A Strategic Application of Apple Inc.

Purposes of different types of organisation The variety of legal types of organisations, including with corporations, governments, non-governmental organizations, international organizations, armed forces, charities, not for profit corporations, partnerships, cooperatives, and universities. The organization of a hybrid is a body that alternates in both the public sector and the private sector simultaneously, fulfilling the wants of public duties and developing commercial market activities. Organisations are the object of analysis for a number of disciplines, such as sociology, economics, political sciences, psychology, management and organizational communication. The organization of broader analysis is commonly referred to as organisational structure, organisational studies, organisational behaviour, or organisational analysis. From a purpose related perspective, an organisation is viewed as an entity is being reorganized, and the focus is on the organisation as a set of tasks or actions. From a functional perspective, the focus is on how entities like business or state authorities are used. From an institutional perspective, an organisation is viewed as a purposeful structure within a context. Sociology can be defined as the science of the institutions of modernity; specific institutions serve a function, to the individual organs of a coherent body. In the social and political sciences in general, “an organisation” may be more loosely understood as the planned, coordinated and purposeful action of human beings working through collective action to reach a common goal or construct a tangible product. They distinguish the term organisation into planned formal and unplanned informal organisations. Sociology demonstrates organisations in the first line from an institutional perspective. In this sense, organisation is a permanent arrangement of elements. These elements and their actions are determined by rules so that a certain task can be fulfilled through a system of coordinated section of labour. Economic approaches to organizations also take the division of labour as a starting point. The division of labour allows for economic of specialization. Increasing specialization necessitates coordination. From an economic point of view, markets and organizations are alternative coordination mechanisms for execution of transactions. Introduction Apple Inc.is a global computer manufacturing company that is going through changes in its organizational culture and its organizational structure due to several events of the past few years. This is of course that grew faster in little amount of time, that their management could not able to keep the operations and finances under control. Apple Inc, has been forced to revaluate and design again its organizational culture and organizational structure to avoid with bankruptcy. The organizational of Apple is one of change; with the drive to succeed as the major objectives. The organizational structure of the company has also transformed to be more rival in a critical juncture in the company’s history. Apple is going through rebuilding to regain control of its alternation and finances in order to stay competitive with global market. Organizational Culture The culture of Apple was based on an ideal that self-stimulated individuals will work harder if they do not have a less managing every action. The unique structure of Apple had allowed it to grow and react more quickly to changes than its competitors .In order to the quick responsiveness make simple; it is much easier to achieve a project began if there are only a less amount of people to get approval from. Apple initially grew fast, because the decision level reached less point. Corporate headquarters made policy and oversaw all activities, but the local staff made the day-to-day decisions on the ground in countries all over the world. This type of top-down philosophy allowed for quick responsiveness and resolutions to situations without involving the corporate headquarters, thus for avoiding corporate red tape. Organizational Structure The organizational structure of Apple was almost non-existent and focused on planning decision making in the hands of citizen in the field. Apple was doing incredibly well and had received the attention of many people because the company done well and very responsive to change, However, things took a downward turn and Apple research themselves in a financial nightmare. Apple suffered problems in regional areas, specifically in the accountability of using and in fiscal decision-making. The same “top-down” ideology that supported Apple grow also opened the door for some serious financial losses. With employees at different levels planning decisions, it became hard for the corporate office to keep track of spending and purchasing. Stakeholders and their objectives People are included in running a business. Some have direct interest while on the other hand has indirect interest in the section of running of the business. This part of groups are known as stakeholders. Objectives of State Holders in conflict Many business objectives complement each other and are acceptable to a broad range of stakeholders. For example ,an objective for a business set up of earning survival would be assistant by nearly all the stake holders. No-one’s interest for a business to fail. However, if a business becomes better demonstrated and larger, then potential conflicts begin to high. Business expansion Vs Higher short-term profit The aims of increasing the size and scale of a business might be helped by managers, employees, suppliers and the local community largely for the extra jobs and sales that expansion would bring. However, an expansion is often related with increased costs in the short-term (e-g extra marketing spending, new locations opened, more production capacity added).This method result in lower overall profits in the short-term , which may cause conflict with the business shareholders or owners. In the long-term, however, most business owners would be better to support an expansion If it increases the overall value of the business. Job losses Vs Keeping Jobs This has been a big issue for many businesses during the economic downturn in 2008-2010. Because of reducing costs and conserve cash, business managers have often made redundancies amongst the workforce or introduced other measures like short-time working to reduce wage costs. This could lead by business owners and managers. However, it makes a potential conflict with stakeholders such as employees (who are directly affected), the local community (affected by local job losses) and suppliers who suffer from a reduction in business).

• “Short-term” thinking by managers may discourage important long-term investment in the business.
• New developments in the business such as a major product launch or new factory may require extra finance to be raised, which decreases the control of existing investors.
• Investing in new machinery to achieve better efficiency may get in job losses.
• Extending products into mass markets may result in lower quality standards.

Stakeholders are….

• Owners: Invest capital in the business and get profits from the business.
• Workers: Employees of the business who help to make a business successful.
• Managers: Managing a business. Also they can lead and control the workers to achieve organisational goals.
• Consumers: “Without customers without business”. They buy the goods and services of the business.
• Government: Charging a tax from the business and also monitors the working of business in the country.
• The Community: People who are directly or indirectly affected by the actions of the business.

Stakeholders of Apple Apple’s Owners: They are internal stake holders and also they can say about Apple news. They put the most money into the business. Apple’s Suppliers: Supporting to make any products with good quality. Apple’s Employees: They are able to get their products that they purchase from the Apple store with a discount, they will buy their products and also treating their customers very good. Apple inc customers: Apple incs customers are very important to Apple in order to help thems to make a profit, Apple customers are shared in other companies such as T-Mobile and O2.They are external state holders. But they don’t have a chance to say in what happens in the business and what specifications their products have. https://www.bbc.co.uk/news/business-17835234 The link above is one way of how Apple’s customers influence the aims of Apple, this is as they keep buying Apple’s products which has helped Apple to make more profit and now they can us their profit to create new products. Apple’s strategic position

• In this report, I have made a detailed market analysis of “Mobile phone industry” and Apple strategic of position in the selected market while considering its company background. By using different techniques such as S.W.O.T analysis and Porter’s analysis, Cultural change, PESTEL analysis (Power and Politics) in order to analyse the strategic position of the company in relation to the market.

APPLE’S STRATEGY

• Apple is a incorporated company that industrializes and supplies the whole range of hardware, software as well as its own innovative operating systems. APPLE Inc, preferred the following strategy to substain the profit level with a guarantee not to lose their profit growth and margins by investing somewhere else.

1. Allow for a two-way communication between employees, board of directors, CEO and management.
2. By randomly visiting stores and help chains involving Foxconn, this will motivate employees to work diligently while maintaining Apple’s higher prices and standards.
3. Provide financial aid for struggling employees.
4. Increases communication with stakeholders.
5. Include a forum for all employees to be given relevant information pertaining to Apple Inc. and the direction it is going in.

APPLE’S MISSION AND VISION

• Introduce the best personal computing experience to students, educationalist, inventive experience to students, educationalist, inventive proficient and clients in the world through Apple’s inventive hardware, software and internet offerings.

• Tries to launch with unbeatable computers, e. g OS X operating system and i-Life and professional applications.

• Also leading the digital media revolution with its iPod portable music, video players, iTunes online store, and it also introduced the new online phone in the coming year along with its ground –breaking phone.

• Apple is committed to ensure the highest standards of social responsibility in everything. Their company provide safe working conditions, treat employees fairly, and use environmentally responsible manufacturing processes wherever Apple products are made.

STRENGTHS

• Respected brand on an international scale.
• Produces Variety of technological equipment to the masses.
• Exceptional interface
• Provides higher than average wages to staff members in America and Canada.
• Customer relations- responsive to customer feedback.
• Strong financial performance.
• Innovation of skills and creativity.
• Provide safe and comfortable working environment for employees.

WEAKNESS

• Under fire for labour issues at Foxconn
• Workers being paid less amount of wages and long working hours, causing dissatisfied employees to commit suicide.

OPPORTUNITIES

• Strategic partnerships
• Increase and implement new employee programs.
• Collaborations with rivals.
• International growth and expansions.
• Pressure of pricing as competitors create new products at the fraction of the cost.

THREATS

• Potential boycott of the brand if customers find out about the working conditions.
• Loss of brand reputation and share prices

KEY STAKEHOLDERS

• Employees
• Shareholders
• Board of directors, CEO
• Suppliers, Foxconn
• Family of employees
• Wages of employees can dramatically affect family members, especially workers that have commit suicide.

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