Apple Incs Corporate Culture - Essay Example

? Apple Inc. Introduction During the last 35 years of history, Apple Inc has experienced many ups and downs. In the 80’s and in the early part of 90’s Apple faced stiff challenges from Microsoft and failed to progress properly. Microsoft gained upper hand during this period with the help of their renowned operating system Windows. In fact Microsoft pushed Apple far behind during this period and many people raised doubts about the future of Apple during this period. However, Apple bounced back during the latter part of 90’s and at the beginning of 2000 with the introduction of its popular “i” series products such as iphone, ipad, ipod, imac, itune etc. “Apple was founded in Cupertino, California on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne to sell the Apple I personal computer kit” (Apple Inc. History, 2008). It is currently the second largest company in the world and also the most valuable technological company in the world. Kim (2010) has pointed out that only Exxon Mobile is currently ahead of Apple as far as market capitalization is concerned (Kim, 2010) (See Appendix). It is often said that apple’s success is heavily dependent on the charismatic leadership of its CEO, Steve Jobs. In fact many people believe that the battle for supremacy between Apple and Microsoft is actually the battle between two individuals; Jobs vs. Gates. Apple succeeded in implementing certain unique marketing strategies in the beginning of 2000 which helped them to sell their products more easily. Moreover, they diversified or expanded their activities into consumer electronics sector also which helped them to change their image as a computer company or brand to a consumer electronics brand. This paper analyses apple brand in terms of its functional and symbolic brand associations, unique resources and capabilities, differentiation of Apple from competitors, the value proposition and the trust currently associated with Apple, forms of consumption and neo-tribal groups that may be important to Apple and recommendations for the brand to take it into the future. Apple brand in terms of its functional and symbolic brand associations Until 2007, Apple Computer Inc was the official name of Apple Company. From 2007 onwards, Apple removed the middle word computer from its name and currently it is known as Apple Inc instead of Apple Computer Company. The change was inevitable since Apple entered the consumer electronics industry from the beginning of 2000 onwards. Earlier, it was more focused towards the development of operating system and computers; however, they realized that the competition from Microsoft and IBM re intense and they cannot overcome it with the help of their existing products alone. In order to convey the change more clearly to the customers, Apple has changed its multicolor logo to a single color one. (The Evolution and History of the Apple Logo, 2009) A logo definitely reveals the class and business philosophy or the organization. The logo should be eye catching and it should force the customers to think deeply about it. If the logo consists of some unsaid part, customers will think about it. Apple cleverly blended all the required qualities of an effective logo into their logo. It says nothing about its product; however the logo reminds the name of the company immediately to the consumers. Apple is a favorite fruit for many people. Apple Company has cleverly taken out a portion of the apple from its logo in order to create a sense that somebody bites it. They wanted the consumers to think about the bitten part of their logo which is a clever brand building strategy. In short, apple’s communication with the customers is cleverly formulated with a unique style. They build their brand with the help of strong brand building strategies and effective marketing communication channels. Apart from the logo, Apple used English small letter “i” cleverly to name its products. “With the release of the iMac on August 15, 1998, Apple was able to put to rest some its past failures” (Dougherty, 2010). iPad, iPod, iTune, iMac, iPhone etc are some of the “i” series products from Apple. All these products tasted huge success in the market. It should be noted that even though Microsoft introduced tablet PC’s much earlier than Apple, they failed to taste the success because of the untimely introduction of tablet PC’s. On the other hand, Apple assessed the market demand for tablet PC’s in the beginning of 2000 and introduced iPads successfully in the market. Same way, iPhone also captured the market because of its unique features like touchscreen. The letter “i” created a sense among the public that Apple is converting imaginations into real things. Currently many customers in the world are blindly purchasing any “i” series products because of the brand madness it created among the public. Apple stores all over the world are decorated uniquely and beautifully to attract customers. Apple stores have the ability to convert ordinary visitors into purchasers because of the attractiveness of the stores and the demonstration of the performances of Apple products. Unique resources and capabilities of Apple While most of the other companies promises more and delivers less, Apple is one company which promises less and delivers more. In other words, Apple products always perform better than what is advertised about it. Another unique feature about Apple Company is its ability to introduce innovative products in the market. For example, Apple is the first consumer electronics company which introduced touchscreen phones in the market. Prominent mobile phone manufacturers like Nokia, Samsung, Sony-Erickson etc forced to follow the path of Apple in order to stay in the market. Another unique quality or capability of Apple Company is its ability to read the market trends well. Microsoft introduced tablet PC’s much earlier than Apple; however they failed to capture the market because since the market was not ready to accept such products at that time. On the other hand, Apple introduced its iPads in the beginning of 2000 and millions of iPad units were sold so far. Another unique capability of Apple is its ability to accept challenges. In the 80’s and 90’s Microsoft raised stiff challenges to Apple and many people thought that the company may not survive long. However, Apple bounced back with the help of its “i” series products at the beginning of 2000. Right now Apple’s iPhone 4 is facing stiff challenges from Samsung galaxy S2. In order to counter the challenges from Samsung galaxy S2, Apple is currently developing iPhone 5 which is expected to be released by the end of 2011. In short, Apple never tries to escape from competition. Differentiation of Apple from competitors “Innovation is what gives life to a business in a market economy. The businesses that never get going or if they do, then fail or fail later under pressure of a changing economy or marketplace have all failed to innovate appropriately” (Newham, 2007). The ability to think differently makes Apple one of the all-time greatest innovative companies in the world. When other companies just started to think about developing certain products, Apple was able to introduce it in the market. They always believe in leadership rather than followership. It should be noted that when most of the mobile phone manufacturing companies concentrate in the manufacturing and selling of ordinary mobile phones, Apple thought differently and introduced the touchscreen iphone in the market. In other words, Apple transformed the ordinary mobile phone market into a smartphone market. “Apple scored a runaway hit with its digital music players (iPod) and online music store (iTunes). Other products include mobile phones (iPhone), servers (Xserve), wireless networking equipment (AirPort), and publishing and multimedia software” (Apple Inc.Cupertino, CA United States, n. d.). Apple was one company which was responsible for giving some aesthetic looks in the consumer electronics industry. They are responsible for bringing electronics products more closer to the ordinary people because of its simplicity in operation. Apple adopts a unique style of human resource management. Unlike many other competitors, Apple encourages individual work more than team work. They always give opportunities to the fresher employees to grow up under the wings of experienced ones. This strategy helped Apple to maintain a workforce blended with youth and experienced. Thus Apple will never lack the services of either the fresher employees who bring new ideas or the experienced ones who shapes the new ideas into practical form. Fresh employees thus get enough opportunities to develop their career under the strong supervision of experienced ones. Once the fresh employees are capable of handling independent projects, Apple encourages them to work individually to utilize their abilities more effectively. Even though modern business gurus favor team work in organizations, Apple seems to be having other ideas. The compensation and benefits offered to employees of Apple are very competitive and it includes product discounts, vacation time, healthcare, training courses, casual dress codes on jobs etc. In 1995, Apple created the Apple Fellows Program in order to recognize its best employees who had made extraordinary contributions to the company. Funny, brilliant, relaxed co-workers and modern spacious beautiful offices filled with comfortable equipments etc are some of the major benefits of working in Apple Company. Apple workforce includes diverse employees from different countries which enable them to utilize the expertise from different regions. It provides equal opportunities to its diverse employees irrespective of their ethnic background (Qumer, 2009, p.3-9). While most of the other organizations have a top management team to formulate effective business strategies, Apple’s business strategies revolve around the abilities of tis charismatic leader Steve Jobs. In the 1980’s Steve stepped down from Apple for a temporary period and his followers never succeeded in sustaining Apple’s business operations as Steve did. Apple forced to recall Steve and his reentry in1990’s helped Apple to back on track. Many people have concerns about Apple’s future once Steve decided to step down permanently. Even though Apple, is keen in recognizing outstanding performances, some of their HRM strategies are questionable. Apple never allows its employees to know more about the new product developments. Only the people who are in charge of the new product development have the awareness about the future products of Apple. All the other employees may not get any information about the future products. In short, Apple’s activities are not much transparent even to its employees. In 2005 Apple won a legal case that forced Bloggers to name the sources of information that pre-empted the launch of new Apple products. It was suspect that Apple's own employees had leaked confidential information about their new Asteroid product. The three individuals prosecuted, all owned Apple tribute sites, and were big fans of the company's products. The blogs had appeared on their sites, and they were forced to reveal their source. The ruling saw commercial confidentiality as more important as the right to speech of individuals (SWOT Analysis Apple, 2010). Apple is often accused as a company which disrespects work-life balancing. Apple employees forced to work in lengthy periods inside the organization. Overtime duties can come at any time without prior notice and employees may not get enough leisure time to spend with their family and friends. Pressure tactics are used extensively inside Apple Company. Even though employees are getting a decent remuneration, they forced to work under severe pressure. It revealed to its employees that it is more interested in securing employability rather than employment. Oumer (2009) has pointed out that “The work culture in Apple is demanding and the employees forced to work for 60-70 hours per week” (Qumer, 2009, p.7). The value proposition and the trust currently associated with Apple Krazit (2008) has pointed out that the Wall Street is expecting Apple to report “earnings per share of $1.07 on revenue of $6.9 billion in 2008”. He has also mentioned that “Apple is a company which is under-promising and over-delivering” (Krazit, 2008). Apple is the number one technological company in the world at present. Even Microsoft forced to satisfy with a position just behind Apple in terms of market capitalization and technology. As mentioned earlier, only Exxon Mobile is currently ahead of Apple (See Appendix). Timmer (2009) has pointed out that “Apple’s revenue crossed $ 10 billion mark in the first quarter of 2009 which was a big change from the last quarter $ 7.9 billion mark. Moreover, the quarter-to-quarter rise in profits and earnings per share were significantly higher during this period” (Timmer, 2009). Kim (2010) also expressed similar opinions. “Apple's market capitalization - the sum of its outstanding shares multiplied by its stock price - finished at $222.07 billion, ahead of Microsoft's at $219.18 billion Wednesday, May 26, 2010” (Kim, 2010). It should be noted that most of the American companies struggled to perform well in the last couple of years because of global recession. Apple seems to be one of the rarest companies which was unaffected by recent recession. In other words, even when customers were comparatively inactive, Apple was able to maintain its growth phase without any disruption. Mac OS has grown from 6.38 in 2007 to 7.57 in 2008 and 9.63 in 2009 whereas globally it grew from 2.5 in 2006 to 3.4 in 2008. Apple on July 21, 2008 announced their financial results for its fiscal 2008 third quarter ended June 28, 2008. The Company posted revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share (Apple Reports Record Third Quarter Results, 2010) The above statistics clearly shows the increasing popularity of Apple products even during the recession period. It should be noted that even Microsoft reported decline in its business during the recession period; however Apple was able to maintain its growth phase even during the recession period which is not a small achievement. Many people believe that Apple would have doubled their growth rate, if the recession was not there. Forms of consumption and neo-tribal groups that may be important to Apple Neo-tribalism describes a world that contains as its conspicuous feature the obsessive search for community. Neo-tribes are affinity networks made up by a multitude of acts of self-identification. The tribes have little or no control over banishment or co-option, as the tribes are often unaware of their following, which is cryptic and fickle. Membership of neo-tribes does not require admission. Therefore, their existence is reliant on an individual’s decisions to exhibit the ‘symbolic tags’ of tribal allegiance. The temporal nature of the tribes means that they may vanish once individuals change their mind or find a new identity. The perseverance of neo-tribes is a result of their seductive capacity, which is often tied to consumption practices (Cummings, n. d, p.2) Even though apple products are attractive to all the people irrespective of age, gender or race; Apple seems to be focusing more on the youth segment of consumers for selling its products. Most of the “i” series products are actually intended for the youth customers. For example, iTune, iPads, iPhones etc attract youths more than anybody else. Current generation, especially the youths consider having an apple product as a prestigious symbol. The above youth culture is better is better exploited by Apple by providing enough features needed for the youths in its products. For example, iPhones are capable of social networking. In other words, it is easy for the iPhone customers to connect with social networking services like facebook, twitter, skype etc. Recommendations for Apple to take it into the future Even though Apple is currently the most valuable technology company in the world, it doesn’t mean that Apple is not facing many threats from other companies. Microsoft is currently looking to make partnerships with other companies to beat its arch rival Apple. Samsung, Nokia, Motorola etc are raising stiff challenges to Apple’s iPhones. Apple needs to find strategies to counter all these challenges effectively. Secrecy is preserved in all the aspects of organizational functioning in Apple Company. The above policy is not helpful for Apple Company to gain the confidence and loyalty of the employees. Apple should take its employees into confidence and it should reveal its business strategies to its employees so that the employees may build better relationships with the company and may provide useful feedbacks for the betterment of the company. Apple is often accused as a company which disrespects work-life balancing. Apple should recognize the importance of work-life balancing. It should realize that only satisfied employees may work harder for the company and deliver the goods. “Because of the absence of well structured system, and over work load of Steve, the VP’s became more powerful and they work in a totalitarian manner (Qumer, 2009, p.14). Totalitarian management styles have lost its significance in the modern scientific theories of management. Apple should implement democratic management style more in its organization in order to make the employees satisfied. “Unfairness in promotions and overall treatment is a common complaint in Apple Company” (Qumer, 2009, p.15). Apple managers have prejudices and biases while assessing the performance of the employees and deciding their promotions. Deserving employees may not get any promotion in Apple Company if they fail to acquire a place in the manager’s good book. Apple should make drastic changes in its dealings with the employees. Apple Company is often accused for racial discrimination. In other words, whites get promotions much easier than the blacks. Apple should make conscious efforts to wipe off its bad reputation as far as racial discrimination is concerned. Instead of organizational growth, employees of Apple Company forced to concentrate more on their own individual growth as managers and supervisors keeping blind eye towards their outstanding performances. Partiality, prejudices and biases in promotions and treatment forced the employees to give more attention to safeguard their interests rather than the organizations’ interest. Apple needs to change this in order to sustain its top spot in the market. Apple’s HR strategies at individual, group and corporate level need drastic changes to maintain its top spot in the market. At present, Apple is heavily dependent on the abilities of its leader Steve Jobs for its growth prospects. One man show is going on in Apple at present which is not good for the company in the long run. Apple should develop an efficient top management team to reduce its dependence on Steve for everything. The future of Apple depends on how well it succeeds in developing an efficient top management team to lead Apple after the Steve era. References 1. Apple Inc. History. (2008). [Online] Available at: http://www.ipodtopctransfer.com/news/apple-inc.html, [Accessed on 20 July 2011] 2. Apple Reports Record Third Quarter Results. (2010). [Online] Available at: http://www.apple.com/pr/library/2008/07/21results.html [Accessed on 20 July 2011] 3. Apple Inc. Cupertino, CA United States (n. d). [Online] Available at: http://www.hoovers.com/company/Apple_Inc/rtjcci-1.html [Accessed on 201 July 2011] 4. Cummings J. (n.d). Selling the indie scene. Music festivals, neo-tribes and brand communities. [Online] Available at: http://www.tasa.org.au/conferences/conferencepapers07/papers/372.pdf [Accessed on 20 July 2011] 5. Dougherty, M. (2010). The History of Apple, Inc. [Online] Available at: http://www.brighthub.com/computing/mac-platform/articles/65346.aspx [Accessed on 20 July 2011] 6. Kim R (2010) Apple Passes Microsoft As Top Tech Company, [Online] Available at: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/26/BUDJ1DL0IU.DTL [Accessed on 20 July 2011] 7. Krazit, T (2008). Apple's Mac Strength Could Keep Tech Industry on a Rol. [Online] Available at: http://news.cnet.com/8301-13579_3-9926068-37.html [Accessed on 20 July 2011] 8. Newham C (2007), Leadership Questions and Answers, [Online] Available at: http://leadershipqanda.blogspot.com/2007/04/what-is-importance-of-innovation-in.html [Accessed on 21 July 2011] 9. Qumer S.M, (2009), Apple Inc’s corporate culture: The good, the bad and the ugly, ICMR Center for Management research, www. Icmrindia.org 10. SWOT Analysis Apple (2010), [Online] Available at: http://www.marketingteacher.com/SWOT/apple_swot.htm [Accessed on 20 July 2011] 11. Timmer, J. (2009). Apple's Growth Takes a Hit, But Not a Dive. [Online] Available at: http://arstechnica.com/apple/news/2009/01/apple-earnings-take-a-hit-but-not-a-dive.ars [Accessed on 20 July 2011] 12. The Evolution and History of the Apple Logo. (2009). [Online] Available at: http://www.edibleapple.com/the-evolution-and-history-of-the-apple-logo/ [Accessed on 20 July 2011] 13. Warren, C. (2010). Apple Passes Microsoft As Most Valuable Tech Company [Online] Available at: http://blogs.forbes.com/velocity/2010/05/27/apple-passes-microsoft-as-most-valuable-tech-company/?partner=yahootix [Accessed on 20 July 2011] Appendix (Warren, 2010) Read More