Management in Creative and Cultural Organizations
[TUTOR’S NAME]
1.0 Executive Summary
Creativity and culture have long been regarded the lifeblood of organizational success but today diverse practices have changed the global business environment. Apple Company is an American cosmopolitan corporation that designs as well as manufactures consumer electronics, personal computers and computer software. The cultural and creative way of management of the organization is a superb idea to push the world forward. Apple Inc relies on diverse backgrounds and perspectives to spark innovation by choosing partners who make diversity a priority and creating opportunities for the next generation. Apple has constantly been different regarding handling problems particularly in creative and cultural sectors given that it’s a kind of corporation with a diverse outlook of the globe. It is evident that Apple Company can create the most excellent products on earth that revolutionize lives as well as help build the future. Creative and cultural sectors are critical to modernization, and it is important to Apple’s future. Fostering culture not just at Apple Company but all the way through our entire system, from the customers the company welcomes in the stores to the sellers as well as developers. As a point of fact, the creative and culture of the enterprise determine the capabilities of supporting changes, new policies as well as new strategies. In the case of Apple, employees are adequately developed and integrated into an organizational culture that facilitates innovation. Given that corporate culture contributes to business strengths, it also inflicts limits as well as challenges to the corporation. However, Apple Company has been gradually having been turning its organizational, creative and culture to match the dynamics of its industry environment suitable. Therefore, the report pinpoint on a real-world business problem faced by Apple Company in the creative and cultural sector.
Management in Creative and Cultural Organizations
2.0 Background of Apple Company
2.1 Size and growth of the company
Steve Wozniak, Steve Jobs, and Ronald Wayne founded Apple Company on April 1, 1976, to develop as well as sell personal computers. The headquarters of Apple Company is in Cupertino, California. It’s the world’s largest information technology company regarding revenue whereby its annual revenue totaled $ 233 billion for the fiscal year ending September 2015, the world’s biggest technology company by total assets as well as the world’s second largest mobile phone manufacturer. The products of Apple Company include Apple Watch, Apple TV, iPhone, iPod, iPad, Mac, a portfolio of consumer and professional software applications. The growth of the company is based on the business strategy that leverages on its unique ability to design as well as develop its operating systems, hardware applications software, and services that provide customers with solutions on the products through innovative design and seamless integration (CROUCH, 2014 p.54).
Ever since its inception, the company has remained relevant in the computer and electronics industry. Their designs and innovations have left many customers to remain loyal to the organization. The success of this organization lies on the organization structure and corporate cultures. Thus, organizations employees are the key pillar in the success of this organization. Apple employs people from diverse backgrounds. Most of its employees come from different parts of the world. They have an open recruitment policy that ensures quality talent is identified and people from diverse backgrounds are given a chance to serve in this corporation. One of the major concerns of this organization is the creativity of its employees. For apple to remain relevant, they need quality workforce that is able to keep up with the latest competition in the industry. The electronic industry is one of the most competitive industries where companies must be creative and innovative to keep up pace with their peers. Most of the technologies developed in the electronic industry become obsolete within few years. Thus, with creative and multicultural workforce, managing Apple’s employees becomes of the most difficult challenges that management has to face. Therefore, this essay will focus on management issues in creative and cultural background of Apple Inc.
2.2 How Apple Company is structured
A successful organization needs a strong organizational structure. Apple Company is organized in a way that will best meet their goals as well as its objectives. Apple Inc functions under a collaborative structure that is designed to bring parties together in a long-term relationship to achieve a common goal. The operational plan of Apple Company is to run an entire organization the finance department, human resource, manufacturing, marketing to help determine the best design and strategy that needs to be elaborated to achieve the best results and reach more customers as well as increase profit. Apple is highly associated with the human resource department to incorporate organizational development and strategies. Some of these strategies include:
• Retain with growth opportunities
• Providing exceptional customer service
Therefore, the organization chart of Apple is active in supporting the performance of the business to ensure leadership in the industry. However, changes in organizational structure help Apple Company to improve its capabilities particularly in the area of rapid as well as creative innovation and design.
2.3 Important trends of Apple Company
The service section of Apple Company has increased its share regarding overall revenue. Ideally, the Company’s sales of its Mac computer increased nine percent during the quarter to 4.7 million units. Lately, the Macs have regularly outperformed the global personal computer market. Additionally, China is still a key market for Apple. China has remained robust in the June quarter making China account for 27 percent of Apple’s overall revenue in the quarter. Apple has not seen a sales slowdown despite stock-market turmoil in China. As a point of fact, Apple is a world computing and productivity company given the fact that it has become a consumer-focused electronics company in entertainment, music as well as fun. The launch of Apple Pay has enabled another leap toward bridging the Internet and the real world a very lucrative place. Interestingly, Apple Watches are a fantastic new playground for digital agencies. Therefore, Apple Inc considers three essential trends which are a small focus, predictive approach to advertising and gateway between the digital and real world (BUBER & EISENSTADT, 2013 p.5).
2.4 Position of Apple Company about creative and cultural sectors
The Apple’s managerial culture and creativity have the necessary characteristics to ensure the enterprise is leading in the market. Apple faces a real-world business problem in the creative cultural sector that brings confronts because of the importance of confidentiality as well as the reasonable level of combativeness. It is evident that an environment of privacy limits understanding among workers and the combativeness that exists in the organization has the drawback of limiting self-esteem of some employees. The issue of creative and culture in Apple Company has created room for significant improvements to reinforce the human resource abilities of the firm.
3.0 Nature of problem in Apple Company
3.1 The Exact Issue
Culture and creativity in marketing are the broadest sense that impact organizations globally notably Apple Company. The cultural influences such as how employees interact, communicate, dress, and eat just to name but a few impact the marketing of new products and services. Culture-based marketing is an essential factor in any organization given the fact that it’s a feature of a post-industrial economy. Apple’s political, economic as well as social philosophies impact the way values shape people. Ideally, marketing impact Apple business interactions in critical ways. It is essential to comprehend that marketing is always evolving. Every employee in Apple Organization has its unique way of marketing the products, own way of thinking, values, beliefs as well as mindsets. As a point of fact, every organization has its way of selling its products. Apple Inc has distinct business cultures which influence the type of employees hired and the personalities of their founders.
3.2 Arising of marketing problem
The issue of marketing is faced with numerous challenges that for many firms will require a transformation in its capability as well as charge. Despite the fact that Apple Company has a notable reputation for being inventive as well as creative regarding marketing its products and hiring people who are fanatical about its products, culture, and creativity influence its obligations. The corporate culture of Apple Company was driven by the passion for marketing new products with no end to challenges as well as opportunities. Apparently, the business marketing at Apple Inc was exemplified by intense work ethics. Right from the beginning, Apple culture was based on secrecy. The aspect of confidentiality impacted the creativity of the company and the brand in the new environment. From a management point of fact, some people appreciated the way marketing products were conducted by Apple saying that it valued creative people. The performance of the Company was a critical concern for all stakeholders given that a change in the company’s marketing strategy is required so that to remain competitiveness in the long run.
3.3 Marketing problem is not particular but a global
Marketing has been a business challenge for centuries not only to the Apple Company but also global companies. Globally, organizations are struggling to adapt new strategies for marketing their products. Every organization faces a different challenge regarding selling their products given that the companies have different goals and are having troubles finding the right machinery for their needs. Ideally, consumers across the globe are influenced to purchase products by marketing messages delivered through the media. But this can be perceived as extremely confusing based on the culture and the translation of the word from one language to another. Marketing of products requires a deep understanding of customs, morals, and even religious views (International Conference On Cybernetics And Informatics, & Zhong, 2013 P.5).
3.4 The scale of marketing problem
Increasing competition has enabled Apple Company to score lower that it expected regarding dealing with its business obligations. Equally, over the past years, no single organization model for marketing its product is the best given that handling the realities of rapid growth in emerging markets is a global communication. Apparently, marketing challenges vary depending on the company’s business model. Apple Company is responding differently to the new opportunities so that to set a standard set of tension in managing the challenge both locally and globally. It is evident that the scale of marketing problem provides an accepted hedge aligned with the instability of local growth, countryside risk as well as currency risk. Therefore, pursuing so many up-and-coming market prospects is taking Apple Company deep into areas with unusual risks that many find complicated to evaluate (RAY & ANDERSON, 2012 p. 44).
3.5 How marketing problem threatens the growth of Apple Company
High marketing strategies exercised by Samsung, the only Apple Competitor, has threatened its growth. The increase of the company has slowed down in the transactions of its main iPhone and comparable projections for its revenue as well as profitability. The top concern is being experienced by lower valued competitors as well as more flexible technology platform like Android. Apple Company desires to recast its worldwide strategies particularly for emerging financial system markets and accepting the authenticity that maturing businesses cannot maintain high development rates as well as market supremacy forever.
3.6 Marketing problem pose a significant risk for Apple survival
Apple Company has to come to terms with the reality that the marketing problem poses a significant risk to its high growth rates. This fundamental problem slows the rate of increase as entities get large. It is evident that the company can continue to grow, but the rate will slow down.
4.0 Analyze the Marketing problem
4.1 Key things Apple Company needs to prioritize
Growing too big of Apple Company could bring its set of challenges. Evidently, no company can produce as well as dominate forever particularly in the fast-changing technology market. Apple Company should gradually as well as cautiously shift away from its purely product centric mentality towards a more customer centric strategy. Apple Company should liberate its innovation approach in terms marketing its products (BARON & CARA, 2011 p.6).
4.2 Measures to be taken to achieve success in marketing
Apple Company needs to reshape its innovation strategies to cater to lower-priced Smartphone markets, particularly in China and India. Younger customers want flexibility along with marketing products with lower prices. The idea captures the interests as well as tastes of the younger generations. Given that, the brand name of the products of Apple Company is less compelling. The new generation wants more customization of the products.
4.3 Change that is needed
Apple should expand the role of Phil Schiller, who is currently leading globally regarding product marketing. The company should ensure that it develops products that meet all the target markets and other emerging economies. The company should not ignore emerging markets and low income countries in their innovations. Apple marketing department is focusing on extending its responsibilities to Schiller, who will be accountable for leading Apple's day-to-day advertising efforts leading a broad range of resourceful discipline from the video, graphics as well as interactive web design to packaging. Schiller is taking on new tasks of developing the systems of Apple Company led by the App Store, which has full-grown from a solitary and revolutionary iOS hoard into four influential software platforms (Academy of Marketing Science & Kim, 2016 P.21).
4.4 What should be maintained?
The sustainability of Apple brand should have evolved and expanded its range of products as well as services. The brand is a core competence in delivering exceptional customer experience through the superb user interface. As a point of fact, the products of Apple Company are based on branding strategy. Apple Company has a branding strategy that focuses on the emotions as well as experience. Ideally, the personality of branding is all about innovation, aspirations, passion and power-to-the-people through technology. From a brand architecture viewpoint, the company maintains a master brand identity that is being associated with the name Apple.
5.0 Current Position of Apple Company
5.1 Current strategies of Apple Company for addressing marketing problem
One of the key areas in where Apple Inc management has succeeded in marketing and innovation. Apple Marketing strategy matches its products and services activities to marketplace conditions. This strategy is well aligned with the overall management’s strategies .The marketing mix strategy to use suitable products, delivery, promotion, as well as pricing, is expanding the industry through diverse channels and with a growing product mix (FERRELL & HARTLINE, 2014 p.55). Apple Company ideally is the most excellent organizations in the globe, and the Company serves as an example of how the advertising mix can sustain the success of the business. Additionally, Apple Company is using prices and pricing approach in this section of the advertising mix to represent the corporation along with its products. The image of the enterprise is maintained through this pricing approach in the sense that the products of Apple create a center of attention to a smaller market share composed of individuals from the middle as well as upper classes.
5.2 Ability to the plan to work
This strategy is ideally working given the fact that the company sustains profitability due to the premium prices that entails profit margins. The company is among the most promising organizations in the electronic industry. It has demonstrated success where most companies have failed to venture. Their creativity and innovative features are being copied by other big companies in the industry. As a point of fact, Apple’s management and cultural strategy is associated with the premium development strategy of the company. The approach emphasizes on the premium image along with the superiority of the products. The firm is active in marketing mix product development through innovation (Matej Černe et al, 2016 p.3).
5.3 Successfulness of the strategy
The strategy is successful since it is supporting a broad range of market share both locally and globally. The firm’s products are designed for everyone. Substantially, the strategy maintains its leadership and position as a high-end and high-value business. Apple Company uses marketing mix strategy as its primary tool for growth. Therefore, this demanding growth approach agrees with the company’s generic strategy on unique Apple products that can increase profits.
6.0 Alternative approaches
6.1 Other alternative approaches Apple Company can pursue
Market development is one of the methods Apple Company use as a significant intensive strategy for growth. Consequently, market development entails creating new-fangled markets for latest products. This approach is intensive and comparable to access the market, but growth focuses on ascertaining a presence in innovative markets. This increase plan authorizes new merchants in markets, and it’s applicable in rising markets. Additionally, broad differentiation of the products of Apple Company focuses on the main features that differentiate the company and its products from competitors. Apple stands out in the market through the broad differentiation of the generic strategy. This strategy helps the company to aim high to set itself apart from its competitors not only by price but also by other key features that are beneficial to the customers (CAKIM, 2012 p. 56).
6.2 How do these approaches compare with a current strategy regarding effectiveness?
The strategies are essential while penetrating markets where Apple Company has not yet achieved a significant position. The company has been struggling to enter emerging markets such as Brazil, India, and South Africa which are relatively low income countries. It is effective since the approach broadly captures the market by selling more current products to more customers in current markets. Moreover, the present method enables Apple Company to reach clients in all market segments. Apple continues to expand the component of the advertising mix which associates with the products that are successfully promoted as well as sold through a variety of distribution channels. The collaboration of these strategies effectively shows the diversification of the company based on the mechanism of the advertising mix (O'GRADY, 2013 p.33).
6.3 Additional measures Apple Company can apply to support its current strategy
The company should improve the current plan in an aggressive manner by penetrating into markets particularly in the developing countries where there is still limited in Apple’s market reach. However, to advance performance that is allied to the strategies, the corporation should give emphasis to more on marketplace penetration as well as market development. The application of these procedures can ideally improve the resilience of Apple Company against forceful competitors such as Samsung (KERIN & PETERSON, 2011 p.66).
7.0 Conclusion and Recommendations
In conclusion, the report found that Apple is the most influential company regarding innovative as well as early adapters. Managing a creative and cultural organization is one the most challenging tasks that most managers face in their organizations. However, Apple has demonstrated ability to curb this problem. The organization seems to understand its role in the society. Besides they have employed effective and efficient steps to ensure that the organization enjoys smooth operations.
As a point of fact, Apple is the first company to come out with a new product line before anyone else. Apple has a great potential and has a lot to improve by accessing their labor and raw materials on the cheapest possible terms. The idea will ideally benefit the people in the least developed countries. Therefore, Apple Company applies the four principles of network security by offering a valid source of confidentiality with their terms and agreement statements. The company is progressing towards beneficial behavior progressing towards further globalizations.
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