Management of Capstone
Introduction and Overview
Apple Company is a corporate name recognized worldwide for innovative and intuitive business and consumer-orientated high technology products. The company is equally synonymous for exceptional customer support that leads to customer satisfaction. The loyalty customers have toward the Apple products and services make the company one of the most competitive in the industry. Apple Company designs, manufactures and markets a wide range of technological devices, such as personal computers, mobile communication and media devices, and portable music store (Garsten, 2012). The corporation markets a wide product line of related software, networking solutions, peripherals, and third-party digital content. Besides, the company sells a variety of third-party iPhone, iPad and iPod compatible products that include software, printers, speakers, headphones and other accessories. The key stakeholders in the company include the Apple owners, employees, customers, suppliers, and shareholders. As a result of an increasing customer base, the company intends to expand its clouding computing services in order to reach a large number of customers (Dess, 2012). The assessment is essential in order to assess the feasibility of the project to the company.
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The corporate culture in the Apple Company is based on the ideal that self-motivated individuals will work harder without micromanaging every action by the manager. The unique structure of the company has permitted growth and rapid response to changes compared to its major competitors. It is much easier to start and implement the project, because very little bureaucracy exists in the company. Initially, the company grew fast, because the decision was made at the lowest level possible. The corporate headquarter formulated policies and oversaw the implementation process (Garsten, 2012). The top-down philosophy employed in the company permits quick responsiveness and resolutions to the situations thus avoiding the corporate red tape. Nonetheless, the company enforces strict adherence to accountability and decision are swift. As a consequence, this has made the company develop a very strong culture.
The Importance of Topic to the Organization
Organization assessment in the Apple Company will enable the company to reflect in-depth to determine whether the required resources in terms of technical know-how, human capital, customer base, financial resources as well as market dynamics are favorable towards the cloud computing expansion project (Dess, 2012). Without a prior understanding of the internal and external forces within the organization, it is not possible to effectively execute the intended project.
In the exploration, both external and internal factors will be considered in order to evaluate the companys readiness to the implementation of the cloud computing project. The key indicators used as a benchmark for the analysis involved market coverage, financial performance, technology, human capital analysis, cultural review, customers and purchasing behavior analysis. This analysis provided an in-depth company potential with regard to the proposed project.
The companys major market is located in the western countries with high purchasing power. Only a small market portion is located in the developing nations. In the USA, the Apple market share has significantly increased with an average growth of 3 percent between 2009 and 2010. Furthermore, the company grabbed a 9.7 percent share, up from 7.4 percent in 2011. This represents a significant growth that promises the bright future for the company (Garsten, 2012).
Fig 1.0. Demonstrates Apple Marker Share in the USA
The companys financial analysis indicates positive trends over the years. In 2012, the company posted revenue of approximately $34.5 billion and a quarterly revenue of $ 8.75 billion. This represented a significant growth compared to the revenue of $28.57 billion and net quarterly profit of $ 7.31 billion in 2011. Therefore, this indicates that the company has the potential to implement the cloud computing project.
Fig 1.2. The figure Apple Company Revenue by Quarter in Millions
Apple has great technology strength and has continually emphasized on research and development through its powerful innovation capacity. The Apple Company owns its self-developing operation system that no other company can exceed the companys product performance. The presence of strong technological platform has enabled the company to develop unique products that make the corporation competitive (Schmitt, 2011). Technologically, the company is much ahead of its major competitors.
Staff and Cultural Analysis
The company has a highly trained workforce that drives the companys business agendas in the market. It has more than 49400 members of staff with more than 1000 engineers in the research chip. The engineering team is composed of graduates from famous universities in the world (Baker, 2010). At the Apple Company, quality is more important than quantity. In respect to organizational culture, innovation is the main culture.
Customer Purchasing Behavior Analysis
In respect to the consumer base, Apple has a large market base, especially among the affluent class in the market (Baker, 2010). Furthermore, the analysis indicates that Apple has the highest number of loyal customer compared to its competitors. Apple leads with 58 percent, while Google and Microsoft follow with 25 and 17 percent respectively. In addition, the companys domination in the world tablet PC market has expanded significantly. In 2011, it controlled 62 percent of the total market ahead of all other manufacturers (Garsten, 2012). Its reputation in the market is attributed to the reliability and quality of products and services provided by the company. Purchasing trends indicate that implementation of the project will significantly increase both market margin and the total revenue.
Fig 1.3. The Chart Demonstrates Customer Loyalty to Apple Products
Fig. 1.4. The Charts indicates World Table PC Shipment Market share in 2011
Challenges Resulting From the Organizational Assessment
The main purpose of the organizational assessment is to take a step back and reflect on various organizational areas. It seeks to look at what is working and what can be improved. However, this is not always, and it is prone to challenges or risks. One of such challenges that may result from organizational assessment is uncertainty among employees (Levinson, 2002). Whenever there is a change, employees will always feel unsafe. Some employees will think that the introduction of cloud computing will mean increased layoffs (Levinson, 2002). Additionally, in conducting organizational challenges, another challenge will be felt in explaining or helping all stakeholders in the company have a vivid picture of what future holds upon execution of cloud computing. With cloud computing, there will be some genuine concerns about security of the companys data (Terplan, 2011). With cloud computing, security could improve as a result of data centralization and increased resources channeled to it. However, with organizational assessment, a challenge will be in addressing concerns about the loss of control over sensitive data. Another challenge will be on the lack of security for stored kernels entrusted to cloud providers. Another eminent risk is that hiring services of cloud computing provider is risky. Measuring the quality of cloud providers methodology to confidentiality is problematic, because various cloud providers will not uncover their infrastructure to clients or customers (Terplan, 2011).
Project Implementation within the Boundaries of State and Federal Regulation
Currently, there are complex regulatory and legal mechanisms that govern cloud computing both at the state and federal level. There exist both federal and state laws that impose responsibilities to both cloud computing providers and tenants. Looking at the current state and federal regulations, executing or implementing this project will be possible. All feasibility studies indicate that the project will be a success.
Stark and Anti-Kickback Concerns
In implementing the cloud computing project, there will be no stark and anti-kickback concerns, because these are only involved in the provision of health care. In America, the Stark Act is a Social Security Act that prohibits physicians from engaging in self-referral services. Since this project involves the expansion of Apple Inc. cloud computing, there will be no stark or anti-kickback concerns (Zhao & Rong, 2009).
Expanding the current Apple Inc., existing cloud computing will be costly. It will involve employing talented and educated employees (O'Grady, 2009). It will also mean hiring the services of different cloud computing providers. However, adequate resources have been set aside so as to ensure successful execution of this project.