Apple Inc.

Introduction
Established in Cupertino, California on April 1, 1976 and incorporated January 3,
1977, the company was called Apple Computer, Inc. for its first 30 years, but
dropped the word "Computer" on January 9, 2007 to reflect the company's ongoing
expansion into the consumer electronics market in addition to its traditional focus
on personal computers. For reasons as various as its philosophy of comprehensive
aesthetic design to its distinctive advertising campaigns, Apple has established a
unique reputation in the consumer electronics industry. This includes a customer
base that is devoted to the company and its brand, particularly in the United States.
Fortune magazine named Apple the most admired company in the United States in
2008 and in the world in 2009.
Apple Inc. is an American multinational corporation that designs and manufactures
consumer electronics and computer software products. The company's best-known
hardware products include Macintosh computers, the iPod and the iPhone. The
company operates more than 250 retail stores in nine countries and an online store
where hardware and software products are sold.

Mission statement of apple

Mission statement of apple is as under:
We believe that were on the face of the Earth to make great products.
We believe in the simple, not the complex.
We believe that we need to own and control the primary technologies behind
the products we make.

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We participate only in markets where we can make a significant

contribution.
We believe in saying no to thousands of projects so that we can really focus
on the few that are truly important and meaningful to us.
We believe in deep collaboration and cross-pollination of our groups, which
allow us to innovate in a way that others cannot.
We dont settle for anything less than excellence in every group in the
company, and we have the self-honesty to admit when we're wrong and the
courage to change.

Leadership style
Tim cook who is the CEO of Apple, has played a vital role in the success of the
company. He made sure that the company gains new heights while following the
principles which had been guided by Steve jobs already.
Tim has vigorously maintained the basic culture of the firm, and he believes in
participative leadership. He allows all the employees to actively participate in the
activities that are undertaken at the root or the strategic level.
This makes him more popular among the workers who are the real asset of the
firm.

Organizational culture
Employees at Apple have to run their own show and work in a challenging and
creative environment. Apple adopted a style that was not too formal or hierarchical
and a more results-driven approach which worked best for them. The culture

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focuses on the career opportunities and employability security, compensation, and

benefits offered to the employees by the company.
The culture also focusses on secrecy which sidelines it from many of the firms
operating in competition. However policies of the company are its biggest
strengths and is able to maintain competitive advantage on such grounds.

Organizational structure
Apples organizational structure is effective in supporting business performance to
ensure leadership in the industry. However, further changes in this organizational
structure can help improve Apples capabilities, especially in the area of rapid and
creative innovation and design.
Apples organizational structure enables the firm to continue innovating rapidly.
The following are the most significant characteristics of Apples organizational
structure:
1.

Function-based grouping

2.

Product-based grouping

The teams have been divided on the basis of their function and hence work
effectively to attain the goals of the organization.

Human resource management

Making use of referrals and targeting the most innovative skill-set based
individuals in the top-notch colleges is also an excellent method of tapping into
potential quality human resource. Referrals are an excellent mode of attracting new
employees while allowing the company the additional benefit of aligning the on-

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board talent and the talent needs. Typically the referrals method is so effective that
more than 25% of new talent in a company comes through this channel. Apple
caters to an industry that relies on rapid innovation and timely new product
development, feeding on a plethora of creative ideas to meet the demands of its
customers world-wide. Also the company has adopted a secrecy policy towards
safeguarding the execution of its core projects and processes in an attempt to
maintain its competitive advantage.

Training and development

Apple's internal training program is highly secretive. Apple employees are
discouraged from talking about the company in general, however they are taught
the world class communication and skills that help the employees to generate the
best ideas and the ideas which are competitive in nature.
There is a series of activities that are performed which include group tasks and
discussions which allows the employees to engage mentally and physically in all
the activities of the firm.

Motivation
Apple wants to have a workplace that fosters creativity from all the employees.
Apple combines extrinsic and intrinsic motivation in order to empower their
employees to be innovative.
There are numerous methods Apple employs to motivate its employees. Once,
Apple rewarded its executives by giving them a recognition bonus of 3 to 5 percent
of their base salary. This motivating incentive occurred despite the fact that they
recently missed their target on a project. This implies that Apple upper
management empathized with the group's efforts.

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Another motivating incentive is the discount on products that all Apple employees
receive.

Job rotation
Apple Having multiple employees trained in several roles allows it to
operate smoothly in the face of unforeseen issues. Job rotation programs have
become an awesome recruiting tool and serves two purposes when
implemented correctly:
1) Grooming future leaders
2) cross-training employees.

As a retention tool, job rotation provides a career path for employees of

apple. Rotation at apple helps prepare the employee for an eventual promotion
which also provides the framework for succession planning.

Policies
Apple is globally known for its policies which it entails locally as well
as internationally. The consumers are requested to analyze the safety and
security policies before every purchase because after that the company
doesnt take blame of any such claims.

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The review policy is highly strict and ensures that all the customers of
the company enjoy the basic core ness of the products.

Recommendations
Apple has major strengths that can be used to effectively address organizational
weaknesses. The company can also use these strengths to exploit the opportunity to
expand its distribution network. In addition, Apple can use its strong brand image
and rapid innovation processes to successfully develop and launch new product
lines. However, the firm faces the significant threats of aggressive competition and
imitation, which are major challenges affecting players in the industry. A suitable

Course of action is to address these threats through a stronger patent portfolio,

along with continuous innovation to ensure the competitive advantage of Apple
products even when competitors try to catch up.