Apple Inc Management Issues - Example

Apple Inc. Management Analysis Report Prepared By: Table of Contents Executive Summary Summary of Analysis Key issues Recommendations 1.1Business Overview 4 1.2Product/Service Features 5 1.3Management Analysis 7 1.4Management Issues 9 1.5Key Data / evidence 9 Detailed Evidence 11 1.6Business Structure & Culture 11 1.7Management & Ownership 12 1.8Key Objectives 13 1.9Product/Service 13 1.10Management Analysis 13 1.11Methods of Analysis 14 There were two main methods of data analysis that were used in this report. The two methods include typology and content analysis. Typology method involved categorizing the data according to its relationship. Content analysis involved reading all the press reports and website articles and ruling out the biased reports and articles. 14 1.12Data 14 Health Hazard Data 14 Suggested Actions 15 1.13Invest heavily in human resource management, especially in the international context 15 Apple has never implemented strategic human resource management practices, leading to serious management issues. Apple invests heavily on other departments, especially those concerned with innovation, ignoring the contribution of human resource management. The international HR policies for Apple are hardly in sync with the culture[Lin13]. To make matter worse, Apple is not willing to reinforce the policy. This is evident from the recent suicidal attempts by the employees at Foxconn’s factory[Moo12]. The HR plays a very good role, particularly organizational development. Therefore, Apple Inc. should invest adequate resources in international HR as this will benefit the company in terms of development. Employees will know their roles and make work meaningful. 15 1.14Ensure Safe Working Conditions 15 1.15Implement code of Conduct 16 Supporting Documentation 16 Reference List 17 1.1 Business Overview cDouble click to hide/show instructions What does your business do and how long has it been operating? What industry is it in? What sets your business above your competitors e.g. different location, cheaper price, better service? Give an outline of the products or services, who will buy them, where you feel the business will be in two to five years and how this will be achieved? Apple Inc. was established in 1976 by Steve Wozniak and Steve Jobs and it is headquartered in Cupertino, CA. It is a technology multinational company that focuses on designing, manufacturing, and marketing portable digital music players, personal computers, media and mobile communication devices, and selling a number of related networking solutions, peripherals, services, software, and third-party applications and digital content. The main core competencies of the company include innovation of design and technology, unique and attractive features, and ease of use and trialability. There are many competitors in all the products and services of the company. In computers, some of the competitors include Toshiba, Acer, Lenovo, IBM, Dell, and HP; in musical devices, competitors include Sony and Microsoft (Zune); in phones, competitors include Microsoft, Samsung, Google, Nokia; in tablets, competitors are Amazon (Kindle), Microsoft, and Google (Nexus); and, in software, competitors include Oracle, IBM, and Microsoft. There are many technology companies and the list of competitors provided here is not comprehensive. There are three major things that set the Apple, Inc. above its competitors: ‘think different,’ management style, and innovative designs. The Apple Company ‘think different’ as they do not let the operations of other companies impact their products and services in the market. The ‘think different’ approach has enabled the company to continue creating new products that have driven innovation in computers, tablets, smartphones, and MP3 players. Apple’s management style is very different from many companies in that its business decisions are made by one central executive committee. This committee works together to design products and services as well as make decisions concerning the operations of the company. Design is another thing that set Apple, Inc above its competitors. Great design principles are spread throughout Apple DNA. The design DNA is can be identified in every product Apple brings into the market. In fact, most products such as tablets, new ultra-book laptops, and smartphones are mostly imitating Apple’s iPad, MacBook Air, and iPhone designs. 1.2 Product/Service Features Double click to hide/show instructions Summarise the main points about your product or service. Apple Inc. major products include Mac App Store, iTunes, iPod, Mac, iPad, iPhone, operating system software, iCloud, and Application Software. Mac App Store notifies customers on available updates for Mac applications. It also enables customers to download and install Mac applications. The Mac App Store provides applications in utilities, productivity, lifestyle, graphics and design, games, education, among other categories. Apple’s OS X operating system program and its iWork, iLife as well as other application program titles are accessible through the Mac App Store. iTunes refers to an application that support the playback, organization, download, and purchase of digital video and audio files and is compatible with both Windows-based and Mac computers. It is integrated with the iTunes Store, a service that enables clients to discover, download, rent and purchase applications and digital content. The iTunes Store has two major components namely iBookstore and the App Store. The iTunes features are also integrated with Home Sharing, Genius Mixes, AirPlay wireless music playback, iCloud and its functionality is synchronized with iOS devices. The devices in the category of Apple’s iPod portable digital music and media players include iPod classic, iPod shuffle, iPod nano, and iPod touch. All the types of iPod are compatible with iTunes. Other than the Apple’s own iPod accessories, there are third-party accessories that are compatible with iPod and can be purchased through the third parties and Apple’s online and retail stores. The iPod classic is a hard-drive portable player that can play both audio and video music. The iPod shuffle refers to a flash-memory iPod that has a clickable control pad. The control pad is used to VoiceOver technology and music playback, allowing customers to hear playlist names, artists, and song titles. The iPod nano is also a flash-memory iPod that has Multi-Touch interface and built-in Bluetooth. The Multi-Touch interface enables the customers to navigate their music list by swiping or tapping the display, whereas the Bluetooth enables wireless listening. The iPod touch is a flash-memory iPod that is based on the iOS. It has a built-in iSight camera, a Multi-Touch user interface, and a widescreen Retina display. The iPod touch enables customers gain access to the iTune Store to download video andaudio content, and various digital applications. Apple Inc. offers a wide range of computing products, including portable and desktop computers, related peripherals and devices as well as third-party hardware products. The Mac portable and desktop systems contain the OS X operating system, an Intel microprocessor and the iLife suite of software. The iLite suite software helps in the creation and management of websites, DVDs, movies, music, and digital photography. Apple’s desktop computers include Mac mini, Mac Pro, and iMac. The portable computers manufactured by the Company include MackBook Air and MacBook Pro. iPad is a general-purpose mobile device that can be used for reading e-books, playing games, listening to music, watching videos, sending and reading emails, browsing the web, and many more. The iPad is manufactured using the Apple’s Multi-Touch technology and enables users to connect with their content and applications in an interactive manner. iPad also enables the users to get access to the iTunes Store, where they can download video and audio files, as well as a number of applications and digital content. Besides the Company’s iPad accessories, there are other iPad compatible accessories from third-parties that can be obtained through the company’s retail and online stores, as well as from third parties. The iPhone technology is a combination of an internet communication device, an iPod, and a mobile phone into a one handheld device. iPhone is also built using the Apple’s Multi-Touch user interface and has a number of features such as maps, searching, web browsing, and desktop-class email. iPhone is compatible with both Windows-based and Mac computers. It automatically synchronizes content from customers’ email accounts, bookmarks, contacts and iTunes libraries. The iPhone also enables the users to get access to the iTunes Store where they can download video and audio files, and several applications and digital content. The latest version is the iPhone 6, though there are rumours that the Company will launch version 7 soon. Besides the Company’s iPhone accessories, there are other iPhone compatible accessories from third-parties that can be obtained through the company’s retail and online stores, as well as from third parties. The Apple’s cloud service is referred to as the iCloud, which stores documents, calendars, contacts, applications, photos, and music and wireless pushes them to several Window-based computers, Mac computers, and iOS devices. The features of iCloud include iCloud Backup, iBooks, purchases history for applications, automatic downloads, mail, calendar, contacts, documents in the cloud, photo stream, and iTunes in the cloud. For one to access the iCloud, one has to sign up for free using a device that is compatible with OS X or iOS operating system program and software products. iCloud is supported by the iOS and it include features such as iMessage and Notification Center. iMessage is a messaging service that enables users to send and receive videos, photos, and text messages between Maps and iOS devices, with turn-by-turn navigation. Notification Center, is a place where notifications can be viewed and managed easily. Apple Inc. also sells several other application software and products. Examples of application software that the company sells include Logic Pro with its FileMaker Pro database program, Logic Studio, and Final Cut Pro. The Thunderbolt Display and the Apple LED Cinema Display also manufactured by the Apple Company. Apple Inc. also sells a wide range of third-party and Apple-branded iOS-compatible and Mac-compatible accessories and peripheral products, including digital still and video cameras, computer memory, storage devices, printers, and many other computing supplies and products. The Company also manufacture Apple TV that enables users to watch television programs and movies on a high definition television. Content from Flickr, YouTube, Netflix, and iTunes, as well as podcasts, videos, photos, and music from a Window-based or Mac computer may also be streamed wirelessly to a television using the Apple TV[Reu15]. 1.3 Management Analysis Double click to hide/show instructions Briefly outline what methods of analysis are going to identify management issues (e.g., concerns about HRM, decision-making, leadership, organisation product or service) which are going to be the focus of this review and report and why? Explain how you have carried out your management review, including information sources. This should include what research and other evidence is there to support your business expectations? After identifying the topic to focus on, the right approach is needed to locate, assess, and evaluate the available evidence. The search strategy can be done using background information or foreground information. Background information offers the best way to identify general information about the research topic. However, with properly planned search strategy, the search of evidence for any research topic mostly deals with foreground information search that is narrowed. The first step in the search for the WWW databases for the research topic was through the use of background information. In this case, the background information was unfiltered information that led to a wide pool of website documents. Furthermore, the strategy of using the background information only enabled me to answer a general background question on the topic of human resource management issues at Apple, Inc. As a result, the sources for general background question were numerous and mostly included review articles, especially those from the media industry. To locate the overview of concerns about HRM in Apple, Inc., the Google search engine database was a convenient and valid source of reviewed articles. Foreground information look for evidence to answer request for HRM information associated to a particular event that has occurred recently at the company. In order to narrow the background information search results, several strategies came into play. First, the search involved selecting topic terms that were more specific. For instance, instead of using “HRM issues at Apple, Inc.,” “the good and the bad of Apple’s HRM” was used. Some WWW databases were giving irrelevant information and this meant that the topic had to be rephrased for a number of times and even use online libraries to search for synonyms to offer the best results. For some databases, the attempts to get the right resources from the database were and lots of trial and error was done to determine the best and easiest way out 1.4 Management Issues Double click to hide/show instructions It is essential to focus on relevant issues like: HRM, decision-making,leadership, organisational structure product or service). Explain how you analyses have found management issues which you expect your organisation needs to respond to. Identify and list key issues (follow numbering a; b; c etc) Identify the most important issues which you will focus on. There are a number of management issues that have been discussed online concerning Apple, Inc. Many media reports and review articles focusing on management issues, especially Apple’s China operation, has caught international attention. For the past few years, reports have described Apple employees committing suicide, possibly because of working in a stressful environment. Besides, there are other reports concerning involuntary labour, below-standard wages, underage workers, deplorable living conditions, and health hazards related insufficient air filtration systems and use of toxic chemicals[Fac15]. Other reports of refutable conduct include severe health effects amongst employees because of exposure to n-hexane, falsified records, and bribery[Set12]. A summary list of the key management issues associated with Apple, Inc. are as follows: 1. Poor decision-making process- all the decisions are dominated by the CEO 2. Harsh working conditions 3. Poor international human resource management 4. Health hazard Among the four key management issues listed above, this paper will focus on two: harsh working conditions and poor international human resource management. 1.5 Key Data / evidence Double click to hide/show instructions Describe your objectives or goals under the business operating sections of your business. Make sure they can be proven and measured, and provide a target date if possible. . There is extensive media coverage concerning Apple’s management issues. This means that the key evidence of the identified management issues will be press report. There are also many www reports focusing on the same issues. In general, the key evidence will be press reports and www reports. Detailed Evidence 1.6 Business Structure & Culture Double click to hide/show instructions Provide a clear description of the ownership structure and why it is/has been chosen e.g. sole trader, partnership, company. Also outline other ways you'll protect your business e.g. trademarks, patents, registering a website address. What is the What are the indications of what the culture is like in the organisation? Does the have any registered trademark what are the websites and other intellectual property? Apple Inc. works under a collaborative business structure. A collaborative business structure is aimed at bringing all the parties together to attain a common goal through a long-term relationship. A working environment that is collaborative supports individuals in their personal and cooperative work. In such an environment, professionals work jointly to attain goals and objectives irrespective of their location. These practices allow an effective and efficient collaboration among various talents. Collaboration results to more innovation and ideas and since Apple has adapted this structure, new ideas and innovation from their employees are likely to emerge[Hen14]. The number of institutions holding the Apple’s shares is 2,157. The major direct shareholders are Levinson Arthur D. with 1,133,283 shares; Cook Timothy D, with 901, 027 shares; Federighi Craig, with 372, 223 shares; Ahrendts Angela, with 95,042 shares; and, George Albert Jr., with 62,523 shares. Top three institutional holders include Vanguard Group, Inc. (The), with 5.68%; State Street Corporation with 4.11%; and, FMR, LLC with 3.07%. The top three mutual fund holders are Vanguard Total Stock Market Index Fund, with 1.78%; Vanguard 500 Index Fund, with 1.14%; and, Vanguard Institutional Index Fund-Institutional Index, with 1.07%[Yah15]. Although Apple, Inc. is very secretive, its culture is known to be so distinct just like its products. The Company’s “think different” mindset reinforces and captures the unique culture of the company. Concepts like status quo and traditional wisdom are not in existence at Apple headquarters. All the employees learn the Apple way. The company has a customer-centred culture and this gives the organization a competitive advantage over its competitors. The company is very secretive and has obsessive attention to detail. This strategy has worked for the company because the company is very successful in its operations[Sol14]. Apple, Inc. has many registered trademarks and intellectual property rights. For instance, OS X and Mac are registered trademarks of Apple Inc. that are registered in the United States and many other countries[App15]. The website for Apple, Inc. is www.apple.com. 1.7 Management & Ownership Double click to hide/show instructions List and describe the background and the key necessary skills of the main persons involved in the business. What does each top manager/Director involved in the business do? Make a list of what other staff or contractors are in vovlved and what capability is required to improve the Business required. CEO – Timothy Cook, CEO, Director since 2011, aged 54 years Board Directors – 1. Arthur D. Levinson: Chairman of the Board, Apple. Former Chairman and CEO Genentech 2. Timothy Cook: CEO Apple 3. Albert Gore Jr.: Former Vice President of the United States 4. Robert A. Iger: Chairman and CEO The Walt Disney Company 5. Andrea Jung: President and CEO Grameen America, Inc 6. Ronald D. Sugar: Former Chairmen and CEO Northrop Grumman 7. Susan L. Wagner: Co-founder and Director, BlackRock Key Staff – 1. Angela Ahrendts: Senior Vice President – Retail and Online Stores 2. Eddy Cue: Senior Vice President – Internet Software and Services 3. Craig Federighi: Senior Vice President – Software Engineering 4. Jonathan Ive: Senior Vice President – Design 5. Luca Maestri: Senior Vice President – Chief Financial Officer 6. Dan Riccio: Senior Vice President – Hardware Engineering 7. Philip W. Schiller: Senior Vice President – Worldwide Marketing 8. Bruce Sewell: Senior Vice President and General Counsel 9. Jeff Williams: Senior Vice President – Operations 10. Paul Deneve: Vice President – Special Projects 11. Steve Dowling: Vice President – Communications 12. Lisa Jackson: Vice President – Environment, Policy and Social Initiatives 13. Joel Podolny: Vice President – Dean, Apple University 14. Johny Srouji: Vice President – Hardware Technologies 15. Denise Young Smith: Vice President – Worldwide Human Resources 1.8 Key Objectives Double click to hide/show instructions Describe their objectives or goals under the business operating sections of the business. Can these be proven and measured? The key objectives for Apple, Inc. are to: 1. Becoming the business leader in the mobile market 2. Producing hassle free products and services that offer enjoyment to the customers. 3. Expanding their sales to clients who they have not reached yet. 1.9 Product/Service Double click to hide/show instructions What product(s) or service(s) you are going to offer? Discuss the branding, the packaging (where applicable), ongoing product or service development, etc. What are their features and their benefits, and how are they compared to the major competitors. Apple Inc. offers both products and services in order to fully maximise its selling potential. Products: Apple’s products include iPhone, Mac, iPad, iPod, Mac App Store, iTunes and the iTunes Store, Apple Pay, iCloud, OS X, iOS, applications and accessories[Uni14]. Service Apple Inc. services include, but are not limited to: Find My Friends, Game Center, iChat, iTunes, Mac App Store, iMovie Theater, iMessage, iCloud Calendar, and many more[App151]. 1.10 Management Analysis Double click to hide/show instructions It is essential to explain your analysis. Explain how you have carried out your customer and management data collection and analysis, including information sources. has undertaken extensive customer and street surveys and has utilised information from industry benchmarking on retail statistics and figures. There are many press report and review articles about Apple Inc. online concerning the Company’s management issues. The analysis conducted in this paper was based on the facts gathered from these reports and review articles. Data was extracted from the websites and grouped under various sub-headings in preparation for analysis. The data analysis involved formulating categories and subcategories in order to identify associations between data sets and become familiar with the collected data. The created categories were organized and content analysis carried out in order to achieve the requirements set by the study objectives. 1.11 Methods of Analysis There were two main methods of data analysis that were used in this report. The two methods include typology and content analysis. Typology method involved categorizing the data according to its relationship. Content analysis involved reading all the press reports and website articles and ruling out the biased reports and articles. 1.12 Data Health Hazard Data Excessive working overtime without a break in a whole week Exposure to dangerous chemicals Living in crowded places Deadly explosions Injuries due to toxin usage Exposure to harmful substances without knowledge Exposure to polluted air and water Harmful odours that cause respiratory problems Stressful working environment Human Resource Management Issues Disciplinary wage reduction Long working hours Employees committing suicide Below-standard wages Involuntary labour Bribery Suggested Actions 1.13 Invest heavily in human resource management, especially in the international context Apple has never implemented strategic human resource management practices, leading to serious management issues. Apple invests heavily on other departments, especially those concerned with innovation, ignoring the contribution of human resource management. The international HR policies for Apple are hardly in sync with the culture[Lin13]. To make matter worse, Apple is not willing to reinforce the policy. This is evident from the recent suicidal attempts by the employees at Foxconn’s factory[Moo12]. The HR plays a very good role, particularly organizational development. Therefore, Apple Inc. should invest adequate resources in international HR as this will benefit the company in terms of development. Employees will know their roles and make work meaningful. 1.14 Ensure Safe Working Conditions 1.15 Implement code of Conduct Code of conduct should be properly implemented to ensure that the current management issues in factories are resolved. However, factories are not willing to implement the code of conduct because doing so will affect their profitability. These factories push their employees so hard and disregard the basics of the code of conduct possibly because the profit margins Apple allows them to make are very slim[Car13]. This means that Apple Inc. has the capacity to ensure that its factories have fully implemented the code of conduct by first letting these factories make considerable profit. Supporting Documentation Double click to hide/show instructions Attach copies of all documents that support the claims or assumptions in the business plan: resumes of the owners/operators, certificates and references, licences and permits, market research details, marketing plan, product or service details, contracts or correspondence with suppliers and customers, extracts from publications, maps, marketing or other material (other statements may include financial statements, project plans, production schedules and development plans). Attachment Number Document Name Attachment 1: Second Year Balance Sheet Attachment 2: Year 2 P & L Attachment 3: Daily Cost of Doing Business (link to this within BV site) Reference List Reu15: , (Reuters, 2015), Fac15: , (Facing Finance, 2015), Set12: , (Sethi, 2012; Duell, 2012), Hen14: , (Hendrix, 2014), Yah15: , (Yahoo, 2015), Sol14: , (Solomon, 2014), App15: , (Apple Inc., 2015), Uni14: , (United States Securities and Exchange Commission, 2014), App151: , (Apple Inc., 2015), Lin13: , (Lin, 2013), Moo12: , (Moore, 2012), Car13: , (Carbery & Cross, 2013, p. 237), Read More