STRATEGY FORMULATION: SITUATION ANALYSIS This part of my project will summarize the internal scan and external scan of Apple company. I will discuss the strength, opportunities, weaknesses and threats of the company and use these elements of SWOT analysis to develop corporate governance, functional and determine the future of the company by studying its business strategy.I. Developing a TWOS Matrix The TWOS Matrix is ​​the summary of the information entered into the internal scan and external scan of Apple Inc. In short, the TWOS Matrix will show that Apple Inc. can take advantage of its opportunities to be strong and withstand the competition. It will also show how the Apple company can avoid threats and weaknesses by exploiting its opportunities. Let's start with the internal and external scan of the company: Apple Internal Scan Internal Factors Weight (out of 1) Rating (1-5) Weighted Score Comments Productive Strength Innovative Products 0.10 3.5 0.35 Good R&D Efforts The brand advertised as professional 0.10 4 0.40 Stable product Customers loyal to the brand 0.15 4 0.6 High-end customer satisfaction level Virus-free system 0.05 2 0.10 High level of security Produce aesthetic products 0.10 3 0.30 Cutting-edge and stylish high-end products Introduce USB firewire ports 0.05 2 0.10 Enabling portable peripherals WeaknessHigh manufacturing and inventory costs 0.05 3 0.15 Increased focus on development and research and development. Low market share in software industry 0.15 4 0.6 Less awarenessNo compatibility options 0.10 3 0.30 Extremely high-end productDecrease in iMac sales 0.05 2 0.10Less emphasis on marketing issues for create awareness 0.10 4.5 0.45Total 1 3.45Apple External ScanKey External Factors Weight Rating Weight ScoreOpportunityIncrease demand for......middle of paper......Strategy- Long Term Agreements between Apple Inc. and suppliers to secure manufacturing commitments - Continue to invest in technology to stay ahead of the competition and become a market leader. For the development of the company it is necessary to improve many things in the organization. To increase sales of iPhones and other Apple devices, the company needs to invest in bigger acquisitions for its external growth. Apple's strategy for the future is to have stores on all continents to increase sales. Apple's strategy choice includes product differentiation. Tim Cook, Apple's CEO, said: “Apple's strategy is one of differentiation, not cost leadership based on market-leading scale. For Apple it's not about making the most of each of the product categories in which it is present, but about getting the best on the market..