Apple Inc

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Abstract

Technology plays an important role in everyday life. Over the last decades, technology has had more significance in improving people’s lives. As technology’s role in everyday life grows, several multinational technology companies have equally grown. Currently, Apple Inc is one of the largest technology companies globally, and its growth and dominance in the world is attributed to its innovative and game-changing products and services. This paper focuses on the structures and features that have made Apple Inc gain popularity in the technological field. The paper also explores the challenges and competition the company faces, and it explores the reasons why an individual would be interested in working in this company.

Table of contents Introduction…………….……………………………………………………………4 Organizational Strategy………………………………………………………………4 Organizational Structure………………………………………………………………7 Organizational Leadership…………………………………………………………….9

Organizational Control…………………………………………………………………10

Ethics and Innovation………………………………………………………………….11

Personal Interest in Apple……………………………………………………………….13

Conclusion…………………………………………………………………………………14

List of references……………………………………………………………………………15

Table of figures

Figure 1: Organizational Structure…….………………………………………………….16

Introduction

Apple Inc was founded in 1976 by Steve Jobs, Ronald Wayne, and Steve Wozniak. Currently, Apple is one of the biggest technological companies globally, with a market value of more than 2 trillion dollars. Apple is regarded as an innovator in the technological field, and it has produced game-changing products and services over the last decades. Some of its most popular products include the iPhone, iPad, Mac computers, and iTunes, among others. Apple’s dominance and success in the global market is attributed to its unique systems, such as its organizational strategy, structure, style of leadership, its controls, and ethics and innovation. Over the years, Apple has been a global leader in technological innovations, and the company has significantly grown while improving the experiences its users enjoy. The growth and dominance of Apple in the technological world is proof that innovation paired with strategic decision-making is the key to developing technological products that positively impact the world while increasing revenue.

Organizational strategy

Apple is one of the world’s largest and most profitable technology companies. The company deals in consumer electronics, online services, and technology software and hardware. Apple’s success and dominance is attributed to its business strategy, which creates a specialized ecosystem that combines hardware, software, and design expertise through vertical integration. Apple’s vertical integration is such that the company builds, controls, and manufactures all its hardware and software. As a result, all products, services, and technologies are tightly controlled through Apple policies that favor a closed ecosystem. Apple’s closed ecosystem is such that Apple products cannot pair with products from other companies. It forces users to exclusively use Apple products, further enhancing Apple’s dominance in technology.

Apple’s mission is to provide its customers with the best user experience through access to innovative software, hardware, and technological services. The company achieves this mission using broad product differentiation. This business strategy helps Apple introduce products and services with key features such as distinctive simple designs and advanced functionality. These distinctive features ensure that the multinational technological company competes with its competitors based on product design instead of price. The company’s broad product differentiation strategy is also evident through the introduction of products and services that serve different niches in the market. For instance, the MacBook product line is specifically designed and created to serve business individuals and organizations. Services such as Logic Pro X and Final Cut Pro X are designed for video editors and content creators. Broad product differentiation ensures that Apple retains its dominance in the market despite the fierce competition witnessed in the technological market.

Intensive growth strategies power Apple’s strategy of broad product differentiation. These strategies include product development focusing on functionality and design, market penetration with a focus on enhancing customer experience, market development with a focus on decreasing dependence on the sale of iPhone, and the strengthening of Apple’s ecosystem. Product development involves researching and creating profitable, innovative, and attractive technological services and products that are functional and aesthetically pleasing. For instance, the introduction of products such as the Apple Watch significantly increased the company’s revenue while serving the customers’ need to track their health and fitness. Market penetration plays a significant role in Apple’s growth and dominance in the market. Market penetration involves gaining dominance in a market by selling already existing products. To maximize its efforts in market penetration, Apple focuses on enhancing customer experience by ensuring its products are easy to use due to their user-friendly interface and ensuring they have a physical presence in most regions across the country. Apple has multiple physical stores across different regions in the country. The public can easily try out different apple products through these stores and ask the staff members any questions related to the company’s products.

Apple uses market development as a strategy for growth. Market development involves the introduction of Apple products in regions the company lacks a presence. The company identifies and authorizes its sellers, thereby introducing its technologies to overseas markets and increasing its market reach. In the USA, Apple enhances its market development by decreasing the business’s dependence on the sale of the iPhone and increasing the services it offers. In 2020 alone, the Apple service business division made 53 billion dollars in revenue, a significant portion of the business’s total revenue (Kangyi, 2021). Lastly, Apple uses its closed ecosystem as a strategy for driving growth. By strengthening its ecosystem, Apple can increase its expertise in technological services, hardware, and software, which sets it apart from its competition. Also, since Apple customers must use all Apple products, the company can leverage its relationship with its customers to introduce them to new products and services, further increasing their revenue and dominance.

Aggressive is one of the threats Apple faces. In recent years, multinational companies such as Samsung, Amazon, and Microsoft have invested heavily in the rapid innovation of new technologies. As a result, these companies can now develop their software, hardware, and online services. Technological services and products from these companies are slightly cheaper than Apple’s services and products, resulting in increased price pressure. Also, stiff competition from its rivals has resulted in lost revenue. As rival companies such as Amazon, Samsung, and Microsoft continually develop and introduce new services and products, Apple has experienced revenue loss. Some of the individuals and businesses that previously relied on Apple products have shifted to using products and services from different providers. Imitators also pose a significant threat to Apple. Imitation companies continue to copy Apple’s product designs and features, and it has resulted in lost revenue as people are more likely to buy these imitations as they are cheaper.

Organizational Structure

Apple’s organizational structure is functional and hierarchical, with many layers of management. This form of structure is used in Apple to ensure the business continues to realize new innovative ideas while maintaining its founder’s vision. At the top of Apple’s hierarchal system is an 8-member board of directors with experience from various industries. The board of directors oversees the chief executive officer. The CEO oversees the senior vice presidents, the chief design officer, the chief operating officer, and the vice presidents. The hierarchical system allows for tight control over the organization’s businesses and technology. Tight control over its technology and business functions ensures that Apple remains dominant in the technology sector (Podolny & Hansen, 2020). Other advantages the hierarchal system provides Apple use include clear-cut levels of responsibilities and authority and ease in growth and promotion opportunities for Apple employees. While multinational companies avoid using hierarchal systems due to their high levels of inflexibility, Apple’s hierarchal system is formed in a manner that the organization’s leadership encourages some extent of decentralization in decision making. This freedom allows for the development of creativity and innovation at various levels within the chain of command.

Apple’s hierarchal system has elements of a divisional organizational structure. The divisional organizational structure is such that different divisions within the company are responsible for different products and services within Apple’s portfolio. As such, the organization’s structure is such that it encourages product-based grouping. Since the company’s inception, Apple has created multiple products and services, resulting in the division of operations. These product-based groups include Apple services, Mac, iPhone, iPad, and connectivity and computing supplies and products (Podolny & Hansen, 2020). Different managerial departments are responsible for each of these products. As Apple’s divisional organization structure is integrated into Apple’s main organizational structure, the organization enjoys intensive collaborations between different divisions. Apple’s in-house collaborative strategies are effective as products such as Apple TV and iWatch are a result of collaborations of different product-based groups. Intensive collaborations between different divisions also ensure best practices and increased efficiency in developing new products.

As earlier highlighted, Apple’s organizational structure s functional. Apple’s functional organizational structure is such that senior leadership oversees company functions instead of products and services. This feature eliminates conflict between the company heads and encourages the development of new products. As senior heads oversee company functions, their success is measured based on the products they develop. This emphasis on product and service development takes the focus off the attainment of short-term financial goals. It encourages considerable investment in the development of new products and services that eventually result in the attainment of long-term financial goals. Apple’s functional organization structure also ensures the bonuses the organization’s leadership enjoys are based on the entire company’s financial performance rather than the financial performance of a single product and service (Podolny & Hansen, 2020). This approach encourages the organization’s senior management to take a holistic business approach that further encourages the development of new products and services and increases collaborations between divisions.

Organizational Leadership

Apple’s prominence in the global market grew during Steve Jobs’s era. Steve Jobs’s leadership was described as autocratic (Pawar, 2014). Steve Jobs micro-managed a wide range of the company’s businesses, and he was the final decision-maker. Steve Jobs’s management style made him known for innovations, perfectionism, and strong leadership, a factor that resulted in him becoming the face of Apple, leading to the rise and growth of loyal Apple customers. To date, Steve Jobs is recognized for developing game-changing products and innovations. Steve jobs remains a hero not just to Apple but also to the technological world. His innovations focused on end user-friendliness, a trait that revolutionized and improved people’s experiences with technological products.

Since taking over as CEO of Apple in 2011, Tim Cook has drastically changed this leadership style as he practices a more democratic leadership style. When making strategic business decisions, Tim Cook places great importance on building consensus among the senior management. This leadership style has resulted in product development teams having greater power and autonomy and therefore decreased the need for the CEO to participate in the development process of new products and services. As Tim Cook has distributed power to various senior management teams, Apple’s employees have termed his leadership style inspirational and transformative (Miller & Maxwell, 2016). Tim Cook has also made the organization’s leadership feel more relatable to the employee, therefore shying away from the previous requirement that the company’s leadership should have elements of autocracy and perfectionism. Tim Cook’s more approachable and democratized leadership style has made him of Apple’s heroes.

Apart from the leadership style differences seen, Apple’s overall leadership style has also changed. Currently, the organization relies heavily on technical experts when making various business decisions. This reliance on technical experts, as opposed to general managers, is based on the logic that Apple operates in an industry in which the life cycle of products is extremely short due to the technological disruptions and changes that occur frequently. As people continue to explore technology, individuals and organizations are frequently coming up with better technologies, thus impacting the relevance of a wide range of technological products. By relying on technical experts, Apple believes that it can stay ahead of the competition as the technical experts can rely on their knowledge and understanding of the industry to make calculated bets on technological services and products that are likely to succeed (Podolny & Hansen, 2020). Also, due to the reliance on technical experts in the decision-making process, Apple has invested its resources in turning its experts into managers. This strategy is based on their belief that turning technical experts into managers is easier than turning managers into technical experts.

Organizational Control

Apple’s hierarchal system supports strong corporate strategic control in which top leaders have the power to make decisions. Strategic control involves monitoring and evaluating the strategies implemented in the organization. The formulation and implementation of its strategic vision have enabled Apple to improve its operations, increase its profits and attract more investors. For instance, the company’s operations management controls ensure that only quality products and developed and released into the market (Krajewski et al., 2015). Operations control also dictates the cost of production and pricing of products. Apple products have premium pricing as the target market is high-income individuals. As a result, the company generates substantive profits while maintaining the perception that its products are premium and of high quality.

Apple’s organizational controls are evident in the company’s information systems. Apple has unified its information resources to create information systems that people can use for personal or professional purposes. An example of its automated information system is iCloud. Other than storing information, organizations can use information systems like iCloud to attract and retain personnel. For instance, organizations can recruit, connect, and communicate with new staff members through cloud services (Pearlson et al., 2016). Organizations can use cloud systems to connect a wide network of employees, thus creating an information base in which effective communication is fostered.

Organizational Ethics and Innovations

Apple’s innovative managerial practices are evident through the company’s collaborative approach to innovation. Apple requires that different departments work together to create and integrate new technologies and products. The collaborative approach to managing its human resource enhances the stimulation of new ideas while simplifying the design and development process. As a result, the collaborative approach Apple management stresses helps the company unveil revolutionary and innovative products that increase profits and help the company fulfill its innovative strategies. For instance, the collaborative approach helps different company departments develop synergistic methods of creating, delivering, and capturing value. An example of Apple’s innovative synergistic method is systemic innovation integration (Amit & Zott, 2012). Apple’s iPad and iPhone had great success due to the company paring these products with services such as iTunes.

Another form of innovative managerial practice is evident through the company’s emphasis on hiring and empowering smart people. Smart individuals tend to bring new perspectives to the organization, a trait that helps overcome existing challenges. Empowering new employees involves using support innovations such as offering professional training and development. By hiring and empowering smart people, Apple taps into the full potential of its employees and firmly places them in a position in which they can develop innovations that help the company remain relevant in the technological world. Once smart individuals are hired and empowered, Apple utilizes its structural dimensions to establish rules that guide employee actions and facilitate innovations. For instance, Apple leverages its cultural diversity to establish employee networks that encourage the identification of new innovative opportunities. These networks encourage the development of new products, and they help different departments within the organizational structure attain a level of flexibility that promotes innovation (Wadood et al., 2016).

As Apple deals with computer software and hardware, some of the ethical issues raised against the company involve inadequate data safety, anti-competitive performance practices and policies, and the inability to solve its electronic waste problem. Currently, electronic waste is one of the biggest sources of environmental pollution. Apple is one of the leading technology companies in the world. Therefore, the company plays a crucial role in producing and managing electronic waste. Despite this position, Apple is continuously criticized for greenwashing. For instance, in 2018, Apple created a recycling robot that disassembles old phones and extracts their material. While creating an electronics recycling robot is an impressive feat, the robot only recycles 200 phones per hour, indicating the company is not successfully managing its electronic waste (Awasthi et al., 2019). Also, since the launch of the iPhone 12, Apple removed accessories such as wired headphones from its packaging. While the company termed this move as a measure toward reducing headphone waste, individuals who upgrade their phones to iPhone 12 will need to buy new headphones compatible with this new model.

Apple has also been accused of using anti-competitive policies and practices in its applications. For instance, Spotify, a music streaming application, accused Apple of keeping large profits while failing to contribute to the marketplace. Apple charges a 30% commission on all applications on its platforms. Apple’s policies ban applications from directing users to pay subscriptions on other platforms, a factor that limits the revenue these applications generate. Apple has also been accused of promoting its eBooks on the App store, and it inhibits rival eBooks from reaching a larger customer base. In addition to these anti-competitive performance practices and policies, Apple has also been accused of inadequate data safety. Some of Apple’s App store applications have been known to extract large volumes of personal data from iPhone users. For instance, the infamous Facebook research app extracted large volumes of personal data that included direct messages, emails, and images. Apple’s default internet web browser Safari has also been known to track and funnel out personal data, resulting in data breaches. Also, as Apple strictly controls and enforces its policies on data access and collection, the company is guilty of allowing different applications on its platform to gain access to its users’ data.

Interest in Joining Apple

Despite the challenges listed above, I strongly desire to join this company. Technology is continuously growing, and it is changing the way people live their lives while expanding the possibilities of humans thriving in any environment. Technology continues to play an important role in everyday life. Currently, Apple Inc is one of the leading companies in this sector; as such, I am interested in joining this company to create positive change and improve people’s lives. Also, I share in Apple’s vision to make some of the world’s best products and make the world better. By joining Apple, I can work with some of the world’s leading experts in the technological field and understand how I can use technology to build products and services that make the lives of all people better. In addition, Apple is a well-known global technology brand. Working in this company will help me build a stronger professional image. Lastly, Apple is synonymous with developing game-changing innovations. By joining Apple, I can be a part of an innovative team that positively changes the technological field and the world at large.

Conclusion

Apple’s dominance in the technological field is proof that innovation paired with strategic decision-making is the key to developing innovative game-changing products that positively impact the world. By emphasizing innovations and creating organizational systems that support this goal, Apple has fulfilled its mission to create innovative software, hardware, and services that provide users with the best user experience. Overall, the success of this company is proof that technology companies create technologies that are easy to use while improving the lives of people. Though Apple experiences various challenges, it is apparent that by focusing on developing innovations, this company will overcome any challenges.

References

Amit, R., & Zott, C. (2012). Creating value through business model innovation. 2012, 53.

Awasthi, A. K., Li, J., Koh, L., & Ogunseitan, O. A. (2019). Circular economy and electronic waste. Nature Electronics, 2(3), 86-89.

Kangyi, W. (2021, June). Analysis of Financial Policy at Apple Company in 2020. In 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021) (pp. 150-153). Atlantis Press.

Krajewski, L. J., Malhotra, M., Malhotra, N., & Ritzman, L. (2015). Operations management. Pearson Education, Limited.

Miller, T., & Maxwell, R. (2016). Apple. In Global Media Giants (pp. 369-382). Routledge.

Pawar, D. V. (2014). Styles of leadership. International Journal of Research in all Subjects in Multi Languages, 2(7), 12.

Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016). Managing and using information systems: A strategic approach. John Wiley & Sons.

Podolny, J. M., & Hansen, M. T. (2020). How Apple is organized for innovation. Harvard Business Review, 98(6), 86-95.

Wadood, S., Gharleghi, B., & Samadi, B. (2016). Influence of change in management in technological enterprises. Procedia Economics and Finance, 37, 129-136.

Figure 1: Apple Organizational Structure