Question

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.

Key Symptoms 1

Please answer the following multiple choice questions.

1. Since 2006 Apple has reported gross margins of over

multiple choice 1

• 20%.

• 25%.

• 30%.

• 35%.

• None of the answers are correct.

2. When Steve Jobs returned to Apple, he

multiple choice 2

• strengthened relationships with third-party software developers.

• created an alliance with Microsoft.

• wooed Adobe to produce Mac-compatible programs.

• released the iPod.

• All of the answers are correct.

3. In 2018, what worried investors about the Apple computer business?

multiple choice 3

• a spike in quantity demanded of Apple’s computer products

• a 5% decline in sales of Apple’s computer products

• a relaunch of the iMac with complete redesign

• a lawsuit from non-Asian companies that accuses Apple of stealing their design

• None of the answers are correct.

4. What was Apple Inc.’s name, prior to 2007?

multiple choice 4

• Apple Computers

• Apple Inc.

• Apple Macintosh

• Apple I

• Apple II

5. Since the death of the founder, Apple has

multiple choice 5

• reduced spending on R&D.

• launched the iPad.

• launched only one new physical product.

• launched many new physical products.

• None of the answers are correct.

Answer 1

Answer 1.

The correct answer is: 30%.

Apple has posted a gross margin of 30% since 2006 however after 2008 the gross margins went above 35%

Answer 2.

The correct answer is: All of the answers are correct.

After returning to Apple Computers in 1996, seeing the condition of Apple steve jobs decided to make significant changes and all the options mentioned in this question were the changes he implemented to take out Apple from dire straits. Microsoft even invested in Apple.

Answer 3.

The correct answer is: None of the answers are correct.

In 2018 the sales of Apple's computers were on the rise and overall shipment kept growing. Investors were worried due to the declining sales of iPhones and the data not being made public by Apple Inc.

Answer 4.

The correct answer is: Apple Computers

The name of the company when it started was Apple Computer Company and in 1977 it was changed to Apple Computer, Inc. which remained till 2007. After 2007 apple is known as Apple Inc. as it shifted its focus from computers to consumer electronics.

Answer 5.

The correct answer is: launched many new physical products.

After the sad demise of innovator Steve Jobs in 2011, Apple has launched many new products such as Apple Watch, iPhone SE, iPhone Plus. iPhone Pro, iPhone Pro Max, Apple Earpods 1 and 2, and so on...