Apple Incorporation’s organizational structure is specially constructed to behave like an enormous one group, which has been a key contributor to Apple’s success since it was founded by Steve Jobs.
WHAT IS THE STRUCTURE OF ORGANIZATION (ORGANIZATIONAL CHART)?
Apple Incorporation was formerly operated by CEO Steve Jobs like a large startup company, in which it is characterized by both features of the functional and divisional type of traditional organization structure. By looking at the chart, it is easy to recognize Steve Jobs was the central of the whole company and in charge of main responsibility for the Apple’s operation. Apple’s corporate structure can be depicted as slightly resembling to a hierarchy, but the key distinction is the role
…show more content…
For instance, there is vice president (VP) in the structure for the iPod/iPhone design, VP for the channel sale, VP for iPad marketing. The implication of accountability is strictly carried out in such situations by Steve Jobs so that the direct responsible individual (DRI) to be in charge of a specific project is clearly shown on the three- hour weekly operations meeting …show more content…
The lower staff is excluded in the decision-making process. In Steve’s management, everything must flow through his office and require for agreement prior to the implementation of the projects. According to The New York Time newspaper, Steve Job does not use the source of information from third-party market research rather than from his or his group of senior vice presidents. One drawback of this kind of decision-making process is the delay and the slowness of the product decision. Moreover, complete dependence on the capability of a person to decide all aspects may lead to bias perspectives or defects influencing the economic prospect of the organization, especially such a giant as Apple Incorporation. After the replacement of Steve, the decision-making process has been changed to the more decentralization. Tim Cook’s approach aims at allowing more autonomy - the right to make decisions and take actions, to the vice president level and this will strongly elevate the position of these employees. Letting managers know what they can and ought to behave to some certain extent will motivate them to branch out with more creative opinions and innovation beneficial to the
These smaller groups are assigned to a particular field of service. Each semi-autonomous group has a group head who is designated as the Executive officer or Vice-President of that particular section. The top executive of a specific section only manages the general activities such as hiring and budgeting of that particular section only. The divisional hierarchy prevalent in the Bank of America has various advantages associated with it.
People prefer to have freedom and make their own decisions, rather than having someone always watching them and deciding what to do. As companies in the past two decades are beginning to allow their employees to have more freedom than, have a say in the company, and make decisions without having to consult a boss. Michael Lewis writes about two different style of companies, one is a pyramid system and the other is a pancake system, both important terms in his essay, “Pyramids and Pancakes.” As Lewis is describing these two styles of companies, he gives multiple examples, including one about Marcus Arnold, who is involved with a pancake style company. The company was AskMe.com which is a website that allows people to exchange information.
This is an example of flat organisational structure as there is no middle management. The organisational structure of Macmillan Is split up into 6 different sections. The first and most important sector is the chief executive whose job it is to make the big decisions and to manage the major operations and resources of the company and finally acting as the main communicating point between board of directors and corporate operations, and then there is a board of trustees that the chief executive rely on to help them with the important decisions.
Furthermore, a leader can play a significant role in terms of judging and decision making in a more complex changed phenomenon. According to Cummings and Vorley (2007) to clarify and shift IBM’s culture, it needed to change its approach. Participative Approach The Participative approach, is often called the democratic leadership style as participative leadership values the input of team members and peers in general, but the responsibility of making the final decision relies with the participative leader. Participative leadership increases employee morale as employees make contributions to the decision-making process. It shows the employees and tends to make them feel as if their opinions do really matter.
Apple states in their Form K-10 Report (2017, p.1) they are “committed to bringing the best user experience to its customers through innovative hardware, software and services.” In an Industry where profit margins are low, technologies are constantly evolving and competition is high it is essential that Apple continues to offer innovative and simple products that increases customer experience (Heracleous, 2013) so to maintain a competitive advantage. A variety of tools have been used to evaluate Apple’s external and internal environment, including the PESTEL (Appendix 1), Porter’s Five Forces Analysis (Appendix 2), SWOT (Appendix 3). It is envisaged that the information derived from these tools and the associated analysis will support Apple’s CEO to make strategic decisions that addresses the challenges ahead in the short term, ensuring Apple can be competitive in the long term (Rothaermal, 2017).
Q1a. MARKET STRUCTURE OF APPLE INC Apple Inc. operates different types of market structure in terms of their different products. In the smart phone business, they happen to be one of the major players with their different models of the “iphone” which makes them operate in an oligopolistic market. Oligopoly arises when there is an imperfect competition in which there are just few firms producing similar products. As a result of high competition, monopolies, interdependence among firms there are just a few big players having the market power and making it very difficult for new firms to penetrate the market with their products.
Apple’s vision Apple 's vision is to create and deliver electronic music and personal computers to individuals, teachers, employees, students, and computers used in government agencies and companies. Apple 's strategy focused on enhancing its ability to design and contribute to its development, It’s easy to use and distinctive design and innovative. Importance of knowledge management in Apple Company Knowledge Management (KM) is a discipline that improves Apple 's ability to better solve problems, adapt, evolve to meet changing business requirements, and survive with disruptive changes.
At Apple, Steve Jobs was firmly believed that it is essential to encourage the employees and make them show the best. He always reminded employees that Apple is a good company, it was a honor to become one of the number of this company. It was to make them understand that everyone was noticed. This led employees to believe in their abilities, know their talents so that they could show the best in the
Apple Inc. embraces diversification strategy as a means of promoting its viability in the market. Largely, the creation of the three products lines compounds the sources of the company’s income. In fact, the company does not rely on a single source of income because the product design belongs to different categories. This strategy cushions the business from suffering risks of associated with depending on a single business. According Hitt, Ireland, and Hoskisson (2014, p.135), the benefit of handling many products is that when one product fail or does poorly in the market, the business is would shift its attention of the best performing products.
ACHIEVING GLOBAL COMPETITIVE ADVANTAGE OF APPLE INC. Apple Inc. is an American conglomerate company located in one immeasurable loop, Cupertino, California in the middle of the Silicon Valley. (OPPapers, 2012). Apple is motivated on their designing, developing, innovating new products like the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc.’s main products are iMac, iPod, iPhone, iPads and its latest advanced product is iWatch, which is on the edge of creating another revolution after iPhone. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company.
1. INTRODUCTION Apple Inc. Official, a famous IT company in the world, began with a computer. They produce electronic gadgets with a good quality and attractive over the year. With their massive success, however, they are actually having problems, regardless internal or external problems.
3.0 Macro Environment that Effects Apple Social-cultural, technology, economic, political and legislation is the elements of macro environment that effects Apple which are described as below: 3.1 Social-cultural ITunes is Apple’s biggest virtual media store. In general, the image of the Apple also depicts the modern individual lifestyle, combining function and conception, resulting in brand recognition and commitment. In conditions of the demographic features, Apple is targeting the two major generations. One generation is mainly consists of working adults, where they might sustain a higher and stable income to purchase Apple’s expensive and complex equipment. Thusly, the sophisticated and high-tech Apple products would definitely
The company’s products and services include the infamous iPod, iPad, iPhone, Mac, and Apple TV. Apple has a collection of consumer software appliances, various operating systems, and a variety of other services. (apple.com, 2014). Within this research paper, we will discuss Apple’s internal and external reports along with factual examples to support the reasoning provided. Introduction Apple Inc. is an American international association headquartered in Cupertino, California.
The different type of structures (1) Functional – each portion of the organisation is grouped according to its purpose. (2) Matrix - ‘’ creates project teams that cut across traditional functional departments, instead of highlighting the role or status of individuals, it gathers together a team of specialists with the objective of completing a task or a project successfully ‘’ . (3) Divisional – It is the grouping of workers on the basis of products being produced, followed by the functional structure. There are two types of divisional structure , (a) Product structure (b) Process structure (4) Geographical – It is the grouping of workers on the basis of regions, followed by the functional structure and , (5) Hierarchical structure which has been adopted by Ritz Carlton. It shows the different levels of hierarchy, span of control and chain of command.
The top management is the final authority and it manages policies and aims for an initiative. It basically focuses on coordinating and planning functions. Led by Chairman Peter Brabeck-Letmathe, the Board has 14 members to handle different parts of the business round-the-globe, supported by Chairman’s and Corporate Governance Committee, Nomination and Compensation Committee, Audit Committee, and Finance Committee. Middle Level of Management: The branch managers and departmental managers constitute the middle level.