0717513144 MNB3701 REPORT 2 2023
DISCLAIMER
The MNB3701 Report 2 is framework that allow students to start their
assignment 4. It gives the steps, examples and content that must be presented
in the second report.
CONTACT NUMBER:
071 751 3144
EMAIL
i
,0717513144 MNB3701 REPORT 2 2023
Table of Contents
DISCLAIMER.......................................................................................................................................... i
Executive summary ........................................................................................................................... 1
Background of Apple Inc. ................................................................................................................ 1
Institution-based view ........................................................................................................................... 2
Formal institutional framework............................................................................................................. 2
Informal institutional frameworks ........................................................................................................ 5
Resource based view ........................................................................................................................ 1
Appraisal of Resources owned by Apple Inc. ........................................................................ 1
VRIO evaluation of resources ..................................................................................................... 3
Strategic implication ......................................................................................................................... 3
Challenges trading internationally ................................................................................................ 4
Implication to management ............................................................................................................. 5
Foreign Direct Investment (FDI) evaluation ................................................................................ 5
Conclusion ........................................................................................................................................... 1
References ........................................................................................................................................... 2
Revisions to assignment 2 .............................................................................................................. 3
IMPORTANT NOTES TO CONSIDER .......................................................................................................... 4
ii
, 0717513144 MNB3701 REPORT 2 2023
Executive summary
The report focusses on the resource-based perspective, in the case of Apple. It was
established in the case that resources are very important in determining the failure or
success of the organisation. Apple has managed to set up a strong investment in
South African due to its strong strings which are not only value-creating but also rare
and inimitable by competitors. The commonly also has sound internal organisation
which ensures that the common’s advantages are enjoyed in the long run. The
discussion also established that Apple could benefit from doing its FDI by combining
horizontal and vertical strategies.
Background of Apple Inc.
Apple Inc. is a leading company that operates in electronics sector. The company has
international operations in which it manufactures and distribute electronics such as
personal computers, servers, mobile phones, and computer software and media
content platform. These are produced in a range of products that include iPhone,
iTunes Music Store, iPad/tablet, iMac and Macintosh. Apple has been existent in the
electronics industry since 1971 when the idea was concerted in the United States of
America by Steve Jobs, Steve Wozniak, and Ronald Wayne before it spread to
different parts of the world including Africa. Apple is well known for its premium
products that compete in their own niche of high-income consumers. Apple has been
leading the world electronic market for decades with market capitalization of over
US$1 trillion and over US$50 billion in annual revenue, globally.
According to AAPL Apple Inc. established itself in South Africa around early 1980s in
its early year where it was using distributor model selling its products in various
countries. However, the first direct presence of Apple in South Africa was in 1992
where it sold its goods with subcontracted distributor, Core Group, before it pulled out
of the country in 1999 and came back around 2004 where it started to gradually build
an office. This was the beginning of massive investments and presence in the country.
The coming in of Apple in South Africa was a move to control the distribution of
company’s products although the contract with the distributor was not cancelled.
However, the company later took control of its distribution where products were
distributed through the apple stores which are now all-over South Africa.
1
DISCLAIMER
The MNB3701 Report 2 is framework that allow students to start their
assignment 4. It gives the steps, examples and content that must be presented
in the second report.
CONTACT NUMBER:
071 751 3144
i
,0717513144 MNB3701 REPORT 2 2023
Table of Contents
DISCLAIMER.......................................................................................................................................... i
Executive summary ........................................................................................................................... 1
Background of Apple Inc. ................................................................................................................ 1
Institution-based view ........................................................................................................................... 2
Formal institutional framework............................................................................................................. 2
Informal institutional frameworks ........................................................................................................ 5
Resource based view ........................................................................................................................ 1
Appraisal of Resources owned by Apple Inc. ........................................................................ 1
VRIO evaluation of resources ..................................................................................................... 3
Strategic implication ......................................................................................................................... 3
Challenges trading internationally ................................................................................................ 4
Implication to management ............................................................................................................. 5
Foreign Direct Investment (FDI) evaluation ................................................................................ 5
Conclusion ........................................................................................................................................... 1
References ........................................................................................................................................... 2
Revisions to assignment 2 .............................................................................................................. 3
IMPORTANT NOTES TO CONSIDER .......................................................................................................... 4
ii
, 0717513144 MNB3701 REPORT 2 2023
Executive summary
The report focusses on the resource-based perspective, in the case of Apple. It was
established in the case that resources are very important in determining the failure or
success of the organisation. Apple has managed to set up a strong investment in
South African due to its strong strings which are not only value-creating but also rare
and inimitable by competitors. The commonly also has sound internal organisation
which ensures that the common’s advantages are enjoyed in the long run. The
discussion also established that Apple could benefit from doing its FDI by combining
horizontal and vertical strategies.
Background of Apple Inc.
Apple Inc. is a leading company that operates in electronics sector. The company has
international operations in which it manufactures and distribute electronics such as
personal computers, servers, mobile phones, and computer software and media
content platform. These are produced in a range of products that include iPhone,
iTunes Music Store, iPad/tablet, iMac and Macintosh. Apple has been existent in the
electronics industry since 1971 when the idea was concerted in the United States of
America by Steve Jobs, Steve Wozniak, and Ronald Wayne before it spread to
different parts of the world including Africa. Apple is well known for its premium
products that compete in their own niche of high-income consumers. Apple has been
leading the world electronic market for decades with market capitalization of over
US$1 trillion and over US$50 billion in annual revenue, globally.
According to AAPL Apple Inc. established itself in South Africa around early 1980s in
its early year where it was using distributor model selling its products in various
countries. However, the first direct presence of Apple in South Africa was in 1992
where it sold its goods with subcontracted distributor, Core Group, before it pulled out
of the country in 1999 and came back around 2004 where it started to gradually build
an office. This was the beginning of massive investments and presence in the country.
The coming in of Apple in South Africa was a move to control the distribution of
company’s products although the contract with the distributor was not cancelled.
However, the company later took control of its distribution where products were
distributed through the apple stores which are now all-over South Africa.
1
