Apple operates using a company structure known as a functional organization.
Apple's Functional Organization Structure
Based on its operational model, Apple uses a company structure that is commonly known as “functional organization”. This means that instead of organizing teams around specific products (like iPhone, Mac, Apple Watch), the company is organized around core areas of expertise or functions.
These functional departments include groups like:
- Engineering (potentially broken down further by discipline)
- Design (industrial design, software design)
- Marketing
- Operations/Supply Chain
- Retail
- Finance
Each department houses individuals who are experts in their respective fields.
How Product Development Works in this Model
In this functional structure, work on specific products is a collaborative effort. The reference states that the products themselves are then worked on by individuals from across the different areas of expertise.
This means that for a product like the iPhone, a project team would be formed by pulling engineers from the engineering department, designers from the design department, marketing specialists from the marketing department, and so on. These individuals contribute their specialized skills to the product, working across traditional departmental lines for specific projects while reporting within their functional expertise area.
This model contrasts with a product-based structure where teams would be permanently assigned to a product line and contain all necessary expertise within that single team.
Key Aspects of Apple's Structure (Based on Reference)
| Aspect | Description |
|---|---|
| Primary Structure | Functional Organization |
| Grouping Basis | Areas of Expertise / Functions |
| Product Work | Done by individuals collaborating across different areas of expertise |
This focus on organizing by expertise allows Apple to concentrate deep technical and creative talent within specialized groups, which can then be leveraged across multiple product lines and initiatives.
