Apple Inc. Analysis: Company’s Performance

Examine the countries where your company does business according to where they rank on the Hofstede cultural dimensions. Think of some examples of how a U.S. manager would need to modify his or her behavior when communicating with associates from one or more of these foreign countries.

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Apple is an extended company that operates in many countries. A U.S. manager would need to modify his or her behavior when communicating with associates from China, for example, as they are very collective. Moreover, their power distance is high. Japan is less individualistic than the U.S. but more than China. As a result, the manager is to show that one is a part of a collective and need to cooperate with associates tightly but maintain distance. It is also crucial to remember that the long-term orientation is to be taken as a basis.

Does your company operate in any countries that are considered very politically or economically risky?

Some people claim that China is politically risky, as its court depends on the government greatly. Thus, the government can interfere in commercial and other disputes. It is also said that there are many business disputes connected with violence and threats (Investment climate statement – China, 2015). An example of an economically risky country is India, as it is still a developing country that does not have a stable economy. Apple Inc. operates in it through distributors.

Does your company primarily operate in civil law or common law countries? What are some of the implications of this?

The company operates in both civil law and common law countries. Still, the majority of the firms are found in the common law countries, which are similar to the native one and make it easier to manage the business, as the organization is familiar with the case law. However, the number of firms in civil law countries is not much lower in total (Apple Inc. n.d.).

Has your company purchased any insurance from the U.S. Overseas Private Investment Corporation (OPIC)?

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Apple Inc. seems to have no insurance from the U.S. Overseas Private Investment Corporation. Moreover, it is said that the company does not maintain insurance coverage (Annual report, 2009).

What are some key intellectual property protections, if any, that your company possesses? When do these protections (e.g., patents) expire? How does your company intend to recoup lost revenues due to any patent or other intellectual property protection expirations?

The innovations made by Apple Inc. are claimed to be its key intellectual property. To protect it, the company trademarks the products, refers to patents and copyrights as well as licenses. The standard patents are said to expire in 2028.

Find the Corruption Perceptions Index (CPI) score for two countries where your selected company does business, one country with a relatively high score and one country with a relatively low score. Search for news stories about corporate financial scandals in these two countries. Prepare a short summary of news stories about financial scandals in these countries. Briefly describe what you perceive are the risks of corruption, such as paying bribes, that your selected company might face in these countries.

The Corruption Perceptions Index score for Canada is 81 and for China is 36 (Corruption perceptions index, 2014). The corruption scandal that took place in the previous year in China involved 110 employees. They took money for prescribing different medicines. As a result, GlaxoSmithKline was fined £300m (Ward, 2015). In Canada, Triglobal had unregistered executives. Almost 300 investors lost more than $86 million (A decade of financial scandals, 2011). So Apple Inc. should be aware of the high risks of corruption in China and keep a close eye on the employees. In Canada, it should check the firms they cooperate with; still, the risks of facing problems are low.

Determine your company’s mode of entry into foreign markets. This should be based upon a serious analysis of your company’s risk-return tradeoff. In your opinion, has your company taken the right approach?

Apple Inc. enters new countries with the help of distributors. They sell their products near similar ones that belong to other firms. They check how the population reacts to their products in this way and also by dint of apps, online stores. Seeing that they are in demand, Apple opens its own retail store in the country. The products are also produced in countries with cheap labor, which allows the company to benefit.

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Does your company have an exit strategy? Recall that exit strategy are to be determined before entry into the foreign market, rather than after entry.

As there is no information regarding Apple’s exit strategy, it seems that it does not exist. Many people including Raheja (2012) point out that it should be created. They should consider whether it is better to sell the company, create a spin-off, or to sell an operation to employees.

Critically and objectively evaluate how ethical your company’s global operations are and determine if they are good corporate citizens (i.e., do they have a well-thought-out corporate social responsibility program for the long term?).

Generally, Apple’s global operations are ethical, as they take care of the employees, teach them, and award, promote trust and openness. Still, they are confronting with many companies in the market and produce the products using almost economic slave labor in China, which is to be improved.

What is the corporate mission statement of your target company, assuming it has one? How well do the company’s actions adhere to its stated mission?

Its corporate mission statement deals with the creation of change. As can be seen, Apple produces numerous innovative products that allow the industry to develop as well as the whole world. Thus, I believe that the company is doing everything right.

With respect to its strategy formulation, would you categorize your company as a shareholder model or a stakeholder orientation? Why?

Apple is interested in the total performance of the company but not just the stock, which allows categorizing it as a stakeholder orientation.

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Is the company a stateless corporation? If not, is the company on its way to becoming a stateless corporation?

Today Apple is not a stateless corporation, as it is mainly focused on the U.S. Still, it is expanding and maybe soon evenly distributed among different countries.

What type of organizational structure is the company currently using?

Apple’s organizational structure is really successful, and it allows the company to increase its benefit and become more and more popular. It is a collaborative structure with command and control hierarchies, which makes the employees close to each other, creates a supportive environment, and enhances the process of achieving common goals. With the help of collaboration, people design more effective innovative ideas, which allows the company to act according to its mission statement.

Do you think the company may benefit from a hybrid or matrix structure? Why or why not?

Hybrid structure presupposes the hiring of huge staff members at different levels. Such an approach will not be beneficial for the company, as it will create distance between the leaders and followers and more conflicts will occur, which will not allow the company to innovate effectively. Matrix structure seems to be advantageous due to its flexibility and absence of isolation. As the communication among the personnel with different views is motivated, more new ideas will occur.

References

A decade of financial scandals. (2011). Web.

Annual report 2009. (2009). Web.

Corruption perceptions index. (2014). Web.

Investment climate statement – China. (2015). Web.

Raheja, D. (2012). Apple needs to find its exit strategy from China. Web.

Ward, A. (2015). GSK fires 110 staff in China after a corruption scandal. Web.

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