After completing the text readings, chapters 12&13 in Strategic Management Conce

Question

After completing the text readings, chapters 12&13 in Strategic Management Concepts by Dyer et al. 2016, (search “corporate governance at Apple"). How does the organization appear to ensure that the organization’s goals are aligned with the those of the shareholders?  Are stakeholders also addressed? Do you think the Apple is doing a poor, fair or excellent job of balancing the interests of shareholders and stakeholders? Support your opinion with information from Apple's website or articles about their structure and governance.

Explanation / Answer

Apple ensures that its goals (at the organizational level) are aligned with the goals of its shareholders by focusing on making great products through innovation and focus on excellence. This focus on excellence helps the company create value in the long run for its shareholders. The company is constantly leveraging its ability to design and develop new state of the art products to grow the company and add more value for the shareholders. Shareholders look for long term growth in Apple and the management with a sharp focus on excellence, innovation and state of the art product development ensures that the goals of the organization are well and truly aligned with the goals of the shareholders.

Yes, stakeholders and their concerns and objectives are also addressed. Apple’s stakeholders include its employees, vendors, suppliers and customers. Employees, vendors and suppliers want that Apple’s business model is strong and robust and its competitive advantage is sustainable. This will enable the stakeholders like vendors, suppliers and employers to have a long term and mutually beneficial association with Apple. Employees would like job security and satisfaction, suppliers and vendors want long term contracts. Customers want to buy Apple products that are reliable, useful, relevant and are state of the art. Apple’s management, by focusing on making its business model sustainable, is trying to satisfy the needs of its stakeholders as well.

Apple is doing an excellent job of balancing the interests of shareholders and stakeholder. From the information available in Apple's website I can say that the company has a comprehensive corporate governance guideline. This guideline, together with Apple’s articles of incorporation, bylaws, and the charters of the committees of the Board, form the framework of governance. Directors of Apple’s Board have to strictly adhere to the company’s ‘business conduct policy’ and guidelines regarding conflicts of interest.

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