Nature of the business:Apple INC is a multinational company. Steve Jobs (February 24, 1955 – October 5, 2011) was an american entrepreneur, inventor, and industrial designer. He was the chief executive officer (CEO), and co-founder of Apple Inc. He was also a member of The Walt Disney Company’s board of directors and the founder, chairman, and CEO of NeXT. The nature of the business is manufacturing technology devices, operating software, application software and providing services. Initially, Mac was not only a computer.
It included a set of software, by Apple, that made a huge difference at the time. When Steve Jobs took over Apple again, the company software was non existent and the hardware line was not doing very well. His way to save Apple was to simplify the product line and to re-discover an entry model: the iMac.
This was simple and doable, for a company in a bad state, both financially and spiritually. In the past few years, Apple has introduced its essence not just as a hardware company but it is also a platform company. It stands out at designing products, be it hardware or software or service, provided it can plot the whole experience.A few of the softwares are: QuickTime, Safari, iLife (iMovie, iPhoto, photobooth iDVD, iTunes and GarageBand), iCal, Final Cut Pro (which it bought from Macromedia but greatly improved) and Express.Organisational structure:In general, A firm’s organisational structure can create opportunities for business growth. However, it can impose restrictions on how the firm develops.
A tall structure is basically one which has many levels of hierarchy. In these organizations, there are usually quite a few managers, and each and every manager has a small span of control – they are in charge of only a small group of people/workers . In this case apple uses the tall structure strategy where it has different departments supervised by different directors (financial, marketing, chip design, phone cases, etc). In Apple’s case, the organizational structure is mainly a traditional hierarchy, with some essential components from other types of organizational structure. The success of the company is linked to innovation and the leadership of Steve Jobs, but its organizational structure is partly responsible for ensuring support for such leadership. Now, under Tim Cook’s leadership, Apple has made some small changes in its organizational structure to suit market and industry demands.
The following are the most crucial characteristics of Apple’s organizational structure:Spoke-and-wheel hierarchyFunction-based groupingProduct-based groupingSchematic representation of the different departments headed by Apple with their respective directors: Recruitment policy of Apple: In general, recruitment and selection are the most familiar roles of the human resources department. Recruitment and selection includes attracting and selecting the best candidates for vacancies that arise.As for October 29th, 2013, Apple had about 80,300 full time employees across the world.
All of which had been through the strict requirement to be one of the employees of World’s 2nd largest information technology company.Each applicant needs to undergo 3 to 4 rounds of interviews, that is if Apple is satisfied with the resumes you’ve given them. Details of the first interview will be notified to the candidates after about 2 to 4 week. The first interview will be a group interview. Applicants will be set in a group setting with about 15 other candidates. During this first interview, Apple employees will ask each candidate a series of social questions, social and more of a people person would be what Apple really wants. During this interview as well, the candidates will also be present for several role-play scenarios in which they get to act both as the Apple employee and as the customer.
Each parts of the interview will be carefully screened, even the interactions between candidates. The most important point was to dress up properly, smile and ask relevant and quite a few questions so that they know you are interested and curious about the job. The second interview will be notified within 2 to 6 days or a week span and a phone call will be received by each candidate who had passed the first one. They will be asked about their opinion on Apple, about their interest of job position in Apple, etc.
This phone call interview might last for 15 minutes and the candidate will be ask to come in person for another interview in which they will be asked of their past experience and how to handle certain situations and many other things. The interview will be done one on one with the store manager.For the third interview, every response of the candidate might be evaluated, like will the candidate respond with a question or a situation. It might also be possible that they were told not to wear anything formal like shirt and tie, so in conclusion they might also be evaluated by their clothing. The questions asked in the third interviews would most likely similar to the last 2 interviews about how they past experience and how to handle certain situations. This interview will be done one on one with the general manager.For the last interview, the candidate will be ask to come into another one on one interview with the head manager/high level manager. At first, it might be like the past three interviews, some standard questions were asked, but it might get to more personalized question about the past of the candidates.
The interview might last for 20 minutes and it was said that the candidate will be notified within 3 to a week span.The rejection which happen to most of the applicants will be notified either using emails or phone calls, but it was more common that it will be done through emails.Marketing Mix: The marketing mix consists of the 4 P’s; Product, price, promotion and place.
It is about putting the right product in the right place at the right time, and at the right price. you need to know every aspect of your business plan to do well. Products and services provided: The products provided by apple are: iphone, iPod, iPad, Mac, Apple watch, Apple TV and Airpods. Software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of accessory, services are provided by the company. iPhone: It functions as a camera, portable media player, and Internet suffer including email and web browsing. The various models of the iPhone that Apple provides their consumers with currently are: iPhone 6S, iPhone 6 Plus, iPhone 7, iPhone 7 plus, iPhone 8, IPhone 8 plus and iPhone X. Apple offers their consumers with support and service for their iPhone if there’s a problem. Their support articles might answer any questions of the customers.
They can help by repairing broken screens, replacing batteries, and fixing other issues in the iPhone. There’s no charge if the problem is covered under warranty, AppleCare+, or consumer law. If the issue isn’t covered, the price will depend on the type of repair the phone requires. If they can’t repair the iPhone, they might need to replace it.
The iPhone models in detail :The original iPhone – when it was released in 2007 it changed the world. It has a multitouch screen and was one of the first ever advanced touch screen phones. The iPhone 3G and 3GS – the original iPhone was upgraded in 2008 with a complete redesign and support for 3G networks finally allowing customers to download files and surf the internet quicker.
3GS was updated in 2009 with a few new updates.The iPhone 4 and 4S – The iPhone 4 was launched in 2010, this time with a glass body. It’s the first time that “Retina Display” had been included by Apple.
It’s the phone that made headlines for “antennagate” because holding it in the wrong way would drop the cell service. In the iphone 4S which was released in 2011, ‘S’ stands for speed and siri. Siri is a new feature that was added to the iPhone. The iPhone 5, 5S and 5C – the iPhone 5 had launched in 2012, Once again Apple shifted the design of their iPhones.
It changed to a lighting port from a 30-pin charging port. It also added LTE support for new 4G networks. The iPhone 5S and 5C, launched in 2013.
They added the finger reader technology to the 5S and the 5C was made of a plastic shell, they were available in very different colours; blue, pink, yellow and green. The iPhone 6 and 6 Plus and 6S and 6S Plus – Apple launched the iPhone 6 and iPhone 6 Plus in 2014. This was Apple’s first large-screened smartphone.
Both were the first devices to support Apple Pay. The iPhone 6 Plus had a very advanced camera with optical image stabilization to help users take better quality pictures. The iPhone 6S and 6S Plus were introduced to the users in 2015 with a few updates. The iPhone 7 and 7 Plus – They introduced this model in 2017. It maintains the design introduced with the iPhone 6 and carried through the iPhone 6s. The iPhone 7 Plus has an advanced dual-camera system for Apple’s “Portrait” photos. Both phones did not consist of the headphone jack and were introduced in new jet black, matte black and, more recently, red color. These devices are water resistant and feature the most advanced processors Apple has ever included in its phones.
The iphone 8 and 8 Plus – These models were introduced in 2017. It has an all-new glass design. It has the most smartest chip in an smartphone and consists of wireless charging.
It has one of the best quality cameras iPhone has ever created. The iPhone X – This Iphone was introduced in 2017. this model is entirely screen and requires face ID to log in. It has various new features like the best camera and wireless charging.
The model also has a quality of being water resistant. Mac: There are various models of the Mac too. They provide their consumers with Macbook pro, Macbook air, iMac and iMac pro. To get any damage in the Mac fixed the customers will have to set up an appointment with an Apple store or Apple authorized service producer.
There’s no charge if the issue is covered under warranty, AppleCare+, or consumer law. If the issue isn’t covered, the price would depend on the kind of repair required by the Mac. Customers could ask service representative for an estimate cost. If the customer is experiencing a problem that does not need repair but requires guidance, they provide them with a few tips on their official website.
These are the two main products sold by Apple. However, they have other products as mentioned above. The Mac’s in detail: Macbook : it is sold at an approximate price of ?104,800 MRP LED-backlit Retina display, Turbo Boost up to 3.2GHz, Up to 10 hours battery life, 256GB or 512GB SSD, Force Touch trackpad and it is about 0.92 kg (2.
03 pounds). Macbook Pro – available at the price – ?154,900 MRPLED-backlit Retina display, Turbo Boost up to 3.4GHz, Up to 9 hours battery life, 256GB SSD, Force Touch trackpad, 2.04 kg (4.
49 pounds)Macbook Air – the price at which this is available at is ?77,200 MRP LED-backlit widescreen display, Turbo Boost up to 2.9GHz, Up to 12 hours battery life, 28GB or 256GB SSD, multi-touch trackpad, 1.35 kg (2.96 pounds)3iMac – Price: ?90,200 MRP LED-backlit display, 1TB 5400-rpm hard drive2, Magic Keyboard and Magic Mouse or Magic Trackpad. iMac Pro – Price: ?415,000 MRPLED-backlit Retina 5K display, Turbo Boost up to 4.2GHz 1TB SSD2, Space Grey Magic Keyboard with Numeric Keypad and Space Grey Magic Mouse 2 or Space Grey Magic Trackpad 2.
Pricing strategies: The following table contains the prices, lifespan and a few more details about the products:Companies target a certain audience and then decide the kind of pricing strategy they shall use. Apple uses price skimming. Price skimming is where a high price is a set for a new product on the market. Despite the high prices of the Apple products, people across countries stand in large lines on the first day of sale. Apple mainly targets the business men and women. Companies like Apple sacrificing sales to gain high profits would use skimming. Apple uses this strategy in order to reimburse their cost of investment put into the original research of the product.
Places where Apple products are sold/ Distribution channel:A distribution channel is the means by which a product is passed from the place of production to the customers. Apple uses distribution channels 2, 3 and 4. Distribution channel 2 is when the producer sells the product to the retailer and the retailer sells it to the customers.Distribution channel 3 is when the producer sells the product to the wholesaler and the wholesaler divides the stock into small quantities and sells it to the retailers, the retailers have the job of making it reach the customers. Distribution channel 4 is when the producer uses an agent in another country. The agent sells the products to the wholesalers, the wholesalers sell the products in smaller quantities to the retailers and finally the consumers buy their product from the retailers. In the case of Apple, they sell their products to many online stores and retail stores who then sell the products to the consumers. Apple also provides Direct sale forces and third party wholesalers with their products who deliver the following the products to the consumers.
This is a picture that explains us how Apple manages to sell their products:Promotional strategies:Apple has multiple strategies to promote their products. However, they don’t require many promotional strategies as they are an established company and do not need any marketing and advertising to show the customers that they have good brand image. Ignoring the fact that they are an experienced and established company, they still have some strategies which include:Ignore the critics – There are many people who do not like the products and services provided by apple and hence criticise them and decrease their confidence level.
Apple decided to ignore the critics as they are not very important Turn the basic into the beautiful – the basic product is a mobile phone and laptops. Apple takes that product and provides creative and different features to it for its customers to enjoy. Adding unique features to the phone would provide apple with a greater consumer base. Justify your price – Apple has very high prices for its products but they convince their consumers to purchase the products because they provide them with services that no other company offers. Communicate in the language of your audience – Since Apple already has a good brand image, it is easier for them to persuade one into buying products and consumers are very gullible and anything you say would convince them to buy products. Apple speaks to their consumers in the way they understand the most – visuals. They talk about the benefits of the products.
Apple has a promotional strategy that focuses on the emotions. The apple brand personality depends on lifestyle, imagination, liberty, passion, dreams and aspirations. They also offer new features and services to gain customer loyalty. Sources of finance:This is a table that shows how Apple uses the fiance they receive. They use the method of ‘issues of shares’ as a source of finance.
In this case, the dividends are increasing which shows a growth in the company. This would also make more shareholders buy shares and invest into the business as the dividends are high. The table also shows the debt that apple has to pay back to their debtors. (couldn’t find any other information)(couldn’t find any other information)Legal issues faced by the company:Apple has faced a few problems over the past few years. The iPhone, which accounts for the bulk of Apple’s revenue and profits, has suffered from slumping sales for multiple quarters, with the launch of the iPhone 7 unable to reverse that trend. The sales of their other products like, Macs and ipads have also fallen.
Few of the issues faced by Apple:Apple and samsung at the supreme court in 2016:The country’s top court will hear a long running dispute between Apple and Samsung over the design of the iPhone. The stakes are high: $400 million, an important conceptual property law issue—and a lot of pride for two corporate rivals and the consumers who love them.A jury found that Samsung overstepped not just one, but three of Apple’s design patents. One covers the early iPhone’s black rectangle shape with rounded corners, and another covers the raised frame (also known as the bezel) that holds the screen to the rest of the phone.
The 3rd one covers the layout of 16 colorful icons on the screen.It was said that an appeals court ruled Samsung should hand over all of the profits it earned from products that copied the iPhone’s design. Samsung thought it was unreasonable and it should only be on the hook for the value represented by the copied features.Apple faces threats of legal actions over ‘in app’ payments in 2014:Apple may go through legal action in Europe over claims that it has not done enough to stop children making “in app” purchases through mobile apps, in the latest sign that the continent’s authorities intend to put Silicon Valley companies under greater scrutiny. The basically focused mainly about purchases made by children playing games on apps without their parents’ consent.Conclusion: Apple is an American multinational association that designs and manufactures electronics, computer software, and personal computers.
The company’s best-known hardware products include Mac computers, the iPod, the iPhone and the iPad. Apple has overall grown as a company. they sell products worldwide because of the use of their brilliant promotional and pricing strategies, it attracts consumers and encourages them to buy products.