In the article, ‘Trying to See Apple from a Different Angle’, Jeff Somer on February 1, 2014, has explained about the Apple Incorporation, which has started its business in 1970, and then worked hard and retained its identity. Now Apple Incorporation is the biggest company of the world and is enjoying favorable investments from the investors. The author further tells that, in the year 2010, the company has generated 52% revenue, which has risen to 66% in 2011 and then fell to 45% in the year 2012. Recently in 2014, the company has introduced iPhone, which has gained remarkable fame and earned significant revenue. But, now the company is posing problems and puzzles for the investors.
The basic reason of such problems is that the size of Apple Incorporation is big, which is creating many hurdles for successful and smooth provision of the product and services to the customer. The company is not able to generate overall satisfactory growth of a new product that it expect to introduce in the market. It is considered as a consumer company that generates cash but because of its bigger size, proper management is not possible which is resisting positive change in the company. The company has also expanded the iPhone line but has not done satisfactory job. By analyzing all these facts, the investors are reluctant to make an investment in Apple Incorporation, as the company is unable to generate the expected return.
Economically, this is also a disturbing situation for the economy. The GDP of the economy is affected with the slow growth and lower output of the country. The investors are also not taking keen interest in the company, which is further harmful to the economy and GDP will decline. This will also pave the way to unemployment because considering the weak progress and growth of company, most of the workers will be laid off and the company will not offer further jobs. This will create unemployment in the economy. The bigger companies are the major source of providing employment to the individuals but at the time of weak growth this employment is converted into unemployment (Casico, Young & Morris, 1997).
If the company will not take its low growth into account then in future, it will have to face serious consequences. The good will of the company will be affected. The investors lose their confidence in the company, and they opt for investing in other companies rather than investing in a company that is giving poor performance. So, it is necessary for a company to keep check, and balances on the performance of the company and should try to remove the factors that are leading to weak growth.
Furthermore, the consumer’s confidence will also be shattered because of firing of employees and reputational loss. They will not prefer to buy the products of the company and will go for the substitutes that are offered by other companies. The company is also facing the problem of proper management of the size. If this problem continues and the size remained unmanaged then the overall performance of the company will be affected. It will become difficult for the company to provide the desired and quality product to the customers. The weak performance of the company results in loss of existing and potential customers (Hauser, Simester & Wernerfelt, 1994). So, for the efficient performance and provision of quality goods and services, it is important to manage the size of organization properly.
Casico, Wayne F., Young, Clifford E., & Morris, James R. (1997). Financial Consequences of Employemnt-Change Decisions in Major U.S. Corporations, Academy of Management Journal, 40(5), 1175-1189
Hauser, John R., Simester, Duncan I., Wernerfelt, Birger. (1994). Customer Satisfaction Incentives. Marketing Science, 13(4), 327-350