Tuesday, August 20, 2019
Important Role In Job Design Management
Important Role In Job Design Management The topic which I choose for my research is the impact of job enrichment and enlargement on employee motivation and performance. I intend to find the factors which play an important role in Job design which is constituted of job enrichment and job enlargement so that they could best motivate employees and in turn enables them give their best performance. Organization is the strength of any business. The more organized and efficient the different components in the business are, the better it functions and produces. Therefore jobs must be enlarged and enriched keeping in mind what is best in the interest of an organization. I would like to mention here what is job enrichment and job enlargement. What are their Pros and Cons, and their effectiveness? Job enrichment basically refers to the concept of improvement in job or an increase with the help of upgrading and development. For example if you are a typist by job enrichment you will have to type and proof read as well. It also stresses upon the concept of employee satisfaction in respect to their position and personal growth potential. Job enrichment involves organizing and planning in orderÃâà to gain more control over their duties and work as a manager. The execution of plans and evaluationÃâà of results motivates workers and relieves boredom. Job enlargement on the other hand means adding more duties or increasing the workload to the same job. It provides the chance of enhancement and more productivity for employees. For example if you are a typist and you type 20 pages per day by job enlargement you will have to type 30 pages per day. Job enlargement is a vehicle employers use to put additional workload on employees, perhaps in economical downtime. By adding or inc reasing the responsibilities employees are also getting a chance of enhancement and more productivity. In literary terms job enlargement is the expansion of job context to include a wider variety of tasks and to increase the workers freedom of pace, responsibility for checking quality and discretion for method. Therefore to summarize the major differences between the two we can state that job enrichment, when compared to job enlargement, not only includes more duties and responsibilities, but also gives the right of decision making and control. Apart from that job enlargement is horizontal where as job enrichment is vertical expansion of work. But both the forces Job enlargement and job enrichment are useful for motivating workers to perform their tasks enthusiastically. It is through job design organizations try to raise productivity levels by offering non monetary rewards such as greater satisfaction. Job enrichment and job enlargement are such techniques used in job design exerci se. Statement of problem Job design is the intentionally planned structuring of work effort performed by an individual. There is increasing evidence that poorly designed jobs now a days is a persistent social problem affecting the performance of employees. Justification for the topic The reason I choose this topic was because of the fact to identify factors which play important role in job design so that it could best motivate the employees and in return they give best performance. Scope of study The scope of the study is focus on the impact of job enrichment and job enlargement and how employees respond to it in terms of their performance and how motivated they get. Back ground Information Job design with the concept of job enrichment and job enlargement came about with rapid technological advancements at the turn of the 20th century when mass production and assembly line operations emerged. As jobs continue to become more sophisticated and specialized, the need for an educated and motivated workforce has become indispensable. The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Managers have largely been interested in maximizing output from available resources. Economists and social scientists have raised questions about the organization of work in relation to issues of the individual and society in general. It is also important for the HR departments of organizations to understand the importance of job design. As Well-designed jobs help to accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. According to Hackman and Lawler (1971) a job will be motivating and intrinsically only if it high on all five of the core dimensions which are skill, variety, autonomy, task identify and feedback. It is only then that an employee would perform better than expected. Related definitions Job design: It refers to the process of determining exactly what an employee does on the job: the tasks, duties, responsibilities, decision-making and the level of authority. Job enrichment: Job enrichment adds newÃâà sourcesÃâà ofÃâà job satisfactionÃâà by increasing the level ofÃâà responsibilityÃâà of theÃâà employee. It is also calledÃâà job enhancementÃâà orÃâà vertical job expansion. Job enlargement: Job designÃâà techniqueÃâà in which the number ofÃâà tasksÃâà associatedÃâà with aÃâà job is increased and appropriateÃâà trainingÃâà provided to add greater variety toÃâà activities, thus reducing monotony. It is a horizontalÃâà restructuringÃâà methodÃâà in that the job is enlarged by adding related tasks. Job enlargement may alsoÃâà resultÃâà in greaterÃâà workforce flexibility. Job involvement: The degree, to which an employee identifies with his job, actively participates in it, and considers his job performance important to his self-worth. Internal motivation: Learners are motivated from within by personal needs or wants that are positive in nature such as a desire to succeed or love of learning. High morale: High morale is a concept that states high emotional or mental condition with respect to cheerfulness and confidence. Job performance: Job performance is a commonly used, yet poorly defined concept in industrial and organizational psychology, the branch of psychology that deals with the workplace. It most commonly refers to whether a person performs their job well. Despite the confusion over how it should be exactly defined, performance is an extremely important criterion that relates to organizational outcomes and success. Problem development The reason why I am conducting this research is to judge the impact of job enrichment and job enlargement on employee performance. As we know that the concepts of job design that include enrichment and enlargement are not widely used in Pakistan, therefore this research will give a proper perspective on how job enrichment and enlargement impacts employee performance. Secondly because of the fact that whether these concepts of job design will be helpful to motivate employees, increase employee performance and productivity. Literature review Job design and its approaches are usually considered to have begun with scientific management in the year 1900. Pioneering scientific managers such as Taylor (1947), Gilbreth (1911), and Gilbreth and Gilbreth (1917) systematically examined jobs with various techniques. They suggested that task design might be the most prominent element in scientific management. Robert A. Karasek (1971) described some implications of job redesign. He explained that job enrichment and job enlargement helps employees to develop new skills and face new challenges. Job enrichment specially is the major driving force for the employees that motivate them to perform much better. It was also observed that well designed jobs have a positive impact on employee satisfaction and quality performance. Another important factor stressed upon by Robert A. Karasek was that some employees do not have the motivation that is repetitive to the enriched job. This results in less satisfaction and lower work output. According to Argyris (1964) and Blauner (1964) simple, routine, non challenging often produce dissatisfaction and demoralization of workers. They suggested that for optimal worker motivation tasks should be enlarged rather than simplified. In a no. of different experiments it has been showed job enlargement has a positive impact on motivation and performance. With respect to the design of individual jobs, the first major theory was that of Herzberg and his colleagues (Herzberg 1959). Their two-factor theory distinguished between two types of factors, namely motivators, which are intrinsic to the work itself (e.g. achievement, recognition, and responsibility), and hygiene factors, which are extrinsic to the work (e.g. work conditions, pay, and supervision). The proposition was that the hygiene factors are absolutely necessary to maintain the human resources of an organization. According to Hertzbergs theory, only a challenging job has the opportunity for achievement, recognition, advancement and growth that will motivate personnel. According to Hackman and Lawler (1971) a job will be motivating and essentially satisfying only if it is high in all 5 core dimensions. The core dimensions are autonomy, task identity, feedback, variety and skill. It is only then a person finds that performing well leads to important intrinsic rewards such as feeling of heightened self-esteem, personal growth and worth wile accomplishments. Finally it was proposed that only people who have strong desire for higher order need satisfaction will respond to jobs that are high on all core dimensions. That is unless workers value feeling of accomplishment and growth; they will be unlikely to respond positively to a job which is structured to provide opportunities for their attainment through hard work. It was found that when jobs were high on all core dimensions employees who were desirous of higher order need satisfaction tended to have high morale, high work motivation, few absences from work and be rated by their supervisors doing high quality work. Thus this theory emphasized a job high on all core dimensions will result in higher motivation and better results in terms of performance. According to Podsakoff (1996) enriched jobs have been found to provide fundamentally satisfying tasks and job enrichment is positively related to a wide variety of employee attitites and performance. As stated by John R. Cook (1997) the objective of good job design is to design jobs which allow people to perform tasks in a safe, efficient and economical manner which facilitate the realization of various organizational goals such as profit and increased production. The goal of job enrichment is to improve employee satisfaction and performance by increasing job scope vertically allowing opportunities for personal achievement, recognition and growth. Job enrichment principles were largely associated with the phenomena that enriching a job is proposed to increase positive work outcomes that is motivation and performance and decrease negative outcomes which included stress and boredom. Problem definition The impact of job enrichment and job enlargement on employee motivation and performance. Statement of study objectives Hypothesis H0: Job enrichment does not have a positive impact on employee performance. H1: Job enrichment has a positive impact on employee performance. H0: Job enlargement does not have a positive impact on employee performance. H1: Job enlargement has a positive impact on employee performance. Theoretical framework Job enrichment Robert A. Karasek, Jr (1979) J.Lee (2004) Boredom Strain Job dissatisfaction Physiological distress Intellectual stimulation Diversified workforce Employee performance Employee motivation Innovation Job enlargement Edward E Lawler (1973), John R cook (1997), J.Lee (2004) More opportunities Develop new skills High morale High work motivation Variable reference list Robert A. Karasek, Jr.(1979) Job Demands, Job Decision Latitude, and Mental Strain: Implications for Job Redesign. Administrative Science Quarterly, Vol. 24, No. 2 (Jun., 1979), pp. 285-308. Edward E Lawler , J Richard Hackman (1973) Effects of Job Redesign: A Field Experiment. Journal of Applied Social Psychology, 1973, 3, 1, pp. 49-62. J.Lee Whittington, Viki L Goodwin (2004) Transformational leadership, goal difficulty, and job design: Independent and interactive effects of employee outcome. Leadership quarterly 15 (2004) 593-606 John R. Cook (1997) Job enrichment and mental workload in computer based work: implications for adaptive job design. International journal of industrial Ergonomics 24 (1999) 13-23. Christopher Orpen (2001) Effect of job Enrichment on employee satisfaction, motivation, involvement and performance. A field experiment. Department of Psychology, University of the Witwatersrand, 1, Jan Smuts Avenue, Johannesburg 2001, South Africa. Michael J. Smith, Pascal C. Sainfort (1989) A balance theory of Job design for stress reduction. Department of Industrial Engineering, University of Wisconsin, Madison, WI 53706 U.S.A. Received 17 October 1988;Ãâà accepted 5 January 1989.Ãâà Available online 27 February 2003. Theoretical justification As I have stated earlier that job enrichment and job enlargement are the most important aspects of job design in order to motivate employees so that they give better performance. The variables mentioned in the framework basically represent that why job enrichment and job enlargement is there and what are their implications. All variables are directed towards increasing employee motivation and performance. The framework shows that through job enrichment and job enlargement according to the variables (Boredom, Strain, Job dissatisfaction, Physiological distress, and Intellectual stimulation) a job can be made more interesting with reduced levels of boredom and repetitive movements which will in turn motivate employees to perform exceedingly well than anticipated. Job enrichment also intellectually stimulates employees as think out of the box, thus motivating them towards better performance. Apart from that diversified workforce and innovation are two such variables that are positively related to employee performance. The more diversified and specialized a job the better is the performance as all specialist ar put to work. Lastly through innovation as well employees tend to perform really well. Elements of research design Type of research: Applied Study setting: Natural Nature of data: primary data Unit of analysis: organizations Reference period: (Jan- Aprill 2011) Survey research: working population Statement of analytical approach: qualitative and quantitative questionnaires if required statistical modeling Limitations Respondents bias Time constraints (less sample size) Complete access to different departments of an organization References used www.jstor.com www.sceincedirect.com www.google.scholar.com www.businessdictionary.com http://www.allbusiness.com/human-resources/employee-development/100470-1.html
Monday, August 19, 2019
Julius Caesar :: essays research papers
William Shakespeare's play, Julius Caesar, is mainly based on the assassination of Julius Caesar. The various men who happened to object to his assassination had different personal desires for their actions. Depending on each of their actions, words or even tone of voice they may misrepresent them and may be misinterpreted. Brutus, Cassius, and Antony had motives for their actions. I will explain what each of them stood to gain from the death of Caesar. Brutus, servant and close friend to Caesar, has a strong relationship with Caesar but a stronger relationship with Rome and it people. Brutus was a very noble man. He tries to justify the death of Caesar but he can not get the thought of cold-blooded murder out of his mind. One of the reasons Brutus would conspire against Caesar is that he loved the Roman people more than Caesar. Brutus was the head of the conspiracy because the Romans respected his judgement and loyalty to the Roman Empire. If he would have loved Caesar more than Rome's people he never would have killed Caesar for the Roman people. Cassius is the most significant character for his ability to perceive the true motives of the characters. Cassius thinks the nobility of Rome is responsible for the government of Rome. Cassius strongly dislikes Caesar personally. He sees Brutus as the person that will unite the nobles in the conspiracy. Cassius tries to use Brutus to achieve his goal. His main goal is to remove Caesar from power by using his persuasive speaking. Antony first appears in the play as a devoted follower of Caesar. He is also one of the great triumvirs. When he gains permission to speak at Caesar's funeral he undermines the public confidence to seize the power of Rome. In his speech at the capitol he concentrates on Brutus and appeals to the emotions of the people of Rome. At the end of the play, he publicly glorifies Brutus in order to heal the public's wounds caused by the loss of Brutus, Cassius, and Caesar.
Sunday, August 18, 2019
D-day :: essays research papers fc
D-day One of the most important days during World War II was D-day, it became a ââ¬Å"dayâ⬠so important it changed a continent. Don't be mistaken by the word D-day it did not all happens in just one day but many days. D-day was just a code name for the day that Operation Overload started. D-day is very well known for the beginning of the end of the war in Europe and Hitler's rule over most of the ruined continent of Europe. Many say that if it were not for D-day Europe would have definitely fell to Hitler. à à à à à There are a few terms used when people talk about D-day. One of them is D-day, which is a military term used telling the unknown date in the future when an attack will be launched. It is most commonly used for the invasion of Normandy. à à à à à The second term not often herd but, still is used is H-hour. H-hour is the hour that D-day is supposed to start. H-hour for the three Normandy invasion sites were varied, because of weather, as much as eighty-five minutes. à à à à à The third term used is Overload. Which was the code name for the entire Allied plot to invade and free France and Western Europe. à à à à à The fourth term used when talking about D-day is Neptune. Neptune stood for the first phase of Operation Overload. Which was the planning of the Normandy assault, the movement of the armada across the English Channel, and the battle for the beaches. à à à à à The fifth term sometimes used when talking about D-day is The Atlantic Wall. The Atlantis Wall was the Germanââ¬â¢s first line of defense in the west, which was along the English Channel coast of France. The wall was only partly completed by June of 1944. It had many guns placed on it, beach obstacles, and mine fields. The part of the wall directly across from England and manned by Field Marshal Rammel's seventeenth and eighteenth armies containing thirty-seven divisions. à à à à à Another word people use when they talk about D-day is landing craft. There are six different types of landing craft used on D-day. The first type is LCVP, which stands for Landing Craft Vechile and Personal; it took thirty-two men ashore. The second type is LCA, which stands for Landing Craft Assault; it was and armored wooden craft, which delivered troops. The third type is LCI, which stands for Landing Craft Infantry; it carried one hundred fifty-eight small landing craft, which individually delivered two hundred troops.
Adult Learning In Groups :: Learn Education Adults Essays
Adult Learning In Groups Groups [can] exert powerful influence both to advance and to obstruct learning. A group can be an environment in which people invent and explore symbolic structures for understanding the world, learning from each other and trying out for themselves the discourse of the domain of knowledge they seek to acquire. Alternatively, groups can encourage conformity, squander time and energy on ritual combat, revel in failure, and generally engage in all sorts of fantasy tasks that have little or nothing to do with learning. (Knights 1993, p. 185) The use of groups has deep historical roots in adult education, and, if asked, most adult educators would say that learning in groups is a fundamental principle of the field. Adult educators use groups frequently in structuring learning experiences, and groups also form the basis for much informal adult learning both within and outside institutional boundaries. Although group theory once played a major role in shaping the field, the topic of learning in groups has been relatively unexamined in the recent literature. This Practice Application Brief provides information that can be used in developing adult learning groups in formal educational settings. First, the nature of learning in groups is considered, followed by discussions of the role of the facilitator and forming groups. Guidelines for structuring group learning experiences for adults conclude the Brief. The Nature of Group Learning Little research exists on how learning occurs in groups (Cranton 1996; Dechant, Marsick, and Kasl 1993). Futhermore, when forming groups, adult educators tend to focus on helping learners work effectively together rather than on helping them understand the learning processes that may be occurring in the group (Dechant, Marsick, and Kasl 1993). By drawing on Habermas' domains of knowledge and interests, Cranton (1996) has developed a helpful way of thinking about how groups can accomplish or facilitate different types of learning. Cranton suggests that there are three types of group learning, each affiliated with the following kinds of knowledge proposed by Habermas-- instrumental (scientific, cause-and-effect information) communicative (mutual understanding and social knowledge) emancipatory (increased self-awareness and transformation of experience) As outlined by Cranton, the type of learning that occurs in groups varies according to the learning tasks and goals. Group learning that has as its goal the acquisition of instrumental knowledge is called cooperative. In cooperative learning groups, "the focus is on the subject matter rather than on the inter- personal process .
Saturday, August 17, 2019
Best Friend vs Dog
Koski 1 Terry Koski Instructor: Melissa Wilke English Comp. 1 March 26, 2013 Best Friend vs Dogs Believe it or not, Friends and dogs have many similarities. They both make great companions and we here, they both play an important role in our life. The real subject I would like to point out is who's actually a better friend? I believe man's best friends are more true than their human counterpart because you can trust them.Try to question yourself, who's the one who will always be there when your in trouble,sad or sick? I'm not trying to say that all friends aren't as loyal as our pet, but it's arduous to find a friend that's as dedicated to only you no matter what. If you ever do have a friend that's as loyal, appreciate that person and treasure it because it's as rare as getting hit by lightning. Who is your best friend? My opinion, the answer is: a person that reflects yourself while looking in the mirror.Having a best friend is the best feeling in the world, it's like they are a pa rt of you in a way that's truly hard to explain until you find it. A best friend is someone you spend the majority of your time with because they have the most common with you. They will attend all the activities you both share the love for. Your dog won't be able to compete with that the majority of the time, but when you get home they will be waiting for you with the tail wagging acting like he or she hasn't seen you in years.Koski 2 I would like to look at the advantages of Man's best friend, No arguments or drama, there is never a hidden agenda in being your friend. It's pure Loyalty and Love for you as who you are, not what you have or what you can give materially. All the dog want's is a little attention and most of all love. Everything is so pure with them, there is absolutely no stress involved, which in this day and age is a rarity. There is no competition, no acting like your somebody your not to please anyone, they simply don't care.You can be who and what you are all the time. It doesn't matter if your wearing off brand clothes, your hair isn't done or you only have a penny to your name, the love is always there. There is never a awkward moment either, you can play with them for awhile and when your done, they are. It's a simple living with Man's Best Friend, although there is no verbal interaction from their side it's as if they are talking to you by the look on their face and their tail wagging.I guess this is the time to hit on the advantages of having a Best Friend, this is tough for me because all to often a friend has let me down. The great thing about having a best friend is human interaction, watching and going to a sporting events together, going on trips and creating memories that will last a life time. Asking for advice during tough times and giving it as well. Friends are self efficient, you don't have to feed them or care for them, they don't rely on you 100% for their well being
Friday, August 16, 2019
Describe the actions to take if a child or young person alleges harm or abuse in line with policies and procedures of own setting Essay
If a child or young person alleges harm or abuse in our setting we would follow the following guidance, policies and procedures: Listen to the child and take whatever he/she is saying seriously as the child will only disclose such information to somebody they feel they can trust. Offer support without judging or criticizing anything they are saying, try not to display shock or disbelief. Try to clarify information without over questioning or asking direct questions, writing down word for word what the child discloses, asking the child to draw or write (if appropriate) in a quiet, comfortable environment. Do not criticize the perpetrator as the child may still love this person. Be honest about your responsibilities and try to explain what happens next. Explain your responsibilities about confidentiality, and do not promise confidentiality. Wherever possible, consult with your manager or nominated safeguarding person. Make sure that there are no delays in protecting the child. Within the principle of keeping the child safe, do not do anything that may aggravate the situation or cause further harm or distress to the child. Record relevant information including dates and times in out incident record book along with drawings of the childââ¬â¢s injuries that we have witnessed (if relevant). My line manager who is also the safeguarding officer would then report immediately to social services who would then hopefully take the matter further, whether that is contacting the police, health visitor or/and the childââ¬â¢s family. We would give evidence if needed, attend any core meeting and follow up to make sure the child was getting the safety that he/she deserves even if this means continuing to pursue our concerns via the health visitor, social services etc.
Thursday, August 15, 2019
Apple Is Expanding Its Distribution Channels
Apple is Expanding its Distribution Channels Cliff Edwards of Business Week harped on conflicts with existing retailers such as CompUSA and Sears, quoting CompUSAââ¬â¢s Lawrence N. Mondry, who declared, ââ¬Å"When you choose to compete with your retailers, clearly thatââ¬â¢s not a comfortable situation. â⬠Mondry could have been describing the experience Mac buyers had when they stepped into most CompUSA stores. It was even worse at Sears. Realizing that they were being held over a barrel by big retailers that were used to calling the shots with computer OEMs and frequently provided a horrible purchasing environment for Apple products, the company did what it had to and took control of distribution. Apple retail stores would give the company the opportunity to ââ¬Å"leapfrogâ⬠past dependence on other retailers. Daniel T. Niles of Lehman Brothers also saw the possibilities, telling MacWorld, ââ¬Å"Apple has the ability to start attracting new customers with the launch of their higher-end retail store strategy. You canââ¬â¢t mention the surge in Mac sales without touching on the ââ¬Å"Halo Effectâ⬠of the iPod. Apple made the iTunes/iPod combination available for Windows users. That move created several new distribution opportunities for Apple. First, it gave Windows users the opportunity to try Apple products without having to take the frightening plunge into the world of Macintosh. Apple finally had ac cess to a vast pool of Windows users it had previously been unable to touch. Second, it opened up a secondary market for iPod accessories and tie-ins. Had the iPod only been available for Macintosh users, a secondary market would have developed, but it would have been much, much smaller. Apple would never have been able to strike deals with auto manufacturers, for example. The connector on the bottom of every iPod (except the shuffle) became the point of entry to an incredible array of third-party products, and as that market grew, the iPod rapidly became the de facto standard portable multimedia device. Third, it gave the iTunes Store a tremendous head start. While a digital music store is handy in itself, none of the previously-existing stores had made much of a dent in consumer behavior. They didnââ¬â¢t operate particularly well with Windows-based MP3 players, and they didnââ¬â¢t offer broad enough music libraries. Apple struck deals with all the major labels and created a store that provided an easy, addictingly-convenient interface and seamless integration with the iPod. As the universe of purchased iPods grew, so did the market for the iTunes Store. The integration of iPod and iTunes also created a gestalt effect as Apple moved beyond music. Just as the Apple retail stores bypassed middlemen, the iTunes/iPod combination created a direct link between Apple and its customers. As Apple adds more capabilities to the iTunes Store, and does the same with the iPod, the two should continue to energize each other, provided Apple rolls out the right kinds of features. In 2001 Apple Computer has been taken a decision to open a series of retail stores that would display their entire line of Apple computer products, software and peripherals. Part of the decision, Apple's declining share of the computer market. Now the company has opened over 130 stores, including in Japan, Canada and the UK. It's latest annual report states that they will continue capital expenditures for retail operations, indicating that they have a long-term strategy for opening more stores. Apple Computer Store Products Hardware: It includes, iMac, Mac Mini, iBook, Mac Book, Mac Book Pro, iPod, Apple Cinema Displays, Airport Cards, iSight, Apple accessories etc. These are purchased from the Apple Store Online or by the phone. Apple Software: It includes iLife, iWork application bundles, Mac OS X, DVD Studio Pro, FinalCut Pro, and other miscellaneous Apple software titles. Third Party Software: It is made for Mac OS X, such as productivity software, design software, utilities, games much everything new that has been released for Mac OS X. Select Third Party Accessories: In this Apple ranges starts from Apple notebooks and iPod sleeves to speakers, printers, scanners, memory upgrades, and digital cameras. In Apple Store there are two types, those are: Retail store Online store The Apple Store, Regent Street, London, UK, is part of a chain of retail stores owned and operated by Apple Inc. , dealing in computers and consumer electronics. As of April 2008, Apple has opened 209 stores, including 181 in 37 US states, 15 in the UK (14 in England, 1 in Scotland), seven in Japan, and 4 in Canada. Recently, Apple opened its first store in continental Europe, in Rome in Italy. In 2008, Apple will be opening 3 Australian stores, 1 located in Melbourne and 2 in Sydney. This store is the first Apple Store in Europe. It opened in autumn 2004 Will Apple's stainless steel architecture have to take a background to the historic buildings of other countries? In Japan, Apple uses English almost exclusively. But other countries may not embrace English, preferring to see their own language used in store signage. Apple will have to balance the cost of constructing a store, recruiting a suitable staff, and operating the store against the potential revenues, which in turns depends upon the registered Macintosh community, median income, currency trends and general retailing environmentââ¬âjust like at home! Appleââ¬â¢s centralized and extremely consumer oriented approach to mobile software distribution is revolutionary My argument is that itââ¬â¢s revolutionary in the same way the iPod and iTunes were revolutionary. Basically, the formula is similar to why Apple succeeded w/ the iPod and iTunes despite competition from manufacturers like Sony, ancient models for music distribution, and technology inept publishers Appleââ¬â¢s Solution: take the carriers out of the picture and give the developers a low cost or zero cost distribution channel Jobs began Apple's turnaround with the 2001 introduction of the iPod, which defined and then dominated the portable-music-player marketââ¬âand which became central to the resuscitation of Apple's computer line. The Mac, once derided as a toy, today is the best personal computer on the planet, period. And the iPhone is the best smart phone. Nothing else comes close. As of the third quarter of 2008, Apple's iPhone was outselling the Research in MotionBlackBerry, even though the iPhone had been in the market for only 15 months. When measured by revenues, Apple has become the world's third-largest mobile-phone maker, behind Nokia and Samsung. All this is happening just as mobile devices are poised to become the most important computing platform. same or similar products. Strategic management, horizontal integration is a theory of ownership and control. It is a strategy used by a business or corporation that seeks to sell one type of product in numerous markets. To get this market coverage, several small subsidiary companies are created. Each markets the product to a different market segment or to a different geographical area. This is sometimes referred to as the horizontal integration of marketing. The horizontal integration of production is where a firm has plants in several locations producing similar products. Apple is leader on the MP3 player market. Dynamic approach: history of a firm can explain its leader position. In my example, Apple innovates with its couple iPod+iTunes and keeps the leadership since Some points of its strategy are astonishing because they look similar as Apple strategy for PC. Apple doesn't want to licence its own DRM, so if you want buy a song on internet for your iPod you have to go to the iTunesMuciStore and to listen this song directly on a MP3 player you must have an iPod (some consumers lodge a complaint against Apple). So, Apple does the same thing for its MP3 player than the computers about twenty years ago. Short term Apple wins but the market increases and we can't know how this leadership will progress and if Apple would change its strategy. The theory of games can help us to understand this choice and the risks. Installed firms are Stackelberg leader on the market, the potential entrance adapt its quantity. (Bain, J. (1968) Apple Inc. and its wholly owned subsidiaries design, manufacture, and market personal computers, portable digital music players, and mobile communication devices, and sell various related software, services, peripherals, and networking solutions. The company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, it sells various third-party Macintosh, iPod, and iPhone compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, and digital content through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers. As of December 27, 2008, it had 251 retail stores. Apple Inc. , formerly known as Apple Computer, Inc. , was founded in 1976. The company is headquartered in Cupertino, California Company Background Apple Inc. and its wholly-owned subsidiaries (collectively ââ¬Å"Appleâ⬠or the ââ¬Å"Companyâ⬠) design, manufacture, and market personal computers, portable digital music players, and mobile communication devices and sell a variety f related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition, the Company sells a variety of third-party Macintoshà ® (ââ¬Å"Macâ⬠), iPodà ® and iPhoneâ⠢ compatible products, including application software, pri nters, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores, and digital content through the iTunes Storeà ®. The Company sells to consumer, small and mid-sized business (ââ¬Å"SMBâ⬠), education, enterprise, government, and creative customers. The Companyââ¬â¢s fiscal year is the 52 or 53-week period that ends on the last Saturday of September. Unless otherwise stated, all information presented in this Form 10-K is based on the Companyââ¬â¢s fiscal calendar. Business Strategy The Company is committed to bringing the best personal computing, portable digital music and mobile communication experience to consumers, students, educators, businesses, and government agencies through its innovative hardware, software, peripherals, services, and Internet offerings. The Companyââ¬â¢s business strategy leverages its unique ability to design and develop its own operating system, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design. The Company believes continual investment in research and development is critical to the development and enhancement of innovative products and technologies. In addition to evolving its personal computers and related solutions, the Company continues to capitalize on the convergence of the personal computer, digital consumer electronics and mobile communications by creating and refining innovations, such as the iPod, iPhone, iTunes Store, and Apple TVà ®. The Company desires to support a community for the development of third-party products that complement the Companyââ¬â¢s offerings through its developer programs. The Company offers various third-party software applications and hardware accessories for Macà ® computers, iPods and iPhones through its retail and online stores, as well as software applications for the iPhone platform through its iTunesà ® App Store. The Companyââ¬â¢s strategy also includes expanding its distribution network to effectively reach more of its targeted customers and provide them with a high-quality sales and post-sales support experience. Consumer and Small and Mid-Sized Business The Company believes a high-quality buying experience with knowledgeable salespersons who can convey the value of the Companyââ¬â¢s products and services greatly enhances its ability to attract and retain customers. The Company sells many of its products and resells certain third-party products in most of its major markets directly to consumers and businesses through its retail and online stores. The Company has also invested in programs to enhance reseller sales, including the Apple Sales Consultant Program, which places Apple employees and contractors at selected third-party reseller locations. The Company believes providing direct contact with its targeted customers is an efficient way to demonstrate the advantages of its Mac computers and other products over those of its competitors. At the end of fiscal 2008, the Company had opened a total of 247 retail stores, including 205 stores in the U. S. and a total of 42 stores internationally. The Company has typically located its stores at high-traffic locations in quality shopping malls and urban shopping districts. A goal of the Companyââ¬â¢s retail business is to expand its installed base through sales to customers who currently do not already own the Companyââ¬â¢s products. By operating its own stores and locating them in desirable high-traffic locations, the Company is better positioned to control the customer buying experience and attract new customers. The stores are designed to simplify and enhance the presentation and marketing of the Companyââ¬â¢s products and related solutions. To that end, retail store configurations have evolved into various sizes in order to accommodate market-specific demands. The stores employ experienced and knowledgeable personnel who provide product advice, service, and training. The stores offer a wide selection of third-party hardware, software, and various other accessory products and peripherals selected to complement the Companyââ¬â¢s own products. Business Organization The Company manages its business primarily on a geographic basis. The Companyââ¬â¢s reportable operating segments consist of the Americas, Europe, Japan, and Retail. The Americas, Europe, and Japan reportable segments do not include activities related to the Retail segment. The Americas segment includes both North and South America. The Europe segment includes European countries as well as the Middle East and Africa. The Retail segment operates Apple-owned retail stores in the U. S. and in international markets. Each reportable geographic operating segment and the Retail operating segment provide similar hardware and software products and similar services. Further information regarding the Companyââ¬â¢s operating segments may be found in Part II, The Company has signed multi-year agreements with various cellular network carriers authorizing them to distribute and provide cellular network services for iPhone 3G in over 70 countries. These agreements are generally not exclusive with a specific carrier, except in the U. S. , U. K. , France, Germany, Spain, Ireland, and certain other countries. The Company expects to ship iPhone 3G in over 70 countries by the end of calendar year 2008. Markets and Distribution The Companyââ¬â¢s customers are primarily in the consumer, SMB, education, enterprise, government, and creative markets. The Company distributes its products through wholesalers, resellers, national and regional retailers, and cataloguers. No individual customer accounted for more than 10% of net sales in 2008, 2007, or 2006. The Company also sells many of its products and resells certain third-party products in most of its major markets directly to customers through its own sales force and retail and online stores. Significant portions of the Companyââ¬â¢s Mac computers, iPods, iPhones, logic boards, and other assembled products are manufactured by outsourcing partners, primarily in various parts of Asia. A significant concentration of this outsourced manufacturing is currently performed by only a few of the Companyââ¬â¢s outsourcing partners, often in single locations. Certain of these outsourcing partners are the sole-sourced suppliers of components and manufacturing outsourcing for many of the Companyââ¬â¢s key products, including but not limited to final assembly of substantially all of the Companyââ¬â¢s portable Mac computers, iPods, iPhones and most of the Companyââ¬â¢s iMacs. Although the Company works closely with its outsourcing partners on manufacturing schedules, the Companyââ¬â¢s operating results could be adversely affected if its outsourcing partners were unable to meet their production commitments. The Companyââ¬â¢s purchase commitments typically cover its requirements for periods ranging from 30 to 150 days. Foreign and Domestic Operations and Geographic Data The U. S. represents the Companyââ¬â¢s largest geographic marketplace. Approximately 57% of the Companyââ¬â¢s net sales in 2008 came from sales to customers inside the U. S. Final assembly of the Companyââ¬â¢s products is currently performed in the Companyââ¬â¢s manufacturing facility in Ireland, and by external vendors in California, the Republic of Korea (ââ¬Å"Koreaâ⬠), the Peopleââ¬â¢s Republic of China (ââ¬Å"Chinaâ⬠) and the Czech Republic. Currently, the supply and manufacture of many critical components is performed by sole-sourced third-party vendors in the U. S. , China, Japan, Korea, Malaysia, Philippines, Taiwan, Thailand, and Singapore. Sole-sourced third-party vendors in China perform final assembly of substantially all of the Companyââ¬â¢s portable products, including MacBook Pro, MacBook, MacBook Air, iPods, iPhone, and most of the Companyââ¬â¢s iMacs. Margins on sales of the Companyââ¬â¢s products in foreign countries, and on sales of products that include components obtained from foreign suppliers, can be adversely affected by foreign currency exchange rate fluctuations and by international trade regulations, including tariffs and antidumping penalties. The Companyââ¬â¢s operations and performance depend significantly on worldwide economic conditions Global markets for personal computers, digital music devices, mobile communication devices, and related peripherals and services are highly competitive and subject to rapid technological change. If the Company is unable to compete effectively in these markets, its financial condition and operating results could be materially adversely affected. The Company competes in global markets that are highly competitive and characterized by aggressive price cutting, with its resulting downward pressure on gross margins, frequent introduction of new products, short product life cycles, evolving industry standards, continual improvement in product price/performance characteristics, rapid adoption of technological and product advancements by competitors, and price sensitivity on the part of consumers. The Companyââ¬â¢s ability to compete successfully depends heavily on its ability to ensure a continuing and timely introduction of new innovative products and technologies to the marketplace. The Company believes it is unique in that it designs and develops nearly the entire solution for its personal computers, consumer electronics, and mobile communication devices, including the hardware, operating system, several software applications, and related services. As a result, the Company must make significant investments in research and development and as such, the Company currently holds a significant number of patents and copyrights and has registered and/or has applied to register numerous patents, trademarks and service marks. By contrast, many of the Companyââ¬â¢s competitors seek to compete primarily through aggressive pricing and very low cost structures. If the Company is unable to continue to develop and sell innovative new products with attractive margins or if other companies To remain competitive and stimulate customer demand, the Company must successfully manage frequent product introductions and transitions. Due to the highly volatile and competitive nature of the personal computer, consumer electronics and mobile communication industries, the Company must continually introduce new products and technologies, enhance existing products, and effectively stimulate customer demand for new and upgraded products. The success of new product introductions depends on a number of factors, including timely and successful product development, market acceptance, the Companyââ¬â¢s ability to manage the risks associated with new products and production ramp issues, the availability of application software for new products, the effective management of purchase commitments and inventory levels in line with anticipated product demand, the availability of products in appropriate quantities and costs to meet anticipated demand, and the risk that new products may have quality or other defects in the early stages of introduction. Accordingly, the Company cannot determine in advance the ultimate effect of new product introductions and transitions on its financial condition and operating results. The Companyââ¬â¢s success depends largely on its ability to attract and retain key personnel. Much of the Companyââ¬â¢s future success depends on the continued service and availability of skilled personnel, including its CEO, its executive team and key employees in technical, marketing and staff positions. Experienced personnel in the technology industry are in high demand and competition for their talents is intense, especially in the Silicon Valley, where most of the Companyââ¬â¢s key employees are located. The Company has relied on equity awards as one means for recruiting and retaining this highly skilled talent. Accounting regulations requiring the expensing of stock options have resulted in increased stock-based compensation expense, which has caused the Company to reduce the number of stock-based awards issued to employees and could negatively impact the Companyââ¬â¢s ability to attract and retain key personnel. Additionally, significant adverse volatility in the Companyââ¬â¢s stock price could result in a stock optionââ¬â¢s exercise price exceeding the underlying stockââ¬â¢s market value or a significant deterioration in the value of restricted stock units (ââ¬Å"RSUsâ⬠) granted, thus lessening the The Companyââ¬â¢s business is subject to the risks of international operations. The Company derives a large and growing portion of its revenue and earnings from its international operations. As a result, its financial condition and operating results could be significantly affected by risks associated with international activities, including economic and labor conditions, political instability, tax laws (including U. S. taxes on foreign subsidiaries), and changes in the value of the U. S. dollar versus local currencies. Margins on sales of the Companyââ¬â¢s products in foreign countries, and on sales of products that include components obtained from foreign suppliers, could be materially adversely affected by foreign currency exchange rate fluctuations and by international trade regulations, including tariffs and antidumping penalties. The Companyââ¬â¢s primary exposure to movements in foreign currency exchange rates relate to non-U. S. dollar denominated sales in Europe, Japan, Australia, Canada, and certain parts of Asia, as well as non-U. S. dollar denominated operating expenses incurred throughout the world. Weakening of foreign currencies relative to the U. S. dollar will adversely affect the U. S. dollar value of the Companyââ¬â¢s foreign currency-denominated sales and earnings, and generally will lead the Company to raise international pricing, potentially reducing demand for the Companyââ¬â¢s products. In some circumstances, due to competition or other reasons, the Company may decide not to raise local prices to the full extent of the dollarââ¬â¢s strengthening, or at all, which would adversely affect the U. S. dollar value of the Companyââ¬â¢s foreign currency denominated sales and earnings. Conversely, a strengthening of foreign currencies, while generally beneficial to the Companyââ¬â¢s foreign currency-denominated sales and earnings, could cause the Company to reduce international pricing, thereby limiting the benefit. As strengthening of foreign currencies may also increase the Companyââ¬â¢s cost of product components denominated in those currencies. The Company has used derivative instruments, such as foreign exchange forward and option positions, to hedge certain exposures to fluctuations in foreign currency exchange rates. The use of such hedging activities may not offset any or more than a portion of the adverse financial effects of unfavorable movements in foreign exchange rates over the limited time the hedges are in place. The Companyââ¬â¢s retail business has required and will continue to require a substantial investment and commitment of resources and is subject to numerous risks and uncertainties. Through September 27, 2008, the Company had opened 247 retail stores. The Companyââ¬â¢s retail stores have required substantial fixed investment in equipment and leasehold improvements, information systems, inventory, and personnel. The Company also has entered into substantial operating lease commitments for retail space with terms ranging from 5 to 20 years, the majority of which are for 10 years. Certain stores have been designed and built to serve as high-profile venues to promote brand awareness and serve as vehicles for corporate sales and marketing activities. Because of their unique design elements, locations and size, these stores require substantially more investment than the Companyââ¬â¢s more typical retail stores. Due to the high fixed cost structure associated with the Retail segment, a decline in sales or the closure or poor performance of individual or multiple stores could result in significant lease termination costs, write-offs of equipment and leasehold improvements, and severance costs that could have a material adverse effect on the Companyââ¬â¢s financial condition and operating results. The Companyââ¬â¢s headquarters are located in Cupertino, California. The Company has a manufacturing facility in Cork, Ireland. As of September 27, 2008, the Company leased approximately 4. 2 million square feet of space, primarily in the U. S. and to a lesser extent, in Europe, Japan, Canada, and the Asia Pacific region. The major facility leases are generally for terms of 3 to 20 years and generally provide renewal options for terms of 1 to 5 additional years. Leased space includes approximately 1. 8 million square feet of retail space, a majority of which is in the U. S. Lease terms for reta il space range from 5 to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options. As of September 27, 2008, the Company owned a 367,000 square-foot manufacturing facility in Cork, Ireland that also housed a customer support call center. The Company also owned 805,000 square feet of facilities in Sacramento, California that include warehousing and distribution operations, as well as a customer support call center. In addition, the Company owned approximately 2. 3 million square feet of facilities for research and development and corporate functions in Cupertino, California, including approximately 1. 0 million square feet purchased in 2007 and 2006 for the future development of the Companyââ¬â¢s second corporate campus in Cupertino, California, and approximately 107,000 square feet for a data center in Newark, California. Outside the U. S. , the Company owned additional facilities totaling approximately 129,000 square feet as of September 27, 2008. The Company believes its existing facilities and equipment are well maintained and in good operating condition. The Company has invested in internal capacity and strategic relationships with outside manufacturing vendors, and therefore believes it has adequate manufacturing capacity for the foreseeable future. The Company continues to make investments in capital equipment as needed to meet anticipated demand for its products. Globalization, Technology, and E-business are all major factors influencing today's business world. They influence many of our business related decisions on a daily basis. Some of these decisions could be deciding to use a computer to order a new desk from Singapore or using your cell phone to make a conference call in India. Even Apple's management functions are not immune to these critical factors. Apple began selling personal computers produced in the garage of one of the founders in 1976. They were incorporated in 1977. Apple's first important product, the Apple II, personal computer was released in 1977 and by 1982 sales had increased to over $750 million. (Kimmel, 1998). It was clear that globalization played a big part in this success. Globalization is becoming a must have for large organizations to excel above their competition. With that being said globalization has been influential to Apple's revenue. According to Apple, their ââ¬Å"international sales accounted for 43 percent of the quarter's revenueâ⬠(Dowling, 2005), this is continuing to rise. The rise in revenue is a result of excellent management and planning. Because of the need to go international, Apple created a strategic plan to go forward in the direction of globalization. This type of globalization will involve countries with different needs and different markets. For instance, planning a marketing scheme must involve the different variables that apply for each market. When planning globally, company structure must be taken into consideration. With that being said organization and control go hand in hand Steve Jobs came back once again as the CEO of Apple in 1997. This time he had a new game plan, and Apple started to focus on the digital lifestyle of consumers. This proved to be Appleââ¬â¢s most successful business strategy to date because a once ineffective company now had ruled the computer world. In 2005, Apple announced that it would start using Intel-based chips to run Macintosh computers. In April 2006, Apple announced Boot Camp, which allows users of Intel-based Macs to boot either Mac or Windows OS. This functionality allows users who may need both OSs to own just one machine to run both, albeit not simultaneously
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