Case Study: An Analysis of Apple's Organizational Framework

This case study provides an analysis of Apple's mission statement, current strategies, and organizational structure. The study begins by examining Apple's evolving mission statement, highlighting its focus on innovation, digital services, and competitive advantages. It then delves into Apple's product development strategy, emphasizing reactive and proactive innovation to create unique user experiences. The organizational structure is described as collaborative, with a centralized decision-making process and a focus on teamwork. The study concludes that Apple's innovation strategy is supported by its organizational structure, which allows flexibility and adaptation to change, ensuring continued product innovation and development across all levels of employees. References to relevant literature are provided to support the analysis.

Analysis of Apple
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Running head: CASE OF APPLE

CASE OF APPLE
Discussion
Mission statement specifies goals and purpose of firms which supports strategic plans and
vision. While structure outlines the manner organisational goals are attained. In this
discussion study is made about mission statement, strategy and organisational structure of
Apple which is one of the most successful technology based firm.
1. As stated by Lee & Soon (2017) Apple’s current mission 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”.
With time Apple’s mission statement has altered by considering changes in business
landscape and these have influenced opportunities about what Apple can do. In
current mission statement, Apple has incorporated base for their most successful and
valuable products which had made them a symbol for innovation and elegance. In
particular Apple has enumerated their organisational outputs in their state of mission
to support and contribute their competitive edge. Like these outputs involve Macs,
iPOds, iPhones, iPads that had defined elegant competitive designs and edge to
counteract effect of rivals like Samsung, Google etc (Purkayastha & Sharma 2016).
Other aspect of Apple’s current mission is its emphasis on digital services through
internet. Example, iTunes online store has facilitated them to distribute digital content
so their mission clearly represents company’s focus on computing device and online
services. Also Apple’s mission statement has enumerated changes in market and
industry landscape as when seen a bit deeper, it presents Apple’s desire to be cutting
edge for which the company is popular and in their current state of mission this
inspiration is still there (Mangelsdorf 2016). The mission statement has terms like
“revolutionary” and “defining the future” which corresponds to people to understand
that Apple is still pushing towards innovation. Hence, it can be summarised that
Apple’s mission offers information on products, target markets and technology.
The strategy currently being used at Apple is specific product development and
innovation that is centred on reactive and proactive innovation further developed to
facilitate simplicity. This means that Apple’s strategy is to use cues from existing
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products and then developing and simplifying them further to remove unwanted
qualities and further integrating differentiated features mainly like adding novel
functions or reviving user experience. The reactive and proactive innovation strategy
in product development helps Apple to create a lasting impression on customers and
industry (Cross, Arena, Sims & Uhl-Bien (2017). For instance, Apple launched iPod
and iTunes to revolutionise music world with digital music. Also they introduced
instrumental iPhone and iPad in era of smartphone and tablets. This strategy is
followed by Apple across all their products which creates and maintains unique user
experience.
2. Apple maintains Collaborative organisational structure where CEO is nucleus. In their
vertical structure primary decisions are taken by CEO and top tier VP’s. Each of the
executives have their own unit consisting of teams who are delegated with different
responsibilities. Apple’s structure offers collaboration among all levels and permits
lower level to interact with middle and top level managers. All strategies are fully
aligned with structure and chain of command and this permits top tier managers to
allocate responsibilities appropriately to middle tier and thereafter middle level finds
it easier to convey organisational goals to lower level. This structure facilitates
teamwork integrated with adequate coordination and collaboration (Lescop & Lescop
2016). Also information flows freely between employees which permits managers to
align operations closely with organisational purposes. Apple’s structure permits
managers to focus on specialised divisions and this ensures effective allocation of
resources, formalised departments that conducts research in particular segments,
which ensures strong product development and innovation. This means that structural
contingency theory is applicable in Apple where their structure adapts to each
segment and ensures that specialised segments can adapt easily for innovation within
the structure with most effective support for change.
Due to this structure, managers at Apple can efficaciously administer resources across
all departments which helps Apple to maintain economies of scale. This even
permits managers earn incentives with better utilisation of less resources for more
benefits. Also this structure allows wider span of control and larger unity of command
where top tier can supervise all operations which permits them to emphasise more on
strategic plans across all divisions of Apple (Cross, Arena, Sims & Uhl-Bien 2017).
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Moreover, this structure permits centralised decision making where employees get
chance to participate in decision making process and this helps to realise strengths and
weakness of Apple to ensure appropriate improvement planning. Also Apple being
large sized firm has extensive scale of operations, formalisation and specialisation.
Fig: Apple’s organisational structure
Source: Author
Thus it can be concluded that Apple’s strategy for innovation is supported by their
organisational structure which allows flexibility of adaptation to change. Also their structure
allows higher support, visibility and collaboration which ensures continued quest for better
product innovation and development across all levels of employees.
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References
Cross, R., Arena, M., Sims, J., & Uhl-Bien, M. (2017). How to catalyse innovation in your
organization. MIT Sloan Management Review, 58(4), 39-47. Retrieved from
Lee, M. S. W., & Soon, I. (2017). Taking a bite out of apple: Jailbreaking and the confluence
of brand loyalty, consumer resistance and the co-creation of value. The Journal of
Product and Brand Management, 26(4), 351-364. Retrieved from
Lescop, D., & Lescop, E. (2016). The apple twist. Communications & Strategies, (102), 13-
35,155,157. Retrieved from
Mangelsdorf, M. E. (2016). Mastering strategy. MIT Sloan Management Review, 57(2), 67-
71. Retrieved from
Purkayastha, A., & Sharma, S. (2016). Gaining competitive advantage through the right
business model: Analysis based on case studies. Journal of Strategy and
Management, 9(2), 138-155. Retrieved from
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