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Apple Global Company Report

Osama Mahgob Professor Himelstein MGMT 390-458 4/12/15 Global Company Report 2—Apple Inc. An organizational structure determines how a company’s tasks are performed. It expresses the allocation of responsibilities for different functions and processes to different individuals. In this organizational chart, the layout is a collaborative line and staff structure, meaning the designated groups of people work together to achieve a common goal while reporting to a single supervisor. Although Apple Inc. is a cooperative company it still operates under a centralized authority, meaning all workers report to their managers and the managers’ report to CEO, Timothy Cook. Apple has a tall organization structure because there are various levels of management. The top, CEO, and then the Senior Vice Presidents, then the nine Vice Presidents or executive team members who report to Cook. Then there are five vice presidents who also report to cook, and finally the 31 additional Vice Presidents that report to the 9 executive team members. Since after Steve Jobs passed the company hasn’t hired a replacement, so the team that used to report to the Chief Operating Officer directly report to Timothy Cook. The centralized authority has many advantages, like greater efficiency, simpler distribution system, and a stronger corporate image, although it can also diminish empowerment to the lower level employees, and cause inter-organizational conflict. The overall span of control of management in Apple Inc. is relatively small for the top management, however as you move down the ladder, it gets broader. The organizational structure is also departmentalized, which is dividing the organization into separate units. It is divided by function-that is design, production, marketing, and accounting. This saves money and makes the company as a whole more effective. Design is led by Jonathan Ive, Dan Riccio and Craig Federighi. The design category also breaks down into three more parts: Software, hardware, and aesthetics. Production is led by Jeff Williams. Marketing is led by Philip W. Schiller, and accounting is led by Luca Maestri. Another department that most companies are now strating to implement is online services, Angela Ahrendts and Eddy Cue take the lead for that in the company. CEO Timothy Cook--Timothy Cook is the CEO of Apple and is on the Board of Directors. He graduated with a bachelor’s in industrial engineering from Auburn University in 1982 and later got his M.B.A. from Duke University where he was a Fuqua Scholar. He was hired by IBM for 12 years as director of North American Fulfillment where he led manufacturing and distribution functions for IBM’s Personal Computer Company in North and Latin America. At Intelligent Electronics he was the COO of the Reseller Division, and was vice president of Corporate Materials at Compaq. He then went for a position at Apple. When he joined the company, Apple wasn’t the huge success that it is today, the iMac, iPod, and iPhone were not invented yet. He was Apple’s Chief Operating Officer and was responsible for the company’s worldwide sales and operations, including extensive management of Apple’s supply chain, sales activities, and service and support in all markets and countries. He also supervised Apple’s Macintosh division and played an important part in the continued growth of strategic reseller and supplier relationships. In 2011, he became CEO of Apple Inc. after Steve Jobs passed. Stock of AAPL High—Feb 23, 2015-133.00 Low— April 15, 2014-73.99 Current—April 12, 2015-127.10 Article Summary The Article “Apple Watch ‘More Risk than Reward’ Says Raymond James” written by Kristen Scholer in the Wall Street Journal describes the effects the announcement of the Apple Watch had on its consumers and if it will pay out. Analysts at Raymond James, a financial services company engaged primarily in financial planning, wealth management, and investment banking downgraded shares of Apple Inc. on Friday, the day the Apple Watch hit stores around the world and preorders began. Tavis McCourt, one of the analysts believes that the Watch will fall “far short” of the benchmark that the company has already established from their wildly successful products based on early reviews of the new Apple Watch. Although some reports claim certain versions of the Apple Watch are quickly selling out, investors are afraid about Apple’s ability to launch successful new products. Gene Munster an analyst of Piper Jaffray says that the watches were largely sold out because of demand but more importantly because of limited supply. The shares of Apple went down marginally, since the announcement of the watch. Ironically, the brokerage declared its revenue and earnings projections for the company as increasing. This is because of increased iPhone support and technology in China and assumptions of stronger buyback activity. Raymond James’ are one of the few who seem to believe Apple shares are going to plummet as 70 percent of analysts that follow Apple Inc. still have a buy in it, and 25 percent are neutral on the stock. Scholer, Kristen. "Apple Watch 'More Risk than Reward,' Says Raymond James." The Wall Street Journal. 10 Apr. 2015. Web. 12 Apr. 2015. <http://blogs.wsj.com/moneybeat/2015/04/10/apple-watch-more-risk-than-reward-says-raymond-james/?KEYWORDS=apple>.