Question

Describe the organization of Apple, Inc, including divisions and project teams, and the manner in which the company has used these teams to respond to government regulations in the past.

Answer 1

Apple Inc.’s organizational structure contributes to effective and rapid innovation, which is a critical success factor of the business in the information technology, online services, and consumer electronics industries. A company’s organizational or corporate structure is the combination of workforce groups, resources, and interconnections among these groups and resources in the business. The organizational design determines how the organizational structure is developed and managed. In this business analysis case of Apple Inc., the corporate structure supports strategies that push for further technological innovation. The company’s structural characteristics maintain a traditional hierarchy, with some key elements from other types of organizational structure. Apple Inc.’s success is linked to innovation and the leadership of Steve Jobs, and its corporate structure is partly responsible for ensuring support for such leadership. Now, under Tim Cook’s leadership, Apple has made some small changes in its organizational structure to suit current global market and industry demands.

Apple Inc. has a hierarchical organizational structure, with notable divisional characteristics and a weak functional matrix. The hierarchy is a traditional structural feature in business organizations. The divisional characteristics refer to the product-based grouping within Apple, such as for iOS and macOS. The weak functional matrix involves inter-divisional collaboration, while the hierarchy is preserved. The following are the main characteristics of Apple’s corporate structure:

1. Spoke-and-wheel hierarchy
2. Product-based divisions
3. Weak functional matrix

Strong Corporate Control. The hierarchy in Apple’s organizational structure supports strong management control in the organization. Theoretically, hierarchy empowers top leaders like Tim Cook to control everything in the organization. Through the hierarchy, business functions and product-based groups are effectively controlled through the decisions of the CEO and other top executives. This advantage of Apple Inc.’s corporate structure facilitates rapid and effective strategic management implementation, and helps in establishing coherence throughout the entire organization.

trong Corporate Control. The hierarchy in Apple’s organizational structure supports strong management control in the organization. Theoretically, hierarchy empowers top leaders like Tim Cook to control everything in the organization. Through the hierarchy, business functions and product-based groups are effectively controlled through the decisions of the CEO and other top executives. This advantage of Apple Inc.’s corporate structure facilitates rapid and effective strategic management implementation, and helps in establishing coherence throughout the entire organization.