Final Ihrm Assignment

INTERNATIONAL HUMAN RESOURCE MANAGEMENT

INTERNATIONAL HRM STRATEGIES OF APPLE

(MODULE CODE- BSB20135-M )

INDIVIDUAL ASSIGNMENT

PROJECT SUPERVISIOR: - MISS AMITA PASRICHA

NAME: PANKAJ SHARMA

INTAKE NO:-PTM1101006

HAND OUT DATE: 7 FEB 2012

HAND IN DATE: 7 MAY 2012

APIIT SD INDIA [2012]

http://www.jobs.ac.uk/employer/staffordshire-university


CERTIFICATE

This is to certify that I Pankaj Sharma (PTM1101006) has completed the International human

resource management and developed the project on “INTERNATIONAL HRM STRATEGIES

OF APPLE” and submitted the assignment on 7th may, 2012.

In the Supervision of

Miss Amita Pasricha

ACKNOWLEDGEMENTWe owe the deep depth of gratitude to our esteemed teacher ‘Miss Amita pasricha for supporting

us a lot to during the span of project and to help us when we face several problems. We are

thankful to our honorable Mentor who allows us to perform several tasks like weekly meetings

and discussions in the institute itself.

We are thankful to the lab faculties for providing necessary help whenever it was require like in

case when it was system problem in print outs and other information. Library staff helps us in



providing necessary books of different authors for project development and several other platform

oriented books on which we had worked upon like entrepreneurs.

At last but not the least we cannot forget to thank our friends for their important suggestions help

in editing our work and let us know about our errors and mistakes through out the project.

PANKAJ SHARMA

PTM1101006 (MBA)

International Human Resource Management (IHRM)

IHRM can be defined as set of activities aimed managing organizational human resources at

international level to achieve organizational objectives and achieve competitive advantage over

competitors at national and international level. IHRM includes typical HRM functions such as

recruitment, selection, training and development, performance appraisal and dismissal done at

international level and additional activities such as global skills management, expatriate

management and so on.



In simple terms, IHRM is concerned about managing human resources at Multinational

Companies (MNC) and it involves managing 03 types of employees namely,

1. Home country employees- Employees belonging to home country of the firm where the

corporate head quarter is situated.

2. Host country employees- Employees belonging to the nation in which the subsidiary is situated.

3. Third country employees- These are the employees who are not from home country/host

country but are employed at subsidiary or corporate head quarters. As an example a American

MNC which has a subsidiary at India may employ a French person as the CEO to the

subsidiary. The Frenchman employed is a third country employee.

Recruitment and Selection

Training and Development

Performance appraisal

Compensation

Health and safety etc.



International Staffing Policy

The staffing challenges for international assignments are broader in scope than those for domestic

staffing. There are different approaches to the management of International human resources.

These are as follows:

Ethnocentric – the home country attitudes, management style, knowledge, evaluation criteria,

and managers are superior to anything the host country might have to offer.

Polycentric – there is a conscious belief that only host country managers can ever really

understand the culture and behavior of the host country market; therefore, foreign subsidiary

should be managed by local people.

Geocentric – based on the assumption that the best manager or other employee for any specific

position anywhere on the globe may be found in any of the countries in which the organization

operates.

These three sets of multinational values translate into three broad international staffing policies or

sources for staffing international operations. First, the company can send people from its home

country. These employees are often referred as expatriates. Second, it can hire host-country

nationals, natives of the host country, to do the managing. Third, it can hire third-country

nationals, natives of a country other than the home country or the host country. These sources of

overseas workers have different advantages (Sims 2002).

IHRM in the literature Review

The literature on international HRM tended initially to focus on the management of expatriates

(see. for example. Ivancevich. 1969; Mendenhall and Oddou. l985;Torbiorn.1982; Tung. 198 i).

Streams of research into cross-cultural issues (Hofstede. 1984. 1993;Eaurenl. 1986) and

comparative HRM (Brewster c/ti/.. 1996, 2004) were also developed.

However, in line with a growing literature on international business strategy (Bartlett and

Ghoshal, 1989; Porter, 1986; Prahalad and Doz, 1987), more interest was .shown in the issues of



managing people in international organizations. Boxall (1995) highlighted the distinction between

comparative HRM (how people are managed differently in different countries) and international

HRM (how different organizations manage their people across national borders). The comparative

HRM field analysed practices within firms of different national origin in the same country or

compared practices between different nations or regions (Pieper. 1990). International human

resource management (IHRM) addresses the added complexity created by managing people -

probably the most nationally specific resource (RosenzWeig and Nohria, 1994) - across a

diversity of national contexts of operation and the inclusion of different national categories of

workers (Tung. 1995). Although, originally, comparative and international HRM Were distinct

fields of study, the increasing reliance on strategic partnerships and joint ventures, coupled with a

trend towards localization, has made the need to understand how HRM is delivered in different

country contexts more important. Consequently there has been a degree of convergence in

thinking between the comparative and international HRM fields (Budhwar and Sparrow, 2002).

Some of the early models of IHRM focused on the role of MNEs and argued that finding and

nurturing the people able to implement international strategy is critical for Brewster ei al.:

Towards a new model of globalizing HRM 951 such firms. IHRM was considered to have the

siimc main dimensions as HRM in a national context but lo operate on a larger scale, with more

complex strategic considerations, more complex co-ordination and control demands, and some

additional HR functions. These latter functions were considered necessary to accommodate the

need for greater operating unit diversity, more external stakeholder influence, higher levels of risk

exposure and more company involvement in employee's lives and family situation (Dowling et

al.. 1999). The field focused on understanding those HR functions that changed when the firm

Went international and also began to identify important contingencies that influenced the HR

function to be internationalized, such as the country that the MNE operated in, the size and life-

cycle stage of the firm and the type of employee. (Budhwar and Sparrow, 2002).

Introduction Apple



Organization of Apple was established in 1976 as a computer company. However, in the last

decade, Apple has expanded into a complex company that specializes in much more than just

computers. In 2001, Apple broke the barrier with the iPod, eventually becoming the dominant

market leader in music players. In following, Apple joined the phone industry in 2007 with the

iPhone, which has also been widely successful. Apple has established a unique reputation in the

consumer electronics industry since it is flexible from its philosophy of comprehensive aesthetic

design to its distinctive advertising campaigns.

Apple, Inc. is an electronics and software company based in California, USA. Originally known

as Apple Computer, the company is familiar to most people as innovators of the personal

computer as it is known today. Apple Computer had introduced many of the now-commonplace

features of personal computers, including the GUI, the mouse, the floppy disk drive, and color

graphics. Apple Computer's Macintosh line of PC's had brought numerous software and hardware

components within reach of the average home consumer, often in a stylish case and with an

emphasis on usability. The restructured company, now called simply Apple, designs, markets, and

sells not only personal computers but also consumer electronics in the form of portable media

players and smartphones. Apple also sells intangible goods in the form of software, music, and

video. The Apple Store chain operates over 150 branches worldwide, where the devices and

software and sold and serviced.

Vision

No one disputes that Apple is lead by its powerful Apple vision, and focus. It is said that Jobs is

so fanatical because he deeply believes in Apple Computer and his personal mission is “do it

right.” Jobs believes that by making the best quality products possible that sales and stockholder

value will follow. Because of Jobs, Apple is known today for its innovation and style, and many



Apple products such as the iPod and iTunes are considered so innovative we have spawned

micro-industries. (Mercer, 2003)

Mission

Apple’s current mission statement is: “Apple is committed to bringing the best personal

computing experience to students, educators, creative professionals and consumers around the

world through its innovative hardware, software and Internet offerings.”(By Steve Gall April 14,

2006)

ORGANIZATIONAL STRUCTURE

Headquartered in Cupertino, California, USA, Apple Computer operates on a global scale, with

multiple locations world-wide. Apple’s business operations are structured into three main

categories: hardware, software, and business support services. Within these categories are various

divisions, including: Macintosh (computers), peripherals (Apple TV, digital video displays, etc.),

applications (iTunes, iLife, Final Cut Studio, etc.), internet services (Safari, QuickTime, Mobile

Me, etc.), and others. Provides a broadened visual representation of Apple’s basic organizational

structure. (By Shane R. Mittan, 28 Jan 2010)

Apple’s Organizational Chart (November, 2008)

Hardware Software Business Support Services

IPod Applications Legal

IPhone Internet Services Retail

Macintosh Operating System Accounting

Peripherals Product Support

General Counsel

Industrial Design

Markets and Distribution



Apple products

Apple Lisa 1983

Macintosh Portable 1989

Apple Newton 1993

ENVIRONMENT

Environments are those factors and forces outside the organization that effect the organizational

performance.



IHRM strategies of Apple Company

"Strategic planning, like any type of planning, involves establishes goals and identifying

quantifiable objectives that can help an organization reach them. What perhaps best

differentiates strategic planning from "seat-of-the-pants" or intuitive planning initiatives



concerns how informed the decision-makers are concerning the environment in which the

company competes. In some cases, strategic alliances with others may represent the best

course of action for various reasons, while acquiring competitors also represents a viable

alternative in many cases. Because every organization is unique, there cannot of course be a

one-size-fits-all strategic approach that can be applied across the board to achieve successful

outcomes to such planning processes, but there are some general guidelines that can be used to

help companies recognize when one alternative is superior to another" (Pearce & Robinson,

2005).

Apple Computer Strategic planning involves making decisions about an organization's long-

term goals and strategies. These plans have strong external orientations and cover major

portions of the organization. Successful companies have been diligent in the planning of the

organization's long-term goals and strategies and have targeted results needed for long-term

survival, value, and growth. Apple Computer's beginning years were mostly reactive to the

fast-paced and rapidly changing computer industry; however, we have re-invented them selves

time and time again to remain highly competitive in this market. (Pearce & Robinson, 2005).

Strategic Planning at Apple Inc.

Apple Inc. is one of the world's most successful and most recognizable companies. Over its 30

year existence, the company had seen a lot of changes in the computer industry. What would the

future hold for the computer giant in a rapidly changing world? How should the company allocate

resources between its more traditional offerings (computers) and its newer products (iPods,

iPhones, Apple TV, etc.) in order to maintain and improve its market position. Also, how should

Apple's unique retail strategy be used to support the company's product decisions, and by

capitalizing on new and emerging trends thus further maintaining its competitive advantage.

(By Fabrizio, D)

Recruitment and selection

Recruitment and selection refers to the chain and sequence of activities pertaining to recruitment

and selection of employable candidates and job seekers for an organization. Every enterprise,

business, start-up and entrepreneurial firm has some Well-defined employment and recruitment



policies and hiring procedures. The human resources department of large organizations,

businesses, government offices and multilateral organizations are generally vested with the

responsibilities of employee recruitment and selection.

International recruitment and selection

Recruitment-Define as searching for and obtaining potential job candidates in sufficient numbers

for and quality so that the organizations can select the most appropriate persons for its job needs.

Strategy of Recruitment and selection in Apple

Recruitment and selection referred to Bratton (Bratton et al, 2003) always is the important and first stage of

human resource management function in company. The objective of recruitment about attracts the talent people to



be the company’s employees following goal of company and labour demand forecasting; in addition, it is able to be

one way to and promote advertise in the public’s mind. Referred to effective recruitment and selection practice

(Compton et al, 2009), there are many method of recruitment that generally separate by source to internal and

external source.

The internal source is such as transferring, department examination, and employee’s recommendation and so on.

For external source that support in advertisement of organization such employment agency, job center,

newspaper, company Website, etc. In the most case, company focus on recruit from external source due to

generate more competition of candidate that means providing variety of choice and high potential to hire the

employees of the dream. Especially, incurrent many world class companies realize on value of human

resource and development people more than ever before; for instance, Steve Jobs; Apple Inc CEO used to mention

that ³the most value asset of Apple Inc is Employee .́However,the costly of recruitment of external

resource is the major Weak point of this way practically using job agency and newspapers and time consuming

is another disadvantage which are management challenges and every company intend to overcome over past a

year and a year. (Compton et al, 2009).

Environment factors affecting Recruitment and selection

FACTORS AFFECTING RECRUITMENT

FACTORS AFFECTING SELECTION

Selection is influenced by several factors. More prominent among them are supply and demand of

specific skills in the labour market, unemployment rate, labour-market conditions, legal and

political considerations, company’s image, company’s policy, HRP, and cost of hiring. The last



three constitute the internal environment and the remaining form the external environment of the

selection process.

Analysis of recruitment and selection strategies

In today’s competitive and dynamic world, everything gets changed with a swift pace.

Organizations need to be more proactive and competent as this is a world of globalization and

world has become a global village. In this global village,

Organizations who do not possess a competent workforce, usually are not able to make a

remarkable progress the in dustry.

For the purpose of having a competent workforce, an organization needs to opt best HR strategies

with the help of great HR professionals. Companies having fully functional HR departments are

known for their success. Some examples are Dell, HP, Amazon.com, and Apple. These

organizations, and many others, know and understand the true importance of competent

workforce and thus allow their HR departments for making their own strategic decisions. The HR

departments in organizations make a significant impact over the performance of organization.

This is due to multiple tasks an HR department does in an organization. These tasks include

recruitment and selection, orientating new employees, training new employees, HR planning,

making HR budgets, performance management and compensating employees. All of these

functions have their importance at their own place. And, by default, all of these activities are

interlinked with. (By Dessler, 2010)

Training and Development

When most people think of company training, the first thing that comes to mind is

"inconvenience." Training conjures images of sudden scheduling; disruption of their personal life;



travel; long, drawn out sessions and a sense of relief mixed with futility when it is over. Hardly

the best mindset for learning.

Strategy of Training and Development in Apple’s

Training can be defined as making available to employees planned and coordinated educational

programs of instruction in professional, technical, or other fields that are or will be related to the

employee’s job responsibilities. Training can be accomplished through a variety of approaches,

such as classroom training, e-learning, and professional conferences that are educational or

instructional in nature. Development is generally considered to include training,

Structured on-the-job learning experiences, and education. Developmental programs can include

Experiences such as coaching, mentoring, or rotational assignments. The essential aim of raining

and development programs is to assist the agency in achieving its mission and goals by improving

individual and, ultimately, organizational performance.

It has been said that the objective of the investigative segment of the Training and Development

Program lies on the creation of a developmental strategy. This is why the identification of training

needs does not necessarily guarantee that this will already bring benefits to the Apple Inc. It

would only serve as a reminder for the superiors to look into the Weak points and come up with

the appropriate solution and in this case it is the actual selection of the training and development

program and the method that should be employed targeting the best results.



There two ways that will help in the choice for what training method to use. First, after the

identification of the training needs, the willingness of the company should be checked and so with

the employees as to how far we can go for the project. It will involve confirming their budget,

time and the acknowledgement of the project as urgent and important for them and for the

company. With all of these, the management can now look into the most suitable methods based

on their assessed stand of the company and there are actually a lot available to choose from

depending on the allowed scope, budget and time by the management.

Environmental factors affecting training and development

Owners expect managers to watch or their interest ant provide a return on investments.

Customers demand satisfaction with the products and services we purchase and use.

Suppliers require attentive communication, payment and strong working relationship to

provide needed resources.

Competitors present challenge as we view for customers in a market place with similar

products and services

Employees and employee unions provide both the people to do the jobs and the

representation at work force concern to management

Demographics are measures of the various characteristics of the people and the social

groups who make up a society. Age, gender and income are the example of commonly

used demographic characteristics.

Values refer to certain beliefs that people have about different forms of behavior or

product. Changes in how a society, values and item or a behavior can greatly affect a

business.

Training Needs Analysis (Needs Assessment) for Apple Inc.

Apple computer has experienced both good and bad times as a main player in the computer

industry. It has been a leader in computer technology in the past but has struggled recently in

keeping pace in the fast developing computer industry. Emergent technology and developing

computer applications have contributed to a business environment that is very competitive.

Survival in this industry needs the skill to foresee changes and to effectively react to market

demands. The computer industry has grown for the last two decades due to the popularity of



personal computers even as a household item. This market is no longer limited to the business and

educational environment; computers are a consumer good worldwide. Apple Computer, Inc.

must respond to this business environment if it is to survive in the future. This is the driving factor

for this project. Training Needs Analysis can be complex and demands a creative, people focused

environment. Basing from the introduction for the Apple Inc. it seemed that the people needed to

prepare the Training Needs Analysis are already within their organization. It would just be a

matter of forming the team maybe from the management or from the HR/Training and

Development Department. For this to be successful, the process should be designed in a way that

it is simple to use but is effective. Again, this is parallel with the basic philosophy of Apple

Inc.that is to be user friendly.

Training and development

Training can be defined as making available to employees planned and coordinated educational

programs of instruction in professional, technical, or other fields that are or will be Related to the

employee’s job responsibilities. Training can be accomplished through a variety of approaches,

such as classroom training, e-learning, and professional conferences that are Educational or

instructional in nature. Development is generally considered to include training, Structured on-

the-job learning experiences, and education. Developmental programs can include Experiences

such as coaching, mentoring, or rotational assignments. The essential aim of training and

development programs is to assist the agency in achieving its mission and goals by Improving

individual and, ultimately, organizational performance.

Performance appraisal



Performance appraisal is a system of review and evaluation of an individual or team’s job

performance. An effective system assesses accomplishments and evolves plans for development.

Performance management is a process that significantly affects organizational success by having

managers and employees work together to set expectations, review results, and reward

performance. Its goal is to provide an accurate picture of past or future employee performance. To

achieve this, performance standards are established.

Strategy of Performance appraisal in Apple

The activities of APPLE employees were guided by a comprehensive system of management by

objectives (MBO). The performance appraisal system starts with the establishment of long- and

short-range objectives derived from company and group objectives. At each company level,

overall objectives were communicated and subunit objectives were negotiated. APPLE lets the

employees decide on how they would accomplish the goals that they have set. The goals were

made to interconnect horizontally and vertically throughout APPLE. The management by

objective process is part of the company’s strategic planning which defines the objectives and

responsibilities that a job entails. In an MBO system an employee meets with his or her manager,

and they collectively set goals for the employer for a coming period of time. These goals are

usually quantifiable, they are objective, and they are usually written. During the specified

timeframe, the manager and the employee periodically meet to review the employee’s

performance relative to attaining goals. At the end of the specified period, a more formal meeting

is scheduled in which the manager and employee assess the actual degree of goal attainment. The

degree of goal attainment then becomes the individual’s performance appraisal (Sims, 2002).

APPLE combined MBO with the paired-comparison approach. The paired comparison approach,

according to Sims (2002), measures the relative performance of employees in a group. A manager

lists the employees in the group and then ranks them (p. 205). APPLE managers invested



considerable time and energy ensuring that an individual’s pay level within their salary range

reflected their performance when compared to others. Performance was judged by the immediate

supervisor but adjusted based on a ranking process, conducted by managers in face-to-face

meetings, which compared employees in different departments with similar responsibilities.

The Performance - Appraisal Cycle

Environmental Factors Affecting Performance Appraisal in Apple

Ability

Character traits, skills and knowledge which are used in the performance

It is always present and will not vary widely over short periods of time.

Effort

The amount of manual or mental energy that a person is prepared to expend on a job to reach a

certain level of performance.



Can vary according to incentive and motivation.

Motivation

Many people who are not motivated keep their performance to an acceptable level by expending

only 20-30% of their ability Managers who know how to motivate their employees can achieve

80-90% ability levels and consequently higher levels of performance.

Basic needs - food clothing

Safety needs - security, avoidance of risk/harm

Social needs - friendship, acceptance, group

Esteem needs - responsibility, recognition

Self realisation - independence, creativity

Equity & Expectation

Again, detailed notes elsewhere. Basically, people expect to be treated equally, within the

company and as others are in similar companies; they expect to get a certain reward for a certain

effort; and they expect to get promoted if they undergo training. All these factors are inter-related

and affect the amount of effort people are prepared to put in task, or role, perception

The direction in which the person wishes to channel his or her effort and ability. It varies

according to such factors as whether or not the job is seen to be important or of value in itself, to

the organization, to workmates, to the individual whether or not there is an end in sight is what I

do simply lost in the larger organization. Can I see it as a finished entity in its own right, no

matter how small. Standards & job descriptions must be known and understood.

Compensation



Compensation is the total amount of the monetary and non-monetary pay provided to an

employee by an employer in return for work performed as required.

Compensation is based on:

Market research about the worth of similar jobs in the marketplace,

Employee contributions and accomplishments,

The availability of employees with like skills in the marketplace,

The desire of the employer to attract and retain a particular employee for the value they are

perceived to add to the employment relationship, and

The profitability of the company or the funds available in a non-profit or public sector setting,

and thus, the ability of an employer to pay market-rate compensation.

By Susan,M. http://humanresources.about.com/od/glossaryc/g/compensation.htm

Strategy of Compensation in Apple

The failure to include the value of most stock-option grants as employee compensation and,

hence, to subtract them from pretax profits, increased reported earnings and affected Apple Inc’s

(NASDAQ: AAPL) stock prices. A three-month investigation by Apple's board of directors

starting July 2006 found that the company had backdated option grants made on 15 dates between

1997 and 2002. The Boards findings raised "serious concerns" about the roles that two former

officers had played in the matter. The board of directors also reported that an internal review

found two questionable options awarded to Jobs but found no wrongdoing by current

management, including Steve Jobs himself. Apple Inc’s stock dipped to $72 in October 2006,

reducing “shareholders Wealth”.

For the long-term Steve Jobs promised that he is working "to ensure that this never happens

again".

The company is strengthening the corporate governance and is implementing measures in order to

ensure proper practices with option grants such that backdating cannot occur, such as: Boards set

the date and price of all option awards we approve, reflecting this data in the Board meeting

minutes. The Board should later receive confirmation that the awards Were issued on the date and



at the price approved. Boards will ensure the company is filing SEC form 4 filings within 2

business days of option grant (as required by the SEC). Boards will not allow executives to

choose the date of their grants, nor there will be flexibility in when the grants are recorded.

Boards will clearly communicate the company's policy regarding option dating to all relevant

parties such that there can be no confusion regarding what is and is not allowed. Boards will

adopt a policy stating that option grants will be made on the same date each year, or divide annual

grants into four grants made quarterly.

Environment Factor affecting compensation in Apple

There are several kinds of negotiation with the employer. For instance, the employee can

negotiate at the time of the hiring process or can negotiate at the time of the appraisal cycle. In

this article, We consider the strategies available to the employee at the time of the hiring process.

There are several parts to the employee’s strategy to negotiate with the employer. Some of

them are:

Plan and Communicate: The most important part of the employee’s strategy must be to research

the compensation trends in the market and then negotiate with the employer based on how much

the other companies are willing to pay for a similar role combined with the fact that the company

hiring him or her pays for the same role. Hence, it is advisable for the employee to keep in touch

with compensation trends in the marketplace and also talk to other employees before he or she

decides to communicate his or her expectations to the prospective employer.

Timing makes the difference: In any negotiation process, time is the key element and hence

timing the negotiation process is important. The best possible option for the employee would be

to wait for the company to make an offer and then pitch in his or her expectations about the

compensation. There is something called overkill which must be avoided and the employee must

avoid going overboard. At the same time, the employee must also ensure that he or she does not

start the negotiation process early on in order not to lose out on the offer. Hence the timing of the

pitch makes all the difference.



Consider the Alternatives: When you are deciding about prospective offers, ensure that you

make the pitch for your expected compensation level after taking into account all the alternatives

and not simply rush into something that does not value your experience and expertise adequately.

At the same time, do not harangue the prospective employers though you might have several

alternatives available to you. The point to be noted is that different companies react to

compensation negotiations in different ways and hence you must play the field according to these

points.

Many a time, prospective employees lost out on compensation either because we asked too high

or asked too late. At the same time, we should also remember not to coerce the employers.

Health and safety

Health and safety is integral to success. Board members who do not show leadership in this area are failing in their duty as directors and their moral duty, and are damaging their organization.



Environmental factors affecting Health and Safety

This article reviews organizational factors that influence the satisfaction, health, safety, and Well-

being of health care workers and ultimately, the satisfaction, safety, and quality of care for

patients. The impact of the work environment on working conditions and the effects on health

care workers and patients are also addressed. Studies focusing on worker health and safety

concerns affected by the organization and the physical work environment provide evidence of

direct positive and/or adverse effects on performance and suggest indirect effects on the quality of

patient care. The strongest links between worker and patient outcomes are demonstrated in

literature on nosocomial transmission of infections. Transmission of infections from worker to

patient and from patient to patient via health care worker has been well documented in clinical

studies. Literature on outbreaks of infectious diseases in health care settings has linked the



physical environment with adverse patient and worker outcomes. An increasing number of studies

are looking at the relationship between improvement in organizational factors and measurable and

positive change in patient outcomes. Characteristics of selected magnet hospitals are review we as

one model for improving patient and worker outcomes. (By T Lundstrom–2002)

Health and safety Apple’s strategies

Apple Computer is committed to protecting the environment, health and safety of our employees,

customers and the global communities where they operate. they recognize that by integrating

sound environmental, health and safety management practices into all aspects of their business,

we can offer technologically innovative products and services while conserving and enhancing

resources for future generations. Apple strives for continuous improvement in their

environmental, health and safety management systems and in the environmental quality of our

products, processes and services.

In recognition of current market trends, Steve Jobs has claimed that he wants to transform the

company by making the Mac the hub of the consumers' digital lifestyle. Despite Apple computer's

recent successes, the company is facing an ever-changing competitive environment on multiple

fronts.

1. What are the key strategic challenges facing Apple Computer?

2. What are some of the dimensions along which company success can be measured?

3. What critical external and internal environmental factors have strategic implications for Apple's

future?

4. How does Apple's strategy stand up against industry rivalry?

5. What recommendations can be made to enhance the effectiveness of the company's strategy or

to change its strategic approach for better results?

Apple Finding and Discussion

For the purpose of illustration, the industry analysis of Apple Inc. will focus specifically on the

portable personal computer manufacturing and sales and on the United States market, although

many of the firms involved in the industry produce, market and sell internationally. Considering

the threats faced by firms operating in this industry the industry is moderately attractive overall.

Many firms within the industry have thrived, but competition is very high, while suppliers and



buyers have moderate influence over the competitors. There are several avenues by which new

competitors may enter the market, but they face substantial hurdles in successfully establishing a

viable brand. Finally the threat of substitutes is credible in some use-cases, but will not

completely usurp personal computers in the foreseeable future.

Rivalry between Competitors

While once an industry defined by few large companies and extremely expensive products,

pursuing a niche audience, the advent of the personal computer (PC) has caused an industry

explosion which now includes dozens of manufacturers pursuing many millions of customers in

the United States. As a result of the penetration of computers into everyday life and business the

PC is becoming more and more a commodity product. For most users, and business economy is

more important that performance specification and other ‘bells and whistles.’ The result has led

many manufacturers to pursue low-cost and best-cost provider strategies. Those at the lowest end

compete on rock-bottom prices foregoing all but the most basic features. Those in the middle

range including Dell, HP, and Lenovo compete for customers offering a range of options for

varying prices. The similarity of their products due to industry standard setting also leads to price

competition that drives down prices and squeeze margins. The desire of companies to buy large

numbers of PCs for the lowest bid available also exercises considerable downward pressure on

prices offered by these firms. The nature of technological development also imposes increased

competition on the members of the industry. The technology behind many key components of

PCs continues to become more efficient with increased processing power and less energy

consumption.

‘Moore’s Law ‘predicts that the number of transistors on a processing chip roughly doubles every

eighteen to twenty-four months. While is more an estimate than a ‘law’ industry leaders like Intel,

Inc. have kept this pace for decades. This perpetual innovation and development puts pressure on

computer manufacturers to streamline production and refresh products at a pace largely unseen in

business for centuries.

PARENT COMPANY/ STRATEGY

United States is Apple Inc parent country.



International strategy for international business.

Determined by cost of reduction and local responsiveness.

Does not need to customize their products or marketing because it will raise cost overall.

Two Competitive Pressures

Cost of reductions.

Pressure of local responsiveness.

Global Standardization StrategyTransnational StrategyInternational StrategyLocalization Strategy

Swot analysis IHRM strategy at APPLE company

Apple is the top most company in computer industry they have a wide variety of products, from mp3 players and printers to personal computers and powerful servers. Their IHRM strategy that improve their skill and find the excellent worker Companies have trouble operating within the computer industry, namely due to the dynamic that the numbers of transistors per square inch on integrated circuits will double every 18 months, and prices will be reduced. This means even the largest firms must stay on their toes, as the industry is constantly changing and redefining its parameters.

LABOR LAWS“Workmen’s Compensation Act, 1923”

“Payment of Wages Act, 1936”

“The Industrial Disputes Act, 1947”

“The Minimum Wages Act, 1948”

“The Maternity Benefit Act, 1961”

“Payment of Bonus Act, 1965”

“Payment of Gratuity Act, 1972”LABOR MARKET AND COMPETITIONLower standard of living, cost of inputs decreases, cheaper wages

Labor force participation rate= about 400 million out of 1 billion

30 million in organized employment, 340 in unorganized (organized private sector –3% of employment)



Compete directly with Microsoft

(PC vsMac) They own everything

Apple’s Ihrm strategy implement their program which they are applying in other country they .

has recently made headlines by breaking into Apple is committed to driving the highest standards

for social responsibility throughout our supply base. They require that their suppliers provide safe

working conditions, treat workers with dignity and respect, and use environmentally responsible

manufacturing processes wherever Apple products are made. Their suppliers must live up to

Apple’s Supplier Code of Conduct as a condition of doing business with us. Drawing on

internationally recognized standards, our Code lays out Apple’s expectations in the areas of labor

and human rights, worker health and safety, the environmental impact, ethics, and management

systems. We insist that our manufacturing partners follow this Code, and we make sure they do

by conducting rigorous audits with the help of independent experts. If manufacturers don’t live up

to our standards. On the personal computing side of Apple’s market are a number of products

from various competitors. Each of these competitors has a wide range of computing systems

designed for various types of users. Dell is marketing its Dimension line of computers for desktop

users and its Inspiring line for laptop users. Both the Dimension and Inspiring lines differ in

features and power to provide varying selections for customers with diverse needs.2 The same can

be said of Hewlett-Packard’s Pavilion/Presario desktop and laptop PCs, as well as Gateway’s

3200/5200/7200 series desktop computers and M210/M320/M520 series laptops.3,4 It would

immediately seem that Apple has a wide array of substitutes in the market, but the proprietary

nature of Apple’s products sets itself apart from its competitors.

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