Apple Inc.
Apple Inc. (Apple) is currently one of the leading innovator and mobile device provider.
Headquartered in Cupertino California, it develops around 57 products, services, networking
solutions, third party digital content and application among which major products and services
include iMac (personal computer),MacBook (laptop), Xserve (server), iPad (tablet PC),
iPod (MP3 player), and iTunes (music down loading software). Apple’s success is attributed to
its Value Creation Process. This consists of Organizational Structure, Management,
Differentiation, Competitive, Marketing, Supply Chain and Product Development Strategy. This
Analysis will review further and go in depth on how Apple Inc. manages to remain successful.
In its early days Apple Computer Company’s Vision and mission was: “Man is the
creator of change in this world. As such he should be above systems and structures, and not
subordinate to them.” This is compared to its current Vision Statement under Tim Cook (Current
CEO):
We believe that we are on the face of the earth to make great products and that’s not
changing. We are constantly focusing on innovating. We believe in the simple not the
complex. We believe that we need to own and control the primary technologies behind
the products that we make, and participate only in markets where we can make a
significant contribution. We believe in saying no to thousands of projects, so that we can
really focus on the few that are truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us to innovate in a way
that others cannot. And frankly, we don’t settle for anything less than excellence in every
group in the company, and we have the self-honesty to admit when we’re wrong and the
courage to change. And I think regardless of who is in what job those values are so
embedded in this company that Apple will do extremely well. (Rowland)
and its current Vision Statement:
Apple designs Macs, the best personal computers in the world, along with OS X,
iLife, iWork and professional software. Apple leads the digital music revolution
with its iPods and iTunes online store. Apple has reinvented the mobile phone
with its revolutionary iPhone and App store, and is defining the future of mobile
media and computing devices with iPad. (Rowland)
Apple’s Vision and Mission Statement continues to motivate its teams to supports and contribute
to innovation for the competitive advantage. The growth in the Vision and Mission Statement is
a direct symbol of how action towards growth and product development is what ensures the
company’s ongoing success.
Brief History
College dropouts, Steve Jobs and Steve Woznia founded Apple Computer Company known
today as Apple Inc. in Job’s garage on April 1, 1978. Some would argue Ron Wane should be
mention as a founder as well, but he sold his part of the company back to Jobs 12 days after
signing his contract (Darren) The dropouts universally changed the way the world viewed
computers and ultimately accomplished Steve Job’s goal of “Building a ‘micro–computer’ that
was small and simple enough everybody in the world would want to have one.” (Brashares 15-
20) It was not until the debut of Apple II at the West Coast Computer Faire in 1977, that the
Macintosh featured color graphics, keyboard, a power supply and casing (making it the first of
its kind). Once the Apple II came with VisiCalc (the progenitor of the modern spreadsheet
program) unit sales increased from 35,000 units in 1979 to 78,000 units in 1980. In 1979, Apple
initiated three projects in order to stay ahead of the competition: 1) the Apple III –their business
oriented machine, 2) the Lisa – the planned successor to the Apple III, and3) Macintosh. The
company finally went public in 1980 with roughly 1,000 employees. In 1985 Woznia left Apple
for good, during the same time Steve Job went after John Sculley (former PepsiCo executive)
who after a very persuasive pitch joined Apple as its next CEO. This proved to be a very wrong
choice on Job’s part, Sculley helped organized the infamous boardroom coup that lead to the
firing of Jobs. This change didn’t last long. It would seem without Jobs Apple could not succeed
and was asked back in 1977. Jobs then became CEO of Apple, Inc. and introduced the iMac,
which sold 800,000 units by 1998. From that point on, the company did very well. Jobs and
Apple began introducing new, innovative products one at a time; the iPod was unveiled in 2001
and the iPhone in 2007. (Molina) All in all, Apple Inc. created computers “for the rest of us.”
Apple’s Value Creation Strategy
Organizational Structure
A well working organizational structure can create opportunities for business growth or
hinder its ability to expand and grow. Under Steve Jobs rein; Apple followed a traditional
hierarchy, where every piece of information was funneled through him. Now under Tim Cook’s
leadership some changes have taken place to suit market and industry demand. Apple still
operates under a traditional hierarchy but with a few new spins. Apple’s organizational structure
enables it to continue to be innovative. The most significant aspects of Apple’s Organizational
Structure are the Function-based grouping, Spoke-and-wheel hierarchy, and Product-based
grouping.
Traditionally there are two ways you can structure a business. You can build divisions that are
built around definite lines of business or you can build functional groups that are built around
exact kinds of expertise. Apple has chosen to gravitate toward the functional group style, which
is customary for a start-up but not for an organization as big as Apple.
Apple is extremely functional these days; According to the Apple website there is a
chief design officer and a senior vice president of software engineering and a senior vice
president of hardware technologies. This is not to be confused for the senior vice president of
hardware engineering. There are a few general senior executives such as a chief financial officer,
