Influence of Corporate Strategy and Governance: Apple Inc. Case Study

This research proposal examines the influence of corporate strategy and governance on employee performance, using Apple Inc. as a case study. The introduction provides an overview of corporate strategy and governance, highlighting their impact on employee productivity and organizational success. The research aims to analyze this influence, focusing on Apple Inc.'s structure, objectives, and the impact of corporate strategy and governance on its employees. The literature review explores the concepts of corporate strategy and governance, discussing Apple Inc.'s structure, the impact of strategy and governance on employee performance, and the implications of governance failures. The proposal includes research questions and objectives to guide the investigation, along with an outline of the research methodology. The report will identify ways to overcome governance failures and the role of employees in ensuring effective corporate governance. The study is expected to provide insights into best practices for aligning corporate strategy and governance to enhance employee performance and organizational effectiveness.

RESEARCH
PROPOSAL

Table of Contents
TITLE..............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Literature Review.............................................................................................................................2
Secondary and primary research undertaken.................................................................................10
Critical review of the results of the research.................................................................................14
Recommendation and action plan..................................................................................................16
REFRENCES.................................................................................................................................19

TITLE
“To analyze the influence of corporate strategy and governance on employees
performance”. A case Study on Apple Inc.
INTRODUCTION
Overview of the research
Corporate strategy is considered as the hierarchically highest strategic plan of an
organization, which explains the corporate goals and different ways to attain them within
strategic management (Huveneers and Robbins, 2014). Corporate strategy takes a portfolio
approach to strategic decision making through analyzing all the aspects of organizational
business to evaluate how to create value for business growth. Corporate governance is
determined as the mechanism, process and relations through which organizations are controlled
and directed in right direction. Corporate governance mainly includes balancing the potentials of
company's major stakeholders like management, customers, suppliers, shareholders, financiers,
government and the community. Corporate strategy and governance provides an appropriate
frame work to an organization to implement its all business operations in effective and efficient
manner. It also has a huge influence on the performance and productivity of employees as a
proper assistance and management helps the employees in moving forward towards right
direction.
Background of the Research
Corporate strategy and governance is refers as a essential tool of management which
plays vast role in managing the performance and operations of the firm through providing proper
assistance to their employees. Apple Inc. Is the chosen company for this particular project it is an
American multinational technology company, headquartered is in Cupertino, California. The
company majorly deals in selling consumer electronics, computer software and online services.
The company operates its business operations at wide scale and widely concern on developing
their operations and functions in effective and efficient manner (Ibrahim, 2016). The research
into consideration is based on the influence of Corporate Strategy and Governance on employees
performance of Apple Inc. as a large and well reputed company it is essential for Apple Inc to
conduct its business operations as per corporate strategy and governance policies, in order to
attaining higher growth and profitability within the market place. The major reason for
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conducting the research is to resolving the issues related with corporate strategy and governance
in respect to maximizing the operations and performance of employees. The specified area of
study helps in developing the knowledge and skill base of learner in the area of corporate
strategy and governance.
Research Aim
This considered to be the most essential element of the research as it helps the
investigator in carry out the research activities in right direction (Muzwardi, 2015). The essential
aim of the research is “To analyze the influence of corporate strategy and governance on
employees performance”. A case Study on Apple Inc.
Research Objectives
 To ascertain the concept of Corporate strategy and Governance and structure followed
by Apple Inc.
 To evaluate the Impact of corporate strategy and governance on the performance of
employees within Apple Inc.
 To identify the implication of corporate strategy governance failure.
 To determine the ways to overcome governance failure and role of employees.
Research Questions
 What is the concept of Corporate strategy and Governance and structure followed by
Apple Inc?
 What are the Impact of corporate strategy and governance on the performance of
employees within Apple Inc?
 What are the major implication of corporate strategy governance failure?
 What are the essential ways to overcome governance failure and role of employees?
Literature Review
Corporate strategy is refers as the scope and direction of a corporation and the way in
which its different business activities and operations work together to attain organizational
specific goals. Corporate governance is also an essential term which consist as a system of rules,
practices and processes through which a business organization is concern on managing and
controlling its business operations. As a large business organization Apple Inc is widely concern
on implementing its all business operations as per the guidance of corporate governance, as it
create value in completion of organizational objectives in effective and efficient manner.
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Corporate governance is determined as the set of processes, customs, policies, laws and
institutions affecting the way a corporation is assisted, controlled and administered. In an
organization it is required for the management department to implement effective corporate
strategy and policies so that performance of employees can be developed in effective manner.
Employees and workers are the key aspect of the firm as the whole activities and operations of
an organization is based on the performance of the employees.
Concept of Corporate strategy and Governance and structure followed by Apple Inc
According to Jeston (2014), Corporate governance is a broad concept and it is difficult to
understand and describe. Corporate governance is generally defined as a system which is assisted
company in controlling and directing all its activities in a better manner. This aids company in
providing rights and responsibilities in a right manner. For example: board, managers,
shareholders, stakeholders, executives etc., However, according to some of the definitions it can
be said that corporative governance can be mainly classified into two elements i.e. value
creation indicates setting of long term goals which are achievable and all these objectives are set
by keeping shareholders into consideration. Another element is value protection which is
generally based on accountability of managers along with this all the aspects and interests are
protected so that company can sustain the interest of shareholders as well as stakeholders.
Therefore, if an administration set appropriate laws and regulations than company are
bound to follow these rules which will gradually maximise the profitability of the firm (Rummler
and Brache, 2012). Thus, because of this organisation can add some value in their business and
for its shareholders as well. There is a link between corporative governance and performance of a
company because if company's growth is evaluated on the basis of targets they have achieved in
a speculated time frame.
Henceforth, Corporate Governance provides a framework of rules, regulations which are
generally exercised by companies for achieving goals and objectives. Thus, Apple Inc., are
considering certain key principles of corporative governance and these are rights possessed by
shareholders, firm should equally treat its shareholders so that nobody is entertained or provided
benefits. Maintaining transparency between shareholders and stakeholders so that mutual
understanding can be established. Furthermore, on the basis of this structure followed by Apple
are given below:
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In Apple Inc., Board of directors have eight members and they are well experienced and
have solid leadership. Other than this, three members consist of CEOs and two Chairman.
Benefits of the structure followed by company is that they have a tight control over all the
resources which are essential for different aspects of business activities (Huveneers and Robbins,
2014). Furthermore, every segments of company perform their activities with responsibility in an
effective manner and it is because of systematic procedure of transferring objectives which are to
be achieved. There was a time when Apple Inc. was facing challenges such as decline in sales
and profitability hence, to overcome with this problem company made changes on a regular basis
which in return increased the efficiency of the organisation and development practices.
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Impact of corporate strategy and governance on the performance of employees within
Apple Inc.
According to views and opinion of Hancock and et. al. (2013), it has analysed that
business corporations are created to address those objectives which are more important than
creation of products or services. It defines the purpose of business for satisfying specific needs of
society. In general, such organisations face a tug of war while protecting the interest of
stakeholders (suppliers, customers , employees etc.) and shareholders (legal owners). Therefore,
it is essential for them to work on corporate governance. It provides a detailed disclosure of
information as well as an account of other business data also. For example: Financial situations,
ownership and governance, performance, commitment to ethics and values of business,
relationship with shareholders etc. Within Apple Inc. good corporate governance provides better
access to raise capital which tends to increase economic growth as well (Hair Jr and et. al.,
2015). Governance rules in general, directly impacts on the performance of employees of any
company. As if corporate rules are effective than it may ensure that business environment of
such corporations are fair and transparent. It also reflects that organisations can be held
accountable for actions also. Similarly, poor corporate governance in a firm leads to
mismanagement, waste and corruption. Therefore, it is essential for managers of Apple Inc.
while designing set of governance rules, it should deliver sustainable and effective performance
of business. They should concern on implementing the value of transparency, fairness,
accountability and responsibilities for both stakeholders and shareholders.
As per views of Hafsi and Turgut (2013), it has summarised that concept of corporate
governance includes a system of practices, rules and processes by which a company is directed
and controlled. Therefore, if such policies are made in ethical manner than it will helpful in
getting support of employees for expansion of business. Conversely, a firm can also loss control
over their workers if such rules are failed to create transparency and fairness within workplace.
By applying the core principles of effective corporate governance in terms of accountability,
responsibility, transparency and more, Apple Inc. can boost morale of employees in following
manner:-
 Fairness: It states that well organised compliance and governance programs, tends to
create positive impact on morale of employees. As reputation of any company is based on
attitudes of employees. If corporations like Apple Inc. place an extra burden on its
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governance and compliance requirement then it turns to get high quality and principled
workers. It also helps in increasing productivity of workplace because encouraged and
motivated staff members give support in enhancing efficiency of operational and
production activities. In this regard, it becomes essential for Apple Inc. to make a proper
investment in compliances. It helps managers to make secure agreements with partners
and suppliers on more favourable terms as well as seize upon business opportunities as
well.
 Accountability: It refers to the responsibilities and obligations of corporation which
gives an explanation for business actions and conducted activities. In this regard, Apple
Inc. its managers are required to give an explanation about balanced assessment of
position and prospects of company (Grayson and Hodges, 2017). They are also
responsible to determine nature and extent of risks that business is willing to take.
Furthermore, by giving information to employees and communicate with them at regular
basis, aid this firm in getting cooperation of them for implementing new policies.
 Responsibility: The Board of Directors (BOD) of Apple Inc. have authority to assign
roles and responsibilities to workers. They are also responsible to monitor the
management and affairs of company. Therefore, BOD should be made accountable to
workers for the way in which they have to carry out their activities.
 Transparency: It is the main key role of corporate governance which provides clear
information to employees. It includes business activities, future plans and objectives as
well as risks associated with business strategies. The transparency refers to willingness
and openness to disclose performance related to finance of a company. Therefore, Apple
Inc. must include workers in decision making processes and give them opportunity to
share their views and opinion on the same.
Major implication of corporate strategy governance failure
As per perceptions of Forth and et. al. (2013), it has evaluated that corporate strategy
governance is mostly incorporated by companies in order to improve business operations as it
helps in providing s structure through which entire task and activities can be directed and
managed. But it is a debatable concept because it has some limitations which can hamper
company's performance. Some of the failure of corporate strategy governance are mentioned
below:
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Putting pressure on employees: Most of the companies can put pressure on managers
and employees in order to achieve targets and convincing their shareholders as well as
stakeholders (Saeidi and et. al., 2015). For example: Making changes in set policies and
organisational structure, directly impacts on working procedure of employees. It puts pressure on
them to accept modifications and work as per requirement of business. It leads to decrease
morale of workers which turns to decrease their productivity and level of performance also.
Ineffective Power Distribution: One of the important reasons of failure of corporate
strategy governance is the ineffective distribution of power between Chairman and CEO of a
company. It is very necessary for organisations to differentiate roles of these two entities. In
some cases, both the positions are occupied by a single individual. This results in over
concentration of power which in turn dilutes the possibility of the board supervising company’s
management.
Risk Management: It is very important for companies to establish efficient risk
management practices within the organisation. Many organisations facilitate weak risk
management, which can be a grave danger for all the organisation’s functions. Ineffective
strategies to avoid contingencies cause corporate strategy governance failures.
Flow of Information: It is crucial that the organisation adopts practices in which the flow
of information is in a systematic and timely manner (Schaltegger and Wagner, 2017).
Information is very useful for the board as it makes them familiar with the strategies, risks and
performances of the organisation’s CEO. A board requires important information regularly
which sets a base for their further roles. Inefficiency in this system causes ambiguity in the
organisation’s structure and corporate strategies fail.
Weak Internal Management: A weak internal management causes inefficiency in the
operations of a firm. Organisations tend to under-deliver in cases where the internal management
is weak. In times of change or formulation of new policies, weaker management fails in
implementing these strategies in the organisation. As a result, risk level rises and corporate
strategies fail.
Inadequate Policies: Generally, due to non-evaluation of procedures and policies, the
firm implements those policies which drives organisation towards loss. Weak strategies cause
ineffectiveness in an organisation’s functions. It hinders performance of employees as well as
overall management of a company.
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Poor Documentation: For the upper management to form stronger and flexible strategies,
it is important that proper documentation with accurate facts and figures be presented to the
Board (Epstein, 2018). Poor documentation would cause rise in misinformation and formulation
of weaker strategies.
Conflicts of interest: It is required that outside directors aim at gaining profits for the firm
rather than themselves. Sometimes too many outside directors cause such conflicts of interests
and corporate strategies fail to attain the set objectives of the firm. Moreover, such conflicts
cause enhances unethical practices within the organisation and set an example for the employees
to wrongly attain their personal goals rather than that of the company.
Improper Audit: Financial data and statistics of a company are contributing factors
towards formulation of effective corporate strategies. Improper auditing and aggressive
accounting practices not only generate incorrect data, but also change the perspective of the
board towards company’s strengths and weaknesses. Inefficient auditors often cause misbalance
in company’s financial resources which causes under or overutilization of these resources.
Corporate strategy governance failures drive an organisation towards ineffectiveness and
incompetence. Outcomes of these failures are weaker management which makes it even more
complex for the company to achieve its goals (Eccles, Ioannou and Serafeim, 2012). Ineffective
policies and responsibilities often increase conflicts and poor decision making in complex
situations. Thus, companies must avoid these threats and weaknesses in order to eradicate
friction from their operations.
Essential ways to overcome governance failure and role of employees
As given by Du,and et. al. (2013), corporate governance, a process through which
business organisations can control or direct themselves with an ease. It has been analysed that
governance mainly includes principles that carries distribution of rights and responsibilities
among different participants in the corporation and some of these are: board of directors (BOD),
managers, shareholders, creditors, auditors, regulators, and other stakeholders and includes the
rules and procedures for making decisions in corporate affairs. In previous years, governance has
helped business firms in raising themselves up where they can get high range opportunities as
well but it did not helped out from preventing organisations with financial crisis and corporate
collapses. Trying to resolve problems with the help of corporate governance is not at being
considered as an easy task. Therefore, it is not just some technical or implementation issues, but
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more about the issues of paradigms, governing approaches and the orientation of corporate
governance systems, which are deeply deep-rooted in Anglo-American financial capitalism. In
context of Apple, it is required for organisation to understand the whole process related to
corporate governance. So that they may easily find out a number of ways related to overcome
from governance failure.
Some of ways in present context are given below: Increase Diversity : This is being considered as one of crucial way through which
corporate governance failure can be reduced to minimal. Recruiting more and more
women in Apple and bring them equal to the number of male employees (De Grosbois,
2012). With the help of bringing more female staff at workplace can help Apple and other
business organisations in improving performance and overcome governance failure. Appoint Competent Board Members : Another way through which nominating committee
of the organisation should deliver adequate time so that to identify board members who
have the skills and industry knowledge to assist the board. Ensure Timely Information : Timely information results in better decision-making. Senior
management has to provide timely information to ensure proper board supervision and
direction. Board members, however, should not be overwhelmed with information. This
may lead firms to improve corporate governance in much effective and efficient ways at
workplace.
 Prioritize Risk Management : In present time, this is also being considered as a way that
may easily help board to establish a much more effective system so that risks can be
managed with an ease. “Risk” is not confined to compliance risks. It is a broader term
which incorporates all of the risks to Apple.
According to views of Chang (2016), employees plays a crucial role when it comes to
prevent an organisation from facing number of problems like governance failure and some on.
Few of their roles are mentioned beneath:
 Employees within an organisation needs to be serious about their work.
 It is important for staff to have proper knowledge regarding products and services of the
company. It is also necessary for them to avoid spreading fake information and they also
should not take things lightly.
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 Apart from this, it is being considered as another role of staff to respect both company
and to staff members as well with an ease.
 Another role of employees of Apple to think out of the box and always keep their
behaviour positive in nature and try to come up with innovative ideas and strategies to
overcome tough times as soon as possible. On the other hand, it is also required for staff
members to must identify the causes of crisis and devise relevant strategies and ways to
avoid it and this may lead business firms to overcome governance failure.
Secondary and primary research undertaken
Research is process through which data is collected by investigator in respect to research
topic. It is essential an individual ascertain knowledge and information for conducting activities
in creative and systematic manner. Primary and secondary are tools through which investigator
collect past and current data from marketplace and public. Documentation, exploitation,
reporting and interpretation are various tasks which are executed by researcher. Original
research, artistic research, research in humanities and scientific research are various categories in
which an investigation can be used. In organisation, research is executed by senior for gaining
information about firm's market image (Lee and et. al., 2013). They require to have knowledge
about quality of items and services for making conclusion about offerings. Henceforth, these are
two bases in which researches are executed are described beneath:
Exploratory: It is kind of investigation which comprises open ended questions that result
into lengthy interviews. Researcher didn't have predetermined set of questions which they
directly ask from client to gain feedback and opinions. When they interview people than
communication process enlarges which result into timely activity of investigation. Researcher
keep on asking questions to gain insight and depth knowledge in respect to topic or problem of
investigation. Thus, this is effective method by which investigator collects adequate information
for making appropriate results and outcomes.
Specific: This is another form of research from which investigator collect information in
respect to concerned topic. For this, individual formulate questionnaire and make plan in respect
to execute activities systematically. This helps researcher to save from lengthy research work and
collect adequate knowledge for making adequate conclusions. They are also able to solve
problems for benefit in respect to research.
Data collection: These are two types of data collection which are stated below:
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