Final Ihrm Assignment

INTERNATIONAL HUMAN RESOURCE MANAGEMENT
INTERNATIONAL HRM STRATEGIES OF APPLE

(MODULE CODE- BSB20135-M )
INDIVIDUAL ASSIGNMENT
PROJECT SUPERVISIOR: - MISS AMITA PASRICHA
NAME: PANKAJ SHARMA
INTAKE NO:-PTM1101006
HAND OUT DATE: 7 FEB 2012
HAND IN DATE: 7 MAY 2012
APIIT SD INDIA [2012] Page 1


CERTIFICATE
This is to certify that I Pankaj Sharma (PTM1101006) has completed the International human
resource management and developed the project on “INTERNATIONAL HRM STRATEGIES
OF APPLE” and submitted the assignment on 7th may, 2012.
In the Supervision of
Miss Amita Pasricha
ACKNOWLEDGEMENT
We owe the deep depth of gratitude to our esteemed teacher ‘Miss Amita pasricha for supporting
us a lot to during the span of project and to help us when we face several problems. We are
thankful to our honorable Mentor who allows us to perform several tasks like weekly meetings
and discussions in the institute itself.
We are thankful to the lab faculties for providing necessary help whenever it was require like in
case when it was system problem in print outs and other information. Library staff helps us in

providing necessary books of different authors for project development and several other platform
oriented books on which we had worked upon like entrepreneurs.
At last but not the least we cannot forget to thank our friends for their important suggestions help
in editing our work and let us know about our errors and mistakes through out the project.
PANKAJ SHARMA
PTM1101006 (MBA)
International Human Resource Management (IHRM)
IHRM can be defined as set of activities aimed managing organizational human resources at
international level to achieve organizational objectives and achieve competitive advantage over
competitors at national and international level. IHRM includes typical HRM functions such as
recruitment, selection, training and development, performance appraisal and dismissal done at
international level and additional activities such as global skills management, expatriate
management and so on.

In simple terms, IHRM is concerned about managing human resources at Multinational

Companies (MNC) and it involves managing 03 types of employees namely,
1. Home country employees- Employees belonging to home country of the firm where the
corporate head quarter is situated.
2. Host country employees- Employees belonging to the nation in which the subsidiary is
situated.
3. Third country employees- These are the employees who are not from home country/host
country but are employed at subsidiary or corporate head quarters. As an example a American
MNC which has a subsidiary at India may employ a French person as the CEO to the
subsidiary. The Frenchman employed is a third country employee.
Recruitment and Selection
Training and Development
Performance appraisal
Compensation

Health and safety etc.
International Staffing Policy
The staffing challenges for international assignments are broader in scope than those for domestic
staffing. There are different approaches to the management of International human resources.
These are as follows:
Ethnocentric – the home country attitudes, management style, knowledge, evaluation criteria,
and managers are superior to anything the host country might have to offer.
Polycentric – there is a conscious belief that only host country managers can ever really
understand the culture and behavior of the host country market; therefore, foreign subsidiary
should be managed by local people.
Geocentric – based on the assumption that the best manager or other employee for any specific
position anywhere on the globe may be found in any of the countries in which the organization
operates.
These three sets of multinational values translate into three broad international staffing policies or
sources for staffing international operations. First, the company can send people from its home
country. These employees are often referred as expatriates. Second, it can hire host-country
nationals, natives of the host country, to do the managing. Third, it can hire third-country
nationals, natives of a country other than the home country or the host country. These sources of
overseas workers have different advantages (Sims 2002).
IHRM in the literature Review
The literature on international HRM tended initially to focus on the management of expatriates
(see. for example. Ivancevich. 1969; Mendenhall and Oddou. l985;Torbiorn.1982; Tung. 198 i).
Streams of research into cross-cultural issues (Hofstede. 1984. 1993;Eaurenl. 1986) and
comparative HRM (Brewster c/ti/.. 1996, 2004) were also developed.

However, in line with a growing literature on international business strategy (Bartlett and
Ghoshal, 1989; Porter, 1986; Prahalad and Doz, 1987), more interest was .shown in the issues of
managing people in international organizations. Boxall (1995) highlighted the distinction between
comparative HRM (how people are managed differently in different countries) and international
HRM (how different organizations manage their people across national borders). The comparative
HRM field analysed practices within firms of different national origin in the same country or
compared practices between different nations or regions (Pieper. 1990). International human
resource management (IHRM) addresses the added complexity created by managing people -
probably the most nationally specific resource (RosenzWeig and Nohria, 1994) - across a
diversity of national contexts of operation and the inclusion of different national categories of
workers (Tung. 1995). Although, originally, comparative and international HRM Were distinct
fields of study, the increasing reliance on strategic partnerships and joint ventures, coupled with a
trend towards localization, has made the need to understand how HRM is delivered in different
country contexts more important. Consequently there has been a degree of convergence in
thinking between the comparative and international HRM fields (Budhwar and Sparrow, 2002).
Some of the early models of IHRM focused on the role of MNEs and argued that finding and
nurturing the people able to implement international strategy is critical for Brewster ei al.:
Towards a new model of globalizing HRM 951 such firms. IHRM was considered to have the
siimc main dimensions as HRM in a national context but lo operate on a larger scale, with more
complex strategic considerations, more complex co-ordination and control demands, and some
additional HR functions. These latter functions were considered necessary to accommodate the
need for greater operating unit diversity, more external stakeholder influence, higher levels of risk
exposure and more company involvement in employee's lives and family situation (Dowling et
al.. 1999). The field focused on understanding those HR functions that changed when the firm
Went international and also began to identify important contingencies that influenced the HR
function to be internationalized, such as the country that the MNE operated in, the size and life-
cycle stage of the firm and the type of employee. (Budhwar and Sparrow, 2002).
Introduction Apple

Organization of Apple was established in 1976 as a computer company. However, in the last
decade, Apple has expanded into a complex company that specializes in much more than just
computers. In 2001, Apple broke the barrier with the iPod, eventually becoming the dominant
market leader in music players. In following, Apple joined the phone industry in 2007 with the
iPhone, which has also been widely successful. Apple has established a unique reputation in the
consumer electronics industry since it is flexible from its philosophy of comprehensive aesthetic
design to its distinctive advertising campaigns.
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 smartphones. 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.
Vision
No one disputes that Apple is lead by its powerful Apple vision, and focus. It is said that Jobs is
so fanatical because he deeply believes in Apple Computer and his personal mission is “do it
right.” Jobs believes that by making the best quality products possible that sales and stockholder

value will follow. Because of Jobs, Apple is known today for its innovation and style, and many
Apple products such as the iPod and iTunes are considered so innovative we have spawned
micro-industries. (Mercer, 2003)
Mission
Apple’s current mission statement is: “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.”(By Steve Gall April 14,
2006)
ORGANIZATIONAL STRUCTURE
Headquartered in Cupertino, California, USA, Apple Computer operates on a global scale, with
multiple locations world-wide. Apple’s business operations are structured into three main
categories: hardware, software, and business support services. Within these categories are various
divisions, including: Macintosh (computers), peripherals (Apple TV, digital video displays, etc.),
applications (iTunes, iLife, Final Cut Studio, etc.), internet services (Safari, QuickTime, Mobile
Me, etc.), and others. Provides a broadened visual representation of Apple’s basic organizational
structure. (By Shane R. Mittan, 28 Jan 2010)
Apple’s Organizational Chart (November, 2008)
Hardware Software Business Support Services
IPod Applications Legal

IPhone Internet Services Retail
Macintosh Operating System Accounting
Peripherals Product Support
General Counsel
Industrial Design

Markets and Distribution

Apple products
Apple Lisa 1983
Macintosh Portable 1989
Apple Newton 1993
ENVIRONMENT
Environments are those factors and forces outside the organization that effect the organizational
performance.

IHRM strategies of Apple Company
 "Strategic planning, like any type of planning, involves establishes goals and identifying
quantifiable objectives that can help an organization reach them. What perhaps best
differentiates strategic planning from "seat-of-the-pants" or intuitive planning initiatives

concerns how informed the decision-makers are concerning the environment in which the
company competes. In some cases, strategic alliances with others may represent the best
course of action for various reasons, while acquiring competitors also represents a viable
alternative in many cases. Because every organization is unique, there cannot of course be a
one-size-fits-all strategic approach that can be applied across the board to achieve successful
outcomes to such planning processes, but there are some general guidelines that can be used to
help companies recognize when one alternative is superior to another" (Pearce & Robinson,
2005).
 Apple Computer Strategic planning involves making decisions about an organization's long-
term goals and strategies. These plans have strong external orientations and cover major
portions of the organization. Successful companies have been diligent in the planning of the
organization's long-term goals and strategies and have targeted results needed for long-term
survival, value, and growth. Apple Computer's beginning years were mostly reactive to the
fast-paced and rapidly changing computer industry; however, we have re-invented them selves
time and time again to remain highly competitive in this market. (Pearce & Robinson, 2005).
Strategic Planning at Apple Inc.
Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30
year existence, the company had seen a lot of changes in the computer industry. What would the
future hold for the computer giant in a rapidly changing world? How should the company allocate
resources between its more traditional offerings (computers) and its newer products (iPods,
iPhones, Apple TV, etc.) in order to maintain and improve its market position. Also, how should
Apple's unique retail strategy be used to support the company's product decisions, and by
capitalizing on new and emerging trends thus further maintaining its competitive advantage.
(By Fabrizio, D)
Recruitment and selection
Recruitment and selection refers to the chain and sequence of activities pertaining to recruitment
and selection of employable candidates and job seekers for an organization. Every enterprise,

business, start-up and entrepreneurial firm has some Well-defined employment and recruitment
policies and hiring procedures. The human resources department of large organizations,
businesses, government offices and multilateral organizations are generally vested with the
responsibilities of employee recruitment and selection.
International recruitment and selection
Recruitment-Define as searching for and obtaining potential job candidates in sufficient numbers
for and quality so that the organizations can select the most appropriate persons for its job needs.
Strategy of Recruitment and selection in Apple

Recruitment and selection referred to Bratton (Bratton et al, 2003) always is the important and first stage of
human resource management function in company. The objective of recruitment about attracts the talent people to
be the company’s employees following goal of company and labour demand forecasting; in addition, it is able to be
one way to and promote advertise in the public’s mind. Referred to effective recruitment and selection practice
(Compton et al, 2009), there are many method of recruitment that generally separate by source to internal and
external source.
The internal source is such as transferring, department examination, and employee’s recommendation and so on.
For external source that support in advertisement of organization such employment agency, job center,
newspaper, company Website, etc. In the most case, company focus on recruit from external source due to
generate more competition of candidate that means providing variety of choice and high potential to hire the
employees of the dream. Especially, incurrent many world class companies realize on value of human
resource and development people more than ever before; for instance, Steve Jobs; Apple Inc CEO used to mention
that ³the most value asset of Apple Inc is Employee´.However,the costly of recruitment of external
resource is the major Weak point of this way practically using job agency and newspapers and time consuming
is another disadvantage which are management challenges and every company intend to overcome over past a
year and a year. (Compton et al, 2009).
Environment factors affecting Recruitment and selection
FACTORS AFFECTING RECRUITMENT

FACTORS AFFECTING SELECTION

Selection is influenced by several factors. More prominent among them are supply and demand of
specific skills in the labour market, unemployment rate, labour-market conditions, legal and
political considerations, company’s image, company’s policy, HRP, and cost of hiring. The last
three constitute the internal environment and the remaining form the external environment of the
selection process.
Analysis of recruitment and selection strategies
In today’s competitive and dynamic world, everything gets changed with a swift pace.
Organizations need to be more proactive and competent as this is a world of globalization and
world has become a global village. In this global village,
Organizations who do not possess a competent workforce, usually are not able to make a
remarkable progress the in dustry.
For the purpose of having a competent workforce, an organization needs to opt best HR strategies
with the help of great HR professionals. Companies having fully functional HR departments are
known for their success. Some examples are Dell, HP, Amazon.com, and Apple. These
organizations, and many others, know and understand the true importance of competent
workforce and thus allow their HR departments for making their own strategic decisions. The HR
departments in organizations make a significant impact over the performance of organization.
This is due to multiple tasks an HR department does in an organization. These tasks include
recruitment and selection, orientating new employees, training new employees, HR planning,
making HR budgets, performance management and compensating employees. All of these
functions have their importance at their own place. And, by default, all of these activities are
interlinked with. (By Dessler, 2010)

Training and Development

When most people think of company training, the first thing that comes to mind is
"inconvenience." Training conjures images of sudden scheduling; disruption of their personal life;
travel; long, drawn out sessions and a sense of relief mixed with futility when it is over. Hardly
the best mindset for learning.
Strategy of Training and Development in Apple’s
Training can be defined as making available to employees planned and coordinated educational
programs of instruction in professional, technical, or other fields that are or will be related to the
employee’s job responsibilities. Training can be accomplished through a variety of approaches,
such as classroom training, e-learning, and professional conferences that are educational or
instructional in nature. Development is generally considered to include training,
Structured on-the-job learning experiences, and education. Developmental programs can include
Experiences such as coaching, mentoring, or rotational assignments. The essential aim of raining
and development programs is to assist the agency in achieving its mission and goals by improving
individual and, ultimately, organizational performance.
It has been said that the objective of the investigative segment of the Training and Development
Program lies on the creation of a developmental strategy. This is why the identification of training
needs does not necessarily guarantee that this will already bring benefits to the Apple Inc. It

would only serve as a reminder for the superiors to look into the Weak points and come up with
the appropriate solution and in this case it is the actual selection of the training and development
program and the method that should be employed targeting the best results.
There two ways that will help in the choice for what training method to use. First, after the
identification of the training needs, the willingness of the company should be checked and so with
the employees as to how far we can go for the project. It will involve confirming their budget,
time and the acknowledgement of the project as urgent and important for them and for the
company. With all of these, the management can now look into the most suitable methods based
on their assessed stand of the company and there are actually a lot available to choose from
depending on the allowed scope, budget and time by the management.
Environmental factors affecting training and development
 Owners expect managers to watch or their interest ant provide a return on investments.
 Customers demand satisfaction with the products and services we purchase and use.
 Suppliers require attentive communication, payment and strong working relationship to
provide needed resources.
 Competitors present challenge as we view for customers in a market place with similar
products and services
 Employees and employee unions provide both the people to do the jobs and the
representation at work force concern to management
 Demographics are measures of the various characteristics of the people and the social
groups who make up a society. Age, gender and income are the example of commonly
used demographic characteristics.
 Values refer to certain beliefs that people have about different forms of behavior or
product. Changes in how a society, values and item or a behavior can greatly affect a
business.
Training Needs Analysis (Needs Assessment) for Apple Inc.

Apple computer has experienced both good and bad times as a main player in the computer
industry. It has been a leader in computer technology in the past but has struggled recently in

keeping pace in the fast developing computer industry. Emergent technology and developing
computer applications have contributed to a business environment that is very competitive.
Survival in this industry needs the skill to foresee changes and to effectively react to market
demands. The computer industry has grown for the last two decades due to the popularity of
personal computers even as a household item. This market is no longer limited to the business and
educational environment; computers are a consumer good worldwide. Apple Computer, Inc.
must respond to this business environment if it is to survive in the future. This is the driving factor
for this project. Training Needs Analysis can be complex and demands a creative, people focused
environment. Basing from the introduction for the Apple Inc. it seemed that the people needed to
prepare the Training Needs Analysis are already within their organization. It would just be a
matter of forming the team maybe from the management or from the HR/Training and
Development Department. For this to be successful, the process should be designed in a way that
it is simple to use but is effective. Again, this is parallel with the basic philosophy of Apple
Inc.that is to be user friendly.
Training and development
Training can be defined as making available to employees planned and coordinated educational
programs of instruction in professional, technical, or other fields that are or will be Related to the
employee’s job responsibilities. Training can be accomplished through a variety of approaches,
such as classroom training, e-learning, and professional conferences that are Educational or
instructional in nature. Development is generally considered to include training, Structured on-
the-job learning experiences, and education. Developmental programs can include Experiences
such as coaching, mentoring, or rotational assignments. The essential aim of training and
development programs is to assist the agency in achieving its mission and goals by Improving
individual and, ultimately, organizational performance.

Performance appraisal
Performance appraisal is a system of review and evaluation of an individual or team’s job

performance. An effective system assesses accomplishments and evolves plans for development.
Performance management is a process that significantly affects organizational success by having
managers and employees work together to set expectations, review results, and reward
performance. Its goal is to provide an accurate picture of past or future employee performance. To
achieve this, performance standards are established.
Strategy of Performance appraisal in Apple
The activities of APPLE employees were guided by a comprehensive system of management by
objectives (MBO). The performance appraisal system starts with the establishment of long- and
short-range objectives derived from company and group objectives. At each company level,
overall objectives were communicated and subunit objectives were negotiated. APPLE lets the
employees decide on how they would accomplish the goals that they have set. The goals were
made to interconnect horizontally and vertically throughout APPLE. The management by
objective process is part of the company’s strategic planning which defines the objectives and
responsibilities that a job entails. In an MBO system an employee meets with his or her manager,
and they collectively set goals for the employer for a coming period of time. These goals are
usually quantifiable, they are objective, and they are usually written. During the specified
timeframe, the manager and the employee periodically meet to review the employee’s
performance relative to attaining goals. At the end of the specified period, a more formal meeting
is scheduled in which the manager and employee assess the actual degree of goal attainment. The
degree of goal attainment then becomes the individual’s performance appraisal (Sims, 2002).

APPLE combined MBO with the paired-comparison approach. The paired comparison approach,
according to Sims (2002), measures the relative performance of employees in a group. A manager
lists the employees in the group and then ranks them (p. 205). APPLE managers invested
considerable time and energy ensuring that an individual’s pay level within their salary range
reflected their performance when compared to others. Performance was judged by the immediate
supervisor but adjusted based on a ranking process, conducted by managers in face-to-face
meetings, which compared employees in different departments with similar responsibilities.
The Performance - Appraisal Cycle
Environmental Factors Affecting Performance Appraisal in Apple

Ability
Character traits, skills and knowledge which are used in the performance
It is always present and will not vary widely over short periods of time.

Effort
The amount of manual or mental energy that a person is prepared to expend on a job to reach a
certain level of performance.
Can vary according to incentive and motivation.
Motivation
Many people who are not motivated keep their performance to an acceptable level by expending
only 20-30% of their ability Managers who know how to motivate their employees can achieve
80-90% ability levels and consequently higher levels of performance.
Basic needs - food clothing
Safety needs - security, avoidance of risk/harm
Social needs - friendship, acceptance, group
Esteem needs - responsibility, recognition
Self realisation - independence, creativity
Equity & Expectation
Again, detailed notes elsewhere. Basically, people expect to be treated equally, within the
company and as others are in similar companies; they expect to get a certain reward for a certain
effort; and they expect to get promoted if they undergo training. All these factors are inter-related
and affect the amount of effort people are prepared to put in task, or role, perception
The direction in which the person wishes to channel his or her effort and ability. It varies
according to such factors as whether or not the job is seen to be important or of value in itself, to
the organization, to workmates, to the individual whether or not there is an end in sight is what I
do simply lost in the larger organization. Can I see it as a finished entity in its own right, no
matter how small. Standards & job descriptions must be known and understood.

Compensation
Compensation is the total amount of the monetary and non-monetary pay provided to an
employee by an employer in return for work performed as required.
Compensation is based on:
 Market research about the worth of similar jobs in the marketplace,

 Employee contributions and accomplishments,
 The availability of employees with like skills in the marketplace,
 The desire of the employer to attract and retain a particular employee for the value they
are perceived to add to the employment relationship, and
 The profitability of the company or the funds available in a non-profit or public sector
setting, and thus, the ability of an employer to pay market-rate compensation.
By Susan,M. http://humanresources.about.com/od/glossaryc/g/compensation.htm
Strategy of Compensation in Apple

The failure to include the value of most stock-option grants as employee compensation and,
hence, to subtract them from pretax profits, increased reported earnings and affected Apple Inc’s
(NASDAQ: AAPL) stock prices. A three-month investigation by Apple's board of directors
starting July 2006 found that the company had backdated option grants made on 15 dates between
1997 and 2002. The Boards findings raised "serious concerns" about the roles that two former
officers had played in the matter. The board of directors also reported that an internal review
found two questionable options awarded to Jobs but found no wrongdoing by current
management, including Steve Jobs himself. Apple Inc’s stock dipped to $72 in October 2006,
reducing “shareholders Wealth”.

For the long-term Steve Jobs promised that he is working "to ensure that this never happens
again".
The company is strengthening the corporate governance and is implementing measures in order to
ensure proper practices with option grants such that backdating cannot occur, such as: Boards set
the date and price of all option awards we approve, reflecting this data in the Board meeting
minutes. The Board should later receive confirmation that the awards Were issued on the date and
at the price approved. Boards will ensure the company is filing SEC form 4 filings within 2
business days of option grant (as required by the SEC). Boards will not allow executives to
choose the date of their grants, nor there will be flexibility in when the grants are recorded.
Boards will clearly communicate the company's policy regarding option dating to all relevant
parties such that there can be no confusion regarding what is and is not allowed. Boards will
adopt a policy stating that option grants will be made on the same date each year, or divide annual
grants into four grants made quarterly.
Environment Factor affecting compensation in Apple
There are several kinds of negotiation with the employer. For instance, the employee can
negotiate at the time of the hiring process or can negotiate at the time of the appraisal cycle. In
this article, We consider the strategies available to the employee at the time of the hiring process.
There are several parts to the employee’s strategy to negotiate with the employer. Some of
them are:
Plan and Communicate: The most important part of the employee’s strategy must be to research
the compensation trends in the market and then negotiate with the employer based on how much
the other companies are willing to pay for a similar role combined with the fact that the company
hiring him or her pays for the same role. Hence, it is advisable for the employee to keep in touch
with compensation trends in the marketplace and also talk to other employees before he or she
decides to communicate his or her expectations to the prospective employer.
Timing makes the difference: In any negotiation process, time is the key element and hence
timing the negotiation process is important. The best possible option for the employee would be

to wait for the company to make an offer and then pitch in his or her expectations about the
compensation. There is something called overkill which must be avoided and the employee must
avoid going overboard. At the same time, the employee must also ensure that he or she does not
start the negotiation process early on in order not to lose out on the offer. Hence the timing of the
pitch makes all the difference.
Consider the Alternatives: When you are deciding about prospective offers, ensure that you
make the pitch for your expected compensation level after taking into account all the alternatives
and not simply rush into something that does not value your experience and expertise adequately.
At the same time, do not harangue the prospective employers though you might have several
alternatives available to you. The point to be noted is that different companies react to
compensation negotiations in different ways and hence you must play the field according to these
points.
Many a time, prospective employees lost out on compensation either because we asked too high
or asked too late. At the same time, we should also remember not to coerce the employers.
Health and safety
Health and safety is integral to success. Board members who do not show
leadership in this area are failing in their duty as directors and their moral duty, and
are damaging their organization.

Environmental factors affecting Health and Safety
This article reviews organizational factors that influence the satisfaction, health, safety, and Well-
being of health care workers and ultimately, the satisfaction, safety, and quality of care for
patients. The impact of the work environment on working conditions and the effects on health
care workers and patients are also addressed. Studies focusing on worker health and safety
concerns affected by the organization and the physical work environment provide evidence of
direct positive and/or adverse effects on performance and suggest indirect effects on the quality of
patient care. The strongest links between worker and patient outcomes are demonstrated in
literature on nosocomial transmission of infections. Transmission of infections from worker to
patient and from patient to patient via health care worker has been well documented in clinical

studies. Literature on outbreaks of infectious diseases in health care settings has linked the
physical environment with adverse patient and worker outcomes. An increasing number of studies
are looking at the relationship between improvement in organizational factors and measurable and
positive change in patient outcomes. Characteristics of selected magnet hospitals are review we as
one model for improving patient and worker outcomes. (By T Lundstrom–2002)
Health and safety Apple’s strategies
Apple Computer is committed to protecting the environment, health and safety of our employees,
customers and the global communities where they operate. they recognize that by integrating
sound environmental, health and safety management practices into all aspects of their business,
we can offer technologically innovative products and services while conserving and enhancing
resources for future generations. Apple strives for continuous improvement in their
environmental, health and safety management systems and in the environmental quality of our
products, processes and services.
In recognition of current market trends, Steve Jobs has claimed that he wants to transform the
company by making the Mac the hub of the consumers' digital lifestyle. Despite Apple computer's
recent successes, the company is facing an ever-changing competitive environment on multiple
fronts.
1. What are the key strategic challenges facing Apple Computer?
2. What are some of the dimensions along which company success can be measured?
3. What critical external and internal environmental factors have strategic implications for Apple's
future?
4. How does Apple's strategy stand up against industry rivalry?
5. What recommendations can be made to enhance the effectiveness of the company's strategy or
to change its strategic approach for better results?
Apple Finding and Discussion

For the purpose of illustration, the industry analysis of Apple Inc. will focus specifically on the
portable personal computer manufacturing and sales and on the United States market, although
many of the firms involved in the industry produce, market and sell internationally. Considering
the threats faced by firms operating in this industry the industry is moderately attractive overall.

Many firms within the industry have thrived, but competition is very high, while suppliers and
buyers have moderate influence over the competitors. There are several avenues by which new
competitors may enter the market, but they face substantial hurdles in successfully establishing a
viable brand. Finally the threat of substitutes is credible in some use-cases, but will not
completely usurp personal computers in the foreseeable future.
Rivalry between Competitors
While once an industry defined by few large companies and extremely expensive products,
pursuing a niche audience, the advent of the personal computer (PC) has caused an industry
explosion which now includes dozens of manufacturers pursuing many millions of customers in
the United States. As a result of the penetration of computers into everyday life and business the
PC is becoming more and more a commodity product. For most users, and business economy is
more important that performance specification and other ‘bells and whistles.’ The result has led
many manufacturers to pursue low-cost and best-cost provider strategies. Those at the lowest end
compete on rock-bottom prices foregoing all but the most basic features. Those in the middle
range including Dell, HP, and Lenovo compete for customers offering a range of options for
varying prices. The similarity of their products due to industry standard setting also leads to price
competition that drives down prices and squeeze margins. The desire of companies to buy large
numbers of PCs for the lowest bid available also exercises considerable downward pressure on
prices offered by these firms. The nature of technological development also imposes increased
competition on the members of the industry. The technology behind many key components of
PCs continues to become more efficient with increased processing power and less energy
consumption.
‘Moore’s Law ‘predicts that the number of transistors on a processing chip roughly doubles every
eighteen to twenty-four months. While is more an estimate than a ‘law’ industry leaders like Intel,
Inc. have kept this pace for decades. This perpetual innovation and development puts pressure on
computer manufacturers to streamline production and refresh products at a pace largely unseen in
business for centuries.
PARENT COMPANY/ STRATEGY
United States is Apple Inc parent country.

International strategy for international business.

Determined by cost of reduction and local responsiveness.
Does not need to customize their products or marketing because it will raise cost overall.
Two Competitive Pressures
Cost of reductions.
Pressure of local responsiveness.
Global Standardization StrategyTransnational Strategy

International StrategyLocalization Strategy
Swot analysis IHRM strategy at APPLE company
Apple is the top most company in computer industry they have a wide variety of products, from
mp3 players and printers to personal computers and powerful servers. Their IHRM strategy that
improve their skill and find the excellent worker Companies have trouble operating within the
computer industry, namely due to the dynamic that the numbers of transistors per square inch on
integrated circuits will double every 18 months, and prices will be reduced. This means even the
largest firms must stay on their toes, as the industry is constantly changing and redefining its
parameters.
LABOR LAWS
“Workmen’s Compensation Act, 1923”
“Payment of Wages Act, 1936”
“The Industrial Disputes Act, 1947”
“The Minimum Wages Act, 1948”
“The Maternity Benefit Act, 1961”
“Payment of Bonus Act, 1965”
“Payment of Gratuity Act, 1972 ”

LABOR MARKET AND COMPETITION
Lower standard of living, cost of inputs decreases, cheaper wages
Labor force participation rate= about 400 million out of 1 billion
30 million in organized employment, 340 in unorganized (organized private sector –3% of
employment)

Compete directly with Microsoft

(PC vsMac) They own everything
Apple’s Ihrm strategy implement their program which they are applying in other country they .
has recently made headlines by breaking into Apple is committed to driving the highest standards
for social responsibility throughout our supply base. They require that their suppliers provide safe
working conditions, treat workers with dignity and respect, and use environmentally responsible
manufacturing processes wherever Apple products are made. Their suppliers must live up to
Apple’s Supplier Code of Conduct as a condition of doing business with us. Drawing on
internationally recognized standards, our Code lays out Apple’s expectations in the areas of labor
and human rights, worker health and safety, the environmental impact, ethics, and management
systems. We insist that our manufacturing partners follow this Code, and we make sure they do
by conducting rigorous audits with the help of independent experts. If manufacturers don’t live up
to our standards. On the personal computing side of Apple’s market are a number of products
from various competitors. Each of these competitors has a wide range of computing systems
designed for various types of users. Dell is marketing its Dimension line of computers for desktop
users and its Inspiring line for laptop users. Both the Dimension and Inspiring lines differ in
features and power to provide varying selections for customers with diverse needs.2 The same can
be said of Hewlett-Packard’s Pavilion/Presario desktop and laptop PCs, as well as Gateway’s
3200/5200/7200 series desktop computers and M210/M320/M520 series laptops.3,4 It would
immediately seem that Apple has a wide array of substitutes in the market, but the proprietary
nature of Apple’s products sets itself apart from its competitors.
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INTERNATIONAL HUMAN RESOURCE MANAGEMENT

INTERNATIONAL HRM STRATEGIES OF APPLE

PROJECT SUPERVISIOR: - MISS AMITA PASRICHA

NAME: PANKAJ SHARMA

HAND OUT DATE: 7 FEB 2012

HAND IN DATE: 7 MAY 2012

APIIT SD INDIA [2012] Page 1

APIIT SD INDIA [2012] Page 2

Miss Amita Pasricha

APIIT SD INDIA [2012] Page 3

International Human Resource Management (IHRM)

APIIT SD INDIA [2012] Page 4

In simple terms, IHRM is concerned about managing human resources at Multinational

Recruitment and Selection

Training and Development

APIIT SD INDIA [2012] Page 5

Health and safety etc.

International Staffing Policy

IHRM in the literature Review

APIIT SD INDIA [2012] Page 6

APIIT SD INDIA [2012] Page 7

APIIT SD INDIA [2012] Page 8

Apple’s Organizational Chart (November, 2008)

Hardware Software Business Support Services

IPod Applications Legal

APIIT SD INDIA [2012] Page 9

Markets and Distribution

Apple Lisa 1983

Macintosh Portable 1989

Apple Newton 1993

APIIT SD INDIA [2012] Page 10

IHRM strategies of Apple Company

APIIT SD INDIA [2012] Page 11

Strategic Planning at Apple Inc.

Recruitment and selection

APIIT SD INDIA [2012] Page 12

International recruitment and selection

Strategy of Recruitment and selection in Apple

APIIT SD INDIA [2012] Page 13

APIIT SD INDIA [2012] Page 14

FACTORS AFFECTING SELECTION

Analysis of recruitment and selection strategies

APIIT SD INDIA [2012] Page 15

Training and Development

Strategy of Training and Development in Apple’s

APIIT SD INDIA [2012] Page 16

Environmental factors affecting training and development

Training Needs Analysis (Needs Assessment) for Apple Inc.

APIIT SD INDIA [2012] Page 17

Training and development

APIIT SD INDIA [2012] Page 18

Performance appraisal is a system of review and evaluation of an individual or team’s job

Strategy of Performance appraisal in Apple

The activities of APPLE employees were guided by a comprehensive system of management by

made to interconnect horizontally and vertically throughout APPLE. The management by

APIIT SD INDIA [2012] Page 19

supervisor but adjusted based on a ranking process, conducted by managers in face-to-face

meetings, which compared employees in different departments with similar responsibilities.

The Performance - Appraisal Cycle

Environmental Factors Affecting Performance Appraisal in Apple

APIIT SD INDIA [2012] Page 20

Can vary according to incentive and motivation.

Basic needs - food clothing