netrashetty
Netra Shetty
Organisational Structure of Apple Inc. : Apple Inc. (NASDAQ: AAPL; previously Apple Computer, Inc.) is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari internet browser; and iOS, a mobile operating system. As of August 2010[update], the company operates 301 retail stores[5] in ten countries,[6] and an online store where hardware and software products are sold. As of May 2010[update], Apple is one of the largest companies in the world and the most valuable technology company in the world, having surpassed Microsoft.[7]
Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977,[8] the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007,[9] to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers.[10] As of September 2010[update], Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide[4] and had worldwide annual sales of $65.23 billion
2
CEO
Steve Jobs
Director
Albert Gore
3
Director
Andrea Jung
2
Director
Millard Drexler
3
Director
Ronald Sugar
7
Director
William Campbell
3
Director
Arthur Levinson
CFO
Peter Oppenheimer
3
COO
Timothy Cook
Legal
BS
iPhone Software
SF
2
Mac Hardware Engineering
Robert Mansfield
Industrial Design
JI
Operations
JW
5
Retail
Ronald Johnson
Software Engineering
BS
Product Marketing
PS
Global Communication
KC
Control
BR
2
Global Outsourcing
MB
Apple Online Store
JB
Americas & Asia Regions
JB
AppleCare
SG
Education
JC
3
EMEAI Region
Pascal Cagni
Consumer & Pro Application
GG
Mac OS Engineering
Craig Federighi
Internet Services
EC
iPhone & iPod Marketing
GJ
Communication, EMEA
AH
Communication, Asia Pacific
JT
Communication, Japan
TT
Communication, Latin America
CC
Corporate Communication
SD
Mobile Advertising
AM
In May of 1985, Sculley announced another reorganization. The three product divisions were
consolidated into one called Product Operations. Exhibit 5 is an interoffice memo from Sculley
introducing the new organizational structure to Apple’s employees. The company was downsized
in an effort to reduce operating costs. Advertising was reduced, factories were closed, and the
Lisa computer and some development efforts were eliminated. The direct sales force was
dismissed except for those on established accounts. A total of 1,200 employees were laid off,
60% of whom were in manufacturing.46 Other cutbacks were made across the organization
except for R&D.
The other part of the reorganization called for bringing in a new general manager of the
Macintosh Division to replace Jobs. Also, Jobs operating role in the company as chairman was
taken away. On September 17, 1985, he resigned from Apple. Yocam was placed in charge of
engineering, manufacturing, and distribution, and William V. Campbell became responsible for
U.S. marketing and sales. Sculley imported two top-level executives to headquarters in
California from Europe. Jean-Louis Gassee, head of Apple France, was promoted to replace Jobs
as head of product development, and Michael Spindler, a German national, who had been
running European marketing and sales, was promoted to head all of Apple’s international
operations. Apple became one of few companies to have two Europeans at the highest levels of
senior management.
Apple International
Apple was an early market leader in Europe. Before 1983, the company expanded sales into
Britain, Germany, and France. Gassee led a successful marketing effort in France, and, under his
strong leadership, Apple achieved a high profile and a critical mass of buyers. However, Apple
was not as successful in Britain and Germany. Competitors in the British education market shut
out Apple. In Germany, the home market of hobbyists, where Apple products were most popular,
never took off with the same popularity that it had elsewhere. Still, the company established a
European headquarters in Paris with a staff of 45 people and built a production plant in Ireland.
Apple managed its international operations from California. This drew criticism from the
European computer industry. Both Gassee and Spindler tried to convince Apple to pay more
attention to growing markets abroad.
Apple Computer, Inc.
8
Enthusiast to Businessman
Following its 1985 reorganization, Apple began to adjust its products and marketing strategy to
better fit the computer industry environment. Product lines were filled out with equipment the
consumer wanted, such as large disk drives and more powerful versions of the machine itself.
Efforts were made to open up the Mac to third-party hardware and software companies. These
companies were hesitant, however, to invest time and money to develop software for the Mac
since the installed hardware base was such a small percentage of the market. Programs designed
for Apple would sell far fewer copies than those created for IBM compatible machines, making it
too costly to develop Macintosh software.47
In late 1985, Apple finally introduced a product that was successful in the business market. The
product was a desktop publishing program pioneered by the Macintosh for printing typesetquality
documents on the computer. “Some 50,000 Macintosh publishing systems were sold in
1986, and sales of the accompanying printers alone added about $150 million in revenues.”48
Excel, a spreadsheet program written by Microsoft Corp. for the Mac was also a success. Apple
was now able to offer capabilities similar to IBM PCs running Lotus 1-2-3 spreadsheet
programs.
In January 1986, Sculley began to pitch the Macintosh to Fortune 500 companies like General
Electric, Eastman Kodak and Du Pont, and listened to their criticisms. He also expanded the
number of business packages written for the Mac. Apple’s marketing strategy focused more
aggressively on the corporate market to win space in the office at the expense of the IBM.
Simultaneously, the company slowly extricated itself from the unprofitable home computer
market and lessened its dependence on sales to schools. Said Sculley, “We went after business
because that’s the biggest market with highest profit and the fastest growth in the personal
computer industry.”49
In pursuing the business segment, Apple began to hire more employees with professional
business backgrounds.
Early on, Apple tended to hire hackers and enthusiasts. For the last two years,
they’ve taken on experienced professionals who were businessmen before they
were Apple enthusiasts.50
The idea was that corporate managers would be more responsive to salespeople who were similar
to them.
Apple’s national salespeople were ordered to seek “highly visible reference accounts.” The
company received orders from Sea First Bank for 1,000 Macs, Federal Express for $5 million
worth of machines, and commitments worth roughly $2.5 million apiece from General Motors,
GTE, Honeywell, and Motorola. In 1986, revenues from the sale of Macintosh products
exceeded those of Apple II products. That following March of 1987, Apple introduced two new
computers for the business market: the Macintosh SE and the Macintosh II. Both machines were
“open”--the first to accommodate microprocessor boards made by outside companies.
Apple Computer, Inc.
9
The open design vastly increased the Macs appeal to businesses, since the extra
boards let Macs work better in corporate computer networks, use bigger screens,
and run software written for IBM computers. The…Mac II had ten times the
computing power of the first Mac.
These products attracted larger software houses that developed sophisticated applications for
large business users.
The new Macintosh products and desktop publishing contributed to an expanded business market
for Apple. Nearly half of Apple’s sales and most of its profits came from selling personal
computers and related products to business users. The company now offered product features
that IBM did not offer that the business market highly valued.
In 1990, however, Apple’s progress in the business market was largely thwarted by Microsoft’s
introduction of the Windows operating system. This system’s ease of use surpassed MS-DOS
and reduced Apple’s interface advantage. This fact, coupled with the much larger installed
hardware base of IBM compatible machines for which Windows was designed, enabled
Microsoft to beat Apple with Apple’s own ideas, and “Microsoft emerged as the uncontested
leader of the desktop computing world.”51
Growth
Business market expansion resulted in a 30% increase in Apple’s sales from $1,901.9 million in
1986 to $2,661.1 million in 1987.52 Exhibit 6 shows net sales, net income, and the total number
of employees for years 1982-1989. Apple expected this rapid growth to continue, predicting a
more than doubling of revenue to $10 billion annually by the early 1990s.53
As the number of employees increased, there was less time available for Sculley to devote to
day-to-day operations. As the “bureaucracy continues to grow,…there is a limit to how many
engineers can walk directly into Sculley’s office to pitch their ideas.”54
Also, there were constant battles between Apple’s sales, marketing, and engineering
departments. Upper managers were “not all lined up facing in the same direction.”55 “The
technical people didn’t respect the marketing department, the marketing department was
disorganized, and there was little possibility that we could afford all the projects it was working
on.”56 These problems required even more of Sculley’s time.
In an effort to centralize operations and involve Apple’s senior management in day-to-day
decisions, Sculley created a new position of Chief Operation Officer (see Exhibit 7) to which
Yocam was appointed. Sculley hoped that this change would free up more of his own time to
spend on long-term planning. New high-level management positions included vice president of
advanced technology and vice president of U.S. sales and marketing. Sculley doubled the size of
Apple’s field force and the number of employees grew to 10,836.57
Apple Computer, Inc.
10
International Growth
In 1987, international growth became a priority at Apple. The European market for PCs was
expanding faster than the U.S. market. Apple depended on growth in markets abroad to cover up
declining U.S. sales. Sculley said, “We were going to reduce our dependency in the U.S.
consumer market, which meant sales growth in the international area would be important
because otherwise people could feel Apple was failing.”58 Sculley turned to Michael Spindler,
head of Apple’s international division, to develop a strategy for growth in the European market.
Spindler’s strategy involved focusing more closely on the needs of corporate and other markets
rather than on those of home users. In order to appeal to these consumers, Spindler developed a
businesslike approach to the European market, similar to the one Apple developed in the U.S. He
brought more experienced computer industry professionals into Apple’s older European
subsidiaries and stressed a professional, corporate image from the start in newer ones.
Spindler reorganized Apple’s European distribution network, which was geared more to
individuals and small business buyers. He cut back the network and upgraded the remaining
distributors to lure large corporate dealers who were accustomed to dealing with IBM. As
Spindler explained, “We made a decision to take the distribution network down, and build it
back up in quality rather than quantity. We put more emphasis on adding value, rather than just
moving boxes.”59
Spindler also championed a new “multilocal” approach to international subsidiaries. Most
American multinationals simply cloned their U.S. operations overseas, selling the same products
as were successful in the United States. According to Spindler, a multilocal approach meant “you
have a network model that adapts to local markets. You behave and act like a local company, yet
you are within the network of the mother company back home. The whole world can thus
become one big shopping cart for ideas and capital.”
Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977,[8] the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007,[9] to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers.[10] As of September 2010[update], Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide[4] and had worldwide annual sales of $65.23 billion
2
CEO
Steve Jobs
Director
Albert Gore
3
Director
Andrea Jung
2
Director
Millard Drexler
3
Director
Ronald Sugar
7
Director
William Campbell
3
Director
Arthur Levinson
CFO
Peter Oppenheimer
3
COO
Timothy Cook
Legal
BS
iPhone Software
SF
2
Mac Hardware Engineering
Robert Mansfield
Industrial Design
JI
Operations
JW
5
Retail
Ronald Johnson
Software Engineering
BS
Product Marketing
PS
Global Communication
KC
Control
BR
2
Global Outsourcing
MB
Apple Online Store
JB
Americas & Asia Regions
JB
AppleCare
SG
Education
JC
3
EMEAI Region
Pascal Cagni
Consumer & Pro Application
GG
Mac OS Engineering
Craig Federighi
Internet Services
EC
iPhone & iPod Marketing
GJ
Communication, EMEA
AH
Communication, Asia Pacific
JT
Communication, Japan
TT
Communication, Latin America
CC
Corporate Communication
SD
Mobile Advertising
AM
In May of 1985, Sculley announced another reorganization. The three product divisions were
consolidated into one called Product Operations. Exhibit 5 is an interoffice memo from Sculley
introducing the new organizational structure to Apple’s employees. The company was downsized
in an effort to reduce operating costs. Advertising was reduced, factories were closed, and the
Lisa computer and some development efforts were eliminated. The direct sales force was
dismissed except for those on established accounts. A total of 1,200 employees were laid off,
60% of whom were in manufacturing.46 Other cutbacks were made across the organization
except for R&D.
The other part of the reorganization called for bringing in a new general manager of the
Macintosh Division to replace Jobs. Also, Jobs operating role in the company as chairman was
taken away. On September 17, 1985, he resigned from Apple. Yocam was placed in charge of
engineering, manufacturing, and distribution, and William V. Campbell became responsible for
U.S. marketing and sales. Sculley imported two top-level executives to headquarters in
California from Europe. Jean-Louis Gassee, head of Apple France, was promoted to replace Jobs
as head of product development, and Michael Spindler, a German national, who had been
running European marketing and sales, was promoted to head all of Apple’s international
operations. Apple became one of few companies to have two Europeans at the highest levels of
senior management.
Apple International
Apple was an early market leader in Europe. Before 1983, the company expanded sales into
Britain, Germany, and France. Gassee led a successful marketing effort in France, and, under his
strong leadership, Apple achieved a high profile and a critical mass of buyers. However, Apple
was not as successful in Britain and Germany. Competitors in the British education market shut
out Apple. In Germany, the home market of hobbyists, where Apple products were most popular,
never took off with the same popularity that it had elsewhere. Still, the company established a
European headquarters in Paris with a staff of 45 people and built a production plant in Ireland.
Apple managed its international operations from California. This drew criticism from the
European computer industry. Both Gassee and Spindler tried to convince Apple to pay more
attention to growing markets abroad.
Apple Computer, Inc.
8
Enthusiast to Businessman
Following its 1985 reorganization, Apple began to adjust its products and marketing strategy to
better fit the computer industry environment. Product lines were filled out with equipment the
consumer wanted, such as large disk drives and more powerful versions of the machine itself.
Efforts were made to open up the Mac to third-party hardware and software companies. These
companies were hesitant, however, to invest time and money to develop software for the Mac
since the installed hardware base was such a small percentage of the market. Programs designed
for Apple would sell far fewer copies than those created for IBM compatible machines, making it
too costly to develop Macintosh software.47
In late 1985, Apple finally introduced a product that was successful in the business market. The
product was a desktop publishing program pioneered by the Macintosh for printing typesetquality
documents on the computer. “Some 50,000 Macintosh publishing systems were sold in
1986, and sales of the accompanying printers alone added about $150 million in revenues.”48
Excel, a spreadsheet program written by Microsoft Corp. for the Mac was also a success. Apple
was now able to offer capabilities similar to IBM PCs running Lotus 1-2-3 spreadsheet
programs.
In January 1986, Sculley began to pitch the Macintosh to Fortune 500 companies like General
Electric, Eastman Kodak and Du Pont, and listened to their criticisms. He also expanded the
number of business packages written for the Mac. Apple’s marketing strategy focused more
aggressively on the corporate market to win space in the office at the expense of the IBM.
Simultaneously, the company slowly extricated itself from the unprofitable home computer
market and lessened its dependence on sales to schools. Said Sculley, “We went after business
because that’s the biggest market with highest profit and the fastest growth in the personal
computer industry.”49
In pursuing the business segment, Apple began to hire more employees with professional
business backgrounds.
Early on, Apple tended to hire hackers and enthusiasts. For the last two years,
they’ve taken on experienced professionals who were businessmen before they
were Apple enthusiasts.50
The idea was that corporate managers would be more responsive to salespeople who were similar
to them.
Apple’s national salespeople were ordered to seek “highly visible reference accounts.” The
company received orders from Sea First Bank for 1,000 Macs, Federal Express for $5 million
worth of machines, and commitments worth roughly $2.5 million apiece from General Motors,
GTE, Honeywell, and Motorola. In 1986, revenues from the sale of Macintosh products
exceeded those of Apple II products. That following March of 1987, Apple introduced two new
computers for the business market: the Macintosh SE and the Macintosh II. Both machines were
“open”--the first to accommodate microprocessor boards made by outside companies.
Apple Computer, Inc.
9
The open design vastly increased the Macs appeal to businesses, since the extra
boards let Macs work better in corporate computer networks, use bigger screens,
and run software written for IBM computers. The…Mac II had ten times the
computing power of the first Mac.
These products attracted larger software houses that developed sophisticated applications for
large business users.
The new Macintosh products and desktop publishing contributed to an expanded business market
for Apple. Nearly half of Apple’s sales and most of its profits came from selling personal
computers and related products to business users. The company now offered product features
that IBM did not offer that the business market highly valued.
In 1990, however, Apple’s progress in the business market was largely thwarted by Microsoft’s
introduction of the Windows operating system. This system’s ease of use surpassed MS-DOS
and reduced Apple’s interface advantage. This fact, coupled with the much larger installed
hardware base of IBM compatible machines for which Windows was designed, enabled
Microsoft to beat Apple with Apple’s own ideas, and “Microsoft emerged as the uncontested
leader of the desktop computing world.”51
Growth
Business market expansion resulted in a 30% increase in Apple’s sales from $1,901.9 million in
1986 to $2,661.1 million in 1987.52 Exhibit 6 shows net sales, net income, and the total number
of employees for years 1982-1989. Apple expected this rapid growth to continue, predicting a
more than doubling of revenue to $10 billion annually by the early 1990s.53
As the number of employees increased, there was less time available for Sculley to devote to
day-to-day operations. As the “bureaucracy continues to grow,…there is a limit to how many
engineers can walk directly into Sculley’s office to pitch their ideas.”54
Also, there were constant battles between Apple’s sales, marketing, and engineering
departments. Upper managers were “not all lined up facing in the same direction.”55 “The
technical people didn’t respect the marketing department, the marketing department was
disorganized, and there was little possibility that we could afford all the projects it was working
on.”56 These problems required even more of Sculley’s time.
In an effort to centralize operations and involve Apple’s senior management in day-to-day
decisions, Sculley created a new position of Chief Operation Officer (see Exhibit 7) to which
Yocam was appointed. Sculley hoped that this change would free up more of his own time to
spend on long-term planning. New high-level management positions included vice president of
advanced technology and vice president of U.S. sales and marketing. Sculley doubled the size of
Apple’s field force and the number of employees grew to 10,836.57
Apple Computer, Inc.
10
International Growth
In 1987, international growth became a priority at Apple. The European market for PCs was
expanding faster than the U.S. market. Apple depended on growth in markets abroad to cover up
declining U.S. sales. Sculley said, “We were going to reduce our dependency in the U.S.
consumer market, which meant sales growth in the international area would be important
because otherwise people could feel Apple was failing.”58 Sculley turned to Michael Spindler,
head of Apple’s international division, to develop a strategy for growth in the European market.
Spindler’s strategy involved focusing more closely on the needs of corporate and other markets
rather than on those of home users. In order to appeal to these consumers, Spindler developed a
businesslike approach to the European market, similar to the one Apple developed in the U.S. He
brought more experienced computer industry professionals into Apple’s older European
subsidiaries and stressed a professional, corporate image from the start in newer ones.
Spindler reorganized Apple’s European distribution network, which was geared more to
individuals and small business buyers. He cut back the network and upgraded the remaining
distributors to lure large corporate dealers who were accustomed to dealing with IBM. As
Spindler explained, “We made a decision to take the distribution network down, and build it
back up in quality rather than quantity. We put more emphasis on adding value, rather than just
moving boxes.”59
Spindler also championed a new “multilocal” approach to international subsidiaries. Most
American multinationals simply cloned their U.S. operations overseas, selling the same products
as were successful in the United States. According to Spindler, a multilocal approach meant “you
have a network model that adapts to local markets. You behave and act like a local company, yet
you are within the network of the mother company back home. The whole world can thus
become one big shopping cart for ideas and capital.”
Last edited by a moderator: