Organizational Transformation

Transformation of Apple

Introduction

Formerly known as Apple Computer Inc., Apple Inc. is a multinational corporation that generates its revenues primarily through the production and sale of consumer electronics, commercial servers and computer software programs. The company was established in the year 1976 in Cupertino, California and incorporated in 1977. Apple has always been on the forefront in terms of introducing new technological innovations and novel concepts to the world. Some of the world-leading products sold under the brand include the iPad, iPhone, iPod and Mac computers. Over the years, the company has established a reputation among its leading competitors as well as its consumers all around the globe. This is primarily due to the fact that the company has introduced market-leading technologies that have heralded paradigm shifts in technological innovation.

Perhaps, it is for this reason that Fortune Magazine has ranked the company as the most admired company in the United Stated in the year 2008 and the most admired company in the world for the years 2008, 2009, 2010. Sometime after its inception, Apple became widely known for sparking off a revolution in the 1970s with the introduction of the personal computer named Apple II. In the 1980s, it proved its ability to lead through innovation in technology with the introduction of the Macintosh. Apple has always been committed to providing its consumers with the best personal computing experiences. This is one of the main reasons why the company has enjoyed such as wide, diverse global fan base of consumers that transcends the boundaries of geography, age and gender.

Wake-up Call

The subject of organizational change was one that was widely debated in the organization during the year 2005. This is because it was the time when a band of new multinational companies entered the global arena and made clear the intention that they were direct competitors of Apple (www.icmrindia.org). Global giants Samsung and Sony electronics were the first companies to express their interest to invest in the development of new technologies. By introducing a range of innovative technologies and some unique concepts to the global technologies market, these companies were successful in capturing a significant portion of the global market. As a result, the profit margins of the company were affected to a certain extent and sales revenues across the globe suffered too. It was imperative for Apple to devise more effective strategies that would help it to become more competitive in the global arena and allow it to widen its competitive moat. The initiative to adopt organizational transformation seemed to be the ideal option for the company to streamline its processes and make it more competitive in the global arena.

Another major concern for the company was the fact that a certain level of inefficiency was identified in some of the businesses processes and this was affecting the overall efficiency of the business. The research and development department for instance was not performing at par with other major competitors of the company and this was causing a loss in global ...