APPLE

NISHANTH URS
Principles of management

CLASS C

REG NO: 064

BACKGROUND OF APPLE INC.
Apple Computer Inc. is known for its innovative and proprietary hardware and software and has
made great achievements in recent years. In 2009, a study by Qumer (2009) revealed that, Apple
topped Fortune Magazines’ most admired companies list for the second consecutive year and also
has received a top rank in innovation and people’s management. In the same year, it was reported
that Apple posted revenue of $8.34Billion and a net profit of $1.23Billion (Qumer 2009).

CULTURE IN GENERAL
 Tough guy culture

This type of culture is characterised by high innovative as well as high risk taking individuals, with a
low level of teamwork. Such companies or individuals tend to follow a cycle of boom and bust.

 Work Hard play hard

In the work hard play hard culture, work is fun and there are plenty of actions with low risk and
quick feedback on success. Such companies are characterised by high volume of sales. The
individuals work alone but have supportive team.

 Bet your company

This is a high risk, long term industries and usually requiring significant technical expertise, such as
oil companies and aerospace business.

 Process culture

This group is rather a low risk and a low feedback organisation. Examples are the public industries
and Civil services. In this kind of culture, status issues and the use of graded titles are of
paramount importance.

It is apparent to say that the culture of an organisation is directly linked to its strategy, structure,
leadership and performance. Any change to one of these components will affect the others.

To this effect, when planning a change in strategy, it might be necessary to consider how it might
affect the culture, organisational structure and other elements of the organisation, a requirement
essential when looking at the critical analysis.

APPLE’S ORGANISATIONAL STRUCTURES

Apple’s corporate culture is a unique corporal style that is only suitable for Apple. Measuring
against the traditional classical organisational culture, it can be said that Apple’s ad hoc approach
is out of date. However, when measured against the post classic, modern information generation
as supported by Hewlett et al. (2009) it can be argued that Apple is in line with today’s
requirement for success.

In functional structure, people are grouped on the basis of their common expertise, experience
and resources. Employees within the functional divisions of an organisation perform a specialized
set of tasks. This results in operational efficiency within the group. However, it could also lead to
lack of communication between the groups in the organisation as is the case in Apple.

APPLE’S LEADERSHIP
Based on an earlier work by Weber which was later developed by Burns and extrapolated by Bass,
Bass (1985) suggests that transformational leadership should be defined based on how the leader
influences or affects his followers. Bass contests that charisma alone is not sufficient to define a
transformational leader. Transformational leaders should be able to stir up strong emotion that will
cause identification of the follower with the leader.

Transformational leaders are believed to use their authority and power to fundamentally reform,
thus changing the old ways of doing things (Bass 1985). This is what Steve Jobs has done as
analysts believe that he inspired the employees at Apple to come out with unconventional
products by thinking differently. It is also said that he inspired the employees to ‘change the word’
(Qumer 2009)

Furthermore, another drawback to the transformational leadership style is the indispensability of

the leader as it is a leader centric system (Burns 1978) Analyst has suggested that the biggest
challenge facing Apple is their strong attachment to its charismatic leader, Jobs. A man accredited
for inspiring Apple to a greater height. However, stakeholders are concerned about the company’s
future in his absent.

Business Ethics
Business ethics are a set of believe which an organisation stands for. In general terms, it covers its
responsibility to its stakeholder, shareholder, employee, customer and the society in general. It is
also concerned with the economy, politics and the environment. (Redman and Wilkinson 2001)

The fundamental principle of Apples Business ethics is said to be ‘Use good judgment’. In its
mission statement, Apple stated that it is committed to protecting the environment and ensuring
health and safety of its employees and the global community (lliev et al. 2004 p.44).

Although Apple has developed consistent code of business ethics, it hasn’t been successful in
implementing them and has not fostered a sound ethical organization culture. Their fundamental
principle and mission statement is not reflected in the way they do business.

It is unethical for Apple to maximize the returns to its shareholders at the expense of its employees
work life balance. Making money is not wrong in itself, but it is the manner in which Apple
conducts its business by exploiting its workers that is wrong.
Secrecy
Apple’s culture of secrecy might earn them criticism on their lack of transparency and raise
questions about their sincerity. Its obsession with maintaining security could hurt the company and
its brand in the post modern era of transparency.

Having said that, it is important to note that the strict information protection policy implemented
by Apple has enabled it to preserve the confidentiality of its proprietary and protect its trade secret
information. However the element of secrecy that has enabled this has incurred an increasingly
costly price and has become morally and ethically unsustainable.

Benefits and Reward

Benefits and Rewards are a crucial component of any organisation and are the primary driver of
employment. It is an entitlement for a work well done between an employer and his employees.
This viewpoint has been backed by Newman and Milcovich's work (2001, p.6).

Recently, there has been a tendency toward the creation of pay systems that are performance-
based. Simply put, it indicates that compensation is based on contributions. Wolf (1999, p. 48)
summarises the widely held belief on pay for performance by asserting that it "is the holy grail of
modern compensation administration."

In Apple, this is the situation. Apple has a reward system that is based on performance. However, it
uses the "Carrot and Stick concept," which holds that behaviour can be induced by utilising both
rewards and punishment (Levinson 1972).

*******
Tim Cook
CEO

Apple's CEO and a member of the board of directors is Tim Cook.

Tim served as Apple's COO before being named CEO in August 2011 and was in
charge of all global sales and operations, including end-to-end administration of
Apple's supply chain, sales activities, and service and support in all regions and
nations. He was also in charge of Apple's Macintosh division and made significant
contributions to the ongoing growth of strategic supplier and reseller relationships,
guaranteeing flexibility in response to a market that was becoming more
demanding.

Tim served as the vice president of corporate materials at Compaq prior to joining
Apple, where he was in charge of acquiring and overseeing the company's entire
product inventory.

Tim served as the Chief Operating Officer of Intelligent Electronics' Reseller Division
prior to joining Compaq.

Tim worked with IBM for 12 years total, the last three of which were spent in the
position of director of North American Fulfillment, where he oversaw the
manufacturing and delivery processes for the IBM Personal Computer Company in
North and Latin America.

Tim received a Master of Business Administration from Duke University, where he

was a Fuqua Scholar, as well as a Bachelor of Science in Industrial Engineering from
Auburn University.

THE WAY COOK CHANGED APPLE:

Many people still clearly recall Steve Jobs as the face of Apple's invention; thanks to
his charisma, the world was introduced to radically novel ideas about computers,
music, and phones, which ultimately helped Apple survive many of their formative
years. However, when their charming boss chose Tim Cook to succeed him before he
passed away from cancer, the company underwent a significant change.

Cook, a Stabilizer (SC) personality, had a very different style of leadership than Jobs,
a more brash Initiator (DI). Cook tended to sit back, listen, and process before giving
counsel rather than motivating people with motivational speeches or issuing firm,
authoritative directives.

Cook frequently leads with patience and pragmatism in contrast to Jobs' quick-
witted, flamboyant zeal.

Cook has contributed to Apple's rise to become the well-known brand that it is
today, despite initial concerns from many that the company wouldn't flourish
without Jobs' creative concepts and charismatic presentations. Apple's stock has
climbed by more than 480% since Cook took over as CEO in 2011, according to
CNBC, which is a glaring evidence that his leadership has helped to successfully
continue the company's success. Apple, the first company in history to reach a
market worth of $1 trillion, is now renowned throughout the world for both its
technology that has defined a generation and the way it is run.

Here are some of Tim Cook’s strengths as a Stabilizer (SC), that have impacted the
way in which he leads Apple:

 He steps back to listen and let others share.

 He shows great care for the values and philanthropy of the company.
 He asks questions to draw out important information.
 He takes his time to process information before making a decision.
 He expanded on what Apple was already good at.

Cook's aptitude for probing questions has aided in ensuring the dependability and
expertise of individuals in the most crucial positions at the business, which can
enhance the overall success and reliability of their products.

Cook typically takes their time and makes thoughtful decisions while acting as a
stabiliser. Jonathan Ive, a former chief design officer, once said of Cook that he
projected a "quiet consideration." In other words, he deliberates before acting, as
opposed to under Steve Jobs, who tended to act more impulsively and passionately.
As a Stabilizer like Cook, he is able to devote more time to large projects, which has
improved the stability and dependability of Apple goods.

In Cook's tenure as CEO, Apple has released Airpods and the Apple Watch, but there
hasn't been a significant, market-changing product like the original iPhone.
Nevertheless, Cook's ability to push for improvements to and investments in Apple's
core products has allowed the company to develop and expand at an unheard-of
rate.

Apple's Long-Term Prospects:

Tim Cook's style of management has aided in transforming Apple into the tech
behemoth it is today. His emphasis on expertise, dependability, and long-term
stability has increased the company's value in the eyes of the public and will
probably keep Apple afloat until it's time for someone else to take over the helm.

*******
 How Covid affected APPLE

A multinational American company that specialises in the design, development,

production, and marketing of portable electronic devices, such as smartphones and
PCs, software, media players, and laptops It is Apple Inc. In Cupertino, California The
business'. The company's headquarters are in Cupertino, California. Managed by a
board of administrators and directors. Apple creates and produces its own products.

a variety of goods, including iPhones, iPads, Macs, iPod, iTunes, and Apple Watch.
Additionally, Apple encourages a culture of innovation and creativity through

encouraging its designers and engineers to develop revolutionary concepts that

finally created the world computer industry leader.

Apple's first priority is creating outstanding goods, not profitable ones.

The global expansion of Covid-19 is having an impact on the business environment

and global economy world. Apple must adjust in order to meet the difficulties.

its methods for responding to the adjustments. Apple established that one of the
most successful groups during the pandemic's first year Despite shop closings,
supply-chain hiccups, and many clients' finances while posting a record amount of
revenue fiscal year, its stock value nearly doubled. Given Apple's Stores in the United
States are once more open, and the job market recover, the business is anticipated
to get over its pandemic-related difficulties and gain from more reliance on
technology.

Older versions were not ideal for videoconferencing programmes like Zoom, which
are essential for team meetings and small classes, according to experts. Laptops are
one of the main benefactors of the pandemic's technological developments because
employment is becoming more flexible. It is highly worthwhile to research how the
company that has the highest market value in the world overcame the crisis and
completed further expansion.
  IMPACT OF COVID-19

SALES:

COVID-19 has had an impact on retail outlets, and iPhone sales in China are down
this year. Previously afflicted by the domestic pandemic, Apple has finished its offline
retail outlets for several days in a row, while mobile phone sales have plunged.
According to data from the domestic mobile phone market provided in February by
the China Academy of communications and communications, the domestic mobile

phone market shipped 6.341 million units in February, a 54.7 percent reduction year
on year. In January and February, 26.7 million units were supplied, a 42.1 percent
decrease year on year. It's worth mentioning that Android phones sent roughly 5.84
million messages in February, while iPhones sent about 490000. This indicates that
phone shipments in February declined by 770000 (62%) year on year and 1.82
million (78%) month on month. The closing of shops had a tremendous impact on
Apple. This time, eliminating all retail outlets outside of Greater China will result in a
substantial drop in Apple's mobile phone sales since retail stores are critical to
Apple's business model.

Supply Chain:

A novel profit model has been adopted by Apple, which differs from the traditional
manufacturing industry of controlling product costs. Apple's combined marketing
strategy of "hardware + iTunes software + content" is a novel profit model. Rather
than selling products, apple sells an integrated "solution" that meets people's
demands in life, work and entertainment. Based on this unique closed ecosystem
design, Apple has the confidence to adopt the skimming pricing method, which
means that the products have high pricing and high gross profit. Although the unit
charges for music, application software and other services are low, they are "profit
without cost", 63.7%. The traditional product value chain suggests that Apple has
built its primary competitiveness on the two ends of the "Smiling Curve" with the
greatest value: research and development and marketing, capturing the most
significant profit space, while Apple has primarily outsourced assembly and
manufacturing in low-value areas.
 CONSUMERS:

According to M.B.L.M., 50 percent of the 3000 U.S.U.S. customers assessed during

the epidemic utilized Apple's products and services more than normal. During the
pandemic, Apple's good system product ecological chain provided tremendous ease
to workers who worked from home. Prior to the virus, 33% of users stated they were
"inseparable" from Apple and its services. This proportion increased to 40% last year
and will reach 48% by 2021. Similarly, the share of "close users" has risen from 41%
before the new crown to 51% in 2020 and 52% this year. Prior to the pandemic
breakout, around 22% of customers were prepared to pay a 20% premium for Apple
products, growing from 21% last year to 29% in 2021. As can be seen, the pandemic
has increased customer reliance on Apple.

STRATERGIES IN COVID-19

The worldwide economic environment and business model are changing as a result
of COVID-19's widespread distribution. meeting the

Apple's procedures must change to keep up with the challenges.

the period. Experts claim that the primary cause is that past Unsuitable models for
videoconferencing programmes for team collaboration, such as Zoom conferences
and little classrooms. Benefits for laptops

the technological advances of the pandemic improvements, given that employment

is increasing flexible.

 Diversification of Products

Apple's choice to expand its services division paid off during the pandemic, yielding
the highest-ever revenue and assisting the company in defending itself against
downturn in certain of its areas.

 Building Subscription Income

Apple's move to expand into a subscription-based company, as anticipated some

years ago, has aided. Apple's previous product-driven income generating approach
depended significantly on developing extremely popular electronic goods, leaving
the company vulnerable if economies fell or customer enthusiasm decreased.

 Focusing on Telework

Working remotely has increased productivity among certain of the Company's

workers while significantly cutting management expenditures. People are becoming
more acclimated to working and learning from home, and this trend is likely to
continue. The message must be that, rather than perceiving remote working as a
temporary business disruption, Apple can simplify the experience in order to boost
both company efficiency and employee autonomy.

 Increasing Online Service and Sales

Before COVID-19, Apple's retail outlets primarily acted as a point of sale, product
repair, and servicing. During the epidemic, though, Apple was forced to reconsider
the format of its shops and relocate some of those experiences online. Apple, like
other retailers, is balancing its in-store and online offerings as customers resume
normal buying patterns.

 Strengthening the Apple Ecosystem

Apple's business model is vertical integration in the sense that the corporation has
advanced competence in software, hardware, and services all at the same time.
Apple's vertical integration is one of the key aspects that distinguishes it from the
competitors. The Company has reaped enormous benefits from its vertical
integration. In particular, an important source of Apple's competitive advantage is its
ecosystem, which is enabled through such integration.

CONCLUSION

In this article, it was detailed how Apple handled PEST scenarios and the pandemic.
They were astute in the present. It made use of the time to consider the drawbacks
of and used it to their advantage. Moreover, Apple developing across the PEST's
regions. some businesses only focus on the technological aspect while ignoring
everything else young entrepreneurs need to understand how they in response to
the epidemic This incident also served as a lesson. About environmental adaptation.
Going forward, young businesspeople should operate their businesses like Apple.
Combining the environmental changes and poverty in a clever way time.

References

www.atlanticpress.com

www.hbr.org

www.google.com