Organizational Structure Analysis Apple Inc.

Organizational Structure Analysis of Apple Inc.

1. Project Title – Organisational Structure Analysis Apple Inc. Prepared by - Anubhav Tyagi, Course Name - Organization Structure and Design Faculty – Dr. Anshu Sharma

2. Introduction – Apple Inc. Apple Inc. is an American  multinational   technology company. Apple was founded as Apple Computer Company on April 1, 1976, by Steve Jobs , Steve Wozniak and Ronald Wayne . Apple specializes in consumer electronics, software and online services. Apple is the largest information technology company by revenue. Apple enjoys a high level of brand loyalty , and is ranked as one of the world's most valuable brands .

3. Core Competency & Product market Distribution – Apple Inc. Apple's main core competency is innovation. They have a long history of developing unique and innovative technology products, including the Mac computer, iPod, iPhone, iPad, Apple TV, and Apple Watch. Even when it's not the first company to develop a new product, Apple is often the one that's able to take a new product, engineer it in a unique fashion, and make it an enormous commercial success. Apple implement multiple distribution channels including direct and semi-direct , company-owned stores and other authorised parties to distribute their products and services to their target customers and consumers.

4. Major organisational Change – Apple Inc. Steve Jobs was co-founder, chairman and CEO of Apple. Steve Jobs made every strategic decision that would affect the company. When Tim Cook took over in 2011 following Job’s resignation, Cook restructured the company, and part of this restructuring included changing how the company’s hierarchy worked. In 2011 Tim Cook took a more different path in his leadership of Apple. He introduced a different organizational culture that essentially was more inclusive, balanced and allowed the employees to contribute to the decision-making table. The current organizational structure adopted by Apple empowers employees allowing them to participate in the innovations embraced by the company entirely. Thus a significant impact of the organizational change in Apple was felt by the employees who now feel free to work without pressure. In turn, the leadership style adopted by Tim Cook has resulted in improved productivity and innovation.

5. Organisational Strategic Change – Apple Inc. Apple works on product differentiation strategy. Specifically, the multinational technology company differentiates its products and services on the basis of simple, yet attractive design and advanced functionality. Apple strategy consists of the following four elements: Focus on design and functionality of products. Enhancing customer experience. Strengthening Apple ecosystem. Decreasing dependence of the business on the sales of iPhones.

6. Organisational Structure Change – Apple Inc. Apple uses a company structure that is commonly known as “functional organization”. This means that the company has been organized around areas of expertise, rather than individual products. The products themselves are then worked on by individuals from across the different areas of expertise.

7. Organisational Cultural Change – Apple Inc. Apple Inc.’s organizational culture is a key factor in the continuing success of the business. Through the leadership of Steve Jobs and now through the leadership of Tim Cook, the company continues to enhance its cultural characteristics to maximize human resource support for business relevance in various markets around the world. Apple shapes its corporate culture and uses it as a tool for strategic management and success. The following are the main characteristics of Apple’s corporate culture: Top-notch excellence (No change) Creativity (Changed) Innovation (Changed) Secrecy (No change) Moderate combativeness (Changed)

8. Factors facilitated forces to change – Apple Inc. Internal: New Vision set for Innovation. Apple leaders needed changing work values, creation of new products and alternative work schedules. Independent decision making e.g. the finance team is not involved in the product road map meetings of engineering teams, and engineering teams are not involved in pricing decisions. External : Apple competes in markets where the rates of technological change and disruption are high . (Highly competitive market) Growing the overall number of customers across all of the company’s products, and increasing the number of products and services they use.

9. Factors Led to resistance/obstacles to change – Apple Inc. Internal: Reduced pressure on employees is a potential risk to the company’s reputation which was maintained during Steve Job’s leadership through power culture . New learning and disruptions of stable relations. No direct relation with top management. External : Threat to power structure Inertia of organizational structure Relationship with external stakeholders.

10. Organizational Change Management Strategy An organizational change management strategy is the process of outlining, planning and implementing steps to successfully roll out change across the organization. Below are the steps to implement strategy change effectively: Define Goals and Vision  Start from Upper Management  Ask for Feedback and Analyze  Build a Proper Roadmap  Prepare to Mitigate Risks  Communicate Effectively  Ensure Effective Training  

11. Organizational Structure Change Benefits – Apple Inc. The hierarchy organizational structure in Apple Inc supports robust control by the management . The control rests in the hands of the top leaders, and it ensures a quick decision-making process. An essential advantage of Apple’s organizational structure is that it makes it easy to control product-based groups and business functions through the decisions of its CEO as well as top leaders . Working with different types and mindset of people helps in improving the working style of the employees The company offers several incentives to its employees to encourage employee retention and job satisfaction

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