory levelJust In Time (JIT)Accurate Process

Improved efficiencyCRM

ERP

Implementation

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

Tangible/Intangible BenefitsTangible Benefits• Increase market share• Improve data accuracy• Improve HR efficiency• Improve quality• Improve sales efficiency• Invoice processing/Billing• Decrease procurement costs• Improve project management

efficiency• Improve time-to-market• Improve on-time delivery

Intangible Benefits• Improve customer satisfaction• Improve employee morale• Improve receivables

management• Reactive to changes faster

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

Assumptions• Apple has legacy

systems, not ERP.• Apple keeps

inventory in their shops.

• Apple has a narrow users – E.g. Students,

computing professionals, graphic professionals, and home users.

•Sales expected to increase after 2006

–Intel will be the microprocessor supplier for Apple.–There will be new SCM relationships between Intel and Apple.

• Inventory- After Go-Live in 2006,

Inventory is expected to go down.

- Conversion to JIT (Just In Time) production

- Due to JIT, inventory warehouses can be virtually eliminated

Assumptions

• Sales Profit/Working Capital

- Sales will go up (CRM), Costs will go down. (SCM)

- Working capital is expected to increase as profit climbs.

• Expenses/Costs Perspective

- General and administrative costs will go down (Automation).

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

Benefit Areas• Revenue

Improvement– Increase in sales

due to improved customer service

• By utilizing the new CRM, attend to our customers’ needs, yielding higher sales

•Globalization–Global business can increase the Apple’s market share.–Integrated ERP system allows offices to better…

–Communicate–Synergize–international management via tools such as multi currencies and languages.

Benefit Areas• Material Cost

Reduction– Reduce the

purchase price of materials

(E.g. E-procurement)

• Throughput Improvement– Increase capacity

(E.g. Automated system, Real time, Analysis tools, Right Information at the right time and at the right place.)

•Productivity Improvement

–Reduce finance and accounting cost (E.g. Reduce manual input, Real time information for more accurate budgets.) –Reduce human resources administrative cost (E.g. Increase process automation.)

Agenda• What is Apple? (Brief Background)• SWOT Analysis• GAP Analysis• Tangible/Intangible Benefits• Assumption• Benefit Areas• Projections

Inventory

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Inventory – Enhancements (1/2)

Inventory – Enhancements (2/2)

Days of supply in inventory

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Working Capital

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Sales Profit – Enhancements (1/2)

Net sales

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Sales Profit – Enhancements (2/2)

Gross Margin

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Selling, general, and administrative expenses

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Cost of sales

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