Report: Analysis of Apple and Its Stakeholder Management Strategies

This report provides a comprehensive analysis of Apple's stakeholder management, examining the company's approach to its key stakeholders: customers, employees, and investors. It highlights the importance of effective stakeholder management in maintaining Apple's global reputation and addresses the challenges the company faces, such as customer satisfaction, employee work-life balance, and investor relations. The report delves into the power, legitimacy, and urgency of each stakeholder group, evaluating their influence on Apple's decision-making processes. It also discusses the impact of Apple's manufacturing shift to China and its implications for stakeholders. The report concludes with recommendations for improving stakeholder management, including the need for effective leadership, clear communication, and a holistic understanding of stakeholder relationships.

Running head: APPLE AND ITS STAKEHOLDERS MANAGEMENT
APPLE AND ITS STAKEHOLDERS MANAGEMENT
Name of the student
Name of the university
Author Note

1APPLE AND ITS STAKEHOLDERS MANAGEMENT
The aim of the report is to present the analysis of stakeholder’s management of Apple,
USA. It has been observed in one of the recent new article that the issue of Apple shifting its
Iphone manufacturing industries to China is due to lack of stakeholder’s management in
USA. This has been highlighted that largest shareholders of the company are mutual funds or
institutions like the Fidelity, Vanguard (Forbes.com 2019). In case Apple is not being able to
generate good returns in USA, the company will not be generating for the average American
(Forbes.com 2019). This problem of shareholders management has a deep rooted issue of
lack of management of the stakeholder’s interests. Apple is one of the American
multinationals brands of the world, headquartered in California (Apple 2019). This is known
for producing Iphone , Ipad, Ipod and Mac personal computer.
Irrespective of the concept of stakeholder’s management being old, during 1970, it
has been observed that firms are facing challenges in terms of the external operating
environment (Bourne 2016). Hence corporations have been working by forming the external
environment framework and scanning systems that is designed to warn about the changes,
events and the emerging issues in the external environment. This idea has been further
developed by Freeman by including the nuances of the concept (Harrison et al. 2015). Hence
it is to be argued that Apple acquires a three way approaches, the people or the customers, the
employees and the investors.
Customers Primary stakeholder
Employees Primary stakeholder
Investors Secondary stakeholder
Equity, economic, influences

2APPLE AND ITS STAKEHOLDERS MANAGEMENT
In case of the customers who are the primary stakeholders of the company, it has
highest influence since they are the cornerstone of the products that the company. For the
employees of the company, it has been observed that it has employed 72000 employees
worldwide and it is crucial to consider the fact that manufactures are one of the most
important pillars of the organization (Apple 2019). In case of the first two described
stakeholders, the impact of equity, economy and influence is different however at the same
time they carry the equal weightage (Koschmann et al. 2016). While for the lenders and
investors of the company who constitute the secondary stakeholder have limited impact on
the three parameters of equity, economy and influence. In case of the secondary stakeholder’s
management, the company has upper hand in decision making and it is mostly derived
depending on the value and organizational culture of the organization (Eskerod et al. 2015).
In case of the exiting performance gap of Apple and the primary stakeholder,
customers, it has been observed that the issue of sustainability of the products that has been
observed to me limited, however it is interesting to note that customer’s satisfaction and
reach to the products offered are limited in access, which is responsible due to the factors of
limited venture in the new markets. Moreover the company fails to counter the stiff
competition that other companies are offering at the market place which is further widening
the gap between the customers and the company. In case of the employees of the company, it
can be argued that employees of the company have voiced growing discontent in the
workplace, this has been highlighted that the high expectation form the respective job profile
and long hours of work is one of the reason for the poor work-life balance (Eskerod et al.
2015). This poor work life balance can be attributed to the existing gap of the effective
stakeholder’s management of the company. Lastly, in case of managing the investors and
lenders interest, the company is facing one of the challenges of loss of market and collapsing
sales in the global market. In addition to the diversification of manufactures to China, the

3APPLE AND ITS STAKEHOLDERS MANAGEMENT
company is also failing to generate enough revenue for the stakeholders in USA. This is one
of reasons for the ineffective stakeholder management strategies at work. This has been
further argued that there is a lag in the stakeholder’s management of interest under the
chairmanship of Tim Cook.
Power, legitimacy and urgency of the stakeholders
Power Legitimacy Urgency
 In case of the
customers power to
influence the
management of
interest it is to be
argued that they
constitute an upper
hand. Since the
primary interest of the
company lies in
understanding and
catering to the needs
of the customers, it is
to be argued that they
enjoy higher
importance than the
other stakeholders of
the company (Garcia‐
Castro et al. 2016).
 In exercising
legitimacy by the
customers, it is
expected to be
discretionary and
dominant in nature
since it is important
to cater to the needs
of the customers and
it is important that the
company seeks
legitimacy from the
primary stakeholder,
customers (Garcia‐
Castro et al. 2016).
 In case of the
employees of e the
company, it is
important to consider
 In case urgency, it is
to be noted that
customers take the
position of
demanding position
since it is important
for the company to
cater to the needs of
the customers prior to
any other interest.
Hence the urgency
has a upper hand in
this regard.
 In case of the
employees of the
company, the level of
urgency is seen to be
definitive and

4APPLE AND ITS STAKEHOLDERS MANAGEMENT
Hence power
exercised by this
stakeholder is both
dominant and
definitive.
 In case of the
employee interest of
the company it is to
be noted that they
enjoy higher power
since they are
considered to be the
asset of the company.
Their needs and
interested are duly
protected. Power
excised by this
stakeholder is
dangerous, dominant
and definitive.
 For last part of the
stakeholder, it is
dormant power
excision since it is
secondary in nature.
the fact that they
assume dominant and
dependent form of
legitimacy since the
interest of the
company is
dependent on the
interest of the
customers and vice-
versa.
 In case of the lenders
and investors, level of
legitimacy is not
dependent to the
greater extent like the
other two
stakeholders.
dependent.
 While for the
investors of the
company, their level
of urgency is
demanding since
there are number of
options to these
investors in the
market. Hence it is to
be argued that their
sense of urgency is
comparatively higher
than the first
stakeholder (Garcia‐
Castro et al. 2016).

5APPLE AND ITS STAKEHOLDERS MANAGEMENT
Recommendations
After the due consideration of all the issue of the company in managing the stakeholders,
it is to be argued that there are number of issues of stakeholder’s management.
 Firstly, it is crucial to consider the fact that Apple enjoys the global reputation due to
the quality it offers. However it is important to note that the importance of effective
leadership is important in ensuring for stakeholders management. This is important
to identify the with kind of stakeholders. This will help Apple understand the level of
weightage each of the stakeholders is to be given.
 Secondly it is crucial to consider the level of priority to each of these stakeholders.
However this process is to be substantiated by the process of effective communication
to the stakeholders. This helps each of them gain enough information about the
process and mode of functioning.
 Lastly it is significant to make a holistic understanding for Apple at this stage about
the relationship with each of the stakeholders in order to make further improvements.

6APPLE AND ITS STAKEHOLDERS MANAGEMENT
References
Apple. (2019). Apple. [online] Available at: https://www.apple.com/ [Accessed 14 Apr.
2019].
Bourne, L., 2016. Stakeholder relationship management: a maturity model for organisational
implementation. Routledge.
Eskerod, P., Huemann, M. and Savage, G., 2015. Project stakeholder management—Past and
present. Project Management Journal, 46(6), pp.6-14.
Forbes.com. (2019). The iPhone Failure In China Illustrates Apple's Latest Problem. [online]
Available at: https://www.forbes.com/sites/ewanspence/2019/02/11/apple-iphone-xs-xr-x-
china-sales-massive-problem-mistake/#2f0db5e404dd [Accessed 14 Apr. 2019].
Garcia‐Castro, R. and Francoeur, C., 2016. When more is not better: Complementarities,
costs and contingencies in stakeholder management. Strategic Management Journal, 37(2),
pp.406-424.
Harrison, J.S., Freeman, R.E. and Abreu, M.C.S.D., 2015. Stakeholder theory as an ethical
approach to effective management: Applying the theory to multiple contexts. Revista
brasileira de gestão de negócios, 17(55), pp.858-869.
Koschmann, M.A., 2016. A communication perspective on organisational stakeholder
relationships: discursivity, relationality, and materiality. Communication Research and
Practice, 2(3), pp.407-431.

7APPLE AND ITS STAKEHOLDERS MANAGEMENT
Appendix A