Information Technology and Control Systems
Functions of IT in Apple
Apple Inc. is a multinational technology company that develops, designs, sells computer software, online services, and electronics to consumers. Currently, in terms of revenue, Apple is the largest company dealing with information technology. When the company began in 1977, Steve Jobs and Stephen Wozniak started by designing a personal computer (PC) that is easily operatable to anyone. Apple Inc. underwent significant changes before finally settling on the production, designing, and sale of consumer electronics (Al-Laham, & Huth, 2011). With a large company such as Apple, the application of IT in the company is the most efficient approach. As a result, Apple Inc. has employed the use of Information Technology in several stages.
The main application being Apple’s online store, where its products are available to clients, and they can purchase through the Apple store. It acts as a retail store where Apple clients can buy Apple products, both hardware, software, and some apple accessories. The online retail was redesigned after its failure in 1997. The trade picked up, and through this, Apple Inc. made a billion worth of sales. This retail was first of its kind, and many expected it to fail, but Apple emerged surprisingly victorious. Apple has had a global connection with its customers and, in turn, enhanced trust and better relations with its customers. On top of its physical stores, the online apple store has helped increase sales, increase the popularity of the brand, and reduce congestion on physical stores available. The online services offered by apple stores also connects customers to the nearest apple product shops open in their locality.
The other use of information technology in Apple is the practical design of all apple products. Apple product designs are among the reasons why the company remains relevant in the competitive market. Therefore, the company values the designing process in the organization. The method of designing is separate from the rest of the company operations, and designers report directly to the executives. This policy gives them more time to focus on their work by avoiding reporting structures. The designs are done through virtual reality. The process is faster, detailed, and helps the executives visualize the idea with much ease. Apple designs are presented to the executives on Mondays to discuss the models and pick their next possible plan. Having designers use three-dimensional virtual development designs helps give a three-dimensional vision of the proposed designs. This approach makes the designing process easier, enable executives to have a visual on all the features through the illusion created, and it makes the presentation and movement of the design more accessible.
Control of inventory levels
Apple’s management and control inventory process in Apple is used to ensure the levels of production and sales to customers remain at the lowest possible cost. Apple has developed one of the best inventory management systems, which is efficient for all locations around the world. Due to its highly competitive nature, the company had to find a way to reduce its inventory and ensure the levels that remain in its storage facilities remain at a manageable level. Steve Jobs devised a new approach where sales forecasting accuracy was essential in providing only enough of the products that were manufactured, and there is no excess in the stores. One of the factors applied in coming up with the inventory management approach is the amount of pre-tax paid on devices. The company has to account for the manufactured products that were not sold and pay taxes for the commodity, which is an extra expense for the company. Apple uses the FIFO approach (Finkle & Mallin, 2010). That is, the products that were first to get into the stores are the first to leave to avoid the accumulation of old products in their stores. The approach has benefited Apple in several ways, such as saving on cost. The process ensures all old items designed are out of the storage facility before releasing a newly developed model to the market. Apple uses three measures to evaluate inventory performance; inventory turnover, cycle time, and the average level of inventory. The standards have been successful, and as a result, Apple takes weeks or months before releasing a new product in the market. In this period, Apple ensures the old models and levels of stock are as expected to prevent incurring losses.
Apple’s CIO
Apple Inc. still employs the expertise of CIOs in their information technology environs. Apple’s current Chief Information Officer is Niall O’Connor, who has been in office since 1997. In the 1990s, apple’s CIO’s central role was to determine how the company employed technology. However, today the use of technology in the company cannot be limited; therefore, the purposes of the CIO have shifted to innovation and control over warehousing and retail facilities. The CIO is also responsible for ensuring the complexity of using Apple products does not fall on the users but is shifted to the company. The CIO deals with any ambiguities related to errors related to apple products. However, it is noted that today people prefer using google to handle any uncertainty rather than contact the company’s help desk.
To protect customer privacy, Apple Inc. has a privacy policy that guides what the company collects, transfers, disclose, use, and store as personal data. The system is under constant review to ensure there are no loopholes in the existing policy. However, Apple does not control what the user shares willingly. The company policy only protects the customers in areas where they have no control. Also, the company has products security features on its devices to enhance data security. Apple has strict guidelines when it comes to user’s information guidelines. One of the most controversial guidelines used by Apple on its devices is an auto-erase function, which is activated after ten attempts to open a device unsuccessfully. This function makes data access illegally to be impossible.
Apple allows the owner of the device to make their keys and security protocols that even Apple cannot bypass such that it is entirely secure. By securing the phone, the company has gained complete trust from its customers and hence keeping the data of their clients completely safe from malicious people. All the data a customer keys in an apple device such as passwords, ID, email address, name, and other details are encrypted and secured from third party access or exposure to others. Any use of a client’s features is through their permission or request. If the customer declines the process, then Apple Inc. stops the process immediately. This process is similar to organizational data. Many companies prefer using apple products for their reliability in terms of security. Corporate data is safeguarded from theft and blocked from access by malicious people (Jun, & Park, 2013).
Enterprise management software
The company uses enterprise management software known as Jamf, which has many IT admins, all using Apple products all over the world. The software serves several purposes to the Jamf Nation. It connects users of Apple products through secure means necessary. The second advantage is that it perfects the authentication process and manages the identity of the users. In this process, the user’s productivity and IT workflows are also authenticated. In this system, the security is amplified, and possible threats are blocked. The software works in line with the company’s requirements rather than the users’ needs. The software has also been embraced by other companies and institutions and has turned out great.
IT impact decision-making.
IT influences all the decisions made in a company today due to technological advancements in production and market. Considering the line of products that Apple deals with, a lot of technology is involved. Therefore IT is the most influential factor in its production. The company has to ensure its products; both hardware and software are up to date. The decisions made have to be in consideration of the best technology available. Apple has to consider IT since all its products, services, and clients depend on this technology. Any malfunction or problem with their products will be attributed to a failure on the side of the company. Therefore, all their devices require technological expertise in their designs, manufacturing process, and even delivery to users.
Organization size, life cycle, and possible decline
Organizational lifecycles
An organization’s life cycle is the stages an organization goes through from its formation up to when it is completed. After a long period of studying the sequences in history, researchers came up with a model of the organizational life cycle, which has five phases. Research shows an organization follows a specific period, and it is not a random process of occurrence of events. The five stages are birth or existence, which indicates the formation and start of an organization. The second stage is survival, where the company seeks to develop and grow. There is an outlined framework to determine if an organization has reached this stage. The third stage is maturity, where the growth of the industry is managed and safeguarded. There is also an established plan for maintaining the growth of the firm. The fourth stage is a renewal, where the firm restructures its management style from a hierarchical approach to a matrix method. Changing management enhances flexibility and creativity in an organization. The last stage in the growth of an organization is decline. This stage is described as the death of an organization due to political issues influencing the organization. The organization is destroyed since people start to be preoccupied with individual matters and forget the organization.
Apple’s lifecycle lifecycle
Apple Inc. is in the maturing stage, which is the third stage in the organization’s life cycle. From its formation, the company has focused on several products to stay afloat. First, the company kicked off with personal computers before launching the iPod. The invention of iPods was succeeded by mobile phones after a few decades. Apple has since then depended on mobile phones as its main product. The product was well embraced in the market and has helped the company grow massively (Finkle, & Mallin, 2010). In terms of sales, capital, competition, and worth, Apple is ranked among the best in the world. However, the company has not been able to focus on another product that would possibly help the company upgrades. The company has not changed its style of management, which could enhance the creativity and flexibility of product invention and creation. Therefore, the company is still stuck at the maturity stage. However, it is not yet fully mature since some of the requirements for a knowledgeable company are still missing.
A mature company does not focus on expansion. Instead, it focuses on safeguarding its current level of growth. The company lays out plans and distributes tasks that focus on stabilizing the company at its current level. At this stage, the company specializes in its work and is durable. The stability of the company in terms of growth and its products makes the company reach maturity. Looking at Apple Inc., the company is in a similar state. The company has specialized in terms of the product dealt with. Over the ages, Apple has changed its focus on the leading products a few times and is now specializing in designing, manufacturing, and selling mobile phones (iPhones). The company is also now fixated on designing more than building and selling.
Apple Inc. designs the products all on its own. Still, when it comes to manufacturing and selling, a few more companies joined with apple to work together to ensure the products reach the market on time, to lower the workload, and to reduce the cost of production. The company is also not looking to expand since it is globally accessible to its customers. Apple has many clients all over the world. The international company has over five hundred Apple stores across the globe. Also, the company has availed online access to its product. Now customers can purchase these products online, and they can be delivered to them wherever they are. The company is thriving, and thus it is only working hard to maintain its current status in the market, among competitors and globally. Apple’s main aim is to ensure its products satisfy consumer needs and maintain the existing quality of their brand.
There are possible failures that make the company fall short of the maturity stage. Currently, research shows that people still use their old versions, such as iPhone 6, and they are efficient. Therefore, the updated versions lack value to them, and hence not many of their estimated clients purchase them. The company, therefore, falls short of its estimated profit when introducing a new brand in the market. Also, the availability of android mobile phones in the market at low prices is pushing the competition to another level. Therefore Apple falls short of the third stage in the product’s life cycle.
Organizational culture
Apple’s organizational culture has played a significant role in its success. The corporate culture of a business comprises of its beliefs, behaviours, values, and the philosophy of the activity practised by employees. As a company, Apple is reliant on employees’ innovativeness. This item is an essential factor when it comes to competition, services, saving on cost, and technology. Having innovative employees helps Apple Company maintain its relevance in the market. Creative employees ensure the products are of the best quality. Also, the employees provide there is just enough in the market and stores to avoid overproduction. Creative and innovative minded employees challenge the company and also help address some of the major problems faced by the company.
The company has an influential culture when it comes to quality products. Its brand has some of the best quality products available in the market. The company’s factor has gained Apple’s trust and preference in the market. Thus, the company has maintained this culture, which also provided a competitive advantage to the company. Its services are also of the best quality, and they operate on a customer preference policy. Thus, clients’ privacy, desire, and satisfaction are highly regarded (Heracleous, 2013).
Another critical culture in Apple Inc. is the environment where operations take place. Apple designers are separated from the rest of the process and hierarchy. Therefore they have direct access to the executive, and they are free to explore all possible designs and have more time to concentrate on their work. The company also outsources the manufacturing process in China. This act helps save on the cost of production, avail a pool of employees with experience in the field, and lower the price of manufacturing.
Apple is rich in the cultural organization, which has fueled the organization’s progress so far. Maintaining their culture is essential to their image. Apple employees all do their best to uphold their culture in all their fields of work. The company at large also ensures all its representatives, including their app stores, follow their lifestyle to reach customers’ expectations. There have been renovations in the company, but all of them have been in line with Apple’s culture.
To maintain its innovativeness and excellence in information technology, Apple has devised several methods to maintain their position. The first approach is hiring the best employees in the labour sector (Mohamad Yusoff, 2018). It has among the world’s best designers in the field of technology. Also, the company recognizes good work done by the employees and rewards them accordingly. Excellence is emphasized in Apple’s company as a significant contributor to success. Thus, those who contribute to this excellence need to be paid and encouraged.
Another important factor in Apple’s culture is organizational secrecy. When it comes to the field of Information Technology, Apple is on the lead. Thus, the company has many competitors in all areas. That is the production, manufacturing, and selling of these products. Many companies learn and develop their products following Apple’s designs. Any leakage of these designs to others would make Apple brand lose its credibility in the market as the lead. Therefore the employees and all other Apple associates are required to keep Apple’s information as a secret. Additional information may also be used by competitors and hence taking away their competitive advantages. The company thus has set rules, policies, and agreements with employees to keep all information related to the company a secret.
Apple is also known to have a culture of practising combativeness in moderation. This technique was introduced to the company by Steve Jobs to ensure the employees are worthy employees of Apple. When Tim took charge of the company, he lowered its effectiveness, but it is still practised in moderation. Therefore, the employees have to stay on their toes and ensure their knowledge and skills can handle the challenges presented. This approach has improved employees’ innovativeness and abilities a great deal.
Ethical Values
Apple’s adherence to ethical values.
As one of the most well-known companies in the world, Apple has put a lot of effort in ensuring that all its representatives exhibit high moral values and integrity to safeguard the company’s interests. The company has set guidelines and policies that ensure that there are conflicting interests with those of their clients. The established guidelines apply to all personnel who work for Apple despite their ranks. The company also has set aside a helpline where a customer can reach out in case they feel ethically violated by the company or its employees.
The company also ensures the employees work in a conducive environment and are not overworked. The employees also receive a fair wage and the necessary allowances. Also, to integrate the employees to the Apple community, they are recognized and commended when they do exemplary work. In the code of management, Apple requires all suppliers of Apple to give a safe working environment, treat employees with respect and the dignity they deserve. They should carry out their activities with fairness and uphold their ethics (Sawayda, 2011). The company also requires its partners and suppliers to carry out their activities responsibly concerning the environment, especially when they are working for Apple. If any of Apple’s suppliers break these regulations and violates the set code risks their work relations with Apple and faces possible termination. The same system applies to all other companies or individuals representing Apple.
Apple company also has set guidelines on how it handles its relations to its suppliers and others that conduct any business on behalf of Apple Company. The company requires all its associates to adhere to human rights and set labour regulations. The company prohibits any of its associates from employing minors as stipulated in article seven. Working hours of employees are limited to a maximum of sixty hours a week. The 60 hour is inclusive of overtime, but regular work hours should be a maximum of 48 hours for every seven days.
Apple Inc. and its associates ensure they outsource responsibly. All materials supplied to Apple for production need to qualify to the set guidelines. Some of the established guidelines include the areas from which the contents are sourced should not have any cases of child labour, many instances of sexual violence, forced labour and human trafficking, risks in the health safety of the people, among others. If the area exhibits any of these human rights violation extremities, Apple and its associates cannot outsource from it. The company also prohibits any acts that show a lack of integrity. That includes corruption, bribery, extortion, and any kind of unfair advantage obtained. All suppliers are also to set such policies and ensure they are followed.
When it comes to auditing, Apple requires its suppliers to evaluate and audit its operation to ensure they add up, and everything is carried out as stated in the set regulations and guidelines. The company is also required to carry out a periodic evaluation of the company’s management system. This report is submitted to the executives directly, and it helps to ensure the leadership capabilities of the team appointed in the management of the organization. All associates are required to develop statements that verify that they will abide by their code of conduct, ethics, and they will take up their responsibility to the environment. They are required to post this statement in a relaxed and understandable language to all their facilities.
Apple’s unethical practices
The multibillion company has severally failed to uphold its set ethics on several occasions. One of the several issues in which Apple has acted unethically includes not observing the employment of minors. In 2019, Apple faced a lawsuit where 14 parents sued the company for the death and injuries obtained by their children when mining cobalt supplied to Apple Company. Human rights sued the company on behalf of the company. In this case, there was also a violation of human rights in terms of poor and dangerous working conditions. The company and other defendants were sued for lack of proper management and governance of their suppliers. The company also failed in ensuring its employees are as stipulated by their standards.
Still, in 2019, Apple received a poor consumer rating from its clients on environmental responsibilities. One of the issues addressed is the effects of mining on the environment. Apple has no stated plan on how it covers mined areas to preserve the environment. There have also been reported cases of Apple’s conflict minerals. Other issues include the use of harmful chemicals such as phthalates, BFR, and PVC. These chemicals are found in parts of their products and are very harmful to the environment (Jingjing, 2013). Since 2019, the company has tried to face out these chemicals from its products. Apple is still trying to find an environment conducive option as a replacement of the same.
Many of the workers in the company’s factories in China complain that Apple is a two-faced company. That is when it comes to the world and its customers. Apple is a powerful, innovative, and highly profitable company. Many people would even wish to work or invest in the company because of its value and standard world. However, the company’s employees in China claim that the company is unable to attain its own set of ethical practices. The company also fails to abide by the National set guidelines in employee treatment. Despite the failure in its evaluation, Apple has not done anything to change the situation.
Apple’s pricing of its product is also another issue that is highly debated in terms of ethicality. Comparing Apple products to other brands in the market, the company products are highly-priced. The company argues that the focus on quality and consumer needs. Thus the company insists that all that matters is consumer satisfaction, and hence they are under no obligation to lower the prices of the product (Sawayda, 2011).
It is therefore clear that despite having set guidelines and morals for Apple and its associates, the company has failed majorly in upholding the set principles. The suppliers and other associates’ activities on behalf of Apple Company have been unable to obey the set ethical codes. This failure is a result of proper follow-up and management of these activities by Apple.
Innovation and change
Apple’s innovations.
As an information and technology company, Apple been previously ranked the first in the world hence the most innovative. This rank has resulted from various factors. Apple Company does not only bring new products to the market but also designs and manufactures them. In all these processes, Apple still emerges as the best overall. The company also hires innovative employees who have helped the company massively (Heracleous & Papachroni, 2016).
One of the factors that make Apple the most innovative is the business models. Apple has managed to maintain relevance in the market by not only developing the products but has matched them with Apple applications and iTunes. This idea was one of a kind where all Apple products are only compatible with those availed to the online Apple store. Apple also has a unique innovation system based on Apple’s culture and is less focused on the process. The main driver towards the success of the company is the rich culture of the system. The company is focused on quality products, innovation, efficient management of employees, and IT management, among other factors.
Another vital system in Apple’s innovation is the design process. As stated earlier, Apple uses virtual technology in crating proposed designs for Apple products. The company has set out Mondays as a day to meet and evaluate these designs. To ensure the designers do the best, the company has removed them from the hierarchy and necessary protocols such that they report directly to the executive. This act allows designers to be free to make their designs without any limitations. Also, by avoiding the protocols of order, designers of Apple products have more time and space to focus on creating unique and fabulous designs for the company.
Apple was founded in 1976 as a computer company. Since then, the company has undergone significant changes in production, management, and even the products they deal with. These changes have had a massive impact on the condition of the company today. After its formation as a computer company, the company ventured into making personal computers that were easy to use. This item was the main product for Apple for several years. However, with time, Steve Jobs launched iPods, which restored the company to its former glory. This product became Apple’s first product for several products before iPhones took over that place.
Apple reaction to changes
In the past ten years, there have also been remarkable changes in the company. After launching the iPhone in mid-2007, the company sales opened up and went up and peaked in 2015. With the growth in technology, the company introduced other products such as iPad, Apple Pay, Apple TV, and iCloud, among other products. Revolutionizing Apple Company has helped in terms of sales, company’s worth and expanded its operations (Jun, & Park, 2013). After the introduction of iPhones, the company now has global access and has increased the number of its long term clients significantly. Since then, the company has focused on improving the brand by releasing improved iPhone models to the market. Currently, the latest model is iPhone 11, which has enhanced features compared to previous models, but all the same, the prices are high.
The company seems to embrace the changes positively and take it as an opportunity for growth of the company and retain its position and relevance in the market. One example of how Apple Company has embraced change is when the use of mobile phones became a necessity, and its demand in the market raised. Then, Apple decided to expand its operations by introducing its mobile phones called iPhones. Apple Inc. took advantage of the existing gap in the IT sector and took advantage of it instead of becoming irrelevant in the market. By then, Apple’s main product was a music player who would have been deemed useless with the newly introduced phones, which could play music and serve other purposes as well.
Apple Company took the change as a challenge and decided to be even more innovative. Using mobile phone technology, Apple produced much better mobile phones. That is in terms of quality, functionality, and all other portable operations. Ever since then, Apple has managed to stay ahead in this competitive industry. The company has successful organization protocols, design ideas, access to the best technology, and high capital that ensures the company leads and others follow. The company operations and designs are of the best quality in the market. Therefore, the customers do not even mind the high pricing of Apple products since they purchase them anyway because of the brand name.
Apple is, therefore, an innovative company and has retained its position in the market because of embrace change. Before the changes in Apple’s main products, it was just a small million-dollar worth company that focused on IT products but did not stand out. However, after taking advantage of the rise in demand for mobile phones, the company sales and profits were massive. The company raised its sales to the billion-dollar worth of sales. Currently, Apple Inc. is the best and biggest IT company overall in the world. Last year the company registered over eleven billion dollars sales where most of them consisted of mobile phone sales.
Decision-making processes.
In Apple Inc., the decisions made mainly depend on the executives. There is a hierarchy of order to be followed when it comes to issuing guidelines and following rules. All Apple employees fall under this hierarchy. They are all supposed to follow the set protocol with the exemption of designers in the company. The set guidelines are also inclusive of third party employees that are employees who are hired by suppliers and associates. The company follows a top-down approach where the employees answer to those on top of them in the hierarchy. At the top, there is the company’s executive ant the company’s CEO. The board of directors and the CEO are responsible for significant decisions made in the organization. These decisions include product designs, suppliers, and companies to partner with, financial matters, and sales.
The company has also delegated some duties such as interdepartmental issues, personnel problems, and internal matters to departmental managers to handle these issues. Apple’s centralized management has enabled the company to make the right decisions in the interest of the company and not individuals’ selfish motives. The only people with freedom in the organization are designers. They have direct access to executives and are allowed to be part of their Monday meetings to discuss proposed model designs. However, any discussion for the rest of the employees must follow the set protocol.
The main reason why Apple uses the top-down approach when it comes to decision making is to retain its secrecy policy. The company is very secretive of its plans and decisions due to competition. Apple has many copy cats and competitors who will do all it takes to take Apple’s position in the market. Therefore, Apple has adopted the secrecy policy to prevent competition and malicious people who might want to destroy the company’s legacy. Also, having a centralized management system has been in the company’s culture since its formation. The current CEO, Tim Cook, is more friendly in his governance. He encourages employees’ suggestions but maintains the top-down management approach.
There has been no need to change the set approach since it has been highly effective. Any attempts to change the decision-making model has proved to be fatal for the company. One such case was when Gil Amelio was the CEO in the 1990s. The company was declining because Apple computer sales were reducing significantly. Amelio and the then board of directors decided to bring Steve Jobs back to the company. Apple bought Steve Jobs’ company NeXT. Steve Jobs’s decisions to bring in a new line of products put Apple to its former glory. Steve Jobs then appointed Tin Cook as the CEO to improve the company’s situation. Note that all these actions were individual companies from the founder that resulted in the success of the company. It is, therefore, clear that the company decision-making process is the top-down approach.
Tim Cook took over entirely after Steve Jobs passed away. Previously Cook worked under Steve as an innovator, and he had proved that he was capable of managing the company. The company decisions thereby were entrusted to him. However, before he makes any decisions, he has to consult with Apple’s board of directors. He proceeds with their advice and views on the issue. However, Apple should reconsider their decision-making approach by allowing employees to make decisions but under supervision of management to ensure the decisions made are in line with company principles and the company stands to gain from it (Heracleous, 2013).
Currently, any decision or issue affecting the organization is attributed to its top management. Any failure, mismanagement, or unethical behaviour is blamed on the administration. This act makes control even more cautious about their actions and decisions. Before making any decision, the company has to estimate the exact effect on the company and any possible failure of the same. The company, however, has a simple leadership from the top that makes decision making easy and fast. The leaders argue that the company is massive. If they allowed employees to make decisions, it would lead to confusion, disagreements, and time wasted making decisions rather than implementing them.
Every day new trends are emerging all over, and customers yearning for more and a different each day. Apple has stayed in the mobile manufacturing business for a while now. Therefore, the company needs to diversify its products. Adding new and fresh minds in the decision-making process may help a lot in the company’s decisions and the unveiling of new products and designs—also, Apple Inc. The company hires the best of the best when it comes to labour supply. The customers should, therefore, put these smart minds to good use for the company’s advantage. Apple should set guidelines when it comes to decision making and let its employees make some of the decisions and test the outcomes. Maybe this is the only big move Apple has against its competitors who are bridging the gap fast.
The move should be carried out very cautiously since the company has achieved stability in management and its decision-making process. Removing the wrong piece of the puzzle could result in detrimental effects on the organization. This hierarchy is independent of Apple’s suppliers and associate companies. The other companies have their decision-making systems but require to ensure the company follows Apple’s set principles.
Conflict, power, and politics
Apple’s conflicts
Apple Company has handled quite a several conflicts since its formation. When it comes to a business, there are interpersonal conflicts where individuals have issues with people working in competitors companies or even in the same company. Having interpersonal conflicts is not wrong, but it is if the problem gets dragged to the organization. Others are intergroup conflicts, where the whole organization conflicts with another, with client companies, suppliers, or a particular country.
Apple handles its conflicts on a case by case basis. However, in its ethics, Apple Company explains how their employees can handle conflict amicably without dragging down the name and reputation of the company. In the suppliers’ and employees’ code of conduct, the company has clearly stated how they should handle conflicts, primarily when representing the company. Some include not hurling insults or becoming aggressive. Instead, they should remain calm, listen to the complaint, and handle the issue amicably. However, if the problem is above their clearance, they should direct the person or group to a person who can deal with the matter.
Apple is not perfect and has its shortcomings. Sometimes, the company goes over the line when it comes to conflicts. However, the main reason why Apple has not lost its face or customers is mainly because of how they handle disagreements. The company practices openness on such issues. The company admits when it is wrong and amends the problems. In 2019, Apple was accused of using harmful chemicals in packaging, and some of the product components. Apple has since addressed the matter and is currently looking for environmentally friendly substances to replace the toxic chemicals. Also, the company has been open when it comes to shortcomings related to its products even before they are available in the market. This openness has enhanced trust from clients and formed long term bonds with the company.
One of the long-existing conflicts is between Apple Company and China. Apple outsources from China due to its low cost of production and availability of raw materials. However, both China and the USA have a low labour supply needed by the company. The USA also does not have enough labour to supply what Apple needs. An investigation carried out shows that Apple employees are overworked. There have been cases of suicide and deplorable working conditions in Apple manufacturing industries. As a result, there have been long term conflicts between Apple and the Chinese government. There are claims that the company has neglected its workers and failed not only to obey national requirements but also not to fulfil its own. Apple has since apologized to China and wants to make amends.
Apple’s latest conflict has been between Apple and the FBI. The matter has even been taken to court several times. The issue relates to Apple’s policy on the privacy of its devices. Apple Company came up with the condition that if a locked device is to be opened, after ten unsuccessful attempts to open, the device will wipe its content clean. The FBI has been majorly affected by this principle since they cannot access suspect devices. The bureau requested Apple to create a back door for them to obtain such information when needed. However, Apple has adamantly refused their request and maintained that they could not knowingly create a loophole that will endanger their clients’ private information. The company goes to such lengths to protect its customers. Such an act of good faith enhances customer and partner relations.
Power handled within Apple Inc.
Apple is a dominant company in the world and the world of Information Technology. According to Steve Jobs, the company has six sources of power (Kahney, 2008). These powers are expert power, legitimate power, reference power, information power, and reward power. Employing all these power in managing an organization results in tremendous success. From the formation of the company, the company had influential leaders who could drive it to its success and maintain its power all over the world. iPhone took the world by surprise, and their sales hit the billion record making the company a multi-billionaire enterprise. Since 2007, the company has grown massively and established its dominance in the world.
The first type of power Apple possesses is expert power. This type of control is sourced from innovativeness, unique skills of workers, and their expertise. This skill enables them to handle the products, management, designs, and manufacturing processes in the best way possible. The second power is legitimate. This power is where leaders have control over employees. He or she is responsible for making decisions and overseeing their implementation. If a company has such a leader who knows how to manage the company effectively without selfish interests, they can ensure the company succeeds.
The third type of power is reference power, which results from respect and likability. Apple has developed respect from other organizations and clients from all over the world. Apple holds a prestigious position in society and, all the companies look up to the company as a role model and mentor. However, the organization seems to have relaxed due to assuming the position of a pacesetter instead of a competitor. The fourth power is information power. Apple is now a pacesetter in the market. Many companies looking up to it seeks information about its leadership, innovativeness, among other issues that are a challenge to them. The company, therefore, has many suppliers who want to be associated with Apple. The fifth power is coercive power is used by Apple to punish employees and associates who do not comply with the rules of the company. The ultimate authority is reward power is used by the company to award and recognize employees who perform well and work exemplary to benefit the organization. All these powers require efficient management to ensure they are put to good use. The company, therefore, does not require a capable leader but qualified employees who can handle this much power efficiently.
Apple’s political environment.
In terms of politics, the company has had several issues related to tax evasion, unethical behaviour, and failure to follow requirements set by the nations the company operates in. These issues depict a company that has an active political environment. Also, Apple operates internationally and often finds itself in the middle of political differences among different countries. One such instance is the current China-USA trade war. This situation puts Apple at a significant disadvantage since its primary operations are located in the two countries. In case any restrictions are put in place, Apple will suffer massively.
Summary
Apple’sApple’s future success appears to be optimistic at this stage. The company has created a family due to the company’s culture, unique designs, reliable products, and openness. Apple has managed to develop solutions to its major problems and beat all odds to stay at the top. The company has also played a significant role in the currently available technology. The multibillion company has created opportunities, invented devices, and new IT services that have resulted in the immense growth of technology worldwide. Apple’s innovativeness, skills of management, and sustainability are also motivators to other companies aiming to grow and maintain their relevance in the competitive market. Apple makes massive profits that are put back in the business and used in the costs related to inventions, designs. The rest is either shared among the shareholders or invested. These factors have helped put apple at the forefront in power, competition, and the overall value of the company.
However, Apple is not as perfect as it may seem. Many of its workers based in China are unsatisfied with Apple’s working conditions. These employees are also complaining of being overworked. As a result, Apple is facing several lawsuits from its employees. Apple is also involved in other unethical issues caused by its suppliers. Such cases and immoral behaviours are dragging Apple’s name and reputation in the mud. Apple needs to put more effort into handling these conflicts to save its reputation and loss incurred compensations of those who sue the company.
To ensure the company’s success, Apple needs to re-evaluate its management and closed system as its mode of operation and determine if it is the best mode of operation. For the last ten years, Apple has embraced a lot of changes that have put the company among the best in the world and also boosted sales massively. Today, Apple has exceeded the level expected by its founders back in 1976. Apple should ensure the evolving process is constant such that it has more variety of products as main products to ensure it remains relevant in the ever-changing competition (Thao, & Tsanthaiwo, 2017). If the company retains its current influence and momentum in the market, there will be no stopping. Apple continues to be a pacesetter in the market.
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