In the world of computing, most successful companies including Apple Corporation keep a close eye on all of the factors that can have an impact on their businesses. By understanding the internal and external factors that can affect an organization give business management team the intelligence he or she needs to plan out the business’s strategy for the future. Unlike other organization out there today, what makes Apple so successful are the numerous internal strengths that they possess. Apple Corporation is one of the biggest technological designers in the world of computer today. The key to Apple success can also like to internal communication that the company put in place.
The culture of your organization is built on internal communication; this includes interpersonal relationships, training materials, newsletters, philosophical statements and policies. Your employees are happier when they are courteous and respectful of one another. They want their achievements to be recognized. When you provide sufficient instructions to your subordinates, you enable them to do their jobs effectively. When you help employees identify with your company's mission and goals, you are likelier to keep them long-term (Baldwin, 2010).
There are many internal factors that are affecting Apple’s performance. Based on this case study document, one can see that management is one of the biggest internal factors that affect Apple’s overall performances. In 1983, Steve Jobs recruited John Sculley, an experienced executive from PepsiCo to replace Jobs as Apple CEO. The internal factor that took place with this structure is the power struggling between Jobs and Sculley. John Sculley believe that Apple as a corporation had grown to the point where it needed to be and now strongly believe that Apple need to be more careful in its strategic moves and also to be better organized and rationally managed.
On the other hand, Steve Jobs with his entrepreneurial orientation has also believed that Apple should continued taking the risky direction by being an innovative company. In 1985, Sculley and the board of directors agreed to stipe Steve Jobs of his duties. The factor here is not having the management team effectively communicating and not having both Jobs and Sculley core characteristics working on the same page make and make their styles fit together turns out to be a failure to Apple. The Apple board, though, was not ready to anoint him chief executive officer and picked Pepsi-Cola CEO John Sculley, famous for creating the Pepsi Challenge, to lead the company.
Sculley helped increase Apple's sales from $800 million to $8 billion annually during his decade as CEO, but he also presided over Jobs' departure, which sent Apple into what Sculley calls its "near-death experience." In his first extensive interview on the subject, Sculley tells Cultofmac.com editor Leander Kahney how his partnership with Jobs came to be, how design ruled--and still rules--everything at Apple, and why he never should have been CEO in the first place (Leander, 2010). The board of the director felt that Apple needed an experienced executive to lead them into the next stage of development.
Another internal factors that are affecting Apple’s performance is the introduction of Apple iPod. Apple has a powerful footing in the personal computer market by being different with its innovative style and ease of use. Its iPod is developed in house, leaving it free from the tangles of the dominant Microsoft operating systems. This gives Apple a very large degree of control over its product in the physical appearance, specifications, and overall usability. What give Apple’s iPod advantage over other products the overall design and feature that is built into the product. When you see iPod touch for the first time, you won’t believe your eyes.
But when you hold it in your hand - that’s when you get how unbelievable it is. It weighs next to nothing, yet it’s no lightweight: It still does all the gaming, surfing, messaging, and everything else you love, more powerfully than ever. Fun was built into every millimeter of the thinnest, lightest iPod touch. It does more than ever, more powerfully than ever, from playing games to playing music to just playing around. And everything looks tremendous on the 4-inch Retina display (Apple.com, 2013). Apple was not the first portable music player in the market; remember other item such as Sony Walkman?
The main factor here is the difference was Apple’s focus on the user experience and interface, and the application of that to obtaining, organizing, listening to and sharing music. By leveraging digital distribution and the speed of broadband, Apple let music lovers browse and download a song or album in a fraction of the time it had previously taken to record music onto a tape, with the convenience of portable compact storage. Everything related to your music collection could be in your pocket (Travios, 2012).
This is just some of the internal factors that Apple has a full control of and by having full control of the design and development, Apple, as a company will continue to be successful.
The last internal factors that affect Apple’s performance are the retail stores. Apple believed that high quality buying experience with knowledgeable salesperson that can convey the values of the company’s products and services was critical to attracting and retaining customers. The Apple retail store is the most profitable store on the planet. By opening and operating its own retail store, Apple is in full control and has grown into a multi-million dollar business due to its strict employee guidelines and thoughtful attention to minute details, such as music used and demo machines. These closely guarded methods include:
•Strict control over its employees: Apple employees are not allowed to discuss rumors with customers, and technicians are not allowed to mention any glitches. If you are caught writing about the company on the Internet, you will be fired. Tardiness is not tolerated, and employees who are six minutes late to work more than three times in six months can be let go. •An emphasis on customer satisfaction, not sales numbers, which is spelled out with the acronym APPLE. oApproach customers with a personalized warm welcome
oProbe politely to understand all the customer's needs oPresent a solution for the customer to take home today oListen for and resolve any issues or concerns oEnd with a fond farewell and an invitation to return. •As part of this APPLE approach, technicians are urged to listen to customers and respond with assurances that you understand their needs. Salespeople are encouraged to find solutions for customers and not just make a sale. They are not allowed to correct a customer's mispronunciation. New employees also undergo a rigorous training and mentoring process that can take weeks to complete. •Retail pay starts at US$9-$15 per hour for sales staff and up to $30 per hour for Genius employees.
A move from retail to corporate is rare, and many employees leave when they realize they can't advance up the ladder. •Though there are no sales quotas or commissions, Apple employees are encouraged to sell service packages. If they don't sell enough care plans, they will be re-trained or moved to another position within the store (Hodgkins, 2011).
In conclusion, every organization has an internal and external factor that will affect the overall performance of its business. While it is difficult to control external factor, more and more organization like Apple are focusing more on the internal factors. Apple knows that the keys to their success start with having the right management team to lead their organization, continuing to be the most innovative computer companies in the world by constantly introducing new technology to its customers and by offering a great retail store that will bring in new customers and retaining them is the main internal factor that will affect its overall performances.
Reference Apple.com. (2013). Engineered for maximum funness. Retrieved from http://www.apple.com/ipod-touch/ Baldwin, A. (2010). internal & external factors that affect an organization. Retrieved from http://smallbusiness.chron.com/internal-external-factors-affect-organization-16641.html Hodgkins, K. (2011, June 15). The secrets of apple's retail success. Retrieved from http://www.tuaw.com/2011/06/15/the-secrets-of-apples-retail-success/
Leander, K. (2010, October 25). Being steve's boss. Retrieved from http://ehis.ebscohost.com.csuglobal.idm.oclc.org/ehost/[email protected]&vid=1&hid=7&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ== Travios, D. (2012, July 13). The ipad will mirror the ipod's market dominance. here's why and why it matters.. Retrieved from http://www.forbes.com/sites/darcytravlos/2012/07/13/the-ipad-will-mirror-the-ipods-market-dominance-heres-why-and-why-it-matters/