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UNIVERSITY OF DHAKA
Department of International BUSINESS
Course Code: IB-102
Term Paper On
Motivation Process of Apple Company
Prepared by:
Safiullah Hossain Mollick
ID No. 06201249
Supervisor:
Professor Dr. Khondoker Bazlul Haque
Date of Submission:
15/7/2013
Acknowledgement
I would like to thank our honorable course teacher, Professor (Dr) Khondoker
Bazlul Hoque, Lecturer, Department of International Business, University of
Dhaka, for his kind and considerate help for the preparation of Term paper on
“Motivation Process of apple Company”. He has helped me throughout the time
and has given me advice and guidance for any kind of help I wanted without being
a bit irritated. His helpfulness has always inspired me. I would be ever grateful to
him.
In course of writing this paper, I have so far given my best effort to prepare and
represent the term paper according to instruction of our honorable supervisor. I
hope my endeavor will be beneficial to the audience and urge for exonerate eye for
any mistake or error found in the report.
Letter of Transmittal
27th May, 2013
Dr. Khondoker Bazlul Hoque
Professor
Department of International Business
Faculty of Business Studies
University of Dhaka
Dear Sir,
I am submitting the term paper entitled Motivation process of Apple Computers.
The purpose of this assignment is to provide information about the context of motivation process
system of Apple Computers and how the Company influences the corporate business
environment.
I hope this term paper will prove to be satisfactory.
Respectfully yours
_______________
Safiullah Hossain Mollick
Roll: 49
Batch: 6th
Department of International Business
University of Dhaka.
Executive Summary
Chapter 1introduction to the research problem & it's rational for study,
objectives, methodology and limitations. Chapter 2 discusses about an
overview of Apple Computers. It includes history, vision, mission,
company objectives, product range, human resource management,
marketing, production, corporate social responsibility etc. Chapter 3
analyses Apple Computers as well as other top potential same nature
companies’ performance. From this analysis I have find out some
strength of Apple Computers and they are - advantage of high
technology, strong research and development department, advantage of
brand name, well skilled employees etc. Chapter 4 discusses about
Conclusion & recommendation.
Table of Contents
Executive Summary
Chapter -1: Introduction
1.1 Statement of the research problem and Rationale for its study
1.2 Objectives of the study
1.3 Methodology of the study
1.4 Limitations of the study
Chapter -2: An overview of Apple Computers
2.1 History
2.2 Vision
2.3 Mission
2.4 Company Objectives
2.5 Product Range
2.6 Organ gram
2.7 Major Functional Areas
2.8 Corporate Social Responsibility
Chapter -3: Findings and Analysis
3.1 SWOT Analysis for Apple Computers
3.2 Motivation Processes Adopted by the Company
3.3 An Overview of Apple Company Workers
3.4 Importance of Brand & Motivation to the Company
3.5 Two factor Theory (Herzberg)
Chapter -4: Recommendations and Conclusion
Bibliography
Annexure/Appendices
Chapter 1: Introduction
Research problem & Rationale for its study
Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation
headquartered in Cupertino, California that designs, develops, and sells consumer electronics,
computer software and personal computers. Its best-known hardware products are the Mac line
of computers, the IPod music player, the iPhone smartphone, and the iPad tablet computer. Its
consumer software includes the OS X and IOS operating systems, the ITunes media browser, the
Safari web browser, and the iLife and iWork creativity and production suites
As of May 2013, Apple maintains 406 retail stores in fourteen countries as well as the online
Apple Store and iTunes Store the latter of which is the world's largest music retailer. Apple is the
second-largest publicly traded corporation in the world by market capitalization, with an
estimated value of US$414 billion as of January 2013. As of September 29, 2012, the company
had 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide.
Its worldwide annual revenue in 2012 totaled $156 billion. In May 2013, Apple entered the top
ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking
to take the sixth position.
So, studying the motivation Process of Apple Computers will help us to understand how a large
incorporation like Apple operates their motivational strategies and how other multinational
company can improve following Apple`s policy. Furthermore, as some of our local companies
are now improving their selves as multinational, so they can also take some idea from these
policies.
Objectives of the Study
The main objective of this study is to analyze the Motivation Process of Apple Computers.
Specific Objectives are:
◆ To find the reasons behind the growth of Apple Computers.
◆ To analyzing the current Motivation process of Apple Computers.
◆ To find out the problems facing by Apple Computers in motivating.
◆ To find out ways how Apple Computers become successful.
Methodology of the Study
The strategies used by the company previously were analyzed and a SWOT analysis was done on the
company. The report examines the importance of motivation to Apple Computers. It also includes why
workers work in this firm.
Limitations of the Study
There have some limitations when preparing this report:
i. Due to time constraints and unknown data sources regarding motivation processes,unable to
collect sufficient data for this paper.
ii. Global and operational information are collected from the web base secondary sources which
are relatively accurate.
iii. Presentation and discussion made in this paper may be inappropriate in some cases.
Sources of Data
Primary Sources:
Primary data is collected by observing culture and management practices of home country
companies.
Secondary Sources:
The secondary data is collected for this paper from:
1. Internet
2. Studying Documents written on Apple Computers
3. Going through the book
4. Study many articles written on motivation at different companies of different countries.
Chapter 2: An Overview of Apple Computers
History
Apple Incorporation formerly Apple Computer Inc. is a multinational corporation that creates
consumer electronics, personal computers, computer software, and commercial servers, and is a
digital distributor of media content. Apple's core product lines are the iPhone smart phone, iPad
tablet computer, iPod portable media players, and Macintosh computer line. Founders Steve Jobs
and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of the
Apple, and incorporated the company on January 3, 1977 in Cupertino, California.
The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on
January 3, 1977. The word "Computer" was removed from its name on January 9, 2007,
reflecting its shifted focus towards consumer electronics after the introduction of the IPhone.
For more than two decades, Apple Computer was predominantly a manufacturer of personal
computers, including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and
low market share during the 1990s. Jobs, who had been ousted from the company in 1985,
returned to Apple in 1996 after his company NEXT was bought by Apple. The following year he
became the company’s interim CEO which later became permanent. Jobs subsequently instilled
a new corporate philosophy of recognizable products and simple design, starting with the
original IMac in 1998.
Apple is the world's second-largest information technology company by revenue after Samsung
Electronics and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune
magazine named Apple the most admired company in the United States in 2008, and in the world
from 2008 to 2012. However, the company has received criticism for its contractors' labor
practices, and for Apple's own environmental and business practices.
With the introduction of the successful iPod music player in 2001 and iTunes Music Store in
2003, Apple established itself as a leader in the consumer electronics and media sales industries,
leading it to drop "Computer" from the company's name in 2007. The company is now also
known for its IOS range of smart phone, media player, and tablet computer products that began
with the iPhone, followed by the IPod Touch and then iPad. As of 2012, Apple is the largest
publicly traded corporation in the world by market capitalization, with an estimated value of
US$626 billion as of September 2012. Apple Inc's market cap is larger than that of Google and
Microsoft combined. Apple's worldwide annual revenue in 2010 totaled US$65 billion, growing
to US$127.8 billion in 2011 and $156 billion in 2012.
Vision
Apple’s Vision statement clearly states their long-term goals for the future. They are committed
to bringing the best computing and learning experiences to consumers and through their
continuous research and launch of new products they are able to give their target markets what
they want. Apple’s vision is to become the “best” at designing and manufacturing electronic
devices in the world. They set their quality standards high using the word “best” and so far they
have yet to fail. Their vision is a promise to the consumers. They are “committed” in producing
high quality products and providing high quality service thus setting high industry standards for
other competitors.
Apple lives this vision through the technologies it develops for consumers and corporations. It
strives to make its customers masters of the products they have bought. Apple doesn't simply
make a statement. It lives it by ensuring that its employees understand the vision and strive to
reach it. It has put systems in place to enable smooth customer interaction. It has put objectives
in place to continuously move forward; implemented strategies to fulfill these objectives; and
ensured that the right marketing, financial and operational structures are in place to apply the
strategies.
Mission
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork,
and professional software. Apple leads the digital music revolution with its iPods and iTunes
online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store,
and has recently introduced its magical iPad which is defining the future of mobile media and
computing devices.
Company Objectives
Apple's motto, "Think Differently," is a concept that the company does very well by creating
innovative products that continue to define the world of computer design. Other computer
manufacturers have attempted for decades to replicate the icon classic appeal of the Apple
design. None have succeeded in the manner of Apple. When Steve Jobs assumed the post of
CEO in 1998, he re-revolutionized the entire company. Apple introduced the iMac and iBook
product lines for the more basic computer buyers and the Power Book and G series computers
for the advanced purchasers. Apple continues to forge ahead in design with the introduction of
the iPod digital music player and the iTunes Web site for the sale and download of music.
Among giant rival firms, such as IBM, Apple is on the forefront of a revolution of technology,
integrating music, images, and animation. History Founded in 1976 in a garage in Santa Clara,
California, Apple is the brainchild of Steve Wozniak and Steve Jobs, two college dropouts who
sought to provide a user-friendly computer to a new and distinct market of small computer users.
Between 1978 and 1980, sales increased from $7.8 million to $117 million, and in 1980 the
company underwent its initial public stock offering. In 1983, Steve Wozinak left Apple. That
same year Steve Jobs hired away John Sculley from Pepsi to be the company's president. After
experiencing several product failures, Apple unveiled the Macintosh computer in 1984 to
overwhelming success, setting the stage for Apple's rise and its recognition as a household name.
By 1985, relations between Sculley and Jobs became contentious. In 1997, Gilbert Amelio,
Apple's current CEO, orchestrated the purchase of the company Next-Step from Apple founder
Steve Jobs. The NeXT operating system was a vast improvement over the then outdated
Macintosh operating system. At the time of the purchase, it was hoped that the NeXT
operating system could be used to upgrade and overhaul the Macintosh operating system.
However, sales in the corporate and education sectors continued to fall, and Apple was forced to
trim its workforce by 30 percent, canceling projects and trimming research costs.
Apple also implemented other cost saving measures, including canceling the Newton handheld
device and the production of printers. In addition, Jobs streamlined Apple's product line. Pryor to
Jobs’ return, Apple produced 12 versions of the Macintosh computer, none profitably. Jobs
refocused Apple to concentrate on two markets: consumer and professional. The professional
series of Macintosh computers would have the prefix "Power," such as the Power Mac desktop
series and the PowerBook laptop series. Steve Job’s leadership has led to the adoption of USB
and, later, Fire-wire ports for digital connection of the computer to peripherals.
Product Range
Apple Inc. (NASDAQ: AAPL; NYSE: AAPL; previously Apple Computer, Inc.) is an American
multinational corporation that designs and markets consumer electronics, computer software, and
personal computers. The company's best-known hardware products include the Macintosh line of
computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating
system; the iTunes media browser; the iLife suite of multimedia and creativity software; the
iWork suite of productivity software; Aperture, a professional photography package; Final Cut
Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of
music production tools; the Safari internet browser; and IOS, a mobile operating system. As of
August 2010, the company operates 301 retail stores in ten countries, and an online store where
hardware and software products are sold.[5] As of May 2011, Apple is one of the largest
companies in the world and the most valuable technology company in the world, having
surpassed Microsoft.
Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the
company was previously named Apple Computer, Inc., for its first 30 years, but removed the
word "Computer" on January 9, 2007, to reflect the company's ongoing expansion into the
consumer electronics market in addition to its traditional focus on personal computers. As of
September 2010, Apple had 46,600 full time employees and 2,800 temporary full time
employees worldwide and had worldwide annual sales of $65.23 billion.
For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive
advertising campaigns, Apple has established a unique reputation in the consumer electronics
industry. This includes a customer base that is devoted to the company and its brand, particularly
in the United States. Fortune magazine named Apple the most admired company in the United
States in 2008, and in the world in 2008, 2009, and 2010. The company has also received
widespread criticism for its contractors' labor, environmental, and business practices.
Organ gram of Apple Company
According to the composition of Apple's Executive Board, I think this chart is quite correct up to the 2nd
level. As can be seen, there's no one in charge of HR reporting directly to Steve at all, which makes me
wonder why HR is not centralized in this case. Also, I find it a bit awkward that Education, Online Store,
Outsourcing and Apple Care fall under the same reporting level as Americas, Asia and EMEAI (Europe,
Middle East, Africa and India). And why are Americas and Asia managed under one person but not under
different managers (while total sales of Americas and Asia are substantially more than that of EMEAI)
Hope I can get some insights from the experts here.
Major Functional Areas
Even in the smallest business a number of key tasks, or functions, must be done regularly. Stock must be bought,
bills must be paid, customers must be served and customer enquiries must be answered. In a small firmall these jobs
may be done by one or two people. In a large organization, people specialize in different tasks. Tesco and
Sainsbury’s, for example, have buyers to purchase the stock, accounts staff to pay the bills, checkout staff to serve
customers and customer service staff to answer queries.
Functional areas in business
In a large organization, it is usually easier to identify separate functional areas because people work together in
departments. Each department carries out the tasks that relate to its particular area. The main ones you are likely to
meet in business are shown below.
The purposes of functional areas
The main purpose of functional areas is to ensure that all important business activities are carried
out efficiently. This is essential if the business is to achieve its aims and objectives. In addition,
specific areas will be responsibility for supporting specific types of aims and objectives, for
example: sales and marketing will be involved in achieving targets linked to developing new
markets or increasing sales human resources will be involved in arranging staff training activities
and supporting the continuous professional development of all staff finance will be expected to
monitor and support aims and objectives linked to keeping costs low to improve profitability
production will be set targets relating to quality or meeting planned production schedules.
The administration function
Administration is a support function required by all businesses – and this does not mean just
doing keyboarding or filing. Senior administrators carry out a wide range of tasks, from
monitoring budgets to interviewing new staff for their departments. Routine administrative tasks
include opening the mail, preparing and filing documents, sending emails and faxes. Others
require more creativity and flexibility, such as arranging travel or important events, from staff
meetings to visits by foreign customers.
The Human Resources (HR) function
The human resources of a business are its employees. Wise organizations look after their staff on
the basis that if they are well trained and committed to the aims of the business, the organization
is more likely to be successful. HR is responsible for recruiting new employees and ensuring that
each vacancy is filled by the best person for the job. This is important because the recruitment
process is expensive and time-consuming. Hiring the wrong person can be costly and cause
problems both for the individual and the firm.
Analyzing staff-turnover figures will show the rate at which people leave the organization. If
these are high, it is important to identify and remedy any problem areas. Whilst people may leave
for justifiable reasons, such as moving to another area or for promotion elsewhere, dissatisfaction
with the job or the company should be investigated.
The marketing function
Marketing is all about identifying and meeting customer needs. Many businesses consider this so
important that they are said to be marketing led. In this case, everyone in the organization is
trained to put the customer first – from the production worker, who has to produce high quality
goods, to the accounts clerk, who must respond to a customer enquiry promptly and accurately.
Another way to understand marketing is through the marketing mix which consists of four Ps.
Product – Who are our customers? What do they want to buy? Are their needs changing? Which
products are we offering and how many are we selling? What new products are we planning? In
which areas are sales growing – and how can we sustain this? For which products are sales static
– and how can we renew interest? Which sales are falling and what, if anything, can we do?
Price – How much should we charge? Should we reduce the price at the start to attract more
customers – or charge as much as we can when we can? Can we charge different prices to
different types of customers? What discounts can we give? What services or products should we
give away or sell very cheaply – and what benefits would this bring?
Promotion – How can we tell people about our products? Should we have specialist sales staff?
Where should we advertise to attract the attention of our key customers? How else can we
promote the product – should we give free samples or run a competition? Where and how can we
obtain free publicity? Should we send direct mail shots and, if so, what information should we
include?
Place – How can we distribute our product(s)? Should we sell direct to the customer or through
retailers? Do we need specialist wholesalers or overseas agents to sell for us? What can we sell
over the telephone? How can the Internet help us to sell more?
All these questions are considered by marketing staff. They start by identifying future customer
needs. Products are then developed (or adapted) or services offered to meet these needs. If this is
done well, it gives the company an edge over its competitors. This happened when
Apple introduced the iPod.
The research and development (R & D) function
This function is concerned with new product developments as well as improvements to existing
products or product lines. In many industries, it also involves product design as well.
Improvements to existing products are often ongoing as a result of market research or customer
feedback (see page 00). You can see these improvements around you all the time – such as ring-
pull cans, microwavable containers for ready meals, transparent jug kettles and memory sticks
for computers.
CORPORATE SOCIAL RESPONSIBILITY AT APPLE
News of Steve Jobs’ death sent shockwaves through the technology industry, a world that he, in
large part, shaped with his career. Apple’s executives are now left with the challenge of how to
lead a company, whose identity has been inextricably linked to Jobs’ for decades. The task is
formidable, especially when Apple’s fanatically loyal customer base is considerably less certain
about what to expect from CEO Tim Cook.
Apple still needs to embrace the core values that make it a “cool” company: in short, that owning
an Apple product secures membership in a select group. While Apple is perhaps overdue for a
CSR strategy, the decision to enact donation matching is decidedly not the "Apple Way." The
sequence of events surrounding last month’s announcement as well as the fundamentally
uncreative quality of the program presented imply that Cook is only responding to media
pressure rather than bringing to CSR the same kind of innovative and inspiring vision for which
Apple is so highly regarded. And in that regard, the corporate matching program is a fail.
Integrity: Any major organizational change is accompanied by insecurity. The transition from
Jobs’ approach to hiring and firing is bound to create uncertainty among employees, and in
corporate environments uncertainty inevitably creates pernicious maneuvering and second
guessing at middle management levels. The new CSR initiatives should present both the
company and its new CEO with a unique opportunity to promote an image of integrity and to
differentiate the new leadership from that of the Jobs era. However, philanthropy is not a good
place to start. It should start from inside, promoting trust and openness, the internal integrity.
Empathy: Empathy creates emotional bonding between the company and stakeholders allowing
companies to endure a difficult time. Apple is currently embroiled in lawsuits that are likely to
restrict consumer choices in the future if it carries on. Publishers are frustrated by Apple’s
hammerlock over apps and magazine subscriptions on the iPad. There have been indications that
Samsung, Apple's most threatening competitor, angered by patent law suits, will finally fight
back to counter sue Apple. While from Apple’s point of view, taking legal action against
competitors may seem necessary as a means of protecting innovation, public opinion works
differently. For multinational companies the legal victory can often end with a kind of zero sum
game, leaving it with a reputation for arrogance and insecurity. Apple will have to worry about
its reputation all the more so if it wins the battles against competitors.
Zeal: Zeal is perhaps the virtue most-embedded at Apple’s core and is represented by their
continuous innovation and excitement in terms of products and customer experience. By
emphasizing CSR, Tim Cook would need to bring that famous Apple zeal to social issues,
offering an innovative approach, as competitor Google did, when it famously began encouraging
its employees to spend 20% of their time on their own projects.
It goes without saying that Cook and Apple are standing at a precipice. Product innovations can
be short-lived. A serious CSR strategy could quietly shift Apple’s sales pitch from personal
charisma to the great public good, doing Apple good in the long term.
Chapter 3: Findings and Analysis
SWOT Analysis for Apple Computers
Strengths
Global recognition and strength - The company is positioned . The products of the
company are well distributed in all major markets making the company a household name for its
products.
Diverse product range - The Company has invested heavily in major business fields giving it
a wide range of products. These products are categorized into both long and short term products.
Among the long term products are Mac laptops while short term products include iPhone, iPad
and iPod.
A decentralized organization - Structures are designed in such ways where management is
done at the regional levels thereby reducing the burden of cross border transaction and
communication.
Relationship - The Company has well established international relationship with both
customers and employees.
Customer loyalty combined with expanding closed ecosystem - While at first Apple’s
closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a
full range of apps, software and products that are interlinked and support each other. Second,
new products and supplements will be released soon (iTV), hence expanding the ecosystem.
Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem,
which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding
closed ecosystem and customers’ loyalty increases firm’s competitive advantage.
Apple is a leading innovator in mobile device technology - Apple has been chosen as the
most innovative business in the world for the 3rd time in 2012. Company’s core competency of
producing innovative products is the strength the company builds upon and is able to bring the
most innovative products to the market.
Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no
debt) - Apple’s financial performance is one of the best among many companies. Company
currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions,
buying back company shares and other matters. It also has higher gross profit margin than its
main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by
interest rates or credit markets.
Brand reputation. Apple has a reputation of highly innovative, well designed, and well-
functioning products and sound business performance. Apple brand is valued at $76.5 billion and
was the second most valuable brand in the world in 2012.
Retail stores. Apple’s retail stores ensure high quality customer experience; provide direct
contact with knowledgeable staff and increases brand awareness. Besides, Apple’s stores are one
of the most profitable in terms of sales/ft2.
Strong marketing and advertising teams. Marketing is one of the strongest functional areas
Apple has. It can sell pricier products, build superior stores (they are more or less built to achieve
marketing goals) and advertise their products in a compelling manner.
Weaknesses
High price. Apple’s products cost much more than its competitors devices. Some critics
argue that the price is not justified. When there’s such a fierce competition, Apple products price
becomes a weakness because consumers can easily opt for similar quality but lower price
products.
Incompatibility with different OS. The iOS and OS X are quite different from other OS and
uses software that is unlike the software used in Microsoft OS. Due to such differences, both in
software and hardware, users often choose to stay with their accustomed software and hardware
(Microsoft OS and Intel hardware).
Decreasing market share. The less market share Apple has, the less it can influence its
potential customers and persuade them to jump into using Apple’s closed ecosystem products.
Patent infringements. The firm is often accused of infringing other companies’ patents and
has even lost some trials. This damages Apple brand and its financial situation.
Further changes in management. Apple has lost Steve Jobs in 2012 and Tim Cook became
the new CEO. Scott Forstall and John Browett (chief of retail) left the company too and this will
have an impact on company’s management, which, as many think, will be negative.
Defects of new products. This is not current Apple weakness but one that jumps out time to
time. Some of Apple’s iPod and iPhone releases had clear faults and thus disturbed sales of the
products and firm’s reputation of superior product performance.
Long-term gross margin decline. Current Apple’s gross margin is one of the highest in the
tech industry but analysts fear that due to increasing component prices and competition current
margins will not be sustained. Hence, glooming firm’s future financial performance.
Opportunities
High demand of iPad mini and iPhone 5. iPad mini sales will increase Apple’s market share
in the tablet market and, will strengthen firm’s competitive advantage.
iTV launch. iTV launch will support Apple TV sales and the products’ ecosystem.
Emergence of the new provider of application processors. Samsung, the main Apple’s
competitor, is also the only provider of application processors for Apple’s products. Apple has to
find a new source for the component but could not find a suitable one yet. Nonetheless, new
manufacturers with superior engineering capabilities are arising and it’s just a matter of
time,when Apple will seize upon the opportunity of being less dependent on its direct
competitors.
Growth of tablet and smartphone markets. Growth of tablet and smartphone markets is a
good opportunity to expand firm’s share in these markets.
Obtaining patents through acquisitions. Apple lacks of some patents to sustain its growth
and the best way to acquire those patents is to acquire the firms holding them. In addition, Apple
could develop new skills and competencies.
Damages from patent infringements. Apple patents are often infringed by its competitors.
Thus, collecting the damages from the companies that do so is a viable opportunity to not only
increase the cash reserves but to damage the competitor’s reputation and sales as well.
Strong growth of mobile advertising market. Apple has developed iAd advertising
platform, which allows advertising on Apple iPhone, iPad and iPod touch. The growth of mobile
advertising market is an opportunity which could be further seized upon.
Increasing demand for cloud based services. Apple could expand its range of iCloud
services and software as the demand for cloud-based services is expanding.
Threats
 Rapid technological change: One of the most severe threats Apple and the other tech
companies are facing is rapid technological change. Companies are under the pressure to release
new products faster and faster. The one that cannot keep up with the competition soon fails. This
is especially hard when a business wants to introduce something new, innovative and successful.
Apple was able to bring very innovative products to the market so far but for the moment, even
Apple hasn’t unveiled any plans for the new products (except iTV) and may lack new
introductions to keep up with competition.
 2013 tax increases. Tax increases in USA in 2013 will negatively affect Apple.
 Rising pay levels for Foxconn workers: Pay levels for Foxconn’s workers already rose 3
times from 2010 to 2012. Foxconn is the main manufacturer of Apple products and the rising pay
level for Foxconn’s workers will likely raise the prices for Apple products.
 Breached IP rights: The companies that breach Apple patents might not be discovered soon
and may benefit from it, while weakening Apple at the same time.
 Price pressure from Samsung over key components: Samsung has already asked Apple to
pay higher price for its application processors. Due to intense competition and no viable
substitutes, Apple may be asked to pay even more.
 Strong dollar: Apple earned more than half of its revenues from outside US. Dollar
appreciation against other currencies reduces potential profits from those countries.
 Android OS growth: Android OS is the main competitor for IOS in mobile device market.
The domination of Android decreases IOS power over influencing consumers to join Apple.
 Competitors’ moves in online music market. Apple faces threat from online music stores,
such as Amazon, Wal-Mart and online music subscription companies, such as Spotify.
An Overview of Apple Workers
Rank Indicatorr Mean Interpretation
1 Confident to be successful 1.09 very often
2 Work hard to complete work 1.27 very often
3 Privilege to be part of the organization 1.47 very often
4 Proud to be part of the organization 1.47 very often
5 Sense of belongingness 1.47 very often
6 Loyal to the company 1.72 often
7 Identify alternative solution 1.75 often
8 Help co-workers 1.76 often
9 Exert full effort 1.78 often
10 Ability to cope with change 1.78 often
11 Excited to work and energetic 1.87 often
12 High confidence over the decision of the management 1.89 often
13 Recommend the company as good working
environment to others
1.93 often
14 Do the job well with high quality 1.94 often
15 Highly initiatively 2.16 often
Table 6 shows the different indicators of motivation or the attitudes of the employees towards
work. In order to measure these, the author of the study asked the respondents to rate how often
they practice or feel the statements – based on the different theories and principles of indicators
of motivation. The result showed that all of the indicators show high rate ranging from very often
too often, which shows that the employees are highly motivated to work.
The result shows that the top 5 and the most frequent attitudes of the respondents are: confident
to be successful (mean = 1.09), work hard to complete work (mean = 1.27), privilege to be part
of the organization (mean = 1.47), proud to be part of the organization (mean = 1.47) and sense
of belongingness (mean = 1.47).
The remaining 10 indicators are considered as frequent attitude of the respondents: loyal to the
company (mean = 1.72), identify alternative solution (mean = 1.75), help co-workers (mean =
1.76), exert full effort (mean = 1.78), ability to cope with change (mean = 1.78), excited to work
and energetic (mean = 1.87), high confidence over the decision of the management (mean =
1.89), recommend the company as good working environment to other (mean = 1.93), do the job
well with high quality (mean = 1.94) and highly initiative (mean = 2.16).
This means that employees of Apple Inc are loyal to the company, thus they foresee that they
will stay in the company and in the service for a long time. Another important sign or indicator
of motivation is the level or degree of effort that employees are exerting in their respective task
or work. Based on the result, it shows that the respondents are exerting high level of effort in
order to do their job in effective and efficient manner. The result also showed that the employees
are energetic and excited to work. All of these enable the employee to do their job in high quality
based on the standard of the company.
Importance of Brand & Motivation to the Company
Brands are a hugely important asset to a company and ought to be promoted through the likes of
live brand experiences, according to an expert in the industry.
Director and chief executive of The Centre for Brand Analysis Steven Cheliotis said that
companies, particularly ones such as Apple, are using branding as their "major competitive
advantage".
He continued: "In a world where service is quick and product innovation is very swift, there's not
much to differentiate different providers than the brand and the reputation."
This notion was substantiated by the way certain organizations have not tried to grow their
revenue so much as they've aimed to expand their brand, with many employing live brand
experiences.
The Company is developing due to its proper emphasize given on Motivation.
Two factor Theory (Herzberg):
According to Herzberg, two kinds of factors affect motivation, and they do it in different ways:
• Hygiene factors. These are factors whose absence motivates, but whose presence has no
perceived effect. They are things that when you take them away, people become
dissatisfied and act to get them back. A very good example is heroin to a heroin addict.
Long term addicts do not shoot up to get high; they shoot up to stop being sick -- to get
normal. Other examples include decent working conditions, security, pay, benefits (like
health insurance), company policies, interpersonal relationships. In general, these are
extrinsic items low in the Maslow/Alderfer hierarchy.
• Motivators. These are factors whose presence motivates. Their absence does not cause
any particular dissatisfaction, it just fails to motivate. Examples are all the things at the
top of the Maslow hierarchy, and the intrinsic motivators.
So hygiene factors determine dissatisfaction, and motivators determine satisfaction. The two
scales are independent, and you can be high on both.
If you think back to the class discussion on power, we talked about a baseline point on the well-
being scale. Power involved a threat to reduce your well-being, causing dissatisfaction. Hence,
power basically works by threatening to withhold hygiene factors. Influence was said to
fundamentally be about promising improvements in well-being -- when you are influenced to do
something, it is because you want to, not because you were threatened. Influence basically works
by offering to provide motivators (in Herzberg's terms).
Chapter 4: Recommendations and Conclusion
Recommendations
Apple Computers is a global company. The achievement made by the company over the last
couple of decades show the firms commitment to achieving global presence in all corners of the
world. Since the company has a wide capital base, it has potentials to reach a wider market than
it has currently achieved. It is recommended here that;
 The Company should invest in high level business surveys in upcoming markets to
expand its market base.
 The Company should create opportunity to local professionals in their targeted regions
who would help to actualize the real customer needs in such market.
 The Company should produce customized products so that worldwide people can use
them. It means they should produce such kind of materials that people can use easily and have
fewer difficulties controlling the products.
 The Company should also create opportunity for non-American intelligence to work
here.
 The Company should also act socially approved means not to waste resources, pay
proper attention to mankind and to nature.
 The Company should provide proper medical facilities to worker so that they can work
here.
 A process of using global communication by using different languages in the
corporation should also be introduce by the company.
 The Company should provide proper wages and adequate training to employees.
 The Company should improve their products and the standard of the products; like
increasing the sensitivity of iPhone and ipod, uses of strong visibility screen in Mac Pc etc.
The Company should provide facilities to employees.
Conclusion
Motivation is very important in today`s business. The growth of technology has
established the world as a global village and has given businesses a perfect
opportunity for reaching to the previously unreachable markets. Apple has a well
established capital base that ensures that it can reach to more regions than it has
done. However the company still has a lacking of efficient workers. Besides the
managerial skills of the companies manager should also be developed. The
Motivation strategies and processes that the company has adopted, needs to be
updated because global market is getting more and more competitive. The main
rival of Apple Company is Sony Corporation. Also it has several other rivals such
as in iPhone & iPad its main rival is Samsung and in Pc`s its main rivals are
Microsoft and Hewlett-Packard.
Motivation presents great potentials for the company since its products
development depends mainly in Employees work. The company should hence
work towards developing its Human Resources, Properly fulfill employs demands
and remove its weakness in order to gain maximum output from them and raise its
market value alongside with product value.
Reference
1. From articles,
2. Internet
3. Assigned book
4. Own experience
5. Studying different journal and research papers.
Bibliography
 Studying a lot of cases discussed about the mentioned
 Studying articles written on culture, politics, economic, demography and
management styles of different countries
 http://www.google.com.
 http://www.applecomputers.inc
 Principle of Management by Kreitner
 Human Resource Management by Randall S. Schuller

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Motivation Process of Apple Computers

  • 1. UNIVERSITY OF DHAKA Department of International BUSINESS Course Code: IB-102 Term Paper On Motivation Process of Apple Company Prepared by: Safiullah Hossain Mollick ID No. 06201249 Supervisor: Professor Dr. Khondoker Bazlul Haque Date of Submission: 15/7/2013
  • 2. Acknowledgement I would like to thank our honorable course teacher, Professor (Dr) Khondoker Bazlul Hoque, Lecturer, Department of International Business, University of Dhaka, for his kind and considerate help for the preparation of Term paper on “Motivation Process of apple Company”. He has helped me throughout the time and has given me advice and guidance for any kind of help I wanted without being a bit irritated. His helpfulness has always inspired me. I would be ever grateful to him. In course of writing this paper, I have so far given my best effort to prepare and represent the term paper according to instruction of our honorable supervisor. I hope my endeavor will be beneficial to the audience and urge for exonerate eye for any mistake or error found in the report.
  • 3. Letter of Transmittal 27th May, 2013 Dr. Khondoker Bazlul Hoque Professor Department of International Business Faculty of Business Studies University of Dhaka Dear Sir, I am submitting the term paper entitled Motivation process of Apple Computers. The purpose of this assignment is to provide information about the context of motivation process system of Apple Computers and how the Company influences the corporate business environment. I hope this term paper will prove to be satisfactory. Respectfully yours _______________ Safiullah Hossain Mollick Roll: 49 Batch: 6th Department of International Business University of Dhaka.
  • 4. Executive Summary Chapter 1introduction to the research problem & it's rational for study, objectives, methodology and limitations. Chapter 2 discusses about an overview of Apple Computers. It includes history, vision, mission, company objectives, product range, human resource management, marketing, production, corporate social responsibility etc. Chapter 3 analyses Apple Computers as well as other top potential same nature companies’ performance. From this analysis I have find out some strength of Apple Computers and they are - advantage of high technology, strong research and development department, advantage of brand name, well skilled employees etc. Chapter 4 discusses about Conclusion & recommendation.
  • 5. Table of Contents Executive Summary Chapter -1: Introduction 1.1 Statement of the research problem and Rationale for its study 1.2 Objectives of the study 1.3 Methodology of the study 1.4 Limitations of the study Chapter -2: An overview of Apple Computers 2.1 History 2.2 Vision 2.3 Mission 2.4 Company Objectives 2.5 Product Range 2.6 Organ gram 2.7 Major Functional Areas 2.8 Corporate Social Responsibility Chapter -3: Findings and Analysis 3.1 SWOT Analysis for Apple Computers 3.2 Motivation Processes Adopted by the Company 3.3 An Overview of Apple Company Workers 3.4 Importance of Brand & Motivation to the Company 3.5 Two factor Theory (Herzberg) Chapter -4: Recommendations and Conclusion Bibliography Annexure/Appendices
  • 6. Chapter 1: Introduction Research problem & Rationale for its study Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the IPod music player, the iPhone smartphone, and the iPad tablet computer. Its consumer software includes the OS X and IOS operating systems, the ITunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites As of May 2013, Apple maintains 406 retail stores in fourteen countries as well as the online Apple Store and iTunes Store the latter of which is the world's largest music retailer. Apple is the second-largest publicly traded corporation in the world by market capitalization, with an estimated value of US$414 billion as of January 2013. As of September 29, 2012, the company had 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide. Its worldwide annual revenue in 2012 totaled $156 billion. In May 2013, Apple entered the top ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking to take the sixth position. So, studying the motivation Process of Apple Computers will help us to understand how a large incorporation like Apple operates their motivational strategies and how other multinational company can improve following Apple`s policy. Furthermore, as some of our local companies are now improving their selves as multinational, so they can also take some idea from these policies. Objectives of the Study The main objective of this study is to analyze the Motivation Process of Apple Computers. Specific Objectives are: ◆ To find the reasons behind the growth of Apple Computers. ◆ To analyzing the current Motivation process of Apple Computers. ◆ To find out the problems facing by Apple Computers in motivating. ◆ To find out ways how Apple Computers become successful.
  • 7. Methodology of the Study The strategies used by the company previously were analyzed and a SWOT analysis was done on the company. The report examines the importance of motivation to Apple Computers. It also includes why workers work in this firm. Limitations of the Study There have some limitations when preparing this report: i. Due to time constraints and unknown data sources regarding motivation processes,unable to collect sufficient data for this paper. ii. Global and operational information are collected from the web base secondary sources which are relatively accurate. iii. Presentation and discussion made in this paper may be inappropriate in some cases. Sources of Data Primary Sources: Primary data is collected by observing culture and management practices of home country companies. Secondary Sources: The secondary data is collected for this paper from: 1. Internet 2. Studying Documents written on Apple Computers 3. Going through the book 4. Study many articles written on motivation at different companies of different countries.
  • 8. Chapter 2: An Overview of Apple Computers History Apple Incorporation formerly Apple Computer Inc. is a multinational corporation that creates consumer electronics, personal computers, computer software, and commercial servers, and is a digital distributor of media content. Apple's core product lines are the iPhone smart phone, iPad tablet computer, iPod portable media players, and Macintosh computer line. Founders Steve Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of the Apple, and incorporated the company on January 3, 1977 in Cupertino, California. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977. The word "Computer" was removed from its name on January 9, 2007, reflecting its shifted focus towards consumer electronics after the introduction of the IPhone. For more than two decades, Apple Computer was predominantly a manufacturer of personal computers, including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low market share during the 1990s. Jobs, who had been ousted from the company in 1985, returned to Apple in 1996 after his company NEXT was bought by Apple. The following year he became the company’s interim CEO which later became permanent. Jobs subsequently instilled a new corporate philosophy of recognizable products and simple design, starting with the original IMac in 1998. Apple is the world's second-largest information technology company by revenue after Samsung Electronics and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received criticism for its contractors' labor practices, and for Apple's own environmental and business practices. With the introduction of the successful iPod music player in 2001 and iTunes Music Store in 2003, Apple established itself as a leader in the consumer electronics and media sales industries, leading it to drop "Computer" from the company's name in 2007. The company is now also known for its IOS range of smart phone, media player, and tablet computer products that began with the iPhone, followed by the IPod Touch and then iPad. As of 2012, Apple is the largest publicly traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. Apple Inc's market cap is larger than that of Google and Microsoft combined. Apple's worldwide annual revenue in 2010 totaled US$65 billion, growing to US$127.8 billion in 2011 and $156 billion in 2012.
  • 9. Vision Apple’s Vision statement clearly states their long-term goals for the future. They are committed to bringing the best computing and learning experiences to consumers and through their continuous research and launch of new products they are able to give their target markets what they want. Apple’s vision is to become the “best” at designing and manufacturing electronic devices in the world. They set their quality standards high using the word “best” and so far they have yet to fail. Their vision is a promise to the consumers. They are “committed” in producing high quality products and providing high quality service thus setting high industry standards for other competitors. Apple lives this vision through the technologies it develops for consumers and corporations. It strives to make its customers masters of the products they have bought. Apple doesn't simply make a statement. It lives it by ensuring that its employees understand the vision and strive to reach it. It has put systems in place to enable smooth customer interaction. It has put objectives in place to continuously move forward; implemented strategies to fulfill these objectives; and ensured that the right marketing, financial and operational structures are in place to apply the strategies. Mission Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices. Company Objectives Apple's motto, "Think Differently," is a concept that the company does very well by creating innovative products that continue to define the world of computer design. Other computer manufacturers have attempted for decades to replicate the icon classic appeal of the Apple design. None have succeeded in the manner of Apple. When Steve Jobs assumed the post of CEO in 1998, he re-revolutionized the entire company. Apple introduced the iMac and iBook product lines for the more basic computer buyers and the Power Book and G series computers for the advanced purchasers. Apple continues to forge ahead in design with the introduction of the iPod digital music player and the iTunes Web site for the sale and download of music. Among giant rival firms, such as IBM, Apple is on the forefront of a revolution of technology, integrating music, images, and animation. History Founded in 1976 in a garage in Santa Clara, California, Apple is the brainchild of Steve Wozniak and Steve Jobs, two college dropouts who sought to provide a user-friendly computer to a new and distinct market of small computer users. Between 1978 and 1980, sales increased from $7.8 million to $117 million, and in 1980 the company underwent its initial public stock offering. In 1983, Steve Wozinak left Apple. That same year Steve Jobs hired away John Sculley from Pepsi to be the company's president. After
  • 10. experiencing several product failures, Apple unveiled the Macintosh computer in 1984 to overwhelming success, setting the stage for Apple's rise and its recognition as a household name. By 1985, relations between Sculley and Jobs became contentious. In 1997, Gilbert Amelio, Apple's current CEO, orchestrated the purchase of the company Next-Step from Apple founder Steve Jobs. The NeXT operating system was a vast improvement over the then outdated Macintosh operating system. At the time of the purchase, it was hoped that the NeXT operating system could be used to upgrade and overhaul the Macintosh operating system. However, sales in the corporate and education sectors continued to fall, and Apple was forced to trim its workforce by 30 percent, canceling projects and trimming research costs. Apple also implemented other cost saving measures, including canceling the Newton handheld device and the production of printers. In addition, Jobs streamlined Apple's product line. Pryor to Jobs’ return, Apple produced 12 versions of the Macintosh computer, none profitably. Jobs refocused Apple to concentrate on two markets: consumer and professional. The professional series of Macintosh computers would have the prefix "Power," such as the Power Mac desktop series and the PowerBook laptop series. Steve Job’s leadership has led to the adoption of USB and, later, Fire-wire ports for digital connection of the computer to peripherals. Product Range Apple Inc. (NASDAQ: AAPL; NYSE: AAPL; previously Apple Computer, Inc.) is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari internet browser; and IOS, a mobile operating system. As of August 2010, the company operates 301 retail stores in ten countries, and an online store where hardware and software products are sold.[5] As of May 2011, Apple is one of the largest companies in the world and the most valuable technology company in the world, having surpassed Microsoft. Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007, to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. As of September 2010, Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide and had worldwide annual sales of $65.23 billion. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world in 2008, 2009, and 2010. The company has also received widespread criticism for its contractors' labor, environmental, and business practices.
  • 11. Organ gram of Apple Company
  • 12. According to the composition of Apple's Executive Board, I think this chart is quite correct up to the 2nd level. As can be seen, there's no one in charge of HR reporting directly to Steve at all, which makes me wonder why HR is not centralized in this case. Also, I find it a bit awkward that Education, Online Store, Outsourcing and Apple Care fall under the same reporting level as Americas, Asia and EMEAI (Europe, Middle East, Africa and India). And why are Americas and Asia managed under one person but not under different managers (while total sales of Americas and Asia are substantially more than that of EMEAI) Hope I can get some insights from the experts here. Major Functional Areas Even in the smallest business a number of key tasks, or functions, must be done regularly. Stock must be bought, bills must be paid, customers must be served and customer enquiries must be answered. In a small firmall these jobs may be done by one or two people. In a large organization, people specialize in different tasks. Tesco and Sainsbury’s, for example, have buyers to purchase the stock, accounts staff to pay the bills, checkout staff to serve customers and customer service staff to answer queries. Functional areas in business In a large organization, it is usually easier to identify separate functional areas because people work together in departments. Each department carries out the tasks that relate to its particular area. The main ones you are likely to meet in business are shown below.
  • 13. The purposes of functional areas The main purpose of functional areas is to ensure that all important business activities are carried out efficiently. This is essential if the business is to achieve its aims and objectives. In addition, specific areas will be responsibility for supporting specific types of aims and objectives, for example: sales and marketing will be involved in achieving targets linked to developing new markets or increasing sales human resources will be involved in arranging staff training activities and supporting the continuous professional development of all staff finance will be expected to monitor and support aims and objectives linked to keeping costs low to improve profitability production will be set targets relating to quality or meeting planned production schedules. The administration function Administration is a support function required by all businesses – and this does not mean just doing keyboarding or filing. Senior administrators carry out a wide range of tasks, from monitoring budgets to interviewing new staff for their departments. Routine administrative tasks include opening the mail, preparing and filing documents, sending emails and faxes. Others require more creativity and flexibility, such as arranging travel or important events, from staff meetings to visits by foreign customers. The Human Resources (HR) function The human resources of a business are its employees. Wise organizations look after their staff on the basis that if they are well trained and committed to the aims of the business, the organization is more likely to be successful. HR is responsible for recruiting new employees and ensuring that each vacancy is filled by the best person for the job. This is important because the recruitment process is expensive and time-consuming. Hiring the wrong person can be costly and cause problems both for the individual and the firm. Analyzing staff-turnover figures will show the rate at which people leave the organization. If these are high, it is important to identify and remedy any problem areas. Whilst people may leave for justifiable reasons, such as moving to another area or for promotion elsewhere, dissatisfaction with the job or the company should be investigated. The marketing function Marketing is all about identifying and meeting customer needs. Many businesses consider this so important that they are said to be marketing led. In this case, everyone in the organization is trained to put the customer first – from the production worker, who has to produce high quality goods, to the accounts clerk, who must respond to a customer enquiry promptly and accurately. Another way to understand marketing is through the marketing mix which consists of four Ps. Product – Who are our customers? What do they want to buy? Are their needs changing? Which products are we offering and how many are we selling? What new products are we planning? In which areas are sales growing – and how can we sustain this? For which products are sales static – and how can we renew interest? Which sales are falling and what, if anything, can we do?
  • 14. Price – How much should we charge? Should we reduce the price at the start to attract more customers – or charge as much as we can when we can? Can we charge different prices to different types of customers? What discounts can we give? What services or products should we give away or sell very cheaply – and what benefits would this bring? Promotion – How can we tell people about our products? Should we have specialist sales staff? Where should we advertise to attract the attention of our key customers? How else can we promote the product – should we give free samples or run a competition? Where and how can we obtain free publicity? Should we send direct mail shots and, if so, what information should we include? Place – How can we distribute our product(s)? Should we sell direct to the customer or through retailers? Do we need specialist wholesalers or overseas agents to sell for us? What can we sell over the telephone? How can the Internet help us to sell more? All these questions are considered by marketing staff. They start by identifying future customer needs. Products are then developed (or adapted) or services offered to meet these needs. If this is done well, it gives the company an edge over its competitors. This happened when Apple introduced the iPod. The research and development (R & D) function This function is concerned with new product developments as well as improvements to existing products or product lines. In many industries, it also involves product design as well. Improvements to existing products are often ongoing as a result of market research or customer feedback (see page 00). You can see these improvements around you all the time – such as ring- pull cans, microwavable containers for ready meals, transparent jug kettles and memory sticks for computers.
  • 15.
  • 16. CORPORATE SOCIAL RESPONSIBILITY AT APPLE News of Steve Jobs’ death sent shockwaves through the technology industry, a world that he, in large part, shaped with his career. Apple’s executives are now left with the challenge of how to lead a company, whose identity has been inextricably linked to Jobs’ for decades. The task is formidable, especially when Apple’s fanatically loyal customer base is considerably less certain about what to expect from CEO Tim Cook. Apple still needs to embrace the core values that make it a “cool” company: in short, that owning an Apple product secures membership in a select group. While Apple is perhaps overdue for a CSR strategy, the decision to enact donation matching is decidedly not the "Apple Way." The sequence of events surrounding last month’s announcement as well as the fundamentally uncreative quality of the program presented imply that Cook is only responding to media pressure rather than bringing to CSR the same kind of innovative and inspiring vision for which Apple is so highly regarded. And in that regard, the corporate matching program is a fail. Integrity: Any major organizational change is accompanied by insecurity. The transition from Jobs’ approach to hiring and firing is bound to create uncertainty among employees, and in corporate environments uncertainty inevitably creates pernicious maneuvering and second guessing at middle management levels. The new CSR initiatives should present both the company and its new CEO with a unique opportunity to promote an image of integrity and to differentiate the new leadership from that of the Jobs era. However, philanthropy is not a good place to start. It should start from inside, promoting trust and openness, the internal integrity. Empathy: Empathy creates emotional bonding between the company and stakeholders allowing companies to endure a difficult time. Apple is currently embroiled in lawsuits that are likely to restrict consumer choices in the future if it carries on. Publishers are frustrated by Apple’s hammerlock over apps and magazine subscriptions on the iPad. There have been indications that Samsung, Apple's most threatening competitor, angered by patent law suits, will finally fight back to counter sue Apple. While from Apple’s point of view, taking legal action against competitors may seem necessary as a means of protecting innovation, public opinion works differently. For multinational companies the legal victory can often end with a kind of zero sum game, leaving it with a reputation for arrogance and insecurity. Apple will have to worry about its reputation all the more so if it wins the battles against competitors. Zeal: Zeal is perhaps the virtue most-embedded at Apple’s core and is represented by their continuous innovation and excitement in terms of products and customer experience. By emphasizing CSR, Tim Cook would need to bring that famous Apple zeal to social issues, offering an innovative approach, as competitor Google did, when it famously began encouraging its employees to spend 20% of their time on their own projects. It goes without saying that Cook and Apple are standing at a precipice. Product innovations can be short-lived. A serious CSR strategy could quietly shift Apple’s sales pitch from personal charisma to the great public good, doing Apple good in the long term.
  • 17. Chapter 3: Findings and Analysis SWOT Analysis for Apple Computers Strengths Global recognition and strength - The company is positioned . The products of the company are well distributed in all major markets making the company a household name for its products. Diverse product range - The Company has invested heavily in major business fields giving it a wide range of products. These products are categorized into both long and short term products. Among the long term products are Mac laptops while short term products include iPhone, iPad and iPod. A decentralized organization - Structures are designed in such ways where management is done at the regional levels thereby reducing the burden of cross border transaction and communication. Relationship - The Company has well established international relationship with both customers and employees. Customer loyalty combined with expanding closed ecosystem - While at first Apple’s closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a full range of apps, software and products that are interlinked and support each other. Second, new products and supplements will be released soon (iTV), hence expanding the ecosystem. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed ecosystem and customers’ loyalty increases firm’s competitive advantage. Apple is a leading innovator in mobile device technology - Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s core competency of producing innovative products is the strength the company builds upon and is able to bring the most innovative products to the market. Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no debt) - Apple’s financial performance is one of the best among many companies. Company currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares and other matters. It also has higher gross profit margin than its main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by interest rates or credit markets.
  • 18. Brand reputation. Apple has a reputation of highly innovative, well designed, and well- functioning products and sound business performance. Apple brand is valued at $76.5 billion and was the second most valuable brand in the world in 2012. Retail stores. Apple’s retail stores ensure high quality customer experience; provide direct contact with knowledgeable staff and increases brand awareness. Besides, Apple’s stores are one of the most profitable in terms of sales/ft2. Strong marketing and advertising teams. Marketing is one of the strongest functional areas Apple has. It can sell pricier products, build superior stores (they are more or less built to achieve marketing goals) and advertise their products in a compelling manner. Weaknesses High price. Apple’s products cost much more than its competitors devices. Some critics argue that the price is not justified. When there’s such a fierce competition, Apple products price becomes a weakness because consumers can easily opt for similar quality but lower price products. Incompatibility with different OS. The iOS and OS X are quite different from other OS and uses software that is unlike the software used in Microsoft OS. Due to such differences, both in software and hardware, users often choose to stay with their accustomed software and hardware (Microsoft OS and Intel hardware). Decreasing market share. The less market share Apple has, the less it can influence its potential customers and persuade them to jump into using Apple’s closed ecosystem products. Patent infringements. The firm is often accused of infringing other companies’ patents and has even lost some trials. This damages Apple brand and its financial situation. Further changes in management. Apple has lost Steve Jobs in 2012 and Tim Cook became the new CEO. Scott Forstall and John Browett (chief of retail) left the company too and this will have an impact on company’s management, which, as many think, will be negative. Defects of new products. This is not current Apple weakness but one that jumps out time to time. Some of Apple’s iPod and iPhone releases had clear faults and thus disturbed sales of the products and firm’s reputation of superior product performance.
  • 19. Long-term gross margin decline. Current Apple’s gross margin is one of the highest in the tech industry but analysts fear that due to increasing component prices and competition current margins will not be sustained. Hence, glooming firm’s future financial performance. Opportunities High demand of iPad mini and iPhone 5. iPad mini sales will increase Apple’s market share in the tablet market and, will strengthen firm’s competitive advantage. iTV launch. iTV launch will support Apple TV sales and the products’ ecosystem. Emergence of the new provider of application processors. Samsung, the main Apple’s competitor, is also the only provider of application processors for Apple’s products. Apple has to find a new source for the component but could not find a suitable one yet. Nonetheless, new manufacturers with superior engineering capabilities are arising and it’s just a matter of time,when Apple will seize upon the opportunity of being less dependent on its direct competitors. Growth of tablet and smartphone markets. Growth of tablet and smartphone markets is a good opportunity to expand firm’s share in these markets. Obtaining patents through acquisitions. Apple lacks of some patents to sustain its growth and the best way to acquire those patents is to acquire the firms holding them. In addition, Apple could develop new skills and competencies. Damages from patent infringements. Apple patents are often infringed by its competitors. Thus, collecting the damages from the companies that do so is a viable opportunity to not only increase the cash reserves but to damage the competitor’s reputation and sales as well. Strong growth of mobile advertising market. Apple has developed iAd advertising platform, which allows advertising on Apple iPhone, iPad and iPod touch. The growth of mobile advertising market is an opportunity which could be further seized upon. Increasing demand for cloud based services. Apple could expand its range of iCloud services and software as the demand for cloud-based services is expanding.
  • 20. Threats  Rapid technological change: One of the most severe threats Apple and the other tech companies are facing is rapid technological change. Companies are under the pressure to release new products faster and faster. The one that cannot keep up with the competition soon fails. This is especially hard when a business wants to introduce something new, innovative and successful. Apple was able to bring very innovative products to the market so far but for the moment, even Apple hasn’t unveiled any plans for the new products (except iTV) and may lack new introductions to keep up with competition.  2013 tax increases. Tax increases in USA in 2013 will negatively affect Apple.  Rising pay levels for Foxconn workers: Pay levels for Foxconn’s workers already rose 3 times from 2010 to 2012. Foxconn is the main manufacturer of Apple products and the rising pay level for Foxconn’s workers will likely raise the prices for Apple products.  Breached IP rights: The companies that breach Apple patents might not be discovered soon and may benefit from it, while weakening Apple at the same time.  Price pressure from Samsung over key components: Samsung has already asked Apple to pay higher price for its application processors. Due to intense competition and no viable substitutes, Apple may be asked to pay even more.  Strong dollar: Apple earned more than half of its revenues from outside US. Dollar appreciation against other currencies reduces potential profits from those countries.  Android OS growth: Android OS is the main competitor for IOS in mobile device market. The domination of Android decreases IOS power over influencing consumers to join Apple.  Competitors’ moves in online music market. Apple faces threat from online music stores, such as Amazon, Wal-Mart and online music subscription companies, such as Spotify.
  • 21. An Overview of Apple Workers Rank Indicatorr Mean Interpretation 1 Confident to be successful 1.09 very often 2 Work hard to complete work 1.27 very often 3 Privilege to be part of the organization 1.47 very often 4 Proud to be part of the organization 1.47 very often 5 Sense of belongingness 1.47 very often 6 Loyal to the company 1.72 often 7 Identify alternative solution 1.75 often 8 Help co-workers 1.76 often 9 Exert full effort 1.78 often 10 Ability to cope with change 1.78 often 11 Excited to work and energetic 1.87 often 12 High confidence over the decision of the management 1.89 often 13 Recommend the company as good working environment to others 1.93 often 14 Do the job well with high quality 1.94 often 15 Highly initiatively 2.16 often Table 6 shows the different indicators of motivation or the attitudes of the employees towards work. In order to measure these, the author of the study asked the respondents to rate how often they practice or feel the statements – based on the different theories and principles of indicators of motivation. The result showed that all of the indicators show high rate ranging from very often too often, which shows that the employees are highly motivated to work. The result shows that the top 5 and the most frequent attitudes of the respondents are: confident to be successful (mean = 1.09), work hard to complete work (mean = 1.27), privilege to be part
  • 22. of the organization (mean = 1.47), proud to be part of the organization (mean = 1.47) and sense of belongingness (mean = 1.47). The remaining 10 indicators are considered as frequent attitude of the respondents: loyal to the company (mean = 1.72), identify alternative solution (mean = 1.75), help co-workers (mean = 1.76), exert full effort (mean = 1.78), ability to cope with change (mean = 1.78), excited to work and energetic (mean = 1.87), high confidence over the decision of the management (mean = 1.89), recommend the company as good working environment to other (mean = 1.93), do the job well with high quality (mean = 1.94) and highly initiative (mean = 2.16). This means that employees of Apple Inc are loyal to the company, thus they foresee that they will stay in the company and in the service for a long time. Another important sign or indicator of motivation is the level or degree of effort that employees are exerting in their respective task or work. Based on the result, it shows that the respondents are exerting high level of effort in order to do their job in effective and efficient manner. The result also showed that the employees are energetic and excited to work. All of these enable the employee to do their job in high quality based on the standard of the company. Importance of Brand & Motivation to the Company Brands are a hugely important asset to a company and ought to be promoted through the likes of live brand experiences, according to an expert in the industry. Director and chief executive of The Centre for Brand Analysis Steven Cheliotis said that companies, particularly ones such as Apple, are using branding as their "major competitive advantage". He continued: "In a world where service is quick and product innovation is very swift, there's not much to differentiate different providers than the brand and the reputation." This notion was substantiated by the way certain organizations have not tried to grow their revenue so much as they've aimed to expand their brand, with many employing live brand experiences. The Company is developing due to its proper emphasize given on Motivation.
  • 23. Two factor Theory (Herzberg): According to Herzberg, two kinds of factors affect motivation, and they do it in different ways: • Hygiene factors. These are factors whose absence motivates, but whose presence has no perceived effect. They are things that when you take them away, people become dissatisfied and act to get them back. A very good example is heroin to a heroin addict. Long term addicts do not shoot up to get high; they shoot up to stop being sick -- to get normal. Other examples include decent working conditions, security, pay, benefits (like health insurance), company policies, interpersonal relationships. In general, these are extrinsic items low in the Maslow/Alderfer hierarchy. • Motivators. These are factors whose presence motivates. Their absence does not cause any particular dissatisfaction, it just fails to motivate. Examples are all the things at the top of the Maslow hierarchy, and the intrinsic motivators. So hygiene factors determine dissatisfaction, and motivators determine satisfaction. The two scales are independent, and you can be high on both. If you think back to the class discussion on power, we talked about a baseline point on the well- being scale. Power involved a threat to reduce your well-being, causing dissatisfaction. Hence, power basically works by threatening to withhold hygiene factors. Influence was said to fundamentally be about promising improvements in well-being -- when you are influenced to do something, it is because you want to, not because you were threatened. Influence basically works by offering to provide motivators (in Herzberg's terms).
  • 24. Chapter 4: Recommendations and Conclusion Recommendations Apple Computers is a global company. The achievement made by the company over the last couple of decades show the firms commitment to achieving global presence in all corners of the world. Since the company has a wide capital base, it has potentials to reach a wider market than it has currently achieved. It is recommended here that;  The Company should invest in high level business surveys in upcoming markets to expand its market base.  The Company should create opportunity to local professionals in their targeted regions who would help to actualize the real customer needs in such market.  The Company should produce customized products so that worldwide people can use them. It means they should produce such kind of materials that people can use easily and have fewer difficulties controlling the products.  The Company should also create opportunity for non-American intelligence to work here.  The Company should also act socially approved means not to waste resources, pay proper attention to mankind and to nature.  The Company should provide proper medical facilities to worker so that they can work here.  A process of using global communication by using different languages in the corporation should also be introduce by the company.  The Company should provide proper wages and adequate training to employees.  The Company should improve their products and the standard of the products; like increasing the sensitivity of iPhone and ipod, uses of strong visibility screen in Mac Pc etc. The Company should provide facilities to employees.
  • 25. Conclusion Motivation is very important in today`s business. The growth of technology has established the world as a global village and has given businesses a perfect opportunity for reaching to the previously unreachable markets. Apple has a well established capital base that ensures that it can reach to more regions than it has done. However the company still has a lacking of efficient workers. Besides the managerial skills of the companies manager should also be developed. The Motivation strategies and processes that the company has adopted, needs to be updated because global market is getting more and more competitive. The main rival of Apple Company is Sony Corporation. Also it has several other rivals such as in iPhone & iPad its main rival is Samsung and in Pc`s its main rivals are Microsoft and Hewlett-Packard. Motivation presents great potentials for the company since its products development depends mainly in Employees work. The company should hence work towards developing its Human Resources, Properly fulfill employs demands and remove its weakness in order to gain maximum output from them and raise its market value alongside with product value.
  • 26. Reference 1. From articles, 2. Internet 3. Assigned book 4. Own experience 5. Studying different journal and research papers. Bibliography  Studying a lot of cases discussed about the mentioned  Studying articles written on culture, politics, economic, demography and management styles of different countries  http://www.google.com.  http://www.applecomputers.inc  Principle of Management by Kreitner  Human Resource Management by Randall S. Schuller