The Need for Apple Stores in Remote Areas

The location of a company’s operations is among the factors that shapes its effectiveness and success. Firms should set up in operations in areas that allow them to accomplish their objectives. For example, a firm would be acting wisely when it locates its stores in areas that allow it access to large markets. Companies should also select locations which enable them to gain an edge over their competitors. Today, Apple has located most of its stores in urban centers. The high number of affluent customers is the primary reason why most of Apple’s stores are situated in urban areas. The success that the company continues to enjoy is clear evidence that its store location strategy has been effective. However, the technology industry is facing strong competitive forces that will force Apple to revisit its strategies. If this company is to survive the competition and remain relevant, it needs to revise its store location strategy.

Section 1: Organization 

Company Description 

Apple’s products have gained household status. Today, the firm has operations in most major markets and is the world’s most valuable company (Sommer & Russell, 2017). The growth that the company has achieved is the result of effective leadership, innovative products and robust marketing strategies. Established in 1976 by Steve Jobs and Stephen Wozniak, Apple has grown to become a technology giant. Initially, Apple focused its efforts on the production of computers. However, in response to changes in its market, this company diversified its product portfolio (Schermerhorn, 2010). Some of the products that it makes include consumer electronics, online services and computer software, smartphones and music players, among others. The wide range of products that Apple delivers to the market is among the factors responsible for its growth.

The dedication of its employees is one of Apple’s most valuable assets. It is true that Apple’s rivals such as Samsung employ more workers. In 2017, the number of employees working at Samsung stood at 489,000. On the other hand, in the US alone, Apple employs 80,000 workers who serve in various roles (“Two Million U.S. Jobs”, n.d). Globally, the company’s employee population is in excess of 100,000. In addition to the thousands of workers that Apple employs directly, the company is also indirectly responsible for the creation of thousands of jobs in the US and in other markets. Apple makes up for its relatively meager employee population size by maximizing average employee revenue. There is no doubt that Apple’s human resource strategies inspire its employees to commit fully to their jobs.

Policy Needing Change 

For the most part, the strategies that Apple has adopted have been effective. The company’s runaway success is evidence of the effectiveness of its strategies. However, since the technology industry is undergoing changes, the company needs to revise its strategies. Currently, nearly all of Apple’s stores are located in urban centers. In the recent past, the company has expanded its network of stores. One would expect that to exploit untapped markets, Apple would open new stores in rural and remote areas. This was not the case. The new stores that the company set up in 2013 were mostly situated in urban locations (Allen, 2013). Most of these stores replaced old ones with many of them located close to existing Apple stores. It is evident that Apple has no plans to expand its presence into remote areas. Instead, the company is driven by the need to exploit favorable lease terms that urban stores offer. If Apple truly wishes to redefine itself as a firm that is committed to serving all markets regardless of geography, the firm needs to urgently set up stores in remote locations.

The Need for Change 

The discussion above has made it clear that Apple desperately needs to establish stores in remote and rural locations. The reasons for this change are numerous and varied. Gaining access to new markets is one of these reasons. The McKinsey 7-S framework allows one to understand why Apple needs to change its strategy regarding the location of its stores. The key elements of this framework are structure, strategy, systems, style, staff, skills, and shared values (Witcher & Chau, 2010). These elements can guide a firm in its quest to implement change. For example, as it implements change, firms should align their strategies, human resource management, structures, styles and values with the change that is to be implemented. As it builds stores in remote areas, Apple will be able to deliver its services to the millions of potential customers who reside in these areas. Currently, these customers are forced to travel long distances to reach the Apple stores located in urban centers. As part of its commitment to customer service and convenience, Apple should move with speed and set up stores in the remote locations. Doing this will position the company to compete effectively with such other technology firms as Samsung and Google which have established operations in a variety of locations.

The need to win clients and move closer to customers is another issue that necessitates the location of stores in urban areas. As it sets up stores in urban location, Apple would benefit from the application of Lewin’s change management framework. This model outlines the steps that are involved in the implementation of change. These steps are unfreezing, transition and refreezing. Unfreezing involves securing the cooperation of managers through motivation while transition is concerned with actual implementation of the change. At this step, the leaders need to offer direction and assure stakeholders that the change is intended to promote growth. The unfreezing change involves restoration of order. The Kotter change model is another theoretical framework that could guide the implementation of change at Apple. This model outlines an 8-step process that should be followed when effecting change. Some of the steps in this process involving persuading employees to recognize the value of change, and remaining persistent while implementing the change. This model would allow Apple to get closer to its customers by constructing outlets in rural and remote areas. Overall, Apple needs to establish a presence in remote locations so as to better deliver services to its customers who reside in these locations.

Readiness for Change Diagnostic Tools 

Michael Reiss (2012) is among the scholars who have explored the various tools that can be used to assess whether a firm is ready for the implementation of change. Some of the tools that he presented are organizational effectiveness inventory (OEI), corporate culture inventory and customer service styles (Reiss, 2012). While all these tools would allow one to determine Apple’s readiness for change, OEI and organizational culture inventory (OCI) are the most appropriate. The appropriateness of OEI lies in the fact that it allows employees to contribute to the change implementation process. For change to be implemented successfully, employees must be involved in every step. On the other hand, OCI is appropriate because it will ensure that Apple’s culture will facilitate the implementation process. The successful implementation of change demands that an organization’s culture should be aligned with the change initiative.

Apple’s Readiness for Change 

Result of Diagnosis 

The corporate culture inventory is the best tool for evaluating a firm’s readiness for change. The application of this tool to Apple’s case revealed that this firm is indeed prepared for the recommended change. The firm’s employees and top leadership share common values and all desire to see the company grow. Therefore, there is no doubt that all the firm’s stakeholders will fully support the setting up of outlets in remote locations. While Apple appears ready for change, there are some concerns regarding the firm’s willingness to overhaul its strategy. In the past, the firm has demonstrated a preference for urban locations for its stores. Given this fact, there is some chance that the company will encounter some resistance in its quest to reach its customers in remote areas.

Explanation of Result 

In the discussion above, it has been determined that Apple is prepared for change. This determination has been arrived at after a thorough scrutiny of Apple’s corporate culture. Moreover, various change management theories reveal that Apple is indeed prepared for change. For example, as noted earlier, the McKinsey-7S model identifies seven essential components of effective change implementation. Shared values are among these components. It has been noted above that Apple’s employees and management have shared values. The shared values will inspire the employees and managers to commit all effort to ensure the full implementation of change. The Kotter 8-step model also highlights Apple’s readiness for change. According to this model, successful change implementation should follow an elaborate 8-step process that involves such activities as building coalitions and gathering support for the vision. Since the employees and managers of Apple have shared values, they will join forces to implement the change.

Is Apple Ready for Change? 

It has already been established that Apple is poised for the full implementation of the recommended change. If a firm is truly committed to effecting a change initiative, all its stakeholders need to support the initiative. As noted above, Apple’s employees and top leadership share the desire to see the company grow. Opening stores in remote locations promises to drive Apple’s growth. As it sets up stores in these locations, the company will gain access to a larger market and will be better placed to serve the different needs of its customers.

Section 2: Kotter Change Plan 

Application of Steps to Apple 

Kotter’s 8-step model will be a vital tool for Apple as it implements change. This tool is particularly relevant to the situation that Apple faces. The first step in this model is to create a sense of urgency (Gilley, 2005). For much of its history, Apple has lagged behind its competitors as regards innovation. For example, its most recent smartphones possess features that have been standard for years in the smartphones that its competitors make. It appears that Apple is reluctant to implement industry-leading initiative. This firm must create a sense of urgency for its stakeholders to understand that locating stores in remote areas is desperately needed. Creating coalitions is the second step of Kotter’s model. Apple will encounter difficulties as it seeks to implement the change. To address these difficulties, it needs to secure the commitment of all stakeholders and establish coalitions. Developing a vision and strategy, and communicating this vision are the third and fourth steps in Kotter’s model, respectively (Gilley, 2005). For Apple to persuade its stakeholders to support the change initiative it needs to create a vision which fully captures this initiative. The vision should be accompanied with concrete measures and strategies. Apple should then proceed to convey its vision to its stakeholders. The relevance of these steps lies in the fact that they are needed to gain support from stakeholders. When a firm clearly communicates its vision to its stakeholders, it gains support and the resources it needs to implement change.

After communicating its vision, a firm should proceed to create a broad basis for the vision while generating short-term gains (Gilley, 2005). Apple needs to gain the support of all its stakeholders and incentivize these stakeholders to support the change initiative. This is why the firm should create a broad-based vision which allows for the generation of short-term wins. Consolidating the gains and creating momentum which drives the attainment of further change while entrenching new approaches into the firm’s culture are other steps in the Kotter’s model (Gilley, 2005). For the change that Apple should implement to be sustainable, the company needs to integrate the change into its culture. Sustainable change will allow the firm to ensure that the gains from the change implementation deliver the company into a future defined by prosperity and competitiveness.

Strategies for the 8 Steps 

Kotter’s 8-step process is among the frameworks that are used to guide the implementation of change. As the name suggests, the framework outlines 8 steps that firms should follow closely if their change implementation is to occur smoothly. Apple needs to adopt this framework in its effort to set up base in remote locations. The following discussion examines the various strategies that Apple should adopt as it follows Kotter’s 8-step change model.

Establishing Sense of Urgency 

Kotter’s model identifies creating a sense of urgency as the first step of the change implementation process. As they set out to implement change, firms should ensure that all stakeholders understand why the change is needed (Haines & McKinlay, 2007). To establish a sense of urgency, Apple should seek the endorsement of key stakeholders. For example, when its leaders demonstrate that they recognize the need to implement the change, other stakeholders are likely to understand that the change is indeed important.

Creating Coalition 

A multi-stakeholder approach holds the key to the successful implementation of change (Haines & McKinlay, 2007). Firms need to establish strong partnerships with stakeholders. These partnerships provide them with the support and resources that they need to effect change. As part of its coalition building initiative, Apple should create relationships with rural communities. These relationships will prove vital as the company sets up outlets in remote locations since it will have a ready market for its products. The company should also strengthen ties with investors and employees. Ties with these stakeholders will enhance momentum and sustainability of the change implementation process.

Developing Vision and Strategy 

Change implementation begins with a clear vision and strategy. The vision captures the goals that a firm wishes to achieve while the strategy outlines the specific measures that will be implemented to attain the set goals. It is advised that Apple’s vision and strategy development process should be guided by its corporate values. Inclusion and diversity are some of the values that govern the firm’s operations (“Inclusion & Diversity”, n.d). These values will allow it to serve customers whose needed have gone unmet for a long time thanks to the firm’s failure to set up outlets in remote locations.

Communicating the Vision 

A vision does not benefit a company if it is not clearly communicated. Apple should hold open and candid discussions with its stakeholders. Through these discussions, the firm will be able to convey its desire to serve customers in remote locations. It is critical for Apple to focus particular attention on its employees. This is because the employees will be required to implement the change. It is therefore only fair to ensure that the employees understand what will be required of them.

Empowering Broad-Based Vision 

One of the factors that hamper the implementation of change is the failure to include all stakeholders. When such stakeholders as employees feel that the vision does not reflect their needs or desires, they are unlikely to support the vision (Anderson & Anderson, 2010). Therefore, Apple should secure the support of all stakeholders as it builds a broad-based vision. Most importantly, the firm needs to ensure that its vision reflects the wishes and needs of the stakeholders.

Generating Short-Term Wins 

All the changes that firms implement should be geared towards facilitating long-term growth and sustainability. However, firms should not neglect to invest in short-term progress. Before rolling out its change initiative to all remote markets, Apple should begin with the markets that hold the greatest promise. For example, the firm could focus its initial efforts on remote markets with established infrastructure and ready markets. Doing this will enable the company to witness immediate gains as opposed to investing in remote markets which lack the infrastructure that Apple needs to operate smoothly.

Consolidating Gains and Producing more Change 

It is not uncommon for firms to lose the gains that they have made after implementing change. Apple needs to take all necessary steps to consolidate its wins and create further change. The firm is advised to embrace monitoring and change improvement mechanisms. These mechanisms allow firms to analyze progress and to identify areas that require improvement (Carleton, 2009). By evaluating progress, Apple will be able to ensure that its short-term gains build towards its general objectives. Moreover, the firm will manage to identify and eliminate obstacles that could hamper the attainment of set objectives.

Anchoring New Approaches into the Culture 

The implementation of change should not be isolated events. Instead, they should be embedded into an organization’s culture. To incorporate the approaches that it adopts as it sets up stores in remote locations, Apple needs to ensure that its corporate culture reflects this change initiative. The firm is advised to adopt training methods which impart its values and principles into new and existing employees. For example, among the approaches that Apple will adopt concerns the need to invest in the wellbeing of customers who have been neglected. When it deploys new employees to serve in the newly-established outlets in the remote locations, Apple should remind these employees that they should endeavor to meet the needs of customers in these locations.

Section 3: Resistance and Communication 

Resistance from stakeholders is among the numerous challenges that firms encounter as they attempt to implement change. When the firms fail to address the resistance, they risk compromising the change implementation process. In the following discussion, the impact that resistance could have on Apple’s change initiative and the measures that the company should institute are examined. The purpose of the discussion is to highlight the challenges that Apple should anticipate and the impact that these challenges could have on the change implementation process.

Reasons for Resistance to Change 

There are various reasons why such stakeholders as employees would resist change. The uncertainty that change introduces is among these reasons (Raoprasert & Islam, 2010). Most individuals prefer the comfort of the known and the familiar. Apple should anticipate that some of its employees may resent being deployed in remote locations where basic amenities and conveniences are lacking. The risk of losing jobs is another reason why employees may resist change (Raoprasert & Islam, 2010). There are certain change initiatives that force firms to lay off employees. In these cases, firms should expect their employees to be vehement in their resistance of change. Apple may need to fire some employees to offset the cost of establishing outlets in remote locations. Therefore, the firm should not be surprised if some of its employees refuse to support the change initiative.

Potential Causes of Resistance 

From the discussion above, it is evident that Apple should be wary of resistance to its change initiative. A number of factors could inspire employees and other stakeholders to resist change. The poor communication techniques that Apple uses are one of these factors (Harvey & Broyle, 2010). Apple is notorious for its refusal to openly share information with such stakeholders as employees. As it fails to adopt open communication, Apple will be unable to conduct an effective assessment of the costs and benefits of the change initiative. Another factor that could cause resistance is the failure by Apple’s top leadership to involve employees in the implementation process. For the process to be successful, employees should be consulted and involved in all vital steps of the process. Complacency and a failure to understand the need for change are other factors that could cause Apple’s stakeholders to resist the change. Currently, Apple is a dominant player in the technology industry. Its position of dominance may delude the company that it does not need to establish stores in remote locations.

Plan for Minimizing Resistance 

Left unaddressed, resistance could hamper the change implementation process. It is therefore critical for Apple to move with speed and quell the resistance. The key element of the plan that Apple should adopt as it tackles resistance is to ensure employee involvement. When they are involved in change implementation, employees are likely to offer their full support even if the change threatens their interest (Erskine, 2013). Employee involvement will only go so far in addressing the resistance that Apple will face. Apart from consulting employees, the firm should also limit the extent of the change that it implements. The top management should only implement elements of the change initiative that are absolutely necessary. For example, the firm should not set up stores in locations that are too remote and lacking basic infrastructure.

Resistance to Change and Communication 

Communication is among the numerous tools that firms can use to minimize resistance to change. Through the adoption of effective communication techniques, firms are able to persuade employees and other stakeholders to lend their full support (Bradutanu, 2015). On the other hand, when a firm fails to communicate effectively, the implementation of the change initiative is bound to fail. For example, should Apple’s leaders refuse to respond to the concerns that the employees raise, it is likely that the employees will refuse to support the change. Consequently, the implementation process will collapse.

Communication Strategies 

There are various communication strategies that Apple may adopt. These are nonverbal, verbal and visual. Nonverbal communication involves the use of such elements as gestures and body language. The key benefit of this communication strategy is that it allows people to convey their emotions. As the name suggests, verbal communication concerns the use of words. As opposed to nonverbal communication, verbal communication achieves high levels of clarity since it minimizes confusion. Furthermore, what sets this strategy apart from others is that it allows for the documentation of communication. Visual communication is another strategy that Apple could adopt. Efficiency is the primary advantage of this communication strategy.

Recommended Communication Strategy 

All the three communication strategies evaluated above are available to Apple. However, practical bottlenecks may make it impossible for the company to adopt all the strategies. For this reason, it is recommended that Apple should adopt the verbal communication strategy. One of the merits of this strategy is that it facilitates honest exchanges among employees. As Hynes (2015) notes, verbal communication allows top leaders to persuade employees to support a change initiative. Since Apple desperately needs the support of its employees, it should incorporate verbal communication into its strategy.

Communication Plan 

After selecting the strategy to use for communication, firms need to develop an elaborate plan. As part of the communication plan, Apple needs to outline the impact of the change initiative on various stakeholders. For example, the company should tell its employees that some of them will be required to man its outlets in remote locations. Emerson and Stewart (2011) advise companies to be open with stakeholders and reveal the impact that the transition introduced by a particular change initiative will have on each stakeholder. In its communication plan, Apple should prepare responses to the objections that stakeholders raise. For example, suppose that an employee is concerned that the change initiative may require her to relocate her family. Apple’s plan needs to address this employee’s concerns.

Section 4: Sustaining Change 

In most cases, firms are excited about change. However, many firms are unable to sustain this excitement. Apple should be careful lest it be unable to sustain the change. For the company to ensure that the change becomes part of its routine operations, it needs to adopt a number of strategies. Two of these strategies are discussed in the following section.

Strategies for Sustaining Change 

As stated above, Apple needs to ensure that its change initiative is sustained. One of the strategies that could facilitate change sustenance is transforming an organization’s culture. Instead of being some one-off process, the change should be part of the organization’s culture, values and routine operations. For example, Apple should not stop when it has set up a certain number of stores in a particular remote location. Instead, it should continue to find new locations that could benefit from stores. The second strategy that Apple needs to implement is concerned with creating long-term positive impact. Apple should strive to ensure that each store that it sets up delivers value to employees, investors, communities, and other stakeholders. As it does this, the company will secure the continued support and commitment of its stakeholders.

Evaluation of Strategies 

The strategies recommended above have been the subject of extensive scholarly inquiry. Samuel Silver (2016) and a team of other scholars authored an article that focuses on the various initiatives that firms can adopt as they seek to sustain change. In the article, they identify making the change part of an organization’s culture as one of the most effective strategies. They state that “To achieve sustainable change, quality improvement initiatives must become the new way of working rather than something added on to routine” (Silver et al., 2016, p. 916). Here, Silver and his colleagues are essentially saying that firms should overhaul their culture and way of doing business. These scholars basically endorse culture change as an effective strategy for sustaining reform. The creation of lasting positive impact is the focus of an article authored by Anam Parand (2012) and a group of other scholars. They note that for change to be sustained, firms must ensure that all stakeholders derive benefit. As they witness the impact that the change initiative is having, the stakeholders offer their full support. Consequently, the change initiative is sustained. Since there are scholarly perspectives which shed light on the strategies that Apple should adopt, the firm has every reason to proceed and implement these strategies.

Viability of Strategies 

The scholarly perspectives described above indicate that the recommended strategies are effective. However, one needs to establish that these strategies are viable for Apple. The viability of culture change lies in Apple’s history. This company has been leading the technology industry in the adoption of new trends and technologies. Therefore, the firm is likely to redefine its culture so as to accommodate the change initiative. For example, as part of its new culture, Apple could place emphasis on investing in new stores in remote locations. The strategy concerning creating lasting impact is viable because it is in Apple’s best interest. As it ensures that the change initiative delivers benefits to stakeholders, Apple will secure the loyalty, trust, and unwavering commitment of these stakeholders. Therefore, the recommended strategies are as effective as they are viable.

Conclusion 

That Apple is a leader and pace-setter in the technology industry is not in question. Since its establishment, this company has continued to redefine innovation by delivering products that captivate customers. However, there exist opportunities that Apple is not exploiting. The company has neglected its customers in remote locations. These customers should be the company’s new focus. Apple should move with speed and follow in the steps of such firms as Google and Samsung which are addressing the needs of customers in remote locations. It is important for Apple to follow Kotter’s 8-step process. The firm should also adopt a robust communication plan through which it addresses resistance and concerns that stakeholders raise.

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