Comparison of stakeholders interest and influence. Apple vs. Mercedes Benz
Table of Contents
Introduction
Comparison of stakeholders interest and influence
Aims of Apple Part 1
Aims of Mercedes Benz Part 2
Strategic planning and missions and values
Strategic aims and objectives and organisations aims and objectives
Organisations analysed via. SMART
Direct influence towards the creation of the strategic plan
How stakeholders seek to influence aims & objectives of a business
Part 1 - What are the stakeholders trying to achieve from influencing the organisation?
Part 2 - What impact to they have in shaping the aims and objectives of the organisation. Refer to the aims and objectives you have listed in points 4-5.
Evaluate the influence different stakeholders exert in one organisation
Introduction
We have been asked to describe the different stakeholders who influence the purpose of two contrasting businesses and explain how their style of organisation helps them to fulfil their purposes.
Further we have been requested to explain the points of view of different stakeholders seeking to influence the aims and objectives of two chosen contrasting organisations and to additionally evaluate the influence of different stakeholders exert in one organisation.
Comparison of stakeholders interest and influence
Aims of Apple Part 1
Apples’ aim is to “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.” (1)
As Apple Inc. grows, they are still able, in this economic situation, to not only satisfy customers with their great product range and matching value for money, but also meet staff and stakeholder satisfaction. Such as fair pay, good hours and other benefits for different positions.
(1)
Aims of Mercedes Benz Part 2
Mercedes Benz aim is "To produce exciting premium automobiles that set standards in the areas of design, safety, comfort, perceived value, reliability and environmental compatibility. Commercial vehicles that are the best in their respective competitive environment; and outstanding service solutions related to these products”. (1)
This aim will enable them to achieve greater inventions for their future car models. This ensures they remain competitive with BMW, Range Rover, ect.
It is important for Mercedes to give their functional areas goals to reach in a certain period of time in order to keep generating profit and keep up to date with the latest car-related technology.
(1) http://gb2009.daimler.com/en/management-report/general-conditions/strategy.html
Strategic planning and missions and values
Strategic planning of an organisation is the process through which major plans are created. These plans involve vital decision-making and planning. They create these plans to help the organisation to meet aims and objectives.
Apple’s Mission Statement “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.” (1)
(1) http://investor.apple.com/faq.cfm?FaqSetID=6
Apple would need to plan strategically in order to know their environment better so that they can create their eco-friendly and disposable product range.
Mercedes Benz Mission Statement “We invented the automobile – now we are passionately shaping its future. As a pioneer of automotive engineering, we feel inspired and obliged to continue this proud tradition with ground-breaking technologies and high-quality products.” (2)
Mercedes Benz would need strategic planning to be further advanced than their competitors and therefore more profitable. This is because in their aims (Referring to Section 3) they hope to create the finest ...
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(1) http://investor.apple.com/faq.cfm?FaqSetID=6
Apple would need to plan strategically in order to know their environment better so that they can create their eco-friendly and disposable product range.
Mercedes Benz Mission Statement “We invented the automobile – now we are passionately shaping its future. As a pioneer of automotive engineering, we feel inspired and obliged to continue this proud tradition with ground-breaking technologies and high-quality products.” (2)
Mercedes Benz would need strategic planning to be further advanced than their competitors and therefore more profitable. This is because in their aims (Referring to Section 3) they hope to create the finest automotive experience.
Strategic aims and objectives and organisations aims and objectives
Strategic planning leads to both companies having tactical aims and objectives.
By planning, Apple identifies their weakness and strengths as well as competition. This makes them realise what assets they have. With this knowledge they are able to set their aims such as protecting the environment and being the most dominant high-tech brand in the world.
Strategic planning also brings us to inventing products that will be needed in the coming future and that will appeal to the customers taste around the world. This will lead to Apple Inc. becoming one of the world's most successful company.
Strategic planning leads to Mercedes Benz aims and objectives as it allows them to understand what the main purpose of the company is and what they would like to achieve in the long term. This then allows for a set of aims and objectives to be presented. Through these objectives they can achieve greater inventions for their future cars, as they need to keep up with close competition like BMW.
Organisations analysed via. SMART
These aims and objectives could be communicated throughout the business by having regular meetings with the managers and co-workers or through annual reports. However in a larger business they might not be able to have regular meeting as there will be a lot people and different departments, so therefore they will be able to put the messages on the business website or on notice boards for everyone to see.
The goals and targets of Apple Inc. are discussed first between the CEO and management in the lower structure of the organisation. The main goals are discussed via videoconferences and formal annual reports. Other objectives, the more detailed and short term ones, are communicated via formal team meetings in the different departments of companies.
The goals and targets of Mercedes Benz are discussed first between the managing directors and their headboards departments. These can then be discussed via team management meetings, which occur weekly, and also through formal reports shared between the headboard department and team managers.
Mercedes Benz SMART analysis
The goals and targets of Mercedes Benz are discussed first between the managing directors and their headboards departments. These can then be discussed via team management meetings, which occur weekly, and also through formal reports shared between the headboard department and team managers.
Specific: The goals of Mercedes are specific and the company is aware of what they need to reach in the coming time. This helps clarify what needs to be achieved specifically. Through this, the employees are clear on their aims and fully understand what needs to be achieved and the company can measure specific goals in a better manner than they would with vague or unrealistic aims.
Measurable: Mercedes Benz sets measurable goals through their strategic planning in order to allow goals to be measured upon. This then allows for further analysis so that the business can identify where they are progressing and where they are lacking. By identifying this strengths and weaknesses through measurable goals, the company can react efficiently and set stronger strategic plans.
Achievable: The use of achievable goals in the Mercedes Benz company allows for objectives to be measured as they are more likely to be realistic when they are measurable.
Realistic: Mercedes Benz set realistic goals to see things truthfully and compare and analyse the facts and figures against today’s economy. They must set their functional areas realistic targets to manage day-to-day sales. This means everyone has a better understanding of the goals of the company and can therefore work towards them in a more ‘achievable’ and ‘can-do’ attitude.
Time related: With the fast-paced changing environment of technology, it is important for Mercedes Benz to set time-related goals to keep up with reacting or changing trends and customers behaviour; meaning that everything has a certain time so the company must learn its strengths and weakness and know when it is the appropriate time to use them.
Apple Inc. SMART analysis
The goals and targets of Apple Inc. are discussed first between the CEO and management in the lower structure of the organisation. The main goals are discussed via videoconferences and formal annual reports. Other objectives, the more detailed and short term ones, are communicated via formal team meetings in the different departments of companies.
Apple Inc. uses the SMART objectives board in the following ways:
Specific: Apple uses the SMART model to set specific goals in order to use figures and percentages towards their goals e.g. ‘Increase handheld devices profit for the year 2013 by 7%’. This means Apple can be more realistic and driven towards achieving their goals while also clarifying to employees so they better understand how much is expected from them for specific goals to be reached.
Measurable: By setting measurable goals Apple allows for aims and even short-term objectives to be met, so that they don’t fall behind schedule. Measurable goals should also mean achievable which can allow them to realistically achieve specific goals within a time frame, as time is a vital factor in the 21-st century where we see technology advance daily.
Achievable: Apple sets achievable goals to understand realistically in which direction the company is heading. This will eventually allow them to measure their performance over the coming years and even for shorter period of times e.g. by setting short-term goals.
Realistic: Apple ensures the goals they set are realistic in order to achieve them, as unrealistic goals could have a negative impact on the company and they could lose sight of their main mission.
Time-related: Time related goals are extremely important for Apple Inc. as they have to keep up with the constant change in technology. This means they have to continuously be up to date and aware of the latest trends, customer behaviour and new technology. By setting time related goals Apple can launch the right product at the right time.
Direct influence towards the creation of the strategic plan
The table below explains how the stakeholders, business environment and business type/ownership influence the creation of the strategic plan at Mercedes Benz and Apple Inc.
How stakeholders seek to influence aims & objectives of a business
Stakeholders seek to influence aims and objectives of a business because they have direct interest in the business.
They worry about changes for example staff is concerned if they will be able to cope with the job, and not to have any complications, and if so, how to deal with any difficulties.
Customers influence the aims and objectives of a business by comparing services with other companies, or finding better value for their money.
According to Apple analysis blog (1), Apple Inc. has stated that their ‘suppliers must understand this dynamic business environment and be agile and flexible in responding to changing business conditions’. This is why the suppliers (stakeholder) play a big role in influencing what aims and objectives can and can’t be set.
(1)
Part 1 - What are the stakeholders trying to achieve from influencing the organisation?
Stakeholders could have many agendas to influence a business. All which could benefit the stakeholder himself or the company.
Mercedes Benz
Customers – The customers could gain a major advantage by having the chance to pressurise Mercedes Benz by demanding better cars in the coming future. They could also demand more affordable prices for cars as we are in an economic crisis. To react to this, Mercedes could introduce offers and 0% commission rates when financing a car. Mercedes Benz could start up new offers, offers that the other competitors haven’t come up yet. This is one way in which the majority of customers or the situation of the economic crises would influence Mercedes Benz.
Employees – Employees influence Mercedes Benz highly as the company depends on their productivity. Employees could strike and demand better pay rates, or higher discount on cars and better pension rates. An advantage of this could be that the employees could achieve their target, e.g. getting better pay. But a disadvantage could also be that the directors of Mercedes would have to dismiss that staffs that is misbehaving and not working up to the company’s target. But if staff would deliver a strike wave, Mercedes Benz could face serious issues and complications, not only with their employees but also with the company itself.
Suppliers - Suppliers are able to influence Mercedes Benz in many different ways, and could benefit greatly. As any metal, or material supplier could raise the price of each quantity or set a minimum quantity per order. As by pressurising Mercedes Benz, their suppliers could change the whole price range of the car models. By increasing cost of the products, Mercedes could loose potential customer, as were e.g. BMW could offer a similar car, for a better price.
Owners – Depending how involved some owners and shareholders are, they could make a great impact within the company. They can do this by pressuring staff and discreetly threatening staff monthly e.g. mentioning that the company is dealing with financial issues and would have to cut back on wages and employees, or changing the rates or prices of the cars, as well there being a risk of losing customers to their competitors.
Apple Inc.
Customers – Customers know the biggest weakness of Apple, which would be time as technology constantly changes, Apple has to keep up with it and research and develop the latest gadget. Competitors are also dealing with the same issue. Customers may demand earlier releases of the latest products, which could pressurise Apple Inc. and their employees to keep up with customer needs. The advantages of pressurising Apple as a customer would be that a customer has nothing to loose; meaning they could complain and demand extra service. Unlike if an employee could complain and cause problems within the company, there could be a possibility of them getting dismissed.
Employees – Employees could influence Apple Inc. as the company depends on their researchers, engineers, designers and developers. Employees could strike and demand better pay rates, or higher discount on cars and better pension rates. Further, they may want to develop themselves and get higher positions, so Apple has to set procedures about how to deal with this i.e. Appraisal reviews. As the company grows, more department must be opened and more staff will be required e.g. researchers, managers, directors.
Suppliers – Apple Inc. has over 80 different suppliers. These suppliers represent 97 percent of Apple’s procurement expenditures for materials, manufacturing, and assembly of Apple’s products worldwide. The suppliers have a major interest in Apple Inc. as it is one of the most successful electronic brand in the world. The more revenue Apple generates the more profit their suppliers do.
Apple posted,
“Apple is committed to the highest standards of social responsibility across our worldwide supply chain. We insist that all of our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes. Our actions — from thorough site audits to industry-leading training programs — demonstrate this commitment”. (1)
Owners – The current CEO of Apple is Tim Cook. He has the biggest interest in Apple, as he is the director. He is responsible for Apple progression; with help of the other directors, managers, developers, researchers and other employees. Tim Cook was set CEO because Steve Jobs passed away last autumn. Since Steve Jobs died, the progression of the company’s sales has risen in 25%.
Part 2 - What impact to they have in shaping the aims and objectives of the organisation. Refer to the aims and objectives you have listed in points 4-5.
Apple Inc.
Customers can influence the aims and objectives of Apple in different methods in order to meet their interest and expectations, as all businesses have to meet the necessitations and expectations of their stakeholders for the company or organisation to survive and compete. Customers demand products, which are good value for money.
For example if a product is faulty, a replacement or refund can be made, therefore the customer can see that the situation is handles professionally. If it wouldn’t be handled professionally then the customer would have to get the product privately fix whether at for example Samsung, they repair for free within the 2 years guaranty. A negative word of mouth, for the company could be beneficial for competitors.
Employees influence the aims and objectives of Apple in order for the company to work and fulfill its purpose. They carry out important roles assigned to their specific job. Researches have to keep providing with new inventions while the producers have to be able to fit that technologies, e.g. in a small device while the managers overseas the whole operation. They could change the aims in good ways and bad. Other advantages or motives to influence the company would be to get a pay rise, higher positions or other benefits.
Apple quotes; Particular benefits will occur while working for Apple, depending on your position, location, and years with the company. And there’s plenty of flexibility built in for you and your family.
For example, health and life insurance, long-term care insurance, tuition assistance, paid holidays, discounts on products and car insurance. (1)
(1) http://www.apple.com/jobs/us/benefits.html
Suppliers are important and influence the aims and objectives of Apple majorly. The purpose of this is because the suppliers provide the retailer with what they require i.e. materials/electrical goods and staff uniforms; however, in return they want regular orders and prompt payment to remain in business negotiations.
For example; Part of Apple’s products and chips are designed by, for instance Intel and Nvidia, both makers of chips for Apple’s Macintosh computers, along with other parts makers like Samsung Electronics, Toshiba and Panasonic. (1)
This provides Apple Inc. with what they need and sell off the products to their customers to make profit. Although, if supplier demands have not been met by the company, it is possible for them to change companies and supply elsewhere appropriate which can cause many concerns and delays for the former company (Apple).
Owners are the most important shareholders as they are the ones making the final decision, which will influence the aims and objectives of Apple Inc. in many different ways, such as positive or negative ways.
They take decisions on their behalf in order to increase profit and growth of business, as this is the main objective in any business that is private.
Moreover, they can make choices in order to display new advertisement campaigns to increase the brand awareness.
For example; ‘New Macbook Pro 15 inch, 15% Student discount, available 1st -30th of September’. (1)
This can encourage and draw appeal to customers, to buy the product which customers are making a saving of 15% of an expensive item. Apple could release another offer, were customers would buy another item, which would be a feature added to he product.
(1) Personal experience
Mercedes Benz
Customers are the clients that influence the goals and objectives of Mercedes Benz. As they require good service, which is essential in a retail business as they need to upsell and promote their product well. Mercedes Benz needs to prove through their customer service and product, why a customer should purchase their car. When having such a high price range and selling luxury cars as Mercedes does, it is not acceptable to let down or not satisfy the customer with in reason.
For example, there was a case in a restaurant; ‘the restaurant was full and the waiting list to be seated was a minimum of 20 minutes. A customer got angry and started to be rude at the waiter. The customer was saying there should have been more staff on the floor to provide a better and quicker service. The waiter lost control of the situation and started to shout back at the customer and the customer left’ (1)
(1) ‘Personal experience’
In this situation the restaurant lost a customer, and he/she went to dine next door to one of the competitors. And most probably complained to their friends about it. As the word of mouth is the strongest marketing and advertising point. The waiter gave poor customers service and most likely reflected a bad images to those whom the experience has been told.
Employees influence the aims and objectives of Mercedes Benz in order for the organisation to work and fulfill its aims and objectives as quoted in the previous paragraphs. They carry out important roles assigned to their specific job.
For example; sales assistant have the role and responsibilities of giving good customer service and upselling the cars in the best possibility they can.
However, mangers also play an essential role as they take important decisions on certain issues related to customer service, financing and other departments.
What’s more, all employees of Mercedes Benz have been working harder and longer hours in the past couple years, as the economic crises have begun. Now there is more competition than ever.
Suppliers influence the aims and objectives of Mercedes Benz as they mainly provide materials and car services for distribution. They supply materials for example, metal, cloth, tires, glass and many other materials to produce the car. Bosch services the Mercedes Benz cars and repairs them.
This is provided and financed through the sales made, sponsors and partnerships that Mercedes Benz (Daimler AG) has. For example, McLaren, American Express, Volkswagen, Aston Martin.
Owners influence the aims and objectives of Mercedes Benz as they take decisions on their behalf.
For instance, in this case the directors and CEO that currently lead the company have the authority to make the decisions on how much money should be invested for research, production, advertisement and wage and other functions if found necessary or possibly cut costs.
“Mercedes-Benz has confirmed that the manufacturer enjoyed its best ever sales results for the month of June. This represents a rise of 6.4 % compared to the same month in 2010, when a high sales volume was recorded. The German carmaker has announced worldwide sales of 120,510 passenger cars were delivered to customers last month. “ (1)
(1) http://news.mercedes-benz.co.uk/company-news/mercedes-benz-announces-positive-sales-figures.html
Evaluate the influence different stakeholders exert in one organisation
Owners - In my point of view a director or manager, on a scale from 1 -10, the importance as a stakeholder, it would be a 10.
I have chosen the owners or directors, as most important stakeholder because I think the reason why the company would progress or fail, profit or loss, would be influenced by the director or CEO. They have the last word and in position to change the company as they see fit. Their decisions are vital because it can change the whole aspect of the company.
For example; only the directors and CEO’s can create and review future plan developments, company goals, objectives and other important motives of the company or organisation.
Customers – In my point of view a customer, on a scale from 1 -10, the importance as a stakeholder, it would be a 9.
I have choses customers secondly because customers are the one main priority in business, it must be assured that a company will profit through providing products or services that are wanted or needed in this day of market.
For example; a product or service, hast to appear appealing and useful for a customer to show an interest. Now that can vary from person to customer depending on character and needs or priorities.
However, it is useful to change the product or service towards an occasion for example weather seasons, events, Christmas, Halloweens etc.
Without customers or clients there is no business and reason to make a profit or survival as the customers are the key for business survival and growth.
Employees - In my point of view an employee, on a scale from 1 -10, the importance as a stakeholder, it would be an 8.
I have chosen employees third most important stakeholder because they each have an important role and they each have been assigned a task or duty. By everybody working efficiently and working together, the company can progress and build up.
For example; researches or developers at Apple Inc. develop and search for state of the art technologies. That is why a company could not grow or survive without employees. But employees don’t have the same or higher importance as customers or directors, for the simple reason that customers bring business and without customers there would be no business and no money to employee staff. With out directors it would be impossible to direct the company and manage the individual departments. And to develop strategic plans and overcome difficulties that could occur within the company.
Suppliers - In my point of view the suppliers, on a scale from 1 -10, the importance as a stakeholder, it would be a 7.
I think the suppliers the least important stakeholder in my analyses. The reason why suppliers are fairly not that extremely vital as customers, directors and employees are because they provide the material or product that the business sells and distributes and not only one company can provide that service. There are many suppliers and once a company is well established and known, the suppliers will be searching for companies to supply and not the other way around.
For example, Apple Inc. needs suppliers to supply the materials to create the products and design them. The company will need equipment to research for the latest technology. This argument makes suppliers crucial as without the supplies and goods it would not be possible for business to progress and generate revenue, because there would be no product to sell. But as I stated earlier, there isn’t only one supplier that can supply the materials that are need to direct the business. That is why suppliers are important for a business but not crucial and depends on its survival.
Customer, directors, employees and suppliers have many aims and goals in common. One of those aims and goals would be that everybody wants to benefit for him or herself. Apple Inc. and Mercedes Benz are interested in giving good products and services. They both are interested in offering customer service and values. Both companies have aims and objectives, values, missions and strategic planning. The differences are resolved by the company and service providers recognizing its strengths and weaknesses and know when to use it, in the appropriate time. To set aims and objectives and short-term and long-term goals and making sure to meet those targets.
In conclusion, all stakeholders have an impact and influence in the business because they show an interest. Depending how involved they are shows their importance and input within the organisation. A business needs to take account of the interest of all of its stakeholder groupings.