Apple's Business Analysis
Apple is one of the biggest brands in the world and with that recognition come a huge sense of responsibility. “Apple Inc. is engaged in design, development and marketing of personal computers, media devices, and portable digital music play. The company also sells a variety of related software, services, peripherals, networking solutions and third party digital content and application” (Datamonitor, 2012, p. 2). The strategic initiatives taken by Apple on its brand relative to organizational and operational adaption to changing markets will be reviewed. An explanation of how recent economic trends are influencing the business will be given. Strategies on how the company has used or could use for adapting to changing markets, such as an economic downturn or recession will be listed. Tactics will be given on how Apple has implemented or could implement to achieve its business goals. The role of human resource management plays a major part in Apple’s achieve its business goals.
Adapting to Changing Market
According to Nickels, McHugh, and McHugh (2010), “The Internet has created whole new opportunities, not only to sell to customers directly but also to ask them questions, and provide them with any information they want.” Apple has changed along with the market by making it easier for customers to purchase items online and for customers to give feedback on their items and services. “To win market share, companies must coordinate the efforts of their traditional departments and their Internet staff to create friendly, easy-to-manage interactions” (Nickels, McHugh, and McHugh, 2010, p. 219). Currently, a person can set up an appointment to receive service in the Apple store online. When the customer gets to the store at the designated time, the customer will receive service. This tool makes it easier for the customer; it is more efficient because a customer does not have to waste time waiting around on someone for service. Along with the convenience of customers setting up appointment, customers can also purchase music through their iPhone and iPad. This eliminates trips to the store for purchasing music; this tool was designed for the customer’s convenience.
“To empower employees, firms often must reorganize dramatically to make frontline workers their most important people. Restructuring is redesigning an organization so it can more effectively and efficiently serve its customers” (Nickels, McHugh, and McHugh, 2010, p. 219). Currently, most companies are going to this procedure where employees are the frontline workers. The employees are familiar with everything that is going on in the workplace; they know what the problems are and what best work for them.
According to Nickels, McHugh, and McHugh (2010), “Business growth led to economies of scale. This term refers to the fact that companies can reduce their production costs by purchasing raw materials in bulk.”
Economic Trends
“A major part of the United States’ business success is due to an economic and social climate that allows most businesses to operate freely. People are free to start a business anywhere, and just as free to fail and start again. That freedom motivates people to try until they succeed because the rewards are often so great. Any change in the U.S. economic or political system has a major influence on the success of the business system” (Nickels, McHugh, and McHugh, 2010, p. 30).
The economic trends have affected Apple over the years. Initially the Apple computer was very pricy, over time the company has come down on the price to make it affordable to the general public. With the recent economic recession in 2009, prices of the iPod and iPhone have dropped because fewer people were buying the product. The company introduced .69 cent iTunes to make the sales increase, attracting more customers to the iTunes site.
“After emerging from the global recession with increased sales and profits in fiscal 2010, Apple
