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Apple Case Study

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Assignment 1

Organizational and Behavior


Dheeraj Hotchandani


Apple, Inc. is an electronics and software company based in California, USA. Originally known as Apple Computer, the company is familiar to most people as innovators of the personal computer as it is known today. Apple Computer had introduced many of the now-commonplace features of personal computers, including the GUI, the mouse, the floppy disk drive, and color graphics. Apple Computer's Macintosh line of PC's had brought numerous software and hardware components within reach of the average home consumer, often in a stylish case and with an emphasis on usability. The restructured company, now called simply Apple, designs, markets, and sells not only personal computers but also consumer electronics in the form of portable media players and Smartphone's. Apple also sells intangible goods in the form of software, music, and video. The Apple Store chain operates over 150 branches worldwide, where the devices and software and sold and serviced.

Apply inc is a public limited company but over the years it has changed its name to Apple, Inc., a publicly-traded company listed on NASDAQ(AAPL).It was founded by Steve Jobs

Mission statement of Apple

Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

Vision Statement

"An Apple computer on every desk" -

Steve Jobs

Apple Inc. states its vision very clearly. They have changed our life with their products and services. They really have demonstrated the world, that a human has a strong capacity to create huge things with a big impact.

Corporate Goals and Objectives

1. "Apple Inc. plans to keep creating and releasing computers and consumer electronics that are more user-friendly.

2. "Apple Inc. will focus more opening more stores even on international locations to help increase in sales.

3. Another objective of Apple is innovation. Steve jobs in one of his famous quotes said:

Pretty much, Apple and Dell are the only ones in this industry making money. They make it by being


. We make it by innovation."

How does the company try to achieve the mission statement?

Apple products are different from others; the feel of using an apple product is totally a different experience. To achieve their mission statement the company keeps updating its technology very often and innovation one of the best ways they capture the whole market as their mission being "An Apple computer on every desk". They are committed to bring the best experiences while using their product by innovation. For example: iphone 2, 2G, 3, 3GS, 4,4G. This is a classic example of them innovating and just giving more and more to customers and those achieving their mission statement.

To achieve their mission Apple is also planning to expand their market internationally and selling products internationally such as selling iphone in china, they are focusing on customer needs, creating more supporting and protecting programs, they are using other forms of advertising apart from product placement advertising.

Organizational Structure of Apple

Organizational structure- An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It explains the position of each employee in the company and where they are positioned and who they are responsible to. Defines how job tasks are formally Divided, Grouped and Coordinated

The organizational structure rather the authority structure of apple is "top down".

Most organizational structures departmentalize the work force and other resources by one of two methods: by products or by functions. Functional organizations are segmented by key functions. For example, activities related to production, marketing, and finance might be grouped into three respective divisions. Within each division, moreover, activities would be departmentalized into sub departments. The marketing division, for example, might concentrate on sales, advertising, and promotion departments.

The chief advantage of functionally structured organizations is that they usually achieve a fairly efficient specialization of labor and are relatively easy for employees to work. In addition, functional structures reduce duplication of work because responsibilities are clearly defined on a company-wide basis. However, functional division often causes departments to become short-sighted and provincial, leading to incompatible work styles and poor communication.

Simplicity also is key to Apple's organizational structure. The organizational chart is straight-forward. There aren't any committees at Apple, the concept of general management is frowned on, and only one person, the chief financial officer, has a "P&L," or responsibility for costs and expenses that lead to profits or losses. It's a radical example of Apple's different course. Most companies view the P&L as the ultimate proof of a manager's accountability; Apple turns that dictum on its head by labeling P&L a distraction only the finance chief needs to consider. The result is a command-and-control structure where ideas are shared at the top -- if not below.

STRENGTHS of a functional structure:

* Allows economies of Scale within functional Departments

* Enables in-depth Knowledge and skill Development

* Enables organization to accomplish functional Goals

* Is best with only one or Few product

WEAKNESSES of a functional structure:

* Slow response time to Environmental changes



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