PCL Part - 5
Apple Inc.
I am interested in discussing about the most famous brand, especially for phones in today's generation, Apple Inc. I recently
switched to an iPhone after thinking about it for a long time. That’s why I
thought why not do some research on apple.
Founded in
1976 by Steve Jobs, Ronald Wayne and Steve Wozniak, the company first aimed to
create and sell computers. This was a surprise to me that Apple was founded for computers. The first models sold were Apple I and Apple II in
1970s. Apple’s mission statement is “To bring the best user experience to its
customers through its innovative hardware, software and services.” Apple's goal is to satisfy a wide range of customer
needs with modern and innovative eco-friendly gadgets and services that deliver
the best user experiences. The company's success and leadership in the
technology sector have been largely due to its commitment to functionality,
aesthetics, and sustainability.
While Apple grew during the 1980s, it also encountered
some difficulties, such as Steve Jobs's 1985 exit during a power conflict
with the CEO at that time who was John Sculley. Microsoft's Windows got
released during the same time and became a significant rival to Apple's
Macintosh computers. However, Apple continued to enjoy a devoted following and
great brand awareness.
Steve Jobs returned to the leading position once again in the 1990s and early 2000s, and that is exactly when Apple had a historical boom in the market. With the introduction of well-known devices like the iMac, iPod, iPhone, and iPad, the firm turned Apple into a dominant market leader in consumer electronics. Specifically, the iPhone rose to fame as Apple's lead product and a worldwide sensation. I got flashbacks of when my dad bought the very first iPhone which was released in 2007 while researching about the company’s background. I was around 5 or 6 years old, and my dad had brought it from Dubai. It felt like I was living in the future as that was the first touch screen phone that I saw. In addition to all the gadgets, Apple now offers services like Apple Store, Apple Music, Apple TV+.
Steve Jobs unfortunately passed away in 2011. That’s when Tim Cook overtook him as the CEO and has since carried on Apple's success, making the company the first globally traded business to attain a $1 trillion market valuation in 2018.
Apple’s
External Environment Analysis
Political
Factors: International Trade policies and
disputes between nations are a big political factor. Disputes can hinder trade
and affect the business negatively. Political criticism and legal challenges
have been thrown at Apple's tax policies, which include keeping money offshore
to avoid corporate taxes in the United States. Political controversies can
arise in Apple's disagreements with governmental organizations, such as the FBI, about
matters like device encryption.
Economic
Factors: Just like any other company, global
economic fluctuation can affect Apple as well. Inflation, rise in taxes and
exchange rates can affect Apple’s consumer market and demand. Changes in labor
cost can affect Apple’s production processes and even affect the company’s
profit margins.
Sociocultural
Factors: Demographic shifts and new trends change
rapidly in today’s world. One thing can be a trend now and be completely gone the
next day. For example, Facebook used to be quite famous for young generations a
few years ago. After Instagram got famous, Facebook’s user demographics changed
completely and now it is considered as mom and dad’s social media platform.
Same way Apple can be affected with societal changes.
Technological
Factors: The requirement to be up to date with
the ever-changing technologies to hold their position as a leader can be a
challenge for Apple Inc. It is crucial to guarantee connectivity and smooth
user experiences throughout Apple's network of goods, services, and platforms.
As Apple's digital products and consumer data become more significant,
cybersecurity and data privacy become crucial factors to take into account.
Environmental
Factor: Apple has taken steps to lessen the
impact on the environment, including employing renewable energy sources and
considering product recyclability throughout design. Environmental and
sustainability issues, such as Apple's carbon footprint and e-waste management,
are playing a bigger role in influencing consumer attitudes and legislative
environments.
Legal
Factors: Apple may face legal challenges
regarding its own company rules and procedures, including those relating
to after-sales service and repair. Apart from that, its worldwide operations
depend heavily on adherence to an extensive variety of regulations and laws,
including those associated with intellectual property, competition laws,
consumer protection, and data privacy.
Apple’s
Internal Environment Analysis:
Apple’s organizational tasks and goals
are very straightforward and are mostly based on its mission statement. The
company is dedicated to bringing innovative hardware, software, and digital
services to market along with ongoing innovation. This is what motivates
Apple's R&D ambitions. A significant organizational focus is upholding
Apple's premium place in the market, strong brand identification, and design
aesthetic.
One of the most important
organizational responsibilities is making sure that all of the platforms,
devices, and services in Apple's ecosystem work together seamlessly. This helps
the business achieve its objective of offering the greatest user experience. To
further its capacity for innovation, Apple is renowned for drawing in the best
talent in software development, engineering, and design. Cross-functional teams
are a common way for Apple employees to work together on problem-solving and
new product development. This encourages a creative and innovative culture.
Apple places a high value on privacy and confidentiality, which
limits information exchange while also giving staff a sense of exclusivity
and dignity.
Apple's success and continued growth have been greatly linked to its capacity for ongoing innovation and market adaptation. The company has managed to hold onto its dominant market position and devoted customer base by putting a strong emphasis on design, user experience, and ecosystem integration. To maintain the pace of its growth, Apple needs to navigate changing regulatory frameworks, competitive landscapes, and technical improvements as it enters new product and service categories.
Organizational Structure Design
Based on my research and analysis, it is best to keep the company regulated with a hierarchical structure, with senior executives in charge of the main departments such as engineering, human resources, marketing and sales. This makes it possible for the entire organization to focus on long-term innovation and to coordinate and communicate effectively. This way, Apple will be able to put overall business performance ahead of success of specific product line or short-term goals.
Divisions depending on Products: Divide the business into discrete
product-based segments, like Apple services, Mac, iPhone, iPad, and so forth,
and assign leadership teams to each. For the various product lines, this divisional structure offers specialized
knowledge and independent decision-making authority. It assists Apple in
meeting the particular requirements of its wide range of product offerings and
clientele.
Increased Collaboration and Talent Retention: Improve cooperation and communication between the different functional teams. Increase organizational structure flexibility to enable more rapid response to shifting market dynamics and client demands. Encouraging communication through different departments will help to create a positive and refreshing work environment. This will also help in bringing new, innovative ideas to the company. Provide possibilities for career advancement, competitive pay, and an environment that encourages creativity and innovation. Keep putting elite talent in fields like software development, engineering, and design at the top of your priority list. Have such a strong package for them that they should only have a solid reason to leave the company, and not a lame one like getting a better salary or benefits in another organization. To have similarity and ease of understanding, the organizational structure should be simple and uniform in all the countries around the world. It should be kept basic, yet structured and easy to navigate through.
Organizational Structure Chart
References
https://www.globaldata.com/company-profile/apple-inc/
https://www.sfu.ca/~sheppard/478/syn/1123/Synopsis5.pdf
https://ivypanda.com/essays/the-apple-company/
https://guides.loc.gov/this-month-in-business-history/april/apple-computer-founded
https://research-methodology.net/apple-pestel-analysis-4/
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