SocialPerformance of Organizations
SocialPerformance of Organizations
The nature, structure, and types of products
Appleis an electronics company headquartered in the United States. Thecompany focusses on developing and selling software, computerelectronics, portable devices and personal computers internationally.The company had achieved tremendous success starting 2007 when itlaunched its most famous products i.e. the iPod, the iPhone and theiPad. It has about 500 stores across the world, which are responsiblefor the distribution, its products (Rothaermel,2015).The company updates its products frequently, especially its iPhoneseries. Currently, iPhone 6 is the most recent update from thecompany. Over the years, Apple has introduced an array of productswith the majority of them focusing on personal products. Theseproducts include the iPad mini, iMac, and iPad 4.
Applehas a decent organizational structure, which affords the rightfoundation for the company to spearhead technological innovation. Thestructure provides independent teams with the ability to innovateunique products such the Apple watch. The company adopts aspoke-and-wheel hierarchy. When Jobs headed the company, he took thefinal decisions on important matters touching on the organization andits products. However, in Cook’s reign, the company has transformedthe organizational structure (Rothaermel,2015).The new structure enables better collaboration between the differentsections of the company such as hardware and software developmentteams. The vice presidents of the company have more independence,which leads to the formation of a stifles organization. However, thepresident remains at the center of the decision-making process.
Additionally,the company has function-based as well as product-based groupings.The function-based grouping structure is derived from the functionalstructure of organizations. Senior vice presidents handle uniquebusiness functions assigned to them and report to the president.Senior vice presidents in the company are in charge of the iOS apps,the iPad and consumer products, with each product category having itssenior vice president. Therefore, the company addresses its needsdepending on the functional areas. The product-based groupings formthe company’s lower organizational tiers (Rothaermel,2015).This element is derived from the divisional organizational structurewhere many vice presidents report to the company’s senior vicepresidents. Therefore, the company can address specific aspects ofits wide range of products. This structure enables the company toestablish strong product and market controls. The leaders areempowered to make the best strategic decisions following the adviceprovided by numerous executives in the form of vice presidents andsenior vice presidents (Rothaermel,2015).
Two key factors in the organization’s external environment that can affect its success.
Asa global company, Apple is exposed to political factors not only inthe United States but also all over the world. The company makes morethan 50% of its sales in markets beyond the US. Additionally, thecompany outsources the majority of its manufacturing and assemblingactivities to countries such as China and South Korea (Khanet al., 2015).Therefore, any global political instability will affect thefunctioning of the organization both in the form of productdevelopment and sales activities. Political turmoil in the majormarkets will affect the level of sales because the economies will notfunction normally. In 2010, an explosion at one of the company’ssupply centers caused tremendous political pressure on the company.Again, the company’s fortunes depend largely on the relationshipbetween the United States and other countries (Khanet al., 2015).For example, in recent years, there have been tensions between the USand China as well as between the US and Russia. The majority of theseconcerns revolve around cyber security issues. The United States isskeptic about the use of Huawei products in the country because thecompany is Chinese. The tension between the US, China and Russia mayaffect Apple sales as governments move to implement their foreignpolicies (Khanet al., 2015).
Apple’smarket is concentrated among the world’s largest economiesincluding Japan, the US and Europe. In this regard, any economicslowdowns in these markets may expose the company to declining sales.As the major economies struggled to recover from the effects of the2008 global recession, the company struggled to maintain itsprofitability, therefore indicating its exposure to economicturbulences (Khanet al., 2015).Without proper diversification, economic slowdowns in Europe and theUS may bring the company to its knees. However, the company hasstarted focusing on emerging markets in Africa and Asia.
Five ways in which the primary stakeholders can influence the organization’s financial performance.
Tohighlight the ways in which primary stakeholders can influence thefinancial performance of the company, we can consider the primarystakeholders in the form of customers, investors, employees, andsuppliers. Customers can influence the financial performance of thecompany by dictating the nature of the desired corporate socialresponsibilities to be undertaken by the company (Gualandriset al., 2015).These stakeholders consist of individual as well as group buyers.Customers demand efficient and effective products at reasonableprices. Therefore, this will influence the cost of designing newproducts as well as the price of products. As customers demandhigh-performance products at best prices, they influence the profitmargins that the company can achieve. Additionally, customersinfluence the environmental protection practices and policies thatthe company adopts.
Employeesmay also influence the financial performance of the company sincethey are the second most critical stakeholders for the company. Theemployees at apple’s facilities determine the structure of employeeremuneration through their unions (Gualandriset al., 2015).Any changes in the employee remuneration structure will influence thecompany’s financial performance. Moreover, they determine thecompany’s ability to innovate new products to match marketexpectations. Therefore, the compensation, as well as CSR policies,should satisfy the demands of the employees, thus influencing thefinancial performance.
Investorsare the main stakeholders in the company. They influence thecompany’s financial performance through the policies they formulateabout employees, customers, and suppliers. Investors determine thenature of CSR activities and therefore determine the financialsuccess of the business (Gualandriset al., 2015).Moreover, investors determine the debt structure of the company andthus influencing the financial performance. Finally, suppliers caninfluence the financial performance of the company by determiningtheir profit margins and as well as the efficiency of the supplychain. An efficient supply chain will lead to higher profitabilityfor the company while demands for huge profit margins will reduce thecompany’s earnings.
Specify one controversial corporate social responsibility concern associated with Apple.
Themost notable CSR concern against Apple involved the company’sworkers in China. The company has contracted Foxconn Company toassemble its computers and mobile phones in China. However, therehave been various accusations leveled against the company regardingthe working conditions at Foxconn. The workers face serious safetyproblems, and some of them work for very long hours without takingbreaks. Some workers live in crowded dorms, which are not idealconditions for human habitation. In 2011, there was an explosion inthe company, which killed four workers and injured close to 20 in theprocess (Blandinget al., 2015)).These accusations have damaged the company’s reputation regardingthe rights of workers.
Blanding,M., White, H., & Watch, C. L. (2015). How China Is Screwing OverIts Poisoned Factory Workers.
Gualandris,J., Klassen, R. D., Vachon, S., & Kalchschmidt, M. (2015).Sustainable evaluation and verification in supply chains: Aligningand leveraging accountability to stakeholders. Journalof Operations Management, 38,1-13.
Khan,U. A., Alam, M. N., & Alam, S. (2015). A Critical Analysis ofInternal and External Environment of Apple Inc. InternationalJournal of Economics, Commerce and Management, 3(6),955-961.
Rothaermel,F. T. (2015). Strategicmanagement.McGraw-Hill.