Apple Inc.'s organizational structure and social performance analysis

Apple Inc.'s Social Performance

Apple is one of the most successful software and hardware companies in the world right now. It's range of products such as the iPhone, iPod, iTunes, iPad and laptops are popular the world over. The company is headquartered in Cupertino, CA and was founded by Stephen Wozniak and Steven Jobs. This report analyzes Apple Inc.'s social performance.

Description of Apple Inc.

Nature

Apple is primarily a hardware company (Apple.com, 2014). While the company produces some software, the bulk of its operations revolves around hardware. Apple is committed to offering its users and customers the best and most intuitive user experience by designing innovative services, software and hardware (Apple.com, 2014). Apple's business strategy takes advantage of the unique position it enjoys of being able to both design and create hardware, operating systems and software to give its users and customers solutions and products that are far superior to those of competitors and that integrate with one another seamlessly.

4.1 Social Factors

Social factors affect Apple just as much as they affect any company. Apple has taken great effort in understanding consumer expectations and behavior so as to deliver products that users want and need (Adamkasi, 2015). The macro environment consists of sociocultural factors that shape the conversation and preferences of the consumers Apple targets. As society adopts mobile communication and personal computing at scale, Apple is fast increasing its capabilities to develop high-tech solutions that meet the expectations of such a connected and demanding marketplace (Adamkasi, 2015).

4.2 Technological Factors

The evolving technological developments determine the technological trends in the industry and demands that players in the industry adopt them failing which competitors that are more agile will overtake them. Apple has been very good at taking advantage of the technological innovations that arise in the technological environment and also using them as a base to develop even superior solutions. The increasing use of web and mobile applications as well as the growth in cloud computing have shaped the company's strategy in the last decade. Users now want products that integrate easily with one another and Apple has been one of the drivers of the connectivity movement (Adamkasi, 2015). While factors in the external environment definitely shape Apple's policy, the company enjoys a unique position where it can also shape the conversation in the market place as it adopts, builds or abandons various features of technology (obsolete ones).

5 Stakeholders Impact on Apple Inc.'s Financial Performance

Stakeholders consist of the people who have an interest, share, or investment in an industry, business or organization (Thomson, 2015). Given the range of market segments Apple serves and the huge volume of market share the company enjoys, Apple has to listen to varied sets of stakeholders. These people include suppliers, distributors, investors, customers, employees, regulators and concerned government authorities all over the world. Apple has done its best to always take the views of its stakeholders during policy making and also when executing various corporate social responsibility initiatives (Thomson, 2015).

Ways in which stakeholders affect Apple Inc. are as below.

Customers always expect efficient and effective products at a good price (Thomson, 2015). The employees want to work in a friendly environment and be compensated fairly for their production (Thomson, 2015). Apple strives to avail these conditions to its employees as employees form one of the most important facets of the organization that directly determine productivity and capabilities. Besides the in-house employees, outsiders like distributors and suppliers also have an interest in the company. Apple has to ensure that they enjoy good compensation for their services (Thomson, 2015).

Apple also has to take care of its investors. Investors want their wealth maximized and to get reasonable returns on their investments. Apple has excelled in appeasing its investors as it is currently the most valuable company in the world by market capitalization.

6.0 Controversy Related to Apple Inc.

Apple has had to deal with a number of controversies. One defining concern was the explosion at the factory involving production lines for its iPad line. There have been two explosions so far and they have led to the hospitalization of several employees (Chen, 2012). While publicly, arguments have been made that the problem exists with Foxconn and not Apple, Apple still shares the responsibility for the safety of those who work on its products (Chen, 2012). Apple has to deliberately institute reforms for its supplier sets to avoid such accidents happening again in future. There is already concern about the state and conditions laborers work in in China. This concern will likely push brands like Apple that outsources production of its hardware to countries like China to take concerted efforts and extra measures to ensure the safety of employees of its suppliers. The Chinese government is also pushing for various reforms and regulations that seek to hold manufactures to account for occupational health and safety mishaps. China's massive population accounts for Apple's second largest market. China's middle-class explosion makes for a great target for Apple as it seeks to chase growth outside North America. It is in their best interest to listen to workers in those areas as the controversy and conversation spills over to the mainstream. It remains to be seen the extent of the actions Apple takes to ensure occupational health and safety of the employees of the companies it outsources production to.

7. Conclusion

Apple's social performance has been above par when compared to its competitors. It connects well with customers and enjoys a good relationship with both suppliers and distributors. Other stakeholders such as investors and the government that have a financial interest in the company in terms of wealth maximization and taxes have been rewarded by the company's continued growth. Apple remains one of the most reputable and recognizable American brands in the market right now. Apple's forward thinking leadership has made this possible by an organizational structure that is both effective and efficient. The company has been very good at anticipating the clientele's needs and requirements, and this led to its range of products gaining widespread acceptance and adoration in the market. Indeed, Apple enjoys a following that is almost cult-like in some market segments.