Globalization is worldwide integration and development. There are few companies that can speak to that term and even though they are not my favorite Apple Inc. (Apple) is one of those companies. They have become such a global phenomenon that if you say “Apple” people do not even ask “the fruit or the company” they automatically assume you are talking about the company provided that the context is there. Since its inception in 1976 Apple has developed into a global brand and has had to endure various challenges when trying to accommodate and develop that global brand and demand. Apple mission statement reads: Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. Apple is a company that has become a pioneer in advancing technology and keeping up with the ever changing life cycle that is computers and phones. They have developed new programs, applications, and software to make sure that they remain on top and are not impacted by the changes.
How globalization and technology changes have impacted Apple
Technology is the application of science knowledge for practical purposes like the production of goods and services both in large and small scale. When you couple technology with globalization you have a billion dollar business. Although Apple is a pioneer it has been not been invisible to the changes that occur in the global market. Apple has had many rough patches over the course of its life. Globalization is the process by which the Apple Inc. will be able to integrate globally as a result of exchange of world opinions, products, concepts and other aspects of culture (Hotelling, Strickon & Huppi, 2010).
Globalization has made Apple become fresh, and has forced them to come up with more creative ideas which it used to manufacture the iPod, Mac, iPhone. Apple was able to benefit over $400,000 dollars to each worker in the 2011. However a downfall due to globalization was that prices were becoming too high to produce the next big thing and Apple has had to rely on outsourcing personnel in order for it to be able to market and manufacture its products.
The growth of Apple has generated opportunities like selling and marketing into once restricted countries like China, where it gets cheap and disciplined labor for its commodities. This leads to having more products in consumer’s hands in more countries. Globalization has improved the haste of technology transmission and technological enhancement. On the negative side of it, Apple has been investigated for having sweat shop like conditions in their factories.
Technology has affected Apple in various countries across the world. Technology is always one step ahead of the consumer and the seller. Once one device comes out the company is already producing the next generation. Apple also offers Voiceover, which translates screens in more than 35 languages, and Voice Control that understands over 20 languages. (Apple) With the integration of social media Apple is able to flood the market with their own message and latest product info, therefore keeping up the ever changing circle that is technology. Since technology changes all the time it requires new focus and new ideas that is why Apple has created job opportunities to more unemployed youth hence helping to increase the total revenues of the countries where they are based (Andre, Coster, De Iuliis, Howarth, Ive, Jobs & Zorkendorfer, 2008).
Industrial organization model and the resource-based model to determine how Apple could earn above-average returns.
The industrial organization model and the resource-based model could be applied to ensure that the company earns above-average returns. The industrial organization model offers a 5 step plan which includes: The External Environment, An Attractive Industry, Strategy Formulation, Assets and Skills, Strategy Implementation, and Superior Return to help businesses reach their maximum goals. (Himanshu) The resource-bases model is a collection of unique resources and capabilities that provide the basis for each businesses strategy. (Mistry, 2013) Apple’s product advertising and marketing is two of its key strengths; these both produce huge brand recognition and higher demand for products creating a “niche” consumer market share. In 2014, Forbes named Apple the most valuable brand in the world (Forbes) that is not by accident. By constantly innovating and creating new technologies Apple will continue to have loyal customers.
How the vision statement and mission statement of Apple influence its overall success
“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.” (Farfan)
When I read this mission statement I don’t see a mission. I think that it is a poor example of what they are as a company. Steve Jobs used to say the “Apple was a computer for all of us”. That is a far cry from the products that were just listed. A mission statement is supposed to be what your company aims to be, what it values, something that inspires people. By the description above it seems like they are only valuing their product line and inspiring no one. However it must be said that just this statement alone was nearly impossible to find and it was not even from the Apple site which does not even have a listed mission or vision statement. This is all that we have to go on. However in a 2009 interview Tim Cook Apple CEO at the time gave this impromptu visionary statement:
“We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.”
This is something that people can grab on to and hold close to them. It talks about the purpose, focus, and what they expect out of themselves as a company.
How does each category of stakeholder impact the overall success of this corporation?
There are multiple types of stakeholders that ultimately contribute to the success of Apple. A stakeholder can play a big role in Apple everything ranging from overall control and financing to operations and supplies. A stakeholder is someone that has an acquired interest in the company and wants that specific company to do well. Here is how the stakeholders are broken down:
Stakeholders – These are usually people that hold stock in the company and receive dividends
Lenders – Lenders are needed and used to procure and redistribute funds to where they are needed or to fund other operations, similar to the Form 4 filing for 250,000,000,000 Yen on June 26, 2015
Manufacturers and Employees – They hold the entirety of Apple in their hands, without them Apple has nothing to sell.
Software Engineers and Developers – These people are always coming up with new innovative ideas that always surprise the market, creating a huge value a vital part of the success of Apple. Without the innovation that has gone on under the hood of Apple’s gizmos, Apple would not be what it is today.
Customers – What can be said about some of the most loyal consumers in the market place? “Appleites” as I call them thrive on everything that Apple puts out and truly believe that their product is superior to anything else. They create the demand faithfully, and Apple happily obliges.
Suppliers – Apple is a proprietary company, meaning they do not let anyone else build their products except for Apple. Yes they may have a few chips or antennas built by some other company but for the most part everything is done by Apple. Suppliers are a value because they get the best material to use for the products it puts together. If you have a shortfall in quality material then you have a shortfall in the quality of product.
Music Business – With the launch of iTunes Apple has cornered the online music industry. Of the 3+ Million users of and Apple iPod or iPhone, each one of them has access to iTunes to download music. iTunes had brought in billions of dollars in revenue and continues to be a cash cow for the company. Take away this business and really Apple would have never became big in the first place by launching the iPod.
Although Apple is not a product I use or intend to purchase, you have to admit that they
are a pretty well-run company. Apple will continue to be atop of the market as long as there is something innovative to produce that people want. Apple is one of the world’s biggest public companies with retail locations in 16 countries to include online access to over 120 more countries. I don’t think they are going anywhere.