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Apple Inc. - World’s Leading IT Corporation

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Apple Inc. - World’s Leading IT Corporation

Apple Inc., formerly recognized as Apple Computer Inc., is one of the prevalent and most prosperous International technology organization that is based in America, with its headquarters in California. It was started on 1st April in 1976 by three individuals, namely, Steve Jobs, Ronald Wayne, and Steve Wozniak. It is the leading IT Firm in the globe on the basis of the revenue they generate and total assets, and it is the second leading mobile phone manufacturer. This corporation is responsible for designing, manufacturing and selling consumer electronics, computer software, and personal computers. In addition to this services, the corporation is also famous for its marketing services of various products such as movable digital melody merchandises. This syndicate also trades an array of associated software, merchandises, networking resolutions, as well as applications plus content that are owned by third parties (“Effect of Economic Environment and Apple Business,” 2013).

The company’s major hardware merchandises include (Martin, 2016): First is the iPhone smartphone such as iPhone 3G, iPhone4, iPhone5, iPhone 5S, iPhone 6S, iPhone7. Second is the iPad tablet computers such as iPad, iPad Mini, iPad Air and iPad Pro. Third is Mac personal computer such as MacBook, MacBook Air, and iMac. Fourth hardware product of Apple Inc. is the iPod movable media devices which encompasses iPod Nano, Shuffle and Touch versions. Other hardware merchandises include; Apple Smartwatch, Apple digital TVs and also HomePod digital speakers.

The company also has established some software which include: Operating systems such as MacOS and iOS, iTunes Media Player, Safari network browser and complements such as iLife (Apple & Li, 2007).

The company also has designed various applications such as the Final Cut Pro application, Logic Pro X version and the FileMaker Pro. There are also Apple Inc. Services which comprise of (Martin, 2016): iTunes Music and App Store, Apple SIM card services and iCloud.

Apple Inc. has developed a tremendously effective and efficient first rate supply chain, which has enabled it to execute massive product launches and quality services. Apple Inc. CEO Tim’s tag to define his concentration on the firm’s operational superiority is that “Not one person wishes to purchase bitter milk” (Laser, 2011). Tim Cook, views cheaper smartphones and tablets manufactured by other competitors, as posing no threat, branding such cut-rate products as a “rubbish market”. Apple Inc. always opts to offering more expensive, good quality products and services that are more superior in design and nature than these cheaper products being offered by other competitors. They employ a strategy called “great merchandise” which emphasizes on quality over amount- holding on to high standards of quality (Martin, 2016).

Apple Inc. bases some of its success in product and service delivery to its staunch opposition to the out-of-date concepts of what a business philosophy is supposed to look like in an hierarchy of an organization. Steve Jobs played a great influence in the support of this culture by walking around the office barefooted even after Apple had been recognized as a leading Fortune 500 firm. By 1984, this philosophy became a vital approach through which this IT firm endeavored to separate themselves from all their competitors (Alan, 2010). Reports in Fortune in 2011 stated that this had ensued to a company culture further affiliated to a small business instead of an international organization (Lashinsky, Adam, 2011). Apple is rather known for sternly imposing accountability, with each and every of its projects having a “Direct Responsible Individual” approach (Adam, 2011).

Key factors from Apple’s external environment that could affect its success

Apple being one of the most valuable corporation in the world, with a market capitalization of around $559 billion, faces several crucial factors in its external environment that can affect its success. The two major external factors that it faces are: Economic and Political factors (“Effect of Economic Environment and Apple Business, 2013). Below is an explanation of how this factors can either positively or negatively affect this company’s success rate;

Economic factors

Economic repression is one of the main problems that most companies face including Apple Inc. One key incident of a major repression that affected Apple was in 2008-2009 period which caused a dramatic decline in sales. The decline in GDP, which results to low income level of population could affect Apple in terms of reduced sales as people do not buy Apple products. For instance, in January 2009, the United States of America faced a decline in GDP growth rate, which in turn reduced people’s spending on Apple products. Another economic factor that could affect Apple’s future success is interest rates, for instance, if interest rates drop, consumer spending tends to increase thereby stimulating economic growth.(“Effect of Economic Environment and Apple Business,” 2013).

The ever unstable economic conditions which often lead to negative effects such as unemployment, spiking fuel costs, healthcare costs, and financial market volatility, cause consumer spending to decrease rapidly and credit markets to reduce their lending. This in turn could bring down Apple through reduction of its sales and revenues and also the instability could negatively affect Apple’s own hedge fund. The availability of cheaper products and services offered by Apple competitors could also undercut Apple’s business, whose high quality products are expensive, and sink the whole ship (Nicholas Carson, 2012).

Political factors

Regulations formulated by legislators have substantial impact on the price of starting and managing a corporate and its ability to market its merchandises. The Federal Trading Commission based in United States controls prejudiced competition and conducts investigations to any antitrust activities. This Commission monitors a company’s market shares and their legal performance. However, a case might easily be created against this corporation over its music distribution and movable music devices trade since the organization has over 70% in market shares. This could in turn bring down the Company, as it would sanction hefty penance by the Government (“Effect of Economic Environment and Apple Business,” 2013). Government protocols could also push the company to end lucrative business dealings, for instance, the government forcing Apple to trade only smartphone products that operate on several carriers (Nicholas, 2012).

Ways key stakeholders could influence Apple’s monetary performance

Investors have had greater effect on company’s commercial activity in the modern era as communal citizenship plus social obligation have become constantly incorporated with corporate management. Comprehending the impact of stakeholders in businesses is very crucial especially to the financial performance. This primary stakeholders may be employees, business partners or communities (Neil Kokemuller, 2007). Apple’s Stakeholders are usually granted power to make decisions that bring positive impact to the company especially when it comes to financial matters. They can exercise the below mentioned powers to influence the company’s financial performance (Lawrence & Weber, 2011):

Voting powers

This allows stakeholders to take part in voting process during the company’s annual general meeting. This includes voting on issues such as mergers with other business associates or organizations, acquisitions and voting in new board associates. They can vote also on crucial matters that tend to affect directly the financial performance of the company, for instance, implement organizational policies that are profit oriented.

Economic power

This power is exercised by clients, merchants and dealers. Clients can choose to exercise this power through boycotting Apple’s products and services by refusing to purchase them. Merchants or suppliers can choose to withhold supplies or decline to fill orders. Dealers, meanwhile, can refuse to sell Apple’s products and services.

Legal power

This involves suits that Apple would receive from stakeholders, possibly regarding products or services that may cause damage or harmful. For instance, a client suing Apple if one of their iPhone products would cause heart attack or cancer.

Political power

This involves pushing for regulations that determine how the organization performs its daily activities. This political power involves also voting for politicians who share same vision and mission in line with Apple Inc.

Informational power

This entails Apple Inc. disclosing confidential data to the public or to its competitors. This could be disclosing statistics such as annual revenues, where Apple may release their actual income, which the stakeholders may use to compare with that of other years and with competitors annual financial reports, and gauge their financial state, and places they need to boost their investments.

Controversial corporate social responsibility concern associated with your company

Apple has come under lots of criticism due to reports of unsatisfactory working conditions especially at Apple’s suppliers in China. This has included exhausting long working shifts, toxic compounds exposure and shocking and hazardous explosions that have led to some serious side effects and harm to the employees, as well as congested dorms (“Corporate-responsibility-spotlight-apple,” 2012).

References

Apple, J., & Li, L. (2007). U.S. Patent Application No. 11/509,054.