Business Decision Assignment Problem Statement, Decision - 275 Words

Business Decision Assignment: Problem Statement, Decision (Essay Sample) Content: Business decisionInstructors NameInstitutionStudents NameCourse NameCurrent situationThe current situation at the Apple Company is the lack of the application processors that the products of the Company need to use. The company is buying the application processor from its main competitor Samsung. Samsung Company being the main supplier of the application processor into the Apple Inc. The company, the Samsung Company, is also playing the sabotage role. It is selling the application processors to the Apple Inc. The company at a very high price. The high prices of the app processors are making the production cost of the Apple Inc. Products to go up hence high prices. The current situation that, the Company does not realize the higher profit margins that it was sometimes enjoying back. The major supplier of the application processor for the Samsung Company is now becoming the major threat on the smartphones. Apple receives more that 50% of its revenues from selling of the iPhones. The corporate margins are a bit lower than the iPhone margins. However, Samsung Company in the recent future has been able to overtake the Apple Inc. Company and it is now leading to the selling of the smartphones.Problem statementApple Company is currently experiencing a lot of decline in the total revenue and the loss of the market share to its major competitor Samsung Company. The Company used to be the largest market share holder in the iPhones but currently Samsung has already overtaken the Company. Apple is also paying a whopping $10 billion to its main competitor every year for the application processors. The problem is affecting the management of the Apple Inc Company, and they need to resolve the problem as quick as possible to ensure that everything is going according to plan.Decision statementThe Company is now in the process of trying to change the supplier of application processors so that they can be able to realize high returns. The Company is also thinking of making its application processor able to avoid the relationship with Samsung Company.Research objectivesTo produce the best application processors that will help in improving the functioning of the Samsung products.To cut the cost of production by 50% by avoidi...