Application of the Industrial-Organization Model - Essay Example

Effects of Globalization and Technology change on Apple Inc. The world of the 21st century is moving at a fast pace. The fast pace of advancement of the modern day world is more on the lines of rapid change and tremendous development. It is to be mentioned that the emerging era of technology advancement and the up gradation of efficient telecommunication networks has highly supported the growth and development of electronic gadgets. Today the day-to-day lives of every individual are highly associated with these technology enabled gadgets that brings the whole world within their reach. The internet plays a major role in the process of creating the channels of communication in the various regions of the developed as well as the developing economies. Because of the enhanced level of connectivity brought forward by the evolution of the internet, the world has transformed into a single connected entity. This technology powered transformation has automatically helped in the process of speedy diffusion of various trends of globalization, which continues to arise from various corners of the world. The trends of globalization bring into effect a significant amount of change in regards to consumer behavior of the masses of various locations. It is highly interesting to cite that the changing consumer behavior of the various markets around the world automatically creates the need for various new kinds of products and services, which in turn paves the way for evolution of significant business opportunities. Hence, it can be said that the factor of technology has largely integrated itself with the factor of globalization for the purpose of development of strong business opportunities in various global markets. It is to be noted that the organization that has been chosen in this case is Apple Inc., which is a highly popular global brand in the electronics gadget segment. The organization has a highly diversified global product portfolio which manufactures portable music players, computers as well as latest technology mobile phones. Talking from the perspective of globalization, it can be said that the organization has achieved a tremendous amount of growth through successful capitalization of the business prospects. Because of the impact of globalization the awareness for the products of the company has been widely spread across various global markets. This increased awareness of the products got transformed into a huge demand in the multiple markets around the world. Also the diversified product range which includes iPods, iPads and iPhones has proved to be successful in drawing the attention of the young generation. This ultimately resulted in the high sales of the products of the Apple in the domestic as well as the international markets. While weighing the aspect of technological change, it has to be considered that the faster evolution and high penetration of the internet has brought a positive impact for the products of the organization. While the products of the company are high on innovation as well as new edge technology, yet a large amount of the product features are tremendously dependent on the connectivity provided by the internet. Also, it has to be highlighted that the advancement in technology by the rival product manufacturing companies has also contributed in developing products with new features and up graded versions by the globally popular company (US Sec, 2012, p. 6). 2. Application of the industrial-organization model and the resource-based model. The industrial organization model takes into account the variables of complexity and strategic importance. Matching the two variables in a two by two matrix, four kinds of scenarios can be chalked out. Under high complexity and low strategic importance, the outsourcing option seems most viable. Under situations of high complexity and high strategic importance, the option of business process reengineering looks more valid. Under circumstances of low complexity and varying level of strategic importance, the options of outsourcing or automation might be considered (ACCA, 2010, p. 7). In judging the industry organization model of Apple, it can be stated that the organization focuses on the process of business process reengineering while keeping a strong focus on product and service innovation. The innovation and business process reengineering results in creating an edge in the market, which helps in creating a better performance of the company in the market in regards to its rivals. In discussing the resource based model of Apple, it needs to be considered that the globally popular electronics company has a vast portfolio of product and service offerings. The organization has identified it for the purpose of generation of continuous demand for the products, the interest of the third party software developers play a vital role. Hence, for effective resource management, Apple continuously focused on development of innovative products. Also, since the portfolio of Apple consists of a number of services, the focus of apple to provide high level of security and data protection helps in a great way in the generation of above average returns for the company. 3. Influence of vision and mission statement on the firm’s overall success. The vision and mission are two very important aspects of an organization. The Mission Statement is a written document where the ideas and thoughts of the company are communicated and the purpose of the firm is clearly defined to the internal and the external stakeholders. This statement helps the managers in the decision of resource allocation. The Vision Statement is a kind of future planning document which represents the firm’s upcoming developments. These statements are very useful in the strategy-making decision of the firm. In case of Apple, both the long and short term goals are very crisp and well communicated in nature. In the new vision statement which has been designed under the new management leadership, the company establishes its focus on the lines of simplicity, perfection as well as enhancement of human life (Strange, 2013). The company’s mission statement gives a summarized glimpse of the technological marvels that has been achieved by the organization in the last few years (Apple Inc, 2013). It is significantly relevant to state that in the context of defining the mission objectives of the company, Apple Inc, simply restated its focus on innovation. Now in analyzing the influence of the vision statement in the success of the organization, focus has to be given to the services and products which are offered by the company for the purpose of value generation for the consumers. It can be noted that products of Apple are increasingly getting user-friendly and more advanced in nature as compared to its rivals. This clearly helps in providing an extra mileage for creating the demand for the company’s products, which in return generates success for the company. Now, while considering the mission statement, the innovation aspect of the organization comes into lime light. The organization, because of its focus on innovation has always included new features in its value based offerings. This automatically helps in the creation of a competitive edge for the Apple brand which further consolidated its success in the market. 4. Influence of the various categories of stakeholders on the success of the corporation. It is important to mention that since Apple is a multinational company; its stakeholders are present in various markets around the world. Since, Apple is a public listed company, the stakeholders of the organization comprises of shareholders, employees, customers, suppliers and manufacturers. The organization, which always focuses on promoting quality and innovation in its products, provides a lot of importance to the customers. In assessing the role of the customers in the success of the organization, it has to be considered that the customers are the ones who are responsible for the driving the demand for the company’s products and as well as generating the revenue. The role of the employees in the success of the organization is also very high as they are the ones who are actually responsible for the value creation for the customers. The suppliers and manufacturers associated with Apple also has a significant contribution towards developing the success of the company since they provide the essential skills and physical resources that are required to create the much desired product or service for the company’s highly valued customers. Reference Strange, A. (2013). Apple unveils post-steve jobs mission statement video. Retrieved from: http://www.pcmag.com/article2/0,2817,2420227,00.asp Apple Inc. (2013). Frequently asked questions. Retrieved from: http://investor.apple.com/faq.cfm?FaqSetID=6 US Sec. (2012), APPLE INC. Retrieved from: http://files.shareholder.com/downloads/AAPL/2559707440x0xS1193125-12-444068/320193/filing.pdf ACCA. (2010). Position and resource based strategies. Retrieved from: http://upload.news.esnai.com/2013/0328/1364451683914.pdf Read More