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  • Essay / Compare and contrast Apple's organizational structure...

    2. Comparison and Contrast of Apple and Samsung Electronics on Innovation Implementation 2.1 Organizational Structure If a company wants to grow and be profitable, it needs an organizational structure that ensures there are sufficient human resources with specific responsibilities within the company to achieve its objectives. A good organizational structure could help a company increase productivity, improve communication between employees and employers, and inspire innovation; in other words, creating a work environment where people can work effectively. (Faith Technologies, 2011) However, each company adopts its own organizational structure depending on its objectives. In our case, Apple Inc. and Samsung Electronics have different organizational compositions. On the one hand, Apple's structure is very simple. There is the CEO, four vice-presidents (the fourth is Paul Devene, who was recently hired to be responsible for special projects), 8 senior vice-presidents and the employees. There are no committees. The particularity of its structure is that decisions are made at the lowest level. Specifically, company administrators can make policies and oversee all activities, but local employees are responsible for day-to-day decisions. However, only the CEO is able to approve or disapprove any final decision and only the financial director is responsible for profit and loss (P&L), not each manager separately, because according to Steve Jobs, a company should have this type of command . and a control structure where opinions and ideas are shared at the top. (Research - Methodology, 2013) Additionally, this structure gives Apple the ability to focus on a few things at a time, so well and for so long, which is...... middle of paper... ...er, its leader, Tim Cook, is now deeply engaged in R&D, while employees are divided into small, focused groups, which motivates them more. Finally, Apple has always focused on a specific target group, on a niche, which helps avoid conflicts between different objectives. (Kahney, 2010) On the contrary, Samsung Electronics' R&D strategy is completely different. First of all, Samsung Electronics strives to find new ideas and develop them in existing markets. As a result, the company invests approximately $10.5 billion, or 5.7% of its revenue (2012), and has more than 60,000 employees across 42 global research centers. In addition, the company conducts consumer preference surveys and purchases similar reports, while integrating employees in different countries to observe and study people's trends and try to come up with new ideas on how to satisfy their needs. . (Furchgott, 2013)