Phan Huy Bảo – 050609211842 – Strategic Management L27

Case Study: Apple Inc. - Stakeholder Management

Background:
Apple Inc. is a multinational technology company known for its consumer electronics,
software, and services. The company's stakeholders include a wide range of groups
with varying interests and expectations.
I. Primary Stakeholders
1. Shareholders/Investors
2. Customers
3. Employee
4. Suppliers
II. Secondary Stakeholders
1. Government and Regulatory Bodies
2. Local Communities
3. Competitors
4. NGOs and Activist Groups
III. Locate where stakeholders in "How to treat your stakeholders"? Why/The
reason you choose this locate?
Shareholders/Investors:
Shareholders/Investors: usually falls in the “manage closely” category as they have
high power and high interest in the organization.
I put Shareholders/Investors falls in the “manage closely” stakeholders for the
following reasons:
 Financial Impact: Shareholders' decisions can affect stock price and
performance, necessitating effective communication to maintain confidence.
 Long-Term Investment: Engaging long-term investors fosters commitment to
Apple's success.
 Strategic Decision-Making: Shareholders influence decisions; close
management gathers input and garners support for key initiatives.
Customers:
The customers of Apple are the “manage closely” category as they have high power
and high interest in the organization.
I put customers falls in the “manage closely” stakeholders for the following reasons:
  Customer-Centric Philosophy: Apple is known for its customer-centric
approach, emphasizing the importance of delivering exceptional customer
experiences. Managing customers closely aligns with this philosophy.
 High Customer Expectations: Apple's customers have high expectations
regarding product quality, innovation, and user experience. Close management
ensures these expectations are met and exceeded.
 Customer Loyalty: Apple has a loyal customer base. Close management helps
maintain customer loyalty and repeat business.
Employee:
The employees are the “keep informed” as they have low power and high level of
interest in the organization.
I put Employee falls in the “keep informed” stakeholders for the following reasons:
 Hierarchical Structure: Apple may have a hierarchical organizational structure
where major strategic decisions and policies are primarily made by top
management. In this case, employees may have limited direct influence over
high-level decisions.
 Information Flow: Keeping employees informed ensures they are aware of
company goals, strategies, and important updates without overwhelming them
with decision-making responsibilities.
 Focus on Expertise: Apple may value employees' expertise in their specific
roles and may prefer to rely on top management and specialized teams for
strategic decision-making.
Suppliers:
The suppliers of Apple are “manage closely”, this means they have high interest band
high power because if the suppliers cannot levy their demands (for example, high
selling prices for raw materials) on organizations like Apple and gets a better offer
from other customers the suppliers can switch to them.
I put Suppliers falls in the “manage closely” stakeholders for the following reasons:
 Supply Chain Complexity: Apple's supply chain is highly complex and global.
Managing suppliers closely is essential to ensure the timely delivery of
components and materials required for product manufacturing.
 Quality Control: Apple places a strong emphasis on product quality. Close
management of suppliers helps maintain quality standards and ensures that
components meet specifications.
  Risk Mitigation: Close supplier management helps Apple identify and mitigate
potential risks in the supply chain, such as disruptions, delays, or quality
issues.
Government and Regulatory Bodies:
The government usually falls in the “keep satisfied” category as they have high
power but low interest in the organization.
I put government falls in the “keep satisfied” stakeholders for the following reasons:
 Taxation and Financial Regulations: Governments often set tax policies and
financial regulations that directly impact a company's operations and financial
reporting. Maintaining a good relationship with tax authorities is essential to
ensure accurate tax filings and payments.
 Market Access: In many countries, government approval and cooperation are
required for companies like Apple to operate and sell products. Keeping
governments satisfied facilitates market access and expansion into new
regions.
Local communities:
The local communities usually fall in the “keep informed” category as they have low
power but high interest in the organization.
I put local communities falls in the “keep informed” stakeholders for the following
reasons:
 Limited Direct Impact: Apple's operations may have a limited direct impact on
local communities in terms of environmental or social concerns. For example,
if Apple primarily operates retail stores in a community, its day-to-day
operations may not significantly affect the local environment or community
dynamics.
 Low Community Engagement Needs: Local communities may not have
specific needs or concerns that require ongoing engagement or collaboration
with Apple. In such cases, providing information to keep them informed may
be sufficient.
Competitors:
The competitors usually fall in the “monitor” category as they have low power and
low interest in the organization.
I put competitors falls in the “monitor” stakeholders for the following reasons:
  Market Surveillance: Apple needs to keep a close eye on its competitors'
activities and strategies to remain competitive in the rapidly evolving
technology industry. Monitoring competitors allows Apple to stay informed
about market trends, product developments, and emerging threats.
 Price and Value Analysis: Apple can monitor competitors' pricing strategies
and product value propositions to ensure its products remain competitive and
offer compelling value to customers.
NGOs and Activist Groups:
The NGOs and Activist Groups usually fall in the “keep satisfied” category as they
have high power but low interest in the organization.
I put NGOs and Activist Groups falls in the “keep satisfied” stakeholders for the
following reasons:
 Ethical and Sustainability Commitment: Apple is committed to ethical
sourcing, sustainability, and responsible business practices. By keeping NGOs
and activist groups satisfied, the company demonstrates its dedication to
addressing shared concerns and aligning with ethical standards.
 Reputation Management: Maintaining positive relations with NGOs and
activists contributes to Apple's reputation as a socially responsible company.
This can enhance its image and appeal to environmentally and socially
conscious consumers.
 Risk Mitigation: Addressing NGO and activist concerns can help mitigate the
risk of negative publicity, boycotts, or protests, which can have reputational
and financial consequences.