ASSIGNMENT

ON
Apple

SUBMITTED BY IHSAN ULLAH

BS Software Engineering(2nd Semester)
Registration No: (SE120182021)
Spring, 2019
Principle of Management

SUBMITTED TO Madam Rida

KOHAT UNIVERSITY OF

SCIENCE & TECHNOLOGY

SESSION (2018-2019)
INTRODUCTION
Apple Inc. is an American multinational technology company headquartered
in Cupertino, California, that designs, develops, and sells consumer electronics, computer
software, and online services. It is considered one of the Big Four of technology along
with Amazon, Google, and Facebook.
The company's hardware products include the iPhone smartphone, the iPad tablet computer,
the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch,
the Apple TV digital media player, the Apple AirPods wireless earbuds and the HomePod smart
speaker. Apple's software includes the macOS, iOS, iPadOS, watchOS and tv OS operating
systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and
productivity suites, as well as professional applications like Final Cut Pro, Logic Pro, and Xcode.
Its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple
Music, Apple TV+, iMessage, and iCloud. Other services include Apple Store, Genius
Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop
and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12
days. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers,
including the Apple II, grew quickly. Within a few years, Jobs and Wozniak had hired a staff of
computer designers and had a production line. Apple went public in 1980 to instant financial
success. Over the next few years, Apple shipped new computers featuring innovative graphical
user interfaces, such as the original Macintosh in 1984, and Apple's marketing advertisements for
its products received widespread critical acclaim. However, the high price of its products and
limited application library caused problems, as did power struggles between executives. In 1985,
Wozniak departed Apple amicably and remained an honorary employee,[8] while Jobs and others
resigned to found NeXT.[9]
As the market for personal computers expanded and evolved through the 1990s, Apple lost
market share to the lower-priced duopoly of Microsoft Windows on Intel PC clones. The board
recruited CEO Gil Amelio to what would be a 500-day charge for him to rehabilitate the
financially troubled company—reshaping it with layoffs, executive restructuring, and product
focus. In 1997, he led Apple to buy NeXT, solving the desperately failed operating system
strategy and bringing Jobs back. Jobs pensively regained leadership status, becoming CEO in
2000. Apple swiftly returned to profitability under the revitalizing Think different campaign, as
he rebuilt Apple's status by launching the iMac in 1998, opening the retail chain of Apple
Stores in 2001, and acquiring numerous companies to broaden the software portfolio. In January
2007, Jobs renamed the company Apple Inc., reflecting its shifted focus toward consumer
electronics, and launched the iPhone to great critical acclaim and financial success. In August
2011, Jobs resigned as CEO due to health complications, and Tim Cookbecame the new CEO.
Two months later, Jobs died, marking the end of an era for the company.
Apple is well known for its size and revenues. Its worldwide annual revenue totaled $265 billion
for the 2018 fiscal year. Apple is the world's largest technology company by revenue and one of
the world's most valuable companies. It is also the world's third-largest mobile phone
manufacturer after Samsung and Huawei.[10] In August 2018, Apple became the first public U.S.
company to be valued at over $1 trillion.[11][12] The company employs 123,000 full-time
employees[13] and maintains 504 retail stores in 24 countries as of 2018.[14] It operates the iTunes
Store, which is the world's largest music retailer. As of January 2018, more than 1.3 billion
Apple products are actively in use worldwide.[15] The company also has a high level of brand
loyalty and is ranked as the world's most valuable brand. However, Apple receives significant
criticism regarding the labor practices of its contractors, its environmental practices and
unethical business practices, including anti-competitive behavior, as well as the origins of source
materials.

VISION
We believe that we are on the face of the earth to make great products and that’s not
changing. We are constantly focusing on innovating. We believe in the simple not the complex.
We believe that we need to own and control the primary technologies behind the products that
we make, and participate only in markets where we can make a significant contribution. We
believe in saying no to thousands of projects, so that we can really focus on the few that are truly
important and meaningful to us. We believe in deep collaboration and cross-pollination of our
groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for
anything less than excellence in every group in the company, and we have the self-honesty to
admit when we’re wrong and the courage to change. And I think regardless of who is in what job
those values are so embedded in this company that Apple will do extremely well.
This vision set in stone follows a few key and core believes:
 Making great products
 Focusing on innovation
 Simplicity in place of complexity
 Control the primary technologies behind Apple’s products
 Focus on a few key projects
 Excellence as the standard

The vision statement sets the stage to the company’s core believes. These core believes do not
change year over year but instead follow the company life throughout several cycles.
While there are events that shake companies fundamentals and make them rethink the long-term
vision! We believe that we are on the face of the earth to make great products and that’s not
changing. We are constantly focusing on innovating. We believe in the simple not the complex.
We believe that we need to own and control the primary technologies behind the products that
we make, and participate only in markets where we can make a significant contribution. We
believe in saying no to thousands of projects, so that we can really focus on the few that are truly
important and meaningful to us. We believe in deep collaboration and cross-pollination of our
groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for
anything less than excellence in every group in the company, and we have the self-honesty to
admit when we’re wrong and the courage to change. And I think regardless of who is in what job
those values are so embedded in this company that Apple will do extremely well.

MISSION

A mission statement states the objective for which a company exists. Apple’s
mission statement mainly sums up the products it makes and their technological value. One
important thing that is well known to all Apple fans and users is the quality of its products.
Apple is into both personal and professional computing. It makes great hardware and software to
provide unmatched performance. On top of all are the Macs that are considered the best in the
category of laptops. Next are the Apple OS and the other software that deliver
unmatched performance. Its Iphone and ipads are equally popular. Iphone specifically is a huge
success and is very popular among the millenials. Apple is using a more detailed mission
statement than the one its founder Steve Jobs had originally drafted. Its mission is more focused
at what it really does and how it is contributing to the world it is trying to serve. Specifically, its
focus is on the products and there benefits. If the main idea behind the existence of Apple is to
revolutionize the world of computing then its mission statement sums up the entire idea
beautifully. The mission statement also showcases the best work of Apple from Macs to Itunes
and iphones. Still. Considering such a corporate mission statement, Apple Inc. is
specific in enumerating its organizational outputs. For example, these outputs
include Macs, iPods, iPhones, and iPads. Another characteristic of Apple’s
corporate mission is its emphasis on digital distribution services via the Internet.
For instance, the iTunes online store enables the company to distribute digital
content. In this regard, the mission statement highlights the company’s focus on
computing devices and related online services. The business outputs enumerated in
the corporate mission partly determine Apple Inc.’s marketing mix or 4Ps. Apple Inc.’s corporate
mission and corporate vision are linked in terms of how they push for the company’s continuous
growth despite challenges in the competitive landscape. Considering the variety of industries
where the business operates, it is essential that the diversity of strategic approaches for these
industries be embodied in the corporate mission and the corporate vision. Porter’s Five Forces
analysis of Apple Inc. shows that the business deals with strong competition. The company must
ensure that its mission statement defines the strategies to keep the business competitive. In
relation, Apple’s vision statement must direct business efforts toward a future of leadership in
the global market.

STRUCTURE
Apple Inc.’s organizational structure contributes to effective and rapid
innovation, which is a critical success factor of the business in the information technology,
online services, and consumer electronics industries. A company’s organizational or corporate
structure is the combination of workforce groups, resources, and interconnections among these
groups and resources in the business. The organizational design determines how the
organizational structure is developed and managed. In this business analysis case of Apple Inc.,
the corporate structure supports strategies that push for further technological innovation. The
company’s structural characteristics maintain a traditional hierarchy, with some key elements
from other types of organizational structure. Apple Inc.’s success is linked to innovation and the
leadership of Steve Jobs, and its corporate structure is partly responsible for ensuring support for
such leadership. Now, under Tim Cook’s leadership, Apple has made some small changes in its
organizational structure to suit current global market and industry demands.

Spoke-and-Wheel Hierarchy.

A bird’s-eye view of Apple’s organizational structure

shows considerable hierarchy. In the past, everything went through Steve Jobs.
Jobs made all the major strategic management decisions. However, under Tim
Cook’s leadership, this hierarchy in Apple’s corporate structure has slightly
changed. The company now has more collaboration among different parts of the
organization, such as software teams and hardware teams. Apple’s vice presidents
have more autonomy, which was limited and minimal under Jobs. Thus, the
company’s organizational structure is now less rigid, but still has a spoke-and-
wheel hierarchy where Tim Cook is at the center.

Product-based Divisions. The upper and lower tiers of Apple’s corporate structure
has product-based divisions, which is an element derived from the divisional type
of organizational structure. There are senior vice presidents and vice presidents for
different outputs or products. For example, Apple has a Senior Vice President for
Software Engineering (iOS and macOS), a Senior Vice President for Hardware
Engineering (Mac, iPhone, iPad and iPod), and a Senior Vice President for
Hardware Technologies (hardware components). Apple Inc.’s marketing mix or
4P is linked to this structural characteristic. This aspect of the corporate structure is
used to manage specific products or product components that the company delivers
to its target customers.

Departmentation

The Human Resource Department is the most crucial function in the influence and
determination of Apple’s organizational structure. First of all, the Human Resource
Department’s function of managing the workforce cannot be shared with another
department ass it would result in confusion in the Company. It, however, performs
its functions in collaboration with other departments of the Company. For instance,
it liaises with the Finance Department in order to understand whether to recruit
more employees or lay off others or even raise their remunerations (Griffin, 2014).
The HR groups the workers together according to their resources and expertise.
The department makes it appoint that the employees at Apple understand the roles
that they play in the Company. The HR department ensures that the employees
wear clothes that are different colors in accordance with the responsibilities and
duties that they perform. In this way, the Human Resources Department provides
the clear distinctions that are the bases of the functional structure of organization as
adopted by the Apple Company. It functions majorly to help in the avoidance of
 the duality and overlapping of the various roles played by the particular functional
groups (Jones, 2010).
The Human Resources Department also influences and determines the adoption
and maintenance of the functional organizational structure by Apple through
ensuring that the various groups have their leaders. These leaders are managers and
supervisors. These leaders make sure that the labor force is effectually organized.
This helps in easier and more effective performance of the duties given to the
various departments or groups. The effecting of managers and supervisors also
help in the easy interaction and collaboration of the different groups that have been
set up by the Human Resources Department. This promotes the use of the
functional organizational structure.

In 2006, Apple Inc. reported employing 17,878 fulltime and

2,399 temporary employees in the following departments:

 Mac Hardware Engineering.

 Software Engineering.
 Applications.
 iPod Engineering.
 Marketing.
 Sales.
 Operations.
 Information Systems and Technology.

Product and Service

Apple Inc., incorporated on January 3, 1977, designs, manufactures and

markets mobile communication and media devices, personal computers and portable digital
music players. The Company sells a range of related software, services, accessories, networking
solutions and third-party digital content and applications. The Company's segments include the
Americas, Europe, Greater China, Japan and Rest of Asia Pacific. The Americas segment
includes both North and South America. The Europe segment includes European countries,
India, the Middle East and Africa. The Greater China segment includes China, Hong Kong and
Taiwan. The Rest of Asia Pacific segment includes Australia and the Asian countries not
included in the Company's other operating segments. The Company's products and services
include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and
professional software applications, iPhone OS (iOS), OS X and watchOS operating systems,
iCloud, Apple Pay and a range of accessory, service and support offerings.
The Company sells and delivers digital content and applications through the iTunes Store, App
Store, Mac App Store, television APP Store, iBooks Store and Apple Music (collectively Internet
Services). The Company sells its products through its retail stores, online stores and direct sales
force through third-party cellular network carriers, wholesalers, retailers and value-added
resellers. The Company sells a range of third-party Apple compatible products, including
application software and accessories through its retail and online stores. The Company sells to
consumers, small and mid-sized businesses and education, enterprise and government
customers..

PRODUCT PORTFOLIO
When it comes to consumer electronics and computing technology, one of the most recognizable
names in the world is Apple. It is one of the world’s largest information technology company,
and ranks in the top three manufacturers of mobile phones in the world. In a 2014 survey, it was
adjudged as the most valuable brand in the world, valued at close to USD120 billion.
Originally named Apple Computer Inc. when it was founded in 1976 by Steve Jobs, Ronald
Wayne and Steve Wozniak, it was originally focused on hardware development, primarily on
personal computers. It wasn’t until in 2007 when it decided to shift to developing consumer
electronics products that it gained a new identity as Apple Inc.

Services
Emphasis on services. As the technical leaps from one iPhone/iPad/Mac generation to the next
become less dramatic, product revenue has started to shrink; in response, the company is focusing
on driving forward on things like the App Store, iCloud, Apple Pay, Apple Music and its soon-to-
launch games and video offerings.
This shift is already playing out in the company’s financials. While product sales dipped a bit
year-over-year — down from $51.3 billion in the quarter that ran from January to March 2018 to
$46.6 billion in the same quarter of 2019 — revenue from the services business climbed from
$9.9 billion to $11.5 billion.
In this fiscal Q2 quarter of 2018, Apple’s total revenue came in at roughly $61.1 billion; in the
same quarter of 2019, it dipped to $58 billion. This works out to services accounting for 16.1% of
Apple’s revenue in fiscal Q2 2018, but nearly 20% in fiscal Q2 2019. Apple CFO Luca Maestri
says services now account for “one-third” of the company’s gross profits.
A big part of Apple’s services business is monthly subscriptions — the things like iCloud, Apple
Music and Apple News that make money each month from the hardware that’s already out
there. Tim Cook says Apple now has 390 million paid subscriptions across its services. Cook
didn’t dive into how that breaks down service-by-service, but that’s up roughly 30 million
subscribers over last quarter. The company says it expects paid subscribers to surpass half a
billion by 2020 (presumably fueled by the launch of its gaming/video services).
 iTunes Music Store
 App Store (for Mac and iOS)
 iCloud
 Apple SIM (SIM card service for iPad.

Compensation System

Apple is a massive tech company, an American

multinational technology company headquartered in Cupertino, California, that
designs, develops, and sells consumer electronics, computer software, and online
services including the Iconic iPhones, Apple Watch, Apple Music and the App
Store.

There are two kinds of people in the world: people who say Apple isn’t just a
company, it’s a cause; and people who say Apple isn’t a cause, it’s just a company.
Both groups are right. Nature has suspended the principle of non contradiction
where Apple is concerned.

The Participant’s base salary (including vacation pay, sick pay, and holiday pay),
cash fees paid to a Non-EmployeeDirector (including the cash retainer), overtime,
shift differentials, commissions, and any cash bonus payments made to a
Participant by a Participating Company. For purposes of the Plan, a Participant’s
Compensation shall include: (i) any salary or bonus deferrals or reductions
pursuant to Code sections 401(k) and 125; (ii) any short-term disability pay or
similar leave of absence pay (other than workers’ compensation or long-term
disability) paid from the Participating Company’s W-2 payroll; and (iii) payment
of, prior to a Participant’s Separation from Service, accrued but unused vacation
and sick pay. Compensation shall not include: (i) any amounts paid by an entity
that is a foreign Affiliate or by an entity that is not a Participating Company;
(ii) severance pay; (iii) income arising from taxable non-cash fringe benefits; and
(iv) any compensation attributable to stock incentives such as stock option
exercises, restricted stock, or restricted stock units. For purposes of clarity,
Compensation shall include amounts described in the first and second sentence of
this Section 1.10 that are paid with respect to the pay period in which such
Participant’s Separation from Service occurs, but which shall not include payouts
for unused accrued vacation paid as a result of the Separation from Service or any
amounts paid as severance.
Notwithstanding the foregoing, the Benefits Committee may, in its sole
discretion, identify specific forms of compensation to be included in or
excluded from a Participant’s Compensation, provided that such Benefits
Committee action shall be taken prior to the deadline for submitting deferral
elections under Code Section 409A.

Apple is more than just a company because its founding has some of the qualities
of myth … Apple is two guys in a garage undertaking the mission of bringing
computing power, once reserved for big corporations, to ordinary individuals with
ordinary budgets. The company’s growth from two guys to a billion-dollar
corporation exemplifies the American Dream. Even as a large corporation, Apple
plays David to IBM’s Goliath, and thus has the sympathetic role in that myth.

Stock
Base Total Yearly
Level Title Location Grant Bonus
Salary Compensation
Value
ICT 2 Software Cupertino 125 50 200
 Stock
Base Total Yearly
Level Title Location Grant Bonus
Salary Compensation
Value
Engineer
ICT2 Software Cupertino 95 80 20 120
Engineer
ICT2 Software Cupertino, 105000 8 160
Engineer CA
ICT2 Software Cupertino, 155000 350000 267
Engineer CA
ICT2 Software Cupertino, 120000 90000 25000 167.5
Engineer CA,
ICT2 Software Cupertino 120 40 25000 185
Engineer
ICT2 Software Cupertino, 25 150
Engineer CA
ICT2 Software Cupertino, 120000 90000 163
Engineer CA
Ict3 Software Cupertino 140 40 20000 200
Engineer
ICT3 Software Cupertino 20 200
Engineer

THE END