Businesses operate in the society
The association of a company and the community leads to a dynamic relationship. Enterprises strive for a symbiotic relationship which can benefit all stakeholders and avoid conflict. With the social performance of organizations becoming an element of success, it is essential to analyze companies such as Apple Inc. to understand its operations.
Overview of Apple Inc.
Apple Inc. is a global company that focuses on the development and sale of computers, software, and mobile devices. IPhone, MacBook and the iPad are among the popular products offered by the company. Likewise, the iOS and iTunes are promising software provided by the company. The corporation has employed over one hundred and twenty thousand employees who work in different outlets and regions (Gupta, 2013).
Company Structure
At Apple, a hierarchical organizational structure is used. The system was instituted by Steve Jobs who was a founder to promote innovation and creativity. As Tim Cook took the position of CEO in 2011, there was an emphasis on a decentralized production system. The technique involves the unitary production of a specific product. It is based on this structure that the company achieves efficiency in the manufacturing process. The following is the organizational structure of the enterprise:
Under the CEO
There are the senior vice presidents, Chief Design Officer, Chief Operating Officer, and vice presidents. The vice presidents of the company are tasked with responsibilities such as communication and retail. On the other hand, product designing and operations are coordinated by the Chief Design Officer and the Chief Operating Officer. The hierarchical system employed in the company is beneficial. The system promotes effective management. Each department in the company is allocated a leader who oversees all operations and solves any arising issues. The organizational structure of the company also provides employment advancement opportunities to workers. It is from this perspective that employees are motivated as the company safeguards career growth and development. However, it is possible to point out some limitations in the company's structure. Hierarchy leads to a vertical communication system. Often, this inhibits interaction in the enterprise. The compromise on communication prevents innovation and creativity which can be used to create improved solutions thus leading to competitive advantage. From a different perspective, hierarchy contributes to the inability of leaders to realize the challenges faced by employees in the company. The occurrence contributes to unrest in the company which may be manifested as strikes and protests. Unresolved concerns hurt the company's productivity (Jacob, 2013).
In the hierarchical system, decision making is the responsibility of the board of directors and the CEO. The system fails to consider the input of low-level employees who have an accurate perception of business operations. Therefore, a wrong decision by the administration is a possibility which may affect productivity.
External Factors
At Apple, it is possible to outline external elements that may affect the success of the company. High competition characterizes the modern technological industry. New companies are developing innovative products that are appealing to the market. This trend necessitates continuous innovation and improvement by Apple to safeguard its market share.
The constant increase of operational cost is a factor that may threaten the success of Apple Inc. In America, there has been an influx of the amount paid as salaries to employees who are striving for better living standards. The increased operational cost reduces the profitability of the company which may threaten its viability in the long run.
Stakeholders
Stakeholders are individuals or parties affected by the activities of a business. Stakeholders are crucial in an enterprise as they facilitate various aspects such as production and sales. The varying roles of stakeholders lead to their influence on profitability.
At Apple, suppliers constitute one of the primary stakeholders. Suppliers provide raw materials used in the production of electronics. A disruption in the supply of raw materials would affect production and sales thus leading to low productivity in the company.
The government is a primary stakeholder. Before the commencing of business operations, the government has to approve an enterprise. The government also acts as a regulatory body which formulates rules and regulations. At Apple, a decision by the government to impose higher taxes would contribute to increased operational cost and a reduction in profitability.
Employees of Apple Inc. are among the primary stakeholders in the company responsible for the production phase. Employees having limited knowledge and skills may contribute to the manufacturing of inferior products and the wastage of resources. The inferior products may not be accepted in the market thus affecting sales and productivity. The human aspect of employees makes them emotional. Strikes and protests in the organization lead to downtime. During this phase, manufacturing is affected, and there is a decline in sales.
The society constitutes the market for products. A negative reception of the company leads to a loss of market share. The unavailability of demand inhibits the company's sales capability thus affecting financial performance. The size of the market also influences sales. A large population signifies higher demand and augmented sales.
The management of the company serves as one of the primary stakeholders. The administration is responsible for all business-related decisions. A qualified administration team will ensure correct decisions are made concerning marketing, advertising, and customer service. It is from this perspective that profitability in the company can be enhanced.
Corporate Social Responsibility
Corporate Social Responsibility (CSR) is a concept that advocates that a company should positively contribute to the society (Tuan, 2012). CSR initiatives attest that enterprises are not only profit-oriented but they also safeguard the welfare of the community. Despite the simple objective of CSR initiatives, controversy is a common phenomenon. Individuals are often doubtful of the intention of a CSR initiative as many individuals believe they are pursued to benefit the company. Apple has a production plant in China where labor cost is minimal. However, there has been a public outcry that the company is not concerned with the welfare of employees. At the plant, most employees work for long hours which affects their health. The employees do not have health insurance and receive meager pay. Accommodation at the facility is strained which manifests as overcrowding and poor sanitary conditions. The situation in China leads to skepticism as Apple has not pursued CSR initiatives to improve the living standards of the local population (Apple Supplier Workers Describe Noxious Hazards at China Factory, 2018).
Conclusion
The research has been instrumental in understanding the dynamics of the society and the business. It has become evident that the social perception of a business affects profitability. From the evaluation of Apple, the investigation has showcased the relevance of organizational structure in attaining business prosperity. As depicted above stakeholders such as employees and the management should be adequately addressed as they influence the performance of a company. On the other hand, the investigation portrays that CSR initiatives should have a focus on promoting the welfare of the society rather than taking a profit-oriented approach.
References
Apple Supplier Workers Describe Noxious Hazards at China Factory. (2018, January 17). Retrieved from Bloomberg: https://www.bloomberg.com/news/articles/2018-01-16/workers-at-apple-supplier-catcher-describe-harsh-conditions
Gupta, A. (2013). Apple, Inc.: Where Is It Going From Here? Journal of Business Case Studies (JBCS), 215.
Jacob, W. (2013). Inside Apple: The Secrets Behind the Past and Future Success of Steve Job's Iconic Brand. Business Perspectives and Research, 55-56.
Tuan, L. T. (2012). Corporate social responsibility, ethics, and corporate governance. Social Responsibility Journal, 547-560.
