A Case Study on Apple Inc.


Overview of the research

Corporate strategy is considered as the hierarchically highest strategic plan of an organization, which explains the corporate goals and different ways to attain them within strategic management (Huveneers and Robbins, 2014). Corporate strategy takes a portfolio approach to strategic decision making through analyzing all the aspects of organizational business to evaluate how to create value for business growth. Corporate governance is determined as the mechanism, process and relations through which organizations are controlled and directed in right direction. Corporate governance mainly includes balancing the potentials of company's major stakeholders like management, customers, suppliers, shareholders, financiers, government and the community. Corporate strategy and governance provides an appropriate frame work to an organization to implement its all business operations in effective and efficient manner. It also has a huge influence on the performance and productivity of employees as a proper assistance and management helps the employees in moving forward towards right direction.

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Background of the Research

Corporate strategy and governance is refers as a essential tool of management which plays vast role in managing the performance and operations of the firm through providing proper assistance to their employees. Apple Inc. Is the chosen company for this particular project it is an American multinational technology company, headquartered is in Cupertino, California. The company majorly deals in selling consumer electronics, computer software and online services.  The company operates its business operations at wide scale and widely concern on developing their operations and functions in effective and efficient manner (Ibrahim, 2016). The research into consideration is based on the influence of Corporate Strategy and Governance on employees performance of Apple Inc. as a large and well reputed company it is essential for Apple Inc to conduct its business operations as per corporate strategy and governance policies, in order to attaining higher growth and profitability within the market place. The major reason for conducting the research is to resolving the issues related with corporate strategy and governance in respect to maximizing the operations and performance of employees. The specified area of study helps in developing the knowledge and skill base of learner in the area of corporate strategy and governance.

Research Aim

This considered to be the most essential element of the research as it helps the investigator in carry out the research activities in right direction (Muzwardi, 2015). The essential aim of the research is To analyze the influence of corporate strategy and governance on employees performance”. A case Study on Apple Inc.

Research Objectives

  • To ascertain the concept of Corporate strategy and Governance  and structure followed by Apple Inc.
  • To evaluate the Impact of corporate strategy and governance on the performance of employees within Apple Inc.
  • To identify the implication of corporate strategy governance failure.
  • To determine the ways to overcome governance failure and role of employees.

Research Questions

  • What is the concept of Corporate strategy and Governance  and structure followed by Apple Inc?
  • What are the Impact of corporate strategy and governance on the performance of employees within Apple Inc?
  • What are the major implication of corporate strategy governance failure?
  • What are the essential ways to overcome governance failure and role of employees?

Literature Review

Corporate strategy is refers as the scope and direction of a corporation and the way in which its different business activities and operations work together to attain organizational specific goals. Corporate governance is also an essential term which consist as a system of rules, practices and processes through which a business organization is concern on managing and controlling its business operations. As a large business organization Apple Inc is widely concern on implementing its all business operations as per the guidance of corporate governance, as it create value in completion of organizational objectives in effective and efficient manner. Corporate governance is determined as the set of processes, customs, policies, laws and institutions affecting the way a corporation is assisted, controlled and administered. In an organization it is required for the management department to implement effective corporate strategy and policies so that performance of employees can be developed in effective manner. Employees and workers are the key aspect of the firm as the whole activities and operations of an organization is based on the performance of the employees.

Concept of Corporate strategy and Governance and structure followed by Apple Inc

According to …................, Corporate governance is a broad concept and it is difficult to understand and describe. Corporate governance is generally define as a system which is assist company in controlling and directing all its activities in a better manner. This aid company in providing rights and responsibilities in a right manner. For example: board, managers, shareholders, stakeholders, executives etc., However, according to some of the definitions it can be said that corporative governance can be mainly classified into two elements i.e. value creation indicates setting of long term goals which are achievable and all these objectives are set by keeping shareholders into consideration. Another element is value protection which is generally based on accountability of managers along with this all the aspects and interests are protected so that company can sustain the interest of shareholders as well as stakeholders.

Therefore, if an administration set appropriate laws and regulations than company are bound to follow these rules which will gradually maximise the profitability of the firm. Thus, because of this organisation can add some value in their business and for its shareholders as well. There is a link between corporative governance and performance of a company because if company's growth is evaluated on the basis of targets they have achieved in a speculated time frame.

Henceforth, Corporate Governance provides a framework of rules, regulations which are generally exercised by companies for achieving goals and objectives. Thus, Apple Inc., are considering certain key principles of corporative governance and these are rights possessed by shareholders, firm should equally treat its shareholders so that nobody is entertained or provided benefits. Maintaining transparency between shareholders and stakeholders so that mutual understanding can be established. Furthermore, on the basis of this structure followed by Apple are given below:

In Apple Inc., Board of directors have eight members and they are well experienced and have solid leadership. Other than this, three members consist of CEOs and two Chairman. Benefits of the structure followed by company is that they have a tight control over all the resources which are essential for different aspects of business activities. Furthermore, every segments of company perform their activities with responsibility in an effective manner and it is because of systematic procedure of transferring objectives which are to be achieved. There was a time when Apple Inc. was facing challenges such as decline in sales and profitability hence, to overcome with this problem company made changes on a regular basis which in return increased the efficiency of the organisation and development practices.

Impact of corporate strategy and governance on the performance of employees within Apple Inc.

According to views and opinion of …, it has analysed that business corporations are created to address those objectives which are more important than creation of products or services. It defines the purpose of business for satisfying specific needs of society. In general, such organisations face a tug of war while protecting the interest of stakeholders (suppliers, customers , employees etc.)  and shareholders (legal owners). Therefore, it is essential for them to work on corporate governance. It provides a detailed disclosure of information as well as an account of other business data also. For example: Financial situations, ownership and governance, performance, commitment to ethics and values of business, relationship with shareholders etc. Within Apple Inc. good corporate governance provides better access to raise capital which tends to increase economic growth as well. Governance rules in general, directly impacts on the performance of employees of any company. As if corporate rules are effective than it may ensure that business environment of such corporations are fair and transparent. It also reflects that organisations can be held accountable for actions also. Similarly, poor corporate governance in a firm leads to mismanagement, waste and corruption. Therefore, it is essential for managers of Apple Inc. while designing set of governance rules, it should deliver sustainable and effective performance of business. They should concern on implementing the value of transparency, fairness, accountability and responsibilities for both stakeholders and shareholders.

As per views of …, it has summarised that concept of corporate governance includes a system of practices, rules and processes by which a company is directed and controlled. Therefore, if such policies are made in ethical manner than it will helpful in getting support of employees for expansion of business. Conversely, a firm can also loss control over their workers if such rules are failed to create transparency and fairness within workplace. By applying the core principles of effective corporate governance in terms of accountability, responsibility, transparency and more, Apple Inc. can boost morale of employees in following manner:-

Fairness: It states that well organised compliance and governance programs, tends to create positive impact on morale of employees. As reputation of any company is based on attitudes of employees. If corporations like Apple Inc. place an extra burden on its governance and compliance requirement then it turns to get high quality and principled workers. It also helps in increasing productivity of workplace because encouraged and motivated staff members give support in enhancing efficiency of operational and production activities. In this regard, it becomes essential for Apple Inc. to make a proper investment in compliances. It helps managers to make secure agreements with partners and suppliers on more favourable terms as well as seize upon business opportunities as well.

Accountability: It refers to the responsibilities and obligations of corporation which gives an explanation for business actions and conducted activities. In this regard, Apple Inc. its managers are required to give an explanation about balanced assessment of position and prospects of company. They are also responsible to determine nature and extent of risks that business is willing to take. Furthermore, by giving information to employees and communicate with them at regular basis, aid this firm in getting cooperation of them for implementing new policies.

Responsibility: The Board of Directors (BOD) of Apple Inc. have authority to assign roles and responsibilities to workers. They are also responsible to monitor the management and affairs of company. Therefore, BOD should be made accountable to workers for the way in which they have to carry out their activities.

Transparency: It is the main key role of corporate governance which provides clear information to employees. It includes business activities, future plans and objectives as well as risks associated with business strategies. The transparency refers to willingness and openness to disclose performance related to finance of a company. Therefore, Apple Inc. must include workers in decision making processes and give them opportunity to share their views and opinion on the same.

Major implication of corporate strategy governance failure

As per perceptions of …, it has evaluated that corporate strategy governance is mostly incorporated by companies in order to improve business operations as it helps in providing s structure through which entire task and activities can be directed and managed. But it is a debatable concept because it has some limitations which can hamper company's performance. Some of the failure of corporate strategy governance are mentioned below:

Putting pressure on employees

Most of the companies can put pressure on managers and employees in order to achieve targets and convincing their shareholders as well as stakeholders. For example: Making changes in set policies and organisational structure, directly impacts on working procedure of employees. It puts pressure on them to accept modifications and work as per requirement of business. It leads to decrease morale of workers which turns to decrease their productivity and level of performance also.

Essential ways to overcome governance failure and role of employees

As given by …, corporate governance, a process through which business organisations can control or direct themselves with an ease. It has been analysed that governance mainly includes principles that carries distribution of rights and responsibilities among different participants in the corporation and some of these are: board of directors (BOD), managers, shareholders, creditors, auditors, regulators, and other stakeholders and includes the rules and procedures for making decisions in corporate affairs. In previous years, governance has helped business firms in raising themselves up where they can get high range opportunities as well but it did not helped out from preventing organisations with financial crisis and corporate collapses.   Trying to resolve problems with the help of corporate governance is not at being considered as an easy task. Therefore, it is not just some technical or implementation issues, but more about the issues of paradigms, governing approaches and the orientation of corporate governance systems, which are deeply deep-rooted in Anglo-American financial capitalism. In context of Apple, it is required for organisation to understand the whole process related to corporate governance. So that they may easily find out a number of ways related to overcome from governance failure.

Some of ways in present context are given below:

  • Increase Diversity : This is being considered as one of crucial way through which corporate governance failure can be reduced to minimal.Recruiting more and more women in Apple and bring them equal to the number of male employees. With the help of bringing more female staff at workplace can help Apple and other business organisations in improving performance and overcome governance failure.
  • Appoint Competent Board Members : Another way through which nominating committee of the organisation should deliver adequate time so that to identify board members who have the skills and industry knowledge to assist the board.
  • Ensure Timely Information : Timely information results in better decision-making. Senior management has to provide timely information to ensure proper board supervision and direction. Board members, however, should not be overwhelmed with information. This may lead firms to improve corporate governance in much effective and efficient ways at workplace.
  • Prioritize Risk Management :In present time, this is also being considered as a way that may easily help board to establish a much more effective system so that risks can be managed with an ease. “Risk” is not confined to compliance risks. It is a broader term which incorporates all of the risks to Apple.

According to …., employees plays a crucial role when it comes to prevent an organisation from facing number of problems like governance failure and some on. Few of their roles are mentioned beneath:

  • Employees with in an organisation needs to be serious about their work.
  • It is important for staff to have proper knowledge regarding products and services of the company. It is also necessary for them to avoid spreading fake information and they also should not take things lightly.
  • Apart from this, it is being considered as another role of staff to respect both company and to staff members as well with an ease.
  • Another role of employees of Apple to think out of the box and always keep their behaviour positive in nature and try to come up with innovative ideas and strategies to overcome tough times as soon as possible. On the other hand, it is also required for staff members to must identify the causes of crisis and devise relevant strategies and ways to avoid it and this may lead business firms to overcome governance failure.

Secondary and primary research undertaken

Research is process through which data is collected by investigator in respect to research topic. It is essential an individual ascertain knowledge and information for conducting activities in creative and systematic manner. Primary and secondary are tools through which investigator collect past and current data from marketplace and public. Documentation, exploitation, reporting and interpretation are various tasks which are executed by researcher. Original research, artistic research, research in humanities and scientific research are various categories in which an investigation can be used. In organisation, research is executed by senior for gaining information about firm's market image. They require to have knowledge about quality of items and services for making conclusion about offerings. Henceforth, these are two bases in which researches are executed are described beneath:

Exploratory: It is kind of investigation which comprises open ended questions that result into lengthy interviews. Researcher didn't have predetermined set of questions which they directly ask from client to gain feedback and opinions. When they interview people than communication process enlarges which result into timely activity of investigation. Researcher keep on asking questions to gain insight and depth knowledge in respect to topic or problem of investigation. Thus, this is effective method by which investigator collects adequate information for making appropriate results and outcomes.

Specific: This is another form of research from which investigator collect information in respect to concerned topic. For this, individual formulate questionnaire and make plan in respect to execute activities systematically. This helps researcher to save from lengthy research work and collect adequate knowledge for making adequate conclusions. They are also able to solve problems for benefit in respect to research.

These are two types of data collection which are stated below:

Primary Research: This is one of tool which is used by investigator to collect first hand information that help them to make appropriate interpretations and conclusions. Interview, survey, observation, questionnaire are various primary techniques. These tools are used by investigator to collect data themselves for making true and fair results. Public that is customers, stakeholders are respondents through which information which is authentic in respect to research topic or problem is made. Investigator contact to respondent which help them to have true information. Thus, researcher make outcomes which are beneficial in according to issues or research topic. These are different types of primary tools which are describes below:


Research Methods

Qualitative and quantitative are the two major methods of complete a research. Under quantitative research researcher collect data in terms of number and figures and different statistical data is use to examine this type of data. on the other hand, in qualitative research, investigator focus more on quality of information. qualitative research method is taken in present report and one of the main reason behind this is that it help in carry out an in depth analysis of research topic which help in draw valid and reliable conclusion (Nasir and Subari, 2017). This provide an opportunity to researcher to analysis every aspect of research which enhance knowledge and information of researcher.

Research approach: It is an essential component of research methodology which influence on selection of investigation tools. Inductive and deductive are two kinds of tactic in which first define that researcher ascertain solution in respect to problems or questions framed in beginning.


Resources are determined as the key element of the research, as it is essential for the investigator to make proper arrangement of resources in order to conducting all the operations and activities in effective manner. There are various resources that are required to be considered by the researcher at the time of conducting an investigation work, some are associated as below:

Finance: It is the primary need of a researcher, as it is necessary for the investigator to maintain appropriate flow of funds and capital so that each and every activity of the research are implemented in effective manner.

Data Access and Equipment: This is also an essential area of research as it is also important for the investigator to gather reliable and fact-full data in order to completion of the work within the prescribed time duration. In an investigation data has been gathered through primary as well as secondary source of data collection as these are effective in providing relevant information in order to completion of the work in effective manner.

Time: An another major obligation of the researcher is that, it is also essential for the recherche to create an appropriate time scale in which all the activities are implemented as per their priority. A proper time management plan helps in completion of the work in a systematic manner.

Critical review of the results of the research

Corporate Strategy Governance constitutes strategic policies that are majorly formulated by board of directors so that company can gain effective results and outcomes which will further assist them in attaining better position at market area (Kathy Rao,  Tilt and Lester, 2012). According to recent times, corporate strategy and governance is in a buzz and most of the companies are having separate departments for developing strategic plan as it will assist them in running their business in an effective manner. Moreover, corporate strategy and governance helps organisation in maintaining a proper balance between different activities. This research was done in order to know effectiveness of this on the business of BMW. Thus, critical review is mentioned below for understanding the concept in a better manner.

Crisis action plan is one of the essential part for an organisation because unplanned and sudden activity can hamper entire process of business operations. Thus, it is important that company make effective plan on a regular basis so that problems and issues can be eradicated. With the help of this research it can be critically evaluated that crisis management plan always plays a positive role for an organisation as it aid company from dealing with issues which can put negative impact (Khan,  Muttakin and Siddiqui, 2013). For instance: During the period of World War II BMW, faces disaster as most of their buildings were destroyed thus, if company would have proper crisis management plan in order to cope with the situation than they should have not faced problems like bankruptcy in the year around 1959.

Basically, the crisis management plan was first generated in the year around 1980s after the environmental and industrial disaster. Therefore, BMW cannot be blamed fully for not preparing an action plan for disaster happened in the period of 1945 – 1959. According to the recent times, now company can make effective crisis management plan that can protect them from losses or from natural disasters as well. But there are some points which are to be considered first is importance of crisis management plan and secondly, look for the areas in which there is a need of having a proper action plan. As BMW is a multinational company so for them crisis can come from different levels like it can be financial, office related crisis or natural disaster. For example: If company doesn't make any action plan for IT system failure than firm can face problems as most of the systems are interconnected with each other. On the other hand it can have an impact on the performance of employees and their ability. In relation to the positive aspect of crisis management plan it enhances the safety of workers and if firm is able to manage effective crisis plan than it can assist them in maintaining better relations with customers (Kleinbaum and Stuart, 2014).

Industries' life cycle never decline but the product does so, it is crucial that companies makes changes and modification on a regular basis for their goods in order to sustaining in the market for a longer period of time. BMW has a glorious history of around 102 years as company was established in the year  1916 and since than they have seen many ups and downs in their business from the attack of World War I to bankruptcy and than to come up as a effective brand in the sector of automotive. Company faced banned as government cease aircraft engines for security purpose under Versailles Armistice Treaty. Thus, during this period BMW faced many complications as their business was not growing and political pressure was also there.

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Later from time changed for BMW after 1959, as new CEO was more enthusiastic and he  made some modification in the strategies which tried to manufacture new models or series on a regular basis and this helped them in sustaining a better position at market area. Although company has started manufacturing cars that are hybrid but because of its CO2 emission it has out an negative impact on the company. Therefore, BMW is now thinking of making cars that are eco-friendly and do less damage to the environment. Company's first model of hybrid car was BMW i3 and its structure was made up of carbon fibre (Klettner, Clarke and Boersma,  2014).

Corporate Governance includes a structure on the basis of which all the activities are performed. This includes superiors, stakeholders, shareholders etc., they tend to give effective information about the task so that it can be executed in a better manner. Positive impact of the structure of corporate governance followed in BMW is that they have a transparent working environment and all eminent members are equally included in the discussions and decision making. As a result it is assisting firm in executing the plan in a better manner without having any problem. One thing which is working as a negative impact on business is that they have a big hierarchical system because of which decision making is quite long and lower level of the management had to weight for doing any kind of work. In BMW, Harald Kruger is the chairman of the Board of Directors who takes most of the decisions.

In addition to this, they have supervisory board as well that works with the motive of managing  entire work of the organisation. But they have look for different task which can put pressure on the department. In-spite of this their main motive is to present ideas and thought in front of Board of Directors so that better plan can be made and effective outcomes can be gained (Kock, Santaló and Diestre, 2012). Apart from this, there are different members as well who are assisting firm in performing the task effectively and these are company secretary, shareholders and stakeholders.

It is not possible that corporate  governance if implemented in a company it will provide better results, there can be a possibility or chances of failure. Main work of corporate governance is to direct and control the process of companies in order gain long term benefits. Some of the issues and problems which BMW can face is conflict of interest as in some conditions thoughts and ideas can clash which can give rise to conflict of interest and this generally happens when every worker interfere activities although they are not required. Issue related to conflict of interest can be reduced if company takes meetings on a regular basis. In relation with transparency, company doesn't have any kind of issues as they consider all departments in decision making so that each division can know about the activities which company is going to perform. Henceforth, every individual coordinate with one another and work for a common goal.

In every organisation, auditors plays a crucial role as they assist firm in maintaining all the accounts but this can fail if they doesn't perform the task in a better manner. In order to deal with this problem company can keep an eye on auditors or those who are managing accounting. As a result, it will assist them in analysing the loop-holes therefore, it will aid them in taking proper actions against the culprits (Larcker and Tayan,  2015).

Therefore, it corporate strategy governance both have positive as well as negative factors that can hamper business operations in a company. Thus, if appropriate steps are taken to have a smooth conduct of all the activities than corporate strategy governance can be one of the effective tool for conducting and designing whole operations.

Recommendation and action plan

As per this mentioned essay it has recommended to Apple Inc. that its Board of Director must understand the concept of corporate strategy governance. While developing any policy and design corporate rules, they must ensure impact of the same on performance of employees. By creating transparency, accountability, responsibility and fairness, corporations can boost employees morale. In other words, corporate governance is said to be strategy by which a firm can maintain a proper balance between sustainability and profitability of business.  Therefore, after initiating corporate strategy governance within business, Apple Inc. becomes able to stay competitive marketplace and increase performance of business. Through this process, it also gains opportunity to maintain reputation at marketplace by which sales performance can be increased. As this firm is known for its innovative and creative products therefore, good corporate governance aid managers to get support of employees in maintaining its reputation as well.

Along with this, in order to  plan company should incorporate rules and regulations that are beneficial for sustaining the loyalty of customers and employees as well. As they can make plans which are flexible and can be changed according to the market scenario. Apart from this, for lower down the Co2 emission BMW should use latest tools and technologies which are eco-friendly. Actually, company has taken a step forward as they are using carbon fibre instead of metals which is a great move. In most of the cases, companies don't maintain a proper documentation because of which they face difficulties in executing the plan in an effective manner but BMW, should establish a clear document which can define roles and responsibilities of shareholders and other subordinates. Other than this, company should implement an authority mix where basically, chairman signs all the payroll so that time can be reduced.

In order to move forward, company should provide proper training to its employees or they can offer professional training or certificates (Michelon  and Parbonetti, 2012). This will not only improve company's performance but it will enhance skills and knowledge of individual and employees.  Other than this, if company is facing any kind of transparency issues than they should conduct meetings on a regular basis in order to eradicate problems. As BMW is a multinational organisation and there is a possibility that people are working from different backgrounds therefore, in order to reduce conflict of interest they should create an environment where every employee is treated equally without any discrimination.

Although BMW has a good crisis management plan but they should make modifications on the basis of needs and wants of employees and customers so that company can give best outcomes and results.

In this regard, to formulate strategies as per governmental rule, it is necessary for all organisations including BMW to conduct proper research first. For this process, researchers of this company has made an actions which covers many activities. Some major activities including in this plan are defined as Introduction, Aims and Objectives, Literature review, Critical Evaluation and Recommendation. Here, introduction covers the purpose behind making whole research for which project-makers required at least two days. In this regard, managers will organise meeting to make a discussion with each team-members about requirements for conducting entire investigation to complete first activity. After than, with suggestions and point of views of each team-mates, they make objectives and aims upon which process of whole investigation is based (Sethi, 2012). Aims provide information about main purpose of research and objectives define what will be investigated for accomplishment of the same. For this assistance, near about two to three days are required. As per present context, main of BMW's research team is to determine the need of corporate strategy governance in an governance. Therefore, for this purpose, objectives formulated by team-mates are -

  • To identify the importance of crisis action plan for natural disasters
  • To evaluate industry life cycle of BMW on corporate strategy.
  • To analyse corporate governance structure and its effectiveness.
  • To determine the corporate governance failure and suggestion which
  • contributes in eliminating these barriers.

Furthermore, third activity to fulfil the objectives is considered as literature review, where investigators used some sources like primary and secondary. These sources aid them to understand entire concept on the basis of expert opinion and views on same point in depth manner. This would help in gathering proper and relevant information on which further analysis can be conducted. In addition to this, data collected by using methodologies of research will help in drawing valid conclusion also. Therefore, to conduct this activity, project-makers of BMW require more than 4 to 5 days. After this process, critical evaluation and to give recommendation on the same, are final activities of action plan which will take 2 and 3 days simultaneously.


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