Management at Apple Company
Introduction
The success of any entity depends on the ability of management to put forward strategies that can counter competition and increase the market share (Haslam et al., 2013). Similarly, management plays a critical role in putting in place the strategies that motivate employees to exploit their potential in ensuring the success of the company (Haslam et al., 2013). Additionally, it is the role of management to ensure that it has in place strategies aimed at customer satisfaction. Therefore, the management style put in place by an entity is critical to ensuring the success of the organization. Apple Inc. is one of the entities that have recorded shown a tremendous growth over the years, and its success is attributable to its style of management. The Apple Inc. is a public entity company which is traded on the NASDAQ and S&P 100. The company operates in the computer hardware, computer software, and consumer electronics and in the digital distribution industries. Apple Inc. was founded in April 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and it is headquartered at Apple Campus, California in the United States of America (Segall, 2012). Since 1976, the company has shown tremendous growth and currently it has over 453 stores in 16 countries (Segall, 2012). Therefore, the Apple Inc. serves the global market distributing products such as iPods, Apple Watches, iWork, Operating Systems, iLife, Smartphones among other consumer electronics. The company also offers services to its customers such as iBook stores, App Store, iCloud and Apple Music among others. At the end of the year 2015, Apple Inc. recorded a total revenue of US$233.72 billion with a net income of US$53.4 billion, ranking it one of the most profitable organizations globally (Tetzeli, 2015).
This essay explores the management style and operations of Apple Inc. since it was started to the current day. The essay has seven key sections in which the introduction and the essay structure are provided in the first section. The two key changes in Apple’s management style are discussed in the second section. The third section explores the senior management’s role in preparing the company for its most recent change. The management’s decision on its use of vendors and spokesperson is discussed in detail in the fourth section. Further, the innovative idea that can have a positive impact on both Apple’s employees and customers is explained in the fifth section. The sixth section discusses Apple’s ability to adapt to the changing needs of customers and the market environment. A comprehensive summary is provided in the last section.
Since its inception, the Apple Inc. has been led Steve Jobs, who was considered as a legendary leader in the world of business till 2011 (Lashinsky, 2015). Till his death, he embraced the culture of innovation within the company, and each employee was given an opportunity to showcase what could bring Apple to greater heights of success. The culture of innovation has remained the central part of Apple since its inception (Tetzeli, 2015). For instance, the culture of innovation is considered as one of the key changes that have made Apple Inc. to be an innovation icon in today’s electronic business world. For instance, in the past three years, many articles both online and print have ranked Apple Inc. as the leader in innovation when compared to its key competitors such as Samsung, Huawei and Nokia among others (Tetzeli, 2015). The introduction of the culture of innovation in Apple's management style has not only ranked the company as an innovation icon but also ensured that the company records attractive net earnings.
The unique financial performance of Apple has played a significant role in increasing the level of trust among the existing and the potential investors (Haslam et al., 2013). The other key change in the Apple's management style is the displaying more responsibility towards the society and employees. This shift in the management philosophy was introduced by Tim Cook, who is the current Chief Executive Officer, who replaced Steve Jobs in August 2011 (Lashinsky, 2015). Based on this new management style, the Apple Inc. ensures that the working conditions of the company both at home and overseas are improved to improve the level of efficiency in the company's operations. Additionally, the incorporation of social responsibility in Apple's management has ensured that the company has reduced its environment impact in the oversea countries where it assembles its products.
Despite the criticism of Cook's approach in management to recognize employees and environmental needs, I believe that Apple Inc. is headed in the right direction. For instance, there is a need to recognize and improve the working conditions of employees because they are the greatest assets of the company (Lashinsky, 2015). Similarly, having in place management strategies to reduce environmental impact is essential in the current and future business operations. Additionally, the culture of innovation is critical to ensuring that Apple remains competitive in the current high-tech business environment. Therefore, it is my opinion that the two key changes to Apple's management style are geared towards increasing the company's competitiveness in the current and future marketing environment.
Senior Management’s Role in Preparing Apple for its Most Recent Change
As noted by Hitt, Ireland & Hoskisson (2012), management of any entity plays a significant role in preparing an organization for change. The Apple Inc. is not an exception because management has always played an essential role in preparing for change. The most recent change at Apple Inc. is the introduction of the leasing program for the iPhones in the United States of America (Lashinsky, 2015). The leasing program for the iPhones within the US was meant to ensuring a close relationship between the Apple consumers and the company. Further, the introduction of the program aimed at making it easy for the customers to upgrade and change their iPhones with any authorized Apple store. The merit of this recent change is that customers will now be able to deal directly with the company whenever they want their products to be updated. Additionally, the progress will block the middlemen from charging huge fees for updates.
Therefore, this program will go a long way in helping the Apple Inc. in controlling its relationship with customers. However, to achieve this Change, Tim Cook had to prepare its employees for the change. For instance, the management introduced specialized employee training program to continue equipping its staff with the current changing innovations and technologies (Lashinsky, 2015). By doing this, management ensured that its employees at any Apple store points are well equipped to help customers when updating their iPhone devices. Regardless of the resistance to change, workers showed higher levels of cooperation and the program was a success. In future, the company is considering to introduce leasing program for Apple devices to increase the level of consumer control. Therefore, the transition was seamless, and the company may opt to introduce similar changes to oversee markets.
Management’s Decision on its Use of Vendors and Spokespersons
According to Segall (2012), vendors and spokespersons are among the key parts of an entity and to a greater extent they influence the success of the organization. For instance, the spokesperson is an individual who represents the company in matters related to the company's progress, financial performance, the launch of the new products and other related issues. On the other side, the vendor might be an individual or company in the supply chain that provides the necessary materials to the company to produce its final products.
The vendors and the spokesperson must both act in the interest of the company. For instance, Apple Inc. expects that its suppliers adhere to corporate social responsibility and adhere to environmental conservations measures and laws. Just like the big corporations in the US such as the Hewlett Packard and Intel, Apple has embarked on training programs to ensure that its suppliers are keen on reducing environmental impact and adhere to positive corporate activities. Further, Apple expects its suppliers to extend more social responsibility to employees (Segall, 2012). The suppliers are directed to adhere to practices that ensure a conducive working environment for the employees. The more social corporate responsibility was introduced by the Tim Cook was is the current C.E.O of Apple Inc. To ensure that the companies are responsive to its measures, Apple decided to provide publicly a list of its suppliers. The listed suppliers are regularly audited, and the report is publicly published. This exercise helps in ensuring that the supplier companies reduce their environmental impact and provide a conducive working environment for its employees.
Additionally, Apple made a decision of restricting its spokesperson from issuing statements publicly without proper guidance from management. This decision is meant to ensure that the spokesperson only issues verified and valid information about which management can respond to if requested to do so by the public or government authority. The decisions on directing the vendors and the spokesperson impact positively to the Apple's operations (Segall, 2012). For instance, the suppliers or vendors of Apple must strive for attaining the required working conditions and also work towards reducing the environmental impact. Such efforts are critical to improving Apple's overall corporate image.
Innovative Idea that can have a Positive Impact on Both Employees and Customers
The employee and customer are among the key pillars of any entity. Therefore, ensuring that both employees and customers are satisfied is one of the key steps in ensuring that the company achieves the short-term and long-term goals (Hitt, Ireland & Hoskisson, 2012). Satisfactory is not only linked to related financial incentives but also the sense of belonging and free communication.
As a manager at Apple, the most lucrative and innovative idea I will introduce to benefit both employees and customers is building a platform that that cultivate trust through open communication. Currently at Apple, there is no mechanism aimed at rewarding customers who provide helpful feedbacks that help management to rethink its innovation strategies. The open communication platform will provide both employees and customers an opportunity to propose adjustments or improvements to the current devices. The program will reward employees and customers who engage management on how the current devices can be improved to increased customer satisfaction. The rewards on the side of customers can be giving them free devices while the employees can granted promotions. To implement this innovative idea, I will encourage the company to introduce an application it its current website that can record the contribution made by each employee or customer. The innovative team at the company will keep on reviewing and evaluate employees and customers feedbacks. In the process of evaluating and reviewing feedbacks, the innovation team will select those employees and customers who have contributed beneficial information to the improvement of Apple's products. Therefore, customers and employees are likely to benefit from this innovation.
Apple’s Ability to Adapt to the Changing Needs of Customers and the Market Environment
Change is inevitable, and each entity must be prepared to adapt to the changing environment and customer needs. At Apple Inc. the company is likely to adapt the future changes in technology because it has already cultivated the culture of innovation among its employees. At App Inc., each employee is given an opportunity to participate in innovative activities (Segall, 2012). The company has also put in place mechanisms such as research and development using high-tech equipment to ensure that the changing customer tastes and preferences are incorporated in both the current and future Apple devices (Lashinsky, 2015). The company has also put in place open communication channels where employees and customers freely air their views regarding the company’s management, customer services and the quality of its products. More importantly, the implementation of the effective communication channels will continue helping the company to achieve the anticipated and the unseen changes. Through efficient communication, employees can be notified the reason for the change and its benefits to employees, customers and the organization at large. Therefore, it is evident that Apple Inc. is ready to adapt any changes because it has put in place mechanisms that will ensure a smooth transition.
Conclusion
Apple's management style to incorporate the culture of innovation has been key to ensuring the organization success. Additionally, the shift of management to a more socially responsive style has helped the company in ensuring that the employees are provided with the best working conditions. Similarly, the introduction and continuation of the employee training programs at Apple have helped the company to adapt to the recent changes such as the leasing program for the iPhones in the US to improve customer relationship. An interactive communication platform can be a lucrative idea that can benefit both the customers and the employees if well implemented.
References
Capozzi, M., Kellen, A., & Smit, S. (2012). The peril of best practices: Should you emulate Apple? Mckinsey Quarterly, (4), 8-11.
Haslam, C., Tsitsianis, N., Andersson, T., & Yin, Y. P. (2013, December). Apple's financial success: The precariousness of power exercised in global value chains. In Accounting Forum (Vol. 37, No. 4, pp. 268-279). Elsevier.
Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
Lashinsky, A. (2015). No. 1 Becoming Tim Cook. (cover story). Fortune, 171(5), 60-72.
Segall, K. (2012). Insanely Simple: The Obsession that Drives Apple's Success. Penguin.
Tetzeli, R. (2015). The Real Legacy of Steve Jobs. Fast Company, (194), 70-76.
