Strategic Management and Governance Structures at Apple Inc.

This report provides an in-depth analysis of Apple Inc.'s strategic management and governance structures. It begins with an overview of Apple's business nature, highlighting its focus on technology and innovation, and its position in the global market. The report then examines the company's hierarchical organizational structure, including the roles of the board of directors and key corporate officers like the CEO, COO, and CFO. It details Apple's processes for product development, emphasizing innovation and customer satisfaction, and outlines key company policies, including those related to HR and customer relations. The report further explores the roles and responsibilities of corporate officers, emphasizing decision-making, delegation, and financial oversight. It assesses whether Apple's governance structures and policies align with regulatory requirements and discusses how the company addresses and mitigates various risks. The report concludes with a summary of findings, reinforcing the importance of effective governance and strategic management in Apple's continued success.

Strategy &
Management
Structures

Table of Contents
INTRODUCTION ..........................................................................................................................1
Main Body ......................................................................................................................................1
The nature of the business ..........................................................................................................1
The governance structures, processes end policies Apple Inc. has in the place. .......................2
Corporate officers and their roles as decried in public documentation.......................................4
Whether the governance structures and policies reflect regulatory requirement. ......................5
How the organisation addressee and mitigate the risk................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is the formulation of the major goals and initiatives taken by the
company. Strategic management is the potential part of the organisation in order to make the
company planing and policies structure. On the behalf of effective strategic role company can
easily manage their functions in order to grab the business opportunity. For taking this report
further Apple Inc. will take into action. Report will discuss about the nature of the business,
governance structures, processes and policies it has in place. Further, apart will discuss on the
corporate officers and their roles as described in public documentations. It will also discuss about
the reflect of regulatory requirement. How Apple Inc. addresses the risk factor in order to reduce
the future uncertainties. It will also consider the impact of internal changes and external factors
which affects the company behaviour.
Main Body
The nature of the business
Apple Inc. is the multinational software and cellular based company, it shipped with a set
of software. Apple Inc. deals with different products which makes huge impact on the new
technologies (Hill, Jones, and Schilling, 2014). Apple Inc. is the leading and most popular
company in the cellular sector. Their potential products are I phone, Tablet, Mac, Apple TV.
These products of apple provide great market for the company. Apple Inc. is denotes quality and
prime services of the products. Apple Inc. promotes services at digital level. Apple Inc. started in
1977 January 3. Company has designed personal computers and related customers which is
unique in nature. Company has adopted unique growth and development strategy in which
company adopt high advance services. Basic aim of the company is to developed the prime
quality services for the company. It makes company awesome product and services. Apple Inc.
focus on the future demands and make the best quality of technological product and services. It
is the great opportunity for the company to adopt innovative platform which gives high brand
image and market share (Rothaermel, 2015). Apple Inc. has high demand in the market. In terms
of development. The main element and keep pillar of the company is industrial design and
product growth. Apple Inc. always adopt high features and innovation in the product which
attracts customer focus. Innovation and attractive designs are the most essential part of the Apple
Inc. it has high demands of the products which gives more importance to the company. It gives
new opportunity growth to the company. It helps to make the effective environment. It is the
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effective growth and effective management skills adopted by the organization. Apple Inc. nature
is to adopt high advanced technologies and software through which they connect people with the
technologies in different new ways. Apple Inc. is the American multinational company which
develops new skills and management skills. It provides ease and flexibility in the environment.
Which gives different forms of new product and services. The nature of the business is based on
the new techniques which gives advanced growth (Briscoe, Tarique and Schuler, 2012). Apple
Inc. sells number of advanced networking software solutions, accessories which lead to give
more satisfaction to the customer. Apple Inc. segment includes both North and South America.
Europe segments includes European counties, India, middle east and Africa. Apple Inc. covers
almost all part of the world and get customer satisfaction. Apple Inc. target customers are very
high and demanding. They target high prime based customers which are enough affordable
product and services. On the other side, it gives effective Market growth and advancement in
technologies. Company is fully based on technology products Which gives high frame products
to their potential buyers. Distribution channel of Apple Inc. through online stores, retail stores,
direct sales or through third party sales (Ginter, Duncan and Swayne, 2018). This makes the
environment positive and effective. Management of the company is well managed and
productive in order top generate profit for the company. It also makes the working environment
for their employees to make them satisfied and effective. Moreover, company focused on the
development on the basis of future forecast. They make new development opportunities which
helps top adopt new diversify environment.
The governance structures, processes end policies Apple Inc. has in the place.
Governance organisational structure
Apple Inc. organisational structure can be described as hierarchical structure of the
company (Apple organizational Structure, 2018). Organisation structure developed by the former
CEO late Steve Jobs in order to focused on innovation ideas with the clear vision and mission of
the company (Eden and Ackermann, 2013). The main motive of the company is to promote the
company services by introducing high advanced services to the customer. Apple Inc.
organisation structure modified by the Tim Cook in order to modification in leadership approach.
Tim Cook adopt the nature of decentralization in order to motivate innovation among employees.
In which employees also need to take some effective steps in order to give the company their
potential contribution (Ward, 2012). Company hierarchical structure are largely high and big.
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Product based grouping is the another effective feature of the company (Apple organizational
Structure, 2018). Each product within Apple Inc. portfolio includes several names such as mobile
phones, Mac, TV, laptops etc.
Apple Inc. higher level of management includes Board of directors which includes eight
members with great leadership background (Pearce and Robinson, 2013). There are three
members which acting as a CEOs and two members are former chairman and CEOs of global
companies. It gives the new services or promoting actionable plan which helps to give company
great effective sources. On the other side vice president Albert GoreJr, former CFO and
corporate president, there are tow people which are co-founder and director of Blackrod Susan
Wagner.
The productive management of company hierarchical and strong control on the
management team gives advantage to the company (Lasserre, 2017). Another main objectives of
the company is to adopt the effective management skills. Along with that, another main objective
of the management level is to protect the management team members. Overall organisation
structure of the company is spoke wheel hierarchy, function based grouping, product based
grouping.
Apple Inc. processes
Apple Inc. is the leading new advanced services which provides great services to the
customers on the basis of customer needs and wants (Alkhafaji and Nelson, 2013). It is the
highest leading company in the organisation which protects company environment and risk and
wants. Company product and services are which gives higher protection level to the company.
Apple is the highest competitor of the cellular sector which produce the highest services of they
organization sector. Another main point. Overall, company processes in terms of product
development is depends on the new techniques. In order to develop the product development
process and effective management tools (Ahmed and Shepherd, 2012). Along with that another
main process of the company is to take the external environment in order to analyse the new
services. In order to develop the new services or product to meet the needs of customer
satisfaction company needs to analyse the customer attraction and process in order to achieve the
market position. In Apple Inc. company design department make designs for the new services in
which company make new product and services this helps to take the new product development
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in terms of taking new opportunities. Moreover, in order to make new process company focus on
the main goal and avoid all disturbance (Karadag, 2015).
Policies of Apple Inc.
Every organisation should adopt policies and structure in order to reduce the time and
secure the environment from effective sources. Policies and legal environment gives strength and
protective environment in order to safe the company atmosphere and company legal structure.
On the other side company also needs to make the effective management tool. Organisation
policies are to take innovative action plan in order to compete with the effective management
planning (Stead and Stead, 2014). Moreover, the main objective of the company is to protect the
effective company or HR policies company HR policies are to recruit or select from LinkedIn
Profile screening, Group interviews, Face time interviews, Personal interview in Office. These
are the selection process of Apple Inc. along with tStrategy & Management Structureshat, Apple
Inc. worked with Fair Labor Association two internationally recognized organisation. In order to
keep the environment safe and secure. Along with that, another policies of Apple Inc. they adopt
professional development opportunities for workers through supplier employee education and
development. Furthermore, another major policies they adopt in terms of customer focus. They
adopt effective policies for customers as well (Rahm and Riha, 2012). They focus on the
innovation or quality and product and services. In terms of getting customer preference company
make sure that its policies affects direct to the customer.
Corporate officers and their roles as decried in public documentation.
Corporate officers and their roles and responsibilities are keeping environment systematic
and effective (Boyd, Takacs Haynes and Ketchen, 2012.). In order to make the effective
management corporate officers are needs to be maintained proper environment in the company.
The main role of the corporate officers in toe make the effective work policies and targets for the
organisation. Corporate officers includes Board of directors, CEO, COO, CFO and secretary.
Their roles and responsibilities help company to follow the correct path in order to achieve the
organisation goals and objectives. There are the roles of the corporate officers are given below:
 Corporate officers have responsibility to sign the documentation on the behalf of the
corporation (Hill, Jones, and Schilling, 2014).
 Take decision making approach on the basis of effective planning and tools.
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 Delegate the roles and responsibilities to the employees in order to guide the effective
management tool (Pearce and Robinson, 2013).
 Helps to provide guidelines and management skills in order to accomplish the
organisation task and policies.
 Take measure cation plan in order to reduce the ineffective tools and techniques.
 Adopt corrective action plan in order to take sudden action in uncertain situation.
 Secretary has responsible of maintaining and keeping effective management steps. It is
the effective process in order to meet the needs of customer satisfaction.
 CFO is responsible to take care the financial matters in order to maintain the effective
financial resources (Stead and Stead, 2014).
 Chief operating officer is responsible for taking action for day to day basis.
 CEO is responsible to undertake the action or review the management position as well as
profit report.
Whether the governance structures and policies reflect regulatory requirement.
Governance structure and company policies reflect the systematic process in the
company. It helps to manage the work in effective manner. On the other side, it helps to guide
the effective management tool and technique which helps to guide the employees and their roles
and responsibilities (Pearce and Robinson, 2013). Structure and policies reduce the uncertain
events and risk factors. Apple Inc. is the biggest multinational company which control power is
very much effective and productive. Every organisation should adopts proper effective policies
and governance structure in order to generate productive development. Organisation Structure
maintained the proper effective management working according to the plan. Company Structure
defines the each role and responsibilities of the employees which helps to reduce ineffective
process. On the other side it maintained proper systematic work in the organisation. In terms of
high management structure company facing the issues of lack of communication due to improper
governance structure, in order to reduce them company makes higher, lower and middle levels in
order to identify the boss and subordinate. It helps to protect the miscommunication process
between employees. On the other hand policies and rules and regulations protect company from
unwanted risk related to uncertain situation (Lasserre, 2017). Due to lack of legal regulations
company facing interference of government which makes ineffective environment in the
company atmosphere. Moreover, the main objective of Apple Inc. is to retain innovation and
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attractive. Along with that, policies protect company from illegal situations and safe the
environment in very effective ways (Alkhafaji and Nelson, 2013). It is important to control the
unwanted activities. These effects on regulatory environment in order to make the improper
environment. On the other side, this makes the effective management tool in order to get the best
effective process. Rules and regulations also assist to maintained proper discipline in the working
environment. Regulatory get helps from the governance structure and policies to ensure the
quality of services of products. This gives the positive impact on the organisation structure which
helps to getting approachable customer satisfaction (Hill, Jones, and Schilling, 2014). This gives
the proper maintained environment which helps to make proper working atmosphere in the
company. Governance structure helps will improve the productivity among employees in order
to accomplish the organisation target or goals.
Illustration 1: Apple Inc. organization structure
Source: Apple organizational Structure, 2018
How the organisation addressee and mitigate the risk.
Apple Inc. is the big multinational company. The major risk factor of the company would
be changes in customer demands, technological changes, competitors threats etc. these factors
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may affect the company policies and structure. This gives the negative impact on the
organisation behaviour (Pearce and Robinson, 2013). Organisation addresses their risk factor by
adopting strategic planning in which they improve their plans and policies. This gives the
effective management environment. Moreover, risk management make the plans and action
strategies for reducing the negative impact of the risk factor. This helps to motivate the planning
and effective control. In order to addressee the risk factors company adopts research analysis in
order to analysis the external environment impact and new changes. Along with that, at the time
when Apple Inc. invented wrist watches, at that time demands are high and supply is less. Due to
which company facing risk factors in the external factors (Pearce and Robinson, 2013). On the
other hand, company also protects risk factor with the helps of productive planning and effective
leadership growth. Apple Inc. also facing risk in technological department where other
competitors may adopt new techniques and development growth. This is the risk for the
organisation which affect company sales revenue. On the other hand, apple adopt effective
working environment for employees which helps them to reduce employee retention risk.
Another risk may face by the company is technological risk. Technology is dynamic and
advanced company needs to maintained the proper technological updation to mitigate those risk
factors and negative impact (Karadag, 2015). Another risk factor which mitigate company that is
price factor company cannot approach number of customer due to high prices for that, company
apply low prices strategy in order to grab the other customers as well. This makes the clear
vision and mission through which company adopts effective planning tools.
Possible improvements impacts of internal or external factors on the 2-3 year horizon.
Company adopt major effective strategic planning and productive effective plans in order
to grab the market attraction and customer focus. Apple always adopt high advanced techniques
in their products which full fill the customer demands (Lasserre, 2017). It promotes company
growth and profit revenue. Some internal or external environment which impacts on the
company atmosphere. External environment is dynamic and uncertain factors which changes the
customer purchasing power also impact on the company atmosphere. This makes the company
ineffective and challenging. Internal environment includes company stakeholder such as
customers, suppliers, shareholders, governments etc. on the other side, external factors includes
political, legal, social, technological, environmental etc. these all factors influence the services of
the company. Some external environment which change the possible improvement or give the
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positive impact to the organisation structure (Hill, Jones, and Schilling, 2014). Company is
growing in rapid ways. In order to stable the market position and improvements company needs
to adopt customer needs and wants. This gives the customer faith and loyalty. On the other side,
another possible improvement in the company is business expansion in geographical terms. This
makes the possible improvements another improvement for the company is new skilled and
leaders for the company improvement. This makes the effective management activity for the
company. Internal changes of the company also changes as per the working environment. Along
with that, external environment is the highly dynamic environment.
External factors
Political: political changes impact on the company environment in terms of changes in policies,
taxes, democratic (Ward, 2012). Through which company needs to change their prices and
policies.
Economical: Economic factors influence by the changes in exchange rates, interest rates
etc. this may gives impact on the company profit revenue.
Social: social factors are the highly effect full factor which influence company interns of
high prices, environment degradation etc.
Technological: technological changes may possible to give higher growth to the
company in coming past years (Briscoe, Tarique and Schuler, 2012). Through which company
target more new customers.
Legal: company needs to adopt legal factors in order to maintained proper effective legal
environment (Lasserre, 2017). On the basis of changes in legal environment company needs to
adopt all those legal regulations in order to maintained proper company environment.
Environmental: it is the last factor of external which impact on the company business.
This factor is highly effect full and impactful on the business nature. Along with that,
environment includes changes in environment interns of customer needs, preference. Moreover,
the main purpose of the organisation is to adopt all changes.
On the basis of internal and external factors company should adopt new changes in terms
of growth in next 5 years. These changes helps to determine the actual condition of the market
which helps to take new improvement steps for the company (Ahmed and Shepherd, 2012).
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CONCLUSION
From the above section it can be concluded that, strategic management is the effective
planning tool which helps to make the effective management structure. Present report based on
Apple Inc. which is the leading multinational company in California. Report discussed about the
governance structure, policies and risk factor company faces. On the other side it also discussed
about the internal or external impact on the company performance. Moreover, Apple Inc. needs
to approach the lower level customers in order to grab the attraction and company sales. It gives
higher brand image and company customers. This is the effective management tool which helps
to make the effective plan. It also provides growth and achievement for the company.
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REFERENCES
Books and Journals
Ahmed, P. and Shepherd, C., 2012. Innovation management. Pearson Higher Ed.
Alkhafaji, A. and Nelson, R. A., 2013. Strategic management: formulation, implementation, and
control in a dynamic environment. Routledge.
Boyd, B. K., Takacs Haynes, K and Ketchen Jr, D.J., 2012. Contingency hypotheses in strategic
management research: Use, disuse, or misuse?. Journal of Management, 38(1), pp.278-
313.
Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management:
Policies and practices for multinational enterprises. Routledge.
Bryce, H. J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management.
Sage.
Ginter, P. M., Duncan, J. and Swayne, L. E., 2018. The Strategic Management of Healthcare
Organizations. John Wiley & Sons.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Karadag, H., 2015. Financial management challenges in small and medium-sized enterprises: A
strategic management approach. Emerging Markets Journal, 5(1), p.26.
Lasserre, P., 2017. Global strategic management. Palgrave.
Pearce, J. A. and Robinson, R. B., 2013. Strategic management: Planning for domestic & global
competition. McGraw-Hill/Irwin.
Rahm, B. G. and Riha, S. J., 2012. Toward strategic management of shale gas development:
Regional, collective impacts on water resources. Environmental Science & Policy, 17,
pp.12-23.
Rothaermel, F. T., 2015. Strategic management. McGraw-Hill Education.
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