An American multinational company, Apple Inc., in the technology field has been in existence since 1976, providing quality products and services that have enhanced its performance. Its revenues and size have totaled to $265 billion in the 2018 fiscal year in which the company was ranked as the largest technology-based enterprise globally based on revenues. In phone manufacturing, Apple is ranked third behind Samsung and Huawei. Therefore, it is crucial to analyze Apple Inc. to comprehend its organizational structures and operations in depth.
Mission and Vision Statement
The mission statement of Apple Inc. is to enhance user experience to the customers through innovation on software, hardware and services in the market. The mission statement is tied to the company's vision that is based on the belief that the company is on earth to develop products great and of value based on the needs of its customers. The values of Apple are defined by quality, standards, principles and customs considered desirable to the organization and enhance quality delivery. The above provides the basis on which the company operates.
The business strategy of Apple is attributed to vertical integration through which the enterprise seeks to enhance its expertise in areas such as hardware, software and services. The above strategy has enabled Apple to become better equipped for the market and enhancing its competitive advantage. The objective of the company is to expand sales to capture new customers not using its products. The strategy through which the company has approached this is through the expansion of its distribution network. Using internet providers, flagship stores and third party retail stores have enabled Apple to make strides to achieving this objective.
Model of Adaptive Orientation
Deciding the model is based on two main areas of interest that include the environment and the adaptive orientation. Four models including satisfying management, renewing transformational management, sluggish thermostat management and reactive management. Apple relies on the renewing transformational management adaptive approach in which the company faces high orientation to adaption and a hyper turbulent environment considering rapid changes in technology. The environment in which Apple operates is highly change-oriented with changing customer needs and competition a motivating factor. Applying a SWOT analysis will lead to the identification of the internal and external attributes of the market in which Apple operates.
The increasing rate of change in the business environment has affected companies operating in technology-related areas such as Apple. Gupta (374) reveals that challenges associated with innovation, imitation and cost minimization are among the main problems faced by these companies. Presented in the SWOT analysis above, the problems faced by Apple are evident. Some of the challenges currently affecting the company as deducted from the SWOT analysis, therefore, include trade uncertainties in the market, corporate battles including Qualcom, meeting its predictions on unit sales amidst high pricing, planning to deal with the arrival of 5G networks and decline in the smartphone market.
Management of change in an organization is based on three main alternatives that include developmental, transformational and transitional changes. Each of the above alternatives affects how the organization approaches change also affecting the change outcomes. Looking at the challenges faced by Apple as revealed under the SWOT analysis section, it is evident that the socio-technical systems are affected. The socio-technical systems include coverage of five primary areas that include people, hardware, software, data and law and regulation as exhibited in the image below:
The change problems faced by Apple affect the three main attributes of its socio-technical system that include people, hardware and software. Under hardware and software, patent issues have arisen in Apple leading to the conflict with Qualcom. The planning of a 5G network is another change Apple needs to consider in addition to the trade uncertainties of the products and services that the company offers. In terms of people, the reception of the products and services offered by Apple is a factor of change based on the challenge this exhibits. Data on customer reactions to changes in the market would provide an ideal collection process. The main data effective for Apple is that communicating on the changes the company seeks to make in hardware and software. The above still encompasses the three aspects of the socio-technical system of hardware, software and people. Data is relevant as it affects the implementation of the changes in all the areas of hardware, software and people. Currently, Apple leads the market. Innovation however, provides an area of improvement necessary that will lead to an improvement in performance. Based on the above and the socio-technical framework elements, the transformational change is ideal as this keeps the company in line with the changing needs of its market, also enhancing the handling of competition factors. The transformational alternative provides a better change management approach for Apple.
Three basic approaches to change are behavioral, structural and technological strategies to change. The behavioral strategy focuses on the attitudes and values of the organization and the institution of new behaviors. The structural strategy focuses on structures and design also leading to the creation of new relationships. Technological strategy, on the other hand, implements a change in production and methods used by the company in addition to new processes. Looking at the above, the structural and technological strategies of the organization need to change interventions. The implementation of an intervention on technology will see the Apple products fit the changes in networks including the adoption of the 5G network. Also, prevention of patent infringement that led to challenges such as Qualcom emanates from failures in its structural and technological advancements. Structural changes, on the other hand, will improve the structures and design applied by the organization, further developing the ability to deal with trade uncertainties. The improvement in the structures will also enhance the meeting of the company unit sales predicted. Also, technological improvement strategies as an alternative will ensure help in lower costs that will improve pricing to match the market level. However, the possibilities of the quality attributes leading to higher pricing are also evident with the target market easy to satisfy using these. The last suggested strategy alternative by the company include the behavioral strategy in which changes in attitudes and values of the organization are targeted. Despite this having an impact on the behavior of the employees, it is not a priority area of focus. Therefore, the structural and technological strategies are identified as the main approaches desirable to deal with the problems associated with Apple in its quest to retain market control and dominance in technology.
Final Recommendations and Summary
Considering the three alternatives suggested in the section above including behavioral, technological and structural change strategies, the latter two are selected. However, of the two, the technological strategy is the main alternative that would provide an improved end effect on the company as this will solve the bulk of the problems also enabling Apple to anticipate future challenges in the same area. The suggested alternative is also considered effective as it will encourage research with the installation of robotics in future providing an approach to enhance performance.
However, like any change process, there is a possible risk of resistance from the employees. Engaging the employees on all stages of change will enhance the results. Training provided to them will also reduce their participation gap in implementing change hence further leading to the attainment of the company objectives in the elimination of the challenges revealed by the SWOT analysis. Conflict mitigation strategies will however, prove important as any possibilities of conflicts may lead to failure in attaining the company objectives. Also, engagement by the employees is possible through informed participation that will enhance better contribution. Implementation of both intrinsic and extrinsic motivational elements will further lead to better employee engagement. From the above, the possible transformation of Apple will include better technology management strategies to ensure the company anticipates changes in the market and reacts positively to keep competitors at bay.
Gupta, Minisha. "Organizational Structure affected by the strategic change." International Journal Of Advance Research And Innovative Ideas In Education, vol. 1, no. 3, 2015, pp. 372-376. Accessed 14 Dec. 2019.
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