Performance of Organizations
Performance of Organizations
the nature, structure, and types of products or services of Apple, and identify
two (2) key factors in the organization’s external environment that can affect
its success. Provide an explanation to support the rationale.
Apple is a multinational company that designs and manufactures
personal computers, portable digital music players, mobile communication
devices, media communication devices, and software. Apple TV, OS X and iOS
operating systems, iPod, iPhone, and Mac are the main products offered by Apple.
Apple goods and services are considered unique and of high quality which makes
it preferred by many consumers (Apple Inc., 2016).
products are unique in nature and offer an individual experience to the users.
The iPhone is very competitive and operates an iOS, which is Apple’s trademark
operating system. iPhone is the sole user of this operating system making them
unique. Additionally, Apple’s personal computer, the Mac, uses the OS X
operating system, which is also an Apple trademark operating system (Apple
purchases its materials and supplies from outside the US, mostly from Asia. The
company also makes significant sales in other countries. Any political
instability in the countries that provide its materials or countries that sell
Apple products may have an adverse effect on the performance of the company.
Aside from the political pressure from outside countries, Apple also faces
political pressure in the US. For example, in 2010, the US government banned
the importation of some products the company used in manufacturing the iPhone.
This prohibition negatively affected the company as it had to restore those
products (Khan, Alam, & Alam, 2015).
unfavorable economic event would negatively impact the operation of the Apple
Corporation. For example, the global recession had a very negative impact on
Apple. Consumers had little disposable income which limited purchases,
ultimately decreasing sales. Apple is a multinational company with global
sales; fluctuating exchange rates have the potential of affecting the performance
of the enterprise. Taxation changes can also affect the company; potentially
increasing the price of its products which can discourage consumers (Khan,
Alam, & Alam, 2015).
thrives on innovation. For Apple to continue to expand, it must continue to
adopt new technology as it advances. Consumers have obtained great power with
the growth of technology. Despite the fact that Apple’s products are unique,
consumers continue request changes that require Apple to modify their products.
For example, customers want to increase the size of the screen. Apple must fund
research and development to meet consumer needs; failure to do so may drive
customers to their competitors (Jinjin, 2013).
user’s behavior is rapidly changing with the growing technology. Apple has thus
far kept up with the changing technology and continues to provide products that
are attractive. The increasing need for laptops and smartphones among young
people can positively affect the firm by increasing the demand for its unique
products. Furthermore, consumers have become increasingly concerned with the
environment. Users tend to develop a
negative attitude to those manufacturers that have an adverse impact on the
environment. Apple understands this and ensures the safe disposal of various
computer parts with a buyback project (Jinjin, 2013).
Suggest five (5) ways in
which the primary stakeholders can influence the organization’s financial
performance. Provide support for the response.
can impact the financial performance of an organization. The number of
shareholders also affects the firm’s financial performance. Shareholders have
the right to make decisions about the company. If the company is not
performing, the shareholders have the authority to change management through
voting (Brouthers, Gelderman & Arens, 2007). According to Isik and Soykan
(2013), firms with good relationships have stronger financial performance than
those with weak affiliations. Happy shareholders are motivated to buy more
shares from the company, therefore increasing finances for operations. However,
if the shareholders are not receiving dividends they can choose to sell their
shares and invest in other firms that are more profitable.
and managers have a significant impact on the company’s financial performance.
Employee satisfaction has a great impact on the output of the organization. If
the employees are satisfied, they are more likely to produce quality products
that would increase profits due to high sales (Lindblom & Ohlsson, 2011).
directly affect the way a firm performs. The manager’s decisions can toggle the
finances of the company. Managers who are led by self-interest negatively
influence the financial performance of the business as they go for activities
that benefit themselves. They are likely to use the firm’s resources for
personal consumption resulting in substandard performance of the company
(Brouthers, Gelderman & Arens, 2007). On the other hand, managers who focus
on giving the best to the shareholders shape the company that leads to better
have a high impact on the financial performance of a corporation. Customers
determine if the business makes profits or losses, businesses depend on customer’s
patronage to be successful. The more the customers buy from the enterprise, the
higher the revenue. Satisfied patrons tend to be loyal to the company which
makes the company flourish financially. Good relationships between the firm and
the customers have been found to have a positive impact on the performance of
the enterprise (Lindblom & Ohlsson, 2011).
can also influence the financial performance of organizations like Apple. If
suppliers do not respect the rights of the workers, consumers might develop a
negative attitude towards the reputation of the organization. For example, the
deplorable working conditions, in the Foxconn Company in China, who are major
suppliers of Apple, have made the public have a very negative attitude towards
Apple’s products, which also negatively affects the financial performance due
to reduced sales.
some cases, suppliers can offer products at a very high cost, which may
increase operating expenses of the company, by either paying the high prices or
looking for alternative suppliers. Another way providers can influence the
financial performance of a firm is the quality of the materials they provide.
If a company offers low-quality materials, it may be reflected in the final
products which may discourage consumers from purchasing the products (Lindblom
& Ohlsson, 2011).
provide financial assistance to the organization helping to carry out daily
activities. Creditors can affect the financial performance of the firm. If the
business is in financial crises, lenders may assist the company to meet its
financial goals. On the other hand, some financiers provide financial
assistance with harsh conditions that may strain the financial performance of
the enterprise when repaying the debts (Lindblom & Ohlsson, 2011).
are primary stockholders who can also affect the firm’s financial performance
by investing more or withdrawing their investments. The investors provide the
company with finances for carrying out various activities, and the company
offers returns on investment to the investors. A firm like Apple must satisfy
their investors by giving them attractive returns on their investment;
otherwise, they can choose to invest in other businesses that may result in the
strained financial performance of the Corporation (Lindblom & Ohlsson,
one (1) controversial corporate social responsibility concern associated with
has been conducting business with companies knowingly violating the law.
Foxconn, a major supplier of Apple, is renowned among Apple’s controversial
corporate social responsibility. Apple has been accused of dealing with vendors
who violate human rights by offering hazardous working conditions and limited
safety precautions. In 2012, an
explosion in Foxconn killed four people and injured several other
employees. The company was also forcing
their employees to use poisonous chemicals to clean the iPad screen. These
chemicals attributed to at least two individual’s deaths and several other
injuries. Workers were forced to work for very long hours without compensation
and standing until they could barely walk. (Duhigg & Barboza, 2012). Approximately 18 people were reported to have
attempted suicide in the company for a job-related reason. Apple pressured Foxconn to provide
psychological support to their employees (Cedillo et al., 2012). Apple has
since made it their mission to provide their employees with the dignity and
respect they deserve. “Our suppliers employ more than 1.6 million people in 20
countries. And every one of those people deserves to be treated with dignity
and respect. In our tenth annual Supplier Responsibility Report, we’re sharing
the latest steps we’ve taken to create fair employment and safe working
conditions throughout our supply chain (Apple.com).”
controversial corporate social responsibility concern for Apple is the
environment. Apple’s supplier was accused of polluting a river in China making
the water turn milky. Also, the business was suspected of using tin in the
manufacturing of the iPhones and the iPad leading to the destruction of the
tropical forest and the coral reefs in Indonesia. Apple suppliers’ facilities
can have a significant impact on the planet and the people who make their
products. So they collaborate with suppliers to enforce strict environmental
policies and protect workers with the right equipment and safety measures. In
July 2015, Foxconn Guanlan became our first supplier to recycle or responsibly
dispose of all its production waste without using landfills. And in January
2016, after six months of 100 percent waste diversion, Guanlan was officially
validated as a zero-waste facility. Finally, Apple is building a new campus
which will run on 100% renewable energy and many of the plants selected can
adapt to climate change. Also, some of the plants will also be harvested and
served in their on-site cafeteria (Apple.com, 2016).?
Inc. (2016). Apple Inc. annual report.
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