The Social Performance of an Organization
The social performance of an organization covers all business operations that have an impact on the community's welfare in terms of improving the environment, reducing poverty, and fostering a sense of consumer empowerment. Government regulations mandate the management of organizations handle their social performance with the same level of care that they manage their financial performance. Understanding how the organization's social performance affects its business is important since its success or failure directly affects all of its stakeholders. Therefore, organization management is supposed to involve all stakeholders to ensure that the company can achieve the common objective of the organization (Zaccaro, 2001).
The Nature, Structure, and Types of Services or Products of Apple
Apple Company is an American international technology organization with its headquarters in Cupertino, California. The company was founded by Ronald Wayne, Steve Wozniak, and Steve Jobs in April 1976 (O'Grady, 2009). Apple Incorporation activities are production, designing, development, and marketing software, media communication devices, mobile communication devices, personal computers, laptops, and digital music players among other applications and services. The core products that are provided by the company are both in term of hardware and software. For hardware, they include the HomePod smart speaker, the iPhone Samrtphone, the iPod portable media player, iPad tablet computer, the Apple TV digital media player, the Mac personal computer and the Apple smartwatch among others. The company software includes the iTunes media player, the iOS and macOS operating systems, the Safari web browser, the iLife and iWork productivity and creativity suites. The Apple online services are Mac App store, the iTunes Store, iCluod, Apple Music, and the iOS App Store (O'Grady, 2009).
The Success Factors of Apple and its Competitive Advantage
The corporate has succeeded in the electronics and software industry because it has successfully penetrated the market through the production of products and services that are consumer friendly compared to those of its rivals which does not match the consumer's preferences. Also, the company technicians and designers understand consumers taste and preference very well, and this enables Apple's products to pick very fast whenever they are introduced in the market. Furthermore, the industrial design is one of the significant key pillars that have enabled Apple to create consumer confidence. Also, the hardware and software engineers of the company work vigorously since day one when they are developing a new product (Al-Laham, 2011). Also, Apple keeps itself at least three years ahead of its major competitors like Samsung. Also, the company enjoys a competitive advantage because many firms in the world depend on the Apple innovation so that they can copy their features. Apple also provides its customers with efficient, unique, in-store better options and better customer service experience. The company offers a variety of services and products, and also its sales staffs have excellent communication skills that please the customers. According to the research, about 51% of people who purchase Apple products are new clients (Al-Laham, 2011). The company controls the market because it has the most experienced and skilled team of sales staffs and this contributed to Apple's success.
Two Critical Factors in Apple's External Environment That Can Affect Its Success
1. Political - The Company gets its supplies from different nations outside America and also makes enormous significant revenue from many countries, especially in Europe and Asia, and this exposes Apple to many political problems. Any political instability from countries where the company gets its raw materials and where it makes significant sales has negative effects on its performance (Campbell, 2005). Also, apart from political instability from other countries, the company also experiences political pressure in the U.S. For example, in 2010, the American government abolished importation of various products, which Apple Incorporation utilized to manufacture its products like iPhones and this adversely affected the company operations, since it was forced to restore those products (Jenkins, 2016).2. Economic - Any instability effects on the economy have negative consequences for the operation of the Apple Incorporation. For example, the global recession adversely affected the company and this lead to fragile sales because the customers had less income at their disposal and this limited them from buying luxurious products and only purchased essential products. Apple products are sold in different nations all over the world, and this means any fluctuating exchange rate in these countries have the capability of affecting the performance of the company. Moreover, the changes in taxation policy in different countries affect Apple, and this can trigger an increase in the price for the company products and services and this discourage consumption (Jenkins, 2016).
Ways in Which Primary Stakeholders Can Influence Apple's Financial Performance
1. Customers - These are the most critical stakeholders of Apple because they are the ones expected to purchase the products. Customers can affect financial performance by buying products from Apple competitors. The main concerns of the customers are the price of the product in terms of affordability, quality and value, and also services and warranty provided to the customers after buying Apple products and even transparency and honesty of the company. Apple addresses customer concerns by putting them first in their decision making because they understand that customers are a vital determinant of the company financial performance (D'Anselmi, 2017).2. Employees - After customers, workers are the second key stakeholder priority in the company's implementation of corporate social responsibility. The core interests of the workers are a good compensation system and a career development program. Workers are significant as they directly determine the corporate human resource ability to design, develop, and innovate profitable products/services. The company has addressed the interest of workers by implementing a good compensation system and providing a healthy working environment (Jenkins, 2016).3. Investors - They are the key stakeholders that determine Apple's corporate social responsibility programs within the industry, and they can influence the financial performance by withholding investments. Apple investors are more interested in maximizing their returns on the investments. Apple addresses the concerns of investors by conducting an excellent financial performance. For example, Apple has satisfied the interest of investors by being the most profitable corporation in the world (D'Anselmi, 2017).4. Suppliers - Suppliers are other major stakeholders that facilitate Apple's corporate social responsibility. Therefore, they influence the company's financial performance through an increase in the price of the materials or delaying remittance of materials. The primary interests of the suppliers are secured contracts, good working ethics, and proper negotiation mechanisms. The company addresses suppliers' interests through the Apple Supplier Code of Conduct (D'Anselmi, 2017).5. Government - The government is another major stakeholder that contributes to Apple's corporate social responsibility efforts. Therefore, changes in government policies, regulations, and laws have direct effects on the financial performance of Apple. For example, when the government of the U.S abolished importation of various products that were used to manufacture iPhones, this policy affected the profit of the company that year due to increased costs that were used by the company to restore those products. Apple has addressed government interest by complying with the policies, regulations, and laws as stipulated by the government (Jenkins, 2016).
Controversial Corporate Social Responsibility Concern Associated with Apple
Corporate Social Responsibility requires an organization to uphold behaviors which upgrade the society by giving back to the community through philanthropists' means, observing environmental laws, and creating employment and observing employment laws among others (Sims, 2003). The controversial working method of Foxconn in China, which is one of the Apple's significant suppliers, violates corporate social responsibility. Apple has been dealing with Foxconn despite knowing that this company violates human rights by providing limited safety precautions and creating indecent working conditions within the workplace. For example, in the year 2012, an explosion took place in Foxconn, and it injured several workers and killed four employees that were working in the iPad sector. The company was coercing its workers to utilize poisonous chemicals to clean the screens of Apple products. The employees of this company are always overworked many hours and are not compensated for overtime. Also, there are many cases of suicides and disability from this company (Jenkins, 2016).
Conclusion
Apple Incorporation's success in the social performance of an organization is evident in how the management of the company has succeeded in producing products that are of high quality and ensuring that the company remains profitable. The company regards its customers as the primary stakeholders that determine its financial performance, and this helps in addressing all the customers' concerns. Moreover, the company also has a good working relationship with its other stakeholders like employees, investors, suppliers, and the government. However, Apple has been very reluctant to ensure that its key suppliers like Foxconn observe the Apple Supplier Code of Conduct strictly, and this has adversely affected the company's social performance image (Gabby, 2001).
References
Al-Laham, A., & Huth, S. (2011). Strategic Repositioning of Apple Inc. Fallstudien zum Internationalen Management.
Campbell, D., & Craig, T. (2005). Organisations and the business environment. Oxford: Elsevier Butterworth-Heinemann.
D’Anselmi, P., Chymis, A., & Di, B. M. (2017). Unknown Values and Stakeholders: The Pro-Business Outcome and the Role of Competition.
Gabbay, S. M., & Leenders, R. T. (2001). Social capital of organizations. Amsterdam: JAI.
Jenkins, W., & Williamson, D. (2016). Strategic management and business analysis.
O’Grady, J. D. (2009). Apple Inc. Westport, CT: Greenwood Press.
Sims, R. R. (2003). Ethics and corporate social responsibility: Why giants fall. Westport, CT: Praeger.
Zaccaro, S. J., & Klimoski, R. J. (2001). The nature of organizational leadership: Understanding the performance imperatives confronting today’s leaders. San Francisco: Jossey-Bass.
