Organizational Case Analysis Case Study

Pages: 8 (2539 words)  ·  Bibliography Sources: ≈ 8  ·  File: .docx  ·  Level: College Junior  ·  Topic: Business

SAMPLE EXCERPT . . .
Moreover, many of the components which are available from the multiple sources may sometimes face wide industrial shortage, which may lead to the significant increase in the price of these components. Meanwhile, the effect of shortage of these components may have impact on the company financial conditions, and operating results. Additionally, the company often use some custom components to manufacture its products, and the components are only available from the limited sources.

Based on the issues having impact on the optimal performances of the organization, the paper provides recommendations that Apple Inc. should implement to address the problems.

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The organization theory is used in describing the strategy Apple could employ in addressing the current problems having impact on the optimal performances of the company. Organization theory focuses on the formal organization and the strategy to enhance management efficiency in order to achieve organizational productivity. The organization theory argues that an organization needs to develop appropriate approach to achieve efficiency, specialization, simplification, and standardization. With complexity of challenges that organization is facing in the contemporary business environment, organization theory explains that managers must be able to use multiple perspectives in addressing the problems. Organization theory also focuses on how an organization could implement integration and coordination to achieve the overall strategic objectives. An organization facing environmental challenges should use coordination and integration to ensure that all sub-systems work towards common goal. As being explained by organization theory, "as the organization encounters environmental complexity, diversity and change, it requires more and more differentiation of its units. Need for integration also increases with increase in structural dimensions." (Natural Resources Management and Environmental Department 2010 P. 5). Organization theory provides the following steps to address the challenges facing an organization:

Setting the organizational goals.

Establishing performance criteria.

Case Study on Organizational Case Analysis Organization Overview Assignment

Defining and classifying the problem.

Developing criteria to achieve successful solution.

Generating alternatives.

Comparing alternatives to criteria.

Choosing an alternative.

Implementing the decision.

Monitoring the decision and getting feedback.

Based on the suggestion of organization theory, the study provides recommendations that Apple should employ to address the challenges facing the company.

Recommendations

To remain competitive, Apple Inc. needs to continuingly supply timely and innovative products in the market, and the company needs the essential components to manufacture these products. Based on the occasional shortage of the materials, it is critical for Apple Inc. To find the solution to get surplus materials to address the shortage of the components. One of the recommendations that Apple Inc. should employ is to increase the funding on research and development (R&D) in order to manufacture the alternative quality component for the materials. Typically, Apple Inc. always focuses on R & D. To develop innovative and quality products for the company, and the company has always been successful in the manufacturing of the high quality products. With the success that the company has enjoyed from the implementation of R&D, it is very critical for Apple Inc. To increase the funding on R & D. To develop new components for its products in order to address the shortage of some of the components used to manufacture its products. There are several advantages that Apple Inc. could derive from increasing the funding on R&D for the discovering of the new components:

First, apple Inc. will be able to address the problem of shortage of materials that the company is facing in the manufacturing of its products. Typically, by having abundant of components for its products, Apple Inc. will have more power over its suppliers. Having power over suppliers is critical to lower the cost of production because the company will be able to procure its materials at low costs since there is alternative method that the company has developed to procure its materials. Moreover, Apple Inc. will lower the costs of operations if the company could achieve timely procurement of materials, and the company will be able to increase its future revenue.

Strategy that Apple Inc. could employ to address the problem of credit risks such as foreign currency fluctuation, changes in interest rates, and global market risks is to use derivative instruments to mitigate these risks. The derivative instrument that the company could use to mitigate the credit risks is to enter into the interest rates agreement and forward foreign currency exchange agreements. The company could use foreign currency exchange agreement to mitigate the exchanges in fair values of foreign currencies. Additionally, the company could enter into fair value hedging to mitigate the impact of the fluctuation of the interest rates. The company could also employ cash flow hedging to reduce the variability of the company cash flow, and foreign currency fluctuation.

Finally, Apple Inc. should establish legal department that would focus on the strategy that the company would use in complying with domestic and international regulations that may have impact on the company operations. It is critical for the company to have full knowledge of both domestic and international laws that could affect the company in order to develop strategy to comply with the laws and regulations. The company should also implement training for its entire employee on the aspect domestic and international regulations so that all employees would comply with all the regulations that may affect Apple business process.

Conclusion

The paper identifies the issues having impact on business process of Apple Inc. Part of the issues identified is the shortage of materials that the company uses to manufacture its products. Additionally, the study identifies credit risks and compliance with the local and international regulations as the major issues having impact on the company business operations. The paper recommends that Apple Inc. should divert the R & D. In securing alternative components for the company. The company should also use derivative instrument in mitigating the credit risks.

References

Apple Annual Report (2011). Apple Annual Report 2011. Apple Inc.2011.

Caixing, L. & David, Y. (2011).An Analysis of the Impact of the Sarbanes-Oxley Act on Earnings Management. Advances in Management.4(6): 25-31.

Elmer-DeWitt, P. (2011). Rethinking Apple's Org Chart. A Time Warner Company.

Griffin, R.W. & Moorhead., G. (2011). Organizational Behavior: Managing People and Organizations. Cengage Learning.USA.

Miller, S.E. (2011): Impact of the Sarbanes-Oxley Act on Foreign Companies in the United States: An Analysis. International Journal of Management. 28 (1):… [END OF PREVIEW] . . . READ MORE

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