1. Apple’s international business organization
Apple Company has an elaborate global market system, and that distributes the company’s products to most parts around the world. The company supplies its products to Europe, China, South Korea, Middle East and Africa. These countries receive products from the Apples headquarter located in Cork, Ireland. As of March 2016, the company had 475 stores in about 17 countries (Apple stores, 2016). Additionally, Apple Inc has an online store that serves 39 countries around the world (Brewer & Fox, 2016). The company has a significant international market share, and almost half of Apple's income comes from the global market other than the U.S. For instance in the first quarter of 2016, the company got 40% of its earnings from international market (Baron, 2016). Evidently, Apple has an excellent marketing network that helps to drive sales outside the United States.
2. Rating of Apple’s business ethics
I would rate Apple’s stance on business 70% since the company ensures all its workers display right behavior in various situations. The success of the Apple is due to its innovative, quality products and demonstrating integrity in business relationships. Importantly, the company holds transparency, respect, confidence, and compliance. Additionally, Apple applies its code of ethics in all its business transactions both in the United States and overseas.
Conversely, some of the company’s products are assembled using cheap labor in some countries. According to Bilton (2014), Apple Computer Inc has failed to protect its workers in China. Additionally, Apple Company subjects some of its employees to long working hours, yet they don’t overtime pay. Bilton, also reports that 14 employees killed themselves at Foxconn, the company’s largest outlet in China due to the poor working condition. Thus, Apple Computers is not immune to ethical situations in its operations, but it has enough measures to ensure professionalism in its operations.
3. Financial strength and weakness
Figure 1: AAPL income statement (2016)
As shown in chart 1, Apple Company income remains steady.
Apple Company Inc remains consistent in its financial standing. In 2015, the company got 39.9% gross sales in the first quarter. Ideally, the sales increase was due to the performance of iPhone and increased sales in China. Also, there was an increase in sales across other parts of the world. Evidently, the company has strong financial standing. Innovation, uniqueness, high-quality and product diversification are some of the factors that promote sales in Apple Computers.
Apple Computer Inc financial weakness
Apple faces financial threat due to pricing pressure, competitiveness in the world market, instability of the U.S. dollar and reduction in voluntary expenditure. Additionally, not all the products are performing well in the market; in fact, the iPhone is the only product that is selling better in most parts of the world. Furthermore, the U.S., which is the domestic market, the company doesn't get massive sales in comparison to China and Asia-Pacific. Thus, if the international market collapses, the Apple Company may face loss or a reduction in sales.
4. Apple’s stock over the last 12 months
Figure 2: (Apple Inc. NASDAQ: AAPL (2016)
As shown in figure2, Apple Computer Inc stock value remained unstable for the last six month of 2015.
In 2016, Apple Computer Inc forecast that the iPhone would continue performing well around the world. However, the goal is yet to be realized. In 2016, Apple’s stock value drop from about $131.40 to about $100, which is a fall of about 23%. Evidently, the Apple’s stock value share continues to decline, and the company is not performing well in the stock market.
Reasons for the drop in stock value of Apple Computer Inc
First, the investors are struggling with the Apple’s change from growth to a value stock. Ideally, some analytics in China view the company as mature, rather than a growing corporation. Hence, Apple Computer Company may join other businesses that experience slow growth. Second, the company doesn’t have a reliable product in the market apart from the iPhone, and it is facing high competitions in the international market. Hence, the company may have to search for a different product to circulate in the global market.
5. Target market of Apple Computer Inc
Kids and Teenagers
Apple targets teens and children through the iPods, which is a favorite product for these groups. Most teens, especially in the U.S., love to listen to music as they browse social media sites such as Facebook and Twitter. Additionally, iPods come with some gaming apps that teenagers love.
Apple products such as MacBook, iPhone and iPad are targeted to the college students. Importantly, these products are light and portable making them perfect for students. Also, Apple Company includes advanced features in these products to make them more appealing to the college and university students.
Adults and business people
Apple Company targets adults and business people through the MacBook, iPhone, and iPad. These products are ideal for handling business transactions efficiently. Additionally, the business people can have fast access to the internet, and map directions. These groups can also access documents and make quick calls from iPhone.
Apple Company Inc manipulates these audiences through online adverts and television commercials. Further, the company keeps on improving their products to make them suitable for these groups.
6. Organization structure of Apple
Apple’s organization structure is a traditional hierarchy; Steve Jobs was the icon in the leadership. However, the organization structure has changed under Tim Cook. Lashinsky (2014) states that the organization of Apple Company includes spoke and wheel hierarchy, function-based structure and product-based organization.
Spoke-and-wheel hierarchy; under this leadership style, all proposals passed through Steve Jobs, and he also made all vital decisions. This style has changed under Tim Cook; there are various departments such as software and hardware.
Function-based organization, the company has various functional groups such as industrial, marketing and retailing. These functional groups report to the president who handles business needs.
A Product-based organization, in the production department numerous vice presidents report to their seniors and later to the top management of the company.
7. How Apple uses technology to increase productivity and customer satisfaction
Although Apple Computer Inc doesn’t have official social media pages on sites such as Twitter and Facebook, the company uses technology to reach its customers and boost its productivity. First, the company’s products feature high-tech design such as 3D designs, unique touch screen experience in its iPhone and gear beat. These technologies improve customer satisfaction and offer them exceptional experience.
Additionally, Apple Company has an iTune account to allow its customers download apps and music. While the iTune provides customer satisfaction, it improves the company productivity. Also, the company has an elaborate website where customers can view products or ask for support. The site is perfect to serve the international market.
8. Apple’s transformational process in supply chain
Supply chain planning; the company combines marketing and research and development under supply chain. This method reduces the time of introducing new products in the market by getting licenses in time. Through this system, Apple Company makes pre-payment, so they acquire critical raw materials at the right time.
Supply chain model; this model entails the distribution of the company’s products from the assembling stores to the end consumer. Apple Inc utilizes information for its annual reports to draft the supply chain model. While the company sells some of its products in the physical stores around the world, others are sold through the company’s online store.
References
AAPL income statement. (2016). Retrieved April 5, 2016, from <http://www.nasdaq.com/symbol/aapl/financials?query=income-statement>
Apple Inc. NASDAQ: AAPL. (2016). Retrieved April 5, 2016, from MarketWatch, <http://www.marketwatch.com/investing/stock/aapl>
Apple stores: Keep track of Apple’s retail stores worldwide. (2016). Retrieved April 5, 2016, from <http://www.macrumors.com/roundup/apple-retail-stores/>
Baron, C. (2016). Non-u.S. Share of apple’s revenue from 1st quarter 2006 to 1st quarter 2016. Retrieved April 5, 2016, from Statista, <http://www.statista.com/statistics/263435/non-us-share-of-apples-revenue/>
Bilton, R. (2014). Apple ‘failing to protect Chinese factory workers’. BBC Business. Retrieved April5, 2016 from <http://www.bbc.com/news/business-3053246>
Brewer, T., & Fox, L. (2016). Apples Press Info. Retrieved April 5, 2016, from Apple.com, <http://2.http://www.apple.com/pr/library/2007/01/09Apple-TV-Coming-to-Your-Living-Room.html>
Lashinsky, A. (2014). Inside apple: How America’s most admired-and secretive-company really works. United States.
