apple organizational structure

Earlier when the company was in the hands of Steve Jobs, all the major decisions related to strategic management had to be approved by him. That required a deep cultural challenge which Tim Cook has vowed to bring about. Apple has established a culture of innovation and diversity in America. During Steve Job’s time, the company adopted an autocratic leadership style where the CEO or the leader was entrusted with micro-managing every operation. Shop and Learn It is this structure that creates opportunities for enhancing growth and development in the company. The present Apple management hierarchy is elaborated on below: Board of Directors: Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, The Top 15 Common Challenges Faced by Entrepreneurs, Behavioral Assessment: Meaning, Importance & Advantages, Interpersonal skills: Meaning, Importance and How to improve them, Organizational Structure – Definition, Types and Elements, Organizational Conflict: Definition, Types and Advantages, Employee Background Check: Concept, Importance, Steps & Advantages, How to be Successful? The answer goes back to Apple’s corporate structure, which, though fairly common for a startup, is extremely unusual for an enormous company. Bell and co-founder and Director of BlackRock Susan Wagner also serve in Apple Board of Directors. Apple Inc has created an organizational structure that encourages rapid innovation and technological advances. The analysis utilised a The authority and control of the project head, in this case, is limited, and they have to report every detail to the top management, which gives them the necessary direction and input to move forward. It has started with a bit of a collaborative approach and is prepared to decentralize on specific issues. Your email address will not be published. Currently, Apple organizational structure has the format illustrated in figure below: Generally, Apple corporate structure has the following characteristics: Hierarchical organizational structure. May 24, 2020 By Hitesh Bhasin Tagged With: Management articles. Concept, Explanation, Examples, Advantages, Disadvantages, 360-Degree Feedback – Definition, Meaning, Benefits and Weaknesses, Employee Relations | Definition, Meaning Importance and Advantages. Internet Software and Services. Essay Apple Inc Organization Structure 1318 Words | 6 Pages. Eddy Cue. Massive size of the company that comprises 132,000 full-time equivalent employees globally necessitates the adherence to the hierarchical organisational structure. The hierarchy organizational structure in Apple Inc supports robust control by the management. You will find product-based divisions in the upper and lower tiers of the corporate structure of Apple Inc. The benefits of Apple’s organizational structure are as follows-, The problems of Apple’s organizational structure are as follows-, I love writing about the latest in marketing & advertising. It needed an organizational structure suited to its sophisticated culture, and this is why it decided to adopt its existing organizational structure. Currently, Apple Inc is one of the most popular and valuable companies in the world, valued at over one trillion dollars and this is because of the organizational structure that has helped it to create the groundwork for an effective system. Apple’s collaborative structure is a critical part that ensures the organization has a good design that enhances increased innovation efforts of the company in an organization. When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It gives its top leaders the necessary power to make crucial decisions. It has adopted a traditional hierarchy and included some significant elements from various other types of organizational structures. Three members are acting CEOs and two members are former Chairman and CEOs of global companies. Plan automatically renews until cancelled. The company has deviated from a typical corporate structure that was being practiced in most companies and implemented a unique method to manage its organization. Each product within Apple portfolio such as iPad, iPhone, iPad, Apple TV and iWatchis a result of collaboration of product-based groups. In the Harvard Business Review, Apple VP Joel Podolny, dean of Apple University, and Morten Hansen, a faculty member at both Apple University and UC Berkeley, have written an extensive examination of how Jobs refactored the company upon his return, and how Apple has built upon that structure ever since. This group includes App Store, ApplePay, iCloud, and Apple Music. The organizational structure of Apple Inc believes in A-grade business performance to ensure leadership in its related industries. Organizational structure of Apple during Steve Jobs. The core competencies of Apple are robust. SWOT for Apple Organization Structure is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. It has been going from strength to strength in product design and creative innovation to improve its capabilities and boost competitive advantage in international markets. The Apple management hierarchy refers to the top tier management structure of the company. Specifically, Mr. Cook embraced the decentralization of decision making to a certain extent in order to encourage innovation and creativity at various levels. April 4, 2019. This made product decisions easier. Apple wants to … Apple’s organizational structure begins with when Apple was a one-man company. Product-based grouping is an important feature of Apple organizational structure. The control rests in the hands of the top leaders, and it ensures a quick decision-making process. The multinational technology company divides its operations into the following product-based groups: Collaboration between different groups and divisions. Apple Card is issued by Goldman Sachs Bank USA, Salt Lake City Branch. On the negative side, Apple’s hierarchical organisational structure may compromise flexibly of the business to reflect changes in the global marketplace. The company Apple Inc gives credence to effective and intensive collaboration between various divisions and groups in its organization. It does not approve of any quick or rapid changes without the approval of top brass, The hierarchy system prevents employees at lower levels to take part in any decision-making process, It is not possible to meet or implement sudden changes at the drop of a hat because the decision-making authority is only with the CEO or very few top leaders, There is a lack of transparency, and this is why information is not readily available, The unique corporate culture at Apple Inc has resulted in several cases where unfair, The organization believes and promotes work culture without giving relationships any preference or due, The employees are encouraged to work long hours, and this has a direct impact on their physical and mental well-being. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. Restrictions and other terms apply. Apple organizational structure can be described as hierarchical. Advantages of Apple hierarchical organizational structure include tight control possessed by senior management over all aspects of the business. [1] Annual Report (2018) Apple Inc. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. The employees and management at the Apple Company are categorized and grouped in accordance with their common experience, expertise, and resources. Its organizational structure involves top notch excellence, creativity, innovation, secrecy and competiveness. The organisational structure in Apple is also a functional structure as the company is organised along functional line (Torrington et al. Organization or business has to have organizational structure in order to succeed because it prioritizes the hierarchy, identifies the guidelines, policies and procedures needed for a company achieve goals and objectives. For instance, there is more collaboration amongst its departments, like the software team is in touch with the hardware team to consider each other’s inputs. Offer good for 3 months after eligible device activation. Such a structure has been developed by its founder and former CEO late Steve Jobs in order to ensure focused realization of his innovative ideas and clear vision for the business. By continuing your navigation, you consent to their use. DNA. Moreover, proven leaders such as former US Vice President Albert Gore Jr., former CFO and Corporate President The Boeing Company James A. 2005). An organizational structure of a company includes an amalgamation of resources and workforce. Apple organizational structure can be described as hierarchical. CEO Jobs was at the center of it all. The organizational structure of Apple Inc shows very little flexibility. Apple was a centralized business, similar to a single party or an authoritarian rule type because the all departments of Apple reported to Steve Jobs for approval. An essential advantage of Apple’s organizational structure is that it makes it easy to control product-based groups and business functions through the decisions of its CEO as well as top leaders. Apple Inc Report contains a full analysis of Apple organizational structure. In functional structure, people are grouped on the basis of their common expertise, experience and resources. This type of approach receives both backlash and applause. It is a large-sized company with an innumerable workforce that works in tandem under one head its CEO Steve Jobs, and after his resignation, the new CEO, Tim Cook. Each of those managers has their own unit comprising of team members who … 10 Ways To Be Successful, Barriers To Entry: Meaning, Types, Examples, Definition Of Entrepreneur – Define Entrepreneurship, Flat Organizational Structure – Definition, Meaning, Characteristics, Advantages, How to be Confident? The control rests in the hands of the top leaders, and it ensures a quick decision-making process. It is the organizational design that lays the groundwork for developing and managing an effective organizational structure. In this system, it is the responsibility of the top management to determine the direction the project is going to take. The hierarchy organizational structure in Apple Inc supports robust control by the management. Although Tim Cook introduced considerable changes to Apple corporate structure since assuming the top job in 2011, the structure still remains to be highly hierarchical with many layers of management. I choose to write it on Apple because I believe Apple is the best example of organizational change. Moreover, the report contains analyses of Apple leadership, business strategy and organizational culture. Understanding Apple’s organizational structure, What is Blogger Outreach? The company was found in April of 1976 by Steve Jobs, Ronald Wayne and Steve Woznaik. The term weak-functional matrix about Apple Inc refers to the collaboration amongst the various departments or elements of the business. Conclusion Organizational culture is a critical component in an organization that dictates the operations of employees. In functional structure, people are grouped on the basis of their common expertise, experience and resources. This element is taken from the divisional type of organizational structure where the vice presidents and senior vice presidents are appointed for various products or outputs. Taking into a number of challenges faced by the company such as rapidly decreasing life cycle of technology products and declining sales of iPhones, iPads and Mac products, [1] it can be argued that Apple organizational structure may be subjected to certain changes in the medium-term perspective. A round org chart. Such a structure has been developed by its founder and former CEO late Steve Jobs in order to ensure focused realization of his innovative ideas and clear vision for the business. The organizational structure, in other words, is less rigid and a bit flexible. Similar in style to the traditional pyramid, this org chart replaces the hard-edged … Organizational structure that keeps Apple “alive” is uniquely different than other multinational companies, but they still follow distinct rules of a well-function organization. The secrecy, pressure and competition will remain there in Apple’s environment because they are a part of any technology giant’s organizational culture. Apple’s Organizational structure begins with the Board of Directors who oversees the Chief Executive Officer and other senior management in the competent and ethical operation of Apple on a day-to-day basis and assures that the long-term interests of shareholders are being served. It was divided into business units, each with its own P&L responsibilities. Apple's Board of Directors oversees the Chief Executive Officer and other senior management in the competent and ethical operation of Apple on a day-to-day basis and assures that the long-term interests of shareholders are being served. Apple’s profits and size grew at a historic rate: by 1980 the company netted over $100 million and had more than 1,000 employees. Apple Inc.’s organizational structure is collaborative in nature with the company’s CEO as the nucleus. If Apple has to remain innovative, its focus must be on keeping its employees motivated. Apple Innovation Case Study. To read the entire article, click here. Product-based grouping. These include Apple TV, iWatch, headphones, cases, displays, storage devices and various other connectivity and computing products and supplies. Apple Inc. maintains an intensive and effective collaboration between various groups and divisions of the company. Apple Inc has a board of directors in place that includes eight members belonging to a distinguished background. ad deals in hardware, software, mobile devices, etc. Even employees at Apple have little idea of how the company is organized. Most of its products are the result of its product-based group strategy. When Jobs returned to Apple, it was organized around products like a … Apple TV+ is $4.99/month after free trial. It is very hard to imitate … To help understand Apple’s structure, we first need to look what is the company’s purpose. Apple Inc. has extensively embraced the traditional organizational structure, in which the flow of authority is channeled from defined higher hierarchies to lower ones, or subordinates (Nonala & Kennedy, 1991, p. 68). The vice precedents have now more powerful and can make autonomous decisions that were not possible under the earlier management. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. An essential advantage … Its corporate structure is effective in managing product components or specific products that the company deals with to serve its target customers. 10 Ways To Be Confident, Organizational Values – Definition, Meaning, Advantages, Organizational Climate Definition – Types and Characteristics. You can follow me on Facebook. 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