Strategic #3

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Section 2 = Discussion Questions.

Questions(7 Marks)

Discuss the following questions:

1. Is the evaluation and control process appropriate for a corporation that emphasizes creativity?

Are control and creativity compatible? Explain. - Max 300 words(3 Marks)

2. How can corporate culture be changed? Give examples. Max 250 words(2 Marks)

3. How is the cellular/modular structure different from the network structure? Give at least three differences. – Max 200 words(2 Marks)

Answers:

Section 1 = Part 3 of project

1.

Apple Inc. It is a company with a wide range of products that includes mobile phones, computers,

tablets, TV products and wearable devices. Apple customers strive for aesthetically beautifully

performing products and provide a guarantee that the product will be of high quality. Apple Inc. was

founded. In 1976 as a software and computer company. Since then, Apple has gone on to create other

technology devices and built a chain of retail stores in order to provide its customers with a better

buying experience. Apple is competing in a very competitive industry with high purchasing power

bargaining. Apple takes these facts into account when designing new products and when deciding on

pricing. They should always stay ahead of their competitors in innovation as well as keep up with

them in terms of prices. Apple differentiates itself by providing both hardware and software in all its

devices. They also try to keep their designs simple, easy to use, coherent and aesthetically pleasing.

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The company also benefited from selling other products such as Apple watch and mac. These

products have also contributed significantly to the company's good performance by increasing

revenue. The Mac was released at the end of the last

In 2015 with new and cool features caught the attention of tech fans around the world. This means it

has a lot of potential to do better this year. This could drive up revenue for this product and forecast

good results for 2016. Research and development are vital to any company’s performance because it

helps provide customers with a new product that increases sales and maintains market share.

Apple has the highest level of operational efficiency, which means that it works at the highest levels.

Inventory turnover is the most important indicator of performance because it shows the rate at which

Products are bought from shelves. Apple is moving its products at a faster speed compared to the rest

of the companies. This could be the reason for the company's good performance.

Apple uses five performance indicators as part of a comprehensive approach to its long-term

performance plan. This includes customer satisfaction, core competencies, employee commitment

and alignment (through a comprehensive employee survey), market share and shareholder value.

In the world of technology, it may be difficult to archive the performance appraisal of similar

products. Each product has its own unique designs, yet they all accomplish the same tasks. Standards

tests can be used as a measure but not reliable because companies can amplify results to make their

products appear more applicable. Therefore, the actual performance of the product depends on the

user's needs and how much they want to pay for some additional RAM or memory space.

(Investopedia.com)

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2.

Apple Inc. With a hierarchical organizational structure, it has outstanding partitioning properties and

a weak functional matrix. Hierarchy is a traditional structural feature of business organizations.

Section properties refer to product-based grouping within Apple, such as iOS and macOS

A comprehensive and diverse workforce drives innovation and makes Apple stronger. This is why

they are committed to hiring more diversified talents for jobs at all levels, attracting candidates from

more diverse pipelines, leveraging technology to prevent bias, and driving development efforts to

increase representation in leadership across the company.

3.

Apple is constantly inventing more efficient ways to recycle materials into devices. Also replacing

fossil fuels with renewable energy. And go further to minimize impact with safe materials for people

and the environment. It is a big challenge.

• All Apple offices, retail locations, and data centers are 100% renewable.

Chemical beaker

Eliminate harmful chemicals such as mercury, brominated flame retardants, PVC, phthalates and

beryllium from our products.

• More than a million acres of forest in China are under improved management now thanks to

Apple's efforts

To tackle climate change, Apple has reduced its overall carbon footprint by 35% since 2015. This

considers hundreds of suppliers and millions of customer devices. All facilities worldwide are now

100% renewable. And helping others do the same, by finding ways to bring renewable energy to

emerging markets and work with local utilities to provide renewable energy for all.

Some of Apple's most innovative ideas are geared towards building products with recycled and

renewable materials, making sure these products last if possible, and restoring everything we can

when they reach the end. By maintaining material handling, we are about to end our dependence on

mining. And when nothing is lost, this will be true.

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• All wood fibers in the Apple packaging are made from recycled or renewable sources.

• Daisy, the disassembled robot, recovers traditional recycled materials, such as rare earth elements,

tungsten, and Apple aluminum alloys.

The use of recycled tin in Apple devices, including welding the main iPhone logic board, will

prevent us from extracting approximately 29,000 metric tons of tin ore in 2019.

4. Apple's competitive advantage is its control over software, hardware, retail strategy, product

differentiation and, most importantly, strategic decision-making for the Steve Job. As for the

distribution system, Apple launched a website for direct sales for the first time.

Apple's competitive advantage is its control over software and hardware, retail strategy, product

differentiation, and most importantly, strategic decision-making for Steve Job. As for the distribution

system, Apple launched a website for direct sales for the first time. Apple has also spent more money

researching and developing it. Apple's current competitive advantages can be linked to its primary

competitive advantage because nowadays the user appreciates the user experience just as the Mac

system was initially introduced (Bajg, 2012).

Apple's competitive position in smartphones

Steve Jobs launched the first iPhone and began making smartphones. Apple's share of the smart

phone market is high. Over 2 billion apps downloaded from the Apple iPhone app store. Apple's

mission is that iPhone improves with every new app. Apple is constantly doing a great job improving

the iPhone with new features and capabilities. Also, Steve Job worked great with I Tunes and iPod.

Now it does this with the iPhone. Apple iPhone has created a new category of phones. Apple

invented the market and another mobile phone maker is chasing Apple. The main Apple competitors

are Google Android, Nokia and Blackberry. Apple provides the best services on iPhones (Bajg,

2012).

iPad is Apple's batter after lending iPhone and iPod technology. iPad is the best way to experience

the web. It has revolutionized traditional methods of surfing th e Internet. Full pages are displayed

in portrait or landscape mode on the large multi-touch screen. It also handles checking email and

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sending emails as well. It is also the largest cookbook in the world. iPad storage is very cool and

has a big screen. It is also easy to access different books from iPad. iPad is used in business,

education, health and consumer use. So the iPad is very useful in different areas. And the demand

for it will increase in the coming days. As now, today's consumer wants more comfo rt and

mobility (Aquino, 2012).

According to Rich (2012), iPad mini is another great product that Apple launched. It has a smaller

screen compared to iPad. iPad is cheaper than iPad. The reason for its cheapness is that it does not

have a retina width. iPad mini is lighter and thinner than iPad. Also, it has a less powerful

processor and uses a nano chip. It has fewer functions than iPad. But due to its size and thickness,

it is very easy to keep it in the pocket. In the future, it will be very useful to pe ople to some

extent.

Section 2 = Discussion Questions. 1.

Apple.inc is known for its creative pursuits and has been a well-known organization for providing

the best innovative technology-based creative solutions. Evaluation and control are mandatory for

any organization’s success, as it guarantees time-bound success and performance, especially in the

current competitive environment, where technology cuts are the order of the day. Hence Apple Inc

also requires the evaluation and control process, but the implementation method must be different for

different employee levels in the organization. The rank and file staff can undergo the traditional

evaluation and control process because everything that is measured is done at these levels. Whereas,

the technical design team should have the evaluation and monitoring process at two levels - first as a

self-motivated evaluation and monitoring process at the individual level in addition to a secondary

level of evaluation and monitoring process started by a team working on a particular innovation.

Creativity and control are compatible because any creativity that is not appreciated or does not

provide value impedes further creativity. In general, control is considered to spoil creativity, but it is

only true in cases where control is not done properly. Control leading to subtle management often

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impedes creativity. Control really stimulates creativity. There are different types of controls, and if

you create a self-control process that works best. Apple culture can be changed by adopting self-control. The company's vision and purpose must be

firmly embedded in the minds of employees and compatibility between individual and organizational

goals must be ensured. One that is immersed in the culture in minds, will approach individuals who

work in a team as they share common goals. Steve Jobs was the main driving force for cultivating a

culture of creativity, but he felt the organization lacked teamwork. Thus achieving goals

incompatibility between individuals, teams, and organizations will enhance the success of Apple Inc.

2.

Apple Inc.’s organizational culture is a key factor in the continuing success of the business. A

company’s organizational or corporate culture establishes and maintains the business philosophy,

values, beliefs, and related behaviors among employees. This business analysis case shows that

Apple has a corporate culture that enables human resources to support various strategic objectives.

For example, the company’s cultural traits are aligned with the drive for innovation, which is a major

factor that determines business competitiveness in the information technology, online services, and

consumer electronics industries. Based on the organizational culture, this business condition

facilitates the fulfillment of Apple Inc.’s corporate mission and vision statements. 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.

Through its corporate culture, Apple Inc. strengthens its competitive advantages against other firms

in various industries. The company competes against information technology firms like

Samsung, Google, Amazon.com, Dell, Lenovo, Sony, and PayPal, as well as IBM and Intel. These

competitors impose a strong external force that influences strategic management among firms in the

industry, as illustrated in the Porter’s Five Forces analysis of Apple Inc. As a result, cultural traits

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must reinforce necessary competitive advantages through the workforce. The company partially

achieves this strategic objective through its organizational culture.

Apple Inc. owns Organizational culture for creative innovation. The company's cultural features

focus on maintaining a high level of innovation that involves creativity and a mindset that challenges

conventions and standards. The work relies on cultural support and consistency, and is determinant

of competitiveness and industry leadership, especially in addressing aggressive and rapid

technological innovation and product development. Here are the main characteristics of Apple

culture:

1. Excellence is top-notch

2. Creativity

3. Innovation

4. Confidentiality

5. Moderate competitiveness

The finest excellence. Apple's organizational culture comes with only the best employment policy on

the job market. Steve Jobs was known to sack employees who had not met his expectations. This

tradition continues under Tim Cook. This tradition preserves, promotes, values, and values the

corporate culture and expects distinguished distinction among employees. This cultural feature has

been institutionalized at the Apple Foundation. For example, the company has programs that

recognize and reward employee remuneration. Excellence has been emphasized as a critical success

factor in business, especially in product design and development, which is a major growth strategy

(see Apple's overall strategy and intensive growth strategies).

creativity. This cultural property is related to new ideas that help to improve business and its

products. Apple management prefers creativity among employee knowledge, skills and capabilities.

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This characteristic of corporate culture enables the company to ensure adequate creativity, especially

among employees involved in product design and development processes. This creativity can be seen

in the design and features of the iPhone, Mac and iPad, among other products included in Apple's

marketing mix or 4Ps. In this regard, organizational culture helps maintain the company's ability to

meet customer expectations and preferences

innovation. Apple's organizational culture supports rapid innovation. The company is often rated as

one of the most innovative companies in the world. Based on this cultural aspect, the company trains

and motivates employees, to innovate in terms of individual work performance and contributions to

product development processes. The company's culture facilitates rapid innovation, which is at the

heart of Apple Inc.'s business .. Rapid innovation ensures the company continues to offer profitable

and attractive new products to its target customers.

Confidentiality. Steve Jobs developed Apple to have an organizational culture of confidentiality.

This cultural characteristic continues to determine the company's human resource development.

Confidentiality is part of the company's strategy to reduce theft of property or intellectual property

information. It is also a strategic management approach that enables Apple Inc. From achieving

maximum leadership in facing competitors. Through the corporate culture, employees are

encouraged and expected to keep business information within the company. This cultural feature is

strengthened by the company's policies, rules and employment contracts. In this context, Apple's

organizational culture helps protect businesses from mass espionage and the negative effects of

employee hunting.

Moderate fighting. Apple's organizational culture is characterized by moderate combat ability. This

feature is related to Steve Jobs and his combat approach to driving. He was known to randomly

challenge employees to make sure they have what it takes to work on Apple. However, under the

leadership of Tim Cook, the company changed the corporate culture to a more social and less

fighting culture. However, combat capability still has a major impact on business. Apple's culture

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demonstrates a moderate degree of combat ability that presents challenges designed to boost

employee productivity.

2.

Apple tries to increase market demand for its products through differentiation, which necessitates

making its products unique and attractive to consumers. The company's products are always

designed to be on the cutting edge compared to its peers. Despite the high competition, Apple

succeeded in creating demand for its products, giving the company authority over prices by product

differentiation, innovative advertising, brand loyalty, and the buzz around launching new products.

By focusing on customers wanting to pay more and maintaining an excellent price at the expense of

unit size, Apple has also placed a artificial barrier to entry to competitors.

Apple sells its products and sells third-party products in most of its main markets directly to

consumers and small and medium businesses through retail stores and online stores and its direct

sales force. The company also employs a variety of indirect distribution channels, such as third-party

cellular network companies, wholesalers, retailers and value-added suppliers.

Apple uses a retail strategy called “minimum advertised price” (or MAP). Minimum advertised

pricing policies prohibit resellers or dealers from advertising a manufacturer’s products below a

certain minimum price. MAP is usually enforced through marketing subsidies offered by a

manufacturer to its resellers.

According to a piece in Macworld, Apple maintains the popularity of its high-priced products by

only offering retailers such as Wal-Mart or Best Buy a marginal wholesale discount. This small

percentage in savings isn’t enough of a profit margin for retailers to offer big discounts on Apple’s

products, which means customers end up paying a price close to the manufacturer suggested retail

price (or MSRP). However, a retailer could give up this small profit margin and offer products at a

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discount to attract more customers. Apple prevents this scenario by offering monetary incentives to

retailers to sell goods at the MAPs fixed by the company.

This price strategy is effective insofar as it prevents retailers from competing directly with Apple’s

own stores, and it also ensures that no one reseller has an advantage over another. So, Apple is able

to keep its distribution channels clean as well as make more money on its direct sales. The Macworld

article further noted that iPhones weren’t under a strict pricing model, as they sold at a lower price

with wireless contract deals, as retailers gain a commission from carriers.

Cellular structure operates as separate teams or cells, especially seen in manufacturing organizations.

Each cell are specialized units. It is a latest concept of organization. While network structure

operates as a single unit of interconnected structures, where routine tasks are generally done.

• Cellular/modular structure operates as separate units, while network structures are a single

unit of interconnected relationships.

• Cellular units can work independently and also join with other units to work towards

common goals or to achieve a target. Hence, they are more flexible, while network structures are

complex interconnections and performs normal tasks as present themselves as facilitators

• Cellular Structures share specialized knowledge and resources, while network structures may

not exhibit specialized knowledge and resources and contributes their share of work rather than

contribute to the overall goal.

• Cellular Structures foster innovation, and mostly adopted by manufacturing organizations,

while network structures perform nonspecialized activities, and have a confusing network of

activities that are often observed in service organizations. Multitasking is observed in Networked

organizations.

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References:

• https://repositorio.iscteiul.pt/bitstream/10071/13973/1/MIM%20Dissertaion%20Eve%20Pino

-Cardoso%20Final.pdf

• https://www.apple.com/diversity/

• https://www.apple.com/sa/environment/our-approach/

• U.S. Department of Commerce – International Trade Administration – The Software and

Information Technology Services Industry in the United States.

• U.S. Department of Commerce – International Trade Administration – The Media and

Entertainment Industry in the United States.

• U.S. Department of Commerce – International Trade Administration – The Semiconductors

Industry in the United States.