Business / Internal And External Factors Of Apple Computers
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Autor: anton 22 December 2010
Words: 1121 | Pages: 5
Internal and External Factors of Apple Computers
Globalization, Technology, and E-business are all major factors influencing todayâ€™s business world. They influence many of our business related decisions on a daily basis. Some of these decisions could be deciding to use a computer to order a new desk from Singapore or using your cell phone to make a conference call in India. Even Appleâ€™s management functions are not immune to these critical factors.
Apple began selling personal computers produced in the garage of one of the founders in 1976. They were incorporated in 1977. Appleâ€™s first important product, the Apple II, personal computer was released in 1977 and by 1982 sales had increased to over $750 million. (Kimmel, 1998). It was clear that globalization played a big part in this success.
Globalization is becoming a must have for large organizations to excel above their competition. With that being said globalization has been influential to Appleâ€™s revenue. According to Apple, their â€œinternational sales accounted for 43 percent of the quarterâ€™s revenueâ€ (Dowling, 2005), this is continuing to rise. The rise in revenue is a result of excellent management and planning. Because of the need to go international, Apple created a strategic plan to go forward in the direction of globalization. This type of globalization will involve countries with different needs and different markets. For instance, planning a marketing scheme must involve the different variables that apply for each market. When planning globally, company structure must be taken into consideration. With that being said organization and control go hand in hand.
Organizing the strategy can influence future success in controlling changes. For example, planning the roll out of a new Apple product and monitoring the response can assist each department involved to gain positive and negative feedback. After the feedback is received they can make the necessary changes to the original plan. If organized well, the department can roll out a similar product in the same market using the lessons learned with relative ease in the future. Establishing controls decreases the chance for unintended problems and change. Reducing the number of challenging occurrences will enhance the operation. Another factor that affects managerial operations at Apple is e-business.
To survive and succeed in todayâ€™s complex business world, all established industries like Apple must develop a strategy that allows them to take maximum advantage of the latest trends in technology. Successful companies like Apple have implemented focused e-business strategies to build cutting-edge enterprises that serve and retain customers, manage supply and demand and integrate selling capabilities better than before. Apple has placed technology at the heart of their business strategy. They have taken technical ambitions and enabled it to provide maximum flexibility for online customers.
How does Apple make all of this happen with the fast paced environment that Apple competes in? First, Apple has to continuously develop cutting edge ideas and technology to stay one step ahead of all other competitors. They must develop, design, and look at the overall success of the product to determine if it is solid enough to make the grade. Planning when the new product hits the market is crucial and could make or break the initial success of product. To make a new product successful, you have to have the right people in the right place. Having a strong management team that understands the industry and what customers want and need makes a huge difference in the success of the company and their products.
There must be some type of control factor that a company implements in all aspects of the project and ensures that these controls are being met in a timely manner. Periodic status reports need to be mandated so that financial goals and timelines are achieved. All of these functions are crucial in making Apple the success it is today, which ultimately boils down to Appleâ€™s management and its technology.
The executive leaders of the Mac project set out only basic principles for the team which meant the group members were allowed to create and solve problems at the same time. Without much organization, each member became responsible for a fairly large portion of the total design and were free to consult with other team members when considering alternatives which resulted in good collaboration. However, the close knit group working on the Macintosh was isolated from the rest of the corporation which resulted in a lack of technology transfer and coordination between the Mac group and the rest of the divisions in Apple. This isolation also meant that important innovations made by one team were never passed along throughout the company. The controlling function of management did not work. This free-spirited workplace may have been effective for the innovative group for Macintosh, but not for the corporation as a whole (Nonaka, Kenney, 1991).
The Macintosh caused Apple computers to become a major player in the computer industry, but at what cost? Most of the members of the team that developed the Mac left the company because of disagreements with management, burnout or other economic opportunities which meant that Apple Computers lost some valuable resources. The lack of planning, organizing, controlling and leading translated to mixed success. Although the company is considered successful as far as money earned, the organization missed an opportunity to provide an environment in which innovation or information creation can occur and where the entire organization can benefitâ€”which can be a great motivator for more innovation (Nonaka, Kenney, 1991).
The internal affect that technology has in regards to technology is that of the strong personality of its leader dictated the management style of the company. The external affect was Apple is involved in a very competitive industry with its chief competitors being Microsoft, IBM and other computer companies. Innovation is important to maintaining their edge so new technology will always be a driving force in the company.
Technology, e-business, and globalization are all major factors in todayâ€™s business world. They control many of our decisions through the day, week, and year. At work they can influence us to make personal cuts because of the cheaper labor available in the Philippines. Or conduct meetings through video conferencing because it is cheaper than commuting. Appleâ€™s management has done a good job at controlling these factors and this is a good reason for its marked presence in the computer market today.
Dowling, Steve (2005). Apple.com. Retrieved April 30, 2007, from Apple.com Web site: http://www.apple.com/pr/library/2005/jul/13results.html
Kimmel, Leigh (1998). Apple Computer, Inc.: A History. Retrieved April 30, 2007, from geocites.com Web site: http://www.geocities.com/Athens/3682/applehistory.html?200729.
Nonaka, I, & Kenney, M (1991). Towards a new theory of innovation management:. Journal of Engineering and Technology Management, 8, Retrieved April 30, 2007, from http://hcd.ucdavis.edu/faculty/kenney/articles/knowledge/CanonApple.pdf.
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