Question

Topic: Business Opportunities for Apple

So the company that I have been researching is Apple. We all know that Apple has gotten a lot pricier over the years, and their reputation has kind of taken a hit due to it. Apple also isn't known for being the most charitable or a business that really focuses on helping the community around them. I think a great investment idea for Apple would be on that gives back to the communities around their stores. My proposal would be for Apple to invest in making exclusive products sold at particular retail stores for consumers and give 100% of the proceeds to underprivileged communities within a 50 mile radius of said store. This would not only help propel Apple's charitable reputation but help improve surrounding areas.

• What are the basic features of the investment?

There are infinite possibilities for Apple when it comes to the kind of item they could choose to produce. Ranging from their products but with exclusive designs by well-known artists, exclusive discounts, etc. Apple would spend very little little money promoting this event because most of their advertisements are sponsored and appear on Facebook and Twitter feeds of users all over the world. The basic structure of the project would be:

1. Apple to collaborate with either well-known or local artists (depending on the area of the store hosting).

2. Market the campaign. Apple will promote the project on all social media platforms. Engage with customers: tell them what the project is about, who it benefits, why they are doing it, etc.

3. Do it. Begin with just one event at a retail store to gage whether or not it will be successful. Have guests come in and buy into raffles or auctions. Show the guests photos and videos of who/what the profits of the raffle will go to: after school programs, redesigning parks, Boys and Girls clubs.

For example: there is an Apple store that I frequent in Emeryville, CA which borders Oakland and Richmond - 2 areas that have the some of the highest crime and poverty rates in the state. Any money that would be raised by consumers would greatly benefit the Boys and Girls Club of Oakland, and street clean up programs in the area.

• What are your reasons for recommending the investment?

I would recommend Apple to invest in a community project like this for the sake of their reputation. They make very few financial donations, and this would boost consumer morale. As one of the richest companies on the planet it will show that they not only are conscious of more than just their own company but willing to invest in communities where their consumers likely do not live. Apple also does not have to invest much financially into this collaboration at all aside form promotion. From a personal standpoint, it would make me feel good to see that the money that I have "invested" in the company for the long time that I have been purchasing Apple products go to something that I can go to in my community and see people utilizing it for a great things.  

• How does the potential investment affect budgeting and related business decisions?

Apple would have nothing to lose from participating in a project like this. By giving back to the community, it basically makes them look really good- especially since none of their competitors are doing anything like it. As stated, Apple essentially would only have to pay to advertise this only a few times as word-of-mouth travels extremely fast -- especially for Apple products. According to to Medium, in 2018, Apple spent nearly $1.8 million on advertising alone because it is an “ongoing investment in marketing and advertising" (Basulto, 2018). Media outlets would pick up the story quickly as well which would save Apple hundreds of thousands of dollars in advertising costs - especially as time went on and they continued to do it in other cities or make it annual. There really would not be any long term investments as this would be something that only happens a handful of times a year. More than the advertising - artists, especially local ones, would be vying for the attention from Apple and would likely collaborate with them for free. Essentially, the main point of this would be for Apple to be reinvesting in their company's reputation. It may be an intangible asset, but it is the most important one. In the long run, investing in their reputation would boost revenue - therefore being able to expand their budget later down the line. The benefits greatly outweigh the costs as there are very little costs associated with a program like this.

For Chegg : Identify whether you support my investment recommendation or not, and explain why. Do you foresee any risks that may prevent Apple from realizing the anticipated benefits of the investment?

Answer 1

answer-

I agree with your investment in apple because Apple earns more profit by pricing products at high prices cause it is a famous brand but if It gives back certain amount of money to society then it would be doing good to the community as well as to itself because such donation or philathropic work would improve Apple's social image and who knows its sales would increase more and more after the social work.As apple brand Fan, i want the company to be social responsible and discharge their social responsibilities by giving back to community.From investment point of view, Apple still is in good shape and have good Brand reputation in the world but if the company does social work then it would like cherry on the cake means more profit to me as well as to the company and to society at large. Company can start this at low level in the beginning and take to higher level as the time goes by.also there is no cost of taking this initiative.

I think there is no risk right now involved because there are no competitors also this is social work which is done by honest feelings and from the inside of heart which has nothing to worry about. This initiative would only bring positive image to the Apple company.