1.0 Introduction
Any organization’s success heavily relies on aligning its strategies and practices with the external factors affecting its operations (Meinert, 2018). The case of Apple Inc., one of the leading technology companies globally, is no exception. Apple’s market and competitive environments, both national and international, have played a crucial role in shaping its organizational and HR strategies (Yie et al., 2021). This essay will focus on Apple Inc. and how they interact with their HR practitioners to respond to various national and international markets and competitive environments. In particular, it will look closely at how the organization and its HR strategies can respond to environmental and global factors and how its leaders can shape, develop and respond to the organization’s internal and external environmental factors. It will also consider future HRM trends that Apple and other organizations may face.
2.0 Evaluation of Apple Incorporation Current HRM Strategies
Apple Inc. is a technology giant, that has consistently focused on innovative product design, secure systems, and efficient services, allowing them to maintain its position as a global leader. To further strengthen its competitive edge, Apple has adopted Porter’s generic strategies of cost leadership, differentiation, and focus.
According to Ormanidhi and Stringa (2008), the cost leadership strategy is aimed to establish a lower cost base than competitors, allowing Apple to remain competitively priced and target a broader customer base. This is seen by their supply chain management, which ensures that costs are maintained to a minimum by employing low-cost labor and outsourcing manufacturing (Tasnim, 2018). According to Podony and Hansen (2020), Apple’s use of Apple Care has also assisted the corporation in lowering manufacturing costs while providing enhanced support and a sense of security to its customers.
Their differentiation approach seeks to distinguish Apple goods from their competition (Miller, A. and Dess, 1993). This is demonstrated by their latest cutting-edge technology, such as their Face ID function and intuitive machine learning, which provides consumers with a technical advantage (Baeza Argüello et al., 2021). Furthermore, according to Podony and Hansen (2020), Apple goods frequently include novel features and designs throughout their product line, such as the current MacBook Pro, which is meant to give customers the most efficient and powerful laptop experience.
The focus strategy allows Apple to target a certain market niche and hence obtain a better grasp of their consumers’ needs (Miller, A. and Dess, 1993). Apple Inc. has taken advantage of this technique through its flagship shops, which serve as one-stop shopping experiences, holding a wide choice of products ranging from Macs to iPhones, as well as the most recent accessories and software (Masi, 2009). According to Masi (2009), this enables the organization to focus on specialized initiatives such as educational usage, the creation of instructional films for educational consumers, and the development of marketing programs for students who embrace digital innovation.
Apple’s Human Resources Management (HRM) strategy is consistent with its overall business strategy. For example, in terms of cost leadership, the corporation tries to recruit and keep the most qualified and up-to-date personnel at a price that is compatible with their budgeting plans (Olt et al., 2021). Moreover, Olt et al. (2021) state that Apple gives its employees extensive training classes and workshops that allow them to develop skills that will help them remain competitive in the market while also assisting the company to remain inventive and proactive.
The focused approach is also visible in Apple’s HRM strategy, notably through the employer branding technique, which entails marketing the company’s capabilities and accomplishments, as well as team-building exercises to ensure that employees understand the company’s culture (Dixit, n.d). According to Free Essays (2022), its HRM strategy also tries to guarantee that workers feel motivated and engaged by giving rewards like competitive salaries and promotional chances, as well as creating an engaging work environment. Furthermore, Apple frequently preserves an aspect of globalization in their workplace, allowing its employees to benefit from foreign possibilities, allowing them to expand their skill set, and learn more about the company’s operations throughout the world.
Finally, their differentiating strategy pushes the organization to attract and create a staff that is proactive in addressing complicated consumer demands and imaginative in their problem-solving approach. This emphasizes the necessity of having an enabling culture in which people may develop their talents and expand their knowledge, all of which contribute to Apple’s ongoing competitive advantage (Ouyet Tran, 2022). According to Ouyet Tran (2022), to develop a firm foundation of mutual understanding and strive for joint goals, the Human Resource Management strategy must also be in sync with the organization’s larger strategy.
3.0 Analysis of How HRM Practitioners at Apple Incorporation Respond to National and International Factors at Both Operational and Strategic Levels
Apple Inc, a multinational corporation, faces both national and internal challenges. As a result, HRM practitioners inside organizations must adapt to operational and strategic considerations. Before looking into how these practitioners respond to these elements, it is necessary to identify them using a STEEPLE analysis.
3.1 STEEPLE Analysis
Apple is a leading technology brand for consumer electronics and personal computers that has successfully penetrated the global market, with more than half of its sales coming from countries overseas. Hence, for a technology giant such as Apple, it is important to understand the numerous external factors impacting its business. The STEEPLE analysis of Apple Inc. sheds light on its social technological, economical, environmental, political, and legal aspects, to better assess and evaluate its current strategies and policies.
The social aspect of steeple analysis for Apple includes consumer behaviors, their expectations, and the trends associated with them (Team, 2021). According to Team (2021), with the booming market for mobile devices and growing demand for digital systems, there is a great opportunity for Apple to increase its sales. On the other hand, there is increasing opposition against external repair services, and the Anti-Apple sentiment is rising.
The technological factor highlights the advancements in technology and the competition that Apple has been facing, as many of its competitors are providing technology-driven products at cheap costs (Team, 2021). According to Team (2021), in 2020, Apple introduced Apple Pay and entered a highly monitored financial services sector, with a focus on increasing its technology services and cloud framework for the benefit of its business in cloud computing services.
The economic factors in Apple’s steeple analysis are also closely related to the political side, as the US dollar’s strength affects Apple’s operation and exchange rates, as Apple is reliant on effective imports from other countries in the world (Team, 2021). According to Team (2021), there is an opportunity for growth with the increasing disposable incomes of the target market, but its pricing policy of Apple puts forth a challenge for the company to penetrate the emerging Asian markets.
The environmental aspect of the steeple analysis of Apple primarily focuses on the cost of disposing of its electronic equipment that contains lithium batteries, as they cannot be dumped in landfills. Apple reports its total carbon footprint and works towards reducing it, while many of its products are fabricated at low costs in China, a country that is affected by environmental and social issues.
According to Team (2021), political factors determine the risk factors associated with Apple’s business deals and its global sales. The alarming US-China trade war may decrease Apple’s market share in China due to retaliatory tariffs across international borders, while an increase in US tariffs could increase the cost of Apple products in many global markets. Apple is also subject to the election of a new US government and the conditions of Brexit. In 2020, a global pandemic occurred and disrupted the global economy, affecting Apple’s political and economic factors.
According to Team (2021), the legal aspects concerning Apple’s steeple analysis include the agreement to the protection of private data and compliance with privacy regulations. With the introduction of Apple Pay, the monitoring of the business has increased thus a strong oversight by the government is required in this sector. Apple is reliant on a variety of products covered by intellectual property laws, leaving it at risk of a lawsuit.
3.2 How HRM Practitioners Respond to the International and National Factors
3.2.1 National Level
One of the factors affecting Apple Inc at the operational level is involved political factors e.g the US-China trade war. To respond to the effect of the US-China trade war at the operational level, Apple Inc.’s HRM practitioners have implemented several strategies. For instance, according to Free Essays (2022), HR managers have implemented employee exchange programs to strengthen the company’s bond with the Chinese market, letting employees learn and collaborate in both China and the US. In addition, Apple Inc. has also restructured its value proposition to appeal to Chinese consumers and address their demands, as well as ensure political stability in the region.
At the same time, since Apple Inc.’s operations are affected by changes in the exchange rate, with the US dollar strengthening, the HRM practitioners need to keep salaries and wages competitive for its employees. To do so, Apple Inc.’s HRM practitioners have adopted salary benchmarking audits to periodically evaluate the market rate for employees, starting from entry-level to the highest-ranking positions within the company (My Assignment Help, 2017). This helps the company to analyze the demand and supply of the employees and make strategic decisions regarding the appropriate way of adjusting remuneration and compensation of their employees.
Furthermore, in light of the present worldwide pandemic, Apple Inc. HR professionals have introduced a variety of innovative techniques to keep their staff engaged and motivated in their job. For example, HR practitioners have implemented a remote working system and provided employees with the required equipment and resources to guarantee that their task is completed properly(My Assignment Help, 2017). According to My assignment Help (2017), they have also improved workers’ work experiences with digital technologies and offered additional bonuses and incentives to guarantee that employees receive their fair share of rewards despite the worldwide pandemic’s limits
At the strategic level, Apple Inc. employs techniques to ensure compliance with developing regulatory standards and proper data protection. HRM practitioners, for example, have built a tight monitoring structure to verify compliance with regulatory obligations and internal privacy policies (My Assignment Help, 2017). This involves establishing stringent standards for data security and access control, monitoring financial services sector operations, and training its personnel on cyber-security and data protection.
3.2.2 International Level
Apple Inc. has built distinct labor strategies across different nations to respond to the many external circumstances described in the STEEPLE analysis. At the operational level, Apple Inc. employs shift scheduling and incentive mechanisms on a global scale to assist in accommodating overseas locales (Chadwick and Cappelli, 1999). This allows the corporation to retain uniformity in its operations while also relieving the burden on its human resource management in the home office. Moreover, HRM practitioners do country-specific research to investigate many external aspects such as distinct languages, cultures, political instability, economic stability, and laws. Apple Inc., for example, conducts market research to understand the local trends, demands, and interests of its target market in various countries such as China (Bagga and Srivastava, 2014). This assists the organization in developing plans for improved penetration of the target market and increased revenues.
Moreover, Apple Inc. employs human resource management strategies to guarantee compliance with laws and regulations in various nations. HRM practitioners, for example, offer country-specific training on labor and employment legislation as well as workplace safety standards (Wright and McMahan, 1992). They also make certain that all personnel have the required permissions and visas to work in a foreign nation and set up a system to monitor any possible infractions. This enables the corporation to comply with local regulations, limit the risk of prospective litigation, and preserve a positive reputation with foreign governments.
In addition, Apple Inc. also aligns its strategic HRM practices with its business goals when entering a foreign market. For instance, HRM practitioners develop strategies to identify the right talent in foreign markets (Martell and Carroll, 1995). Meinert (2018) not that this includes screening potential employees, ensuring that recruits have the right skills, and assessing the right type of employees for specific positions. This helps the company to evaluate potential candidates and select the ones who are most suitable to meet the goals of the business internationally. Moreover, HRM practitioners also develop compensation strategies to reward and incentivize their foreign employees to create a sense of loyalty and help them remain motivated.
4.0 HRM Trends at Apple Incorporation
4.1 Current HRM Trends
According to EssayIvy (2022), Apple has implemented several significant human resource management (HRM) trends to support the increasingly global and growing nature of the company. Apple’s adoption of new technologies to improve HRM operations is one of the primary trends it has implemented. This involves implementing automated systems, such as Apple’s Jobs at Apple website, to track, manage, and publicize open positions, as well as utilizing e-learning platforms, such as Apple Learn, to give staff online training and development opportunities. Additionally, Apple has created a global network of personnel, allowing them to respond to client requests promptly regardless of location or time. In recent years, the corporation has also used Big Data analytics to better understand and respond to its workers’ needs, preferences, and expectations. These analytics-driven decisions are expressly designed for individual employees, allowing for a more personalized approach to human resource management. These HRM trends have enabled Apple to keep ahead of the competition and remain one of the world’s leading corporations.
4.2 Future HRM Trends
The digitalization of HR processes is a prominent trend that organizations must be prepared to face in the future; as Farndale et al. (2023) note, artificial intelligence (AI) and robotics technology have been used to automate many HR processes to increase operational efficiency. Not only does this streamline HR processes and reduce costs, but it can also improve accuracy and data analysis capabilities. Dixit (no date) further argues that organizations may even consider using blockchain technology to store data securely with the continuing digitalization trend. Including AI and robotic technologies will require organizations such as Apple to have a suitable skillset and training program in place so that their staff can be adequately equipped (Free Essays, 2022). The trend of an aging workforce is a reality that organizations may face in the future due to declining birth rates and people working for longer. Piwowar-Sulej et al. (2022) note that organizations must develop suitable approaches to retain older employees and address their needs. This might include implementing formalized flexible working policies or providing suitable training opportunities to ensure older workers remain updated with the latest technologies. Such initiatives by Apple Inc. could help ensure their staff remains competent yet motivated to work for the organization.
6.0 Conclusion
In conclusion, the essay has looked at Apple Inc. and its approaches to HRM. In particular, the essay considered how the organization and its HR strategies respond to different external and internal environmental factors, and how its leaders shape, develop, and respond to those factors. It was found that Apple Inc. aligns its HRM strategy with Porter’s generic corporate strategy, which is designed to achieve cost leadership, differentiation, and focus. Additionally, Apple Inc.’s HRM practitioners respond to diverse national and international factors at both operational and strategic levels. This includes responding to political circumstances such as the trade war between the United States and China, economic considerations such as altering salaries based on the exchange rate, and social factors such as responding to customer needs. Additionally, HRM practitioners have developed a variety of tactics to remain compliant with legal rules and competitive. Finally, the article explored current and future HRM trends, such as the implementation of AI and robotic technologies, the creation of appropriate techniques to maintain an aging workforce, and the use of Big Data analytics. Ultimately, Apple Inc.’s HRM initiatives are all geared toward fulfilling the company’s broad goals of sustaining its competitive edge and long-term viability.
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