Wednesday, May 6, 2020

Organizational Strategic Plans Apple

Question: What recommendations do you have for leaders in implementing change during crisis and strategic planning? Answer: Introduction In the technological business, Apple Inc. is the most renowned organization in the global industry. It was founded in U.S in 1976 as a computing firm. Over the years, Apple has grown in coverage, size, and product portfolio. The company offers a range of consumer electronics and services including television sets, smartphones and their applications, tablets, music players, software solutions, and information and entertainment services, among others (LuSted, 2012). Apples success in the global operations links to the adoption of effective strategies that have coped with internal and external changes. Apples founder, Steve Jobs, inspired the companys growth through strategic reforms. The original strategy has evolved over the last three decades as observed through changes in vision, mission, organizational structure, marketing operations, and position slogans (Schneiders, 2011). Conclusively, changes in Apple organization are due to broad experiences of industry discontinuities, produc t life cycles, and internal company dynamics. This paper assesses the significance of the changes in Apples strategic plan towards addressing short and long-term needs due to industry discontinuities and internal dynamics. Additionally, recommendations are given for leaders to apply in implementing change during periods of crisis and strategic planning. Addressing Apples Short and Long-term Needs Industrial Discontinuities Apple has experienced industry discontinuities that alter the needs in the short and long run. For instance, throughout its life, the company has confronted different levels of technological developments in the global industry that influence the competition. At Apples inception, the standard of technology was small (LuSted, 2012). The strategy used served the needs of the company as a computer business. However, sharp technological advancements in this industry have been in existence for long. As an example, the mobile technology has evolved in the recent years such as the introduction of the smartphones. Advanced innovations have led to the development of improved versions and features (Keillor, 2012). Additionally, the computer technology has advanced to attain high speeds and avail wide features for the consumers. Technological changes have had an influence on the market needs requiring firms to incorporate new strategies to meet customer expectations and realize sustainable sales revenues. Apples management responded by adopting an approach that embraces creativity and innovations. Investments in the research and development spearhead the companys technological competitiveness (Ireland, Hoskisson, Hitt, 2012). Strategies to position the company as a technological hub address the short-term needs of availing new product features to avoid losing customers to rivals. Moreover, the policies enable the company to keep pace or be in the leading position in bringing new technologies in the industry. These operations serve the long-term needs by creating favorable customer perception that Apple is a leader in the global market. As a result, Apple has earned customer loyalty that promotes continued support and growing market share. Other industrial disruptions include economic changes that influence the market performances and new competition tactics. During the Apples lifespan, there have been unexpected economic fluctuations in America and the global world. For instance, economic recessions such as the 2008 financial crisis hit America and major economies that are key markets for Apples products (Schneiders, 2011). Economic downturns lead to a short-term loss in revenues as the customer demand declines. Reduced purchasing power hurts Apples business that targets high-end users. Drop in incomes compel the consumers to go for the cheaper products such as substitutes offered by other technological firms. Besides the economic crises, there has been booms and improvement of economies of developing countries. For instance, the Asian markets have emerged as fast growing economies that offer opportunities for exploiting increased customer demand (Segers, 2016). Improving economies raise the consumer purchasing power that attracts many firms and new entrants. Consequently, competition goes up, and the rival companies have to develop effective marketing strategies to retain and attract new customers (Gallo, 2012). Apple has altered the international strategic plans to survive the changes in the economic factors. The strategies include reduced operations to cope with commercial drops. Also, the company adopts broad distributions channels involving third parties to avail products to customers. Third parties help share marketing risks such as fall in demand as well as promoting returns by reaching many customers. Moreover, Apple provides a widened range of products and services for buyers with different income levels. Despite this, Apple still has the position of a high-end producer of consumer technological devices (Kahn, 2013). Aggressive commercials and online marketing capabilities have also helped Apple to address changes in the needs due to economic fluctuations. Internal Company Dynamics Changes in the Apple strategic plans are partly due to internal company dynamics such as corporate portfolio and change in size. Since its origin, the Apple Company has grown from local firm in the America to a giant international corporation with operations in different global regions. Continued growth in size has triggered the need to adopt new strategies and organizational structure to support quality service delivery. For instance, high demand overseas forced the company to establish regional offices and distribution points to meet the needs of specific markets (Ciravegna, Fitzgerald, Kundu, 2014). The company also has own outlets in other countries to carry the theme and ensure local presence that improves service delivery. The widened company portfolio also drives growth in size. Apple has diversified into different businesses rather than depending on original objectives as a computer firm at inception. A broadened product range introduces increased responsibilities and operat ions that require new functions to maintain organizational efficiency (Ireland, Hoskisson, Hitt, 2012). Consequently, Apple management responded to meet these needs through strategic changes to create new sections and managers in America as well as in the foreign markets. Currently, the company has officials in major and emerging markets to serve the customer and organizational needs. As a result, increased strategies have addressed the short and long-term needs associated with growth in size and portfolio diversification. Therefore, the strategic changes in Apple related to industry discontinuities and internal company dynamics have helped satisfy short and long term needs. These practices offer useful lessons for the leaders to carry out changes whenever there is crisis or during strategic planning. Recommendations for Leaders Leaders have the responsibility of instituting changes in their organizations to ensure continued or improved success. Variations in the environment are inevitable and can take place gradually or through unexpected incidences such as crises (Prewitt Weil, 2014). Despite the uncertainties, effective leaders should ensure they develop appropriate strategies to cope with change and protect organizations or followers from losses. Leaders can apply various concepts in the strategic planning process to develop effective plans that lead to institutional changes. For instance, leaders would implement the ideas of quantum approach that entail developing forward movement of time and possible attributes of stability (Lord, Dinh, Hoffman, 2015). The leaders can analyze the situations that lead to failures in uncertain situations and make decisions that help avoid such experiences in the future. Leadership requires a foresight perspective to improve on the future projects that lead to organizational changes. Leaders need to apply the success factors to their preparedness practices to ensure strategies developed do not fail. Such elements include embracing knowledge, globalization, technological advancement, formal or informal rules, and corporate lifecycle, among others (Oner, Benson, Beser, 2014). Leaders also require skills to handle crises that emerge in the organization or environment and influence operations negatively. Prudent measures help to prepare and cope with uncertainties. Proactive leaders can learn the warning signs of a looming crisis and take necessary actions that minimize losses and enable them to exploit opportunities (Prewitt Weil, 2014). Although disasters happen, some warning signs are evident, and leaders who act on them can introduce appropriate changes. Also, understanding different approaches of leaders in management and operation levels towards crises is helpful (Boin Renaud, 2013). These leaders respond differently to same crisis and appreciating the gap helps develop bridging tactics that enable effective crisis management. Learning from early feedbacks and implementing better strategies is a vital aspect of leadership. Apple Inc. has an opportunity to learn from the customers. Calls from customers and product reviews need to be analyzed to obtain this feedback. This strategy is helpful for generating new ideas or improving the existing plans by Apples managers (Prewitt Weil, 2014). Feedback also helps the leaders to improve entrepreneurial activities by designing robust commercialization strategies and better experimentation processes. Further, embracing collaborative leadership approach is necessary for strategy formulation. Conclusion Leadership in the current environment is sophisticated. Leaders require advanced capabilities and skills to institute organizational changes for coping with turbulence in the internal and external factors. Effective strategies are desirable to address short and long term needs in an organization. For instance, Apples leadership has changed the companys policies since inception to fulfill needs arising from industry discontinuities and internal dynamics. As a result, the company has withstood global market forces to emerge as a leader in the industry. Contemporary leaders would apply concepts such as proactive responses, quantum approach, and risk management gaps at different responsibility levels in developing strategic plans and handling crises. References Boin, A., Renaud, C. (2013). Orchestrating joint sense making across government levels: Challenges and requirements for crisis leadership. Journal of leadership studies, 7(3), 41-46. Ciravegna, L., Fitzgerald, R., Kundu, S. K. (2014). Operating in emerging markets: a guide to management and strategy in the new international economy. Upper Saddle River, NJ: FT Press. Gallo, C. (2012). The apple experience: secrets to building insanely great customer loyalty. New York, NY: McGraw-Hill. Ireland, R.D., Hoskisson, R. E., Hitt, M. A. (2012). Understanding business strategy: concepts plus. Mason, OH: South-Western Cengage Learning. Kahn, B. E. (2013). Global Brand Power Leveraging Branding for Long-Term Growth. New York, NY: Wharton Digital Press. Keillor, B. D. (2012). Winning in the global market: a practical guide to international business success. Santa Barbara, CA: Calif, Praeger. Lord, R. G., Dinh, J. E., Hoffman, E. L. (2015). A quantum approach to time and organizational change. Academy of management review, 40(2), 263-290. LuSted, M. A. (2012). Apple the company and its visionary founder, Steve Jobs. Minneapolis, MN: ABDO Pub. Oner, M. A., Benson, C., Beser, S. G. (2014). Linking organizational change management and organizational foresight. Strategic change, 23, 185-203. Prewitt, J. E., Weil, R. (2014). Organizational opportunities Endemic in Crisis Leadership. Journal of management policy and practice, 15(2), 72-87. Schneiders, S. (2011). Apple's secret of success - traditional marketing vs. cult marketing. Hamburg: Diplomica-Verl. Segers, R. T. (2016). Multinational Management A Casebook on Asia's Global Market Leaders. Cham: Springer International Publishing.

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