Analysis of Apple Inc - Multinational Technology Company - Essay Example

Apple Inc. Analysis Company background Apple Inc. is a multinational technology company that is based in United States. The company was founded in Cupertino, California. Apple Inc. is today among most valued technological firm. The company is known for its cutting edge technology and innovative products. The company designs, manufactures electronic products as well as market these products to consumers. Apple Inc. pioneers in technology hardware products such as the iPod, the iPad, Macintosh based computers and the iPhone (Lashinsky, 98). Apple Inc. operates 300 stores worldwide and employs close to 45000 employees. The business environment Apple Inc. is very dynamic and competitive. The company in recent years has embarked on various strategies to not only boost their sells but likewise transform their organizational culture (Lüsted, 99). Presentation and discussion of Apple Inc. mission and vision Apple Inc. as a company is devoted to ensuring their social responsibility is of highest standards in all that they do. In this regard, the companies they deal with or do business with are expected to use manufacturing processes that are environmentally responsible at any time their products are designed or manufactured, provide safe working conditions and treat employees fairly. Apple Inc. believes that they are supposed to control and own the main technologies behind their products (Ireland, 45). The company believes in participate in the markets where they can positively and significantly contribution. Likewise, the company strives to design and manufacture high-quality; easy to use products and low cost that integrates high technology for their consumers. Through analysis, Apple Inc. company mission statement and vision ensure all inclusive cultural environments that enable the company remain competitive. There exist a unique depth, breadth and tenure midst the Apple Inc. executive team who lead over 36,000 employees. Apple Inc. vision and mission statements incorporate the essence of the company. It explains the goals of the company today and reflects its future production targets. Apple Inc. Mission and vision statement is very unique and echoes its company’s culture. Through critical analysis, Apple Inc. vision and mission statement describes their values. In other words, it’s Apple’s DNA (Lüsted, 90). Presentation and discussion of the Apple Inc. current strategic plans and direction With regard to analysis on Apple Inc. using various key models and tools and company reports, the company’s current strategic plans and direction are geared towards enhancing business culture and profitability. Some of the recent strategic plans and direction at Apple Inc. includes Market Penetration: Apple Inc. strategic plan of market penetration focuses more on the already existing market. Apple Inc. is today among most valued technological firm and the strategy is in line with this success. In addition, the company already has large market share and is ruling the technological business in various segments. Apple Inc. is likewise aware that they do not need extra competency or manpower to accomplish this strategic plan. Thus, the company in recent days has embarked on only trying to grow or expand their customer base. In order to accomplish this, Apple Inc. has opted to employ the Strategic Alliances technique where, Apple Inc. has been utilizing the competencies and resources of their alliance. Through critical analysis, this strategic direction and plan can be considered feasible with regard to resource deployment. Product differentiation strategy Apple in recent days has attempted to increase their market demand for its technological products through differentiation. This strategy entails making the company’s products more attractive and unique to consumers. The company’s products such as personal computers, iPod, the iPad, iPhone, Macintosh have always been developed to better place in sells to its peers. In spite of high competition and the dynamic market the company operates, Apple Inc. has been successful in creating market demand for its technological products, giving them power over prices in terms of product differentiation, brand loyalty, innovative advertising and publicity around the introduction of new products in market. Product development This strategic plan is aimed to at ensuring Apple Inc. in the dynamic and competitive market they operate. The company remains relevant has already invested heavily and has focused in building the competitive edge in cutting edge technologies. Currently Apple Inc. Research and product development are their core strength. Thus, producing cheaper technological products and services has demanded that the organisation set up new competencies and likewise require more investment. In this current strategy, the company has thus improved its competencies to be more aimed at cutting various cost factors. Market Development Market Development as a strategic direction has required Apple Inc. to hire more resources to look after the operations of various new markets. In order for the company to understand the corporate workplace and competitiveness as well as business communication, employment of market development strategic direction as been singled out as an option. Further, in accordance with the strategic plans, the strategic business direction as well proposed. This strategic plan has thus been assessed according to company needs and with regard to the suitability, acceptability and feasibility. Retail strategy Apple Inc. uses “minimum advertised price” (MAP) as a retail strategy. This strategy used by the company prohibits dealers or resellers from advertising any technological products of the manufacturer below a given minimum price. “Minimum advertised price” used by Apple Inc. is normally enforced by marketing subsidies obtainable by a manufacturer to their resellers. Apple Inc. organization culture According to Mullins, (2013), culture and organizational behavior study implies the understanding of group and individual culture or behavior, and structure patterns in order to assist improve the business performance, overall effectiveness and competitiveness (Mullins et al., 26). The culture at Apple Inc. operates in the same spirit. As a company, Apple Inc. tend to possess minimal regulations or rules, likewise the culture is largely reliant on a central character. It has been common that the decisions are made by Apple Inc. central group or a central character. The focus individuals at Apple Inc. have proved to be perfect at what they are engaged in. despite the fact that this type of organizational culture is commonly adopted by small firms; the company have embraced this culture because they focus on offering quality to their customers globally over anything else. The culture at the company is based on an ideology that self-motivated employees will work harder whenever there lacks a boss micromanaging each organization’s action. This unique structure at the company has permitted it to react and grow more promptly to market changes compared to their competitors. This kind of top-down culture or philosophy has allowed for fast resolutions and responsiveness to situations in global market without necessarily involving the corporate where the company is based. This culture has proved effective and thus reducing bureaucratic red tape. Through analysis organizational culture at Apple Inc. has been associated to its profitability and customer loyalty. Organizational Structure Apple Inc. operates under a collaborative organizational structure. A collaborative organizational structure is tailored towards bring various players together in a rather long-term association to succeed in common goal. The structure within Apple’s work environment supports employees in their cooperative and individual work. Thus the executive at Apple Inc. is capable of managing their functions in geographic basis globally (Ireland et al., 37). Individuals are clustered together in terms of their resources and expertise. This kind of organizational structures within Apple Inc. has ensured company’s effectiveness with regard to empowerment and innovation. Policies by the top management are easier and quickly implement and this has in recent days increased coordination in the company. This can explains why the company is known for distinctive competence in technological product design and marketing. PART 2 In recent years Apple has been in the media due to introduction various technological products that have been deemed contravening laws and business operations. The article Apple fails to disqualify antitrust monitor in e-books case in Reuters highlights this important subject. The subject addressed is broadly based the company’s malpractices that are likely to affect their competitive perspective. This make is article very relevant. The article examines The case is United States of America v. Apple Inc, 2nd US Circuit Court of Appeals, No. 14-60. The article published in May 28, 2015 is a follow up of US antitrust case in which the US Court held that Apple Inc. breached antitrust laws. It is alleged that Apple Inc. conspired to raise e-books prices while violating of the Sherman Antitrust Act in its Section 1. The federal court appealed rejecting the company’s bid to disqualify this antitrust compliance. According to the article the court held Apple Inc. liable for conspiring with other five publishers to increase these e-book prices. Nonetheless, Apple Inc. asserted that Bromwich who is the State lawyer opened premature inquiries. Likewise, the company argues that it is eligible to a verdict in that favors them because the substantiation never "tend to exclude" the likelihood that Apple act out in a manner coherent with their lawful organizational interests. Finally, the article looks at the injunction called upon by the court examines to “assess if the company’s internal antitrust compliance procedures and policies. The article becomes very vital in addressing various malpractices that modern day multinationals engage. More specifically, the article addresses the issue antitrust laws. These concerns are important since it is likely to impact on the company reputation thus customer’s base. Battle in courts exposes the company who is already in dynamic and competitive business environment. Antitrust laws that the article echoes set of regulations or rules developed to promote a organizational competitive economy by barring actions that are expected to restrain or restrain, and through barring the types of allowable structure of market. The antitrust laws thus prohibit the preservation of monopoly power or illegal acquisition like Apple Inc. Restricting and Prohibiting competition and free trading between organizations. Through analysis, this includes specifically the contemporary repression by cartels that cause of free trade, prohibiting abusive behavior by multinationals like Apple dominating markets like price gouging, predatory pricing, refusal to deal tying and many others. The article Apple fails to disqualify antitrust monitor in e-books case highlights the important issue of antitrust which was as a result of strategic incompetency among the top management. Apple is one of the successful technological companies in the world and thus such allegations puts to question the existing organizational structures. The organizational culture and structure has been successful for years but the recent law suit questions leadership and various Human resource strategies (Schein, 78). It faults the collaborative organizational structure is tailored towards bring various players together in a rather long-term association to succeed in common goal. The organizational top management can be blamed for failure to micromanage each organization’s action. Likewise, recent business reports have indicated that in the onset of the law suit the market penetration of the new Apple products such as the apple watch have stagnated. This and many other reasons echo the sensitive nature of the alleged malpractice (Posner, 56). Lessons from Apple’s alleged malpractice echoed by the article There are various lessons that can be learnt from the article and the law suit against Apple Inc. in totality. First, the article provides an exciting understanding into the effectiveness of antitrust laws in the business environment that helps companies operate in accordance to the law. Despite the recent corporate uproar, various laws are in important in any competitive business environment for they not only guide the company operations but protect consumers. Secondly, human resource and structures distributors should work uniformly. For instance, various distributors in any company and others in supply chain should be attentive to the motivations of suppliers and loyal customers. It is clear from the article that the decision of the court followed a path of cases setting antitrust liability for purposely aiding a parallel conspiracy at a supply chain of a given level in the. The final lesson learnt from the article is that businesses have today become very dynamic and competitive and thus leadership. Organization culture and individual behaviors determine successful and socially responsible corporates in the long run. It is important to point out that despite the success enjoyed by any country, customers and other stakeholders concerns should be a priority since they are the backbone of the company. Impact on Apple’s competitive perspective Routine decisions in the business involve contacts with suppliers and customers, prices, advertising, sales terms and conditions and various other operations or activities. These business operations directly have implications on organizational competitive perspective and commonly have effects under the antitrust laws as addressed by the article. Competitiveness of the business as seen with Apple Inc. was rooted from the fact that these laws are intricate and their violation results in huge penalties that directly affect competitiveness of the organization. Through their breach and eventual penalty enforcement, company’s vulnerability is exposed. Thus the laws have a direct impact on company’s competitive perspective and customer base or loyalty. Relevant changes necessary in Apple Inc. There are various changes are necessary to restructure Apple Inc. to enable the company continue to be competitive in the business environment they operate. Some of the changes are necessary in culture, management structure or strategic plan of the company. From the article the business operations are dynamic and thus more than one strategy can help the company avoid the temptation as witnessed in the case. Top-down philosophy commonly preferred by Apple may not sometimes allow for quick resolutions and responsiveness to situations thus involvement o all players in consultation with top management becomes essential. Through analysis, changes become vital in the organization structure to avoid jeopardizing countries competitiveness. Apple suffered problems in regional areas, specifically in the accountability of spending and in fiscal decision-making. The "top-down" philosophy commonly preferred by Apple and that helped the company grows has opened the door for few serious competition in recent days. With organization employees at various levels of making decisions, it has been problematic for the corporate or top management to keep track of various spending and purchase thus making it important to change management structure. In this regard the current strategic plans should be in line with the ever changing business environment. This would ensure that the company remains competitive in offering technology products. Conclusion Apple Inc. is a multinational technological manufacturing and marketing company that has been going through many organizational and cultural changes due to the events of the past few years. As exemplified in the paper the company remains to be profitable in the competitive and dynamic environment they operate. The company grew relatively very fast in a short span, that the top management discovered that there were not capable of keep their finances and operations under control. This to breach of business laws and regulation including antitrust laws highlighted in the article Apple fails to disqualify antitrust monitor in e-books case. The case involving Apple Inc. and e-books price fixing suggest various lessons concerning antitrust enforcement and best practice by any organization. This as in the long run threatened the company’s competitiveness. In this regard the company has been forced to redesigned and reevaluate its organizational structure and culture to retain their loyal customers. Work cited Jonathan Stempel and Nate Raymond. Apple fails to disqualify antitrust monitor in e-books case. Reuters. May 28, 2015. Retrieved from: http://www.msn.com/en-gb/news/other/apple-loses-bid-to-disqualify-antitrust-monitor-us-court/ar-BBkl9wt Apple Computer, “2014 10-K Annual Report,” 15 Apple Computer, “Apple Reports Fourth Quarter Results: Most Profitable Quarter Ever; Record Mac and iPhone Sales,” Available at: http://www.apple.com/pr/library/2009/10/19results.html Retrieved: June 17, 2015. Top of Form Ireland, R D, Robert E. Hoskisson, and Michael A. Hitt. Understanding Business Strategy: Concepts and Cases. Mason, OH: South-Western Cengage Learning, 2008. Print. Top of Form Lashinsky, Adam. Inside Apple: How America's Most Admired-and Secretive-Company Really Works. New York: Business Plus, 2012. Internet resource. Lüsted, Marcia A. Apple: The Company and Its Visionary Founder, Steve Jobs. Minneapolis, MN: ABDO Pub, 2012. Internet resource. Top of Form Mullins, Laurie J, and Gill Christy. Management & Organisational Behaviour. Harlow [etc.: Pearson, 2013. Print. Bottom of Form Bottom of Form Top of Form O'Grady, Jason D. Apple Inc. Westport, Conn: Greenwood Press, 2009. Print. Top of Form Posner, Richard A. Antitrust Law. Chicago: University of Chicago Press, 2002. Print.Bottom of Form Top of Form Schein, Edgar H. Organizational Culture and Leadership. San Francisco: Jossey-Bass, 2010. Print. Top of Form Bottom of Form Bottom of Form Bottom of Form Read More