CHAPTER 1

ORGANISATION PROFILE
1.1: History
Founders Steve Jobs and Steve Wozniak created Apple Computer on April 1 1976,and
incorporated the company on January 3, 1977, in Cupertino, California.For more than three
decades, Apple Computer was predominantly a manufacturer of personal computers, including
the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low market share
during the 1990s. Jobs, who had been ousted from the company in 1985, returned to Apple in
1996 after his company NeXT was bought by Apple. The following year he became the
company's interim CEO, which later became permanent Jobs subsequently instilled a new
corporate philosophy of recognizable products and simple design, starting with the original iMac
in 1998.With the introduction of the successful iPod music player in 2001 and iTunes Music
Store in 2003, Apple established itself as a leader in the consumer electronics and media sales
industries, leading it to drop "Computer" from the company's name in 2007. The company is now
also known for its iOS range of smart phone, media player, and tablet computer products that
began with the iPhone, followed by the iPod Touch and then iPad.
1.2: Geographical region and country
Apple inc was established in Cupertino, California,United States of America. Apple Inc largest
geographic markets are United States of America, Europe, China, Japan, and Asia
Pasific(NASDAQ;APPL).

Figure 1: The percentage of Apple Inc Total Net Sales by NASDAQ for the year 2014

1.3: Type of organization

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Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates consumer
electronics, personal computers, servers, and computer software, and is a digital distributor of
media content. The company also has a chain of retail stores known as Apple Stores. Apple's core
product lines are the iPhone smart phone, iPad tablet computer, iPod portable media players, and
Macintosh computer line.
1.4: Business Process
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In the business process management world(BPM), there is not much said about Apple Inc, and
people do not associate Apple Inc with BPM. Some say the association is more like Apple with
Innovation instead of BPM. There is a bit of method to Apples innovation madness and the
business process of Apple Inc can be better understand through its value chain activities as the
value chain analysis highlights important tasks or activities that provide Apple Inc competitive
advantages that rivals its competitors.
Inbound Logistic: Apple Inc has secured hundreds of suppliers worldwide and maintain good
supply chain management. Apples usually will purchase its material that will cover up to the
periods of 150 days. In this process, its CEO Tim Cook is known for his specialty of getting
suppliers to compete with each other to secure a contract with Apple Inc, which benefits the
company.
Operations: The company operations are divided into several segments such as United States of
America, Europe, China, Japan, rest of Asian Pasific countries, and other retails company. Their
operations are helped by 92,600 full-time employees and around 4,400 full-time equivalent
temporary employees and contractors. Majority of Apples hardware products are assembled by
outsourcing partners primarily located in Asia which is to cut labour costs.
Outbound logistics. Apples net sales through its direct and indirect distribution channels
accounted for 28% and 72% of total net sales respectively. Apple strives to minimize the volume
of its inventory due to cost considerations.
Marketing and sales: Apple Inc distribute its products into the markets through several
channels. Every year, the company spends billions of dolars on utilization of marketing
communication mix that focus on integration of advertising, public relations, events and
experiences or direct selling.
Service: Apple Inc is well known of its exceptional quality of customers support and services
during all three stages: pre-purchase, during the purchase and post-purchase. The company
established Apple experience centers in major cities around the globe where customers can try
its products to become convinced about the quality. Apple sales workers also are usually weltrained and polite young males and females who are technically experienced to demonstrate
product features and capabilities. Post-purchase customer service is also impressive with unique
iPhone trade-in programs that allow iPhone users to upgrade their phone to newer models with
additional payment.
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1.5 Website address and homepage image

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http://www.apple.com/

Figure 2: Homepage of the Apple Inc Website.

CHAPTER 2
DESCRIPTION OF IS STRATEGY TRIANGLE OF APPLE INC.

After Jobs resigned as CEO and became chairman of the board, Cook was named the new Chief
Executive Officer of Apple Inc. on August 24, 2011. Thus bringing major changes in the successful
company. Both CEOs has different management style and philosophy thus, affecting the balance of the
IS Strategy Triangle of Apple Inc. Major comparison between the old and new IS Strategy triangle are
shown in diagrams below followed with explainations.

Business Strategy
Focused on
innovation

Organizational Strategy
Dictatorship style and
complicated work

IS Strategy
IT investment to
support innovationmadness

Diagram 2.1 Old

IS Strategy
Triangle(Steve Job as CEO, 1997-2011).
Business
Strategy

Organizational Strategy

IS Strategy
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Focus on improvement of
products

Decentralization of
decision making and
improved work

Effective and efficient

investment in IT within

Diagram 2.2 New IS Strategy Triangle(Tim Cook as CEO, 2011-2016)

Business Strategy
Under Jobs' leadership, Apple kicked into high gear in terms of the products it released to the public.
Jobs oversaw the introduction of the iMac, the iPod, iTunes, the iPhone, the App store and the iPad.
This suite of products still makes up the core business of Apple.
Cook, however, has only overseen the introduction of the iPad mini, the iPad retina and the Apple
Watch in his three years as CEO. However, Jobs was the CEO of Apple for a much longer term than
Cook's current tenure, so he had more time to implement new products.
Cook's focus on Apple's core business and his decision to pump the brakes on new products is typical
of his style and ideology. While Jobs was looking to constantly innovate, Cook seeks to focus on
products that are already doing very well. For example, the Apple Watch is an expansion of the
iPhone, rather than an entirely new and innovative product.
Dr. Panos Mourdoukoutas also asserts that, Under Tim Cook, Apple has been churning out new
versions of old products that are destined to reach their limits. Tim Cooks Apple has not yet launch a
new product that may replace the iPhone, the iPad and the MacBook. The business model of Apple has
shifted from the Steve Jobs to the Tim Cook era,Steve Jobs emphasized the construction of brand new
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innovative technologies whereas Tim Cook has only been producing slightly improved versions of
existent Apple products.
For example, instead of having any true innovation with the newly released iPhone 5, Cook focused on
tightening up many aspects of the existing smartphone model such as the iPhone 4, he increased its
size, allowing it to compete with other larger phones such as those created by rival Samsung and cut
Apples contract with Google for its Maps service and replaced it with a proprietary map system this
let Apple inc to rely less on Google and shore up its own service platform, which will pay off in the
future. However, this does not conclude that under Tim Cooks management the company is failing.
Contradictory to the pessismistic view of the new CEO, the stock price for Apple Inc increase
drastically.

Diagram 2.3 Difference in Apple Inc Stock values

Organizational Strategy
Apples organizational structure is one of the factors contributing to the companys successful
innovation. The success of the company is linked to innovation and the leadership of Steve Jobs, but
its organizational structure is partly responsible for ensuring support for such leadership. Now, under
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Tim Cooks leadership, Apple has made some small changes in its organizational structure to suit
market and industry demands.
Most significant characteristics of Apples organizational structure:
1. Spoke-and-wheel hierarchy
2. Function-based grouping
3. Product-based grouping
Spoke-and-Wheel Hierarchy.
A birds-eye view of Apples organizational structure shows considerable hierarchy. In the past,
everything went through Steve Jobs office. Jobs made all the major decisions. However, under Tim
Cooks leadership, this hierarchy in Apples organizational structure has slightly changed. There is
now more collaboration among different parts of the company, such as software teams and hardware
teams. Apples vice presidents have more autonomy, which was almost absent under Jobs. Thus, the
companys organizational structure is now less stiff, but still has a spoke-and-wheel hierarchy where
Tim Cook is at the center.
Function-Based Grouping.
The upper tier of Apples organizational structure has function-based grouping, which an element is
derived from the functional type of organizational structure. Each senior vice president who reports to
Tim Cook handles a business function. For example, Apple has an SVP for industrial design, an SVP
for marketing, and another SVP for retail. In this aspect of the organizational structure, Apples top
leaders address business needs in terms of function areas.
Product-Based Grouping.
The lower tier of Apples organizational structure has product-based grouping, which an element is
derived from the divisional type of organizational structure. Below the senior vice presidents, there are
many vice presidents for different outputs or products. For example, Apple has a VP for iOS apps, a
VP for iPad, and another VP for consumer apps. This aspect of the organizational structure enables
Apple to address specific products or product components and not to forget improving Apple Inc work
environment.
The figure below illustrates the top level of Apple organizational structure:

Diagram 2.4 Apple Inc Organizational Structure

IS/IT Strategy
During Steve Jobs era, the company focus on spending its money on Research and Development that
solely focus on innovation and creative creation of its main product, such as iPod,iPhone,iMac,etc.
However, during Tim Cook era, the current CEO tends to invests in multiple sectors and eventhough
the value of the investments comparison are very high, Tim Cook is playing safe by guiding the
company into the future by coping with other future potential beneficial technology. As we can see
down below are the diagrams that shows the comparison between the investment made by the
company under the reign of two different CEOs.

Diagram 2.5 Research and Development under Steve Jobs

Diagram 2.6 Research and Development under Tim Cook

Based from the above financial statements, spending on research and developments are
drastically increased during Tim Cook era, which are contributed by the company investments
in other related technology, such as, Apple Inc investments of $1 billion in Chinese ridehailing service Didi Chuxing. A move that Apple Chief Executive Tim Cook said would help
the company better understand the critical Chinese market. The company also involve in
spending millions of dolars in establishing new technology centers all around the world under
Tim Cook reign in order to encourage more creative and innovative invention from their
employees. Apple Inc set to open new $25 million tech center in Hyderabad, India by June
2016(Dilger,2016). Apple Inc also has R&D facilities under construction in Yokohama, at the
site of a former Panasonic factory. That site is said to be intended to tap in to local talent
specializing in materials science, vehicles and health science.

Figure 2.7: The former factory site for Panasonic Corp. in Yokohama's Kohoku Ward (Ayako
Oikawa)

Figure 2.8: $25 million tech center in Hyderabad, India

Recently it has emerged that Apple has spent $10bn in research and development costs, which
is more than triple of what it spent just four years ago ($3bn). This massive increase in R&D
costs, does suggest that Apple is developing something a lot bigger than simply a new iPhone,
iPad or Mac device. There are some rumours that under Tim Cook supervision, the company
is trying to enter automotive industry by introducing new type of car under the name Project
Titan. Not to forget, under Tim Cook reign, Apple Inc also had formed strategic alliances
with other information technology leaders such as IBM to transform enterprise mobility,
AT&T in production and launching of the iPhone, Microsoft in developing Microsoft Office
software for the Mac and in return, Apple agreed to bundle Internet Explorer in all of Apples
computers, Intel for the processors used in their products,etc. Those alliances benefits the
company and securing its position as one of the most profitable high technology company in
the world.These evidences shows that, eventhough the company currently is not introducing
new innovative products, the future of the company will always be bright and successful under
the management of Tim Cook, as it was under Steve Jobs.

CHAPTER 3
CONCLUSION
In conclusion, based from the analysis on IS strategy triangle for Apple Inc during Steve Jobs
and Tim Cook era, we can see how different CEOs bring different life to the company with their
own management styles. From the business strategy side, under Steve Jobs , the company
succeed to gain massive market share with their innovative products such as iPhone,iMac,iPod,
etc, however, during the Tim Cook era, the company also able to survive and focused on
improving existing products because the current CEO believes that offering the perfect products
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to the customers will help the company in the future. Next, from the organisational strategy side,
Dictatorship management style of Steve Jobs are able to force the company to continuosly
create new innovation, however, the work environment during that time is not very pleasant to
the employees. Contradictory to Tim Cook era, he introduced better concept in their working
environment which are spoke-and-wheel hierarchy, function-based grouping, product-based
grouping and not to forget, decentralised decision making. Thus, gaining the trusts of the
subordinates and allow more creativity to emerge compared to the Steve Jobs era. Last but not
least, from the IS/IT strategy side, Tim Cook is believed to be able to guide the company into a
better future. Despite, slow rate in introduction of new products, Tim Cook had evidently involve
the company into new market sectors such as Chinese ride-hailing service Didi Chuxing, opening
up new technology centers in Hyderabad and Yokohama and forming strategic alliances with
their former rivals such as IBM, Microsoft, and AT&T which cannot be done during Steve Jobs
era.Even if there were many speculations on whether the company will be able to survive without
Steve Jobs at first, Tim Cook had definitely win the trusts of all people around the world with his
capabilities to continuosly making the company the leader in the technology world and also as a
trend setter.

References
1. A breakdown of Apple's five largest geographic markets.
- http://www.fool.com/investing/general/2015/04/01/5-largest-markets-for-apple.aspx
2.Apple Inc website
- www.apple.com
3.Apple Inc Business Process Management

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- http://www.bp-3.com/blogs/2009/01/apple-and-business-process-management/
4.Apple Value Chain Analysis
- http://research-methodology.net/apple-value-chain-analysis/
5. Apple, Inc set to open new $25 million tech center in Hyderabad, India by June
- http://appleinsider.com/articles/16/02/12/
6. Apple Inc Ethical Success and Challenges
- https://danielsethics.mgt.unm.edu/pdf/apple%20case.pdf
7. Apple and IBM Forge Global Partnership to Transform Enterprise Mobility
- https://www.apple.com/pr/library/2014/07/15Apple-and-IBM-Forge-Global-Partnership
8. Apple Inc Annual Report
- http://investor.apple.com/secfiling.cfm?filingid=1193125-14-383437
9. Apples Commitments To Your Privacy.
- http://www.apple.com/privacy/
10. Apples Inc OS X
- http://www.apple.com/osx/
11. A study on Apples Inc Information System
- https://www.scribd.com/doc/45851282/Managing-Information-Systems-by-Apple

12. Apples to Apples: Steve Jobs Vs Tim Cook

- https://www.entrepreneur.com/article/232865
13. How Does Tim Cook's Management Style Differ from Steve Jobs? (AAPL)
-

http://www.investopedia.com/articles/professionals/081715/how-does-tim-cooksmanagement-style-differ-steve-jobs.asp

14. Apple Leadership and Apple Organizational Structure.

- http://research-methodology.net/apple-leadership-and-apple-organizational-structure/
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15. Apple Inc. Organizational Structure: Features, Pros & Cons.

- http://panmore.com/apple-inc-organizational-structure-features-pros-cons
16. Apple Financial Report 2008
- http://investor.apple.com/secfiling.cfm?filingid=1193125-08-224958&cik=
17. Apple Financial Report 2015
- http://investor.apple.com/secfiling.cfm?filingid=1193125-14-383437
18. After $1B Didi investment, Tim Cook continues charm offensive at Apple-hosted event in
Beijing
-

http://venturebeat.com/2016/05/16/after-1b-didi-investment-tim-cook-continues-charmoffensive-at-apple-hosted-event-in-beijing/

19. Apple's electric vehicle project

- http://www.macrumors.com/roundup/apple-car/

APPENDIX
1. Sales Data from Apple Inc Annual Report

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2. Operating Expenses from Apple Inc Annual Report

3. Apples Inc Revenue by Product from Silicon Valley Insider

4. Product development during Steve Jobs and Tim Cook era

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5.Steve Jobs vs Tim Cook management styles

15