Mode of Business of Apple Inc. Company - Case Study Example

Apple Inc. Company Introduction The research paper aims at exploring and examining the operations and mode of business of Apple Inc. Company. It will give a clear understanding for future researchers on management of companies. Also, it will elucidate why the company has experienced much success in the past few years. It will also provide upcoming businesses and entrepreneurs on best strategies they can embrace to conduct their business. The focus of the paper will be leadership of CEO; employee satisfaction, personality and attitude; organization structure, culture and diversity; the company reward system. In addition, through this research it will enable one to know how to do an analysis of the company and formulate a company profile which is significant for every business to have one. The world, today, is undergoing major revolutions in the technology sector. Every system of people’s daily lives is partly driven by technology. The economy of the country entirely or to a high percentage depends on the level of technology in the country. This paper chose a technological company to understand what drives the success of this business. Apple Inc. is one of the world leading companies dealing with technology products, which makes it a suitable choice for this study. Overview of Apple Inc. Company Apple was founded by Steve Wozniak and Steven Jobs in 1976. Apple contributed significantly to the growth of the personal computer industry in the 20th century. Apple immensely redefined people’s perception of the capabilities of a computer. Apple Inc. is involved in the design, manufacturing and marketing of music players, personal computers, mobile phones, networking solutions, and software. The product Apple Lisa increased the popularity of Apple products. Apple Lisa used the graphical user interface and mouse, and was the world’s first personal computer with those features. Apple has changed the music business through the iPod, the media and entertainment industry through the iPad, and the mobile industry through the iPhone. Apple Inc. has it headquarters at Cupertino California and its products and services are distributed worldwide. Its hardware products include Mac, iPod, iPad, iPhone and iPad Mini. The consumer software products are iOS, iTunes, iLife, OS X, iWork and Safari web browser. Its services include Apple store, iBooks, Mac App Store, iCloud, iOS App Store and iTunes store. The company has about 80,000 employees as per the 2013 statistics. Its website is http://www.apple.com (AAPL profile | Apple Inc. Stock - Yahoo! Finance) Methodology In collecting of materials to support the contents for the research, data from various websites were mainly used. The websites mainly considered for data collected had to end with ‘.org’ or ‘.edu’ or ‘.gov’ or ‘.uk’ or ‘.net’ and the keyword Apple Inc. was used for the search. Websites that end with ‘.com’ were mostly neglected unless it was a website for a business or well known and credible websites such as newspapers, yahoo. The search was further narrowed down to using words such as ‘business structure,’ ‘business culture,’ ‘leadership’ and ‘employees.’ Results Leadership of CEO There are people that suggest Apple cannot succeed without their former CEO, Steve Jobs and his character plays an imperative role in his success. As a CEO of such a big company, Steve must be good at interacting with people and like to interact with people. Steve has a great personality always turning thoughts into practical concepts, which makes him action oriented. He gains energy from interaction, which is a crucial trait of a leader. His successor Tim Cooks seems to be taking in the footsteps of Steve Jobs. Although, his approach might be different, he has enabled the company maintains its legacy of high performance since he took over. Leadership is the ability to influence a group towards the realization of certain set objectives, and Cook shows such skills. He has dexterously managed the iPod and iPhone product lines that are giving the company huge profits. Cook is termed as a workaholic always prioritizing his privacy. His close associates describe him as a thoughtful data drive executive with good listening skills and somehow charismatic. It makes him as a source of inspiration to his employees and the outcome is that meaningful work is done, therefore, huge returns for the business. Cook has a methodical, no-nonsense leadership style which takes a personal initiative to oversee every essential matter concerning the company’s products. However, it does not get in the way of making important decisions. He has also been able to delegate duties that make running of the organization simpler. Cook is also trying to improve the social aspect of the company by ensuring transparency in the operations of the company. It will attract collaboration with shareholders and employees, therefore, promoting the growth of the company. The leadership of Tim Cook promises a prosperous future and many returns for Apple Inc. (Gupta). Employee Structure Employees are usually the driving force of success of an organization. Therefore, employees that are having positive attitudes and receive satisfaction from their jobs will be much productive. Working at Apple sometimes can be tough with long working hours, extreme levels of secrecy and high pressure to deliver results. However, it can be also interesting with vast opportunities at the display of employees. Through various reviews of employee comments majority of them are satisfied and posses positive attitudes towards the business. Employees feel that, through their work, they have impacted greatly the world. Others feel proud of being part of a big corporation and their production of meaningful work. They appreciate being part of a big team of talented and smart individuals. There is also a feeling of job security with flexibility in one’s career. The salary and wages are quite attractive and there are extra incentives for the employees. They are given ample freedom to carry out their work. The employees also have confidence of the company’s leadership, headed by Tim Cook (Fiegerman). Organization Structure The board of directors oversees the CEO and other senior management officials in the company. They also ensure that the interest of the stakeholders is protected. The board performs its duties guided by the governance guidelines and committee charters coupled with the bylaws and articles of incorporation of Apple Inc. The company is headed by the CEO, assisted by several senior vice presidents. The company is divided into departmental units with key leaders up to the retail stores. The company has embraced a flat and ad hoc organizational structure. The ad hoc structure favors an innovative culture which is important for an organization to compete favorably or keep track with dynamic technology. The company prefers a flat organization structure as compared to the tall hierarchical structure since the flat requires few layers or only one layer of management. Thus, it shortens the chain of the command flow; communication distance from the top management to the bottom staff is reduced. This structure is advantageous as it fosters empowerment and innovation. It speeds up the rate of implementing policies and the level of coordination is high. Hence, this elucidates why there is a high level of innovation and distinctive product design at Apple Inc. Apple company is also a functional structure. It involves grouping people according to their common experience, expertise and resources. The employees perform specific tasks producing efficiency in the operations. However, it might be disadvantageous as it will cause a breach in communication between the company’s groups. Organization Culture The culture of an organization involves how individuals work, live and achieve together. It is also a system of shared beliefs, expectations and core values of people in an organization. The culture of an organization is the distinguishing factor from other organizations. It can also be known as corporate culture. The way people in an organization are managed is what brings about organizational culture. Managing people in an organization cannot be achieved by computer reports, but through the idea of culture it is achievable. In McGregor 1960 book ‘The Human Side of Enterprise’ he proposed two theories (X and Y) to elucidate on the management methods and leadership that foster motivation. Theory X is based on authoritarian people management while theory Y deals with human relationship thought. According to McGregor, an effective leader does not give orders or discipline his employees. He characterized by the ability to utilize the positive aspect of the employee. People tend to be responsible and motivate in their work if they are treated responsibly and encouraged (Chapman). Therefore, Apples management model can be termed as formulated according to theory Y since it offers employee motivation and taps the useful traits and talents of its employees. On the other hand, Apple can be considered to use theory X by its issue of threats of dismissal or no rewards; to mandate its employees to work hard, in order to realize the objectives of the company. Thus, the company does not completely depend on any one side of McGregor theories. Apple looks for employees that are ready to work hard and committed to the achievement of the business goals. The company follows good ethics in its business conduct. It has also a high level of secrecy in its operations and management that has enabled the company to maintain its proprietary confidentiality and security of its trade secrets for so long. Organization Diversity Apple top management structure is composed of more males as compared to the female counterparts. Under the leadership of Tim Cooks, Apple has plans to diversify all its sectors of operation by promoting equality at all levels (Satariano). Its diversity in terms of products and services is equally appropriate as it deals with computer hardware, software, consumer electronics and digital distributions. Apple’s Reward System A reward system is a significant tool for any business enterprise since it motivates employees to do meaningful work. Recently performance related pay as been the trend in many businesses. The reward system of Apple Inc. is based on performance. Apple gives rewards and incentives to its employees that it feels have performed best to their capabilities, and have contributed significantly to its success. This system of compensation offers benefits to both Apple and the employees. Apple can increase its productivity while employees get an extra pay. The system tends to motivate the young and energetic individuals more than a stable and older persons. Apple also offers a wide range of benefits to its employees. It includes health and life insurance, short- and long-term disability coverage. Also, employee stock purchase plan, financial education seminars, product discounts and tuition assistance. It pays for the employees’ vacations and holidays, onsite fitness center, wellness programs, personal and family counseling. It also has a café featuring local, organic ingredients and commuter programs that encompass a free WIFI equipped shuttle to Cupertino (Apple). Recommendation Apple needs to redefine its work system from an individualistic approach to a team-oriented one whereby teamwork is fostered rather than work done as individual entities. There is still recognition of individual contribution, but the rewards could benefit the whole team. It will build unity among the employees and avoid instances of jealousy caused by unfair promotions. The long working hours of apple’s employees is unfavorable. A shift to flexible hours of working will increase employees’ productivity by balancing their work and social life. Conclusion The key elements that define the attitudes, personality and job satisfaction, are the organization structure, culture and leadership. It will influence the employees’ productivity level towards achieving the company’s goals. This research paper describes how Apple has used its leadership, structure and culture to manage its employees and attain its objectives. Through the use of theoretical knowledge gained in business culture, structure and leadership the paper provides a deeper understanding on Apple Inc. The company has been fascinating since the end last decade by its massive growth, peculiar history, secretive structure and high level of innovation. Works Cited AAPL profile | Apple Inc. Stock - Yahoo! Finance. 20 April 2014 . Apple - Press info - Apple leadership. 20 April 2014 . Apple. "Jobs at Apple." 2014. Apple Inc. 20 April 2014 . Bridle, Paul. "Leadership lessons: Steve Jobs, Apple." 8 2011. Business zone. 20 April 2014 . Chapman, Alan. "Douglas McGregors XY Theory - The Human Side of enterprise (1960)." Business balls. April 2014 . Company Profile for Apple Inc. 20 April 2014 . Fiegerman, Seth. "Why Working at Apple is a Dream Job." 18 June 2012. Business Insider. April 2014 . Gupta, P., & Henderson, P. "INSIGHT-At Apple, Tim Cook leads a quiet cultural revolution." 22 August 2013. REUTERS. April 2014 . Satariano, Adam. "Apple facing Criticism About Diversity Changes Bylaws." 6 January 2014. Bloomberg. April 2014 . Read More