Lauren Klaassen

MGT 499
M-W 2:00-3:15
10/23/19
Organization at Apple
Question 1)
The organizational structure at Apple is a functional structure. The departments are divided
based on their functions and the vice president of each functional department report to the
CEO weekly to review the company's strategy, operations and updates on product
development. The industrial design group looks over the new product development, its
appearance, and its design. They work in collaboration with the hardware and software
engineering groups for developing the functions and features in the new product to intrigue
customers to buy their phones vs competitors. The product development process is a cross-
functional effort of different groups working in synchronization and collaboration. Top
management controls the functions and the tasks are given to individuals who are called
directly responsible individual or DRI in the company. The actions to be performed at the
company are allocated to one DRI who is accountable for its completion. The culture of the
company is enigmatic. The material of what should reach the outside world and what should be
within the company is tightly monitored. Teams are made for the new product development
and none other than the team is told about the new product and its specifications. The building
where the teams are collaborating on new product development is tightly controlled by security
measures.

Question 2)
How Apple’s organization is run and controlled is so unique. Having one chief executive board
that operates together flawlessly to design brands that consumers will buy and make a verdict
on how the corporation can move forward puts them above anyone else. Apple is known for its
innovation and continuously changing environment to adapt to customer requirements and
needs. With the use of their robust hardware and performance software incorporated in each
phone intrigues customers to keep coming back and purchase the newest and paramount
phones. Apple uses a functional structure approach compared to many competitors who use
divisions. Meaning, “the organizational structure is built upon the division of labor within the
firm, with different functions focusing on different tasks” (Pg. 394). This then allows Apple to
have more control and specialization for managers to ensure leadership vision portrays
correctly to reality.

Question 3)
Apple is trying to become a top leader in the function-based grouping where there is delegation
of authority at the upper-tier based on functions. Where they then manage business needs for
the specific functional areas. They are also exasperating to convert into a less stiff across the
company within the software and hardware teams. Apple does, however, have a strength in
this type of organizational structure which has helped them to have a stronghold over the
organization. A weakness that portrays is work being done in a more effective manner rather
than control. If unhappy employees arise, then they can go running around leaking information
and making the new product development strategy become a failure. The functional structure
can also become a failure is anyone in the group does not perform their set of functions
efficiently.

Question 4)
Changes that Apple should make to its organizational structure would be to advance cloud
services, Apple Music and the App Store. They simply are not set up to excel in service releases
but rather ties into hardware releases, integration and perfection which results in too many
services being overbuilt and more difficult to reuse elsewhere. However, the root of their
problems is the lack of accountability. As long as the money flowing and the captive customers
coming back, does not matter to them as much as it should because people are going to keep
returning and use Apple products. The solution to all these problems Apple faces is to start with
the question of accountability and work backward. Apple’s services need to be disconnected
from the devices that are core to the company, and the managers of those services need to be
held responsible. Apple will not fix the services it already has or delivers on the promise of the
services its hardware might yet enable unless a new kind of organization is built around these
services that have new ideas different from Apple. They simply do not need to make great
products because they want to make great products; they make great products by crafting
environments where great products are to be constructed.