MAN5058: Management Strategies for Apple Inc. - Report

This report provides a comprehensive analysis of management strategies, focusing on their importance in achieving business success and competitive advantage. The literature review explores various management strategies, including strategic planning, leadership, and operational, functional, and corporate strategies, emphasizing their role in resource allocation and adapting to the competitive environment. The case study centers on Apple Inc., examining its history, product offerings, strengths, and weaknesses. The analysis delves into Apple's organizational structure, employee management, and strategies for maintaining quality and fostering innovation. It highlights how the company has adapted its management techniques over time, especially during the development of the iPhone, and the importance of maintaining quality standards and employee motivation. The report also discusses the company's approach to innovation, including maintaining secrecy and focusing on product quality, while also mentioning the importance of employee motivation through bonus schemes and other incentives. The report concludes with recommendations based on the analysis of Apple's management strategies.

Management Strategies: Apple

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Contents
1.0 Introduction................................................................................................................................2
2.0 Literature review........................................................................................................................3
3.0 Case study: Apple Inc................................................................................................................5
4.0 Analysis.....................................................................................................................................6
5.0 Conclusion...............................................................................................................................10
6.0 Recommendation.....................................................................................................................12
7.0 References................................................................................................................................13
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1.0 Introduction
This essay explores the concept of management strategies which prevents any business failure
and helps the organization to gain a competitive advantage. Management strategies, its
significance and implementation in business is studied and analyzed in detail. The essay views
that management strategies are the steps followed by the business to achieve the long term
objectives.The literary evidence supports that management strategies can be considered as a
procedure of determining an organization's goals, creating business policies and plans to
accomplish these goals and the assignment of resources toward actualizing the policies and
achieving these targets. Above all, this procedure is a dynamic procedure which envelops every
one of the enterprises and organizations in which the organization is engaged with a structure
much the same as that of game theory. The analysis is done considering the case study of
technology leader known as Apple Inc. Firstly the meaning, significance and types of
management strategies followed in businesses are discussed in the literature review. This is then
followed by the presentation of the case study and its critical analysis. Based on the analysis
done, a conclusive paragraph is structured. In the last section of the essay; few recommendations
are made in context to the topic of the essay writing(Khan & Alam, 2015).
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2.0 Literature review
Management strategy is the combination of both strategy formulation and implementation where
basically the competitors of business are assessed and strategies are formulated to counter each
and every move of the competitors. Development of management strategies is important for the
success of any business. Strategic planning assists the business in accomplishing the desired
objectives through efficient resources allocation.
Management strategies are the methods that are utilized to direct and control any business or
company to attain a set of goals. The management strategies mainly include strategies like
leadership, administration and strategies for business execution. Such strategies assist the senior
leaders to utilize the company’s resources such as financial, technological, human or information
based in the most effective manner. According to Tapera (2014), management strategies act as a
blueprint and guide the managers to manage their working employees in the best possible way. It
also helps them to implement change and direct the association's long haul business and
development strategies. There are few management strategies which specifically focus on the
organizational operation facet like growth or employee relationship and few strategies focus on
integrating all facets for the betterment of the organization, employees and the customers.
Different types of management strategies like operational, functional and corporate are
mandatory to build sustainable competitive advantage (Tapera, 2014). Illhan and Durmaz(2015)
discussed some growth strategies mostly used by the businesses and argued that the most
important elements for keeping the organization alive in the present computational, quickly
developing world is growth strategies and the result of these strategies. The cutthroat competitive
environment enhances the significance of scale in businesses. Growth is no more the motive in
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this competitive market but has now turned into a necessity for a business. Today, businesses
target to utilize their resources efficiently so that they can attain competitive advantages in fierce
competition and survive till long term in future. Business management regulates the growth
strategies according to the business structure and competitive environment along with
implementing of analysis and techniques which will eliminate the bottlenecks such as
competitors, suppliers, technological developments etc. The most important analysis includes the
PEST analysis which allows the managers to analyze the company’s external macro
environment. Strategists analyze with the help of this tool and understand how their
organizational model will have to be emerged to adjust in the changing environment. The four
components of this tool are beyond the control at times; that is the reason they become a threat to
the company. To gain a competitive advantage most of the managers focus on the technological
factors as this component can be somehow controlled and managed. Under this factor
organizations are required to monitor the technological advancements taking place in the market.
They should also focus on aspects like what will be the influence of technology development on
their product offering, distribution, manufacturing & design, cost structure, value chain structure
and rate of technological diffusion. The technology factors put forwards the opportunities for the
company.
The authors categorized the growth strategies in two categories that are organic and inorganic
strategies. Organic strategies comprise of internal growth and profit making by expanding the
product range or improving the innovation whereas inorganic strategies include the growth with
the help of mergers and partnership with other companies (Yi-Chen & Hsing, 2008). In this
competitive era, organizations are switching from individual management mode to collaborative
management mode of business model. Such mode of management involves transparency of
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information and quick response to the consumer’s requirement. Such type of business model
involves a group of many concerned people such as designers, consultants, suppliers, customers,
managers and engineers. This strategy adds an extra advantage to the management strategies
adopted by the company or business. In order to figure out the objectives and mission of the
business, it should first analyze its internal and external environment or barriers which it has to
up front in future (Ilhan & Durmaz, 2015). By successfully arranging the management strategies;
a business can easily recognize its mission and objectives. This means that it is very important
for any business to understand the strategy, strategic planning and what management strategies to
be pursued. These days’ management strategies followed by any business decide its market
position. Athapaththu (2016), in his research work, discussed the strategic management and
importance of management strategies in running a business. He stressed that it should be kept in
mind that being a huge organization isn't just about selling of products or services, it is
additionally about having an effect and an enduring impression in the brains of your customers
(Athapaththu, 2016).
3.0 Case study: Apple Inc
Apple Inc is the world known American multinational company which is headquartered in
California. It is a technology-oriented business which designs, manufactures and sells electronic
gadgets, software and online services to the customers around the globe. This company own
more than 200 retail stores in the United States.Apple Company was established in 1976 by
Steve Jobs and co-founders. The first product launched by the company was the Apple I
Computer which was not a finished product, despite this fact it grabbed the attention of many
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customers(Duzansky & Duffner, 2017). In between 1983 to 1984 it entered in the list of Fortune
500 companies and in this same period John Sculley was appointed as its CEO. In 1985, Steve
Jobs was forced out of the business and then he returned back to the company in the year 1997.
The company name was changed to Apple Inc in the year 2007. This business is known to
provide reliable and technology-based products with utmost quality. This has built a strong brand
image and market value among its customers. The company keeps on evaluating its internal and
external environment to gain a competitive position in the market; especially among its
competitors. It has a number of strengths in credit which include a wide range of products
offered to the customers, high quality of products and services, efficient and strong branding and
marketing strategies used, it is known for the innovation and putting the essence of the latest
technology in all its products. Apple Inc has also very strong distribution channels which have
resulted in grabbing a major share of this industry(Wang & Ma, 2015). The biggest weaknesses
of Apple Inc are its high price of products and non- compatibility of products. The company
holds a good market position and stands the second most valuable brand among all its main
competitors like Microsoft, Dell, Lenovo(Computers) and Samsung, BlackBerry,
Xiaomi(Smartphone)(Lazonick & Tulum, 2013).
4.0 Analysis
In this computerized and technological world, lot of competition is witnessed where the structure
of a company demands to balance the advantages of a free and inventive workforce at the same
time utilizing inflexible rules to guarantee cost control and effectiveness. Apple Inc Company
tried to manage this management zone at the time of restructuring the organization in 1992.
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Some of the techniques used by the company in that era seemed to be fruitful whereas few
appeared vague and depicted that they want to be able to solve this grey area(Asgarali, Wang, &
Paik, 2014).
In 1992, Apple's management has received the feedback from its employees where it is evident
that employees have provided negative feedback highlighting that their upper management is
very inexperienced instead it should include the workers promoted inside the company. The
senior managers were new in the organization whereas the lower employees were working for
many years in the organization at the same levels. This decreased the morale of employees and
resulted in losing interest in product innovation and profitability(Gosnar, 2012). The employees
of the company were satisfactorily educated and realize the products too, if worse, than the
majority of the board, and may conceivably prompt the subordinates undermining any
suggestions made by their seniors. For the employees performing exceptionally, compensation
and bonus were the media to motivate them(Sharma, 2013). The structuring of the bonus
schemes for all the employees was based on the organizational goal but the lower level
employees were not directly responsible for the achievement of the company’s goals. It is
suggested by the authors that every division ought to have its own autonomous measures to
decide rewards. These measures should just comprise of objectives that they have direct
command over. In the event that an employee's reward is subject to an objective that their
activity influences, it gives them the motivation to exceed expectations at their individual
obligations in the association (Murphy, 2015).The compensation of the seniors should be based
on ACPI's as they are subject to the success of the company. Apple's new strategy required an
enhancement in productivity, which implies the increment in speed. This is because Apple has a
very lively and pleasant environment in all its offices where employees still love the work
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environment but they do not love their work. People were forced to work for a longer duration
with limited resources depicting the issue of burnout. Apple's employee management appeared to
give its "a chance to "people" down. It is evident from the literature that managers can positively
affect the culture of the organization(Corpas, 2009).
After that period, over the years Apple improved its management strategies. When the company
started its new project “iPhone”; it placed the most suitable employees and smart people on that
new project. The company poached talented employees from the Mac group. Moreover, another
strategy prevalent in this company is that the company does not leak any secret of new product
development. It avoids the most up to date item in the pipeline from taking the roar of what's as
of now available. It additionally encourages representatives to remain head-down and
concentrated without anyone else work as opposed to agonizing over what other individuals are
doing. Apple's other strategy is the maintenance of quality (IHS Inc., 2017). This management
strategy focuses on maintaining product quality standards. The senior operational manager of
Apple coordinates with other senior managers to ensure compliance with the quality and
controlling of the products. The company is famous for its quality that can be seen in the areas
such as product designing, development, sales, marketing and HRM. This company also focuses
on the process and capacity design strategy where workers are motivated to enhance their
capacity to work for innovation and development. Moreover, the organization works with
suppliers to guarantee effective procedures. For example, they are given orders for procedure
configuration, along with the Supplier’s Code of Conduct to streamline their (HRM) human
resources management. Also, Apple Inc. makes progress toward innovation in its offices to
improve limit and procedure proficiency. The job design and human resource strategies are
structured on the basis of excellence of Steve Jobs. However, Apple is gradually changing its
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human resources strategies under the supervision of Tim Cook, where it is seen that the company
is working to mirror a progressively amiable work environment for ideal worker morale. This
business has aced job design and HR strategies to guarantee continued support(Miller, 2013).
The organizational structure of Apple Inc contributes to compelling and brisk innovation which
is a basic achievement factor required for any business pertinent to the data innovation, online
administrations, and purchaser gadgets enterprises. Its corporate structure is the mixture of
employee groups, resources and cross connections between these groups & resources. The design
of the organization indicates the development of organizational structure and its management. Its
corporate structure is the mixture of employee groups, resources and cross connections between
these groups & resources. The design of the organization indicates the development of
organizational structure and its management. Apple's corporate structure reinforces strategies
that push advanced technological innovation. The structure has been modified a bit to meet the
customer's expectations and global market demand(Corpas, 2009).
Porter's five force analysis depicts that there exists strong competition from the rivals, still, the
corporate structure of Apple ensures leadership in this industry.This company successfully
designed iPhones and iPads because it did not focus on the group rather it focused on what they
wanted to design and use. According to business insider, Apple does not focus on the group as
mentioned above but it strongly monitors what it customers are doing on their gadgets. This
helps the company to decide what to pursue next. For instance, recently Apple noticed that their
customers like to use Apple Tv on their gadgets, so the company is in the process to make it go
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in the main market (Yarow, 2012). Another management strategy which is applied in the
company is “Directly responsible Individual”. This has become the main phrase of the internal
environment. For each feature or product offered by the Company, someone can be held
responsible for the outcome (success or failure). The management says, there is no scope for
excuses. If a person is assigned responsibility and he or she is leading the team, then the work
has to be accomplished. The innovation strategy of Apple is focused on reactive and proactive
innovation which is built to promote simplicity. This is accomplished by taking hints from
already manufactured products, enhancement in quality of existing products by eliminating the
undesired qualities from them and further integrating the differential features in them. Then
novel functionalities are introduced and reinvented to provide a better experience to the
customers(Meyer, 2017). This proactive and reactive approach has made Apple leave a long-
lasting influence on their customers as well as in the industry. For instance, iPod and iTunes
reformed the music industry; promoting digital music.
Another remarkable management strategy is its manufacturing and supply chain. Apple Inc has
increased its efficiency and effectiveness by outsourcing the essential ports used in their
products. It does not own the production facilities, rather the hardware parts (such as display
panels) are purchased from the third party. This business also selects a lean and agile supply
chain strategy alternatively depending upon the market scenario and industry directions. Along
with this supply chain strategy, it also uses full control feature wherein the company designs the
hardware itself, programs it and then get it outsourced from manufacturers(Kerr, 2015).
Structuring and formation of the equipment, having third-party manufacturers adhere to
guidelines on the spot, building up the base OS(operating system), and controlling third-party
application engineers imply that Apple has significant authority over a closed ecosystem. This
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specialist enables the organization to advance and synchronize equipment and programming
activities, in this manner bringing about the generation of an increasingly streamlined gadget.The
company's online appearance is additionally firm, particularly with the presence of a virtual
commercial centre where the organization sells computerized content through App store, iTunes
and remarkable iBookstore among other online stages. It can be said that Apple Inc thrives to
gain customer's loyalty and trust by providing them quality products. The key aspect is that it has
a strong management team and the company is optimally organized(Jinjin, 2013).
5.0 Conclusion
The role of management strategies in the success of any business has been studied and critically
analyzed in this essay writing through the case study on one of the fortunes 500 company that is
"Apple Inc". There are many types of management strategies which help the company to gain a
competitive position in the market. These strategies include operational, functional, corporate,
leadership and administration strategies. Apple Inc is a world known leading multinational
company in the technology sector. Though it faces fierce competition from its rivals such as
Dell, IBM, Samsung, Microsoft etc, it's management strategies always put it on the topmost
position. The organization is presently enjoying an additional competitive benefit in the
technology sector by following the effective dive into both the computer and smartphone
industry. Till date, no other company has yet provided their customer what they want well in
advance they know their own requirement. This is only viable due to the creative approach and
vision of the company's leader Steve Jobs and his dedicated employees who work dynamically as
per the expectations of their leader. Great Marketing and great management strategy are both
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