Fundamentals Of Business Organisation Report

This report covers the organizational structure, management style, marketing management, supply chain management, challenges and solutions of Apple Inc. The report also discusses the suitability of the structure, target market, 7 P's marketing mix, and organization approach to marketing. The report is relevant for students studying business organization and management.

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Fundamentals Of Business Organisation
Report
7/2/2018
Student Name

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Contents
Introduction................................................................................................................................2
Organizational Structure and management................................................................................2
Organizational Structure.........................................................................................................2
Suitability of the structure......................................................................................................3
Management Style..................................................................................................................4
Marketing Management.............................................................................................................5
Organisation Strategies...........................................................................................................5
Target Market.........................................................................................................................6
7 P’s marketing mix................................................................................................................7
Purpose of chosen Apple........................................................................................................8
Organisation Approach to Marketing.....................................................................................8
Supply chain Management.........................................................................................................9
Supply Chain management process........................................................................................9
Challenges and Solutions.....................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
For a long period of time, Apple has been considered to be the best worldwide company
manufacturing the electronic devices. Apple has 453 retail stores in more than 16 countries.
The quality of production has been increasing day by day as the company has understood the
needs and 5requiremnts of the consumer available in the market. The company is offering a
product like iPhones, iMac and iPod which are unique and user friendly in nature (Panmore
Institute, 2017a). The business has gained this success due to the introduction of uniqueness
and competency in their products as a comparison to their competitors. The analysis made by
the company to understand the taste and preference, customization in the products according
to the requirement of customer makes them different. The success of the business is because
of its organizational structure followed in the organization, the marketing strategies adopted
by the company and the logistics and supply management techniques used by the company.
The company was able to maintain the HR policies which are flexible in nature and easily
adopted by the organization (Grant, 2016).
Organizational Structure and management
Organizational Structure
Apple organizational structure is considered to be hierarchal in nature in which one has to
report to others. This structure in the organization has been developed by the Steve Jobs. Jobs
are offering their advanced thoughts and a strong vision for the trade and this has made the
business successful in the competitive market. The organizational structure of Apple is
guided by the leadership of the Tim Cook. Cook focused on the decentralization of work
while following the hierarchy in the business. Decentralization makes the decision making in
the structure easy so that the level of creativity and innovation can be generated at all the

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levels of the management in the organization. The structure of the organization is bifurcated
into the different basis which includes product portfolio such as iPad, iPhone, iPod, Apple
TV as a result of the association of the product based groups (Panmore Institute, 2017b).
Features of Apple Organizational Structure
Structure of Apple makes the organization grow rapidly while implementing the innovation
in the business. The following are the utmost important features of Apple organization
structure which are as follows:
Product Based groups
The company is distributed its structure on the basis of product produced by the company.
This made the structure of the organization as divisional structure. In Apple, the chain
followed is that below the senior vice president for iOs apps, Vice president for iPad and
Vice president for consumer apps. This helps the structure of the organization to make a
differentiation in their product.
Functions Based groups
The functions of the company also divided on the basis of the function performed by the
individual in the organization. Each level of management in the Apple holds or performs the
specific function in the organization to complete the hierarchy and chain followed in the
company. The top leader of Apple addresses the business needs in terms of their functional
areas (Research Methodology, 2018).
Suitability of the structure
This structure is found suitable to the organization like Apple as there is a long chain of
hierarchy followed in the organisation. if there is follow of decentralization only in the
organisation theme the implementation of work converts into the conflicts and chaos in the

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organisation. of the company followed the total centralisation in the business in which no
power is given to the individual for the decision making then it will difficult for the employee
to work. In mid the democratic style in which there is the use of both centralization and
decentralization in the business like Apple. This will help the business to sustain and grow
more in the environment (Damanpour and Aravind, 2012).
(Source: Research Methodology)
Management Style
Democratic style has been used by the Apple so that the employees also feel the part of the
organization and contribute their full potential towards the company. In this type of style, the

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participation of the people, their consent and mutual respect is shared with the common goal.
This goal not only fulfills the aspiration of the individual but also to the organization.
Benefits
Collaboration between the leaders and the team
The supply of the accountability among the members, encouraging the process of choice
maker within the group increases integrity of the company. The common idea behind using
this technique is that there will be coordination, sharing a distribution of the responsibilities
(Shaw, 2016).
Participation in decision making
Democratic leaders have a great level of self-confidence, and they have the sense of
responsibility they involve in their decision-making process. In other words, Democratic
leaders are committed to the decentralization and delegation in the work which brings trust
and collaboration in the work. This will bring integrity among the team members and
organization. In Apple, the employees are motivated by the jobs and their confidence. The
company is prone to hire the skilled and professional, which have the sense of responsibility
(Baker, 2016).
Marketing Management
Organisation Strategies
Porter’s Generic Strategy
This strategy is used by the company to expand its business operations to get the broad
market. The growth of business and expansion can be achieved through the use of the
intensive strategies for the growth of the company.

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Product development
Apple uses product development strategy as its main intensive strategy for the growth. Apple
visions and mission statement specify that there will be a product development. Apple is
continuing making the innovation in new products which include iPhone, apple watch and
iPod (Brown, 2016).
Market penetration
Market penetration includes the gaining the superior market share by selling more of the
products and service by the company. For example, Apple has used this strategy by selling
more iPhone ad pads to its present target market.
Market development
Market development involves creating the new market while offering the new product.
Basically, the company is entering the entirely the new market. Apple innovates to offer the
good like Apple Watch which is totally the new product line for the firm (Garcia et al., 2016).
Diversification
Apart from making the portable and personal; technology, Apple has also entered into the
solar energy sector in which it could turn into a big business provider. This will not enhance
the brand and market share too for the company.
Target Market
The company is targeting the younger age group as they are the one who is called the early
adopter in the environment. Teenagers are considered to be one of the Apple Inc’s target
markets.

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7 P’s marketing mix
Price
Apple uses the premium price strategy ion the business that means the price charged by the
company is normally found to be high as compared to its competitors. The effect of this
strategy is creating the high-end image of the company in the market (Park, Egilmez and
Kucukvar, 2016).
Place
Steve Jobs decided to provide the high position to the retail stores of Apple, as they are the
one who is taking the reviews from the customers and able to analysis and summarise the
needs. This will create the deeper relationship with the customer by the company. Place also
able to promote the brand awareness. Places include affiliated websites, Apple stores,
Authorised retailers and telecom companies.
Product or service
Apple is offering the wide variety of products and service to its customers while offering the
innovation in their product. All apple products are easy to use and are found to be user-
friendly in nature with an intuitive design (Waterloo, 2016).
Promotion
The activities can be promoted by Apple by using the various channels of promotion which
include advertising, personal selling, sales promotion and maintain the relationship with the
public.
People

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Apple is promoting the vision of the company by using its employees. It is significant that
they should have the perfect information about the company and its product offerings. In
apple, proper and strict training is giving to the employees.
Process
The company always aims to match up with the condition prevailing in the market. Apple is
giving the high importance to the growth and the customer experience. The company is trying
to mix the culture of the organization with all the interactions don between the user and the
company.
Physical Evidence
Apple is managing its culture with the environment. Apple has c related its own culture, rules
and regulations to be followed in the organization. Apple brand is relatively related to the
innovation and technology (Just Virtual, 2015).
Purpose of chosen Apple
The reason behind choosing Apple as the organisation for the marketing department is that
this industry is found to be dynamic which gives the challenges to marketer to develop new
strategies to promote their product and service in the market. This company is responding to
the consumer needs with the on-going development of their product according to the need of
consumer.
Organisation Approach to Marketing
Apple is using the Retail marketing strategy in its business operations. as the business is
using the 7P’s which able to obtain the significant results with an innovative way it’s the
place, in particular, retail strategy. In the company like Apple, the marketing strategy is
interrelated and interlinked to each other and stores are the part of the vision. They are in

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apposition to promote the brand create the awareness about the culture. The area which is
required to be changed in marketing is the process of communicating about the product to its
customers. More advertisement to be used by Apple so that spread of products ranges and
service in the market will be increased.
Supply chain Management
Supply chain management is the process of flow of goods and services which involves the
movement and storage of raw materials. The works in process of inventory and of finished
goods are also included in it from the point of production to the point of consumption. The
supply chain management has its process in Apple which is found different from others
(Chesnotes, 2018).
Supply Chain management process
Research and development
In this phase, Apple introduces the new technologies to attract the customer. For the same
company is acquiring the license of the intellectual property. The company has to invest a big
amount in research and development of the product or service offered to the customer. It
should fulfill the needs of the individuals.
Concept Testing
In this step, market research has been conducted by the Apple in which innovation on which
the product is based on is checked by the experts in the company. The product testing is done
in the market by offering the samples to some persons to use it. All the data has been
assembling in this part from which the cost measurement of the product is done. It will also
analyze to help the potential quality defects in the product if any.
Pre-launch

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The main issues arise in the pre-launch of the product. All the management of the production
is done in this step. In this, there is involvement of new software products. All the handling of
the material purchased has been recorded in this step. The purchase agreement, raise orders,
make pre-order payment to the suppliers are made (Ching and Moreira, 2014).
Launch
All the issues which are found at the previous stages are solved by the company. In this step,
all the backlogs have been resolved by the Apple experts. The demand forecasting is done to
know the product demand in the market.
Quarterly review
In this, the review is taken from the market in which review of inventory level, check of
production level and adjustment of demand forecasting is done. The introduction to the new
development in the product of Apple is used. The main focus is given on monitoring the sales
and cost components of the product (Gamme and Aschehoug, 2014).

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(Source: Waterloo, 2016)
Challenges and Solutions
The business has experienced the challenge of launching the product as all the resolves which
are finding in the previous stages has to be resolved by the experts of Apple. Clearing out all
the backlogs which are found has to be resolved which take a lot of time and forecasting the
demand of the product is another problem faced by the Company (Romero, Cavalieri and
Resta, 2014).
The solution to this can be simply by hiring the specialists for resolving the problem in
implementing the product in the market. For the proper demand forecasting by the company,
Apple should do the trend analysis of the past performance of their customers so that it can be

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identified that how many customers respond in favorable and how many is there in against
the policy and logistics opt by the company. For this, Apple also required a professional who
is well versed with the knowledge and skills of statistics.
Conclusion
From the above discussion, it can be concluded that Apple is considered to be the innovator
in producing the products and services. This range varies according to the requirement of the
individual customer. Apple is performing well in the market due to its hierarchal structure in
the organization which makes the smooth working in the organization. This smooth working
results in operating the market and its issues on time without any delay. The market is also
influenced by the marketing strategies opt by the company. From the generic strategy, it can
be said that the Apple is performing well in the market and has diversified activities in the
business. The logistics and supply chain management of the company also facing the
challenges and issues but are able to cope up with them and survive in the market with the
best results. While challenges and difficulties with supply chain responsibility is not unique
to Apple, the company is recording the high amount of profit and a brand value which can
make easy and highly visible to the target.

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References
Baker, M.J. (2016) What is marketing?. In The Marketing Book(pp. 25-42). Oxon: Routledge.
Brown, S. (2016) Postmodern marketing: dead and buried or alive and kicking?. In The
Marketing Book (pp. 43-58). Oxon: Routledge.
Chesnotes. (2018) Generic and Intensive Growth Strategies of Apple [Online] Available
from: https://www.cheshnotes.com/2017/07/generic-and-intensive-growth-strategies-of-
apple/ [Accessed on: 1st July 2018]
Ching, H.Y. and Moreira, M.A. (2014) Management systems and good practices related to
the sustainable supply chain management. J. Mgmt. & Sustainability, 4, p.34.
Damanpour, F. and Aravind, D. (2012) Organizational structure and innovation revisited:
From organic to ambidextrous structure. In Handbook of organizational creativity (pp. 483-
513).
Gamme, I. and H. Aschehoug, S. (2014) Assessing lean’s impact on operational
integration. International Journal of Quality and Service Sciences, 6(2/3), pp.112-123.
Garcia, N., Espíndola, D.B., Botelho, S., Albrecht, A., Israel, E., Frazzon, E., Hellingrath, B.,
Schroeder, G. and Pereira, C.E. (2016) Web-Service Interface-based IMS-SPSC
Integration. IFAC-PapersOnLine, 49(30), pp.192-197.
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. New Jersey:
John Wiley & Sons.
Just Virtual. (2015) 7P’s Of Marketing Mix [Online] Available from:
http://justvirtualcompany.com/en/apple-marketing-mix/ [Accessed on: 1st July 2018]

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Panmore Institute. (2017a) Apple Inc. Organizational structure: Features, Pros and cons
[Online] Available from: http://panmore.com/apple-inc-organizational-structure-features-
pros-cons [Accessed on: 1st July 2018]
Panmore Institute. (2017b) Leadership Lessons from apple CEO Tim Cook [Online]
Available from https://www.entrepreneur.com/article/237287 [Accessed on: 1st july 2018]
Park, Y.S., Egilmez, G. and Kucukvar, M. (2016) Emergy and end-point impact assessment
of agricultural and food production in the United States: A supply chain-linked Ecologically-
based Life Cycle Assessment. Ecological indicators, 62, pp.117-137.
Research Methodology. (2018) Apple Organizational structure: A hierarchal structure that
can change in near future [Online] Available from: https://research-methodology.net/apple-
organizational-structure-a-hierarchical-structure-that-may-change-in-near-future/ [Accessed
on: 1st July 2018]
Romero, D., Cavalieri, S. and Resta, B. (2014) September. Green virtual enterprise broker:
enabling build-to-order supply chains for sustainable customer-driven small series
production. In IFIP International Conference on Advances in Production Management
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Shaw, S. (2016) Airline marketing and management. Oxon: Routledge.
Waterloo. (2016) Apple: A Global Leader in Supply Chain Management [Online] Available
from: https://smbp.uwaterloo.ca/2015/06/apple-a-global-leader-in-supply-chain-
management/ [Accessed on: 1st July 2018]

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