Apple Inc Business Organization - Assignment Example

 APPLE INC. Mission ment Commitment to enabling s who comprise of creative professionals, and educators to have the best computing experience through the provision of the most innovative hardware and software applications in addition to offering of internet services. This is to be achieved through a focus on the varying needs of consumers. Vision Statement Apple’s vision is to be the most innovative company in the computing, mobile phone and telecommunication industries of the world. This innovation is achieved through enhanced and improved technologies in all of the company’s products and services which are aimed at meeting the changing needs of consumers and the business environment. Business Organization Apple Inc. has international operations which are operated from its California based headquarters. The company is headed by a team of top executives who are responsible for making strategic decisions which affect the company’s future operations. The management of the company and its activities are directed by a group of board of directors. The company’s business operations are divided into various functionalities which include consumer electronics arm, personal computers and software and mobile phones. The business activities are effectively designed into design, manufacturing or development, sales and marketing, development and research. Since the company operates in several markets across the world, it has varying levels of management and organizational or business activities. Strategic Environment The strategic environment within Apple’s business environment can be analyzed through the application of Porter’s five forces for competitive advantage of a company. According to Porter (1985, p. 54), the threat of new entrants into the market poses a significant challenge to the competitive of a company. Since Apple operates in many markets across the world, it is evident that the company is challenged by the new companies which arise in these markets and provide products and services similar to those of Apple. Examples of new entrants into the Apple’s business environment include new mobile phone companies, telecommunication service providers and manufactures of computer systems and mobile phones which comprise of the services and products that the company provides. The threat of new entrants is more significant when these new operators provide services at a cheaper price than a specific company (Porter, 1985, p. 65). The power of buyers who represent the consumers of Apple’s products is a significant force that determines the company’s strategies for competitive advantage. The information and communication industry as well as the mobile phone and telecommunication sector across the world is very dynamic. This means that the needs of consumers change frequently in relation to their tastes and preferences (Porter, 1985, p. 72). It is in this sense that Apple Inc employs a strategic plan that focuses on fulfilling or meeting the needs of consumers. This is because consumers comprise of the most important stakeholder for any business. Hannagan (2009, p. 43) points out that the power of suppliers play a significant role in defining the business strategies that are employed by a company for strategic advantage within the market. The suppliers of Apple’s raw materials determine its success in production and assurance of quality for its electronic, computing and mobile phone products. It is in this sense that the company is mandated to ensure that in all of its markets especially where its production processes are situated has access to suppliers. More importantly the company ensures that it maintains a positive relationship with its suppliers so that it would maintain their loyalty. In this light, the company is able to become strategically competitive within its business environment by producing the best quality of products and services. Hannagan (2009, p. 29) says that the threat of substitute products within a company’s market becomes a challenge for its competitiveness. The substitute products which are likely to threaten the business success of Apple include counterfeited products. These products would be sold at lower prices and as a result making them to attract more consumers. This is the basis upon which the company designs its strategic plans for pricing and overcoming the threat of substitute products. Organizational Structures, Processes and Systems The organizational structure within Apple is represented by the CEO at the top of the structure. The CEO of the organization is the topmost figure of the organization. In addition to acting as a figurehead for the company’s business operations, the CEO plays a central role in making important strategic decisions such as mergers and acquisitions of the company with other organizations for the pursuit of similar goals and interests. Below the CEO are the various directors who also play executive functions within the company. In the organizational structure of the company are various officers within the company who fall below the directors and who are mandated to oversee various processes and systems of the company. The systems of the company include global communications, sales and marketing, product engineering, retail, operations, innovation, software, hardware, design, human resource and legal systems. Global communications is a system that is responsible for ensuring that the global business of the company is effectively coordinated to ensure that all subsidiaries are motivated by the need to achieve a common goal. The sales and marketing function of the company involves processes of promoting the company’s products and services. This includes advertisements and online marketing communication of the company’s PCs and mobile phone products with an intention of ensuring that they reach a global audience. Product engineering, design and innovation are business processes within the company which are part of the production system or function of the organization. For example the engineers within the company design and manufacture various hardware and software applications in addition to mobile phone devises. It is therefore notable that the production system of the company falls under the most important functionalities of the company. This is dues to the fact that the effectiveness of designs and the manufacturing process defines the quality of products and therefore the competitiveness of the company within its business environment. More importantly is the innovation process within the company. This is the core business process within Apple Inc. because it is defined within the company’s vision and mission statements. The hardware and software systems and processes within Apple include the manufacture of the company’s PCs, system and application systems in addition to the mobile phone handsets and applications. Each of these processed are managed individuals under the systems below whom fall the employees or staff of the company. The Strategic Fit with the Environment The strategic fit within Apple’s business environment is desirable considering that it is one of the leading and most competitive companies on electronic, computing and mobile telephony. This is attributed to proper leadership, business strategy and strategic plan and objectives. According to Johnson & Scholes (2009, p. 18), the ability of a company to become competitive and achieve a larger share of the market is determined by its business strategy and objectives. It is in this regard that Apple has focused on innovativeness of its products which has made it competitive in the market of quality and compliance with the radical changes within the information and telecommunication industry of the contemporary business environment. Through high quality and innovative products the company has been able to meet the changing preferences of the consumers. This can be illustrated by the smart phone technologies and the production of iPads that are designed to meet specific need of users and their preferences for newer technology. Regardless of the competitiveness that Apple has demonstrated within its market, it has faced business challenges from its rivals such as Microsoft which is the leaders of computer hardware and software production, marketing and sale across the world. For example the Mac as designed and produced by Apple has been challenged over the years. This demonstrates that the competitive fit of the company’s computer products and designs requires to be improved through proper strategies. However the company has performed exclusively well within the mobile phone industry as demonstrated by its high technology smart phones and applications for music such as iPods which enable the user to access a variety of services. In this regard, the competitive strategies of the company fit well within the mobile phone industry. The management within Apple and organizational culture has been described as responsible for its competitive fit within the industry. This is attributed to effective hiring strategies which ensure that talented employees and skilled personnel are absorbed to the company. These are attributed to the innovativeness of the company’s products and therefore their ability to fit to the changes in technology within the telecommunication industry. In addition, proper compensation of the employees is the cause of their productivity and the cumulative higher performance of the company within the industries o its operations. It is therefore evident that regardless of the challenges that the company faces in its business operations, it has managed to fit into the competitive environment through proper design and implementation of strategic plans, objectives, mission and vision. Recommendation for Future Strategic Actions Regardless of the business success that Apple has registered in the computing, mobile phone and telecommunication industries, it is notable that it is yet to overcome the challenges that it faces from its business rivals such as Nokia, LG and Samsung. This can be achieved effectively through the application of proper marketing communication strategies. This includes the employment of online marketing and promotion so that a global audience is reached and influenced to have interest, desire and loyalty to the company’s products and services. More importantly market research should be conducted comprehensively by the company. This will enable it to understand the changes in tastes and preferences as a basis for innovativeness which is aimed at meeting the dynamic need of the market. References Hannagan, T., 2009, Management: Concepts & Practices, London: FT Prentice Hall. Johnson, G. & Scholes, K., 2009, Exploring Corporate Strategy, London: FT Prentice Hall. (Various editions) Porter, M., 1985, Competitive Advantage, New York: MacMillan/ Free Press Read More