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Report on How Apple is Organised for Innovation

Neha Parab

Colleague ID: 0608679

GGU FEB 23- MBA

LEAD 300: Management and Leadership

April 19, 2023

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How Apple is Organised for Innovation

Apple Inc. is one of the most innovative and successful technology companies globally. The

company's organizational structure has been instrumental in its growth and success. However, with

the evolving market and changing consumer preferences, Apple should consider adopting a different

organizational structure that aligns with its innovation vision while retaining its unique leadership

characteristics. This report will recommend an organizational structure for Apple to remain

competitive in the market.

Steve Jobs, the co-founder of Apple, implemented a functional organizational structure that

separated the company into different departments based on their functions. This structure has

worked in the past and has helped Apple maintain its position as an innovative technology company.

The current structure includes design, hardware engineering, software engineering, marketing,

operations, finance, and legal. Although every department of the company operates independently,

they work collaboratively in order to determine the company's goals and to achieve them. This

structure has enabled Apple to make quick decisions and to be flexible when adapting to changing

market conditions. It has also allowed the various departments to take ownership of their respective

aspects of the company and to have a direct impact on the success of the organization.

Apple's leadership is characterized by deep expertise, immersion in details, and a willingness

to debate collaboratively. The redesigned organizational structure should retain or improve these

characteristics to ensure Apple's innovation and success. This renewed focus on the leadership

values that define Apple will be essential to ensuring its continued success and innovation. By

creating an organizational structure that emphasizes collaboration, Apple will be able to leverage the

expertise of their leadership team and harness the power of collective intelligence. This will allow
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Apple to identify and solve problems quickly, and create innovative solutions that will keep them

ahead of the competition.

Apple should consider a matrix organizational structure. The matrix structure combines

organizational and project-based structures, allowing for enhanced flexibility and collaboration

between departments. In a matrix structure, employees are organized into teams that work on

projects. Each team reports to a project manager and a functional manager. This structure enables

employees to focus on project-specific tasks while retaining their expertise in their respective

functional departments. This structure would allow Apple to remain agile and responsive to

changing market conditions. It would also create a system of checks and balances that enables the

company to keep projects on track and ensure that each department is working together

collaboratively. Furthermore, it would ensure that employees can access the resources they need to

complete their tasks, regardless of their functional department.

In a matrix structure, Apple can maintain its deep expertise and immersion in details by retaining its

functional departments. However, project-based teams will allow employees to work collaboratively

and debate ideas, leading to innovative solutions. For instance, when developing novel products,

project teams can include employees from different departments, such as design, hardware

engineering, and software engineering. This is to work together and develop a product that meets

customer needs. This collaborative approach allows employees to bring their unique perspectives to

the table, which can result in a more comprehensive and well-rounded product. It also encourages

innovation, as team members are encouraged to think outside the box and come up with creative

solutions.

Apple's innovation vision is to create products that change the world. The matrix structure will

allow Apple to continue to innovate by fostering collaboration and teamwork among employees. By
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working together, employees can develop new products that meet customer needs and exceed

expectations.

The matrix structure allows Apple to have a nimbler structure with fewer layers of

management, which encourages teams to work across departments and collaborate on new ideas.

This structure also allows Apple to be more responsive to customer feedback and quickly implement

changes to their products.

Additionally, the matrix structure allows for additional flexibility, which is essential in the fast-

paced technology industry. Employees can quickly adapt to market changes and work on various

projects to meet customer demands. The structure also allows Apple to respond to emerging trends

in the market, such as the shift towards sustainable products.

In conclusion, Apple should adopt a matrix organizational structure that combines functional

and project-based structures. This structure will allow Apple to retain its unique leadership

characteristics, such as deep expertise, immersion in details, and willingness to debate

collaboratively. In addition, it will foster collaboration and innovation among employees. Matrix

structures allow Apple to continue aligning with its vision of innovation and creating world-changing

products.

References

Harvard Business Review- REPRINT R2006F, PUBLISHED IN HBR NOVEMBER -DECEMBER 2020

https://services.hbsp.harvard.edu/api/courses/1043846/items/R2006F-PDF-ENG/sclinks/

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