MGT309_A1SIME

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1 Assignment 1 Analyze the Organizational Structure of a Company Assignment 1 Nicole Sime Principles of Management and Organizations, National University MGT309 Principles of Management and Organizations Professor Steven Schaefer January 14, 2024

2 Assignment 1 Analyze the Organizational Structure of a Company The company I chose to analyze was Apple. Apple is a global technology company. In 1976, three individuals, Steve Jobs, Steve Wozniak, and Ronald Wayne, created Apple with the purpose of selling Wozniak's hand-built Personal Computer known as the Apple 1. The Apple 1 was supplied as a motherboard that had a CPU, RAM, and rudimentary textual-video chips. It didn't have a built-in keyboard, display, casing, or any other Human Interface Devices at the time. Ronald Wayne opted to depart the firm only a few weeks after it was created. Wayne then accepted a $800 check, which would have been worth nearly $72 billion 40 years later. Wayne was the one who hand sketched the initial Apple logo, which was later replaced with Rob Janoff's bitten apple emblem in 1977. Apple II is then released in April 1977. The Apple II series had an open system, which meant that all critical design information were made public. This design approach was eventually duplicated and commercialized as the IBM PC. The Apple II was the first widely deployed microcomputer. At debut, it cost $1,295 USD (Faizal, 2019). The type of organizational structure that Apple uses is functional organization. What exactly is organizational structure? While managers run their large corporation through their own organization structure, an organization structure is a framework that comprises of activities such as task allocation, coordination, and supervision that are aimed towards the fulfillment of organizational goals. “A functional structure groups employees into different departments by work specialization. Each department has a designated leader highly experienced in the job functions of each employee supervised by them. Most often, it implements a top-down (centralized) decision-making process where department managers report to upper management. Ideally, leaders of different teams communicate regularly and coordinate their strategies while lower-level employees have little idea of the processes taking place outside their department”

3 Assignment 1 (Olmstead, 2022). In other words, a functional organization divides people into departments based on their work specialty. Each department has a designated leader who is well-versed in the job tasks of each individual they manage. There are two types of generic organizational structure models: mechanistic and organic. Let us now examine the organizational structure of Apple Incorporated. This is determined by four key contingency variables: strategy, size, technology, and environment. First, I am going to go over the strategy. To compete with other large corporations like as Samsung, Motorola, and Google, Apple Inc. employs a differentiation approach. Apple Inc.'s differentiation strategy is to have its own OS X and iOS operating systems as leading products, as noted above. For example, the iPhone uses iOS, which is exclusive to Apple Inc. and is very different from its competitors, such as the Android operating system. (Podolny & Hansen, 2020). The Android operating system is used by the majority of mobile firms, including Samsung, HTC, Sony Ericsson, and LG. Apple Inc. provides complex technology to the globe, however ideas or technology during product manufacture can easily leaked if Apple Inc. does not have an appropriate framework to organize Apple Inc. Size is the second contingency variable. According to a September 24th, 2011, study, Apple Inc. has 60,400 permanent full-time workers and 2,900 temporary full-time employees globally. The huge number of Apple Inc. workers, which exceeds 2000, is considered a large company, and it has more specialization, departmentalization, rules, and regulations than a small business (Johnson, n.d.). The third factor is technology. Technology is the process of converting a company's inputs into outputs more effectively and efficiently, or in other words, the way activities are completed utilizing tools, equipment, procedures, and human knowledge. We can also see from

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4 Assignment 1 the organizational structure that Apple Inc. has a high level of departmentalization. In an assembly-line system, mass manufacturing is employed to manufacture a huge number of uniform goods. Workers become increasingly reliant on one another as the product progresses from stage to stage till completion. The environment is the last but not least. Apple Inc. is a player in three major digital media markets: personal computers, mobile communication devices, and services (iTunes). The media market is a dynamic environment. The technology it employs in this context must be constantly developed and updated. If Apple Inc. does not continue to improve and update its technology, it will slip behind its competitors. The iPhone product line will be a straightforward and easy method to grasp this. It is extremely competitive, with numerous major, well-funded, and experienced rivals. Apple Inc. organizes its company through geographical territorial departmentalization. The company's operational sectors are departmentalized internationally, with 393 retail outlets in the United States, Japan, and Europe. Apple Inc., on the other hand, has knowledgeable salespeople who can help the company's sales. Apple Inc. also demonstrates functional departmentalization in the company by separating the activities into different functional groups. For instance, Craig Federighi who is the senior vice president of software engineering is responsible in the development of Apple Inc.’s software with his team members. The major theory from lesson that applies best to Apple inc. is, transactional leadership. This is because Steve Jobs exemplified transactional leadership. He guided people' efforts through duties and organizations. Steve instilled in his staff a strong drive for hard work, a common passion, and a clear goal (“Transactional leader,” 2021). Another reason why I believe Apple Inc. is a transactional leadership company is they listen to their consumer and make

5 Assignment 1 products that will yield them results in every age group, whether it’s from young people to elderly people. In conclusion, the organizational structure impact performance because it reflects on how the company is performing. By being a functional organizational company, Apple Inc. can have different people focuses on different aspects of the company and the product which in turn makes the company better. One of the recommendations I would have for Apple Inc. would be to not rush when taking out new products. This is because a lot of the time these new products have too many bugs that I believe could have been avoided if they took more time before sending their products to the market.

6 Assignment 1 Reference: Faizal, F. (2019, January 8). The history of Apple . Feedough. https://www.feedough.com/the- history-of-apple/ Johnson, K. (n.d.). The Innovative Success that is Apple, Inc . Marshall.edu. Retrieved January 15, 2024, from https://mds.marshall.edu/cgi/viewcontent.cgi?article=1420&context=etd Olmstead, L. (2022, March 15). 7 types of organizational structures +examples, key elements . The Whatfix Blog | Drive Digital Adoption; Whatfix. https://whatfix.com/blog/organizational-structure/ Podolny, J. M., & Hansen, M. T. (2020, November 1). How Apple is organized for innovation. Harvard Business Review . https://hbr.org/2020/11/how-apple-is-organized- for-innovation Transactional leader. (2021, February 17). JMW Consultants - Empowering Leaders to Change the Future . https://jmw.com/traits-of-a-transactional-leader-big-apple/ (N.d.). Organimi.com. Retrieved January 15, 2024, from https://www.organimi.com/organizational-structures/apple/#:~:text=Apple%20uses%20a %20company%20structure,the%20different%20areas%20of%20expertise .

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