UNIVERSITY OF DHAKA

Department of International BUSINESS

Course Code: IB-102

Term Paper On

Motivation Process of Apple Company

Prepared by:

Safiullah Hossain Mollick

ID No. 06201249

Supervisor:

Professor Dr. Khondoker Bazlul Haque

Date of Submission:

15/7/2013

Acknowledgement

I would like to thank our honorable course teacher, Professor (Dr) Khondoker

Bazlul Hoque, Lecturer, Department of International Business, University of

Dhaka, for his kind and considerate help for the preparation of Term paper on

“Motivation Process of apple Company”. He has helped me throughout the time

and has given me advice and guidance for any kind of help I wanted without being

a bit irritated. His helpfulness has always inspired me. I would be ever grateful to

him.

In course of writing this paper, I have so far given my best effort to prepare and

represent the term paper according to instruction of our honorable supervisor. I

hope my endeavor will be beneficial to the audience and urge for exonerate eye for

any mistake or error found in the report.

Letter of Transmittal

27th May, 2013

Dr. Khondoker Bazlul Hoque

Professor

Department of International Business

Faculty of Business Studies

University of Dhaka

Dear Sir,

I am submitting the term paper entitled Motivation process of Apple Computers.

The purpose of this assignment is to provide information about the context of motivation process

system of Apple Computers and how the Company influences the corporate business environment.

I hope this term paper will prove to be satisfactory.

Respectfully yours

_______________

Safiullah Hossain Mollick

Roll: 49

Batch: 6th

Department of International Business

University of Dhaka.

Executive Summary

Chapter 1introduction to the research problem & it's rational for study,

objectives, methodology and limitations. Chapter 2 discusses about an

overview of Apple Computers. It includes history, vision, mission,

company objectives, product range, human resource management,

marketing, production, corporate social responsibility etc. Chapter 3

analyses Apple Computers as well as other top potential same nature

companies’ performance. From this analysis I have find out some

strength of Apple Computers and they are - advantage of high

technology, strong research and development department, advantage of

brand name, well skilled employees etc. Chapter 4 discusses about

Conclusion & recommendation.

Table of Contents

Executive Summary

Chapter -1: Introduction

1.1 Statement of the research problem and Rationale for its study

1.2 Objectives of the study

1.3 Methodology of the study

1.4 Limitations of the study

Chapter -2: An overview of Apple Computers

2.1 History

2.2 Vision

2.3 Mission

2.4 Company Objectives

2.5 Product Range

2.6 Organ gram

2.7 Major Functional Areas

2.8 Corporate Social Responsibility

Chapter -3: Findings and Analysis

3.1 SWOT Analysis for Apple Computers

3.2 Motivation Processes Adopted by the Company

3.3 An Overview of Apple Company Workers

3.4 Importance of Brand & Motivation to the Company

3.5 Two factor Theory (Herzberg)

Chapter -4: Recommendations and Conclusion

Bibliography

Annexure/Appendices

Chapter 1: Introduction

Research problem & Rationale for its study

Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics,

computer software and personal computers. Its best-known hardware products are the Mac line of computers, the IPod music player, the iPhone smartphone, and the iPad tablet computer. Its

consumer software includes the OS X and IOS operating systems, the ITunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites

As of May 2013, Apple maintains 406 retail stores in fourteen countries as well as the online Apple Store and iTunes Store the latter of which is the world's largest music retailer. Apple is the

second-largest publicly traded corporation in the world by market capitalization, with an estimated value of US$414 billion as of January 2013. As of September 29, 2012, the company

had 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide. Its worldwide annual revenue in 2012 totaled $156 billion. In May 2013, Apple entered the top ten of the Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking

to take the sixth position.

So, studying the motivation Process of Apple Computers will help us to understand how a large incorporation like Apple operates their motivational strategies and how other multinational

company can improve following Apple`s policy. Furthermore, as some of our local companies are now improving their selves as multinational, so they can also take some idea from these

policies.

Objectives of the Study

The main objective of this study is to analyze the Motivation Process of Apple Computers.

Specific Objectives are:

◆ To find the reasons behind the growth of Apple Computers.

◆ To analyzing the current Motivation process of Apple Computers.

◆ To find out the problems facing by Apple Computers in motivating.

◆ To find out ways how Apple Computers become successful.

Methodology of the Study

The strategies used by the company previously were analyzed and a SWOT analysis was done on the

company. The report examines the importance of motivation to Apple Computers. It also includes why

workers work in this firm.

Limitations of the Study

There have some limitations when preparing this report:

i. Due to time constraints and unknown data sources regarding motivation processes, unable to

collect sufficient data for this paper.

ii. Global and operational information are collected from the web base secondary sources which

are relatively accurate.

iii. Presentation and discussion made in this paper may be inappropriate in some cases.

Sources of Data

Primary Sources:

Primary data is collected by observing culture and management practices of home country

companies.

Secondary Sources:

The secondary data is collected for this paper from:

1. Internet 2. Studying Documents written on Apple Computers 3. Going through the book

4. Study many articles written on motivation at different companies of different countries.

Chapter 2: An Overview of Apple Computers

History

Apple Incorporation formerly Apple Computer Inc. is a multinational corporation that creates

consumer electronics, personal computers, computer software, and commercial servers, and is a

digital distributor of media content. Apple's core product lines are the iPhone smart phone, iPad

tablet computer, iPod portable media players, and Macintosh computer line. Founders Steve Jobs

and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of the

Apple, and incorporated the company on January 3, 1977 in Cupertino, California.

The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on

January 3, 1977. The word "Computer" was removed from its name on January 9, 2007,

reflecting its shifted focus towards consumer electronics after the introduction of the IPhone.

For more than two decades, Apple Computer was predominantly a manufacturer of personal

computers, including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and

low market share during the 1990s. Jobs, who had been ousted from the company in 1985,

returned to Apple in 1996 after his company NEXT was bought by Apple. The following year he

became the company’s interim CEO which later became permanent. Jobs subsequently instilled

a new corporate philosophy of recognizable products and simple design, starting with the

original IMac in 1998.

Apple is the world's second-largest information technology company by revenue after Samsung

Electronics and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune

magazine named Apple the most admired company in the United States in 2008, and in the world

from 2008 to 2012. However, the company has received criticism for its contractors' labor

practices, and for Apple's own environmental and business practices.

With the introduction of the successful iPod music player in 2001 and iTunes Music Store in

2003, Apple established itself as a leader in the consumer electronics and media sales industries,

leading it to drop "Computer" from the company's name in 2007. The company is now also

known for its IOS range of smart phone, media player, and tablet computer products that began

with the iPhone, followed by the IPod Touch and then iPad. As of 2012, Apple is the largest

publicly traded corporation in the world by market capitalization, with an estimated value of

US$626 billion as of September 2012. Apple Inc's market cap is larger than that of Google and

Microsoft combined. Apple's worldwide annual revenue in 2010 totaled US$65 billion, growing

to US$127.8 billion in 2011 and $156 billion in 2012.

Vision

Apple’s Vision statement clearly states their long-term goals for the future. They are committed

to bringing the best computing and learning experiences to consumers and through their

continuous research and launch of new products they are able to give their target markets what

they want. Apple’s vision is to become the “best” at designing and manufacturing electronic

devices in the world. They set their quality standards high using the word “best” and so far they

have yet to fail. Their vision is a promise to the consumers. They are “committed” in producing

high quality products and providing high quality service thus setting high industry standards for

other competitors.

Apple lives this vision through the technologies it develops for consumers and corporations. It

strives to make its customers masters of the products they have bought. Apple doesn't simply make a statement. It lives it by ensuring that its employees understand the vision and strive to reach it. It has put systems in place to enable smooth customer interaction. It has put objectives

in place to continuously move forward; implemented strategies to fulfill these objectives; and ensured that the right marketing, financial and operational structures are in place to apply the

strategies.

Mission

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork, and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store,

and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.

Company Objectives

Apple's motto, "Think Differently," is a concept that the company does very well by creating

innovative products that continue to define the world of computer design. Other computer manufacturers have attempted for decades to replicate the icon classic appeal of the Apple design. None have succeeded in the manner of Apple. When Steve Jobs assumed the post of

CEO in 1998, he re-revolutionized the entire company. Apple introduced the iMac and iBook product lines for the more basic computer buyers and the Power Book and G series computers

for the advanced purchasers. Apple continues to forge ahead in design with the introduction of the iPod digital music player and the iTunes Web site for the sale and download of music. Among giant rival firms, such as IBM, Apple is on the forefront of a revolution of technology,

integrating music, images, and animation. History Founded in 1976 in a garage in Santa Clara, California, Apple is the brainchild of Steve Wozniak and Steve Jobs, two college dropouts who sought to provide a user-friendly computer to a new and distinct market of small computer users.

Between 1978 and 1980, sales increased from $7.8 million to $117 million, and in 1980 the company underwent its initial public stock offering. In 1983, Steve Wozinak left Apple. That

same year Steve Jobs hired away John Sculley from Pepsi to be the company's president. After

experiencing several product failures, Apple unveiled the Macintosh computer in 1984 to overwhelming success, setting the stage for Apple's rise and its recognition as a household name.

By 1985, relations between Sculley and Jobs became contentious. In 1997, Gilbert Amelio, Apple's current CEO, orchestrated the purchase of the company Next-Step from Apple founder

Steve Jobs. The NeXT operating system was a vast improvement over the then outdated Macintosh operating system. At the time of the purchase, it was hoped that the NeXT operating system could be used to upgrade and overhaul the Macintosh operating system.

However, sales in the corporate and education sectors continued to fall, and Apple was forced to trim its workforce by 30 percent, canceling projects and trimming research costs.

Apple also implemented other cost saving measures, including canceling the Newton handheld device and the production of printers. In addition, Jobs streamlined Apple's product line. Pryor to Jobs’ return, Apple produced 12 versions of the Macintosh computer, none profitably. Jobs

refocused Apple to concentrate on two markets: consumer and professional. The professional series of Macintosh computers would have the prefix "Power," such as the Power Mac desktop

series and the PowerBook laptop series. Steve Job’s leadership has led to the adoption of USB and, later, Fire-wire ports for digital connection of the computer to peripherals.

Product Range

Apple Inc. (NASDAQ: AAPL; NYSE: AAPL; previously Apple Computer, Inc.) is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of

computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the

iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari internet browser; and IOS, a mobile operating system. As of

August 2010, the company operates 301 retail stores in ten countries, and an online store where hardware and software products are sold.[5] As of May 2011, Apple is one of the largest

companies in the world and the most valuable technology company in the world, having surpassed Microsoft.

Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the company was previously named Apple Computer, Inc., for its first 30 years, but removed the

word "Computer" on January 9, 2007, to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. As of September 2010, Apple had 46,600 full time employees and 2,800 temporary full time

employees worldwide and had worldwide annual sales of $65.23 billion. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive

advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United

States in 2008, and in the world in 2008, 2009, and 2010. The company has also received widespread criticism for its contractors' labor, environmental, and business practices.

Organ gram of Apple Company

According to the composition of Apple's Executive Board, I think this chart is quite correct up to the 2nd level. As can be seen, there's no one in charge of HR reporting directly to Steve at all, which makes me wonder why HR is not centralized in this case. Also, I find it a bit awkward that Education, Online Store, Outsourcing and Apple Care fall under the same reporting level as Americas, Asia and EMEAI (Europe, Middle East, Africa and India). And why are Americas and Asia managed under one person but not under different managers (while total sales of Americas and Asia are substantially more than that of EMEAI) Hope I can get some insights from the experts here.

Major Functional Areas Even in the smallest business a number of key tasks, or functions, must be done regularly. Stock must be bought,

bills must be paid, customers must be served and customer enquiries must be answered. In a small firm all these jobs

may be done by one or two people. In a large organization, people specialize in different tasks. Tesco and

Sainsbury’s, for example, have buyers to purchase the stock, accounts staff to pay the bills, checkout staff to serve

customers and customer service staff to answer queries.

Functional areas in business In a large organization, it is usually easier to identify separate functional areas because people work together in

departments. Each department carries out the tasks that relate to its particular area. The main ones you are likely to

meet in business are shown below.

The purposes of functional areas

The main purpose of functional areas is to ensure that all important business activities are carried out efficiently. This is essential if the business is to achieve its aims and objectives. In addition,

specific areas will be responsibility for supporting specific types of aims and objectives, for example: sales and marketing will be involved in achieving targets linked to developing new markets or increasing sales human resources will be involved in arranging staff training activities

and supporting the continuous professional development of all staff finance will be expected to monitor and support aims and objectives linked to keeping costs low to improve profitability

production will be set targets relating to quality or meeting planned production schedules.

The administration function

Administration is a support function required by all businesses – and this does not mean just doing keyboarding or filing. Senior administrators carry out a wide range of tasks, from

monitoring budgets to interviewing new staff for their departments. Routine administrative tasks include opening the mail, preparing and filing documents, sending emails and faxes. Others

require more creativity and flexibility, such as arranging travel or important events, from staff meetings to visits by foreign customers.

The Human Resources (HR) function

The human resources of a business are its employees. Wise organizations look after their staff on the basis that if they are well trained and committed to the aims of the business, the organization is more likely to be successful. HR is responsible for recruiting new employees and ensuring that

each vacancy is filled by the best person for the job. This is important because the recruitment process is expensive and time-consuming. Hiring the wrong person can be costly and cause

problems both for the individual and the firm. Analyzing staff-turnover figures will show the rate at which people leave the organization. If these are high, it is important to identify and remedy any problem areas. Whilst people may leave

for justifiable reasons, such as moving to another area or for promotion elsewhere, dissatisfaction with the job or the company should be investigated.

The marketing function

Marketing is all about identifying and meeting customer needs. Many businesses consider this so important that they are said to be marketing led. In this case, everyone in the organization is

trained to put the customer first – from the production worker, who has to produce high quality goods, to the accounts clerk, who must respond to a customer enquiry promptly and accurately. Another way to understand marketing is through the marketing mix which consists of four Ps.

Product – Who are our customers? What do they want to buy? Are their needs changing? Which

products are we offering and how many are we selling? What new products are we planning? In which areas are sales growing – and how can we sustain this? For which products are sales static – and how can we renew interest? Which sales are falling and what, if anything, can we do?

Price – How much should we charge? Should we reduce the price at the start to attract more customers – or charge as much as we can when we can? Can we charge different prices to

different types of customers? What discounts can we give? What services or products should we give away or sell very cheaply – and what benefits would this bring?

Promotion – How can we tell people about our products? Should we have specialist sales staff? Where should we advertise to attract the attention of our key customers? How else can we promote the product – should we give free samples or run a competition? Where and how can we

obtain free publicity? Should we send direct mail shots and, if so, what information should we include?

Place – How can we distribute our product(s)? Should we sell direct to the customer or through retailers? Do we need specialist wholesalers or overseas agents to sell for us? What can we sell over the telephone? How can the Internet help us to sell more?

All these questions are considered by marketing staff. They start by identifying future customer needs. Products are then developed (or adapted) or services offered to meet these needs. If this is

done well, it gives the company an edge over its competitors. This happened when Apple introduced the iPod.

The research and development (R & D) function

This function is concerned with new product developments as well as improvements to existing products or product lines. In many industries, it also involves product design as well. Improvements to existing products are often ongoing as a result of market research or customer

feedback (see page 00). You can see these improvements around you all the time – such as ring-pull cans, microwavable containers for ready meals, transparent jug kettles and memory sticks

for computers.

CORPORATE SOCIAL RESPONSIBILITY AT APPLE

News of Steve Jobs’ death sent shockwaves through the technology industry, a world that he, in large part, shaped with his career. Apple’s executives are now left with the challenge of how to

lead a company, whose identity has been inextricably linked to Jobs’ for decades. The task is formidable, especially when Apple’s fanatically loyal customer base is considerably less certain about what to expect from CEO Tim Cook.

Apple still needs to embrace the core values that make it a “cool” company: in short, that owning

an Apple product secures membership in a select group. While Apple is perhaps overdue for a CSR strategy, the decision to enact donation matching is decidedly not the "Apple Way." The

sequence of events surrounding last month’s announcement as well as the fundamentally uncreative quality of the program presented imply that Cook is only responding to media pressure rather than bringing to CSR the same kind of innovative and inspiring vision for which

Apple is so highly regarded. And in that regard, the corporate matching program is a fail.

Integrity: Any major organizational change is accompanied by insecurity. The transition from Jobs’ approach to hiring and firing is bound to create uncertainty among employees, and in

corporate environments uncertainty inevitably creates pernicious maneuvering and second guessing at middle management levels. The new CSR initiatives should present both the company and its new CEO with a unique opportunity to promote an image of integrity and to

differentiate the new leadership from that of the Jobs era. However, philanthropy is not a good place to start. It should start from inside, promoting trust and openness, the internal integrity.

Empathy: Empathy creates emotional bonding between the company and stakeholders allowing

companies to endure a difficult time. Apple is currently embroiled in lawsuits that are likely to restrict consumer choices in the future if it carries on. Publishers are frustrated by Apple’s hammerlock over apps and magazine subscriptions on the iPad. There have been indications that

Samsung, Apple's most threatening competitor, angered by patent law suits, will finally fight back to counter sue Apple. While from Apple’s point of view, taking legal action against

competitors may seem necessary as a means of protecting innovation, public opinion works differently. For multinational companies the legal victory can often end with a kind of zero sum game, leaving it with a reputation for arrogance and insecurity. Apple will have to worry about

its reputation all the more so if it wins the battles against competitors.

Zeal: Zeal is perhaps the virtue most-embedded at Apple’s core and is represented by their continuous innovation and excitement in terms of products and customer experience. By

emphasizing CSR, Tim Cook would need to bring that famous Apple zeal to social issues, offering an innovative approach, as competitor Google did, when it famously began encouraging

its employees to spend 20% of their time on their own projects.

It goes without saying that Cook and Apple are standing at a precipice. Product innovations can be short-lived. A serious CSR strategy could quietly shift Apple’s sales pitch from personal charisma to the great public good, doing Apple good in the long term.

Chapter 3: Findings and Analysis

SWOT Analysis for Apple Computers

Strengths

Global recognition and strength - The company is positioned . The products of the

company are well distributed in all major markets making the company a household name for its

products.

Diverse product range - The Company has invested heavily in major business fields giving it

a wide range of products. These products are categorized into both long and short term products.

Among the long term products are Mac laptops while short term products include iPhone, iPad

and iPod.

A decentralized organization - Structures are designed in such ways where management is

done at the regional levels thereby reducing the burden of cross border transaction and

communication.

Relationship - The Company has well established international relationship with both

customers and employees.

Customer loyalty combined with expanding closed ecosystem - While at first Apple’s

closed ecosystem was a weakness for the business, this has now changed. First, Apple now has a

full range of apps, software and products that are interlinked and support each other. Second,

new products and supplements will be released soon (iTV), hence expanding the ecosystem.

Third, Apple has a strong customer loyalty, which increases due to Apple’s closed ecosystem,

which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding

closed ecosystem and customers’ loyalty increases firm’s competitive advantage.

Apple is a leading innovator in mobile device technology - Apple has been chosen as the

most innovative business in the world for the 3rd time in 2012. Company’s core competency of

producing innovative products is the strength the company builds upon and is able to bring the

most innovative products to the market.

Strong financial performance ($10,000,000,000 cash, gross profit margin 43.9% and no

debt) - Apple’s financial performance is one of the best among many companies. Company

currently (end of 2012) holds about $10,000,000,000 in cash, which can be used for acquisitions,

buying back company shares and other matters. It also has higher gross profit margin than its

main competitors, which is equal to 43.9%. Company has no debt and is not directly affected by

interest rates or credit markets.

Brand reputation. Apple has a reputation of highly innovative, well designed, and well-

functioning products and sound business performance. Apple brand is valued at $76.5 billion and

was the second most valuable brand in the world in 2012.

Retail stores. Apple’s retail stores ensure high quality customer experience; provide direct

contact with knowledgeable staff and increases brand awareness. Besides, Apple’s stores are one

of the most profitable in terms of sales/ft2.

Strong marketing and advertising teams. Marketing is one of the strongest functional areas

Apple has. It can sell pricier products, build superior stores (they are more or less built to achieve

marketing goals) and advertise their products in a compelling manner.

Weaknesses

High price. Apple’s products cost much more than its competitors devices. Some critics

argue that the price is not justified. When there’s such a fierce competition, Apple products price

becomes a weakness because consumers can easily opt for similar quality but lower price

products.

Incompatibility with different OS. The iOS and OS X are quite different from other OS and

uses software that is unlike the software used in Microsoft OS. Due to such differences, both in

software and hardware, users often choose to stay with their accustomed software and hardware

(Microsoft OS and Intel hardware).

Decreasing market share. The less market share Apple has, the less it can influence its

potential customers and persuade them to jump into using Apple’s closed ecosystem products.

Patent infringements. The firm is often accused of infringing other companies’ patents and

has even lost some trials. This damages Apple brand and its financial situation.

Further changes in management. Apple has lost Steve Jobs in 2012 and Tim Cook became

the new CEO. Scott Forstall and John Browett (chief of retail) left the company too and this will

have an impact on company’s management, which, as many think, will be negative.

Defects of new products. This is not current Apple weakness but one that jumps out time to

time. Some of Apple’s iPod and iPhone releases had clear faults and thus disturbed sales of the

products and firm’s reputation of superior product performance.

Long-term gross margin decline. Current Apple’s gross margin is one of the highest in the

tech industry but analysts fear that due to increasing component prices and competition current

margins will not be sustained. Hence, glooming firm’s future financial performance.

Opportunities

High demand of iPad mini and iPhone 5. iPad mini sales will increase Apple’s market share

in the tablet market and, will strengthen firm’s competitive advantage.

iTV launch. iTV launch will support Apple TV sales and the products’ ecosystem.

Emergence of the new provider of application processors. Samsung, the main Apple’s

competitor, is also the only provider of application processors for Apple’s products. Apple has to

find a new source for the component but could not find a suitable one yet. Nonetheless, new

manufacturers with superior engineering capabilities are arising and it’s just a matter of

time,when Apple will seize upon the opportunity of being less dependent on its direct

competitors.

Growth of tablet and smartphone markets. Growth of tablet and smartphone markets is a

good opportunity to expand firm’s share in these markets.

Obtaining patents through acquisitions. Apple lacks of some patents to sustain its growth

and the best way to acquire those patents is to acquire the firms holding them. In addition, Apple

could develop new skills and competencies.

Damages from patent infringements. Apple patents are often infringed by its competitors.

Thus, collecting the damages from the companies that do so is a viable opportunity to not only

increase the cash reserves but to damage the competitor’s reputation and sales as well.

Strong growth of mobile advertising market. Apple has developed iAd advertising

platform, which allows advertising on Apple iPhone, iPad and iPod touch. The growth of mobile

advertising market is an opportunity which could be further seized upon.

Increasing demand for cloud based services. Apple could expand its range of iCloud

services and software as the demand for cloud-based services is expanding.

Threats

Rapid technological change: One of the most severe threats Apple and the other tech

companies are facing is rapid technological change. Companies are under the pressure to release

new products faster and faster. The one that cannot keep up with the competition soon fails. This

is especially hard when a business wants to introduce something new, innovative and successful.

Apple was able to bring very innovative products to the market so far but for the moment, even

Apple hasn’t unveiled any plans for the new products (except iTV) and may lack new

introductions to keep up with competition.

2013 tax increases. Tax increases in USA in 2013 will negatively affect Apple.

Rising pay levels for Foxconn workers: Pay levels for Foxconn’s workers already rose 3

times from 2010 to 2012. Foxconn is the main manufacturer of Apple products and the rising pay

level for Foxconn’s workers will likely raise the prices for Apple products.

Breached IP rights: The companies that breach Apple patents might not be discovered soon

and may benefit from it, while weakening Apple at the same time.

Price pressure from Samsung over key components: Samsung has already asked Apple to

pay higher price for its application processors. Due to intense competition and no viable

substitutes, Apple may be asked to pay even more.

Strong dollar: Apple earned more than half of its revenues from outside US. Dollar

appreciation against other currencies reduces potential profits from those countries.

Android OS growth: Android OS is the main competitor for IOS in mobile device market.

The domination of Android decreases IOS power over influencing consumers to join Apple.

Competitors’ moves in online music market. Apple faces threat from online music stores,

such as Amazon, Wal-Mart and online music subscription companies, such as Spotify.

An Overview of Apple Workers

Rank Indicatorr Mean Interpretation

1 Confident to be successful 1.09 very often

2 Work hard to complete work 1.27 very often

3 Privilege to be part of the organization 1.47 very often

4 Proud to be part of the organization 1.47 very often

5 Sense of belongingness 1.47 very often

6 Loyal to the company 1.72 often

7 Identify alternative solution 1.75 often

8 Help co-workers 1.76 often

9 Exert full effort 1.78 often

10 Ability to cope with change 1.78 often

11 Excited to work and energetic 1.87 often

12 High confidence over the decision of the management 1.89 often

13 Recommend the company as good working

environment to others

1.93 often

14 Do the job well with high quality 1.94 often

15 Highly initiatively 2.16 often

Table 6 shows the different indicators of motivation or the attitudes of the employees towards

work. In order to measure these, the author of the study asked the respondents to rate how often they practice or feel the statements – based on the different theories and principles of indicators of motivation. The result showed that all of the indicators show high rate ranging from very often

too often, which shows that the employees are highly motivated to work.

The result shows that the top 5 and the most frequent attitudes of the respondents are: confident to be successful (mean = 1.09), work hard to complete work (mean = 1.27), privilege to be part

of the organization (mean = 1.47), proud to be part of the organization (mean = 1.47) and sense of belongingness (mean = 1.47).

The remaining 10 indicators are considered as frequent attitude of the respondents: loyal to the

company (mean = 1.72), identify alternative solution (mean = 1.75), help co-workers (mean = 1.76), exert full effort (mean = 1.78), ability to cope with change (mean = 1.78), excited to work

and energetic (mean = 1.87), high confidence over the decision of the management (mean = 1.89), recommend the company as good working environment to other (mean = 1.93), do the job well with high quality (mean = 1.94) and highly initiative (mean = 2.16).

This means that employees of Apple Inc are loyal to the company, thus they foresee that they will stay in the company and in the service for a long time. Another important sign or indicator of motivation is the level or degree of effort that employees are exerting in their respective task

or work. Based on the result, it shows that the respondents are exerting high level of effort in order to do their job in effective and efficient manner. The result also showed that the employees

are energetic and excited to work. All of these enable the employee to do their job in high quality based on the standard of the company.

Importance of Brand & Motivation to the Company

Brands are a hugely important asset to a company and ought to be promoted through the likes of

live brand experiences, according to an expert in the industry.

Director and chief executive of The Centre for Brand Analysis Steven Cheliotis said that

companies, particularly ones such as Apple, are using branding as their "major competitive

advantage".

He continued: "In a world where service is quick and product innovation is very swift, there's not

much to differentiate different providers than the brand and the reputation."

This notion was substantiated by the way certain organizations have not tried to grow their

revenue so much as they've aimed to expand their brand, with many employing live brand

experiences.

The Company is developing due to its proper emphasize given on Motivation.

Two factor Theory (Herzberg):

According to Herzberg, two kinds of factors affect motivation, and they do it in different ways:

• Hygiene factors. These are factors whose absence motivates, but whose presence has no perceived effect. They are things that when you take them away, people become

dissatisfied and act to get them back. A very good example is heroin to a heroin addict. Long term addicts do not shoot up to get high; they shoot up to stop being sick -- to get normal. Other examples include decent working conditions, security, pay, benefits (like

health insurance), company policies, interpersonal relationships. In general, these are extrinsic items low in the Maslow/Alderfer hierarchy.

• Motivators. These are factors whose presence motivates. Their absence does not cause

any particular dissatisfaction, it just fails to motivate. Examples are all the things at the top of the Maslow hierarchy, and the intrinsic motivators.

So hygiene factors determine dissatisfaction, and motivators determine satisfaction. The two

scales are independent, and you can be high on both.

If you think back to the class discussion on power, we talked about a baseline point on the well-being scale. Power involved a threat to reduce your well-being, causing dissatisfaction. Hence, power basically works by threatening to withhold hygiene factors. Influence was said to

fundamentally be about promising improvements in well-being -- when you are influenced to do something, it is because you want to, not because you were threatened. Influence basically works

by offering to provide motivators (in Herzberg's terms).

Chapter 4: Recommendations and Conclusion

Recommendations

Apple Computers is a global company. The achievement made by the company over the last

couple of decades show the firms commitment to achieving global presence in all corners of the

world. Since the company has a wide capital base, it has potentials to reach a wider market than

it has currently achieved. It is recommended here that;

The Company should invest in high level business surveys in upcoming markets to

expand its market base.

The Company should create opportunity to local professionals in their targeted regions

who would help to actualize the real customer needs in such market.

The Company should produce customized products so that worldwide people can use

them. It means they should produce such kind of materials that people can use easily and have

fewer difficulties controlling the products.

The Company should also create opportunity for non-American intelligence to work

here.

The Company should also act socially approved means not to waste resources, pay

proper attention to mankind and to nature.

The Company should provide proper medical facilities to worker so that they can work

here.

A process of using global communication by using different languages in the

corporation should also be introduce by the company.

The Company should provide proper wages and adequate training to employees.

The Company should improve their products and the standard of the products; like

increasing the sensitivity of iPhone and ipod, uses of strong visibility screen in Mac Pc etc.

The Company should provide facilities to employees.

Conclusion

Motivation is very important in today`s business. The growth of technology has

established the world as a global village and has given businesses a perfect

opportunity for reaching to the previously unreachable markets. Apple has a well

established capital base that ensures that it can reach to more regions than it has

done. However the company still has a lacking of efficient workers. Besides the

managerial skills of the companies manager should also be developed. The

Motivation strategies and processes that the company has adopted, needs to be

updated because global market is getting more and more competitive. The main

rival of Apple Company is Sony Corporation. Also it has several other rivals such

as in iPhone & iPad its main rival is Samsung and in Pc`s its main rivals are

Microsoft and Hewlett-Packard.

Motivation presents great potentials for the company since its products

development depends mainly in Employees work. The company should hence

work towards developing its Human Resources, Properly fulfill employs demands

and remove its weakness in order to gain maximum output from them and raise its

market value alongside with product value.

Reference

1. From articles,

2. Internet

3. Assigned book

4. Own experience

5. Studying different journal and research papers.

Bibliography

Studying a lot of cases discussed about the mentioned

Studying articles written on culture, politics, economic, demography and

management styles of different countries

http://www.google.com.

http://www.applecomputers.inc

Principle of Management by Kreitner

Human Resource Management by Randall S. Schuller