Principles of management apple
Document Type:Research Paper
Since its inception in 1976 the company has faced many challenges and obstacles to become a leading innovator in the Information Technology industry worldwide. The group felt that the Apple represents all aspects of managerial structure that has helps a company grow. We also know that with the growing trend in the global IT industry it is a good example of how companies remain relevant in changing market trends. Company background and history. In the age of Information Technology, Apple Inc. Apple purchase NeXT software which was still Jobs company who eventually become Apple’s CEO again in 2000 (Lusted, 61). Jobs went on to innovate some of the most popular devices in the Information Technology industry in the world. These devices include; the MacBook, IBook, IPod, I Phone and Apple TV.
It has also developed software such as the ITunes which is an online music store. The company has opened various shops known as Apple Store that exclusively sell Apple devices and products and also provide after sales services. Jobs run the company in a strict managerial structure were he made many of the major decisions on the direction of the company and the products made by it. The company’s senior Vice presidents had little to no control or power in decision making and only followed the direction given to them by the CEO. Under the guidance of the current CEO Tim Cook, the decision making has been made more relaxed. The senior Vice presidents have more autonomy in the decision making process but still under the guidance of the CEO.
Product based divisions Apple is a company that produces many products and services. With the integration of the three different management structures the company has developed a structure that involves all departments working together to remain innovative and relevant. Thou the company structure is strong departments have to wait for the CEO to give directions instead of allowing more flexibility to department heads in innovation and product development. This slows down the production process. Organizational Cultural Values As an Information Technology company Apple has innovative organizational culture. In order to maintain the high level of creativity and innovation the company has to focus on maintaining standards, constant challenging environment and a creative mind-set. This value keeps the company ahead of its competitors.
Innovation Rapid innovation is one of the company’s main characteristics. In order to remain the top innovative company Apple motivates and trains employees to remain innovative and creative in both individual and whole product design and development process. This value ensures the rapid innovation of new products and services by the company. Secrecy In order to keep an innovative and competitive edge as well as to protect intellectual and proprietary information the company has a very strict culture of secrecy among it human resource. Apple used this to their advantages in the innovation of the iPod which is a music storage and listening device. It created a new market for storage and entertainment industry that did not exist before. The same situation was true when Apple invented the iPhone and thus creating a new communications market for smartphones and the Android OS.
Though there are many opportunities with the advancement of IT industry, companies in this industry face many challenges such as high competition and continuous demand for new products and services. In order to remain relevant, they must invent new products or the will fail. A SWOT analysis determines internal and external factors that can influence the direction the company takes the future to remain relevant in the market (Smithson). Apple’s Strengths. An organization’s strengths are factors that allow the company to overcome the challenges that they face and to continue growing in the industry. One of Apple’s strength is its very strong brand image. Apple has grown to become a global household brand with its products and services available all over the world and in constant demand.
Another major weakness the company is facing is the high cost of their products. The costs of Apple products are higher compared to their competitor’s prices; this is due to the specialized products and services they provide. Apple’s threats The main threat Apple as a company is its competition form companies making the same type of products and organizations that make cheap imitation products. Companies such as Samsung, Huawei and Sony make similar products and a slightly lower prices than Apple. These companies are also very aggressive in innovating new and better products. It is also facing competition from other companies that are creating innovative products at lower costs. Apple must come up with innovative ways to reduces product costs and increase product distribution networks.
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