APPLE Idriss Ben Hadj Yahia Franck Calamusa Albert Casamitjana Anuj Chandarana

OUTLINE 1.Industry and Company Introduction 2.Apple Computers - Human Resources Perspective 3.Key Take-Aways

1. INDUSTRY AND COMPANY INTRODUCTION

Porter Five Forces: –The threat of entry by new competitors. –The intensity of rivalry among existing competitors. –Pressure from substitute products. –The bargaining power of buyers. –The bargaining power of suppliers. COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY INDUSTRY APPROACH

Designing, manufacturing and marketing of personal computers and related software and peripherals for sale primarily to education, creative, consumer and business customers. COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY WHO IS APPLE?

Created in 1976 by Steve Wozniak and Steve Jobs : sales increased from $7.8 million to $117 million In 1981 Apple initiated its first public offering In 1984 Apple launched the first Macintosh After a crisis period: in 1997 great success of Apple’s iMac and iBook lines, a new UNIX based server called Mac OSX, and an online build-to- order system based on Dell’s success in this area. COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY WHO IS APPLE?

APPLE TODAY Net sales: $5,742M (Δ 7,07% from 2001) 2002 Net profit: $65M (loss of $25M in 2001) # of Employees: 10,211 Share Price Performance: COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY

APPLE CURRENT SITUATION Apple is in deficit for the second consecutive quarter. It announced in January a net loss of $8 million for the most recent quarter. The turnover is slightly rising to $1.47 billion but remains below analysts’ expectations. COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY

APPLE IN FRANCE Opened its headquarters in Paris in January Apple France director, Jean-Louis Gassée, later became second in charge. Employing originally only 25 people, it soon became Apple’s biggest subsidiary abroad France was the Apple’s fastest growing European market until september 2002, when it was surpassed by Italy. COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY

INDUSTRY KSFs Brand Strength Clear Strategy Differentiation Through Technological Innovation Dedicated and Proud Employees COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY

REASONS FOR APPLE’S SUCCESS Excellent Technological and Marketing skills Refusal to compromise brand image Control of retail channel Customer Loyalty Technological Innovation Open lines of communication between functional levels COMPANY HR PERSPECTIVETAKE-AWAYS COMPANY

2. HUMAN RESOURCES PERSPECTIVE

CORPORATE CULTURE Values aren’t formalized Open lines of communication – not hierarchical Pride for the brand Formerly decentralized - autonomy Roots in America Homogenous across countries COMPANY HR PERSPECTIVETAKE-AWAYS

HR POLICY REASON FOR COMPANY’S SUCCESS: –Autonomy –Skilled and Motivated Staff –Open lines of communication –No formal human resources/organizational policies COMPANY HR PERSPECTIVETAKE-AWAYS

HR POLICY DIFFERENCE BETWEEN HR POLICY IN FRANCE AND OTHER COUNTRIES IN EUROPE: –No country specific HR policies –But country specific implementation plans 35 hour work week In France, more vacation is given than in the UK, less than in Germany COMPANY HR PERSPECTIVETAKE-AWAYS

3. KEY TAKE-AWAYS

REASONS TO SETTLE IN FRANCE Lower labor and land costs, relative to other countries (ex. England) Subvention from Government City is attractive to potential employees Skilled business and engineering professionals Language barrier is not large Good Infrastructure Access to large market Part of European Union COMPANY HR PERSPECTIVETAKE-AWAYS

KEY TAKE-AWAYS Advice for other multinational companies looking to settle in France: –Don’t staff only French people! –Keep in mind European Union regulations, not only national ones –Expect politics in your company! –Expect specificity of French governmental administration –The French are flexible – the stereotype is incorrect! COMPANY HR PERSPECTIVETAKE-AWAYS

KEY CONTACT Philippe Gaud –Director, Human Resources Europe, Middle East & Africa COMPANY HR PERSPECTIVETAKE-AWAYS