Apple Inc. is one of the leading manufacturers of consumer electronics and software in the world. This company has its headquarters in Cupertino, California. Efforts of Steve Wozniak, Ronald Wayne, and Steve Jobs led to the founding of the company in 1976. As far as revenue accrual and consolidation is concerned, Apple is second to Samsung on the list of the world’s largest Information Technology (IT) firms. Apple Inc. has achieved a lot of success since its foundation, posting a net income of $38 billion in 2013 Heracleous (2013). Despite all the success and glamor, the company has also experienced some internal mishaps and setbacks, which have deterred its optimum performance.
First, the aspect of internal communication affects Apple significantly. In an organization or company, communication among the various members of the workforce is pivotal to ensure optimal performance. It helps to inform the workers about the goals and objectives of the firm and the plan or strategy which will ensure that they are achieved (Dormehl, 2012). Proper communication within the company also helps in the creation of interpersonal relationships, an integral part of organizational culture. Apple Inc. has a secretive approach to the public where most of the plans are hidden from the public. According to Luke Myrmingos (2013), the same strategy exists inside the company where the activities that are conducted in one department are not revealed fully to the others. This limits the ability of the employees to work together as they seek to achieve the company’s goals.
The second factor that affects Apple Inc. is concerned with the company’s structure. This refers to the way that the departments in a firm are sorted out and arranged. A firm may also structure its workforce in a manner that the employees are allowed to work efficiently with external contractors (Dormehl, 2012). Apple Inc. prefers a more ‘in-house’ structure, which limits interaction and collaboration with other companies. This ensures full control of the end-product that is manufactured by the corporation. It also leads some easiness in the correction of any anomalies that may occur during the design and production phases of a product. However, this approach has its fair share of demerits, which include failure to take advantage of external technologies (Myrmingos, 2013). This disadvantage makes the company lag behind if compared to its competitors who operate in the same industry.
Economic factors also play a role in determining the operations of an individual company or organization. They usually have a direct relation to the manner that the company conducts and manages its financial resources. The allocation of resources and sourcing of funds is considered to an integral determinant of a firm’s success in the market. Apple Inc. boasts of sound leadership as far as finances are concerned (Heracleous, 2013). This has led to the development of the company over the years while maintaining profitability and financial stability. In 2013, Apple Inc.’s total assets stood at $ 207 billion, which was a 12% increase from the numbers posted in 2012 (Myrmingos, 2013).
Nonetheless, Apple’s financial management team has made some mistakes in the past that include the illegal issuance of stocks in the company between 1997 and 2001. This led to a fall in the value of the company’s share by 3%, causing losses to various shareholders. A probe, which was conducted to investigate this issue in 2006, discovered the problems and Apple’s management was quick to act and restore the firm’s glory and profitability. Measures taken included a public relations (PR) campaign, which saw Steve Jobs apologize to the shareholders and Apple’s customers for the mishap.
Dormehl, L. (2012). Different Thinking: Steve Jobs, the Counterculture and How Apple Inc. took Over the World. London: Virgin Books.
Heracleous, L. (2013). Quantum Strategy at Apple Inc. Organizational Dynamics, 42(2), 92-99.
Myrmingos, R. (2013). Apple, Inc. Strategic Management and the Global Environment: A Case Study for Lewis University, Romeoville, IL (2nd ed.). Lexington, KY: Apples, Inc..
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