Analyzing Corporate Universities: A Global Business View of GE & Apple

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This report provides an in-depth analysis of corporate universities, focusing on the models implemented by General Electric (GE) and Apple. It explores the concept of corporate universities as vital components of knowledge management within organizations, detailing their role in the development, storage, and dissemination of knowledge. The report outlines the goals, objectives, and potential benefits of the corporate university initiatives at both GE and Apple, highlighting how these institutions contribute to individual and organizational development. Furthermore, it draws a connection between the advantages of corporate universities and the broader concept of knowledge management, emphasizing the importance of these institutions in shaping corporate culture, promoting innovation, and aligning employee training with strategic organizational goals. Desklib provides access to similar solved assignments and study resources for students.
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Running head: MANAGEMENT
Global Business Management
Name of the Student:
Name of the University:
Author Note:
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Executive Summary:
The report aims at providing an insight into the concept of corporate universities introduced by
the two major multinationals Apple and General Electric. Corporate universities are seen to be
playing vital roles in the development, storage and the disseminations of the knowledge thereby
contributing to the function of the knowledge management with firm. The report commences
with the concept of the corporate universities and the knowledge management. The report then
goes on to discuss the goals and objectives and the potential benefits of the Apple and the
General Electric. The report also draws a connection between the potential benefits of the
corporate university and the concept of the knowledge management.
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Table of Contents
1.0 Introduction:..............................................................................................................................3
1.1 Corporate Universities...............................................................................................................3
1.2 Concept of Knowledge Management........................................................................................4
2.0 General Electric Corporate University:...................................................................................5
2.1 Goals and Objectives.................................................................................................................6
2.2 Potential Benefits.......................................................................................................................7
3.0 Apple Corporate University:......................................................................................................8
3.1 Goals & Objectives....................................................................................................................9
3.2 Potential Benefits.....................................................................................................................10
4.0 Recommendations....................................................................................................................10
5.0 Conclusion...............................................................................................................................11
6.0 References................................................................................................................................13
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1.0 Introduction:
1.1 Corporate Universities
The report provides an insight into the concept of corporate universities set up by two
multinational corporations Apple and General Electric. Corporate Universities has been on the
rise supported by the certification programs and professional organizations (Parshakov and
Shakina 2018). In United States the ranks of the Corporate Universities doubled in between 1997
and 2007 from close to 1000 to about 2000. The figures worldwide however stood at 4000. The
growth of the corporate universities reflected significant development commitments and
corporate training. In the year 2012, Boston Consulting Group (BCG) made estimation that the
companies in G20 countries invested close to $400 billion in matters related to training. The
investment has however been driven by the developed countries that included Germany, US and
France.
Nevertheless, in present times the Corporate Universities model have moved beyond training for
the skills required for a job towards the focus of establishment of a clear relationship between
what the employee does and how it helps the company in achieving the goals thereby providing
sense of belonging and ownership thereby leading to the creation of the organizational
ambassadors (Rhéaume and Gardoni 2016). The model aims at the promotion of learning
thereby resulting in the cultivation of the sense of vision of the company for its employers.
According to Rademakers (2014), it is best described across following principles:
Designing of the curriculum for incorporating citizenship
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Providing of learning opportunities for supporting the critical issues of the business
Competencies of the Core Workplace
Contextual framework
These concepts put forward by these principles have their disciplines in common with the
Knowledge Management and Human Resource Management.
1.2 Concept of Knowledge Management
Knowledge Management (KM) implies a stronger tie to the organizational strategy and
goals and involves the management of knowledge useful for certain specific purpose that creates
the value for organization (Donate and Pablo 2015). According to Villar, Alegre, and Pla-Barber
(2014), the previous definitions of KM involves understanding of the existence of knowledge in
various forms, the things that the organization requires to know and the ways of promoting a
culture conducive to the sharing, learning and the creation of the knowledge. It also involves
making the right kind of knowledge available to right people at right time, the ways of acquiring
and generating newer relevant knowledge, ways of managing the factors for enhancing the
performance in the light of the strategic goals of the organization along with the short term
threats and opportunities.
KM should therefore ensure the creation of right tools, knowledge, people, culture and
structure for enhancing learning (Kianto et al. 2014). This must also help in understanding the
applications and value of the new created knowledge that it must store thereby making it readily
available to the right kind of people at right time. Thus, KM depends on the conversion
mechanisms and the knowledge creation of the organization. It has been found that organizations
can benefit from the identification of the KM that implies their own context as there does not
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exist any universal definition of KM. Besides, Inkinen (2016) proposed three perspectives of the
KM:
Business or Strategic Perspective: This implies focusing on the why, where and the extent
to which organizations exploits or invest knowledge. Here, the strategies should be
considered from the point of view of the knowledge.
Tactical or Management Perspective: This focuses on the organizing, directing,
determining, monitoring and facilitating of the knowledge based activities and the
practices for achieving the desired objectives and goal.
Operational or Hands on Perspective: This implies focusing on the expertise for
conducting explicit knowledge related to the task and work.
It is also crucial to note that KM does not depend on technology since it does not lead to the
creation of knowledge. It however helps the knowledge to be organized, remembered, widely
disseminated and published. This refers to the explicit knowledge that represents the content
captured in tangible form that includes recordings, words or images.
2.0 General Electric Corporate University:
The Corporate University of General Electric (GE) represented a 53 acre learning campus
in Crontonville which is also the first in America established in the year 1956 (Nicholls 2017).
The Corporate University acted as the symbol of the company’s commitment towards learning.
GE renamed its institute in the year 2001 for honoring former CEO, Jack Welch which was
previously known as the GE’s Institute for Leadership Development. Through this, GE, wanted
to portray itself as one of the best managed company across the world. The institute ran the GE
course for the advanced managers for 12 weeks for coaching the old school bosses on how to
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scale up the manufacturing process. In a matter of six decades, the GE Corporate University
underwent philosophical reengineering whose modern mission has been to connect, inspire and
develop the leaders of today and tomorrow.
For its Global Customer Summit (GCS) GE gathers close to 300 customers at the
Crotonville Campus. The delegates not only experience five days of immersive networking and
training but live in on site residences (Economictimes.com 2008). They also listen to range of
carefully curated speakers who present makes a presentation on varied topics ranging from
neuroscience to the additive manufacturing, from the innovations within the emerging
technologies and leadership.
The Globalized Customer Summit acts as opportunity for not only learning and
networking but also understanding the things that works. Robust discussions around the issues
acts better as there are lot of challenges in GE which are also realized by the customers.
2.1 Goals and Objectives
The Corporate University of GE had the goals of establishment of a knowledge
management system. It remained congruent with the newer modes of the knowledge sharing and
creation as the learning process within the organization. The objectives aimed at the individual as
well as the organizational development. The objectives of GE Corporate University lay in
undertaking regular workshops for ensuring the process of the knowledge transfer amongst the
employees (Lytovchenko 2016). The University also designed ‘The pit’ which represented a
forum where the leaders from different companies owned by GE gathered for discussing a
crucial organizational initiative in free flow format. Besides, the Corporate University also
initiated the six sigma quality program and the leadership development program.
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In other words, the Corporate University acted as one of the advanced forms of the
organizational training that arose in response to challenges of the global economy and the
information society, enhanced competition in market and the failure of traditional institutions for
the professional education for meeting the needs of modern economy for qualified employees.
Modern Corporate University represents a system of the organizational development and the
personal training, combined with the single concept and the methodology that inextricably
coordinated and linked with strategies of organization (Jarvis 2013). Therefore, the key functions
of Corporate University represent training at the different levels of the company employees,
formation of the corporate values, knowledge management, shaping of the corporate culture and
the promotion of the innovation. As the organizations have varied development strategies and
needs, the Corporate Universities of the different companies in United States differs not only in
objectives and purpose but also the structural characteristics and the methods of the instruction.
However, the learning process within corporate university has an andragogical focus and remains
characterized by the extensive use of the e-learning technologies.
2.2 Potential Benefits
The transition in the global economy and the information society enhanced the
competition within the market at present and poses newer challenges towards both the
professional education and the organization (Knight 2013). The professional education must
meet the needs of modern economy while the organization should take the initiative of training
the employees and strengthening the links with the science and education. Training personnel has
been rapidly developing the complex, dynamic and the variable business that required a newer
educational paradigm (Rasmussen and Wright 2015). This led to the emergence of the corporate
universities as one of the advanced means of learning within the organization that embodies
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convergence of the business and the education with the focus on the personnel training and the
development aimed at meeting the company needs.
Therefore, one of the potential benefits of GE’s Corporate University has been in aiding the
maintenance of the corporate culture even when it remains spread over the diverse local cultures.
In other words, it helps in shaping the culture of the organization. Besides, the workout program
of the University focuses on the group meetings comprising of close to 40 to 100 employees who
have been picked by the management from all the functions for the meetings within the two to
three days. The program also enables the creation of culture that revolves around the simplicity,
speed and the self consistent that remains consistent with the constant improvement. In addition
to this, it also emphasizes on the boundary less culture, empowers the teamwork, builds the trust
and ensures the collection of the people irrespective of their position (Jehanzeb and Bashir
2013).
The continuous success of university along with the company remains characterized by
the flexible nature. Successful knowledge management (KM) should be flexible as the fields
always transform and change and hence the corporate university should embody the KM which
should also be flexible (Dalkir 2013). GE Corporate University also incorporates flexibility by
allowing the employees to learn and ensure the creation of the culture that involves simplicity,
speed, simplicity and self confidence that remains consistent with the constant improvements.
This allows the employees in learning and applying what they learned from the jobs (Pandey and
Dutta 2013).
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3.0 Apple Corporate University:
Apple introduced its Corporate University in the year 2009 when the former Dean of the
Yale Business School, Joel Podolny, was appointed as the first dean by Steve Jobs (Colt 2015).
Podony still effectively serves as the dean of University and is also the Vice President of Apple.
The corporate University of Apple was established for inculcating the business culture of Apple
amongst the employees and educating them about the history of the company especially the
company growth. In other words, the model of the University revolved around the interest of
Steve Jobs in initiating ‘the Apple Way’ amongst the employees. The courses of the Apple
University could be availed through invitation only that directly came from Dean and was aimed
at the Corporate Manager at director level or higher 13. The classes include (Wallker 2009):
History of Apple- Company believes in the studying of Apple’s foundations so that the
trainees are able to meet the genius of Steve Job and even succeed without him.
Importance of Specialization: This involves being the best at a single specific task
Learning about the External Environment: This involves drawing required inspiration
from the outside company. For instance, learning about the product design and the
development from the analysis of the famous landscapes along with evaluation of the
case studies.
3.1 Goals & Objectives
The mission of the corporate university of Apple lies in teaching the managers the
significance of the company culture, the factors determining the success of the company and the
unique aspects of Apple (Gibbs 2014). This also involves the creation of a forum that helps in
imparting the DNA amongst the future generations of the Apple employees. This is followed by
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the understanding that genius is not born but they are made. Apple’s Corporate University has
been a secret like the products and it was believed that through the University, Jobs tried to
demonstrate how principles instilled within Apple could be gradually translated into the business
strategies. This helped in unleashing innovation and in determining sustainable success in
perfectionism, accountability, secrecy and simplicity and paying attention to the details.
3.2 Potential Benefits
Apple believes that the business operations should remain more streamlined where
enhanced knowledge is necessary for efficient operation with the turnaround time measured in
the minutes and not days or week. Therefore, their strategy of ‘less is more’ reflects the
awareness about the Knowledge Management (KM). Organizations embracing it does not work
harder but smarter. This implies working faster. For the organizations to survive and have a
chance of growth, the rate of the learning should remain equivalent or is greater than the rate of
the change in the external environment (Burrows 2014). The constant updates in the products
and the IOS systems stems from knowledge gained at the university and prove to determine the
success at Apple. It was also indentified that staying in the business required constant change and
improvement and is carried out through the continuous need for learning from the experience and
the observations. Apple’s Corporate University stresses on importance of the organizational
history for learning about the past failures and success that helps them in changing.
Employees attending the Apple’s Corporate University put across the benefit of
experiencing both teaching forms of the University and the ones accredited by the Ivy League
Universities (Guthrie 2013). The key challenge of the concept of corporate university is that they
are not accredited or recognized by other companies.
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4.0 Recommendations
The size of company and size of university should be considered a limitation since the
corporate universities are basically a state of the mind. However, if most of the organizations
remain invested and understand the true potential of Knowledge Management, setting the space
for the employees in adopting the concepts and turning them into strategic and competitive
business advantage should remain central to the establishment. The challenge lies in the infusion
and the application of the company’s culture which requires to be done in a systematic and
efficient approach. It is therefore, recommended that the design should integrate four kinds of
strategic information which includes:
Knowledge of the area: This involves understanding the economics, culture and the social
conditions of the local environment.
Knowledge of the product: This involves identification of the newer markets for the
existing products and the newer products for the existing markets
Functional knowledge: This involves accessing the localized expertise in the functional
areas of the business.
Knowledge regarding the customers: This involves understanding the customer needs.
Besides, collaboration remains the crucial aspect for a successful corporate university which
remains at the core of HRM.
5.0 Conclusion
The GE and the Apple corporate university have been two of the most successful industry
institutions that portrayed a broader appeal. These universities remain distinguished by the focus
on the history and the corporate culture and importance of training the students in flexibility,
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creativity, adaptability and innovation. Establishment of corporate university, allowed the
organizations in acknowledging enhancement of employee as priority and recognition of their
value as the ambassadors of company. The report puts across that there have been opportunities
as well as challenges. However, the shortcomings of the corporate university are:
There are no obvious means for measuring the impact of that the corporate universities
have on bottom line.
There is minimal feedback on the importance of the course and the ones done through
survey does not have an empirical evidence for measuring the achievements
Certificates from the corporate universities focus primarily on sponsoring the needs of the
firm and have been less attractive to the competitors.
Have the potential for inconsistency in training and the disruption of the work schedules.
Nevertheless, on overcoming the challenges, the corporate university has the potential for
benefiting the parent organization and possesses the capability of determining the long term
strategies of the organization.
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6.0 References
Burrows, Peters. 2014. "Why Apple University Matters More Than Ever". Bloomberg
Technology. http://www.bloomberg.com/news/articles/2014-02-13/why-apple-university-
matters-more-thanever
Colt, Sam 2015. “Here's what it's like to attend Apple's secret university”.
https://www.businessinsider.in/Heres-what-its-like-to-attend-Apples-secret-university/
articleshow/46138605.cms
Dalkir, Kimiz. Knowledge management in theory and practice. Routledge, 2013.
Donate, Mario J., and Jesús D. Sánchez de Pablo. "The role of knowledge-oriented leadership in
knowledge management practices and innovation." Journal of Business Research 68, no. 2
(2015): 360-370.
Economictimes.com. 2008. “Explore GE campus, walk out employed”.
https://economictimes.com/corporate-dossier/explore-ge-campus-walk-out-employed/
articleshow/2803245.cms?from=mdr
Gibbs, Samuel. 2014. "Apple University: Where Employees Are Not Born, But Made". The
Guardian. https://www.theguardian.com/technology/2014/aug/11/apple-university-employees-
staff-stevejobs.
Guthrie, Doug. 2013. "Corporate Universities: An Emerging Threat To Graduate Business
Education".http://www.forbes.com/sites/dougguthrie/2013/01/22/corporate-universities-an-
emerging-threat-to-graduate-business-education/#228bcc6a67fb.
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Inkinen, Henri. "Review of empirical research on knowledge management practices and firm
performance." Journal of knowledge management 20, no. 2 (2016): 230-257.
Jarvis, Peter. Universities and corporate universities: The higher learning industry in global
society. Routledge, 2013.
Jehanzeb, Khawaja, and Nadeem Ahmed Bashir. "Training and development program and its
benefits to employee and organization: A conceptual study." European Journal of business and
management 5, no. 2 (2013).
Kianto, Aino, Paavo Ritala, John-Christopher Spender, and Mika Vanhala. "The interaction of
intellectual capital assets and knowledge management practices in organizational value
creation." Journal of Intellectual capital 15, no. 3 (2014): 362-375.
Knight, Jane. "The changing landscape of higher education internationalisation–for better or
worse?." Perspectives: Policy and practice in higher education 17, no. 3 (2013): 84-90.
Lytovchenko, Iryna. "Corporate university as a form of employee training and development in
American companies." (2016).
Nicholls, Jane. 2017. "Inside Crotonville: GE’S Corporate Vault Unlocked".
https://www.ge.com/reports/inside-crotonville-ges-corporate-vault-unlocked/.
Pandey, Satyendra C., and Andrew Dutta. "Role of knowledge infrastructure capabilities in
knowledge management." Journal of knowledge management 17, no. 3 (2013): 435-453.
Parshakov, Petr, and Elena Anatolievna Shakina. "With or without CU: A comparative study of
efficiency of European and Russian corporate universities." Journal of intellectual capital 19, no.
1 (2018): 96-111.
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Rademakers, Martijn. Corporate universities: Drivers of the learning organization. Routledge,
2014.
Rasmussen, Einar, and Mike Wright. "How can universities facilitate academic spin-offs? An
entrepreneurial competency perspective." The Journal of Technology Transfer 40, no. 5 (2015):
782-799.
Rhéaume, Louis, and Mickaël Gardoni. "Strategy-making for innovation management and the
development of corporate universities." International Journal on Interactive Design and
Manufacturing (IJIDeM) 10, no. 1 (2016): 73-84.
Villar, Cristina, Joaquín Alegre, and Jose Pla-Barber. "Exploring the role of knowledge
management practices on exports: A dynamic capabilities view." International Business
Review 23, no. 1 (2014): 38-44.
Wallker,Peter2009.“Thecorporateuniversityuniversity”.http://edition.cnn.com/2008/
BUSINESS/10/31/execed.apple/index.html?iref=24hours
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