Leadership Styles of Steve Jobs and Tim Cook in Apple Inc.
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This paper is a case study analysis about the leadership styles of Steve Jobs and Tim Cook in Apple Inc. It examines their approaches and contributions to the success of the company.
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Running head: STRATEGIC MANAGEMENT STRATEGIC MANAGEMENT Name of the Student Name of the University Author Note
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1STRATEGIC MANAGEMENT Executive summary This paper is case study analysis about the company Apple Inc. This paper will focus on the two leaders of this successful company, Steve Jobs and Tim Cook. The paper will focus on the leadership styles and approaches of the two leaders that have helped the organization in making fruitful and concrete changes and effective developments for the company. The company will provide the role played by the different leaders in the company and analyze how this has helped Apple Inc. to become one of the most successful companies in the world
2STRATEGIC MANAGEMENT Table of Contents Introduction......................................................................................................................................3 Discussion........................................................................................................................................3 Brief background of the case study.............................................................................................3 Role of Steve Jobs in Apple Inc..................................................................................................4 Leadership qualities and style of Steve jobs................................................................................6 Role of Tim Cook in Apple Inc...................................................................................................7 Leadership qualities and style of Tim Cook................................................................................8 Conclusion.....................................................................................................................................10
3STRATEGIC MANAGEMENT Introduction Leadership is considered to be the process through which a person controls, influences and motivates the behaviour of other people or a group of people towards specific goals and objectives1.Leaders have become an important part in the society and the organizations and most organizations are seen to be hiring leaders in order to effectively manage the operations of the organization and build competent teams in order to achieve the desired goal and contribute to the overall development of the organization2. This paper is a case study about the two greatest leaders of the company Apple Inc., Steve Jobs and Tim Cook and will analyze the leadership styles and techniques that they have used that have contributed to the success of Apple Inc. which has become a giant in the market. Discussion Brief background of the case study This case study talks about the company, Apple Inc. and how the company has managed to come a long way because of the change in the organizational structure and work culture that was created by the leaders of the company that had made them one of the most successful companies in the world. Apple was always not a successful company, it made many decisions 1Covin, Jeffrey G., and Dennis P. Slevin. "The entrepreneurial imperatives of strategic leadership."Strategic entrepreneurship: Creating a new mindset(2017): 307-327. 2Dunne, Timothy C., et al. "The impact of leadership on small business innovativeness."Journal of Business Research69.11 (2016): 4876-4881.
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4STRATEGIC MANAGEMENT that were not fruitful for the business and the company had seen many ups and downs. Apple Inc. was founded by Steve Jobs, Ronald Wayne and Steve Wozniak. After Steve Jobs left the company, Apple sales dropped in the market and were not doing too well. The company started to grow and made a mark in the market after the return of Steve Jobs in the company. The various innovations of the company and the premium quality of the company have contributed to the success of the company. Role of Steve Jobs in Apple Inc. It is important for every leader to possess some skills and qualities that help in the developmentofabusiness.Accordingtoscholarsagoodleaderneedstocreateideas, communicatetheideasforfruitfulgoalsandmanageteamseffectivelyfortheoverall development of an organization3. This is exactly what Steve Jobs did to Apple after he returned to the company. Apple was initially not doing well in the market and it was Steve Jobs who turned the overall business that led to the success of the business. Scholars state that good leader needs to have good decision making skills and a clear vision that helps a business overcome a situation of crisis4. Steve Jobs created a new innovation with Apple Computers which was popularly known as the Macintosh and nobody really believed in him and thought the idea would fail considerably. However, it was the commitment, vision and the belief in himself that made Steve Jobs pursue his vision and work towards achieving the goal which had made him introduce the Macintosh in the market. The Macintosh since then has been a huge success in the market 3Kremer, Hannah, Isabel Villamor, and Herman Aguinis. "Innovation leadership: Best-practice recommendations for promoting employee creativity, voice, and knowledge sharing."Business Horizons62.1 (2019): 65-74. 4Seijts, Gerard, et al. "Character matters: Character dimensions’ impact on leader performance and outcomes."Organizational Dynamics44.1 (2015): 65-74.
5STRATEGIC MANAGEMENT and has helped the company generate profits that had led the company overcome from the crisis and the issues they were facing before Steve Jobs came in the company5. The Macintosh is still popular in recent times because of the innovative processor that had given the company a competitive advantage over the market. Since the Steve Jobs was given all the responsibility as to how he wanted to structure the business and how he wanted to overcome the issues that were prevailing in the company. One of the biggest issues Apple at that time was facing the lack of innovation. According to scholars, innovation is a key element that helps in increasing the productivity of a business6. Innovation today is the key word that is associated with Apple because of the several innovations that was created by Steve Jobs. Innovation in an organization means creating a more effective products or ideas like implementing a new idea in a business or creating or manufacturing dynamic products in the market. Innovation is considered to act as a catalyst that contributes to the growth of the business. Steve Jobs turned the business of the organization and created a niche for themselves by creating an innovative organization. Steve Jobs revolutionized the entire system where he changed the strategy of the business as well as the culture. He focused on the innovative culture that had been proven to be fruitful for the organization. The focus of the company was more on innovation and Steve Jobs kept about 30% of the new products that he felt would go to become gems and added new products that made him believe that it could be pathway for the organization. 5Tjong, Vehniah K., and Daniel B. Whelan. "The MacIntosh Procedure."Rotatory Knee Instability. Springer, Cham, 2017. 311-318. 6Porter, Michael E., and Mark R. Kramer. "Creating shared value."Managing sustainable business. Springer, Dordrecht, 2019. 323-346.
6STRATEGIC MANAGEMENT Steve Jobs changed the business structure completely and created an ecosystem for the company with a range of new products in the market. It became a breakthrough innovation in the entertainment industries and consumer electronics. The company with its innovation started to expand their range of products in the market and created the iPod which become a huge success among music listeners in the market. This was considered to be a product that helped Apple gain extra revenues apart from the Macintosh. The next innovation that became one of the most popular products by Apple was the iPhone. The phone had a different operating system known as the iOS and was only operated by the users of the iPhone. These unique and innovative products were of premium quality and everyone wanted to get their hands on these products. According to scholars, a good leader should not only focus on ideas but should have the capability to implement it and create a competitive advantage in the market7. The products created by the company gave the products distinctive features that were hard to replicate in the market which boosted the sales of the products in the market. It can be seen that Steve Jobs was a pioneer and with his effective skills and qualities helped change the company Apple Inc. and made turned it into one of the most innovative and successful companies in the world. Leadership qualities and style of Steve jobs Steve Jobs is considered to be one of the greatest and unconventional leaders in the technology industry. From the case study it can be seen that Steve Jobs was a transformational leader. Transformational leaders are said to be those leaders who build a vision for their 7Pisano, Gary P. "You need an innovation strategy."Harvard Business Review93.6 (2015): 44- 54.
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7STRATEGIC MANAGEMENT companies, an identity of a company is built on the beliefs and the values and also energizes people to achieve the desired vision8. Steve Jobs created a vision of building and ecosystem and come up with new products with distinctive features and premium quality that helped in boosting the sales of the company. Scholars state it is important for leaders to have good and effective decision making skills that help in contributing to the success of the company9. Steve Jobs is seen to have a good decision making skill as it was his decision of changing the culture of the business that helped in shaping up the company. Steve Jobs is also considered to have followed authoritative leadership. Scholars opine authoritative leaders mainly focus on setting some goals for an organization and achieve the desired goals10. These leaders put emphasis on the smallest details and these appeal to them and focus on building a team that have the potential to produce quality work. Authoritative leaders are set to inspire creativity and individuality in the company. Steve Jobs set his own goals and made sure his employees work towards achieving the mission set by him. Steve jobs also put emphasis on the employees with whom he worked and employed a stock based incentive structure in order to retain the talented employees in the market. Role of Tim Cook in Apple Inc. 8Podsakoff, Philip M., Scott B. MacKenzie, and William H. Bommer. "Transformational leader behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citizenship behaviors."Journal of management22.2 (1996): 259-298. 9Lu, Jie, et al. "Multilevel decision-making: A survey."Information Sciences346 (2016): 463- 487. 10Miller, Alice. "‘Core’Leaders,‘Authoritative Persons,’and Reform Pushback."China Leadership Monitor50.50 (2016): 1-12.
8STRATEGIC MANAGEMENT Tim Cook took the place of the CEO after the legendary Steve Jobs. His managerial style is different from Steve Jobs and can be seen has a more democratic approach. Tim Cook kept a low profile and worked in order to make the existing products in the company more enhanced which would help the customers of Apple. Tim Cook made an adaption change to the business which saw him focusing on the existing products and rebuilding them to gain a competitive advantage in the market. According to scholars, adaption change helps in recreating and making products are service more enhanced that caters to the needs of the people.Tim Cook launched the new generation iPad and iPhone which helped the company increase their sales by 43 percent. Tim Cook had terminated one of the most trusted and talented employees in the company because of his poor performance that led to the poor received Apple maps and the poor voice recognition of Siri. Tim Cook has been great in handing supply and chain and has been considered to be a supply chain expert. Since then he has hired many talented professionals and successful people to serve the company with their experience and expertise. During this time, Apple launched various new systems and wearable products like the Apple Watch and launched the new range of iPhone with bigger screens and also new payment system which was Apple Pay. Tim Cook came up with Apple TV and insured an app store experience that would let customers get access to different TV shows and movies. Tim Cook has been seen to manage the company very well keeping the corporate culture intact ad trying to come up with new innovative strategies that help in boosting the sales and revenue of the company. Leadership qualities and style of Tim Cook
9STRATEGIC MANAGEMENT Tim Cook is considered to be a charismatic leader who may have lacked the vision that Steve Jobs had but was very thoughtful and great at managing the structure of the organization. He put greater emphasis on the existing products in the market and helped in fostering the business as well as built a positive relationship among the society. Tim Cook is considered to be a transactional leader. Transactional leaders are considered to be people who value their organizational structure and work hard in order to retain the structure and work for the betterment of the structure. According to scholars, transactional leaders move supplies and people in an organized manner11. Tim Cook has seen to have built positive relationship with the employees and have seen to cater to the needs of the employees and have also focused on the supplies. Many scholars have said that transactional leaders are not innovators but great manager12. Tim Cook is a great manager and has been working to promote innovation within the organization and has successfully managed the operation that has helped the company in coming up with enhance and nuanced version of the existing products. There are few hints and traits of situational leadership in the approach of the work by Tim Cook. According to scholars, situational leaders are those leaders who are said to have made changes in their leadership approach due to the situation in the market13. Tim Cook does not have the same vision as Steve Jobs had however, he had come up with new products like Apple watch 11Buch, Robert, Geir Thompson, and Bård Kuvaas. "Transactional leader–member exchange relationships and followers’ work performance: The moderating role of leaders’ political skill." Journal of Leadership & Organizational Studies23.4 (2016): 456-466. 12Kesting, Peter, et al. "The impact of leadership styles on innovation-a review."Journal of Innovation Management3.4 (2016): 22-41. 13Parse, Rosemarie Rizzo. "Situational awareness: A leadership phenomenon." (2018): 317-318.
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10STRATEGIC MANAGEMENT and the new payment system Apple Pay, in order to gain competitive advantage in the market and bring new products to the ecosystem of the company. Confidence is one of the key factors one leader should have. The confidence of Tim Cook to acquire the position of the CEO of the company, Apple Inc. and t successfully manages to contribute to the growth and the business of the company has been impeccable. Tim Cook may have a lack of innovation but great at managing the huge empire. Conclusion Leaders are said to be one of the most vital aspect of an organization. An effective leader has the capability to positively manage the company and also make innovation that helps in the success of the organization. Steve Jobs and Tim Cook, both have different leadership styles and approach however, the core values and their vision has helped in making Apple Inc. one of the most successful organizations in the world.The different leadership qualities and approach has shaped up the organization of Apple Inc. in different ways however, both being important and fruitful for the organization
11STRATEGIC MANAGEMENT Reference Buch, Robert, Geir Thompson, and Bård Kuvaas. "Transactional leader–member exchange relationships and followers’ work performance: The moderating role of leaders’ political skill." Journal of Leadership & Organizational Studies23.4 (2016): 456-466. Covin, Jeffrey G., and Dennis P. Slevin. "The entrepreneurial imperatives of strategic leadership." Strategic entrepreneurship: Creating a new mindset(2017): 307-327. Dunne, Timothy C., et al. "The impact of leadership on small business innovativeness."Journal of Business Research69.11 (2016): 4876-4881. Kesting, Peter, et al. "The impact of leadership styles on innovation-a review."Journal of Innovation Management3.4 (2016): 22-41. Kremer, Hannah, Isabel Villamor, and Herman Aguinis. "Innovation leadership: Best-practice recommendations for promoting employee creativity, voice, and knowledge sharing."Business Horizons62.1 (2019): 65-74. Lu, Jie, et al. "Multilevel decision-making: A survey."Information Sciences346 (2016): 463- 487. Miller, Alice. "‘Core’Leaders,‘Authoritative Persons,’and Reform Pushback."China Leadership Monitor50.50 (2016): 1-12. Parse, Rosemarie Rizzo. "Situational awareness: A leadership phenomenon." (2018): 317-318. Pisano, Gary P. "You need an innovation strategy."Harvard Business Review93.6 (2015): 44- 54. Podsakoff, Philip M., Scott B. MacKenzie, and William H. Bommer. "Transformational leader behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citizenship behaviors."Journal of management22.2 (1996): 259-298.
12STRATEGIC MANAGEMENT Porter, Michael E., and Mark R. Kramer. "Creating shared value."Managing sustainable business. Springer, Dordrecht, 2019. 323-346. Seijts, Gerard, et al. "Character matters: Character dimensions’ impact on leader performance and outcomes."Organizational Dynamics44.1 (2015): 65-74. Tjong,VehniahK.,andDanielB.Whelan."TheMacIntoshProcedure."RotatoryKnee Instability. Springer, Cham, 2017. 311-318.