Abstract history how it has started to operate

Abstract

On
this paper we are going to analyze the Apple’s strategy and it’s brief history
how it has started to operate and about their functionalities.

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Further,
on this paper we are going to see the Apple’s strategy and it’s constructive
structure, on how they have divided their functions and what kind of the
structure they are using. Who are the board of directors and the leadership
team which are on the matrix structure with the CEO on top. Who is responsible
for all other underneath departments.

The
four kind of organizational structure which are:

-Matrix,
The matrix structure is a model that is also used by Apple company, which is
more complicated and a little bit of autocratic.

-Functional,
Functional is based on the function of the company, different department are
divided according to their functionalities.

-Divisional,
So they are one firm owned by one person or founder but have many parts that
work individually but for one only company.

-Flatarchy,
Flatarchy is more traditional model which follows the vertical hierarchy.

 

 

Keywords: organizational
structure, matrix, functional, divisional, flatarchy.

 

 

 

 

Content

Contents
I. Introduction. 4
II. Brief history. 5
III. Apple’s strategy. 6
IV. Apple structure. 7
4.1 Board of directors. 7
4.2 Tim Cook Chief Executive Officer. 8
V. Matrix style use of Apple company. 9
5.1 Definition. 9
5.2 Advantages. 10
5.3 Disadvantages. 10
VI. Organizational structure. 11
6.1 4 common types of organizational structures. 11
6.1.1 Functional 11
6.1.2. Divisional 11
6.1.3 Matrix. 12
6.1.4 Flatarchy. 12
VII. Conclusion. 13
VIII. References. 14
 

 

 

 

 

 

 

I. Introduction

 

This
paper is going to describe the structure of the Apple company, what’s the
strategy of it, and a brief history about the company, how it all started, who
are the ones that started up this company, when they started to operate and
many more important things for the company.

How
the structure that is used by the Apple company, influence in the company’s
performance for better or for bad.

The
structure that is used by Apple company is the matrix structure, which is a
little bit complicated and traditional one, which structure describes how the
CEO of the company is on the top of the structure and responsible for all the
underneath structure. And, on the matrix style of the structure the employees
are obliged to report both responsible not only one. We are going to examine
also what are the advantages and disadvantages of the matrix style of the
structure.

Afterward
on this paper it’s going to be analyzed the four different structures of
companies that may adopt one organization.

Every
structure has its own steps and their own division on how they has divided
their jobs and responsibilities on the company, some are flattered, some
matrix, divisional, and functional.

 

 

 

 

 

 

 

 

II. Brief history

It all started
with three men – Steve Jobs, Steve Wozniak and Mike
Markkula – who together in the late 1970’s designed and marketed the Apple II
series of computers.

It was the
first commercially successful line of personal computers, and led to the Apple
Lisa in 1983 – the first computer to use a mouse-driven GUI (graphical user
interface). One year later, the Apple Macintosh was born (launched by one of
the greatest ads of all time, 1984), and with it, the Apple legend began
to grow.
 In 1985, after a long and drawn-out fight with the Apple board, Steve
Jobs “left” the company that he helped create. Some say he was pushed
or ousted, others say he left simply to pursue other projects. That being said,
his next move was NeXT, a tech company he founded that specialized in higher
education and business.

One year later,
in 1986, Steve Jobs took a major interest in a small division of Lucasfilm Ltd.
Focused on the development of computer generated graphics for animated movies,
the company now known as Pixar was acquired by Jobs.

It
was a master stroke for Steve, who instantly saw the potential for the company
(which we now all know as one of the greatest movie-making studios of our
time). After many small projects and lots of trial and error, Pixar released
Toy Story in 1995 (crediting Jobs as the executive producer) and the rest is
history.

One year after
the release of Toy Story, in 1996, Apple bought the NeXT company that Jobs
owned, and asked him to come back in a leadership role. He was
interim CEO from 1997 to 2000, becoming the permanent CEO from that
point until his eventual resignation in August of 2011.

 

 

 

III. Apple’s strategy

 

 Apple’s
generic strategy and intensive growth strategies directly relate to the
company’s strategies in pricing, marketing, and other areas of the business.

Apple’s strategy is to concentrate on
innovation and constantly creating new and more sophisticated supplies in order
to gain consumer satisfaction and gain growth on the market.

Apple is one of the most valuable companies in
the world , and has an a competitive advantage against other competitors such
as Samsung, HP, BlackBerry.

  Also, Apple’s intensive strategies for growth
support the firm’s ability to maintain its strong position in the global
market. With the quality and innovation that is offering Apple and also the
sophisticated designs is capable on selling it’s product on relatively high
prices.

This successful position indicates Apple’s
effectiveness in using its generic strategy and intensive growth strategies.

 

 

 

 

 

 

 

 

 

 

 

IV. Apple structure

4.1
Board of directors

 

Arthur
D. Levinson                                              James
A. Bell

Former
CFO and Corporate President,               
Former CFO and Corporate President,
The Boeing Company                                          The
Boeing Company

Audit Committee                                                 Audit
Committee

Tim
Cook                                                         

CEO,
Apple

 

Albert
A. Gore Jr.                                                 
Robert A. Iger

Former
Vice President of the United States         Chairman and CEO, The Walt Disney Company

Compensation Committee                                    Nominating
Committee Chair
Nominating Committee                                       
Compensation Committee

Andrea
Jung                                                          Ronald D. Sugar

President
and CEO, Grameen America               
Former Chairman and CEO

Compensation Committee Chair                           Northrop Grumman
Corporation
Nominating Committee                                        Audit Committee Chair

Susan
L. Wagner  

Co-founder
and Director, BlackRock

Audit Committee

 

 

 

 

4.2 Tim Cook Chief
Executive Officer

 

Tim
Cook is the CEO of Apple and serves on its Board of Directors.

Before
being named CEO in August 2011, Tim was Apple’s Chief Operating Officer and was
responsible for all of the company’s worldwide sales and operations, including
end-to-end management of Apple’s supply chain, sales activities, and service
and support in all markets and countries. He also headed Apple’s Macintosh
division and played a key role in the continued development of strategic
reseller and supplier relationships, ensuring flexibility in response to an
increasingly demanding marketplace.

Prior
to joining Apple, Tim was vice president of Corporate Materials for Compaq and
was responsible for procuring and managing all of Compaq’s
product inventory.

Previous
to his work at Compaq, Tim was the chief operating officer of the Reseller
Division at Intelligent Electronics.

Tim
also spent 12 years with IBM, most recently as director of North American
Fulfillment where he led manufacturing and distribution functions for IBM’s
Personal Computer Company in North and Latin America.

Tim
earned an M.B.A. from Duke University, where he was a Fuqua Scholar, and a
Bachelor of Science degree in Industrial Engineering from
Auburn University.(apple, official online page)

 

 

 

 

 

 

 

V. Matrix style use of Apple company

 

 

 

5.1 Definition

 

The
matrix organizational structure is a kind of company structure is a more likely
like a traditional hierarchy or a set, that actually the reports that are given
by the managers are given as a grid or matrix rather than a traditional
hierarchy. So the employees are obliged to give report to both of the
functional managers and a product manager.

 

 

5.2 Advantages

In a
matrix organization, instead of choosing between lining up staff along
functional, geographic or product lines, management has both. The workers are
reporting to the functional managers in order to improve their skills and
prioritize and also review the work that is done by the staff and to a product
line manager who decides on what to produce and what kind of the products to be
offered. This structure has some advantages:

·           
Resources can be used efficiently, since
experts and equipment can be shared across projects.

·           
Products and projects are formally
coordinated across functional departments.

·           
Information flows both across and up
through the organization.

·           
Employees are in contact with many
people, which helps with sharing of information and can speed the decision
process.

·           
Staffers have to work autonomously and
do some self-management between their competing bosses; this can enhance motivation
and decision making in employees who enjoy it.

5.3 Disadvantages

 The matrix
structure may be more difficult to use because the staff has to report to the
both managers for their work, but on the other side they are improving their
functionalities according to the needs and wants for the organization. There
are some thinking that a matrix style is more on the traditional or tendencies
toward anarchy, power struggle and many other things that are considered as a
thread for the organizations.

The mistaken belief that matrix management is the same as group
decision making.

It is just the mistaken belief that the matrix is considered as a group
decision is not really true. Because the report that is made to the both
managers doesn’t mean that they will decide on groups. But it is true that
managers on matrix style are more sensitive and require teams to do any
suggestions or any decisions. But managers should expect difficulties to arise
if they believe group decision making to be the essence of matrix behavior.

 

VI. Organizational
structure

6.1
4 common types of organizational structures

There
are many different kinds of organizational structures found in companies.

Organizational
structures can be tall, in the sense that there are a number of tiers between
entry-level employees and the leaders of the company. Organizational
structures can also be fairly flat, in the sense that there are only a couple
of levels separating the bottom from the top. Depending on your goals, pay
structure, and division of work, you may relate more to one structure than
another.

 Here are a few of the most common structures
in modern businesses:

6.1.1 Functional

Also
commonly called a bureaucratic organizational structure, the functional
structure divides the company based on specialty. This is your traditional
business with a sales department, marketing department, customer service
department, etc.

The
advantage of a functional structure is that individuals are dedicated to a
single function. These clearly defined roles and expectations limit confusion.
The downside is that it’s challenging to facilitate strong communication
between different departments.

Functional
is based on the function of the company, different department are divided
according to their functionalities.

6.1.2. Divisional

The
divisional structure refers to companies that structure leadership according to
different products or projects. Gap Inc. is a perfect example of this. While
Gap is the company, there are three different retailers underneath the heading:
Gap, Old Navy, and Banana Republic. Each operates as an individual company, but
they are all ultimately underneath the Gap Inc. brand.

So they are one firm
owned by one person or founder but have many parts that work individually but
for one only company.

6.1.3
Matrix

The
matrix structure is a bit more confusing, but pulls advantages from a couple of
different formats. Under this structure, employees have multiple bosses and
reporting lines. Not only do they report to a divisional manager, but they also
typically have project managers for specific projects. While matrix structures
come with a lot of flexibility and balanced decision-making, this model is
also prone to confusion and complications when employees are asked to
fulfill conflicting responsibilities.

The
matrix structure is a model that is also used by Apple company, which is more
complicated and a little bit of autocratic.

6.1.4 Flatarchy

While
large businesses have traditionally followed a tall structure, it’s becoming
increasingly common to see flatarchy model in smaller businesses and new
startups.

Flatarchy
is more traditional model which follows the vertical hierarchy.

 

 

 

 

 

 

 

VII. Conclusion

 

It
is important for one organization to have a structure of the organization according
to their operation, or what kind of function they have.

The
apple company on this case they were investing tremendously on the innovation
and constantly creating new and more sophisticated products in order to satisfy
customer needs. Their structure may not be beneficial for many other company
but in this case for Apple it was very successful in using the matrix style of
the structure. Although the matrix style has some advantages or disadvantages
that above were examined.

From
all the structures of organization to define which one is better for
organization it is necessary to know also for the function of the organization,
what kind of performance has the organization. Not all the structures are
defined for all organizations but it also depend on their functionalities and
performance.