Background Of Apple Inc Commerce Essay
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Apple Inc. is a company that designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players. Apple Inc. also sells a variety of related software, services, peripherals, networking solutions, third-party digital content and applications. The company sells products and services such as iPhone , iPad , Mac , iPod , Apple TV , a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud , and a variety of accessory, service and support offerings. Furthermore, the company also sells and delivers digital content and applications through online stores the iTunes Store, App Store, iBookstore, and Mac App Store. The company sells its products globally through its retail stores, online stores, direct sales force, through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Not only that, the company sells a variety of third-party iPhone, iPad, Mac and iPod compatible products. The company's target market is end user consumers, small and mid-sized businesses ("SMB"), and education, enterprise and government customers.
Steve Jobs, Ron Wayne and Steve Wozniak were the founder of Apple Inc. In 1976, they invented the first Apple computer which consists of not only circuit board with costs under $700 in Palo Alto, California.
They improved the first Apple computer by adding one-megahertz processor and named Apple II became first mass-produced computer in year 1977.Apple officially became a public traded company in 1980. Apple Inc. continued developing a better computer in later years and the first personal computer with feature which has a mouse for navigating and desktop icons and folders called Lisa but this product unable to stay in the market due to high cost of production.
On 2007, Apple had kicked off the era of the touch screen smartphone with the invention of first iPhone. This innovation has made a huge change in the smartphone market because it caught the attention of the consumers. On 2010, again Apple unveiled the iPad tablet computer and Apple has passed Microsoft as the largest US technology company in term of market value in May.
On 2011, the co-founder Steve Jobs announced his resignation as Chief executive Officer of Apple due to health problem and the Chief Operating Officer, Timothy D. Cook took over his place as the new Chief Executive Officer of Apple.
In 2012 September, Apple has introduced its new iPhone 5 which is the lighter, thinner and more powerful of its mobile devices. This new product captured the attention of the whole world by getting a pre-order of 2 million and it is twice than the previous iPhone 4S.
"Apple is committed to to bring the best personal computing experience to different groups of people like students educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offering."Retrieved from Apple, 2009 Annual Report.
Apple Inc. is in a competitive and fast-paced business environment. Everything might change even in the next second. Therefore, it is important for Apple Inc. to be ahead of its competitors. In order to provide the best technology experience to customers, employees are given the freedom to improve products if they found any issues after they used product. Employees do not need to go under procedures that will consume a lot of times. The issues of the product might be the weakness of the company if it is not improve or solve.
Apple Inc. plan to build brand loyalty in customers. The mission in Apple Store is to educate and build loyalty in customers. Apple Inc. believed that educates customers are important to build customer loyalty. Therefore, free workshops are offered to people with different level of experience to know more about their new Apple products. Basics of Apple's product can be learnt in the workshop. Experiences are shared by those who really understand Apple products to the attendees of the workshop. A One-to-one training program is also offered to customers who have bought a new Mac. In the program, there are three types of training choices, which are personal training, group training and open training. If customers are having a technical problem of their Apple products, they may seek help from Genius Bar where geniuses are available there. The expertise of the geniuses can help customers to troubleshoot the problem of their Apple products.
In 1990s, Apple Inc. began to concern about the environment. Efforts are made to minimize the impact of Apple products have on the environment. Chemicals were phased out in producing Apple's products. Apple Inc. came out with mercury-free backlit display of Macbook Pro, bromine-free printed circuit board laminates, and more. In 2002, Apple Inc. achieved a recycling rate of 41.9% based on the percentage of weight from the 2002 sales. The introduction of Apple Battery Charger can help reduce the battery waste by 78%. Apple has introduced many application programmes like iTunes, Apps Store, iCloud, iBookstore, Newsstand and more. The introduction of these application programmes had reduced the traditional usage of CDs, DVDs as storage devices for multimedia; Papers for production of literary works.
Apple Inc. does not play 'featured games' with its competitors. Instead, Apple Inc. is more focused on its own business than its competitors. For the engineers of Apple Inc., their mission is to come out with great innovative products. The engineers of Apple Inc. are driven to innovation. They are encouraged to come out with products that can challenge the status quo.
Apple Executive Team
The organizational chart above clearly showed that Apple Inc. is a functional organizational structure which grouping employees by similar or related occupational specialties. Group employees by similar specialties can make them comfortable and satisfied because it gives them the opportunity to speak in the same language as their peers. The organizational chart also showed that all of the senior vice presidents are directly reporting to the CEO of the company, Tim Cook, because of the wide span of control of the company.
Apple Inc. is operating under organic organization structure that has highly adaptive, loose and flexible, which allows company to change rapidly as required. Employees in the company own the freedom to go in and improve the product if they found an issue that bothered them by without having to deal with layers of bureaucracy to get approval. This freedom can make Apple Inc. responds quickly to problems and improves their products faster.
On the other hand, if businesses managed their money as carelessly as they manage their people, most would be bankrupt. Recently, Apple Inc. has provided training program for the new hiring employees to improve their ability to perform on the job, thus, training can change employees' certain skills, knowledge, attitudes or behavior. After this training, the company can easily put the right people into the right jobs to avoid waste both human and financial capital.
Since there is no longer ecosystem to support manufacturing in United States, Apple Inc. decided to manufacture its products in China and cooperate with the world's largest maker of electronic components, Foxconn. The main reason of Apple Inc. manufactures products in China is the efficiency but not about the cost. China's workforce is much hungrier and more frugal compare with United States. Foxconn can recruit 3000 of workers overnight and China also provides engineers to set up the assembly lines in order to expand the production of iPhone.
Furthermore, Apple Inc. does not allow the use of underage labor. Suppliers of the company must follow the minimum age for employment in that country, or the age of completing compulsory education in that particular country. The company will require suppliers to return underage labors to school and pay for the educational expenses, living allowances, and lost wages for 6 months or until the labor reaches 16 years old if the company found out that suppliers use underage labor.
Steve Jobs, the co-founder of Apple Inc. and the Chief Executive Officer of Apple Inc. before 24 August 2011. He graduated from Homestead High in Cupertino, California in 1972.After that, he attended Reed College but he just studied for one semester and he was dropped out. In 1976, Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple.
In 1985, Steve Jobs got kicked out of Apple Inc. by John Sculley. In 1997, Steve Jobs has returned to Apple Inc. and started to lead the Apple Inc. The first task was to make the Apple Inc. more focus on what product should be produced. He told all his team members to focus on four great products, one for each quadrant. By getting Apple Inc. focus on just making four computers, he saved the Apple Inc. He said that "Deciding what not to do is as important as deciding what to do". He is also cut down all the unnecessary products, services, marketing, packaging and more. On the last day of each year, he will stand in front whiteboard and ask "What are the ten things should be doing next?" He likes to hear what is the employees idea on the Apple Inc products, so that they can create more new products to the market.
Next, Steve Jobs always warn the employees to simplify the device and software because the first marketing brochure of Apple Inc. declared that "simplicity is the ultimate sophistication". This simplification can create competitive advantages among the competitors because the competitor's products are much more complicated to use. Steve Jobs simplicity came not by ignoring complexity but rather by conquering it.
On the innovation, Steve Jobs did not merely to catch up the competitors but is to leapfrog over them. For example, Steve Jobs was mortified when he found that the slot drive of his iMac could not burn CDs. When facing this problem, Steve Jobs has come out a solution which is create the iTunes store and iPod to reinventing access to music.
On 24 August 2011, Steve Jobs has left his position as Chief Executive Officer due to the health problem he faced and his position was took over by Timothy D. Cook who was the Chief Operating Officer of Apple Inc.
Now, Timothy D. Cook is the Chief Executive Officer of Apple Inc. He studied MBA in Duke University, and he was also a Fuqua scholar and Bachelor of Science Degree in Industrial Engineering from Auburn University. Today, Apple Inc. has almost 73,000 employees is under the leadership of Timothy D. Cook. Since he took over Apple Inc., Tim Cook successfully steered the company through controversies at Foxconn factories overseas and the success of release the iPhone 5 and iPad mini. The iPhone 5 was released on 21 September 2012 and it achieved pre-order of 2 million over 24 hours and it was double the 1 million the iPhone 4S.
Besides, Tim Cook has used his leadership style to change the company environment. For example, the Apple Inc become more corporate, putting more focus on operational efficiency while still striving to maintain the unique culture Steve Jobs forged as the Chief Executive Officer. Timothy D. Cook is much more approachable compare to Steve Jobs. He has no problem to meet with the investors and sometimes he will have meal with his employees which is rarely did by Steve Jobs.
In controlling, the task of manager is to monitoring performance, evaluate how well the organization has achieved its goals and to take corrective actions as needed to maintain or improve performance. The ex-CEO of Apple Inc., Steve Jobs monitors the performance of Tim Cook, the ex-COO of Apple Inc. when he was still around. In Steve Jobs's resignation letter, he has named Tim Cook as the next CEO of Apple Inc. This backup plan makes Apple Inc. able to cope with uncertainty.
To the Apple Board of Directors and the Apple Community:
I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know. Unfortunately, that day has come.
I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.
As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.
I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.
I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.
Retrieved from http://www.apple.com/pr/library/2011/08/24Letter-from-Steve-Jobs.html
After the death of Steve Jobs, Apple Inc. hasn't release anything big and new. But it has built better iPhones and iPads. Apple Inc. announced that pre-order of its iPhone 5 topped 2 million in just 24 hours, and iPads sold 3 billion in 3 days. The quarterly profit of Apple Inc. climbed to $8.2 billion on revenue that rose to $36 billion on the backs of hot-selling iPhones and iPads. Within one year, Apple Inc. share increased and the company's value has almost doubled since Steve Jobs death.
Apple Inc. manufacturers continually improve electronic technology so that company can offer more power in a smaller package. Apple continually offers smaller devices to the market before the competition. Macbook Air, the thinnest laptop on the market is the prime example of the product in the market. This idea introduced by Apple introduced idea before their competition, so they able to accomplish these feats in record time with streamline workflow processes and automation.
Apple Inc. recently came out with Apple Supplier Responsibility 2012 Progress Report that details their effort to improve workers protection and factory condition. Apple Inc does not allow the use of underage labor, if workers had either left or reached legal working age by time of the audit, they will take immediate corrective action.
On 28th September, 2012, the CEO of Apple Inc. Tim Cook has written an apologize letter on Apple's website regarding with the Maps drama that been unfolding with the introduction of iOS 6.
To our customers,
At Apple, we strive to make world-class products that deliver the best experience possible to our customers. With the launch of our new Maps last week, we fell short on this commitment. We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better.
We launched Maps initially with the first version of iOS. As time progressed, we wanted to provide our customers with even better Maps including features such as turn-by-turn directions, voice integration, Flyover and vector-based maps. In order to do this, we had to create a new version of Maps from the ground up.
There are already more than 100 million iOS devices using the new Apple Maps, with more and more joining us every day. In just over a week, iOS users with the new Maps have already searched for nearly half a billion locations. The more our customers use our Maps the better it will get and we greatly appreciate all of the feedback we have received from you.
While we're improving Maps, you can try alternatives by downloading map apps from the App Store like Bing, MapQuest and Waze, or use Google or Nokia maps by going to their websites and creating an icon on your home screen to their web app.
Everything we do at Apple is aimed at making our products the best in the world. We know that you expect that from us, and we will keep working non-stop until Maps lives up to the same incredibly high standard.
Retrieved from http://www.apple.com/letter-from-tim-cook-on-maps/
What make Apple Inc. success?
Apple Inc. leads the market by introducing the first iPhone. Apple Inc. is growing day by day under the leading of Steve Jobs. Steve Jobs's leading style that emphasizes perfection had produced iPhone series that is widely accepted by all market segment. Steve Jobs knew well about technology, market and art so he combined all together when thinking of new product. Engineers in Apple Inc. considered on the quality of the product rather only generates profit. Unlike other competitors, Apple Inc. does not simply come out with a product that is incomplete or dissatisfied. For example, competitors such as Samsung often come out with new products however its products always have problem. Apple Inc. concerns on environmental issue not only save the production costs while also build good image of corporate. Apple Inc. provides variety sources for consumers to solve their problem when they face any problem with the products. Free workshop and Genius Bar where geniuses can help customers to troubleshoot the problem of their Apple products. This will help consumers to understand better and know more advantages of Apple's product.
Apple Inc. faces challenge in Tim Cook's leadership. Since the way Tim Cook leads is different from Steve Jobs therefore employees need time to cope up with the new leading style. Steve Jobs emphasized perfect in production of products therefore employees are given pressure to maximize the perfection however Tim Cook is more flexible. This might cause the quality of Apple's product to decrease.
Technology is also a challenge for Apple Inc. Technology improvement is an uncertainty, no one will know when there's new technology will be invented. Apple Inc.'s product is based on technology therefore if there's no technology advancement, Apple Inc. will not able to produce new product.
Competitors are one of the major challenges faced by Apple Inc. Google new invention of operating system called Android had threatened Apple Inc.'s iPhone Operating System. This is because Android can be used in various smartphones such as Samsung, HTC and Sony Ericsson but iOS can only be used in Apple Inc.'s products. Android system and iOS system is quite similar, consumers whose purchasing power is low will choose to purchase other products this will eventually affect Apple Inc.'s sales.
Critique of Apple Inc.
If you fail to plan then you plan to fail. Planning plays an important role in every organization and same goes to Apple Inc. The company gives employees the freedom to improve the product if they found any issues after they used product without approval needed. Planning has to accomplish with the company's mission. Apple Inc.'s mission is to educate and build loyalty in customers. To achieve their mission, Apple Inc. conducts free workshops to people with different level of experience to know more about their new Apple products. Customers can learn basics of Mac, iPod, iPad or iPhone in the workshop. This will help to build customer loyalty however will consume a lot of time and might not work. Time is precious to the people nowadays therefore will people spend time to attend the free workshop? This is should be considered. Apple Inc. will not able to build customer loyalty if customers do not attend the workshop. Apple Inc. focuses on its own business rather than its competitors; this will help them produce a better product but too focus on its own business will cause them unable to compete with its competitors. Technology will improve day by day, if Apple Inc. only focuses on its business, the company's position as market leader will be taken by other competitors such as Samsung.
Apple Inc. practices organic organization structure which will let the company to run more effectively. Employees are given freedom to improve the products when they found out any problem of the product, this will help the company to solve the product's weakness faster. Yet this may also brings negative impact on company. Improvement done by employees does not require approval from top management, if the changes done by employees had made the product worst this will destroy company's reputation. For example, changes made on one of the apps had clash with another apps and cause the product's certain function unable to function. Apple Inc. does not allow underage labor to participate in the production of their production but Apple Inc. unable to ensure that this will not happen. This is proven when Apple Inc.'s largest contract manufacturer, Foxconn has acknowledged hiring labor who ranged in age from 14 to 16 in a Chinese factory. This is not against human rights while company's reputation will be affected as well.
Apple Inc. is very successful under the leading of Steve Jobs however his leading is not perfect because no one is perfect. Steven Jobs emphasized simplification in creating its product however its product is still difficult to use especially for new user. Apple's products don't come along with manual booklet therefore new user will find difficulty during their first time of using Apple's products. This will cause users to switch to other brand due to inconvenience of the system. Besides, Job's solution which is create iTunes store and iPod to reinventing access to music solved the problem of iMac that unable to burn CD however users can't transfer music to other devices. This became a weakness of Apple's products. iPhone 5 's pre order is double from iPhone 4 because Apple's user expecting a better version of iPhone however function of iPhone 5 didn't not change much where this disappointed the users and if iPhone 6 is introduced the pre order will drop where eventually will cause the sales to decrease too.
Good controlling is required to manage a company. Without controlling, the company will close down any time. Steve Jobs named Tim Cook to replace his position as CEO of Apple Inc. after monitoring his performance, this will ensure the company's daily operation to go well. However, what will happen to Apple Inc. if Tim Cook resigns due to some reason? Who will be the next CEO of Apple Inc.? This will influence the company's market share. Apple Inc. should train few candidates that can take over the CEO position. Introduction of iOS 6 by Apple Inc. had problems with the Maps therefore the current CEO of Apple Inc., Tim Cook suggested others alternatives map apps that can be downloaded from Apps Store such as Bing and so on while the company is improving the maps. Tim Cook's suggestions help to solve customer's problem however this also proved that their product can be replaced by others. Customers will not need to buy Apple's product anymore since other product can replace it and Apple's product is much higher than the others.
Apple Inc. is a company that focuses on technology products. Steve Jobs was the important person who lead to the success of the company and currently replaced by Tim Cook. For Steve Jobs, the mission of Apple Inc. was his mission also. He planned to come out with extraordinary smart phone or technology gadget that will meet or doing better than the expectation of customers.
Apple Inc. has organised well its resources to accomplish the goals of the company. If one of the resources fails to organise properly, Apple Inc. will not be so successful like today.
Steve Jobs is a decision maker as he can make a correct decision that what product they should produce and what should not for their company products. After resignation of Steve Jobs, Timothy Cook has take over his position as new Chief Executive Officer. Timothy Cook is a person who can easily communicate and interact with his employees. This can make the employees work harder to the company. Managers of Apple Inc. always monitors the performance of the subordinates, provide backup plan to cope with uncertainty and evaluate how well Apple Inc. has achieved its mission. Tim Cook is able to take corrective action to overcome the problems that occur in Apple's products.
Managing an organization is a complex activities, effective manager must own many kind of skills, knowledge and ability. Management is an unpredictable activity. Making the right decision is difficult; even effective managers often take mistakes, but Steve Jobs learn from their mistakes and continually find way to increase company's performance.
Planning, organizing, leading and controlling are essential parts of a manager's job. Performing these four activities successfully is important for effective management. Management is very important for a successful company, Steve Jobs's leading had proven this.