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  1. 1. HOW INTRINSIC AND EXTRINSIC MOTIVATION FACTORS AFFECT EMPLOYEE PERFORMANCE? Case of: Apple Inc Master of Business Administration Author Name: Ghulam Mustafa Student ID No: 00106318 Submit Date: 09th November 2012Ghulam Mustafa ID 00106318 Page 1
  2. 2. ACKNOWLEDGEMENTI want to express my gratitude to Mr. Mohammed Nadir, supervisor of my dissertation, without hishelp and guidance it would have been easy to draft my research work. He has been a mentor, asupport and a counsellor who has guided me through the process and helped me find the strengthin me.I also would like to thank my parents, whose upbringing has made me stand where I am, a placewhere I can work my way up to fulfil their dreams and complete my degree successfully.In the end, i would thank my mentors, tutors and friends, without their guidance, this work wouldhave been impossible.Ghulam Mustafa ID 00106318 Page 2
  3. 3. PROJECT DECLARATIONStudent Name: Ghulam MustafaI am submitting this project as a part of the assessment and appraisal for my Masters in BusinessAdministration (MBA). It is hereby declared that this project has been finalised by my own personalefforts. As far as any study, research and work are concerned, they are a part of the guidance givento me by the supervisor of my project or people who are related to the research e.g. librarian, peopleparticipated in survey in connection with research and so on. I also declare that this project is afresh research work and has not been formerly used as a substantial element for any other work,such as a contribution towards another qualification, academic or professional, even if it were alower level.Ghulam Mustafa ID 00106318 Page 3
  4. 4. EXECUTIVE SUMMARYThis document is a reflection of the challenges and prospects of Apple Company that are presentedin a globalised context. It explains the concept good sale and good services. The literature will alsodemonstrate terms that are used very often in the Apple Inc. system is in application in countries inall over the world, however, there is emphasis laid on its success in the United Kingdom. They havestarted operations of the Apple company system in the early 90s after much popularity of thesystem and mainly due to the huge amount of Muslim immigrations to UK. However, there are stillsome policies that need to be emphasized to make it more profitable for the UK economic system.An Apple company system does say that the regulation of money is more important than theaccumulation of wealth as according to the concepts in Islam which hugely discourages theaccumulation of wealth. Much address is also made in the literature as to how Apple Company isvery important in bringing the balance of power and wealth as the developing nations of the worldare mostly Muslim countries and they are the ones who are being suffered from the huge impacts ofinterest. However, the literature also lays key emphasis on the realizations made by the west regardsto the influence of interest Apple ing or conventional Apple and the way conventional Apple hasharmed the economies of scale in the latest credit crunch. There will be differences and similaritiesdiscussed in the literature regards to the comparisons made between the conventional Apple ing andthe Apple company system and how the conventional Apple system has been so popular as it reallyattract businesses and investors but never deals with the long term sustainability elements of thefinance and Apple in a more globalised context. Lastly, there will be recommendations as to how farit is important to promote and market the idea of an Apple company system, its benefits and ageneral know how to the public regards to its benefits. Training programs in universities andcolleges can influence the skilled work force that is needed in the sector to make it more marketableand efficient for use. Thus, an Apple company system is the new way of the Apple world whichdeals with company free Apple and gives its customers a range of financial products that they canuse for their future financial needs.Ghulam Mustafa ID 00106318 Page 4
  5. 5. Table of ContentsChapter 1: INTRODUCTION .................................................................................................................... 07 1.1 STUDY BACKGROUND ........................................................................................................ 07 1.2 RATIONALE ........................................................................................................................... 07 1.3 AIM & OBJECTIVES .............................................................................................................. 07 1.4 ORGANISATIONAL PROFILE .............................................................................................. 09Chapter 2: LITERATURE REVIEW ......................................................................................................... 11 2.1 INTRODUCTION.................................................................................................................... 11 2.2 WIDER MARKET ACCESS ................................................................................................... 12 2.3 GREATER PARTNERSHIP POTENTIAL ............................................................................. 12 2.4 ADMINISTRATIVE AND COMMUNICATIVE FLEXIBILITY ....................................... 123 2.5 BETTER ACCESSIBILITY AND CONVENIENCE ........................................................... 123 2.6 CONCLUSION ...................................................................................................................... 134Chapter 3: METHODOLOGY .................................................................................................................. 27 3.1 INTRODUCTION.................................................................................................................... 25 3.2 RESEARCH PHILOSOPHY AND SRATEGY ...................................................................... 25 3.3 DATA COLLECTION ............................................................................................................. 25 3.4 RESEARCH DESIGN ............................................................................................................. 26 3.5 STUDY LIMITATION AND CONCLUSION ........................................................................ 29Chapter 4: FINDINGS AND ANALYSIS ................................................................................................. 30 4.1 INTRODUCTION .................................................................................................................... 30 4.2 PRESENTATION AND DATA ANALYSIS .......................................................................... 30 4.3 INTERPRETATION AND CONCLUSION ............................................................................ 38Chapter 5: INTEGRATIVE ANALYSIS AND DISCUSSION ................................................................. 39 5.1 RESEARCH STRATEGY ....................................................................................................... 38 5.2 DISCUSSION AND ANALYSIS ............................................................................................ 40Chapter 6: CONCLUSION ........................................................................................................................ 11References .................................................................................................................................................. 40Appendices ................................................................................................................................................. 40Ghulam Mustafa ID 00106318 Page 5
  6. 6. TABLE OF FIGURESFigure 1 7 s Model ..................................................................................................................................... 12Figure 2 Maslow’s Hierarchy of Need.................................................................................................... 21Figure 3 Two Factors of Motivation ...................................................................................................... 22Figure 4 Approaches of Research ........................................................................................................... 30Ghulam Mustafa ID 00106318 Page 6
  7. 7. Chapter 1: INTRODUCTION1.1 STUDY BACKGROUNDApple was founded in April 1976. The company is an American corporation which was founded byMr. Steve Jobs, 21 at the time and Mr. Steve Wozniak, 26 years old. However, both were droppedout from their college. The Wozniak one of the partner with the Steve jobs had developed a box ofphone calls which allowed making long distance free phone calls. After a long time of this inventionthey both decided to join in the same platform and form the company (Apple Crumble, 1997)The headquarters of company is in Cupertino, a town in California, recently made CEO Mr. TimCook after the retirement of co-founder is Mr. Steve Jobs. The company has over 284 retail outletslocated in 10 different countries around the globe. The recent tragic death of Steve jobs hit theshareholder confidence for a small period of time and the shared went down following the news ofhis death. However the company regained the momentum of success (Bartholomew, 1999).Apple Inc. moved along with the innovation and changing technology on constant basis. Thecompany manufactured computer design and the hardware.The company initially gained popularity for their personal computer line known as Macintoshpowered by Mac OS. This enabled company to obtain a huge loyal user-base. However thecompany continued the technological advancement and attained the success throughout thebusiness process. The company gained success throughout operations. Thus the company becametop company in the innovation and the technological advancement (Kupfer, Andrew, 1992).The success of technology such as iTunes, media application, iPod (personal music player) andiPhone has gained the remarkable success for the company and enable company to gain the hugecustomer base.1.2 RATIONALEThe rationale is important part of every thesis which research has been done according informationof dissertation and need of course required because rationale indicate very high quality of methodwhich is written by writer and it should be helpful for new people who can read it and getinformation regarding their requirement. Rationale is important behalf of purpose and this work willbe done according that level and should be standard and quality and especially essential whensubmit purpose give these references according dissertation that will be done according main themof research and which information has been mention is questionnaires that is main them ofrationale in research. The aim of this research is considered with motivation of employment eitherinternet or external what will effect on employees who work in any organisation without motivation.So just find out that what is main purpose of motivation? This study is considered with limited areaswhich coming for employee’s motivation and satisfactions. In being or smile organisation havingsimilar problems which is considered with employer and with employees and these issue are sincelong time going on and having not finished yet, always employees want rewords, benefits, holidayspay, sick pay leniency from top management. So my research is considered with employees benefitand motivation which make happy to work in any company or organisation basically motivations isvery essential for employees who work it should be from management or even from top levelmanagement it will keep employees inside of organisation and make happy to work for it with hardGhulam Mustafa ID 00106318 Page 7
  8. 8. working and sincerely without losing brand name and quality of company because so many beingcompany fallen down due to management and staff who work there or when they merge whybecause there is many problems when two organisation want to be merge with help each other andbuild name in market with of staff and making quality of brand and standard and make some valuein market it is very difficult to launch new product in market and having already many competitorsavailable in market with best deal and quantity and quality so in case every smile business man orbeing business man want be best in market and give their product for customers which they need incurrent timing it is all depend on management of employees who want sale and make profit forcompany and as well for customers so recording these issue having all companies members whowant earn more and more money through their business and make profit. According my researchemployees should be happy in work place and comfortable and easy to work having no stress fromtop level management and should be friendly environment in office having parties and get togethersome time and giving them reword per annum it will keep employees happy and comfortable formore work. Especially being organisation doing these activities only for their employees as wellgiving them good training and during training company giving them facilities like accommodationwhen any employees going for training even home country or in parents country company shouldcare his employees giving them food, accommodation during period of he or she live there thesethings keep employees in touch of same company for long period. The rationale for the research is to gain the knowledge and experience. The rationale for the research is gain the practical know how of the industry so that the theoretical knowledge can be linked to the practical knowledge. The rationale for the research to obtain the access to the practical world where the links in the job market can be established. The rationale for the research is to develop the personal skills of the research. The rationale for the selection of Apple Corporation is that it fulfils the minimum standard of the company where the research can be conducted and enable researcher to obtain the good amount of information and knowledge that enable researcher to achieve the purpose.1.3 AIM & OBJECTIVES To investigate the impact of Intrinsic and Extrinsic motivation factors on employees performance. Which are main them of motivation for employees during their job with any organisation? To investigate the employees preferred motivation factors. Comparing both factors. Research will be both side for employee’s x and y employee’s To investigate the inherent use of both factors at Apple Inc This research aims to identify the impact of Intrinsic and Extrinsic motivational factors on employees and how it affects their performance The aim of this research is considered only moral motivation is important even when employees need how to make staff happy and keep in side for long time To collect information from customers and employees even employers of any organisationGhulam Mustafa ID 00106318 Page 8
  9. 9. 1.4 ORGANISATIONAL PROFILEAs mentioned earlier, Apple Inc was founded by Steve Wozniak, Steve Jobs and Ronald Wayne.The company has been through a long journey in just over 35 years from computers to consumerelectronics since its inception. On the 1st of January 2007, the company’s name was changed fromApple Computer Inc to just Apple Inc.The profile of company of Apple inc this company started in third of January 1977, in being thiscompany only manufactures mobile for communication and relative with media devices and otherhand making personal desktop computers and portable digital entertainment instalments whichmake people happy and enjoy with music players, and during that timing sale of products arerelative with range of software services and later on third party digital relatives applications. TheApple product during starting afforded to customers including Mac, iPod, iPhone, iPad and AppleTV a portfolio of those who want investment of money being like shareholders with Applecompany because services quality of product it was best then other market members and all and allcustomers want buy that product and even consumers increase gradually.Apple is now being company and having best brand name in all over the world because customersalways look for brand name and quality that is reason for sale and standard of apple is best thenother provider same product in market and most of them items used for educations and for thosewho are educate and know to how use iphone , ipad and so many new products which comingevery months for customers, this is best company which running good goods and in all over theworld though third party and retail stores in all over the world which provide same product andquality and standard for consumers and customers, basically this company has not long time to bestarted and within one half decades become most expansive it product and brand name so that ismain reason company goes up and up day by day through their product and help of staff so herefive segmentsApple Inc’s operations are distributed in five segments: Europe, American Continents, Asia-Pacific,Japan and Retail. Europe includes all the countries in Europe, countries in the Middle East andAfrica. Asia-Pacific segment consists of the Australian continent and Asian countries excludingJapan. Retail segment is responsible for running company owned retail stores around the globe. Likethis company which has brand name and nice staff that is main reason going up day by day non ofany other company which teak over of Apple company yet and having best value in market atmoments. All products are sale almost all of worldwide through help of third party and retails salestore which provide best deals for new customers and even which are already in.Profile of any company is important because it give information regarding of company is main themof whole dissertations which indicate basic information. Which already mention in above chapterand in mythology is always designed for information which is basic for in them and epically forthose who are scholar to read and giving their view and understanding everything which is give indetail to read with help of methodology and this is main them and for those who can read andgetting need able information from these methodology which has knowledgeable information forscholar.Ghulam Mustafa ID 00106318 Page 9
  10. 10. The purpose of finding and presented in subject we have mention some graphical and tables whichcontain with some information regarding tabular and manners which show complete informationregarding in this chapter.The interpretation of each graphic would be followed in this chapter.Regarding discussions and analysis which will contain and giving information will be complete andhaving analysis and the values. Moreover, primary research from the literature review will beinvolved in the analysis.The theme of research profit and conclusions it is all depend on basic information and data whichhas been collected from primary and secondary and give one format which will give completeinformation and would be made up, once the complete analysis of all data would have been given.While the experience of the writer is kept in mind, the recommendations would be provided to thegovernment of UK and to the writers who will be interested in this issue we talk about limitationsabout this study and research which has been made regarding work and assignment, it is considerinformation which has been giving writer in the deed and it is consider requirement of knowledgewhich mention in detail with help of graphs and tables contain with help of material it showinformation of complete .The theme of research and collection of information and giving andhaving limitation of collecting data from different sources and giving one format including completeknowledgeable. The theme is consider with dilemma which has been mention and giving somesolution of Apple Company to improve their internal problems and external dilemma whichcompany has and need to fine best solutions regarding to improve their standard and their productand their staff helping to improve those problems which company has suffering from being andwant to solution either internal and external which relative with Apple company through out ofwhole this situation and this is need to help company to solve problems help with main staff andsupport through planning and strategy.The apple company sale its many products and good services for consumers, for those who arerunning small and midsized business especially for educations, venture and government customerswith the help of its retail stores. Many of them are online stores and some of them are for directssales forces like third party stores Mac App Store and iBookstore. The company had 357 retailstores, which includes 112 stores around the globe and 245 stores within USA. This reflects to thefact that the company has been focusing on US and that focus is expanding day by day towardsinternational market.Ghulam Mustafa ID 00106318 Page 10
  11. 11. Chapter 2: Literature Review2.1 INTRODUCTIONThe policies developed by the company and their management play a noteworthy role in the futurestrategies and operation. Thus, the success of any organisation today is the reflection of the pastefforts that are undertaken throughout out the period of time (Beardwell et al, 2004).The Apple Inc. has followed the innovation and modern adoption of technology throughout theiroperations. However, this does not suggest that the company has put behind the human resourcefactors at the side. Rather the company has always put the human resource factors actively at fromand adopted the policies throughout the process. Beardwell et al (2004) suggest that the companycan obtain the meaningful and long lasting success through the correct input of human resources.Thu it is established fact the human resources can be the deciding factor for the company (Moore,& Attewell, 1991)According to the Cull (2008) the human involvement with in the organisational framework is theoutcome of the organisational policies. Drawing upon the motivational framework provided by Cull(2008) suggesting that the Apple corporation is providing the tools that actually help the employeesto better attain the intrinsic and extrinsic motivational and that helps the employees to perform atthe work place (Barney, 1986).The company is obtaining the competitive advantage through focusing upon the motivational tools.Thus the company is achieving the motivation through extrinsic and intrinsic tools. However, thestrategic analysis suggests that there can be possible gap in the strategies adopted and that arerequired to be adopted according to the need of competition and environment. Thus themanagement can fulfil the gap and ensure their constant level of strategic edge (Budhwar, Pawan.Debrah, Yaw, 2001).The culture adopted by an organization plays a significant role in the success or failure of thecompany. The Porter’s model suggests the strategic shift is required fill the gap (Buchanan &Hucczynski, 1991).The company is following the strategy of involving the human resource with in the organisationalprocess for the organisation success.Ghulam Mustafa ID 00106318 Page 11
  12. 12. Figure ) 7 s Model Source: Buchanan D, and Hucczynski A,(1991) pp 35According to the model provided, the company intends to utilise all the human resource skillseffectively and actively in order to attain the competitive advantage. The model the organisationalvalues, staff relationship, the style of management, system of organisation, human resource skills,strategies adopted and the structure of an organisation through which the who organisation is builtin order to obtain the performance. Thus, whence the strategies are adopted effectively, theorganisation tends to attain the motivational level of their employees at the higher level (Personnel,2005),The injection of the organisational culture and value is significantly important in order to obtain thecorrect level of motivation within the employees (Brockett, 2008).2.2 WIDER MARKET ACCESSThe use of IT can help the organizations on both “buy-side” and “sell-side” by helping themincrease advantages of a wider and broader range of the market. Fariselli (1999) and Essig andArnold (2001) have also proposed a similar theory. Suppliers/sell-side organizations can access towider consumer/customer/client base that can also reach out globally. Likewise, for buy-sideorganizations (buyers) can classify new product lines or enhance their supplier set-up by researchingsuppliers that bid cheaper rates or better quality or faster delivery methods. The selection criteriawould vary between organization’s interest.However, it is debateable that such benefits are restricted through policies of the company forexample, local / domestic selling or resourcing restricted to local / easily accessible markets. Wehave also seen that Roth (2001) has researched that the organizations that have successfully appliedGhulam Mustafa ID 00106318 Page 12
  13. 13. SCM (Supply Chain Management) technologies in their operations had managed to curtail supplierbase per billion dollar of expense.2.3 GREATER PARTNERSHIP POTENTIALApple as an organization has empowered businesses to form and maintain relationships with theirsuppliers irrespective of their geographical location and strategic alliances. This results in helpingbusinesses to increase the buyers or suppliers support they receive. We can witness a similar view byHurwitz (2000) and Tumolo (2001). Essig and Arnold (2001) also make a similar argument whenthey propose that partnerships for supply chain purposes that consist of capabilities based advancedtechnology can considerably boost the benefits of association to both organization and itscustomers. However, as proposed by Huber et al (2004) that even partnerships in a supply chainsystem are hesitant to share susceptible data, which might weaken the benefits / fruits of suchpartnerships, and therefore, such partnerships might build up to the organizations.2.4 ADMINISTRATIVE AND COMMUNICATIVE FLEXIBILITYIt has been established that the use of electronic systems in SCM (Supply Chain Management)increases an organization’s flexibility and precise organizational procedures. These procedureswould be performed both internally in the organization and on the outside of the organization. Italso helps in improving effective business methods of communication between organization and itssuppliers or customers. Though, it is debated that there is a concurrent collapse in channels ofcommunication and the variations in procedural administration, in case of a breakdown in ITinfrastructure. This effects the parties in the supply chain.The most widely used tool in order processing and checking the status of that order is internet,which eventually reduces cost and time associated to order processing on paper. The availability ofprices online prior to purchase certifies the accurateness of the price and helps comparability. Theinformation related to the order flows between the partners of the supply chain swiftly, whichresults in quick records update and it accurateness. The hassle of waiting and time consumption isreduced significantly.2.5 BETTER ACCESSIBILITY AND CONVENIENCEThe most common benefit of integrating IT in Supply Chain Management (SCM) is its provisionfor round the clock accessibility to both suppliers and customers associated with the supply chain.The actions are carried forward at a time suitable for the parties individually rather than finding aspecific time convenient for both. The dependence on manual work is reduced as the need formutual presence reduces. Either party need not wait for the presence of the party in order to carryout order placement or dispatch. This has benefited the organizations worldwide as the worldmarket has shrink and the time zones are no longer a barrier. APPLE INC’s CURRENT STRATEGYApple has adopted a differentiation strategy alongside its unique marketing campaigns that positionit as a trendy alternative compared to other brands in the market. Despite being a premium brandwith a capability of high margins, Apple has been able to demean its competitors pricing with theiPad 2 releases by leveraging its balance sheet and its position as one of the largest buyers to securecomponents at low prices This further gives Apple a competitive advantage (7)Ghulam Mustafa ID 00106318 Page 13
  14. 14. APPLE’s STRATEGY IN TERMS OF SUITABILITY; FEASIBILITY & ACCEPTABILITY SUITABILITY ACCEPTABILITY Y/N FEASIBLITY Y/N APPLE inc has well recognized Introduction of value Y Apple finance as a huge Y and trusted brand that can brand products leads source of capital boost its sales and revenue (1) to high turnover Apple Stores generating Y with the market capitalization High Return on Y $4,032 per retail square of 305 billion dollars, Apple Shareholders’ Funds foot per year Inc. is the second most valuable Ref (Osiris) Y High growth rate in company in the world turnover (52%) Y High Operating rev. In 2010 Apple became the Y Apple Maintains / Turnover per share largest company in the tech (71.68 in 2010) ref Dominance of Mobile Application Store, Y universe (1,5) Osiris Growth is driven from presence generated $1.8 billion in in North America (R6) revenue in 2010 Apple is still able to undercut its competitors (7)Ref 1: Farhad, Fast Computer, Apple Nation, Manjoo; Jul/Aug2010, Issue 147, p68-112Ref 2: http://ycharts.com/calculations/rankings/market_capRef 3: http://www.zdnet.com/blog/apple/apple-becomes-worlds-second-most-valuable-company/9047Ref 4: Apple company profileRef 5: Hawn, Carleen, If he’s so smart, Fast Company; Jan 2004, Issue 78, p68Ref 6: Data monitor : 10 top mobile handset manufacturerRef 7: Bloomberg, 2011; Pipers Munster Interview on Apples Jobs; [Online Video available athttp://www.bloomberg.com/video/67277168 (Accessed 21 March 2011)]KEY STRATEGIC FACTORS1. Weak Presence in Emerging market (2)2. Apples market share in the Smartphone market declined in 2009, and its Macs also have asmall share in the PC market (3)3. Apple Inc’s profitability may be affected by price erosion due to forceful competition invarious markets in which Apple operates (4)4. In China, Apple is facing a sizable threat from Nokia, which commanded 74.3% market sharein 2009 (2)5. Apple Inc has been dependant on third parties in the manufacturing of component andproduct manufacturing along with the logistical services (5)Ghulam Mustafa ID 00106318 Page 14
  15. 15. STRATEGIC OPTIONS OPTION 1: OPTION 2: OPTION 3: Differentiation Strategy MERGER ACQUSITIONBenefits Benefits Benefits reducing environmental threats Benefit from a synergy (9) Greater Value Generation of the (6) Achieve economies of scale company (12) reducing the threat of new (8) (generates cost efficiency) lower cost of operation and/or entrants (6) Reduces Competition (8) production (12) Premium price for the firm (7) Increase in market Diversification of products, Increase in brand loyalty by the power/share (8) services (13) customer Combining complementary Sustaining competitive advantage resources (8) (7) Mergers may allow greater investment in R&D (10)Draw Back Draw Back Draw Back Cost of hiring highly skilled sales Mergers can lead to job losses Integration problems (14) force (7) (10) Can be costly due to high legal Use of more expensive material Cultural Differences (11) costs (14) to improve the quality of the Conflicts of interest (9) The returns from acquisitions may product (7) not be attractive (14) Loss due to differentiation (7)Strategic Evaluation in term of Suitability, Feasibility and Acceptability Strategic Evaluation Matrix SUITABILITY ACCEPTABILITY FEASIBILITY Continues in Existing Strategy Y Y Y Merger Y Y Y Acquisition Y Y Y2.6 RECOMMENDATIONAll three options are attractive for APPLE Inc but Merger would be the best option and Apple canenjoy a maximum benefit from synergy and increase its market shares (9)I would recommend that Apple Inc should merger with Google , as Market capitalization of Googlein 2011 is $162.1b and APPLE INC is $306.02b and if they combine their market capitalizationbecomes $468b and may become the first most valuable companies in the world (R 15),Ghulam Mustafa ID 00106318 Page 15
  16. 16. Furthermore, Apple iOS and Google Android have risen as two major platforms in the mobileworld. The outcome is that both iOS and Android have been wildly successful in 2011 and continueto capture the mobile market share R (16, 17)It is evident from market research that Microsoft controls 90% of the computer based OS industry.Apple and Google have to form a joint venture in the future to gain control in Computer OSmarket. (18)1. THREAT OF NEW ENTRANTS (LOW) Company which is already involved in a similar operations:Such a threat in this market is moderate. There is a possibility to enter in this market as a companyalready involved in similar operations by means of diversification, such as electronics and movingonto mobile production, example, Samsung. This reduces the impact of getting rid of assets, as thestructure of the company and the raw materials used are the same. Such a strategy has beendemonstrated by Apple Inc, which was only known for manufacturing computers, but diversifiedinto mobile market with the iPhone which has gained popularity in the recent times and brought anew terminology and vision in the mobile industry known as smart phone. Apart from Apple Inc,other major players in smart phone market are Research in Motion’s Blackberry, HTC and theyhave been very successful until now.Ref : data monitor :industry profile..global mobile phone :Publication Date: October 2010Ref : http://www.htc.com/uk/press/htc-story.htmlRef: http://www.rim.com/company/ Barriers to enter due to high R&D and Investment Cost and Exit Cost ,Developing Successful BrandHowever, in order to come into this market as a beginner would not be feasible unless withsomething new to offer as Apple did. As it is necessary for organizations to maintain economies ofscale and battle for market share with existing players. Huge investments are vital to startoperations and to market the products. Large capital is required for research and development ofnew technology. Further to initiate production would be very costly too. Additionally, currentlmarket analysis suggests that the existing players in the market are strong, in terms brand awareness,experience, etc. They have considerable brand recognition and loyalty, including HP, Sony, Nokia,Samsung, Microsoft, Intel and Apple, etc. In this situation, it would be difficult to develop asuccessful brand i.e. according to Interbrand 2010 ranking Microsoft came 3rd Position , Intel on 9thNOKIA Brand came on 8th position , HP on 10th , Apple in on 17th , and Sony on 34th , and Dellon 41th position. Therefore, initial investment, established standards and recognized brands namesare difficult to prevail over for a new entrant.Ref: data monitor: industry profile... global mobile phone: Publication Date: October 2010Ref: The Telecommunications Industry- http://www.investopedia.com/features/industryhandbook/telecom.asp#axzz1PwvfmeDlRef: http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspxGhulam Mustafa ID 00106318 Page 16
  17. 17. 2. THREAT OF SUBSTITUTESMobile phones – LowTo substitute cellular phones, fixed line telephones can be an answer, but in today’s era of fastmoving lives and due to rapid technology advancement this threat is seen as minimal.Ref: data monitor :industry profile..global mobile phone :Publication Date: October 2010Personal Computers (High)As new kind of IT equipments like HDTV / Digital TV & Smart phones provide their users withthe internet, TV, GPS and mp3 functions and their increasing utility and recognition might obstructthe development of the PC industry. Therefore, threat for PC is high.Ref: data monitor report on The Top 10 Consumer Electronics Manufacturers3. POWER OF SUPPLIER (HIGH) Information and communication technology industry heavily depends on third partysuppliers which are located in different parts of the world across the globe. In terms of maincomponents which are used in production such as dynamic random access memory (DRAM),LCD’s, and flash memory etc. Major suppliers of these components are Hon Hai Company andQuanta Computer etc , Furthermore In launching new products technology giants such as Apple,nokia, dell, hp etc. Sometimes use customized components which are only available from onesupplier.Data monitor, Apple company profile, accessed on 16th June, 2011Data monitor, information and communication industry Profile, accessed on 15th June, 2011 ICT Industry has entered into several agreements with one or multiple suppliers butcompanies are open to the risk because there is no assurance that the agreements will be renewedupon expiration and on the same approving terms and prices?ICT industry is reliant on suppliers of components and an influential supplier could apply pressureby supplying components at elevated prices to enhance his profits. Further, the tendency for smartphones has fortified the power of supplier as operating systems such as RIM, Windows, Symbian,Android and iOS are now an essential component of Smart phones.Ref 1: Data monitor: ICT industry profile accessed on 16th June, 2011Ref 2: Data monitor: apple ProfileGhulam Mustafa ID 00106318 Page 17
  18. 18. 4. THREAT OF BUYER -- (MODERATE)Economic forces: low Switching Cost, More Options availableHigh inflation rate is leading towards low GDP, increasing national debts are leading towardsspending cuts and unemployment due to worldwide redundancies, is a worrying factor for ICTindustry which can push buyers to switch for copycat and low price competitive products whichoffer the similar features and technology which are available within the same industry. For example:RIM Black Berry has launched its new Tablet which offers the similar features as Apple IPad butrelatively smaller in size and cheaper in price, this can chip away the share of Apple in Tablet Pcmarket.The customers now enjoy the option of choosing from a wide range of affordable, economical andtechnologically advanced products due to a large number of suppliers / retailers.Business source premier, “switching between consumer technologies” written by: Kevin, C. SridharR.Papagari Sangareddy, Chen Ye and Sanjeev JHARef: guardian.co.uk, accessed on 16th June, 2011Exceeding Customer expectationsThere are two kinds of buyers in the market, the independent retail outlets such as the Phone 4 Uand secondly, departmental stores such as ASDA that purchase handsets in order to sell to end-users. Nevertheless, it is essential for buyers to store the latest products if they want to meet up withthe end-user demand which eliminates their strength in the supply chain. Some of major players ofICT industry such as Apple, Google, BlackBerry, Dell, and HP etc. have somehow managed tomeet the customer’s expectations by continuous improvements in quality and innovation MARKET VOLUMECell phones have a global market, since the beginning of the 1990s until today; this market has beengrowing rapidly in terms of volume and demand. The global mobile phones market has grown by2.5% until 2009 to achieve a volume of 1,005.8 million units. 10.7% is the rate for compoundannual growth of this market during the period 2005–09. This is a huge growth and with manyplayers in the market such as Sony Ericsson, Motorola, Apple, Nokia, Samsung, etc.Ghulam Mustafa ID 00106318 Page 18
  19. 19. MARKET VOLUME FORECASTThe forecast for the global mobile market for the period until 2014 is to have a volume of 1,520.8million units, which would be a growth of 51.2% since 2009. The prediction for compound annualgrowth of the market in the period 2009–14 is predicted to be at the rate of 8.6%. Market Value Growth Market Volume Growth Year $’B % Million Units % 2005 69.1 -- 669.4 -- 2006 78.3 13.4 822.8 22.9 2007 94.9 21.1 951.1 15.6 2008 99.4 4.8 981.3 3.2 2009 95.8 (3.7) 1005.8 2.5 2010 103.2 7.7 1,101.7 9.5 2011 113.2 9.7 1,197.1 8.7 2012 124.8 10.3 1,296.8 8.3 2013 138.9 11.3 1,399.0 7.9 2014 155.3 11.8 1,520.8 8.7Source : data monitor , the Global Mobile IndustryGlobal Mobile phone market value by segment Market Size CAGR 2009 2010 2011 2014 $’ bn 2006-2011 Feature Phones 81 72 59 34 (15.5)% Smart Phones 52 89 131 259 37.8% Total 133 162 191 293 17.1%Source : data monitor , 10 Top Mobile Handset ManufuctureGhulam Mustafa ID 00106318 Page 19
  20. 20. MARKET SEGMENTATIONAsia-Pacific is expected to be the largest market during the period between 2009 and 2014 for smartphones. The basic reasons for this change / growth would be the rising purchasing power andincomes of consumers in the region. Another reason is the increasing demand and need or desire tostay in contact with relatives, business peers etc. The growth is also subject to the increasingpopulation and affordability of cell phones.Source: Data Monitor Report, Published by Business Insights, “The top 10 Mobile Handset Manufacturer Global computing marketOverall, although it remains important to the IT industry, desktop computing is generally in decline,challenged by mobile computing. Notebooks’ functionalities have been improving dramaticallywhile their average price has been decreasing. The combination of better features and lower priceshas made laptops more attractive to a broad range of users, from consumers to business users.However, seen in terms of relative changes in percentage share, notebooks are expected to registerfastest growth by eating into desktop PCs shares. Motivation DefinedMotivation is the interest of an individual or an employee in order to attain a particular given task orgoal. The motivation is the inner willingness to perform certain task due to the inner willingness orexternal rewards or benefits that are offered against the performance (Dennis & Randall, 2004).The Maslow’s theory of motivation gained the popularity in the theory of motivation. The intrinsicand extrinsic factors are significantly important in any organisation in order to obtain the long termGhulam Mustafa ID 00106318 Page 20
  21. 21. success. This is by far one of the most famous theories and considered quite effective onmotivation. Figure 1 Maslow’s Hierarchy of NeedSource: Dennis, R. & Randall, S. (2004) pp 45The theory of Maslow’s is described in the hierarchy. The hierarchy is located according to the needbasis. Thus higher the need will be at the basic step and then step by step this goes into theincremental change towards the top position (Reader A, 1998)The level of dissatisfaction can become the cause of motivation where the human being find the ordevelop the urge of repeating the same action until the success is obtained. Thus through this factorthe demined and strong employees are attached and attain the motivation through this tool (Dennis& Randall, 2004).As per Maslow’s theory, there are needs that have to be considered as common needs. Those needsare categorised as needs that relate to the physiological, safety, love, esteem and self-actualisation.Thus these needs flow in the process from the bottom to top and are fulfilled step by step.According to the theory the needs must be fulfilled in order to move onto the other need. Howevercritics on the other hand suggest that the needs are not necessarily fulfilled in the step by stepprocess (Chandra kumara and Anil, 2007). The constant achievement and positive results in theindividual’s life lead a person to reach to the level of self-actualisation (Dan-Shang Wang and Chi-Lih Shyu, 2008).Higher the level of motivation better the level of results will be. There is the positive relationship ofthese both factors. However, the level of satisfaction varies from situation to situation. Thus, it isimportant that the employee’s satisfaction is to be achieved and obtained through the fulfilment ofintrinsic and extrinsic motivational factors (Nixon, 2004)The employee performance can be the matter of significant factors that directly relate to themotivation. In majority of cases the employees are not performing and that becomes the reason ofnot being motivated at the work form the management or work environment that exist at the workplace (Ruel et al, 2007). Paauwe & Boselie (2003) identified that there are about 34% ofperformance related problem are the outcome of motivational factors. The employees fromextrinsic or intrinsic factors become less motivated. Thus the problems persist.Ghulam Mustafa ID 00106318 Page 21
  22. 22. Figure 2 Two Factors of MotivationSource: Silverman, (1993)Picture no 3 provides the Herzberg two factors motivational factors. The Herzberg provides thesimple and clear approach to the motivation. Herzberg linked the level of motivation with theindividual’s performance. The Herzberg suggests the existence of Motivators that actuallymotivation the employees or de-motivate employee at the work place. According to Herzberg thereare Hygiene factors that refrain employees from the dissatisfaction level. The hygiene factors canstop the de-motivation but in some cases, they cannot develop motivation (Rogers, 2004).According to Pawan and Budhwar (2001)1. Achievements of an employee2. The sense of recognition3. The present condition at place of work4. The responsibility level at present5. Personal growth and hygiene factorsThe salary is considered as the major factor of Hygiene factor that has significant contribution toattain the employee motivation and satisfaction (Jain, P, 2005). INTRINSIC FACTORS OF MOTIVATIONIntrinsic motivation, it is the internal motivation to perform a task or work. The individualsometimes become internally motivated to perform some task. However, the internal motivationcannot be developed in isolation; rather it requires the motivators that actually boost the internalmotivation (Herzberg, & Frederick, 1959).The intrinsic motivation is obtained through the work that provides the pleasure or joy inperforming that particular work. The intrinsic motivational factors are largely adopted by thepresent organisation in order to ensure the real customer services given to their customers (Jackson,& Schuler, R. (2003).Ghulam Mustafa ID 00106318 Page 22
  23. 23. The employees that are more intrinsically motivated are more likely to engage to obtain thecustomer satisfaction. They make their best efforts to obtain the maximum level of customersatisfaction. Thus the performance of an organisation is likely to increase. For example employees atApple store are more friendly and helpful, they can be categorised as internally, motivated. WithIntrinsic Motivation, it is meant that employees are motivated to do a certain task because of thepleasure or satisfaction received in doing those tasks. In other words, it can be established thatintrinsic motivation comes from within the job itself rather than the external sources like monetaryincentives, benefits etc. An employee with a tendency of being internally motivated could bemotivated with a by factors related to the job such as recognition, growth, responsibility andadvancement. If the employee tends to be motivated by intrinsic rewards, than it should beunderstood that he is interested in a job/task that interests him, a work environment that ischallenging and the sense of accountability in performing the tasks in order to motivate him.Therefore, it can be said that an intrinsically motivated person will perform a task or do the jobwillingly. The reason being his interest in the job due to the amount of challenges within or becauseof the satisfaction he gets from performing the task. This is an evidence of the fact that externalfactors like pay and benefits do not actually motivate the employee. As mentioned in many theorieslike Herzberg and Maslow, the external factors are mere satisfiers and compared to intrinsicmotivation it is ineffective in the long term. The best example for intrinsic rewards is athletes takingpart in a race. They put the maximum effort in the task and work their way up because of thesatisfaction and pleasure they get from mastering the different set of skills in the game. This can beseen in boxers, trying to make use of even the tenth of a second in a game or sprint racers makingevery effort possible to reach the finish line first. The same can be seen in other organizations withemployees, for example, the organization under study is Apple Inc and its founder Mr. Steve Jobs,an example of employees working to achieve the satisfaction with in their job rather than monetaryor other external rewards. The factors, which can affect the intrinsic methods of motivation, areinfluence and control. EXTRINSIC FACTORS OF MOTIVATIONExtrinsic motivational factors are the external motivational factors. These factors come outside ofan ideal. The extrinsic factors come from the external side. The rewards and other motivationalfactors can be given to employees.Extrinsic motivation factors also tend to increase the performance of an employee. The motivationcomes from the external sources. The example can be categorised such as reward, money, coercion,threats and punishment in some cases. In some situation the major extrinsic factor is thecompetition because it comes from external side and tends to increase the performance. TheEmployee at the Apple store is given as gift vouchers, certificates on the performance. However,such certificated and prizes play as a role of extrinsic motivators (Jain, 2005).On the other hand, extrinsic motivation is when an employee is motivated through external rewardsthat are rewards outside his job description. These rewards are usually in terms of monetaryincentives, grades, etc. In this case, an employee works on a task / project / job by satisfying hisneeds with rewards outside the job such as performance related bonuses, the employee tends tocarry out the task or job for the fact that he is interested in it but mainly because of the extrinsicreward associated with it. This reward is what drives the subject employee or employees to dothings that he might or might not be interested in doing. In other words, extrinsic rewards act as aGhulam Mustafa ID 00106318 Page 23
  24. 24. driving force that get the employee to do things for tangible rewards instead of the task itself.Extrinsic motivators can be both positive and negative. Positive motivators can be monetaryrewards, bonuses, increments and other incentives. On the other hand, negative motivators can bedescribed as bribery or threats that can be used to motivate the employee or employees extrinsicallythat means outside their job description. The basic focus of extrinsic motivators in on rewards theemployee reaps from his or her actions instead of the actions themselves. For example, if anemployee or employees are working on a task such as sales in which they are neither exactlyinterested in and nor in the benefits the company gets from their actions (sales). What they areinterested in is the reward associated with a certain level of sales. The employees of a salesdepartment usually get bonuses on achieving a certain level of sales. This example illustrates thatsome people do not tend to work willingly and such people are made to work by extrinsic rewards.Hence, the Stick and Carrot Rule. In reality, these rewards have a short-term influence in overallperformance of the employee and even the organization as a whole. The reason for this is thatemployee or employees being motivated by the extrinsic rewards can only be persuaded to work aslong as they are offered rewards and therefore, in absence of such will refrain from eitherperforming the tasks or lowest level of requirement would be fulfilled. • EFFECTIVE METHOD OF MOTIVATIONAfter the above discussion, we can compare the benefits of intrinsic rewards with extrinsic rewards.These motivators are co-dependent on the multiple factors such as culture, environment, society,awareness, etc. This dependence makes the effectiveness of a certain method of motivationdebateable. In a society of the west where the necessities integral to living like housing, basicallowance for food etc are the responsibility of the government, people tend to look for tasks orcareers they feel satisfied in accomplishing. Whereas in the third world countries, it in unlikely (notimpossible) to find a person with career driven strategy. Even though the above factors do make ahuge difference in making up a society’s mind-set, it would be unjustified to say that these are theonly driving factors. Examples of people from within third world countries is an evident fact thatthere are other forces which also play an important role in determining an employee’s motivatingfactors. The culture of the organization and the factors on which accomplishment is based alsomake a huge impact. If the culture on a an organization is to extrinsically reward an employee on hisperformance, people who tend to find satisfaction in the job role would not either stick to thatorganization or move to other organizations with a different culture. Such an environment couldalso result in moulding the employees’ behaviour and source of satisfaction.It can be established that extrinsic motivation is easily enforceable but with a lesser impact,especially a short-term impact on the performance etc of an employee. Intrinsic rewards are a win-win model if the employees are groomed in a way where they look for satisfaction with in theirwork and welcome activities such as job enlargement and job enrichment. This does not imply thatextrinsic motivation is a theory of the by-gone days rather; they should be used from time to timefor short term motivation, example, annual bonuses. It is important to groom the employees in thework environment to help them get intrinsically motivated and therefore reaping the long termbenefits of the this approach. Once such an ideal environment is established, absence of extrinsicrewards will not de-motivate employees and therefore an organization’s overall aim and objectivewill not be put at risk and will result in the organization’s long-term success.Ghulam Mustafa ID 00106318 Page 24
  25. 25. CHOICE & PREFERENCE OF CUSTOMER:Apple Inc needs to prioritise the market demand, customers’ choices and their preference as anessential element. It is very important to evaluate market preferences in order to formulize amarketing strategy for a product or service. In order to achieve the best results, demographics of themarket / customer should analysed in depth, for example, Islamic Calendar system would be verypopular with the users in the middle east and even with the Muslims around the globe. Customer’sbehaviour should be studied as this would provide reasoning to the reason for change in thebehaviour and organizations such as Apple Inc can understand the driving force behind it. Forexample, the Islamic Calendar in the Middle East would be important as most of the countriesfollow the Islamic Calendar as official calendar unlike the West and Far East who follow theGeorgian Calendar. Psychological and functional needs of the market also drive the behaviour ofthe customers in a market. Customer’s preferences and their choices have to be considered asEmotional Intelligence and serves as a critical factor in attracting them to the product or service.With respect to motivation, religion does play an important role and the customer’s choice is highlyaffected by it. According to Watson, A (2002), “once the consumers recognize the need for a goodor service they will undertake an information search which maybe passive or active and the extentand depth of this search will influence their buying decisions.” The customers of the Apple ing ofIslamic system have realized that this would be the better alternative in the current economic crisis,as it has been shown that the power of the repayments over the loan has been declining because ofthe high interest rates and the inflation.2.6 CONCLUSIONThe conclusion of all research which has been done and which data collected from deferent sourcesand information including research. The main theme of research and dataAccording to the Cull (2008) the human involvement with in the organisational framework is theoutcome of the organisational policies. Drawing upon the motivational framework provided by Cull(2008) suggesting that the Apple corporation is providing the tools that actually help the employeesto better attain the intrinsic and extrinsic motivational and that helps the employees to perform atthe work place (Barney, 1986).The company is obtaining the competitive advantage through focusing upon the motivational tools.Thus the company is achieving the motivation through extrinsic and intrinsic tools. However, thestrategic analysis suggests that there can be possible gap in the strategies adopted and that arerequired to be adopted according to the need of competition and environment. Thus themanagement can fulfil the gap and ensure their constant level of strategic edge (Budhwar, Pawan.Debrah, Yaw, 2001). Companies are using the motivational tools to gain competitive advantage. Bydoing so, they develop a work force which is loyal and might not be willing to move or switch to acompetitor in time. Therefore, this acts as catalyst in a company’s long term growth planning andhelps the employees strive harder and go the extra mile for their organization when they aremotivated.To investigate the impact of Intrinsic and Extrinsic motivation factors on employees performance.Which are main them of motivation for employees during their job with any organisation. ToGhulam Mustafa ID 00106318 Page 25
  26. 26. investigate the employees preferred motivation factors. Comparing both factors. Research will beboth side for employee’s x and y employee’s To investigate the inherent use of both factors atApple Computer, Inc. This research aims to identify the impact of Intrinsic and Extrinsicmotivational factors on employees and how it affects their performance.The aim of this research is considered only moral motivation is important even when employeesneed how to make staff happy and keep in side for long time To collected information fromcustomers and employees even employers of any organisation. This all work has been doneaccording to research of motivation and satisfaction for employees during work place and havingrespectable place and nice environment in office where anyone can work. It is aimed to bring out aset of possible solution to the growing organization so that the matters related to Human ResourceManagement are handled properly.Ghulam Mustafa ID 00106318 Page 26
  27. 27. Chapter 3: Methodology3.1 INTRODUCTIONThe methodology is the level of research and makes sure that imaginary findings and measuring itwith the realistic approach. The line of attach it is support to methods through which the qualitativeand quantitative data analyzed. So Methodology is basically research with deep and fine out mainaim and objectives in project. So this is depending on obtained through primary investigate. Onother hand in this section which discussion will be debates in deeply and very clearly which areclearly concerned with basic information and resources which will be provided data. So now whichwe have talk about research and information it supporting to care out and helping with deferentsections and which are positive from internal and being unable to do for hypothesis to match withthe real result.The research is designed to examine the impact of intrinsic and extrinsic motivational tools onemployees and how does it impact their performance. The research is designed to undertake theresearch question and obtain the information through the primary and secondary data(Onwuegbuzie, 2005).The research is designed to understand the performance boosting factors of an employee. However,the topic will be reviewed through extensive search of secondary data. In last the results andrecommendation will be established through the secondary data and primary data evidence throughwhich he results could be established (Taylor, 1991).3.2 RESEARCH PHILOSOPHY AND STRATEGYThis research focuses on the development and uptake of data-exchange standards in order to gainan understanding of how such standards are adopted and diffuse across their target population.Hence, case studies and action research are used to Fulfil the aims of the research, which are to:• Establish the barriers and factors that influence the standards of data-exchange adoption.• Develop guidelines to facilitate and accelerate the adoption of data-exchange standards3.3 DATA COLLECTIONThe data consists of two forms generally. The primary data collection and secondary data collectionwill be the main two sources of data collection during this research work. The both forms areimportant for this research. The primary data is important in order to obtain the realisticinformation which is more reliable information (Silverman, 1993). Secondary Data collectionThe secondary data collection is also equally important. The secondary data collection provides themore in-depth information to the researcher. The information is available in the huge quantity andat the low level of cost as compare to the primary data collection methods Myers, M.D. (2009). Theprimary data collection requires more expenditures and time consuming (Strauss & Corbin, 1990).Ghulam Mustafa ID 00106318 Page 27
  28. 28. 3.4 RESEARCH DESIGNThe information will be collected in both the forms such as qualitative and quantitative data. Theeach data type has its own significant role in the research process.According to Saunders (2011) the qualitative data is the data which is collected through theinterview or the questionnaire which is collected in the form that has meaning to analyse or tounderstand. On the other hand the quantities data is the data which is available in quantitative form.Thus the quantitative data enable the researcher to show the results in the graphical shape. On theother hand the qualitative information can be only interpreted through the meanings (Nixon, 2004) Sample ObservationsThe observation is the strong tool to find out the information during the research process. Thus theresearch is designed to observe a selected group of people. The apple store will be visited and atleast 6 employees will be observed and will be analyzed their performance, working environment,their level of satisfaction and environment (Ragin, 1987).Through this method more realistic information could be collected and used for the research andfurther improvement of company’s performance. Personal InterviewsThe interview is the process of obtaining the information directly from the participant through thequestion and answer portion. The interview are fast, economical and more reliable (Myers, 2009).In this research the interview will be another important aspect to find out the level of intrinsic andextrinsic motivational factors with employees and how effectively those factors are adopted atApple Corporation and within their outlets. Thus, through the interview the primary data collectedthrough survey, could be validated (Morey, 1984). Research QuestionHow Intrinsic and Extrinsic motivation factors affect employee performance?How motivation affect the employees? Questionnaire DesignThe questionnaire is designed and attached with in the appendices. The target audience is thesample of 100 respondents. There are 100 questionnaire that will be distributed amongst theemployees if at least two big stores. Through this the research can become more reliable. Thesurvey suggests the opinion of majority and through this the long term strategy can be formulatedto remain sustainable and competitive (Zikmund, 2003). Pilot testingAt the beginning level of research the pilot test will be carried out. Through this the questionnaireeven can better be formed. If there are any unwanted questions that do not serve the purpose, theythose questions will be replaced (Prasad, P. (2005). In the pilot testing the following will be monitored; Is there enough depth in the question?Ghulam Mustafa ID 00106318 Page 28
  29. 29. Are the questions ambiguous? Is the question asking the right question? Is the questionnaire understood in accordance to their purpose? Sources of secondary Data CollectionIf it can be reported simply that the data is in its unique and authentic format, the data will be placein the main literature review or introduction and will provide support to the argument and serve asevidence.Data can be made useful for various purposes. You can utilise it for analysis for a completelydiverse subject than the original and even reinterpreted. In such a case, it would be placed in theAnalysis of Findings segment of the report or research. The suicide research by Durkheim is one ofthe finest examples in this case. He studied the causes and reasons to analyse the patter ofcommitting suicide by different classes or groups of people and his research resulted in the fact thatProtestants are more likely to commit suicide that Catholics. This shows how he utilised a datagathered or recorded by coroners etc for completely diverse subject. Lots of statistical associationand analytical comparison had to be done by him to perform the research. (Details of Durkheim’swork: Haralambos – 1995)Most students depend on collection of basic or primary data that means collecting data first hand asit is required by most research projects. Most of the research does not involve secondary data intheir analysis or findings even though it is perfectly adequate to do so. The important point here isthat there can always be much more data available to aid in the research and the data collectioncould have been on a much a larger scale than a student’s connections. This mere fact could add tothe research and prove to be helpful in coming up with the right conclusion.The secondary data sources are various. However, it is intended to collect the secondary data throughthe following sources; Political And Legal FactorsIn certain countries, there are some regulations that are related with production and marketing ofelectronic equipments for example, ability to return the product by the end of it residual life forproper disposal or recycling purposes. Other rules and regulations to prevent biohazard and othertechnical issues may affect the general marketing and production activities. In some countries, thereare laws restricting the usage of perilous material in the production of electronic equipments. Thesecountries include countries in the European Union, North American countries. Apple Inc andsimilar organizations have abide by these law for environmental safety and sustainability.Ref 1: Apple anual reportRef 2: End-of-life electronics legislationGhulam Mustafa ID 00106318 Page 29
  30. 30. Political instabilityTechnology industry mostly rely on vendors for products and components from many countries i.e.Germany. Israel, China, Japan, Ireland, Malaysia, Netherlands, Korea, Taiwan, the Philippines andSingapore etcIf manufacturing or logistics in these locations are disrupted for any reason, it could harm thefinancial performances of the Technology Industry and ability to satisfy customer needs. This couldresult in delays in delivery, delay in product launch, etc which would in turn be very bad anorganization’s reputation. In addition, defective parts and products from these vendors couldreduce product reliability and harm the reputation of the company.  Apple’s Procedures Guideline  Apple’s Training books  Apple’s HR Manuals  Subject books  Case studies  Periodically published journals  Periodically published magazines  Publications such as newspapers Deductive and Inductive ApproachThere are two main source of research approach. Figure 3 Approaches of ResearchSource: Silverman (1993).Figure no 4 suggests that is two main researches approached through which the research can beconducted.This research will use the inductive approach. The reason behind choosing the inductive approachis the number of responses that are expected in the huge quantity. The inductive approach providesthe huge opportunity to deal with many responses. Thus the researcher can provide the meaningfulGhulam Mustafa ID 00106318 Page 30
  31. 31. conclusion and recommendation through the careful theoretical analysis upon the findings(Saunders, 2011) TimescalesTime is the limitation. The limited time is available to carry on the research. However, theemployees may not find time to cooperate in the research (Slonim, 1960). CostThe cost is the major limitation. However, this factor shall and will not compromise in the researchwork.3.5 STUDY LIMITATION AND CONCLUSIONThe research has the suitable business background and the knowledge of the subject. The researchhas obtained the subject information that he learnt during the studies. Thus, the researcher isstrongly capable to conduct the research (Silverman, 1993).The written consent will obtain the willingness of an individual before the research processes begin.The interview will be recorded. Variable DefinesThe level of trust will be maintained. The trust and confidentiality will be kept throughout theresearch process.Ghulam Mustafa ID 00106318 Page 31
  32. 32. Chapter 4: Findings and Analysis4.1 Research designApple Inc is a leading organization, which has been growing rapidly under the supervision of LateSteve Jobs. The products, Apple Inc has been offering during the past 10 years are not only lovedby the customers for their quality, standard and durability but has successfully become a statussymbol in the modern era of technology. The journey started from Computers, on to MP3 Playersthen towards mobile phones and now Tablets and TVs. Unique platform and the prefix “i”distinguishes its products from other competitors in the market. With great products, comes greatcustomer service. The human resource management at Apple Inc was different from the industry,until Steve Jobs’ time.According to Roderick Kramer, a social psychologist sums up Steve’s way of working withsubordinates as: “A certain type of forcefulness and perseverance is sometimes helpful when tackling large, intractable problems”.Ref.: Wired Magazine: 16.04Everything, from design to production, should be perfect. In addition, given such an environmentat work, employees worked hard to excel and shine in the eyes of their CEO.4.2 Presentations of Data and AnalysisData analysis is a practise where raw data is given a structure and organized in a manner that it givesuseful information to the user by the analyst. It is important to understand the process of organizingand inspecting data in order to get what is actually reflected by the data and that analysis shall not bebased on a presumption. It is also vital to understand the main reason of the analysis so thatrelevant data is selected for the process so that once the analysis is performed, the result is relevantas well. There are various ways that can be used to analyse data and data manipulation is particularlyeasy in order to get a desired or certain outcome. Therefore, focus is vital and to ascertain the originof the data and the process through which analysis in performed.Apple Inc is considered to be one of the most inventive and celebrated company in the world. Thelikes of Business Week and Fortune Magazines have been writing cover stories about the wellmanaged success of the company. It is revolutionary to see how Apple manages and values itshuman resource, the most important aspect of which is Intrinsic Motivation. Based on the researchavailable on different resources on the internet, we have found at that even the aristocratic methodof management by which Jobs has been running the company and the need to achieve perfectioneven in minute details and that fear of being fired has not stopped the employees from workinghard. Surprisingly, it has worked as a catalyst in achieving such an environment and passion inbetween employees and a sense of competition where they work hard and achieve the targets set bytheir boss, Mr. Steve Jobs. It was revealed in a research that many employees who have had thechance to work with Steve Jobs found this way to be more effective in learning and growing withinthe job. This is surely a form of Intrinsic Motivation where an employee learns to be satisfied andGhulam Mustafa ID 00106318 Page 32
  33. 33. content with himself when he is achieves the targets set by his job and grows with in his or her job.Intrinsic motivation can be very helpful in getting a required task done by an employee or a groupof employees and it shall resultRef.: Wired Magazine: 16.04Apart from the Intrinsic Methods of Motivation, research has shown that in order to not onlyattract but to also retain the employees Apple Inc exercises motivational methods such as non-performance related incentives, part owing benefits, expected inducements. These vary fromproduct discounts to insurances. Apple Inc mixes this monetary incentive methodology with itsIntrinsic Method, the creative culture, hence revolutionizing the concept of motivation altogether.The company is using a mix of both Intrinsic and Extrinsic methods of Motivation which not onlyresults in employees always striving harder and willing to go the extra mile for their company butalso helps the company in achieving its long term and short term targets and performancestandards. It is also proving the theory of aiding the intrinsic method of motivation with extrinsicmethods by awarding timely incentives to employees in order to groom the creative and innovativethinker inside them and hence sustain high levels of motivation.Ref.: Employee motivation and incentives at Apple – by Christoph MüllerThe main theme of this research project is considered on behalf of the information gathering, whichis mentioned here, and analysis and it represents the information for which we discuss in thepresentation. The most important aspect is data collection and having to come up with best possibleoptions and benefit Apple Inc in making a stronger human resource management system. As anorganization with a reputation of doing everything perfect and achieve excellence in whatever theywork for, it is important for them to excel in human resource, to attract and then retain theiremployees. The international brand has to sustain its employees’ motivation levels in order to getwhat is required and to have long-term growth and stability. This is by applying a mix of intrinsicand extrinsic methods of motivation. The research presents how these are linked with employees,the effect of internal and external environment and the way in which organizational culture effectsthe employees of a company. The role which an organizational culture can play in motivating itsemployees. Because, in the end, it is all about management, how the employee gains satisfactionfrom his or her work and what makes him go the extra mile and strive hard to achieve excellencewithin the job he is assigned to do. Management has very important role and we can see the role ofLate Steve Jobs as CEO and the reaction of employees who had the opportunity to work with him.Being a large and reputable organization, it is important to maintain the standard and create policies,which support the sustainable growth of the company by better human resource management. Thisresearch will show that correct analysis of the human resource management can result in amazingresults owing to employee motivation by applying the correct mix of Intrinsic and Extrinsicmethods of motivation.4.3 Interpretation and ConclusionBusinessdictionary.com has defined data as: “Information in raw or unorganized form (such as alphabets, numbers, or symbols) that refers to, or represents, conditions, ideas, or objects. Data is limitless and present everywhere in the universe.”Ref.: (businessdictionary.com)Ghulam Mustafa ID 00106318 Page 33
  34. 34. Another theorist, Yadin, defines it as: “A collection of facts and figures; in computing, data is used for the electronic processing and manipulation of the collected material, and its conversion into useful information. In statistics, dataare based on research and manipulated for analysis. Any space here devoted to whether is a singular, plural or collective noun is futile”.Ref.: Yadin L. D – 2002In order to reach the correct interpretation of a data analysis and the conclusion brought forward, itimportant to focus on three points:  The validity of the data – Internal Validity  The accuracy of the data with respect to repetition etc – Reliability  The results achieved are correspondence with the rest of the population – External ValidityRef.: (Capon, 2008)The process of focusing on the ways in which people think, the manner in which they interpret datais a form of research of qualitative data. It has been argued that the researcher should understandthe norms of the environment prior to attempting to research for qualitative data.From the above discussion, we have been able to establish that motivation is about stimulating theemployees in order to get the required results at work. There are two ways of motivation; one thatdates back several hundred of years, External Methods of motivation and the other is InternalMethods of Motivation. The effectiveness of the external methods of motivation has been arguedby different theorists and it has been made certain that they have less rather no effect on the long-term plans of a company. Theorists have also brought up the idea that external motivators such aspay are mere satisfiers and the absence raises the question of satisfaction rather than motivation.The absence of an external motivator might dissatisfy an employee or employees but shall not actde-motivator. It is important to understand the external and internal environment of anorganization also plays a very important role in finding the right motivators for the employee oremployees of the company. There is a clear need for developing a challenging environment withinthe organization to stimulate employee or employees to carry out the tasks and feel the satisfactionin doing the required work. Organizations such as Apple Inc have been striving to find the rightmix of methods of motivation in the past and they have chosen to apply both the methods. This isevident from the feedback different researchers have been able to receive from their employees.Organizations, which are successful, have shared a common characteristic. These organizations havebeen able to recognize the fact that employees are a key aspect of business performance.Ref.: Tidd and Bessant, 2009It has been elucidated that the performance of an employee is dependent on his or her aptitude,willingness or motivation and prospects or opportunities made available to him. This plays animportant part in ascertaining the adverse effects or outcomes of lack of motivation on a company’sperformance.We have established that motivation is a force that helps in stimulating the employee or employeesin achieving maximum results. It is necessary to understand and develop a framework, which willGhulam Mustafa ID 00106318 Page 34
  35. 35. comprise of the factors that sway motivation. There are various examples of such factors, theintroduction of innovative and new technology, they rules and regulations set by the government,the socio-political situation of the nation or society.Apple Inc under Steve Jobs has done great wonders in the field of business. It has grown smoothlyin the past 10 years. Apple Inc is known for being one of the most innovative companies. Thefollowing is its quarterly sales chart which is evident of the fact that the company risen rapidly in thepast few years with the sales and demands of its products growing rapidly. Figure 4 Apple Incs quarterly sales by productAs previously discussed, employees performance is an integral part of the overall performance ofthe company and the above chart clearly shows that Apple Inc under Steve Jobs has clearly made anachievement in both the aspects. The strategy with respect to human resource, which Apple Inc hasbeen following, is to get the best of the employees. This has acted in favor of Apple Inc so far.There are using a mixture of extrinsic and intrinsic motivators. The focus is more towardsrecognition then rewards. The driving force being Steve Jobs himself who has not only set examplesfor the employees of his company but for other CEOs around the globe. The above chart clearlyindicates that the policies applied to motivate and stimulate the employees at Apple Inc. Eventhough, Jobs has a debatable style of management where the employees have a consistent fear ofbeing fired, the employees are not only devoted but also work hard and try to excel in their jobs inorder to not only secure their employment but also enjoy the work. This might seem like a Threat,an External Method of Motivation, but acts as an Intrinsic Motivator where the employee oremployees are not only enjoying their job but also striving to excel in it.Research has proven that the two factors that increase or decrease intrinsic motivation areinformation and control. Theorists suggest that rewards have two basic elements that affect intrinsicGhulam Mustafa ID 00106318 Page 35
  36. 36. motivation. These two factors, information and control, depends on how individual employee’sfreewill and capabilities. Therefore, if it is in an employee’s nature to only focus on work whensupervised and he relies on the information given to him by the manager or colleagues, hismotivating factors are strong. On the contrary, if an employee whose work is more creative /innovative in nature might not accept consistent oversight. Apple Inc has been one of the mostinnovative companies of this era of technological advancement. It has provided the market with anew vision of consumer electronics with a touch of creativity and style.When understanding the effects of incentives, it is very crucial to establish a clear differentiationbetween recognition and reward. It is important to understand that performance related incentivesnegatively influence intrinsic motivation. The employees who are enrolled in programs where theyare given rewards based on their performances undergo a sense of threat and lack of control. Thisalso affects in people limiting their potential and only putting minimal efforts that are required attaina certain performance level. In other words, rewards based on performance result in not onlylimiting people to strive for a certain goal but also causes a certain category of threat to theemployee. For this reason, theorists of the modern era suggest that organizations should give moreon weight to incentives with respect to recognition.“Trivial rewards will result in trivial amounts of effort and thus trivial improvements in performance”Ref.: Robinson, et al, 1992 - P. 29Therefore, it is can be argued that organizations that place more stress on incentives in terms ofrecognition have a more satisfied human resource. Apple Inc has been rewarding its executives byoffering them with Recognition Bonus up to 5 percent of their individual basic salaries even if theymiss a target. We can imply that Apple Inc has been known the “fundamental attribution error” andtherefore strived towards maintaining employees’ loyalty, commitment and motivation.Ref.: ZDNet, 2003It is also argues by theorists that money has no significant representation in terms of value in spiteof the reality that organizations and their manager offer money as the only reward most often.Organizations such as Apple Inc have come up with a different vision in this regard, offering freeiPods and iPhones in order to appreciate the employees of their accomplishments. This issomewhat cheaper than the usual monetary rewards. Organization can adopt to incentives otherthan money, which can be remembered, for example, gifts such as holidays or a simple thank you orpraise.Ref.: AppleInsider 2005; Meinck, 2007 RECOMMENDATION TO APPLEThis chapter has critically indicated that incentives actually help to motivate employee or employees.For the purpose, a comprehensible and explanatory definition of motivation has been given. AppleInc has come a long way from its establishment. Employees have been working hard and going theextra mile to prove their worth in the company. There are plenty of theories on motivation, some ofthose have been outdates. Some do not accept a combination of external and internal methods ofmotivation. Some do not recognise external motivators as motivators and for some internalGhulam Mustafa ID 00106318 Page 36
  37. 37. motivators never existed. Apple Inc has successfully implemented a mix of both the methods ofmotivation and as it is said, “So far, so good”. The challenge for Apple Inc here is to maintain thehigh standards of output and keep the employee motivated and stimulated so that the long-termgrowth of the company is not impaired. SUMMARYApple Inc should as it has in the past, carry on to attract the creative and smart people around theglobe and formulate a human resource management strategy to retain such a quality humanresource. According to Steve Jobs, it is a consumer driven company and they are proud in beingunique and innovative with their products. They have always tried to stand out in the market andthey are quite good at it. Somehow they have managed to satisfy their employees.Most importantly, after the demise of Steve Jobs, Apple Inc has lost a fatherly figure which wasmore like a driving force for the company. Therefore, it is important for them to formulate astrategy for their survival. Concentrate on the improvement of employees’ confidence and self-esteem. It might be challenging, as absent Steve, the employees might think of good day gone-by.Apple Inc needs to understand that lower-level employees are more conscious than the managersand that their morale is most important. The management is too busy and concerned with the end-result that they forget to understand the mere fact the employees have concerns. As with the case ofany other successful company, long-term and consistent growth can be overpowering anddevastating. At this point, it is important to look after for the concerns and issues of the staff ratherthan own salaries and incentives.Apple Inc should implement a total reward system that integrates both financial and non-financialincentives. Apple Inc has been following the same approach of mixing extrinsic methods ofmotivation with intrinsic methods. This would overshadow the autocratic leadership style of SteveJobs. Sense of job security will help reduce the threat of “defence routines” employee tend to followin such circumstances. Such a practise affects in decreasing employee morale and motivation andhas diverse effects on the innovative approach which has been Apple Inc’s biggest asset. Apple Inchas so far managed to steer its employees in the desired way by employing the right strategy tomotivate its employees by recognising their contribution to the organization’s success.It can be concluded that employee morale and motivation has always been a critical factor in theoverall success, prosperity and growth of the company. Therefore, it is vital to observe the level ofemployee motivation because of interconnected internal, external, individual and organizationalaspects.Ref.: Employee motivation and incentives at Apple - Christoph MüllerGhulam Mustafa ID 00106318 Page 37