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8/8/2019 Class Prints

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Background Founded in 1976 by Steve Jobs and Steve Wozniak

Apple`s very first step towards innovation was the

launch of Apple I.

The change of name from Apple Computers Inc toApple Inc.

Apples logo, now one of the most recognizable logosin the industry, was adapted a year after the companywas founded.


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Apple Products:

Personal

Computers:

iBook

PowerBookPowerMac

Multimedia

iMac

Digital Products

iPod

iPhone

Key Tasksof Apple Inc.Overview:

Annual Sales 2008:

$32.4 Billion USD

Net Income 2008:

$4.8 Billion USD

247 Apple retail

stores worldwide

R&D 2008:

1.1 Billion USD

Employees

Full-Time - 32,000

Part-Time 3,100

Shareholders30,445


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Organizational Chart


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Size/Age

4th Highest market

share

Large Budget

Well Established in

Market (33 years)

Environment

Competitive

Fast Moving

Technologically

fuelled

Key Structural ContingenciesTechnology

Prime Focus

Revolutionary

reputation

Strategy

Innovation

Industry First


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Post-Bureaucratic Structure

Bureaucracy exists due to hierarchy and high turnover:

Steps taken to organize structure

Higher employee involvement in decision making

Strategic focus rather than administrative focus

Attempts to dissolve stages within divisions.


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Single minded, religious to

innovation

Too much focus on technical

innovation, ignoring the business

model

Criticism of Apples culture


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Recruitment and development of eligible candidates.

Safeguard and help develop Apple's most valuable asset, itspeople.

Counselling, compensation & benefit programs for staffing

and training.

Provide the resources to assist employees in reaching

personal and professions goals to ensure a proactive internal

career progression.

Roles and responsibilities of the

Human Resource


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SAN DIEGO, CA -- ICON Group International Ltd.

released two of the most comprehensive studies to date on

vertical gap analysis and labour productivity benchmarks forApple Computer Inc.

Apple has installed several measures to enhance

productivity as well as effectiveness.

Performance Management


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In 1988, Apple Canada engaged The Jamieson Williams

Group of Markham, Canada to develop a state-of-the-art

human resources management system for the use of theirown HR department. This system was known as the HR-

Link system.

The result of this project was so powerful that Apple began

pursuing its marketing potential in a very aggressive manner.

Strength of Apple`s HR


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Apple since its establishment in Cork in 1976 has always

attempted to be exemplars of best practice in the area of HR.

Apple have always realised that their employees requireskills and knowledge beyond those needed to do their job in

order to function effectively.

To fulfil this requirement, responsibility for training isdivided across the organisational structure.

Training & Development /

Lifelong Learning


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To ensure that this structure is run effectively the training has also been

categorised as individual, group and organisational.

The group category is particularly effective as it enables Apple toexamine the many benefits of cross-functional training.

The net result of this training provision, both in terms of availability

and delivery, is a work force that feels that it can effectively adapt to and

adapt within an environment that is in constant change.

The training has also provided the employees at Apple with increased

internal mobility.

Implications of Training


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Incentives for key employees to maintain a fruitful and competitive

work relationship and Boost creativity.

To be the best is just good enough vision of HRM Apple Inc.

Apple intends to remain the employee of choice.

Competitive Advantage


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Power Distributionunder John Sculley

(1983)The number of divisions were reduced.

Each division was responsible for its own functions andwere managed as independent profit-and-loss centres.

Sculley was in charge of one of the groups to learn how a

product division worked.

Centralized power by prompt bureaucratic reporting to him

by both line and staff people.


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Conflictbetweenthe Leaders &

Amongst EmployeesJobs believed that Apple should focus on technology, whichwould be the motivating force behind purchases of

computers.

Sculley thought the focus should be on customer needs.

Customer needs should determine the product. Therefore,

getting close to the market was of fundamental importance.

Conflicts between the Apple II and Macintosh Divisions.

Jobs` favoured the Macintosh product group.


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Politics: Steve Jobs Resignation

(1985)Financial Crisis due to the failure of the Superbowl ad and

Christmas stock up in 1985.

Sculley threatened to resign if the board didnt back him onhis decision to remove Jobs as executive VP and general

manager of the Macintosh division.

Steve Jobs was a visionary leader which could have lead to

a coup.Jobs` passion for Apple turned employees against him.

Jobs operating role in the company as chairman was taken

away and was sued.


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Arena ModelPlayers Objectives Resources

Available

Tactics Outcomes

Steve Jobs Innovation Founder of

Apple

Focus on

Technology

Lost

John Sculley Advertising

and Business

knowledge

Business

experience

from Pepsi

Co.

Focus on

Customer

Win

Board of

Directors

Best decision

for Apple Inc.

Formal

Authority

Corporate

Governance

Win


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The Historic ShiftofPower

(1997)The resignation of Gilbert F. Amelio from Apple on July 5,1997.

Steve Jobs was offered the position of the interim CEO, after theacquisition of NEXT (Jobs` New Company) by Apple.

August 6,1997 a new board was established when Jobs handpicked

the new board members: William V. Campbell (president and CEOof Intuit), Lawrence J. Ellison (chairman and CEO of Oracle), and

Jerome B. York (vice chairman of Tracinda Corporation and former

CFO of IBM and Chrysler).


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Current Relationship betweenPower &

Formal Authority

The Board oversees the Chief Executive Officer and other senior

management in the competent and ethical operation of theCorporation on a day-to-day basis.

Directors are expected to adhere to the Corporations Business

Conduct Policy and the Guidelines Regarding Director Conflicts ofInterest.


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Key ChallengesBad Economy/ Recession

Health issues of Steve Jobs

Centralized power is with Steve Jobs and his stepping down

would undoubtedly send Apple shares plummetingApple lawsuits

Apple Lawsuit

iPod Lawsuit

iPhone LawsuitApple v/s Microsoft

iPhone Rebate


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Key ChallengesFederal investigators may not be as kind to Jobs as the Al Gore

committee.

Speculation of an enquiry by the U.S. Securities and Exchange

Commission.

If the government decides Jobs isn't innocent, Apple directors will

face a dilemma.

Jobs has changed the image of Apple from a niche manufacturer

of personal computers to a company with its ear to the latest in

consumer electronics.


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Recommendations

Tackle the low-end consumer market & focused segmentation.

Devise a strategy to convince competitors customers to switch to

Apple and retain current customers.Offer an affordable system with an innovative design.

Apple has to build a stable rewarding and compensation system for

all its employees.

The employee stock options should be inculcated further to build amore loyal work force.


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Recommendations

Apple needs a stable but decentralized distribution of power as the

company cannot be on Jobs` shoulders forever.

There should be an evaluation of the Board and its Committees.

The Compensation Committee should conduct an annualevaluation of the performance of all executive officers, including

the CEO.

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