In order for a company to be successful, the organization must have a systematic process of making decisions about locals and activities that the group will pursue in order to achieve its Objectives. Furthermore, planning is an effort that is directed and controlled by managers of an organization and draws on the knowledge and experience of employee’s throughout the organization (Bateman and Snell, 2009). This paper will discuss the planning functions of management within Apple Inc. Apple Inc. , was co-founded by Steve Jobs and Steve Waking, in 1976.
Steve Jobs who revolutionized consumer technology, was able to slash expenses from $8. 1 billion in 1997 to $5. 7 billion in 1 999 by outsourcing manufacturing, rimming inventories, shifting 25% of sales to an online store, and slicing the number of distributors from the double digits to two (Bloomberg Businesslike, 2000). In addition to outlining Apple’s planning function of management, this paper also discusses legal, ethical, and social responsibility issues that impact Apple Inc. And its success. For example, in 1994, Apple Computer Inc. Was in a lawsuit with Microsoft Corporation over patent protection (Sherman, 2010).
Finally, the paper will conclude with three factors that influence Apple’s strategic, tactical, operational, and contingency landing. Factors include innovation, profitability, and resources to take advantage of opportunities for growth. Employee’s lack of commitment is also a factor that can affect the tactical planning within the planning function. Additionally, environmental issues also have an effect on Apple’s contingency planning. Planning Function of Management within Apple Inc. Strategic planning involves making decisions about an organization’s long- term goals and strategies (Bateman and Snell, 2009).
Strategic goals are major targets or end results that relate to the long-term survival, value, and growth f an organization (Bateman and Snell, 2009). It is customary that top-level managers establish the strategic goals that reflect effectiveness and efficiency. Typical strategic goals include growth, increasing market share, improving profitability, boosting return investment, fostering quantity and quality of services and goods (Bateman and Snell, 2009). Apple Inc. Was co- founded by Steve Jobs and Steve Waking, in 1976, in which they worked out of their garages. Steve Jobs had a vision to be the best in consumer technology.
Apple ignited the personal computer revolution in the 1 9705 with he Apple II and reinvented the personal computer in the asses with the Macintosh. 1 983 Apple lost its position as chief supplier of personal computers in Europe to IBM. Apple attempted to make a comeback by marketing the Lisa computer which did not sell well. The factor that influenced Apple’s strategic plan ins at this point was the innovation of the team as well as the competitors. Apple was having difficulty designing the software to link together a number of Alias and was finding it hard to break Vim’s hold on the business market.
As a result, Apple’s earning went down ND its stock plummeted (Funding Universe, 2010). Steve Jobs ended up resigning from the company; however, he was not going to walk away silently. In addition to Apple’s loosing its position, the company has faced many legal issues as well. Apple sought to prevent Microsoft from using graphical user interface as their patent (Funding Universe, 2010). Court proceedings lasted four years and as a result, the court ruled with Microsoft, with the exceptions of a few minor applications that Apple is able to use in its marketing.
Tactical planning translates broad strategic goals and plans into specific goals and Lana that are relevant to a definite portion of the organization (Bateman and Snell, 2009). Despite the problems with Apple Ill, the company forged ahead, tripling its 1981 research and development budget to $21 million, releasing 40 new software programs (Reference for Business, 2011 An important factor that could have affected the tactical planning is a lack of commitment with the employee’s.
On the contrary, Jobs was able to provide leadership through his research and development team which was responsible for Apple’s comeback. On an ethical level, one of Apple’s suppliers, Winter, was reported o have been using poisonous chemicals which injured 49 workers in addition to using child labor to make Apple products (Rob Underlie, 2010). Both of these ethical issues could affect Apple or any other company’s success that is caught employing these acts.
It is a necessity that Apple holds a high value with their social responsibility. Well-executed strategic planning provides the vision, direction and goals for the organization, but operational planning translates that strategy into the everyday execution tactics of the business that will ultimately prod cue the outcomes defined by the strategy. Operational planning is the conversion of strategic goals into execution. Through Steve Jobs operational planning, he was able to slash expenses from $8. 1 billion in 1997 to $5. Billion in 1999 by outsourcing manufacturing, trimming inventories, SSH fitting 25% of sales to an online store, and slicing the number of distributors from the double digits to two through his strategic planning (Bloomberg Businesslike, 2000). Today, Apple has made a comeback with its products such as phone, pad, and the Macintosh (Funding Universe, 2010). Business dictionary defines contingency planning as an activity that is undertaken to ensure that proper and immediate follow-up steps will be taken by a management and employees In an emergency (2010).
The major objectives of contain engine planning are to ensure that containment of damage or injury to, or loss of, personnel and property, and to continuity of the key operations of the organization. Preparing a contingency plan in advance is the first step to ensure an organization is appropriately prepared for a crisis. A major factor that can affect an organization’s contingency plan are environmental issues. Specifically, Apple was confronted by Greenback, n environmental organization, on several environmental issues (Bloomberg Businesslike, 2000).
As stated before, the chemicals Apple was using, especially with the phone hardware, have serious health effects (Sherman, Erik, 2010). As a result, Steve Jobs announced a plan to eliminate such chemicals by the end of 2008 (Sherman, Erik. (2010). Customers and environmental organizations hold environmental issues very seriously. A company who wants to succeed in today’s business world needs to ensure their contingency plan is covered on all bases that have long-term effects in TTS decisions. Summary Apple’s planning function of management has seen many changes, up and down, throughout that last century.