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Managing for the future: Apple Inc - Essay Example

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Managing for the Future: Apple Inc Table of Contents Table of Contents 2 1.0.Introduction 3 2.0.Apple 2003 – 2010 4 2.1. Technology 4 2.2. Social change 6 2.3. Globalisation 7 3.0.Scenario development 2018 – 2020 9 3.1. Technology 9 3.2. Social change 10 3.3…
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Managing for the future: Apple Inc
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Download file to see previous pages Between 1994 and 1997, the company experienced severe financial losses and record-low stock prices, a scenario that was corrected with the re-instatement of Steve Jobs as the CEO in July 1997 (Siegel & Gibbons, 2009). Currently, the company boasts of being the most valuable company in the world with one share valued at US$ 605.38, and a market capitalization of US$ 566.54 billion (WSJ, 2012). Apple’s rise to the top has been attributed largely to the vision of its iconic CEO, the late Steve P. Jobs. Steve Jobs had an unorthodox yet effective management style, in so far as Apple Inc. was concerned. According to Charley (2011) under Steve Jobs’ Apple organizational culture was characterized by the CEO’s micromanagement, staff recruitment focused on expertise rather than experience, assigning of directly responsible individuals for each Apple project, inter and intra-organizational secrecy that ensured employees were only aware of their areas of the Apple campus, and fear of the CEO. In the first part, this paper shall audit the performance of Apple’s management between 2003 and 2010 with regards to the areas of technology, social change and globalisation. In the second part, the paper shall assess Apple’s competence to manage in these three contextual environment areas in the next seven or so years (2018 - 2020). In the final part, the paper shall draw conclusions based on the requirements projected to be of importance in the future against the management competence that has been analysed. 2.0. Apple 2003 – 2010 2.1. Technology The years 2003 to 2010 could arguably be categorised as Apple’s greatest revolutionary years to date that saw the emergence of the iPhone, iPad, revamping of the iMac and iLife suite of products, App Store, iCloud and so on. Apple has a rich history of pioneering in developing cutting edge technology (Siegel & Gibbons, 2009). The company has put technology and product design at the heart of their competitive advantage. For this reason Apple has ensured that it owns and controls the primary technologies behind all its products. To make its research and development on technology and product design more affordable, the company deliberately reduced the breadth of their products portfolio to focus on creating fewer but complete solutions. This way Apple was able to focus on developing only those products and services that emanate from its core competencies. According to Prahalad and Hamel (1990) such core competency based strategies are bound to sustain a company’s competitiveness well into the future. Apple obsesses a lot on the design and appearance of its products such that it seeks to sell not a product but an experience. This is not merely an organizational mantra but a philosophy that has been supported by the company’s investment in technology and product design. Apple is among the few technology companies that have control over both the hardware and software used within its products. This attribute has enabled Apple to deliver cutting-edge and more tightly integrated user experience than its competitors. For example, a report by Hyundai Securities in 2011 stated that Apple’s dominance in the tablet segment as largely attributable to the difficulty other tablet manufacturers such as Samsung have had in establishing a standard operating system and securing content (Hyundai Securities, 2011). ...Download file to see next pagesRead More
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