Management of Multinational Corporations Agung Nugroho Odd Semester, 2011 The people who are crazy enough to think

they can change the world are the ones who do. - Apples Think Different commercial, 1997 APPLE INCORPORATED This is one corporation that is famous for its products. For the last decade, most if not all of their products are shipped worldwide and become bestsellers. Many of them are said to have changed the world, or at least changed the way we use the products. It was established by a considerably humble beginning, yet at one point in 2011 it becomes the most valuable company in the world.1 This paper will give a concise explanation on a company that has a rather simple and generic name: Apple. Company name Publicly traded as Founded Founders Headquarters Current leaders Revenue Profit Employees Apple Incorporated NASDAQ: APPL 1 April 1976 (incorporated 1977) Steve Jobs, Steve Wozniak, Ronald Wayne Apple Campus, 1 Infinite Loop, Cupertino, CA, USA Arthur Levinson (Chairman), Tim Cook (CEO) US$108.249 billion (FY 2011) US$25.922 billion (FY 2011) 60,400 (2011)

Table 1: Basic information about Apple Inc.

Nick Bilton, Briefly, Apple Reigns as the Most Valuable Company, August 9, 2011, http://www.nytimes.com/2011/08/10/technology/briefly-apple-reigns-as-the-most-valuablecompany.html (accessed November 19, 2011).
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Brief Historical Background Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod (portable digital audio player), iPhone, and iPad (PC tablet). 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, Final Cut Studio, a suite of professional audio and film-industry software products, and Logic Studio, a suite of audio tools. Established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977, the company was called Apple Computer, Inc. For its first 30 years, but dropped the word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Started by Steve Jobs, Steve Wozniak, and Ronald Wayne, Apple has expanded from computers to consumer electronics/devices over the last 30 years, officially changing their name from Apple Computer, Inc. to Apple, Inc. in January 2007. Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States (2008) and in the world (2009). July 1976 April 1977 Dec 1980 Apple sold their first product, Apple I Introduced Apple II. Apple launched Public Offering of its stocks - Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed from the Lisa team due to infighting, and took over Jef Raskin's low-cost-computer project, the Macintosh. In 1984, Apple launched the Macintosh.

1981 - 1985

Lisa and Macintosh

- - 1986 1993 Rise and Fall - -

1994 1997

Attempts to reinvention -

In 1985, Steve Jobs resign from Apple 1989, Apple introduced Macintosh Portable 1990, Apple released Macintosh LC Steve Jobs, back as an "advisor" due to the NeXT deal, announces the future of Rhapsody, Mac OS 8, Allegro, and Sonata, the Mac, NeXT, and Apple in general at Macworld Expo. Apple buys Power Computing's license and core assets, halts all CHRP licensing. At worldwide "Apple Event", Apple releases the PowerMac G3. The Apple Store is also introduced, and a deal is made with CompUSA for an "Apple store within the store". Though this greatly increases Mac sales, many disappointed by lack of bigger news. Apple announces 150,000 preorders for the iMac. Apple goes over $40/share, highest stock market price in three years. iMac becomes the second best selling computer for the month of August, even though it was only on sale for two weeks. Apple announces its first profitable year since 1995. Mac OS 8.5 is released to an ecstatic audience, promised Copland features appear. It is found that 43% of all iMac buyers are new to the Macintosh platform, an unimaginable number of new prospective buyers. Apple jumped into music business with the release of iPod in 2001

1998 2005

Return to Profitability

- - - - 2005 now Post-PC Era -

Apple enters the phone business with iPhone in 2007 Apple begins to sell Apple TV Apple manufactures and sells the thinnest notebook the MacBook Air Apple opens the App Store in 2008 and pioneering app market ecosystem Apple revolutionizes tablet computing with the iPad in 2010, opening a digital bookstore, the iBooks Apples CEO and co-founder, Steve Jobs, resigns in August 2011. He passed away 42 days later. Tim Cook replaces Jobs.

Table 2: Timeline of Apples history It is impossible to discuss the establishment of Apple without discussing its former CEO and late co-founder Steve Jobs.2 Steven Paul Jobs was born in 1955 in San Francisco, California. Born out of wedlock, Steve then given to adoption to a middle-class family of Paul and Clara Jobs. His interest in electronics begins in 1969 when he meets his long-lasting partner: Steve Wozniak. Together in 1976 they established Apple and incorporated it in 1977. This college dropout later created one of the legends of the computing world, which is the Macintosh, launched in 1984, by its legendary 1984 ad. However, power struggle within the executive of Apple forces him to resign in 1985, establishing another company, NeXT. Jobs does not stop there. His vision was to create a computer that is elegant and as sophisticated as possible, and NeXT for him is the right place. Yet his computers then prove to be way to expensive and only sells to a niche market. His biggest achievement, however, is on an animation company called Pixar. Here, Steve paves way to the birth of some of the best animation motion picture ever, with big titles such as Toy Story. Steve Jobs then returns to Apple in 1998, barely 90 days from the companys bankruptcy. In his first acts he decides to focus production of the Mac to only for
Romain Moisescot, Steve Jobs Short Biography, http://allaboutstevejobs.com/bio/short/short.html (accessed November 20, 2011).
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kinds of products, divided into matrix of Consumer, Pro, Desktop, and Portable. He launches the Think Different ad campaign in 1998 to indicate the way Apple that he wants to be. Apple moves on to the twenty-first century, and then dubbed it Post-PC Era. Steve paves way for products like the iPod (2001) and iPhone (2007), and somehow completes it with the iPad (2010). A personal calamity comes to Jobs in 2003, when he is diagnosed with a very rare type of pancreatic cancer. While most patients are suspected to die in weeks or months, Jobs survives for eight years, often said to be caused of his rigorous diet. Ultimately, he resigns his position as CEO on August 2011, and died 42 days later.

Companys Vision and Mission Talking about Apples vision and mission is mostly talking about Steve Jobs vision and mission. Steve Jobs, who is very creative, imaginative and perfectionist person, made an Apple. Inc. But what is the vision and mission of the Apple. Inc? Even though there is no clear statement about what is their vision and mission, but can we take a line what is their vision and mission? Steve Jobs as the founder and former CEO of Apple decided to make a computer with his friend and co-founder, Steve Wozniak because their interest and they want to made something different. From Steve Jobs biography we can take some conclusions: Vision Apples vision is that Apple revolutionizes the computer industry by democratizing the technology and making the machines smaller, cheaper, intuitive, and accessible to everyday consumers,3 because at that time the price of computer very expensive and the design are very big and not eye catching. Apple also aims to make a new technology that can help and make human life easier, make something creative and breakthrough the ordinary things (design, and apps). Steve Jobs also said every aspect of an Apple computer be elegant and perfectly made even if that part was buried deep, unseen within the chassis4. Steve Jobs, once said that, the computer should be full of perfection, not only design, but also the application. It is not only because of the hardware but the apps that allowed you to indulge in all sorts of delightful activities5. Mission Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its
Biography, Steve Jobs, A&E Television Networks, 2011, http://www.biography.com/people/stevejobs-9354805 (accessed November 12, 2011). 4 John M. Formy-Duval, Steve Jobs, October 2011, http://contemporarylit.about.com/od/memoir/fr/Steve-Jobs-Biography.htm (accessed November 12, 2011). 5 Janet Maslin, Steve Jobs' biography: Making the iBio for Apple's genius, October 25, 2011, http://www.ndtv.com/article/world/steve-jobs-biography-making-the-ibio-for-apple-s-genius-144039 (accessed November 12, 2011).
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revolutionary iPhone and App Store, and has recently introduced its magical iPad, which is defining the future of mobile media and computing devices.6 Apple has breakthrough the perfection and ferocious drive revolutionized six industries: personal computers, animated movies, music, phones, tablet computing and digital publishing. Apple also made applications that make human life easier, like Siri, GarageBand, iCloud, etc.

Apple Inc., Frequently Asked Questions: Apple Corporate Information, http://investor.apple.com/faq.cfm?FaqSetID=6 (accessed November 12, 2011).
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Products and Services Offered by the Company Apple is considered to be a consumer products company, producing products that are mostly aimed to common customers (instead of professionals albeit they actually have some products for that segment). This section will discuss the products and services offered by Apple. Products The history of Apple begins with their computer product, the Macintosh (or the Mac). First introduced in 1984 by the company co-founder Steve Jobs, it was the first massproduced consumer computer to have a bitmap screen for user to interact with the product.7 The line of product suffered from low sales, which is one of the reasons why Steve Jobs left Apple in 1985. Yet when he returns in 1997, Steve Jobs revises the product line of Macintosh, by drawing a 2 x 2 basic matrix on how the Mac product line should be: the matrix is a very simple combination of Consumer and Pro, Desktop and Portable.8 This matrix will pretty much define the Apple computer line for years to come. Consumer iMac Desktop (still producing, added with MacMini) iBook (discontinued, was Portable succeeded by MacBook, succeeded now by MacBookAir) Table 3: Product line matrix of Macintosh, 1997 (and their successors) This simplification of product line is one key highlight of Apples product management: instead of creating dozens of types of product, Apple decides to only focus on the simplest kinds, usually just one product for each purpose. And this ability to focus is dubbed to be the key reason why Apple survives bankruptcy in
The first computer to use a graphical user interface (GUI) was the Xerox PARC. See Walter Isaacson, Steve Jobs (London: Little, Brown, 2011), p. 95. 8 Isaacson, pp. 336-338.
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Pro Macintosh G3 (discontinued, succeeded now by MacPro) PowerBook G3 (discontinued, succeeded now by MacBookPro)

1997, when at that time Apple losses about $1.06 billion each year, and barely 90 years from filing bankruptcy.9 Yet Apple did not stop on computers only. In 2001, Apple launched the iPod, dubbed as 1,000 songs in your pocket. With that, alongside with one of Apples notable service, the iTunes Music Store, Apple dives into music service and consumer products, thus starting the companys departure from computer-specific business a process that they will complete in 2007. Currently Apple sells four iPods: iPod shuffle, iPod nano, iPod touch and iPod classic. The launch of iPod touch in 2007 is at almost the same time as the launch of their next new lines of products. On 9 January 2007, Apple dives more into consumer products by launching to different products: [1] AppleTV, which is a digital media receiver used by consumers to consume media on the large-screen TV; and [2] iPhone, a mobile phone which has full internet connectivity and iPod with touch controls.10 This moment also completes Apples involvement in consumer products business, by dropping the word Computer from Apple Computer Inc. to Apple Inc.. 2010 marks another key point in Apples history, when the company launches the iPad, a tablet computer. While tablet computer is not a new kind of technology, this is the first tablet computer that is widely accepted by the market, selling over 7 million units in the first 9 months, which is unprecedented in the industry.11 Besides making hardware products, Apple also creates a number of software, which is almost all to be used on Apples hardware. Some of the software, beside the operating systems MacOS (used for the Macintosh computers) and iOS (operating system of iPods, iPhones, iPads, and AppleTV), are iWork (document processing suite), iLife (media processing suite), and Final Cut (professional movie editing). Product Line Macintosh (computers) iPod (portable player) MacMini Air iPod nano Products MacBook MacBook Pro iMac MacPro iPod classic

iPod shuffle

iPod touch

Isaacson, p. 339 Steve Jobs, "MacWorld San Francisco 2007 Keynote Address," Apple Keynotes (San Francisco, California: Apple Inc., January 9, 2007). 11 Apple Inc., Apple Reports First Quarter Results, January 18, 2011, http://www.apple.com/pr/library/2011/01/18Apple-Reports-First-Quarter-Results.html (accessed November 19, 2011).
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iPhone (smartphone) iPad (tablet computer) AppleTV Software Table 4: Apple products Services

iPhone iPad AppleTV Operating systems: MacOS, iOS Applications: iWork, iLife

Apples services best summed-up in their four stores: three online stores and one brick-and-mortar store. The rest of Apples services are located in the respective stores. Apple as per 2011 has three online stores: the iTunes Music Store, the App Store, and the iBookstore. These three stores are served to customers via an application called iTunes, which was launched at about the same time as the iPod product line. The application is present on Mac computers as well as Windows, and also present at on every iOS devices. iTunes Music Store (otherwise known now as iTunes Store, to reflect the plurality of media), was established in 2003, is a media store, where customers can purchase (or, in some cases, rent) music, movies, TV shows, and various other kinds of media. The media can be purchased, rent, or streamed, depending on the media kind.12 The App Store was established in 2008, and was initially established to sell third-party applications for iOS devices (including iPhone, iPod touch, and iPad). The store has around 500,000 apps; and as per 2011 has been downloaded for 15 billion times.13 The store is currently expanded to the Mac App Store, which is similar to the App Store on iTunes but in this case for the Mac.14 The iBookstore is launched alongside with the launch of iPad in 2010. It is a digital bookstore in which books can be purchased and downloaded to be read on iOS
Apple Inc., iTunes Store, http://www.apple.com/itunes/what-is/store.html (accessed November 20, 2011). 13 Phil Hornshaw, Apples iTunes App Store breaks 15 billion downloads, July 7, 2011, http://www.appolicious.com/tech/articles/8663-apples-itunes-app-store-breaks-15-billion-downloads (accessed November 20, 2011). 14 Apple Inc., Mac App Store, http://www.apple.com/mac/app-store/ (accessed November 20, 2011).
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devices. Currently there is no plan for Apple to provide the same service on any other devices beside the iOS devices.15 Yet perhaps Apples signature service is Apples brick-and-mortar store, known simply as Apple Store. The Apple Store is the result of Steve Jobs vision of controlling the way customer purchases Apples products. The Store is aimed to show customers how Apple products can be helpful in customers daily life. Currently Apple has 356 stores worldwide.16 The Store itself is considerably iconic since it is usually built at the busiest place in the city, with an appealing all-glass faade with the recognizable bitten-Apple logo. The Stores averaged US$34 billion in revenue. In this chain of stores Apple offers many services to customers, such as the Genius Bar (free consultation with expert employees), trainings and tutorials, repairs, other postpurchase related services.17

Apple Inc., iBooks, http://www.apple.com/ipad/built-in-apps/ibooks.html (accessed November 20, 2011). 16 Apple Inc., Retail, http://www.apple.com/retail/ (accessed November 20, 2011). 17 More information, see Isaacson, chapter 29.
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Participation Strategies of the Company in Its Internationalization Strategy The distribution of product from Apple (U.S.) to Indonesia can be seen in the picture below:

Figure 1: Schematic on Apples distribution to Indonesia First, Apple from its headquarters sends the product to Apple Store in Singapore, which is the hub for the Southeast Asian region. And then Apple Store in Singapore sends the product to the Authorized Distributor and Premium Reseller in Indonesia. Authorized Distributor is a company that has the right to import and distribute the product in their country to the authorized reseller. Premium Reseller is a retail company that has the right to take the product stock directly from Apple Store like a distributor and sell it directly to the end user. They got their capital from the local investor with marketing support from Apple U.S. It is designed as a place that focuses exclusively on Apple products. They have Apple-trained and Apple-certified employees, who are trained to offer expert and friendly advice to the customer. They provide demo on its product. The stores also offer software, accessories, displays, AppleCare, third-party accessories and

software. Last but not least, its a service and support counter to offer repair services to all customers regardless of where they originally purchased the Apple product.18 Authorized Reseller is a company that takes the product stock from local distributor and sells it directly to the end user. They do not have the right to import Apple product and must take it from authorized distributor that appointed by Apple Store in Singapore. Their capital is all from their own pocket. They are not obligated to sell 100% product that support Apple. Its easier to become Authorized Reseller than Premium Reseller because the requirement is much easier to be fulfilling such as profit make for a single store each year. Premium Reseller will have to make more profit each year. There is an Apple Store (Indonesia) website but it does not support online purchase and serve only as a catalogue.19 Premium Reseller in Indonesia are Infinite, pcMax, Emax, eStore, iBox, Infinite, Zoom20. And several Authorized Reseller in Indonesia are Global, 1st Computer Sq, a gallery, Bhinneka.Com, C-Palm, Centris, Click, Cutting Edge, Datascrip, Datascrip, DeTouch, Harrisma, IBK, Inve Store, iShop, iX-Junction, Le Galleria, mPlus Store, My Campus, NoteBook Gear, story-I, The Addict, TokoPda, Velocity, Maxcom, Me Gallery and iPlug.21 There is one more type of reseller, which is Apple Store, or also known as the Apple Retail Store. It is a reseller that belongs to Apple due to the 100% capital from Apple. It located in the personal computer department of a computer electronics store. It offer help such as training, transfer files to new Mac and demo22. This Apple Store has a very limited presence throughout the world: it has 356 stores worldwide, in countries like the United States, Japan, United Kingdom, France, and Hong Kong. The Apple Store gets the products directly from Apple U.S. There is no Apple Store yet in Indonesia.
Apple Inc., Apple Premium Reseller, http://www.apple.com/asia/reseller/apr/ (accessed November 20, 2011). 19 Apple Inc., Welcome to Apple Store Indonesia, http://store.apple.com/id (accessed November 20, 2011). 20 Apple Inc., List of Apple Premium Resellers, http://www.apple.com/asia/reseller/apr/id-list.php (accessed November 20, 2011). 21 Apple Inc., List of Apple Authorized Resellers, www.apple.com/asia/reseller/aar/id-list.php (accessed November 20, 2011). 22 Apple Inc., Apple Shops, http://www.apple.com/asia/reseller/appleshop/ (accessed November 20, 2011).
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Strategies of the Company to Create Its Competitive Advantage Competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.23 Michael Porter suggested four "generic" business strategies that could be adopted in order to gain competitive advantage. The four strategies relate to the extent to which the scope of a business' activities are narrow versus broad and the extent to which a business seeks to differentiate its products.24 The four strategies that Apple use to create its competitive advantage: Differentiation Apple integrates all their hardware and software. Macintosh computers differ from competing Windows systems in that a single company is responsible for both the operating system and the hardware on which it runs. Windows computers are made by dozens of different manufacturers, and Microsoft cannot control either the minimum baseline of the hardware, or the variety of components, which may be included in a computer intended for Windows use25. Apple, on the other hand, has complete control over the variety and range of Macintosh hardware, which minimizes end-user technical support issues and guarantees that every Macintosh owner will have a common hardware platform creating their user experience. Apple briefly experimented with allowing third-party companies to sell Macintosh clones, and the Macintosh market began to look similar to Windows: while Macintosh OS users briefly had access to a wider variety of hardware, Macintosh clone makers largely competed by selling cheaper and less well-designed computers. Apple pulled the plug on Macintosh clone licensing to prevent the poorer-quality user experience from being permanently associated with the Macintosh brand. Apple has had a very strong public association with high quality design for most of its history. Its first home computers, the Apple II (pronounced "Apple 2") series in the 1970s and 1980s, do not appear elegant from a modern perspective, but
tutor4u, Competitive advantage, http://tutor2u.net/business/strategy/competitive_advantage.htm (accessed November 20, 2011). 24 Ellis Davidson, Apple Differentiation Strategy, http://www.ehow.com/way_5815745_appledifferentiation-strategy.html (accessed November 20, 2011). 25 Dan Herman, The Surprising Secret of Successful Differentiation, http://www.allaboutbranding.com/index.lasso?article=401 (accessed November 20, 2011).
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they were breakthrough at the time for their ease of use and setup, at a time when competing computers had to be literally built by hand from a kit of parts.26 Apple computers and electronics are frequently designed to be ahead of the curve of contemporaneous public opinion.27 The iMac line of computers was the first home computer to omit a floppy drive; this was considered by most observers to be mandatory, but they were proven wrong by the success of the model. Even failed Apple products show innovative design planning, such as the Macintosh Cube, a physically small desktop computer which paved the way to the more successful Mac mini-line. The impact of this design philosophy is that Macintosh computers consistently have a higher profit margin for Apple than most competing brands return to their manufacturers. Apple simply does not compete in the lower end of the market, where commodity hardware competition shaves profit margins razor thin. Apple's cheapest computers and electronics are consistently in the midrange, but include sufficient hardware and software features to ensure a high quality user experience. Apple hardware is designed to provide a lot of a value for the money, which keeps profits high, but to never be cheap in either cost or appearance. Cost Leadership Apple has been focused on the technology leadership. They are concerned with increasing overall sales by introducing new products.28 They have had a cost advantage when it comes to their iTunes Music Store, which has a great sales advantage. But otherwise they are more focused on becoming the most innovative. According to Hoovers.com, In 2008 Apple became the top music retailer by volume in the US market, surpassing Wal-Mart. Wal-Mart is known for their low

Jason Welker, Product Differentiation in Imperfectly Competitive Market, January 28, 2009, http://welkerswikinomics.com/blog/2009/01/28/product-differentiation-in-imperfectly-competitivemarkets-the-macbook-wheel/ (accessed November 20, 2011). 27 Christopher Meyer, Strategy, Differentiation & Alignment: 5 Examples from Apple, July 7, 2010, http://www.workingwider.com/strategic_innovation/strategy-differentiation-alignment-5-examplesfrom-apple/ (accessed November 20, 2011). 28 Gerald Jones, "Apple: The Industry Giant," Scribd, Waynesburg University, February 2, 2011, http://www.scribd.com/doc/50955546/Apple (accessed November 2010, 2011).
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prices and Apple still beat them.29 According to cnet.com, the sweet spot for Mac pricing is $999. And thanks to the MacBook, Apple hits that psychological threshold and makes consumers believe that although its low-end MacBook is more expensive than the $500 mediocre HP and Dell are selling. Apple also has an advantage of having their own operating system and computers. They are not as concerned with price as they are with their sales. They are targeting the high quality, high price market. Differentiation Focus Apple Inc. has focused their differentiation on quality, they want to provide a great computing experience. They want to come out with new ideas and separate themselves from the competition. According to Hoovers.com, The features that distinguish Macs allowed the company to maintain a loyal following willing to pay premium prices and overlook any interoperability issues with Windows (a factor that Apple largely addressed with its OS X operating system). However, despite market share gains made in recent years, Apple still trails top Window-based PC vendors, such as Hewlett-Packard and Dell. Building on the success of its App Stores for the iPhone, iPad, and iPod touch, the company launched the Mac App Store, which features both Apple and third-party software applications, in early 2011. More than a million apps were downloaded from the Mac App Store in its first day. This is something that is definitely unique to their company. Cost Focus Apple has been able to adapt to the recent recession. According to Hoovers.com, The company came through the global recession with increased sales and profits in fiscal 2010, with overall sales up by more than 50%. The increases were driven by higher sales for the iPhone and related products, which were up by more than 90% in the last two fiscal years. Double-digit growth was the norm for most of Apple's product lines in 2010. Their business strategies have kept them improving even through tough economic times.

Chung-shing Lee, "Apple Inc. Cost Leadership Strategy," .docstoc, October 23, 2008, http://www.docstoc.com/docs/66874482/Apple-Inc-Cost-Leadership-Strategy (accessed November 20, 2011).
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Organizational Structure of the Company in Its Home and Host Country Home The organizational structure of Apple at home can be somehow described with this scheme:

No decision-maker at Apple isby farthe removed from Steve Jobs.illustrating Through his Apple tight-knit and Figure 2: An infographic made Fortune magazine, with Steve largely long-serving executive team, Jobs quickly sees everything that goes on at the also these innerto and outer circles to collaborate on Jobs company. as CEO, He and allroutinely parts ofreaches Apple outside are centralized Jobs figure critical projects with key employees. This organization chart, which includes most but not all Apple executive ofcers, is based on Fortune's reporting, in addition to some limited Apple releases publicly. After the resignationinformation and passing of Steve Jobs as CEO, the inner structure

of

Apple leadership has not changed much. The core leadership of Apple Inc. is divided to the Chief Executive Officer and several Senior Vice Presidents which specialize in their respective fields. The core leadership of Apple Inc. is as follows: Chief Executive Officer Senior Vice President & Timothy Tim Cook Peter Oppenheimer

Chief Financial Officer Senior Vice President, Internet Software and Services Senior Vice President, Worldwide Marketing Senior Vice President, iOS Software Senior Vice President, Hardware Engineering Senior Vice President & General Counsel Senior Vice President, Operations Philip W. Phil Schiller Scott Forstall Bob Mansfeld Bruce Sewell Jeffrey Jeff Williams Eddy Cue

Table 5: Leadership Structure at Apple Inc. Host Apple Premium Resellers are iPod and Mac-dedicated retail outlets that provide an exceptional buying experience for Apple customers. Apple Premium Resellers are everywhere, its easier for customers to but Apple products. PT Premier Retail Indonesia is a leading retail company in the field of Retail Consumer Electronics, who also manage iBox Indonesia. iBox is Indonesia's leading Apple Premium Reseller specializing in Apple products and carries a wide range of complementary accessories, software and essentials. Until now, Apple Premium Reseller stores are all over Indonesia work together with Infinite who also the largest Apple Premium Reseller in Indonesia. And now its located at the most strategic locations in Jakarta, Surabaya, and Bali. Its mission is to provide the complete Apple experience and solution to valuable customers with a wide range of products and accessories and last but not least in completing the needs of Apple users. iBox offers customers a one-stop Apple digital lifestyle shopping experience. Customers can enjoy an interactive shopping experience where they are encouraged to touch, feel and test the latest range of Apple products.

As Indonesia's only Apple Authorised Training Center, iBox provides training and hands-on coaching for all Apple products and software. Additionally Apple Authorised Service Provider, provides excellent after-sales support where support and guidance for Apple users can be obtained. While iBox and similar companies in Indonesia maintain a licensor-licensee relationship (such as the usage of Apple logo), countries with Apple Retail Stores have different structure. For these countries with one or some of the 326 Apple Retail Stores worldwide, the capital is owned in entirety by Apple, and they are placed under the Retail Department. Apple retains ownership of the Store, and is usually represented by a branch manager.

Corporate Culture and Human Resource Management Apple has developed over the years unique corporate culture, which is especially derived from how the companys co-founder Steve Jobs treat the company and the employees. Some of the unique traits are discussed here. Corporate culture The first trait is how Apple create some very unique traits. They put aside the common traditional corporate culture and decided to be unique and different in their managing style and working culture. They have informal cooperate culture, thats also apply to their daily work styles where its unnecessary to wear any formal attire, but could freely go to work with their casual clothes. This trait says a lot on what kind of corporate culture they have and differentiated them from their competitors. Apple also has a relatively flat hierarchy. They had team and department division, and favored a flat organizational hierarchy rather than the tall version. Even though there are some series of changes in CEOs, who executed their own ideas, it still fostered individuality and excellence in order to attract talent into the organization30. It is in part due to Steves entrepreneurial belief that small groups of smart people work better than anything else: small and medium-sized teams of these [very bright] people can accomplish extraordinary things and run circles around large large teams of normal people.31 The next unique character of Apple is the work hard, play hard mentality. They actually value the quality of work, creativity, innovation and raw talent amongst other things and ventured into markets where it could make a significant contribution.32 Moreover, Apple is known for fostering individuality and this attributes to the talented people employed by the company, where they have informal corporate culture due to the respect of harmonious co-existence of cultural differences within them geared toward achieving their goal. When consumers look at Apple products, one of the defining features would be the design. The first thing that every employee must remember about Apple is that
ICMR India, Apple Inc. Corporate Culture: Case Studies, http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20 Behavior/Apple%20Inc%20Corporate%20Culture-Case%20Studies.htm (accessed November 12, 2011). 31 Romain Moisescot, Steve at work, 2011, http://allaboutstevejobs.com/being/3-work/3-work.html (accessed November 12, 2011). 32 ICMR India, op. cit.
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the company cares more about the design of products than any other firm in the market. Unlike Microsoft, which has historically done a poor job of creating aesthetically pleasing products, Apple really gets design. It understands what consumers want, it knows how to meet those desires, and it sets out to beat any and all expectations. It's not always easy, but Apple seems to get it right every time. If an employee doesn't help the company do that, he might end up with another company sooner than he thinks.33 Apple is also notorious for its culture of secrecy. As Apple was mainly into innovation, the company's policy was to keep things confidential. Secrecy was built into the corporate culture and the company always maintained tight control over information. 34 It is rumored that on Apples campus, Steve would often ask for an employees iPhone at random, and fire that person if her iPhone is not passwordprotected.35 Apple was an Equal Opportunity Employer and promoted diversity within the organization. The employees came with diverse experiences and from diverse backgrounds. Employees cited corporate diversity as one of the most positive aspects of the corporate culture at Apple.36 And Apple is all in all highly influenced by Steve Jobs influence.37 Steves personalities, lifestyles, how he sees things are the most influential to Apple Inc. Steve will only settle for the absolute best in everything he does, even in his private life. This standard of excellence drives many of his employees crazy but, it also pushes them to their very best and makes them achieve extraordinary performances. One quality that Steve Jobs doesnt have is modesty. As an Apple employee put it, "Steve is always the smartest guy in the room and he knows it. Steves ego also implemented in Apples, which has an ego unlike any other company in the space. He believes that his company is the best in the world, and should carry it that way.

Don Reisinger, Apple's Corporate Culture: 10 Lessons for Staying in Steve Jobs' Good Graces, August 10, 2010, http://www.eweek.com/c/a/IT-Infrastructure/Apples-Corporate-Culture-10-Lessonsfor-Staying-in-Steve-Jobs-Good-Graces-825505/ (accessed November 12, 2011). 34 ICMR India, op. cit. 35 Moisescot, op. cit. 36 ICMR India, op. cit. 37 University of Pittsburgh School of Engineering, Apple Products, December 16, 2010, http://mosaic.cnfolio.com/B101CW2010Article138 (accessed November 12, 2011).
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He didnt create anything really, but he created everything. Former Apple CEO John Sculley on Steve Jobs contribution to Macintosh Human resource management Apples recruitment is more focusing on type of peoples such as character, personality, and creativity, not on the task they will perform, their working experience or their basic knowledge regarding the product. Theyre recruiting online through their websites, organized by geographic locations and current position needed. Also from universities and internships through workshop and seminars. There is also an Apple Store Leader program, a 24-month international program immersion into every aspect of managing and operating an Apple Retail Store, where people could spend time in key store position, gaining sales skills through working as specialist, teaching others as a creative, and also resolving problems at the genius bar. As seen in the web, Apples are quite playful with explaining the positions and playing with words to recruit most talented people in the world. Their hiring is through online applications that are provided in the web. Apples giving equal employment opportunity, regardless of the applicants diverse cultures. After they follow the procedure, and the manager on their location interested, they will be informed to do an interview. Then they will be informed if theyre accepted. Apples actual staffing is based on the store's annual sales figures. Apples willing to train their employees and the training period is three weeks, and includes role-play, Web-based product familiarity access, and classes on Apple's retail philosophy, basic sales techniques and customer relations.38 One of company's philosophy for customer contacts is "one at a time," rather than to try to rotate among several who are in the store. All product information could be obtained through Apple Web sites, so there is no in-person product training. They want employees to already have the qualities that highlight teamwork, enthusiasm and the ability to project Apple's corporate philosophy. There are also possibilities for career advancement in Apple. Customers arent the only ones who get to discover new things at the Apple Retail Store. Every location provides regular training, which counts as work time, to keep you up to date on the latest Apple and third-party products. You can also get
38

The Stores, http://www.ifoapplestore.com/the_stores.html (accessed November 12, 2011).

training to help you move ahead as a Genius, Creative, or Manager or to transition to one of those tracks from your current position.39 There are a lot of benefits when people have their job at Apple. The simplest things are fun, innovative work environment. Working at Apple is a whole different thing. Because whatever you do here, you play a part in creating some of the bestloved technology on the planet. And in helping people discover all the amazing things they can do with it. You could call it work, or you could call it a mission. We call it a blast.40 There are also possibilities for career advancement. Great benefits, where particular benefits package will depend on their position, location, and years with the company. Some of the benefits are product discounts, personal and family counseling, tuition assistance, paid vacations and holidays, onsite fitness center, wellness program, etc.

Apple Inc., Jobs at Apple, http://www.apple.com/jobs/us/corporate.html#hr (accessed November 12, 2011).
39

Legacy: Apples Global Impact to the Society A closing conclusion to an elaboration on Apple will be best if includes the discussion on Apples impact to our society. Customers brand loyalty to Apple has been very overwhelming. Apple users are often characterized as members of a community where Steve Jobs is the leader.41 Apples innovation throughout the years earns it a very special place in the realm of technology. The Economist characterizes the influence as (to) able to make people love what had previously been impersonal, functional gadgets obsessed with product design and aesthetics, and with making advanced technology simple to use.42 The popularity of Apple products is enormous. The financial reports on the third quarter, fiscal year 2011, reports Apples product growth, which mostly are considerably magnificent, while also indicates Apples growing influence in the technology and consumer products market. iPhone iPad Mac iPod Quarterly revenue Quarterly net profit Quarterly cash flow 20.34 million units 9.25 million 3.95 million 7.54 million $28.57 billion $7.31 billion $11.1 billion +142% y/y +183% y/y +14% y/y -20% y/y +82% y/y +125% y/y +131% y/y

Table 6: Statistics on Apple financial results, Q3FY201143 There are just to many ways on how Apple gives impact to our society, from how it impacts the way we consume media to how we perceive the so-called Post-PC era. Yet we will point one interesting point here, which is the advertisements. Apple has been famous for its various advertisements, in which some of them are considered to be legendary. Beginning with the 1984 ad, where an athlete was pictured to destroy the blueman IBM domination, it continues with notable ad campaigns such as the Think Different ad campaign, the iPod silhouette ad campaign, the Mac vs PC ad
The Economist, Steve Jobs: The Magician, October 8, 2011, http://www.economist.com/node/21531529 (accessed November 21, 2011). 42 The Economist, ibid. 43 Apple Inc., Apple Reports Third Quarter Results, July 19, 2011, http://www.apple.com/pr/library/2011/07/19Apple-Reports-Third-Quarter-Results.html (accessed November 21, 2011).
41

campaign and many others. Apple thus create some of the more renown advertisements in the history of product marketing, and has ever since cited as one of the reasons of Apples success and survival.

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