Strategy 2 for MAM – Final Exam 2024 Spring
Based on your reading of the “Apple’s iPhone Revolution: Pioneering the Circular Economy” case (9-123-089), please answer the following questions. Make sure to clearly indicate the beginning and end of the answer to each question. The exam counts toward 50 percent of your grade.
Note: Please quantify your arguments using relevant data from the case and your assumptions.
Assignment Questions:
(1) What are the opportunities and risks from the Trade-In system for Apple? Please think from both financial performance and environmental impact perspectives and provide qualitative analysis. (20 points)
(2) What are the revenue and operating profitability impacts from the second-hand market for iPhones for Apple in 2021? (16 points). Please provide quantitative analysis. Assume:
· Net price of refurbished iPhone sold by Apple in 2022: $600
· Second-hand iPhone users 50% as likely to spend on services
· Percentage of iPhone buyers in first-hand market that buy again an iPhone: 80%
You can make other assumptions if needed.
(3) How many carbon emissions have been avoided from the second-hand market for iPhones in 2022? Please provide quantitative analysis and specify your assumptions. You may consider optimistic and pessimistic scenarios (14 points).
If the question is not clear enough, state your assumptions, and if they are reasonable, you will be given credit.
This is an INDIVIDUAL exam. You ARE NOT permitted to consult with ANYONE about the exam. You ARE NOT permitted to use any material other than the cases, the readings in the course pack, your class notes, and slides distributed in class.
The exam should be no more than 3 pages (including exhibits). It should be typed larger than or equal to 10pt Times New Roman font, with a 1-inch margin on all four sides.
The exam should be submitted on Canvas by 7th April 2024. The window for submissions will close at 6pm - no exceptions. This ensures that all students get the same time to complete the exam. You can, of course, submit the exam anytime earlier.