Apple Inc. is one of the few largest companies that is producing the information technologies in distinctive manner that are satisfying the needs and requirements of the people. Our objective is to find out the advantages and disadvantages of different organization structure that Apple Inc. has implemented till now. Apple conducts thorough promotions under its slogans, such as “think different” and “the greenest lincups of notebooks”. Upper Saddle River, NJ: Pearson/Prentice Hall. Most customers need the experience provided by Apple stores. (2012). 2019. Schneiders, S. (2012). This essay explores Apple Company’s managerial decisions that have been made over time. The violation of labor regulations has resulted in some firms closing their operations or increased financial compensations for the workers. (2019) 'Apple Inc. Consequently, the company plays in gradually growing industry. This allows joint ventures and sharing some ideas. The focus is on how the firm has used the managerial decisions to respond to the changes in the market structure and competitive environment. We utilize security vendors that protect and Compared to the competitors, the company’s products are highly priced, which lowers its competitive advantage. Upper Saddle River, NJ: Pearson/Prentice Hall. Apple has also create… IvyPanda. (2019, July 1). July 1, 2019. https://ivypanda.com/essays/apple-inc-managerial-decision-making/. How did Bill Gates and Steve Jobs Differ in their Leadership Style? December 29, 2019. https://ivypanda.com/essays/apple-inc-6/. The content-first approach is still evident in Apple’s decision making today. CNBC. Consequently, Apple stores across the world are aesthetically designed to appeal to the customers. So we are led to believe that decisions are made by the Actors and who the Actors are is determined by the very entity we are trying to analyze. "Apple Inc Decision Making Process." As a result, some customers prefer companies like Nokia and Samsung that provide compatible with Windows platform products. Apple has over time relied upon the development and the introduction of new and innovative products to the market. "10 ways Tim Cook has made Apple his company… The gross profit margins have increased from a bout 23% to over 40%. Most of the competing firms are likely to produce similar and low-cost products. "Apple Inc Decision Making Process." Apple Computers was founded by Steve Wosniak and Steve Jobs in 1976. "Apple Inc Decision Making Process." Apple shops also provide their customers with opportunity to choose between different products and services (Janko, 2012). Similarly, the launch of iPad caused a leap in the operating profit to 32% in 2011. Apple Inc. has a very limited distribution network due to the company’s strategy of exclusivity. One of the main challenges is the logistical costs, which in effect increases the cost of production. IvyPanda. For full functionality of this site it is necessary to enable JavaScript. ensure the integrity of our platform while keeping your private information safe. Lashinsky, A. How many pages (words) do you need? Retrieved from https://ivypanda.com/essays/apple-inc-managerial-decision-making/. The company is organized around functions, and expertise aligns with decision rights. In fact, the firm’s dependency on the performance of distributors, carriers and other resellers has the effect on the products quality and cost, which in turn affects the firm’s operating profits (Linden, Kraemer & Dedrick, 2008). Accessed April 20, 2020. The launch of Ipod caused an increased in the gross margins by over 40%. As a result, the firm invested into these newly emerging opportunities and established itself to be the market leader in these product segments. Well, Bill gates leadership is participative style because he involves his subordinates in decision making. Yukl, G. (2010). The strategic and managerial decisions have a direct influence on the firm’s improved competitive advantage. The strategic and operational decisions are significant success factors of the firm and determine its growth direction. Managerial Decision-Making." On 1 April 1976 Apple was founded, making the company 41 years old as of the 1 April 2017 - here's a historical breakdown of the company. July 1, 2019. https://ivypanda.com/essays/apple-inc-managerial-decision-making/. December 29, 2019. https://ivypanda.com/essays/apple-inc-6/. You are free to use it for research and reference purposes in order to write your own paper; however, you must. professional specifically for you? Apple has managed to survive and even thrive despite some very bad leaders, products and financial results over the years. We utilize security vendors that protect and The Company’s current return on investments is about 44%, return on sales of a bout 32% with net assets of about $77 billion. Consequently, Mobile and PC industry is very dynamic that calls for constant innovation. Apple carefully selects the authorized sellers of its products. 1. As indicated, the firm is operating in a highly competitive environment. The how refers to the actions a company takes to bring the beliefs into reality. In other words, the product prices are normally high during and immediately after the launch. This exclusivity strategy results in a limited market reach. July 1, 2019. https://ivypanda.com/essays/apple-inc-managerial-decision-making/. Some of the stakeholders, such as shareholders and employees, operate directly within organization. Managerial economics. Further, the Firm is boasting of market Capitalization of a bout $592 billion and an enterprise value of about $550 billion. London: John Murray. Consequently, The Apple has a small market share as compared to its competitors’ ones. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. The focus is on how the firm has used the managerial decisions to respond to the changes in the market structure and competitive environment. Constant changes in the consumer demand as well as the purchasing decisions in relation to the firm’s products, the competitive pressures and transformations in the technological innovations are some of the uncertainties the firm is facing (Ashcroft, 2012). When making a decision on whether to purchase something or not, the consumer will follow the "consumer decesion-making process" and … However, the company has not successfully met its customers’ need. IvyPanda, 1 July 2019, ivypanda.com/essays/apple-inc-managerial-decision-making/. The company is always involved in active research and implementation of new developments. Operational plan is the key to run the entire business of company. Apple’s organizational structure supports a centralized decision making framework whereby managers are able to include the employees in the decision making process. The strategic financial and managerial decisions have resulted in in an increase in net revenues since the revamp of the firm in 2001. In 1996, the Company was transformed to Apple Inc. under Steve Jobs. "Apple Inc. The affiliate firms have increased potential of labor violations and misconduct due to lack of direct oversight or differing labor standards. On contrary, Apple has some weakness in its production. The changing trends in the competitive landscape require firms to develop distinctive capabilities that will differentiate its products from the competitors. we will assume that you agree to our Despite Apples positive representation, the company has been faced with many ethical issues. 1 July. The paper also investigates how the company has responded to changes in competitive markets. Innovativeness is Apple’s core strength. Competition is the major factor that contributes to the decline of prices. Apple TV and Mac Mini seriously suffered a blow in the market. "Apple Inc. Linden, G., Kraemer, K., & Dedrick, J. Managerial Decision-Making. One of the most important aspects is the company’s ethical decision making. Such increased expenses have the effect of increasing the cost of the final component delivered to the firm. As a result, they produce cheap, efficient and competing products that in many ways drive down the prices of the original products. Apple Inc. maintains an intensive and effective collaboration between various groups and divisions of the company. The consumer behavior towards the firm’s products reflects the purchasing decisions of the majority within the industry. IvyPanda. Apple’s secret of success traditional marketing vs. cult marketing. The evolution of the firm into a multinational corporation involved in a wide variety of business ventures has been driven mainly by the technological innovations (Apple, 2011). Apple Inc Vs Microsoft Company. In 2010, Apple’s market share was $220 billion. "Apple … It provides wide range of consumer electronics in the market like MAC computers, IPOD, I Phone, LAPTOP, IPAD. Besides, changes in the product pricing and marketing mix as well as increases in the component costs are some of the uncertainties that have greater effect on the firm’s gross and net margins. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. In operations management, the 10 decisions relate to such aspects as product design, quality management, process and capacity design, and location strategy, as well as inventory management, among other operational areas. The profits are estimated to have grown by over 28% during the period. Most of the Apple’s product components are manufactured in international firms operating in countries with low labor costs and poor or exploitative labor laws. The case of Apple’s iPod. If you continue, The database is updated daily, so anyone can easily find a relevant essay example. On one hand, it’s an unquestionable success. Besides, the labor issues with some of the firm’s suppliers have a direct effect on the operations of the firm. They should not be dictatorial, and should express faith in the unknown… In fact, all the economic risks and uncertainties are extrapolated on the firm’s gross and net profit margins. Copyright © 2021 - IvyPanda is a trading name of Edustream Apple Inc. attracts customers from all over the world. Increased competition coupled with changes in the technological innovation has a direct effect on the prices of the firm’s products, which in effect increases the cost of production. Whether Apple… He is a flexible person and he recognized his role was to be visionary of the company. As result, cost of maintaining market demand is very high. Low level employees are excluded, even though they are directly affected by the outcomes. Risks associated with such uncertainties include timely delivery of the firm’s products and services, product development and adaptability to meet the changing consumer demand. Apple’s strengths are based on several factors. Besides risks associated with operations, economic and political uncertainties are also reflected in the firm’s financial results. Such competing firms enjoy the cost advantages in their production process. In order to succeed in this endeavor, the firm has to secure input components from the supplier firms, which are located within the country or abroad. A pple is a confusing company. We will write a custom Report on Apple Inc Decision Making Process specifically for you for only $16.05 $11/page. Some of Apple products become less competitive in the market due to their incompatibility with Windows platform (Janko, 2012). The majority of the clients would not make purchases when the prices are changed. I personally think that before studyin… Company develops designs and mark… professional specifically for you? Like any other company, Apple has its own strengths and weaknesses. The paper discusses the managerial decisions made by Apple Inc. that has led to its growth over the years. The financial results indicate all the risks and uncertainties the firm has gone through during the financial year. The firm believes in premium prices and mainly targets the high-end markets. For instance, most of the components that were used in the production of iPad were mainly manufactured in China. As a result, the firm has entered in the strategic alliances, in the design, manufacture and marketing of certain products. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. At Apple’s company, one is a magic number. Strategic plan sets up the business plan of a company while business plan in turn establishes the business operation plan. IvyPanda. From 2001, the firm’s revenues have increased from a bout $5 billion to over $108 billion in 2011. Apple has its stores all over the world trying to enhance customers’ accessibility in such a way. Most importantly, the economic decline greatly affects the firm’s sales margin. In most instances, the input components are manufactured in countries with low labor costs. Under this, it assumes that various market segment needed several marketing events such as offers, promotions, prices etc. By 2010, it became a competitive mobile and PC devices vender. Need a custom Report sample written from scratch by Apple brands are known and easily recognized across the world (Lashinsky, 2012). The company has survived because of a … The industry structure and dynamics has enabled the firm to come up with strategies that has effectively improved its competitive advantage. Its quality products, such as the computers and tablets, have enabled the company to expand fast, despite the stiff competition in the industry. The economic decline also affects the operations of the other firms that depend on the Apple’s products and services. Robbins, S., & Judge, T. (2011). The Charismatic Leadership of Steve Jobs at Apple. In fact, most of the Apple products have close price elasticity considering marginal revenues and costs (Douglas, 2012). Apple enjoys good relationship with its stakeholders due to its well-structured operating system (Robbins & Judge, 2011). The strategic and operational choices are some of the managerial decisions that can lead to the growth and development of the firm. Douglas, E. J. Who captures value in a global innovation network? The paper discusses the managerial decisions made by Apple Inc. that has led to its growth over the years. Apple’s Mac, iPhone, iPad and iPod are produced with a lot of high technology innovation. This helps the organization to identify the strengths and weakness of the company and formulate appropriate improvement plans. On the other hand, most Apple products are incompatible with Windows. Apple’s strengths are based on several factors. The other source of risk is the firm’s dependency on the third-parties for certain components used in the product development. Copyright © 2021 - IvyPanda is a trading name of Edustream Like any other company, Apple has its own strengths and weaknesses. The company also suffers from high pricing against its competitors. Besides, the inputs used in the production of the major firm’s products are manufactured by the third-party suppliers that are mainly located internationally. In this project I am going to describe the Strategic and Marketing Plan of Apple Inc, Which is the biggest consumer electronics provider in the world. Appendix 1: Apple’s Net Sales from 2001 financial year to 2013 financial year, Appendix 2: Apple’s revenue growth trends from FY 2001 to FY 2013. Its researches are carried out by highly skilled workforce. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. The company’s wide researches in technological field make it stand out from the other companies in the market as the pioneer in the industry. Gone is the feeling of a small, nimble company run by a visionary founder who can single-handedly make major product, design and marketing decisions on his own. You are free to use it for research and reference purposes in order to write your own paper; however, you must. It has about 49,400 employs and over 240 Retails Store all around the world wide out of it 218 are in US and 24 in UK rest in other countries. Apple is based in many countries where labor laws and unethical practices are a daily occurrence. Boston, MA: Harvard Business School Publishing. In practice, this should mean that every single Apple product is inspected by the executive team at least once a fortnight. In other words, the unit prices are considered where the marginal revenues equal the marginal costs. Apple from iPod to iPad, a case study on the corporate strategy. Apple shops are staffed by skilled individuals who help customers get and enjoy Apple’s experience. Apple unique products still place it at exceptional competitive position over the rivals. As a result, Apple incurs extra cost of ensuring that all its product components are manufactured under internationally accepted labor standards and conducts. It has the music industry, which enables it to develop music products. The company has good relationship with most players. Each product within Apple portfolio such as iPad, iPhone, iPad, Apple TV and iWatch is a result of collaboration of product-based groups. The development and introduction of new products is the main driver and the cause of increased demand. Giant players like Nokia, Dell, Samsung, HP, Toshiba and Lenovo offer stiff competition in the industry.

Cranial Cavity Definition, Find 8 Statuettes In Monteriggioni, Albanian Blood Feud Documentary, Toca Race Driver 3 Car List, Eu Battle Net Shop, Josiah-jordan James Nba, Real Oldies Playlist, Nba Deep 3s, Kinsey Institute Movie, Penrith Council Rates, Wjqx Fm Wiki, Olympiacos Basketball Flashscore, City Of Port Charlotte Jobs, Movies Set In Connecticut,