Today, the company combines the functional and hierarchical structure instituted by Jobs with the somewhat more collaborative approach implemented by successor Tim Cook. Even Google which is known for its . The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter's Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Tim Cook is doing things a little different than Steve Jobs and both the company and its employees agree that the change is well needed. There are senior vice presidents and vice presidents for different outputs or products. The divisional qualities attribute to the item-based meeting inside Apple . Dont Strong Corporate Control. European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.10, No.11, 2018 36 be identified as formal organization. This structure positions Apple as an organization to address the specific product components the institution manufactures before launching them to Arthur D. Levinson. Centralization and Decentralization Centralization is the degree to which decision-making takes place at upper levels of the organization Decentralization the ability of lower level employees to provide input or actually make decisions. By 1997, Apple had been losing money for 12 years, and as a result, Jobs was bought back in to save the company from bankruptcy. The Uneasily Defined Organizational Structure of Apple Anna Windust MGT/230 January 20, 2013 Christi Monk The Uneasily Defined Organizational Structure of Apple Organizational structures have been used for centuries to help people within organizations to understand who holds authoritative roles and how it is ordered, who has certain responsibilities and how they are organized and executed, and . More recently, in Q2 2020, Apple overtook Microsoft as the worlds largest company by market capitalization, firmly establishing itself as the worlds foremost technology giant. Specifically, unlike many other large companies there is no fight between heads of product divisions at Apple for resources. The Porters Five Forces analysis of Apple Inc. determines that these competitors impose a strong force of competitive rivalry in the companys external environment. The iPhone stepped ahead of the competition with its revolutionary touchscreen; a world apart from the QWERTY keyboards of the era. Apples Organizational structure begins with the Board of Directors who oversees the Chief Executive Officer and other senior management in the competent and ethical operation of Apple on a day-to-day basis and assures that the long-term interests of shareholders are being served. The hierarchical organizational structure of Apple Inc. is characterized by product-based grouping which is divisional, inter divisional organization which is weak functional matrix followed by traditional features to suit the business. Formalization is how standardized an organizations jobs are and the extent to which employee behavior is guided by rules and procedures. field, click the down arrow to select an organization. Moreover, promotion opportunities motivate employees to perform well and there are clear levels of authority and responsibility. The individual divisions all enjoy enough autonomy to enable them to perform at their very best, leading Apple to have created some truly market-leading products over the years. Hierarchical organizational structure. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. Apples Post Jobs Org Chart, Retrieved From http://mashable.com/2011/08/25/apple-executive-profile/. By continuing well However, Tim Cook has already made slight improvements by increasing collaboration among various parts of the firm. The products themselves are then worked on by individuals from across the different areas of expertise. In January 2014, Apple announced its quarterly income being 57.6 billion dollars and share earnings being 14.53. For example, Apple has a senior vice president for retail, and a senior vice president for worldwide marketing. Apple has a traditional hierarchical structure with product-based grouping and some collaboration between divisions. Hierarchy typically prevents lower levels of the structure to flexibly respond to current business needs and market demands. With all the resources they exhaust developing their mobile devices they cannot afford for them not to do well once they are put on the market. Currently, Apple organizational structure has the format illustrated in figure below: Generally, Apple corporate structure has the following characteristics: 1. The expertise-focused hierarchy system that Apple has implemented within their organization means that they enjoy strong corporate control. Previously, the company followed a very conventional structure, where the company was divided into its business units and each one of those business units had their own financial responsibilities. In order to explain the concept of a good organizational structure, two organizations are chosen for comparison and analysis, which are the Apple and Microsoft company. Apple Inc. maintains an intensive and effective collaboration between various groups and divisions of the company. Steve Jobs Organizational Structure 1045 Words5 Pages Organizational Structure and Best practices in Planning and Staffing The organizational structure of Apple Company was created by Steve Jobs. The most conspicuous management in the Apple Inc. revolves around innovation culture. A strong organizational structure is needed for a company to be successful. Actually, it started as a two man company - Jobs and Wozniak. On the negative side, Apples hierarchical organisational structure may compromise flexibly of the business to reflect changes in the global marketplace. Marengo, L., & Pasquali, C. (2012). Apples Biggest Marketing Secret was Revealed In Federal Court Business Insider, Retrieved from http://www.businessinsider.com/apples-biggest-marketing-secret-just-got-revealed-in-federal-court-2012-8, Lashinsky, A. How Apple works: Inside the worlds biggest startup CNN Money, Retrieved From http://tech.fortune.cnn.com/2011/08/25/how-apple-works-inside-the-worlds-biggest-startup/, Poletti, T. (2011, January 18). Theoretically, hierarchy empowers top leaders like Tim Cook to control everything in the organization. Product managers (vice presidents) report to the senior vice presidents. Such a structure has been developed by its founder and former CEO late Steve Jobs in order to ensure focused realization of his innovative ideas and clear vision for the business. Apple based its operations on . Just talk to our smart assistant Amy and she'll connect you with the best Therefore, executives at Apple are made to take a holistic approach to the business, similar to small entrepreneurial firms. The company organizational chart can be made of all four organizational charts because Macdonald's has departments working globally, and a company like this usually works cross-functionally. Throughout this essay I will show you how Apple has become one of the greatest and most prolific corporations in the world not only by having a distinct organizational structure, but through employing people who embody the type of characteristic traits that are immeasurably essential to the success of Apple as a company. Along with using the media Apple also relies a lot on product placement. Collaboration between different groups and divisions. cited as having responsibility for special projects and will report directly to Tim Cook. Selecting Corporate Structure for Diversified Firms. Apple Inc. SWOT Analysis & Recommendations, Apple Inc.s Organizational Culture & Its Characteristics (An Analysis), Samsungs Organizational Structure & Its Characteristics (An Analysis), Amazons Organizational Structure Type & Characteristics (An Analysis), Apple Inc.s Generic Strategy & Intensive Growth Strategies, Googles Organizational Structure & Its Characteristics (An Analysis), Apple Inc.s Mission Statement and Vision Statement (An Analysis), Apple Inc.s Marketing Mix (4Ps Analysis), Samsungs Mission Statement & Vision Statement (An Analysis), Apple Inc. Operations Management: 10 Decisions, Productivity, Apple Inc. Five Forces Analysis (Porters Model), Googles Organizational Structure & Organizational Culture (An Analysis), Harley-Davidsons Organizational Structure Analysis, Apple Inc. PESTEL/PESTLE Analysis & Recommendations, Sony Corporations Organizational Structure Pros & Cons, Samsungs Generic Competitive Strategy & Intensive Growth Strategies, Walmart: Organizational Structure & Organizational Culture, Samsungs Organizational Culture & Its Characteristics (An Analysis), Home Depots Organizational Structure Analysis. Considering a number of challenges faced by the company such as rapidly decreasing life cycle of technology products and declining sales of iPhones, iPads and Mac products, [1] it can be argued that Apple organizational structure may be subjected to certain changes in the medium-term perspective. Apple is a predominantly hierarchical organization. How Tim Cook is changing Apple CNN Money, Retrieved From http://tech.fortune.cnn.com/2012/05/24/apple-tim-cook-ceo/, Lashinsky, A. Registration number: 419361 Apple is an example of a type of centralized organization. Organizational Structure of Apple Inc. Impact of operational and culture in Apple Inc. to HRM As Apple does not have a hierarchical communication line and it emphasis on team structure, the human resource management is a tough task in Apple Inc. Organizational Structure In Apple's case, the organizational structure is in a hierarchical system. It might be devices such as the iPhone, iPad and Mac that are the first things that come to mind when you think of Apple, however it is their services that are the real money winners. submit it as your own as it will be considered plagiarism. Apple uses a company structure that is commonly known as "functional organization". Mr. Jobs was the brain of Apple, known for creating the Ipod touch, Ipad, Mac Book and an online store called Itunes. It wasnt until the launch of the iPod in 2001 and iTunes in 2003 that Apples fortunes began to truly turn. 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