2. Apple Computers, Inc. Presented By.. Kelvin Chong Edward Hwang Hyunsook Yoo Ching-Hsuan Hong

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

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

5. 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

6. Apple Faced challenges in its early stage; - Extremely strong competition Large investment in R&D –OS –System/Hardware technology –Design Invented the GUI Interface

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

8. 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

9. SWOT – Opportunities vs Threats Opportunities CRM SCM Globalization (Multi-Currency and Languages) Growth Increase customer satisfaction Strong competition (Dell, IBM, SONY, IRIVER) M&A (Mergers and Acquisition) Timing Threats

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

11. GAP Analysis “As Is” Legacy System High inventory cost Complicated SCM - lots of paper work “To Be” Lower inventory level Just In Time (JIT) Accurate Process Improved efficiency CRM ERP Implementation

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

13. Tangible/Intangible Benefits Tangible 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

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

15. 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.

16. 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).

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

18. 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.

19. 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.)

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

21. Inventory – Enhancements (1/2)

22. Inventory – Enhancements (2/2)

23. Working Capital

24. Sales Profit – Enhancements (1/2) Dollars in Millions

25. Sales Profit – Enhancements (2/2) Gross Margin

26. Expenses/Costs – Enhancements (1/2)

27. Expenses/Costs – Enhancements (2/2) Dollars in Millions

28. uestions??