Case Study on Apple Incorporation

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APPLE INCORPORATED
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APPLE INCORPORATED
Introduction to Apple Incorporation
Establishment of Apple Incorporated
Apple Incorporated (Inc.) was founded in 1976 by Ronald Wayne, Steve Jobs, and Steve
Wozniak. The company was incorporated in 1977 for the purposes of designing, manufacturing
and marketing personal computers, music players, consumer and business software, accessories,
digital applications, operating systems, network appliances, mobile communication devices, and
media appliances (Lashinsky, 2013, pp. 1-14).
Vision and Mission
The mission statement of Apple has changed over time to reflect the changing operating
environment, consumer demands, and security considerations (Rowland, 2017). The current
mission statement is
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, 2017).
The mission statement makes reference to the company’s product lines as it sets the platform
for future developments and expansion of Apple. The vision statement is very comprehensive;
indicating how the company continues to grow and maintain its status. The vision statement is
given below
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

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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, 2017).
Managerial Highlights
Apple Inc is managed by a board of directors. The board of directors is made up of eight
individuals including Arthur Levinson (Chairman of the Board), James Bell, Tim Cook, Albert
Gore, Robert Iger, Andrea Jung, Ronald Sugar, and Susan Wagner (Apple Inc., 2017b). The day
to day operations of the company are managed by the Chief Executive Officer (Tim Cook) and
eighteen vice-presidents. These senior officers are in charge of retail, software engineering,
design, hardware engineering, global marketing, legal affairs, hardware technologies, operations,
communications, industrial design, environment, policy and social initiatives, marketing
communications, people, inclusion and diversity (Apple Inc. 2017b).
Products Focused
The company has a variety of well-known products that include iPhones, iPad, iPods, iOS,
OS X, iCloud, Apple television, and Mac (Goel, 2013). In 2015, the company expanded its range
of products to include the Apple Watch which is a range of smart watches that include the Apple
Watch, Apple Watch Sport, Apple Watch Hermes and Apple Watch Edition. These watches

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utilise wireless iPhone capabilities for calling and texting additionally they are able to keep track
of the owner’s fitness and health habits (Popper, 2015). Additionally, the company introduced
Apple Pay which is a digital payment platform with features designed to ensure security, privacy
and rapidness of mobile payments (DeAgonia, 2015).
Line Function and Staff Function
The organisational structure at Apple does not include middle-level managers. The duties and
responsibilities of the middle-level managers are shared between first line managers and top
level managers (World Press.com, n.d.). The organisational structure is characterised by
(i) Spoke and Wheel Hierarchy: the chief executive officer is at the centre of all the
activities in the organisation. However, the senior management and individual vice-
presidents have significant autonomy and are able to coordinate activities amongst
themselves;
(ii) Function-Based Grouping: the upper tier of the organisation which consists of vice
presidents is grouped according to functions. Each vice-president manages a
particular function;
(iii) Product-Based Grouping: the lower echelons of the organisation are structured around
products. There is the division of labour based on the different products and services
that the company produces (Meyer, 2017).
Apple Incorporation’s Value Chain
The concept of the value chain was developed by Michael Porter in 1985 (University of
Cambridge, 2016). According to Porter, the value chain refers to a set of activities or systems
within an organisation that allows for the transformation of inputs into outputs. The value chain