1 The operations of Apple’s primary industry are in the technology sector. Apple Company is the owner of Macs designs. It produces personal computers of high quality. Again, the company deals in mobile phones like the iPhone. It has positively impacted the technology sector with the best computer brand worldwide.
2 Apple operates in the consumer electronics industry. The company has a remarkable reputation for producing operating systems. For example the OS X. With the iPod and iTunes, consumers have access to online entertainment. It is leading in the music revolution with the iTunes.
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3 According to Kahney (2009), Compared to the recovery period, Apple realized an increase in profits during the recession time. On the other hand, competitors were making fewer profits. The reason is that Apple experienced an increase in the sale of Mac and iPhone. Apple Company was still booming while other companies were experiencing economic downtimes.
4 General Mills have a competitive advantage. It has assets that are more productive compared to those owned by its close competitors. Although the gross profit for Danone Company is higher than for the General Mills, the pretax profit margin for General Mills is higher than for the rest of the companies indicating that it has a competitive advantage. Consequently, the return on equity for the General Mills is high.
5 General Mills has a unique asset. The asset gives it a temporary advantage over the other companies. One reason is that the assets have a lower imitability. As a result, trying to imitate the asset would increase the cost for the other firms. Moreover, the firm has a good organizational structure. The high return on equity shows it. Furthermore, the General Mills can capitalize on the value of its product leading to a higher net profit margin. Therefore, the combination of organization, value, and imitability gives the firm a temporary competitive advantage.
6 The mature stage has a stiff competition. New entrant firms compete for the available market. Some of the firms may be forced to leave the market if they are unable to compete effectively. For a successful business, differentiation is key in this stage. It makes the products to be more attractive and appear different from those produced by the competitors. Again the firms in the food industry must employ marketing mix for their products. Marketing strategies reminds and informs consumers of the products. For example, advertising. Additionally, companies have to be cost efficient to lower their cost of production. Consequently, lower selling price for their food products leads to increased profits as sales rises. The mentioned elements mark a successful business strategy in the mature stage of a business.
7a) The industry is not attractive for new entrants. Entrant firms would face a variety of challenges. To begin with, the industry has a few large firms. Any new firm wishing to enter the market would make the existing firms to lower their prices. Lower prices would mean that the entrant firm must be cost-efficient to produce at a lower price than the existing firms. However, it is difficult for new firms to produce at a low cost. Again, there are many small firms in the industry. It means that the level of competition is high. New firms have to employ significant capital in the advertisement. In addition, the high threat of substitutes would make the current firms to produce substitute goods for the entrant firms. As a result, it is hard for new firms to enter this industry. Therefore, the industry has lower attractive features for new firms to enter.
7b) The bargaining power of buyers would reduce. Many firms offers choices for the buyers to choose. According to Kalpana (2009), if one firm is not offering high quality products or is unable to meets customers demand, buyers can shift to other firms that produce similar goods. However, if the firms combines, buyers would have limited options. On the other hand, there would be increased threat of substitute goods. The remaining firms would find ways to remain competitive in the market. One of the ways is through production of substitute goods. Substitute goods are products which can be used in place of other goods.
8 Paying permanent workers minimum wages is legal under the employment agreement. However, the action is not ethical. According to Ingram on “Examples of Legal but Unethical Situations in Business” (2016), minimum wages for the full time employees is unethical. The article argues that paying full time employees minimum wages compromises their ability to meet the required expenditure. As a result it induces a negative reaction to the employers who are the primary stakeholders. Directors of a company have the responsibility of increasing the wealth of the owners. It turns out difficult to maximize the shareholder’s wealth with unsatisfied employees since their productivity is low. Minimum wages for the workers reduces the short run cost for an organization while in the long run it is detrimental to the earning potential.
References
Ingram, D. (2016, September 29). Examples of Legal but Unethical Situations in Business. Retrieved from yourbusiness.azcentral.com/examples-legal-but-unethical-situations-business-21719.html
Kahney, L. (2009). Apple Laughs At Recession: Record Profits on Record Sales of Macs and iPhones. Cult of Mac. Retrieved from www.cultofmac.com/19035/apple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones/
Kalpana, S. (2009). Textbook on economics for law students . Place of publication not identified: Universal Law Publishing.
