Apple Inc and Virgin Atlantic - Business, Purpose, and Ownership - Term Paper Example

Apple Inc. and Virgin Atlantic Business, Purpose, and Ownership, Apple Company was founded in the year 1976 by SteveJobs to sell personal computer kit. The company was then incorporated in the year 1977. Over the years, the company has grown into a multinational firm that manufactures products such as laptops, mobile phones, iPods, iPads, tablets, and even TVs. The company has advanced itself in bringing new and more sophisticated technology to the market. The key objective of Apple Company has always been to be more innovative by bringing unique and advanced technology into the market. The company works on the statute that it should always manufacture better products than its previous products (Hasan 2013). The company’s mission statement is to bring the best computing knowledge and experience to students, professionals, and consumers around the world, through being innovative in the way it builds its hardware, software, and internet ads. Apple Inc. is subjected to corporate taxes. Apple Inc. shareholders and officers are not liable for any corporate debts. Therefore, in case the business is facing economic times and want to dissolve and leave a specific market due to debts, the shareholders personal assets or finances cannot be used to pay the debts of the company (Lancaster & Reynolds 2002). Virgin Atlantic was formed in 1984 by Richard Branson. The airline is based at London’s Gatwick and Heathrow airports. Furthermore, it is also based in Manchester Airport. It is a limited business which has developed over the years to become the second largest carrier serving major cities across the world. Unlike in Apple Inc., the salaries of the employees are only subjected to self-employment taxes (Balmforth 2009). Stakeholders Apple Inc. Employees of Apple Inc. have a major role in decision making of the company. In this company, employees have a major stake because they are liable for the success of the business. In addition, they are expected to ensure that all operations of the business are running smoothly. Due to the fact that they interact with the customers daily, employees are used by the business as an important source of information (Lüsted 2012). They are also expected to be innovative in order to maintain the competitiveness of the business in the market. The community has a major effect on the operations of the business. Unlike Virgin Atlantic which is only focused on the profits, Apple Inc. has a mandate of ensuring that it incorporates the interests of the communities associated with the business in its crucial decisions. In addition, such a company has an obligation to participate in corporate social responsibility in order to improve its reputation in the market (Sadeghi 2012). Shareholders are an integral part of Apple Inc. Shareholders own the company. As a result, when making critical decisions, their views and interests must be taken into consideration. This is the reason why Apple In must communicate frequently with the shareholders in order to inform them of the progress of the company (Meek & Chartered Institute of Marketing 2003). This is because any lapses in the management which might lead to immense losses would directly affect their overall returns. Manager of Apple Inc. has a major influence on the purpose of the business. The manager is mandated with coming up with innovative decisions in order to spearhead growth and development in the business (Schneiders 2011). For instance, if the business is aiming at expanding into other markets, the manager has a mandate of setting up effective policies and strategies in order to ensure that the plan is successful. Customers have a major role in the determining the purpose of the business. Currently, the market has become dynamic. Therefore, for apple Inc. to remain competitive, it must keep on evaluating the needs of the target market. This is achieved through conducting frequent market researches in order to identify various aspects that affect the consumption behavior of the target market. Furthermore, the business collects the views of the loyal customers on different aspects that they would like to be changed (Overton 2007). This is to ensure that products delivered to the market meet the tastes and preferences of the customers. Virgin Atlantic Board of Directors Unlike in Apple Inc where managers have the largest say in the running of the business, virgin Atlantic is run by a board of directors. These are people who hold the largest shares in the business. Therefore, they employ a manager to run the business on their behalf but they give the manager the policies to be implemented. In this case, the manager does not enjoy the freedom enjoyed by managers of a corporation. This is because he is answerable to the board rather than the shareholders. When the business is starting a mega project, it is the role of board of directors to determine the amount of funds to be used and the mechanism to be followed in order to ensure that there is accountability in how the money will be spend. However, this is not the case with Apple Inc. In this company, the managers oversee the operations of the business. He delegates the authority to the subordinates and ensures that money is utilized effectively (Datamonitor 2000). He also has a role of putting up mechanism to curb any form of corruption in the business. Employees Every business must take into consideration the interests of its subordinates who have a major stake in determining the purpose of the business. Just like in Apple Inc., employees are critical in ensuring that Virgin Atlantic remains competitive. This is through coming up with innovative ideas and ensuring that they identify areas that hinder the efficiency of the business. Therefore, the workforce acts as a change agent in Virgin Atlantic (Datamonitor 2000). Community Groups With the current levels of globalization resulting from liberalization of markets, efficient flow of information, and integration of economies, the level of competition in the market has increased tremendously. This results from the entry of multinational companies in the local market. Therefore, in order for Virgin Atlantic to remain competitive in the market, it must win the hearts of the community which forms the larger customer base (Datamonitor 2000). This is done through participating in corporate social responsibility with the aim of improving the lives of the local population. Government and Regulators Airline industry is very critical to the success of any economy. As a result, the business purpose is driven by government policies and interventions. Virgin Atlantic ensures that it consults the government when making critical decisions which might affect the economy of the country (Datamonitor 2000). Organization Apple Inc. Apple Inc. has a divisional structure. The company has been able to open different subsidiaries in different parts of the world. As a result, this structure enables headquarter of the business to manage the subsidiaries effectively and as a single unit. This has been significant in ensuring that the specific aspects of particular areas, e.g. culture are taken into consideration (Mohr, Sengupta & Slater 2010). Virgin Atlantic Virgin Atlantic has a functional structure. The owner, Richard Branson and the CEO of the company, Craig Kreeger occupy the top position of the business. The second level of governance in the business is occupied by CEO of different departments in the company. They are mandated with supervision of activities in their respective sectors such as marketing, revenue management and strategy, Human resources and external affairs, communications, etc (Chen 2012). Effect of Style of Organization Apple Inc. Each subsidiary has different challenges and strengths. As a result, they cannot be run under one manager. Therefore, the use of division structure has enabled Apple Inc. to penetrate and position itself in different markets across the world. For instance, the business has been able to enter the Chinese market. This is a market with a market segment that likes to be associated with companies that are located locally and appreciates the local culture. As a result, the company has been able to employ the local employees who have the necessary skills to understand the interests of the local people (Nykiel 2003). Therefore, local customers feel appreciated and have changed their perception towards Apple Inc. which is an American company. Virgin Atlantic Unlike Apple Inc. which is faced with different business environment, the challenges facing airline industry are similar irrespective of the country. Airline industry is mainly affected by global issues which are not unique in one particular country. As a result, functional structure would not be effective. Instead, divisional structure has been significant in ensuring that all subsidiaries are united towards the company’s goals and objectives. In addition, communication is very important in this industry. However, this cannot be achieved when the branches are operating as a separate entity. Therefore, the structure has enabled the owner and the CEO to maintain effective communication with all subsidiaries (Chan 2013). In addition, it has made it easy for the owner to maintain the control of the business despite having expanded it to different parts of the world. Influence of Economic Environments Apple Inc. Micro-economic Environment Market size has been having a major impact on the decision of the company. Apple Inc. has been able to segment the US market. This provides it with stability when venturing in other external market. The money collected from US market is used to support new subsidiaries before they can start to record profits (Groucutt 2005). Therefore, the US market has been critical in the company’s decisions. Suppliers and competitors are critical in decision made by the company. When the business is planning on its activities it should asses the suppliers in order to ensure that they don’t affect the profitability of the business. In addition, the business must consider the company tactics in order not to undertake the activities that will weaken the business competitive advantage (Schneiders 2011). Macro-economic environment Economic Depression has a major effect on the activities of the business. With the interconnectivity of the economies, US economy has become more prone to economic depression. As a result, when the company is planning on the future activities, this aspect must be put into consideration (Schneiders 2011). Consumer confidence levels affect the activities of the business. Apple Inc. ensures that it retains its loyal customers. This is through developing a close customer relationship. High confidence level in the market assures the business of better returns in the future. Therefore, the business is able to strategize effectively (Farabi 2012). Virgin Atlantic Micro-economic Environment Demand and Supply forces have a major impact on the activities of the business. Airline industry has some high and low seasons. During these times, the airline has to adjust in order to maximize the profits. This has a major impact on various activities in the organization. Competitors are an integral part of any business. When Virgin Atlantic is making critical decisions that will affect its operations, it must consider the operations of the competitors and effective ways of tackling their moves. This has a major impact on the activities of the organization (Farabi 2012). Macro-environment Taxation has a major impact on the operation of the business. Virgin Atlantic operates in different parts of the world. Some governments put very high taxes for international businesses. This aspect affects the activities of the business immensely. Economic recession has a major impact on the returns of the business. Therefore, when the board of directors is making critical decisions, they must take it into consideration. Sometimes, they are forced to alter the activities of the business in order to adjust to the changes. Impact of Political, Legal, and Social Factors Political stability in both UK and United States has given both businesses a platform to grow and develop. As a result, they have been able to invest heavily without the fear of losses resulting from political instability. In both Countries, there is a change in the consumption behavior of the people. Initially, cultural aspects were affecting the consumption behavior of the target market. However, with advancement of technology, people have changed their behavior. For instance, the entry of social media has eroded the previous perceptions that people had concerning different companies. This has played a significant role in improving the performance of the two companies. Both UK and US governments have been instrumental in protecting the interests of the local companies. This is through ensuring that the taxation system does not affect the local businesses. This has created more confidence among the shareholders who have increased their investment because both companies have a brighter future. References Balmforth, J. 2009. Virgin Atlantic. Hersham: Midland. Chan, K. M. 2013. Virgin Australia: Situation analysis of the Game Change strategic plan. Munich: GRIN Verlag GmbH. Chen, J. S. 2012. Advances in hospitality and leisure: Vol. 8. Bingley: Emerald. Datamonitor 2000. Virgin Atlantic Airways, Ltd. New York, NY: Datamonitor. Farabi, Y. 2012. Analysis of Marketing Environment of Virgin Australia. Munich: GRIN Verlag GmbH. Groucutt, J. 2005. Foundations of marketing. New York: Palgrave Macmillan. Hasan, M. R. 2013. Apple Inc. - An Analysis: PESTLE analysis, Porters 5 Forces analysis, SWOT analysis, Comprehensive analysis of financial ratios, and Comprehensive analysis of share performance of Apple Inc. Munich: GRIN Verlag GmbH. Lancaster, G., & Reynolds, P. 2002. Marketing made simple. Oxford: Made Simple. Lüsted, M. A. 2012. Apple: The company and its visionary founder, Steve Jobs. Minneapolis, MN: ABDO Pub. Meek, H., Meek, R., & Chartered Institute of Marketing 2003. Strategic marketing management: Planning and control, 2003-2004. Oxford: Butterworth-Heinemann. Mohr, J. J., Sengupta, S., & Slater, S. F. 2010. Marketing of high-technology products and innovations. The Upper Saddle River, NJ: Prentice Hall. Nykiel, R. A. 2003. Marketing your business: A guide to developing a strategic marketing plan. New York: Best Business Books. Overton, R. 2007. Business Strategy Made Simple. Murwillumbah: Martin Books. Sadeghi, S. 2012. Defensive Strategy - Apples Overlooked Key to Success. Berlin: epubli GmbH. Schneiders, S. 2011. Apples secret of success: Traditional marketing vs. cult marketing. Hamburg: Diplomica Verlag. Read More