Apple is at a crossroads, with its organisational structure facing challenges due to the company’s size and the nature of its products. The functional organisation, a structure Apple has successfully employed, is being put to the test as the company expands.
This structure, where employees are grouped by their function, has allowed Apple to maintain a focus on creating superior products. It has also facilitated the integration of hardware and software, a hallmark of Apple’s success. However, this structure is increasingly difficult to maintain as the company grows and diversifies its product range.
The challenge lies in Apple’s move towards services, which require a different approach. Services need to operate across various devices and platforms, a stark contrast to Apple’s traditionally insular, product-focused approach. This shift is causing tension within the company and may necessitate a change in organisational structure.
A potential solution could be to adopt a divisional structure, where employees are grouped based on product or project. This would allow each division to operate independently, potentially improving the efficiency and effectiveness of Apple’s services.
Nevertheless, this change would not be without risks. It could dilute Apple’s product-focused culture and hinder the integration of hardware and software. Hence, the company’s leadership is faced with a difficult decision: to maintain the current structure and risk inefficiency, or to change and potentially compromise the very elements that have made Apple successful.
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