DNA. Your email address will not be published. Moreover, the report contains analyses of Apple leadership, business strategy and organizational culture. The company has deviated from a typical corporate structure that was being practiced in most companies and implemented a unique method to manage its organization. To read the entire article, click here. 3.4 ANA LYSIS OF APPLE INCORPORATION’S ORGANIZATIONAL STRUCTURE Timothy Cook is the Chief Executive Officer who was appointed after the death of Steve Jobs in 2011 (Fortune, 2011). The company is associated with several technological industries like computers, electronics, artificial intelligence, financial technology, etc. The multinational technology company divides its operations into the following product-based groups: Collaboration between different groups and divisions. The report also comprises discussions of Apple marketing strategy, ecosystem and addresses issues of corporate social responsibility. Earlier when the company was in the hands of Steve Jobs, all the major decisions related to strategic management had to be approved by him. Understanding Apple’s organizational structure, What is Blogger Outreach? Currently, Apple organizational structure has the format illustrated in figure below: Generally, Apple corporate structure has the following characteristics: Hierarchical organizational structure. The core competencies of Apple are robust. Moreover, promotion opportunities motivate employees to perform well and there are clear levels of authority and responsibility. I choose to write it on Apple because I believe Apple is the best example of organizational change. The authority and control of the project head, in this case, is limited, and they have to report every detail to the top management, which gives them the necessary direction and input to move forward. The main features of Apple’s various corporate structures are. Conclusion Organizational culture is a critical component in an organization that dictates the operations of employees. Apple will not fix the services it already has, or deliver on the promise of the services its hardware might yet enable, unless a new kind of organization is built around these services that has a fundamentally different structure, different incentives, and different rhythms from Apple’s device teams”. This element is taken from the divisional type of organizational structure where the vice presidents and senior vice presidents are appointed for various products or outputs. When Jobs returned to Apple, it was organized around products like a … Apple’s 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. As the org chart above demonstrates, Apple was always a company with one guy making all the calls. It is a large-sized company with an innumerable workforce that works in tandem under one head its CEO Steve Jobs, and after his resignation, the new CEO, Tim Cook. The old combative culture has now been replaced with a culture of collaboration and Cook wants this s… Apple has established a culture of innovation and diversity in America. The hierarchy organizational structure in Apple Inc supports robust control by the management. To be more specific, elements of matrix organizational structure and divisional organizational structure may be integrated into Apple Inc. organizational structure to a greater extent to increase the efficiency of new product development practices. Apple wants to … April 4, 2019. Despite these changes, the company has a spoke-and-wheel hierarchy system with the new leader Tim Cook at its center. Let's stay in touch :), Your email address will not be published. Similar in style to the traditional pyramid, this org chart replaces the hard-edged … It is the organizational design that lays the groundwork for developing and managing an effective organizational structure. In this system, it is the responsibility of the top management to determine the direction the project is going to take. During Steve Job’s time, the company adopted an autocratic leadership style where the CEO or the leader was entrusted with micro-managing every operation. The vice precedents have now more powerful and can make autonomous decisions that were not possible under the earlier management. A round org chart. Offer good for 3 months after eligible device activation. Internet Software and Services. You will find product-based divisions in the upper and lower tiers of the corporate structure of Apple Inc. With time and under the new leadership of Tim Cook, the company has made some small changes in its organizational structure to meet the changing demands of industry and the global market. Its public offering in December was the biggest since 1956, when the Ford Motor Company had gone public. Late Apple chairman and CEO, Steve Jobs is widely perceived as unconventional leader who was able to rally various stakeholders of the company for his vision and at the same time “demanded excellence from his staff and was known for his blunt delivery of criticism” (McInerney, 2011).According to Harrison’s Model of Culture (1972) Apple organisational culture when Steve Jobs was in charge can be classified as a power cult… Nevertheless the structure remains to be largely hierarchical. Apple’s organizational structure begins with when Apple was a one-man company. The present Apple management hierarchy is elaborated on below: Board of Directors: The control rests in the hands of the top leaders, and it ensures a quick decision-making process. In functional structure, people are grouped on the basis of their common expertise, experience and resources. Apple Inc follows a hierarchical organizational structure where there are few layers of management. Furthermore, in hierarchical organizations communication across different departments tends to be less effective than in flat organizations. Apple TV+ is $4.99/month after free trial. The organizational structure of Apple Inc encourages effective and quick strategic management process and its implementation that results in establishing a coherent thought process throughout the organization. An unconventional org chart for an unconventional organization. Apple Inc. (Apple) is an overall innovation organisation that enhances new items and administrations while having ecological practices at the top of the priority list. In the case of Apple Inc, there are senior vice presidents for several outputs like Hardware Technologies, ( hardware components) Hardware Engineering ( iPhone, iPod, iPad, Mac) and Software Engineering (macOS, iOS). Specifically, Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage innovation and creativity at various levels. Apple Card is issued by Goldman Sachs Bank USA, Salt Lake City Branch. Apple Inc. maintains an intensive and effective collaboration between various groups and divisions of the company. Available at: https://investor.apple.com/investor-relations/sec-filings/default.aspx, Interpretivism (interpretivist) Research Philosophy, https://investor.apple.com/investor-relations/sec-filings/default.aspx. For instance, there is more collaboration amongst its departments, like the software team is in touch with the hardware team to consider each other’s inputs. The term weak-functional matrix about Apple Inc refers to the collaboration amongst the various departments or elements of the business. Apple organizational structure can be described as hierarchical. It was found in the year 1976 by its co-founders Steve Jobs, Ronald Wayne, and Steve Wozniak. Apple Inc. has extensively embraced the traditional organizational structure, in which the flow of authority is channeled from defined higher hierarchies to lower ones, or subordinates (Nonala & Kennedy, 1991, p. 68). This group includes App Store, ApplePay, iCloud, and Apple Music. The control rests in the hands of the top leaders, and it ensures a quick decision-making process. Bell and co-founder and Director of BlackRock Susan Wagner also serve in Apple Board of Directors. It is very hard to imitate … An organizational structure of a company includes an amalgamation of resources and workforce. 2005). You can follow me on Facebook. Apple Inc has created an organizational structure that encourages rapid innovation and technological advances. May 24, 2020 By Hitesh Bhasin Tagged With: Management articles. Organization or business has to have organizational structure in order to succeed because it prioritizes the hierarchy, identifies the guidelines, policies and procedures needed for a company achieve goals and objectives. The weak-functional matrix encourages collaboration between two teams of two different products or departments for the rapid innovation process. Most of its products are the result of its product-based group strategy. The reason for this examination was to look at the organisation culture of Apple. Its organizational structure involves top notch excellence, creativity, innovation, secrecy and competiveness. However, Apple’s focus on creating an employee friendly environment can bear fruitful results. An essential advantage of Apple’s organizational structure is that it makes it easy to control product-based groups and business functions through the decisions of its CEO as well as top leaders. By continuing your navigation, you consent to their use. 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. It was divided into business units, each with its own P&L responsibilities. It gives its top leaders the necessary power to make crucial decisions. Each of those managers has their own unit comprising of team members who … Apple was a centralized business, similar to a single party or an authoritarian rule type because the all departments of Apple reported to Steve Jobs for approval. The benefits of Apple’s organizational structure are as follows-, The problems of Apple’s organizational structure are as follows-, I love writing about the latest in marketing & advertising. The organizational structure, in other words, is less rigid and a bit flexible. Concept, Explanation, Examples, Advantages, Disadvantages, 360-Degree Feedback – Definition, Meaning, Benefits and Weaknesses, Employee Relations | Definition, Meaning Importance and Advantages. The organizational chart of Apple displays its 154 main executives including Timothy Cook, Luca Maestri and Jeff Williams × We use cookies to provide a better service. This made product decisions easier. Apple Inc.’s organizational structure is collaborative in nature with the company’s CEO as the nucleus. It is this structure that creates opportunities for enhancing growth and development in the company. In the Harvard Business Review, Apple VP Joel Podolny, dean of Apple University, and Morten Hansen, a faculty member at both Apple University and UC Berkeley, have written an extensive examination of how Jobs refactored the company upon his return, and how Apple has built upon that structure ever since. Apple Inc has a board of directors in place that includes eight members belonging to a distinguished background. That required a deep cultural challenge which Tim Cook has vowed to bring about. It has started with a bit of a collaborative approach and is prepared to decentralize on specific issues. Apple's Board of Directors 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. It had an informal corporate culture that favored a flat organizational ad hoc structure and not the tall structure. Apple follows a vertical organizational structure, where the major decisions are taken by. Plan automatically renews until cancelled. Currently, Apple Inc is one of the most popular and valuable companies in the world, valued at over one trillion dollars and this is because of the organizational structure that has helped it to create the groundwork for an effective system. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Actually, it started as a two man company – Jobs and Wozniak. The secrecy, pressure and competition will remain there in Apple’s environment because they are a part of any technology giant’s organizational culture. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Other products. The innermost or upper-tier includes function-based grouping, and under it, the senior vice-presidents handle all the business functions and report to Tim Cook. The company faced intense competition because of its dynamic technology and innovation abilities. The company Apple Inc gives credence to effective and intensive collaboration between various divisions and groups in its organization. Functional versus divisional structures SWOT for Apple Organization Structure is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. Product-based grouping is an important feature of Apple organizational structure. Its corporate structure is effective in managing product components or specific products that the company deals with to serve its target customers. Apple Inc. Board of Directors consists of eight members with a solid leadership background in a range of industries. Apple organizational structure has been subjected to certain modifications since the leadership role was assumed by Tim Cook on August 2011. Apple organizational structure can be described as hierarchical. The organizational structure of Apple Inc shows very little flexibility. Edit this Apple org chart and add the new personnel with pictures and create your own one--You can edit this template and create your own diagram. Apple’s profits and size grew at a historic rate: by 1980 the company netted over $100 million and had more than 1,000 employees. Shop and Learn Taking into 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. 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. The organizational structure of the Apple Computers Company is mainly collaboratively functional structure. Even employees at Apple have little idea of how the company is organized. The organizational structure of Apple Inc believes in A-grade business performance to ensure leadership in its related industries. The analysis utilised a [1] Annual Report (2018) Apple Inc. Essay Apple Inc Organization Structure 1318 Words | 6 Pages. The Apple management hierarchy refers to the top tier management structure of the company. 10 Ways To Be Confident, Organizational Values – Definition, Meaning, Advantages, Organizational Climate Definition – Types and Characteristics. Organizational structure that keeps Apple “alive” is uniquely different than other multinational companies, but they still follow distinct rules of a well-function organization. Until 2011, co-founder Steve Jobs was at the top of the management hierarchy. The company encourages a multinational workforce, and this gives job opportunities to talented, As the organization is involved in many industries and products, the scope and opportunities for employees automatically increases, Working with different types and mindset of people helps in improving the working style of the employees, The company offers several incentives to its employees to encourage employee retention and job satisfaction. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. The hierarchy organizational structure in Apple Inc supports robust control by the management. Organizational structure of Apple during Steve Jobs. Product-based grouping. 10 Ways To Be Successful, Barriers To Entry: Meaning, Types, Examples, Definition Of Entrepreneur – Define Entrepreneurship, Flat Organizational Structure – Definition, Meaning, Characteristics, Advantages, How to be Confident? Creately diagrams can be exported and added to Word, PPT (powerpoint), Excel, Visio or any other document. These include Apple TV, iWatch, headphones, cases, displays, storage devices and various other connectivity and computing products and supplies. Massive size of the company that comprises 132,000 full-time equivalent employees globally necessitates the adherence to the hierarchical organisational structure. The employees and management at the Apple Company are categorized and grouped in accordance with their common experience, expertise, and resources. The answer goes back to Apple’s corporate structure, which, though fairly common for a startup, is extremely unusual for an enormous company. If Apple has to remain innovative, its focus must be on keeping its employees motivated. Under the new management, the corporate structure has seen some changes. It has been going from strength to strength in product design and creative innovation to improve its capabilities and boost competitive advantage in international markets. When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. The company was found in April of 1976 by Steve Jobs, Ronald Wayne and Steve Woznaik. An essential advantage … It does not approve of any quick or rapid changes without the approval of top brass, The hierarchy system prevents employees at lower levels to take part in any decision-making process, It is not possible to meet or implement sudden changes at the drop of a hat because the decision-making authority is only with the CEO or very few top leaders, There is a lack of transparency, and this is why information is not readily available, The unique corporate culture at Apple Inc has resulted in several cases where unfair, The organization believes and promotes work culture without giving relationships any preference or due, The employees are encouraged to work long hours, and this has a direct impact on their physical and mental well-being. One subscription per Family Sharing group. CEO Jobs was at the center of it all. (Indeed, by the end of 1980, Apple’s valuation of nearly $2 billion was greater than Ford’s.) Three members are acting CEOs and two members are former Chairman and CEOs of global companies. ad deals in hardware, software, mobile devices, etc. It needed an organizational structure suited to its sophisticated culture, and this is why it decided to adopt its existing organizational structure. Apple Inc has a highly developed beneficial program for its employees that includes insurance coverage schemes, employees stock purchase program, product discounts for employees, flexible spending account, investment plans, site fitness programs, etc. Apple Innovation Case Study. Apple Inc Report contains a full analysis of Apple organizational structure. To help understand Apple’s structure, we first need to look what is the company’s purpose. It has adopted a traditional hierarchy and included some significant elements from various other types of organizational structures. In functional structure, people are grouped on the basis of their common expertise, experience and resources. Moreover, proven leaders such as former US Vice President Albert Gore Jr., former CFO and Corporate President The Boeing Company James A. Eddy Cue. Restrictions and other terms apply. Each product within Apple portfolio such as iPad, iPhone, iPad, Apple TV and iWatchis a result of collaboration of product-based groups. This type of approach receives both backlash and applause. 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. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, The Top 15 Common Challenges Faced by Entrepreneurs, Behavioral Assessment: Meaning, Importance & Advantages, Interpersonal skills: Meaning, Importance and How to improve them, Organizational Structure – Definition, Types and Elements, Organizational Conflict: Definition, Types and Advantages, Employee Background Check: Concept, Importance, Steps & Advantages, How to be Successful? Although Tim Cook introduced considerable changes to Apple corporate structure since assuming the top job in 2011, the structure still remains to be highly hierarchical with many layers of management. Apple Inc is a multinational company of American origin. Senior Vice President. Apple’s collaborative structure is a critical part that ensures the organization has a good design that enhances increased innovation efforts of the company in an organization. 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