Social Performance of Organizations

Strict adherence to corporate social responsibility initiates effective relations between businesses and society. The engagement between the two parties is established an interactive system and highly controlled by stakeholders. Primary and secondary stakeholders are the parties of interest in organizations as the business affects them in distinct ways. Businesses are profoundly affected by the external environment, while the management has a significant role to play in its control. The external environment and roles, played by stakeholders, determine the success of a business enterprise, which will be identified on the example of Apple.

The Structure of Apple

This company is a global leader in the manufacturing of electronic products. A culture of responsibility characterizes the company as it strives to meet the demands of consumer market. The organizational structure of Apple is founded on rapid innovation. The spoke and wheel hierarchy structure enables the collaboration between various departments. Unlike before, with CEO making all decisions, the current structure provides a high level of collaboration, in which the units are integrated in the decision-making process. Group decision-making processes allow an organization to facilitate viable ideas, related to various functions (Kashi & Franek, 2014). Function-based grouping structure places respective individuals to handle identified business functions. Therefore, the top management addresses existing issues per function areas. Product-based grouping exists as another relevant structure within the firm and assists in addressing problems through respective product components.

Type of Products and Services, Offered by Apple Inc.

The Apple Corporation offers various products and services to its customers, and iPhone, iPad, Apple Watch, and iMac are some of its most famous products. Additionally, the firm offers software applications and operating systems that support the utilization of its devices such as smartphones and Apple TV. For example, watchOS is an operating system, applicable to the use of Apple Watch, while iTunes allows users to download applications. The company provides its consumers with information related to the utilization of these products with the aim of ensuring consumer satisfaction.

External Factors that Affect the Success of Apple

The factors of the external environment affect the functions of the organization. Thus, economic and social environment largely influences the operations of Apple Inc. The company relies on labor from China to manufacture its products. However, the increasing labor costs in this country can cause serious problems for the products, offered by Apple to its consumers (Li Sun, Chen, & Pleggenkuhle‐Miles, 2010). The fluctuation of the US dollar is likely to affect the exchange rates, thus making other nations experience difficulties when trading with Apple. The living standards of the US citizens can shrink the market since the middle-class may not even afford to purchase such high-end consumer products. Thus, lack of control on exchange charges and labor costs in China present some complications for the company. Consequently, its functions are profoundly affected in a situation where the exchange rates fluctuate or when rising labor costs for Chinese workers may leave the company at risk as it stands to lose potential workforce. As it can be seen, Apple has no control of the above factors.

The impact of social environment is evident through the absence of demonstrative attachment by users. Notably, the existence of backlash, associated with the status of Apple products in some consumer markets, may reduce sales. Specifically, these products are too expensive, which makes it difficult for many people to purchase them. Changes in the attitude and perception of consumers concerning different products can affect their sales (Page, 2013). If clients decide that some products no longer satisfy them, they may stop buying them, which will lower sales for the business. Therefore, Apple Inc. does not have control over the backlash that some of its expensive products have caused among customers, which means that the changing attitudes and perception of consumers are factors beyond the company’s ability to influence them.

Ways for Primary Stakeholders to Influence Financial Performance of the Organization

Long-Term Relations Built by Consumers

Establishing long-term business engagements with Apple Inc. is likely to increase its sales and lead to its financial growth. High level of satisfaction among consumers is the prerequisite of sustainable success and profit maximization. The engagement of relationship management element by Apple allows it to assess information, related to customers’ needs and demands. The company’s marketing efforts allow it to target users according to their needs. Allowing the workforce to participate in decision-making improves their satisfaction and helps satisfy consumer expectations (Kashi & Franek, 2014). Customer retention allows companies to benefit from increased sales arising from continued purchases. Therefore, such an approach allows consumers to establish a long-term relationship with the company and guarantee its increased profits.

High Work Motivation among Employees

The appropriate treatment of the workforce and their recognition as a great asset improves the company’s financial performance. High work motivation among employees enables them to work hard and achieve success for Apple Inc. The workforce provides effective customer service, which links the business and its consumers in a long-term relationship. Thus, the top management has a significant role to play in the development of worker motivation through allowing them to participate in decision-making activities (Kashi & Franek, 2014). The company needs to introduce appropriate strategies, capable of improving motivation among its workers for better productivity.

The Development of Appropriate Supply Chain Networks

Suppliers are a critical part of the development for Apple Inc. due to the close collaboration between suppliers. Thu, the company is expected to improve value chain processes. A timely delivery of materials, required to manufacture the products, is one way of increasing financial performance of the company (Li Sun et al., 2010). Since customers are interested in finding a product when they need it, such a delivery of raw materials through appropriate chains allows the company to offer products when consumers require them. Therefore, delays are reduced with appropriately developed supply chain networks.

Viable Ideas and Opinions, Offered by Shareholders

Shareholders significantly contribute towards organizational growth and productivity. Ideas and opinions presented by shareholders may improve various processes of Apple Inc. Performance and the initiated work processes cannot be considered separately. Therefore, the contribution of shareholders guarantees process improvement. Notably, they avail the necessary resources, required to make their investment fruitful. Thus, the ideas and resources of the shareholders of Apple Inc. contribute to the company’s high rate of financial performance.

Social Responsibility by the Top Management

The top management’s focus on environmental issues may bring financial improvement for the organization. The approach enable the company to build a positive image among its consumers, thus depicting social responsibility requirements (Trong Tuan, 2012). In this case, Apple’s top management’s decision to initiate environmental awareness may be welcomed by its customers with great enthusiasm. As a result, consumers are expected to establish long-term relations with the company, eventually bringing increased profits. Profits define the financial performance, associated with corporations. Therefore, environmental awareness by the top management builds the corporate image of the company, thus leading to increased financial performance.

Controversial Corporate Social Responsibility Concern, Associated with Apple Inc.

The issue of inappropriate working conditions in Apple has raised questions regarding corporate social responsibility. The welfare of Chinese workers at the facilities where iPads and iPhones are produced has been neglected. Employees are exposed to poor working conditions and often overworked. Specifically, workers are exposed to chemicals while manufacturing iPad assembly parts, which might lead to severe health problems. Disregard for the proper working conditions of labor force shows lack of ethics and appropriate corporate governance (Torn Tuan, 2012). Thus, poor working conditions are the violation of health and safety guidelines.

Conclusion

Apple Inc. has established a global image through the products and services that it offers to its consumer market. The existence of factors within the external environment is a threat to the company. Thus, it is critical to develop pro-active measures in dealing with these challenges. Primary stakeholders have everything they need to lead the firm towards its excellent financial performance. Consequently, Apple should properly meet the needs and demands of its primary stakeholders for their better support and delivery of excellent performance. Adherence to corporate social responsibility entitlements is a practical approach to making the company build its positive image globally.

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