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Introduction of Apple. Inc.

Apple Inc.

Is an American multinational corporation, one of the greatest in the world that designs and
manufactures consumer electronics and computer software products? The company's best-known
hardware products Macintosh computers, iPod, iPhone, softwares including the Mac OS X
operating system, iTunes and other creativity softwares like iWork represent the face of the
music, phone, and computing industry. The company operates more than 250 retail stores in
sixteen countries and an online store where hardware and software products are sold.

Established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977, the
company was called Apple Computer, Inc. for its Rest 30 years, but dropped the word
"Computer" on January 9, 2007 to reject the company's ongoing expansion into the consumer
electronics market in addition to its traditional focus on personal computers. Apple has about
42,800 employees worldwide and had worldwide annual sales for the full-year results in 2013,
the company generated $171 billion in revenue and $37 billion in port. 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 2009.
1980s, the Years without Steve Jobs
After the success of the Apple II in the late 1970s and early 1980s, Jobs imprudent spending and
inexpert management of his company led the Apple board of directors to request that a more
experienced CEO run the company. The board and Jobs chose John Sculley, a former president
of Pepsi, to manage the rapidly growing company in conjunction with Jobs. But Jobs struggled in
his new role, causing the board to oust him in 1985. From that point on, Apple took hits in
popularity and lost considerable ground to Bill Gates growing juggernaut throughout the 1990s.
Sculley wasn't very successful.

Looking back, the Apple products that came out in the Jobs-less era theoretically should have
been very good for the company, but were either poorly managed or not marketed well enough to
gain ground. The Newton, launched in 1993, is a good example of a strong Apple product that
never found its following. The Newton was to be a revolutionary Personal Digital Device one of
the worlds consumer PDAs (Personal Digital Assistants). It had a touchscreen and a pen stylus
like todays smart phones, and almost no competition in the market. But it popped despite its
revolutionary design and Luxury pricing (two of the things Apple enthusiasts tout as reasons for

the iPhones success). One problem was that Apple allowed Motorola, Sharp, and Digital Ocean
to manufacture devices that ran the Newton OS and ultimately the lack of uniformity may have
been a turnoff to adopters.
1990s, The Coming back of Steve Jobs

When Steve Jobs returned to his company as CEO in 1997, he had learned from his mistakes, as
well as from Apple's mistakes over the previous decade. One of Jobs best decisions upon his
return was to stop cloning Macintosh computers. Since 1995, Apple had been allowing the other
companies to make Mac-compatible computers. The arrangement was cutting into Apple's
bottom line and diminishing the quality of Mac computers in the marketplace. The same story
applies to the Newton: With the OS being rented out to anyone who could create a device

Apple Inc. latest product


San Francisco Apple today introduced iPhone 7 and iPhone 7 plus, the best, most advanced
iPhone ever, packed with unique innovations that improve all the ways iPhone is used every day.
The new iPhone features new advanced camera systems that take pictures like never before,
more power and performance with the best battery life ever in an iPhone, immersive stereo
speakers, and wide color system from camera to display, two new beautiful finishes, and is the
first water and dust resistant iPhone. IPhone 7 and iPhone 7 Plus will be available in more than
25 countries beginning Friday, September 16.

iPhone 7 and iPhone 7 Plus dramatically improve every aspect of the iPhone experience,
reaching a new level of innovation and precision to make this the best iPhone we have ever
made, said Philip Schiller, Apples senior vice president of Worldwide Marketing. The
completely redesigned cameras shoot incredible photos and videos day or night, the A10 Fusion
chip is the most powerful chip on any smartphone while delivering the best battery life ever in an
iPhone, and an entirely new stereo speaker system provides twice the sound, all within the first
water and dust resistant iPhone.

New Advanced Camera Systems

iPhone 7 and iPhone 7 Plus take the worlds most popular camera and make it even better with
entirely new camera systems. The 12-megapixel camera includes optical image stabilization on
both iPhone 7 and iPhone 7 Plus, and a larger /1.8 aperture and 6-element lens enable brighter,
more detailed photos and videos, and a wide color capture allows for more vibrant colors with

more detail. iPhone 7 Plus features the same 12-megapixel wide angle camera as iPhone 7 and
adds a 12-megapixel telephoto camera that together offer optical zoom at two times and up to 10
times digital zoom for photos.
Coming later this year, the dual 12-megapixel cameras also enable a new depth-of-field effect,
using both cameras on iPhone 7 Plus to capture images, while sophisticated technology including
Machine Learning separates the background from the foreground to achieve amazing portraits
once possible only with DSLR cameras.
During the past few decades, research on organizational contingencies and opportunity
evaluation has propagated conceptual dogmas in ambivalence under the study of judgment.
Decision making is a process that includes intermediate steps between consideration and
implementation. One of the successful methods of monitoring organizational effectiveness is
accounting for profit achievement which serves as a benchmark for board members and top
management to acknowledge the managers attempts in accomplishing profitable deals. Other
means to measure organizational success include productivity, sales/services consumption,
market share, customer services, achievement of goals, and other holistic approaches, etc.
Behind every organizational success, there are strategic decisions that map organizations path in
accomplishing its goals as set by the board and top management level. If the decision making
quality is not sustained, it can lead to a chaotic organizational failure. Managers and consultants
need substantial amount of facts and figures before making any formal decisions and there is no
guarantee to make the right or perfect decision (Asaari and Razak, 2007) Nonetheless,
managers are responsible to make choices on daily basis to communicate their decisions with the
rest of the team member
Decision makers have a pressing influence on organizational performance hence this paper will
focus on the strategic decision making practices and their effectiveness toward the organizations
performance. This paper also aims to explore the correlation between strategic decision making
processes and organizational culture by analyzing the current literature in this context and by
evaluating the results of a comparative case study. It seeks to explore the various challenges
posed by an organizations culture to the implementation of its strategy. The process of decision
making is subjected to innumerable organizational cultural influences. Increasing number of
evidence suggests culture affects the strategy organizational decision making. The evidence
suggest that in a specific cultural context a particular form of participative decision making is
more appropriate than others (Sagie and Ayca, 2003 as cited by Koskinen, 2010)[2

Establishing a cross cultural research program with styles of complex decision making would
require cultural, theoretical and empirical conclusions for primary discernment. The three factors
that need to be discussed about cultural theoretical constructs that affect decision making are: 1.
Predictability of the organizational environment: The predictability of different spheres of the
environment impact the effectiveness of problem solving strategies and hence if the
organizational culture is completely well comprehended and predictable, the act of decision
making becomes easier due to procedural availability of solutions for all kinds of decisions.

Limited predictability on the other hand requires the modification of strategies employed to
address and solve issues and hence complex decision making becomes inevitable. Slow rates of
change may allow for knowledge based, analytic, and long term oriented strategies to develop
whereas an environment in a constant state of flux requires ad hoc and short term strategies
(Strohschneider, 2002)[3].2. Exposure: It is the extent to which a culture demands and facilitates
essential experiences in various areas of problem solving. Exposure is related to credibility of the
organizational environment but it also serves as a function of dominant value systems or the
availability of resources necessary to promote exposure (Strohschneider, 2002)
[3].Individualistic organizational cultures provide employees a strong locus of control in work
setting. It also facilitates an organizational environment of stronger self-reliance, independence,
and mutual trust. Hierarchical organizational culture, on the flip side, limits employee exposure
level to the experiences and hence the employees cannot gain a formal expertise in the domain of
problem solving.3. Power distance and organizational structure: Culture dimensions mould the
strategies employed to decision making. High power distance cultures are more likely to limit
the control span of individuals not on top of the hierarchy and thus hamper individual decision
making rather than promoting it(Strohschneider, 2002)[3].Conventionally, risk avoidant
decision makers need to pay close attention to potentially detrimental social connotations of
decisions.
2. Characteristics of Strategic Decision Making in Organizations
Decision making is a process by which managers recognize and address organizational issues
and attempt to propose a solution to them. The core purpose of strategic decision making
research is to find effective ways of problem solving in organizations. Strategic decision makings
are crucial in determining the direction of organizational developmental viability and help
organizations reshape their goals and missions. Some of the characteristics of strategic decision
making highlighted by Pearce and Robinson (1997 as cited by Asaari and Razak
2007), [1] are greater need for flexibility, increased risk, cost, profit potential and longer time
horizons. Organizational decision makings engage in synchronizing resource capacities with
viable outcomes. Strategic decisions have eminent resource propositions for organizations. These
decisions may employ acquiring further resources, organizing or reallocating others. Strategic
decisions are long term, deal with organizational future planning and intend to achieve
organizational growth. Strategic decisions should be followed by effective change management
as developing organizations are ever-changing. Organizational activities occupying strategic
decisions directly deal with organizations vision and hence are complex in nature. Strategic
decisions almost always involve risk and efforts can only be made to come up with risk
minimizing strategies. Vroom (2003)[4] emphasized that effective decision making is not only
dependent on the quality of decision but also the confirmation that the decision will have the
required support and commitment for an efficacious incorporation. Nonetheless, all strategic
decision making needs to go through a formal decision making process for optimal results.
3. Strategic Decision Making and Organizational Culture

An organizations cultural mesh is applied to conceptualize either interpretative frame of


reference (what an organization is) or functionalist frame of reference (what an organization
has). The cultural mesh manifests a significant range of the components that should be managed
directly for a successful strategic decision making, e.g. communication, changes in control
systems, incentives, and organizational structure (Heracleous &Langham, 1996) [5].
Organizations today are in dire need of getting through the process of regular scanning of their
environments and cultures. Organizations then also need to detect the potential opportunities and
threats and the entire process of decision making should be conducted in the environment of
openness, critical evaluation, and with avoiding groupthink. Evidence highlights the gap between
theory and practice in effective decision making and the influence of the culture and assumptions
of the decision makers on the process. Some of the major organizational culture issues identified
by Das and Tend (1999) [6] that lead to ineffective decision making or its implementation are: 1.
Limited alternatives reduced to decision makers that rely on intuitions than rational analysis.2.
Focusing on prior assumptions during the analysis process to avoid the perceived conflict.3.
Narrowing down the targets to focus on selected traits and outcomes.4. Insensitivity to outcome
probabilities by decision makers rely on subjective judgments rather than rational probabilities
of outcomes and tend to see problems as unique and thereby not relevant to outcomes of past
experiences (Korte, 2003) [7].5. Illusion of manageability by becoming overly optimistic about
the consequences by overestimating the level of control. Decision making strategies employed
by individuals are based on loosely defined rules (Korte, 2003) [7]. At a strategic level,
sometimes the nature of the problem is so complex and ill structured that the decision makers
need to rely on prejudgments which vary from strongly held philosophical beliefs to more
mundane cause and effect reasoning. The efficiency with which the organization makes decision
makes the difference between success and failure.

Business operational plan of Apple Inc.


Strategic plan sets up the business plan of a company while business plan in turn establishes the
business operation plan. Operational plan is the key to run the entire business of company.
Operational business plan covers the all areas of company including the finance, manufacturing,
internet, operations, R&D, human resources and marketing. Apple Inc. was known because of its
lenient business thinking. Apple Inc. has the design, marketing and manufacturing services.
Company develops designs and markets the musical players with important accessories. The
business of Apple Inc. is managed on geographic basis. There are five operating segments of
Apple Inc. such as America, Europe, Japan, retail and others. In US, Canada, UK and Japan
Apple owned stores are currently operating.
Like other organizations Apple Inc. all the departments are formed by the placing the similar
functions in the groups. As described before the main divisions of Apple Inc. human resource,
finance, marketing and productions are adopted by the functional approach. In each division the
functional subsystem and departments create hierarchies. Operational management is linked with
the production division's activities.

The people in Apple Inc. are grouped together on the basis of their expertise and resources. It
enabled the Apple Inc. to learn from its functions. The present structure in Apple Inc. has focused
upon those activities which reduce the costs and increase the flexibility in its operations. The
managers in Apple Inc. have a greater control of the organizational activities and avoiding the
tall and other several hierarchies. A relative flat structure of the Apple Inc. has decentralized the
authorities and responsibilities of its management. The managers and employees at lower levels
are encouraged to take part in fostering the company's strengths. The advantages of
decentralization are numerous i.e. enhancing the planning, decision making and control
processes. Apple Inc. has focused on its marketing operations on the major business areas like
iPod and iTunes. The marketing department shows a great responsiveness to the outside world.
The finance treasury division of Apple Inc. provides the financial policy to company. This
department is responsible to handle the international capital transactions of company, liquidity
guaranteeing and risk management. In Apple Inc. the role of the financial manager is crucial for
the strategic management. The capital required for the R&D is raised by the Finance division
which maintains the innovation position of the Apple Inc. Internal problems of Apple Inc. were
in the form of the sale force accessing directly to corporations. Apple Inc. relied on the 300
manufactures while IBM had 6000 to 7000 direct salesman. However the Apple Inc. has focused
to establish more sales staff. Many issues concerning to these sales person were noted regarding
the prices of products. Apple Inc. has also marketing problem as it failed to communicate the
Macintosh's business image in market. The fact that marketing strategy was not according to
requirements and did not make it more famous in market; it also did not focus upon the
technology. Products are manufactured on the basis of customer's needs. Apple Inc. needed the
fundamental importance of getting close to market.

Apple Inc. possessed the organizational structure which too had the management problems. The
production and shipment problems exist in Apple Inc. as the IBM its supplier experienced the
manufacturing problems and delayed the shipment of various products. In a market the speedy
delivery of products is critical. Due to the Apple's key dependency on other companies put it at
the competitive disadvantage. Human Resource in Apple Inc. has administrative tasks such as
meetings, conferences, special projects and seeks the solution for the fast paced store
environment.
Managerial qualities and resources necessary for effective business operation planning
The issues in quality of products attracted the attention of business. The management concept is
rendered by the wave of successful entrepreneurship. Top managers are committed to make
decisions before communicating fully with all those who are involved in it. When subordinates
ask for the decision the top managers think about the organizational response towards the
decision for strategic plan. Ways of decision making enhance the business operations and
credibility throughout the organization Apple Inc. People love to purchase the products of Apple
Inc. because of power, easier way to use and reliability. The business managers at Apple Inc.

ensure the delivery of the products to companies according to their requirements. Business
customer contacts the business managers and long term relationships are established between
them (http://www.apple.com/jobs/us/retail.html#business). Apple Inc. management has the
ability to sell its products having no supply chain system. It earn the revenue by the selling the
iPod devices and Mac computers. Its iTunes virtual stores are generating the revenue more than $
1 billion every year (David, 2010, p: 72). The managers at Apple Inc. face the incentives of using
the strategies to control the earnings in many traded companies. The managers are allowed to
purchase the stocks. In this way the staff at Apple Inc. is encouraged (www.sec.gov). The
management system of Apple Inc. has policies and procedures, responsibilities and roles of its
managers. For example a best health management system is maintained by the concerned
managers to ensure the safety and health of its employees. If any inadequacy is seen in this
system then top managers adopt the corrective actions including the verification through audit
processes. Apple procurement managers are responsible to manage the business relationship with
suppliers and coordinate the Apple's supplier responsibility auditor.

Apple Inc. has five divisions to manage the products and marketing departments of the company.
These five divisions are responsible to evaluation and manufacturing of the devices, software and
hardware of computer system. The four support divisions also work to handle the marketing and
post-sale products. A new position of Chief Operation Officer was created by Scully to centralize
the operations and involving the senior management in the daily business decisions (Annual
Report, 1988). Human Resource (HR) is responsible for the safeguarding the most valuable
assets of the Apple Inc. It handles the many programs of the company to achieve the company's
goals. Human resource at Apple Inc. is also responsible to reach at the needed resources. The
Apple Inc. has six important valued creation functions including the marketing, R&D, finance,
Human resource management, information systems and operations and logistics. The chain of
activities required to transform the inputs into outputs are primarily concerned with actual
design, manufacturing, delivery, marketing of products and customer support activities. The
ultimate task of the R&D resource at Apple Inc. includes the new innovation and use of
technology which meet the customer's requirements (Hill & Jones, 2004). Information system at
Apple Inc. is an important asset which provides the business assisting facility. For the success of
the business operation plan the information system is a core to keep the business run online
without any obstacles. Other valuable resources which have potential powers for the customers
as well as the management at Apple Inc. include the servers which distribute the information
about Apple's products and create new internet resources for the mailing list, online feedback and
further open the communication lines.

From the above discussion it can be concluded that Apple Inc. is a well-known development and
business company of the world. Its success lies in its business operation plan which indeed
depends upon the various necessary actions taken from the design of the product to sale of the
product.