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One of the most succesfull technology company is an American corporation based in Cupertino, California- as you guess is Apple Inc, that create, promote and sells consumers electornic devices, software for computers and provide online services. The most famous products of Apple is iPad, Mac, iPod, Apple watch and the most hardware product is iPhone. Apple products include own operating systems, also apple provide online services for the consumers.
Steve Jobs was born in San Francisco, California, on February 24, 1955, to two University of Wisconsin graduate students who gave him up for adoption. Smart but directionless, Jobs experimented with different pursuits before starting Apple Computer with Steve Wozniak in 1976. Apple's revolutionary products, which include the iPod, iPhone and iPad, are now seen as dictating the evolution of modern technology, with Jobs having left the company in 1985 and returning more than a decade later. He died in 2011, following a long battle with pancreatic cancer.Under Jobs' guidance, the company pioneered a series of revolutionary technologies, including the iPhone and iPad.
This poster-presentation covered the aspects about external and internal environment of Apple Inc. and explained how powerful and big is the company. According to (Forbes.com, 2015) Apple inc. is the most valuable corporation. In 2015 Apple have the highest profit, sales and assets between technology companies.
Apple Inc., has created many offices around the world and the political factors affecting the decision-making process in the company. For company like Apple Inc. is very difficult to control the political forces. In period 2007-2009, sales from other countries were more than half of their sales for this period. However, Apple decide to spread their product manufacturing to other companies outside America. As was mentioned, Apple inc, placed their company in some other countries : China, Korea, Cork, Ireland and Czech Republic. The global problems: terrorism, wars, public health issues between America and these countries might give a negative impact that may damage the Apple Inc reputation as well as their business process.
The lower tier of Apple’s organizational structure has product-based grouping, which is an element derived from the divisional type of organizational structure. Below the senior vice presidents, there are many vice presidents for different outputs or products. For example, Apple has a VP for iOS apps, a VP for iPad, and another VP for consumer apps. This aspect of the organizational structure enables Apple to address specific products or product components.
Apple Inc. is recognized as multinational company, for this reason world economic condition affect the business process in corporation. The most important economic factors are recession, exchange rate and the inflation. For example, during inflation period in the U.S. the purchasing power of all the people will decrease and sales of Apple’s product in U.S. will also decrease. As U.S. dollar has lost in value, to minimize the effect of inflation Apple Corporation has purchased itself foreign currency. By doing so the revenue of their product in international market will increase.
The upper tier of Apple’s organizational structure has function-based grouping, which is an element derived from the functional type of organizational structure. Each senior vice president who reports to Tim Cook handles a business function. For example, Apple has an SVP for industrial design, an SVP for marketing, and another SVP for retail. In this aspect of the organizational structure, Apple’s top leaders address business needs in terms of function areas.
Social factors are virtual world, lifestyle and globalization, these three factors gives a huge impact to Apple Inc. business development. Technology had become the most important media that makes this globalization developed faster and wider. The Virtual world that we can access to nowadays technology is used by Apple as a big business opportunity by developing many virtual media. Music market to cyberspace has big roles that influences people to use this virtual world.
Apple is globally seen as the King of technology caused by their virtual media development and design improvement. The reputation of Apple also goes up and many people had started using it and have become a lifestyle.
A bird’s-eye view of Apple’s organizational structure shows considerable hierarchy. In the past, everything went through Steve Jobs’ office. Jobs made all the major decisions.
However, under Tim Cook’s leadership, this hierarchy in Apple’s organizational structure has slightly changed. There is now more collaboration among different parts of the company, such as software teams and hardware teams.
Apple’s vice presidents have more autonomy, which was almost absent under Jobs. Thus, the company’s organizational structure is now less stiff, but still has a spoke-and-wheel hierarchy where Tim Cook is at the center.
Apple needs to upgrade their product more often, because of new innovation developed and the big competition on technology market. In this case Apple will invest a lot of their capital to the Research and Product Development. One of the examples is that Apple installs its own brand operating system, which increases its production cost, and on the other hand Dell as its competitor uses Microsoft’s operating system in all of its products.
That is why external technological factor will also help apple to plain their new goals to compete with their competitors.
Apple needs to upgrade their product more often, because of new innovation developed and the big competition on technology market.
Apple’s organizational structure is one of the factors contributing to the company’s successful innovation. A firm’s organizational structure can create opportunities for business growth. However, it can also impose limits on how the firm develops.
Apple’s organizational structure enables the firm to continue innovating rapidly. The creation of new products like Apple Watch is linked to the support from the firm’s organizational structure. The following are the most significant characteristics of Apple’s organizational structure: