Case Exercise: Apple

The following questions are based on key symptoms (both favorable and unfavorable) of Apple and underlying causes that affect key symptoms as they are observed in the case. In addition, there is a general question on solutions that also addresses the causes. Each multiple choice and short answer question number under Key Symptoms corresponds to the same question number under Underlying Causes (e.g., Question 3 under Key Symptoms 1 corresponds to Question 3 under Underlying Causes 1).

Before beginning this exercise, you will need to read the Apple case.

Underlying Causes 1

Please answer the following multiple choice questions.

1. Why is Apples phenomenal growth in market valuation a case for concern?

multiple choice 1

• Apples growth in market valuation was actually not so phenomenal.

• A bubble is artificially inflating the market valuation.

• The bigger the company rises, the harder it falls.

• To satisfy investors, consumers, and company enthusiasts, Apple would have to continue to deliver, and doing so might not be easy.

• None of the answers are correct.

2. Why did Apple continue to grow after the passing of its visionary founder Steve Jobs?

multiple choice 2

• Apples innovation, rather than its CEOs leadership, was viewed as most instrumental behind the companys growth.

• Steve Jobs was not instrumental to Apples success.

• Steve Jobss appointed successor, Tim Cook, came to the position as CEO with an impressive track record.

• Apple continued to grow along with most other technology companies.

• None of the answers are correct.

3. What challenges does Apple confront with respect to their iPhone business into the future?

multiple choice 3

• Focusing on emergent markets is a bad strategy for a premium product provider.

• Harvesting growth in emergent markets requires a less expensive iPhone to be competitive.

• Slowing the pace of innovation on the iPhone is critical to maintaining market control for Apple.

• The portable phone market continues to grow and Apple has difficulty meeting demand.

• None of the answers are correct.

4. Why did Apple go through with its name change in 2007?

multiple choice 4

• With its noncomputer products flourishing, Apple wanted to shed the stigma of being labeled as a computer manufacturer.

• Apple was diversifying into several new businesses that were related to its computer industry origins, but these new businesses were fundamentally different from computers.

• Apple headquarters wanted to distance itself from its computers business unit.

• Corporate name changing was a fashionable thing to do, and Apple did what many other major corporations had done before.

• None of the answers are correct.

5. Why did Apple expand into computers (iMac, MacBook, iPad), music streaming devices and services (iPod, iTouch, iTunes), mobile devices (iPhone), wearable devices (Apple Watch), and file storage and transaction services (iCloud, App Store, Apple TV, Apple Pay)?

multiple choice 5

• to leverage its unique ability to design and develop its own operations systems, hardware, application software, and services

• to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design

• the businesses mentioned in the question statement were experiencing high growth and Apple seized on that opportunity

• to leverage its unique ability to design and develop its own operations systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial de

• None of the answers are correct.