The SWOT Analysis - Assignment Example

Assignment 2: Final Reflective: Analyzing Theories Task Complete a SWOT analysis to contrast two systems of innovation for the organization in your case study (Apple Computer Co.). The SWOT analysis is an extremely useful tool for identifying potential strengths, weaknesses, opportunities and threats facing the organization. We shall apply a SWOT analysis to two systems of innovation associated with Apple to contrast them. For this, I selected innovation in hardware product design and contribution to the digital lifestyle revolution. I have summarized the main points below. I selected these two because they show good contrast in two areas of innovation. Apple also leads in user interface innovation and education technology but these would probably show characteristics similar to the first system of innovation I selected. 1st system of innovation Hardware product design 2nd system of innovation Digital lifestyle revolution Strengths User friendly Out of the box experience Beautifully and elegantly designed Seamlessly integrated Quality and value Special all-in-one options Weaknesses Poor marketing Perceived to be expensive Limited expandability options (except the PowerMacs) Strengths Has led and defined the revolution Has top-selling products such as the iPod, iLife software suite and leading music iTunes store Weaknesses No major weaknesses because it has led the way successfully. Despite this, it doesn’t have the financial and marketing muscle as many other leading companies. Opportunities Catering to low end market Encouraging dissatisfied Windows users to switch Threats (Always from) low cost producers Computing capabilities on non-computer devices Renewed threat from mac clones Opportunities Remain abreast of latest technological developments an socio-cultural environments Threats Competition is building up with the release of similar products and services from other companies. Task 2: From the above comparison, select the system that you have decided to apply in your case study and give reasons for your selection. Be sure to include a detailed analysis of the system that you are selecting. I have decided to apply the first system of innovation because its history is as old as the company itself and the points characterize the company well. For example, at the outset, the invention of the mouse and the graphical user interface defined how we interact when using computers, that is now taken for granted. Apple excels at producing sophisticated, user-friendly, and excellent and beautifully designed products but has always lacked the ability to market itself. As much as Apple is identified with innovation and a better technology, it is also well known for missing out on opportunities. For example, Apple had a monopoly on the graphical user interface for a good ten years but was unable to exploit that to its competitive advantage. In fact, its market share is a very poor reflection of the real worth of the company’s innovative and leading technology. It doesn’t deserve to have such a low share. This shows that it is not enough to be different and be better in the market economy, but also necessary to play well with the competition. That said, the strengths of Apple in terms of the products it designs are undeniable and unmatched. The attention to detail that Apple pays in its product design makes them phenomenal products instead of merely functional. Its innovation and reputation is worthy of much admiration. Apple users would certainly testify to this because they are found to be more satisfied and admirable of the Macs than are users of any other personal computers. However, the fact that Apple products, not to mention the operating system, are imitated by others is also testimony of the superiority of the Macintosh. To illustrate how Apple has taken advantage of an opportunity: The decision to adopt Intel processors was another major step that has propelled the company forward. It allows the current Intel based Macs for instance to dual boot natively into both the Mac OS and Windows. This is something that Windows machines cannot do. Apple knows how to take advantage of technology. “Apple is like a Japanese zaibatsu” (Perili Alesandro, 2005) On the other hand, this move also opened up a potential threat to the company in selling hardware tied to its operating system because technically it has become possible to run the Macintosh operating system now natively on non-Apple hardware. The Apple vs. Psystar (2008) case is an example of the potential threat that Apple faces. The latter attempted to sell a hacked version of the Mac OS X operating system to run on “a low-cost high-performance computing platform” based on the OSX86Project. (Jade, Kasper, 2008) Task 3: Apply the system to the organization for individual and organizational innovation leadership processes. Also, add information on the systems processes and theory with culture and learning organizations. Following the decision this year (2009) by Steve Jobs to take six months medical leave due to his poor health, Roger Kay, president of Endpoint Technologies Associates, said Jobs’ absence would be notable because “Steve Jobs is more critical to Apple’s operations than most CEOs are. Arguably he embodies Apple. He is Apple,” Kay said (Macworld News, 2009). This shows that Steve Jobs’ role in the leadership process is not only central but also more significant than in other companies because he is identified very closely with Apple. Indeed he co-founded the company in the late 1970s. Although actual product designs since the G3 iMacs debuted late last decade through to the current lines of computers plus the iPOD and iPhone product lines are the genius of Jonathon Ives, Steve as the CEO is also well known for his creative ideas. “In addition to his value as an innovator and a ‘tremendous motivator,’ Jobs’ skills at negotiating with companies have been invaluable for Apple in the past few years”, said Andy Hargreaves, an analyst with Pacific Crest Securities. For example, “Convincing a company like AT&T to partner with Apple on a product unseen, convincing the music industry that this is the wave of the future and they have to get on board” were both significant accomplishments, he said (Macworld News 2009). Learning is thus established through experience on one hand and an active research and development (R&D) strategy on the other. Whilst many other computer firms have slashed expenditure on R&D during these current difficult economic climate to focus instead on minor improvements to existing product lines, Apple is a company that is founded on innovation and continues to actively pursue R&D. The other component for a technology company to solidify the learning process is a product-oriented culture. Other computer manufacturers also have experienced engineers and talented management but what differentiates Apple is the way it has made all parts work great together. This is the binding force that enhances the overall competence of each and makes it possible to produce something that is more remarkable than can be achieved with parts working independently or without cohesion. The cultural success of Apple is also evident from the loyalty of its customers. Apple’s customers are very loyal to the brand and enthusiastic users of its products. This cannot be said of many other companies. “But there is no question that Macintosh users are by far the most passionate advocates for their products in the technology industry.” (Krazit, Tom, 2007) Task 4: Analyze and evaluate the challenges and their solutions when leading and managing innovative change processes in a multicultural and diverse organization. Apple is an international company in that it does have some Apple stores in other countries and strategic links with other international companies and parts suppliers. But it is therefore not known so much for its multicultural aspects. We shall nonetheless explore some aspects of the Apple Store enterprise. As for diversity, we shall concentrate on the diversity of Apple’s product lines because relatively recently in its history, Apple has diversified from producing computers alone to related devices. What characterizes Apple’s approach though is the way it has demonstrated seamless integration across all its products. In other words, the fact that all its products are efficiently capable of being inter-operative means that they easily work well in combination. No other computer company can claim the same for its own products. The challenges Apple has faced in achieving this began perhaps with the failed attempt when Apple introduced the Newton, a personal digital assistant (PDA) in the 1990s. Apple learnt from its mistakes and Steve Jobs, after returning to Apple in 1998, decided rightly to put an end to the Newton and later took advantage of an opportunity to define and lead the digital lifestyle revolution instead. The invention of the iPod and more recently, the iPhone, are remarkable pieces of engineering. But more than this, they filled an important gap in the market. The iPod for example, has become a new standard as a portable music player as the Sony Walkman was in the 1980s. It has changed the way people listen to music. The 1.8 inch hard drive was not invented for the iPod, but it was Apple’s ingenuity to use it to create the iPod, even though it is not the only main technology in the iPod. The credit of course is to Steve Jobs for having the vision to usher in a new era of the digital lifestyle. And, the hardware splendour is complemented by the iLife software suite, which includes flagship products that include iPhoto, iMovie, iTunes, iDVD, iWeb, iiWorks etc. The online iTunes music store for downloading music when established was an entirely new concept that has caught on with tremendous success. With this service alone, Apple reinvented the music business i.e. in the way digital rights are managed, composers sell music and how people obtain songs from the internet. Task 5: Explain the role of ethics and responsibilities in leading innovation and change. Recently, Greenpeace brought out a report ‘HP and Apple’s toxic laptops exposed’ (Greenpeace, 2008), alleging that Apple continues to use hazardous substances in its product range that other companies have abandoned. Apple’s own website does admit to the use of ‘added flame retardants’ but also that it “is actively researching materials with better environmental features…” (Apple) However, the EU Scientific Committee on Health and Environmental Risks dismissed the suggestion that the toxic chemical being referred to (TBBA) is of much concern (and hence it is not even regulated under strict RoHS guidelines). Greenpeace deliberately put out a misleading report about Apple. So Greenpeace “had to lie about their findings, and reported a negative spin about Apple that used clever word play, but was entirely deceiving.” (Eran, Daniel. ) Interestingly, the same article also pointed out “that the most toxic computers in the world are actually made by low cost manufacturers… and [are] far more difficult to recycle properly”. Apple in contrast makes sustainable machines that last much longer. This issue illustrates the role of ethics and responsibilities in leading innovation and change. Apple makes elegantly designed products for its consumers but they must also maintain their commitment to the environment by ensuring that the products are environmentally safe and friendly. In this regard, Apple is no worse than other computer manufactures although it was unfortunately targeted by Greenpeace lately. All computer and television manufacturers share the same ethical responsibility. Rather, Apple has a better track record than the manufacturers of low cost computers especially, who use environmentally unfriendly elements to sell their machines at lower prices. The Sierra Club acknowledges in contrast recognizes Apple as a leader in environmental policy. Besides the environment, innovation and change must also cater to the organization’s own workforce instead of being entirely consumer focused. After all, it is their hard work that is involved in the innovation and change process to manufacture the products. Apple is known to have a strong and dedicated workforce. Task 6: Describe and evaluate the principles and practices involved in implementing the innovative change processes. Amongst other practices, CEO Steve Jobs says that it is “saying no to 1,000 things” so as to concentrate on the “really important” creations (Business Week, 2004). As a principle, this means being able to identify what is promising for innovation and what is not. A leadership that can innovate is therefore one that has the vision of foresight as Steve Jobs has. One of the practices that Apple excels at mentioned before is guaranteeing the ‘out of the box’ experience. The principle is putting the need of the consumer first. Other computer companies have tried to emulate this but the Apple experience is unique. Whereas PC users spend a large proportion of time in setting up their machines, not to mention the time spent fixing it and dealing with viruses, Apple users are accustomed to the ‘out of the box’ and ‘plug and play’ philosophy. The benefit to end users of Apple’s products is the benefit of using advanced technology that surpasses the technology used by the majority non-Apple users in several ways. Apple’s principle is to remain innovative and remain at the cutting edge of technology, to unleash the very latest for its customers. “Because of this dedication to innovation, Apple customers are often the first to benefit from the next technology revolution.” (Appleline) Task 7: Research and analyze how the systems and innovative processes and theories are applied to individual and organizational innovation and change leadership processes. One of the challenges being faced at the present time in the computer world is not so much the invention of new products but making existing products capable of working together harmoniously. That is what defines innovation today. We have already discussed Apple’s success at enabling this. Jim Clemmer, writing on ‘Harnessing the energy of change champions’ mentions one characteristics of a good champion as one who is passionate about the cause or change. And, that the change champions are vital learning leaders for their organization. Steve Jobs is passionate about his company as much as if not more than its customers. But importantly, he is also a vital learning leader for Apple as we have already seen. Evidence of the application of the theory of innovation management would entail the leader knowing what is happening for a start. Furthermore, that all improvement activities are focused outwards, the leader has a rich learning experience, is a well recognized champion, and develops change and improvement by building around the champion and so on (Clemmer, Jim, 2007). Steve Jobs’ experience is an exemplary illustration of such an innovative champion and he has also established a strong management team. Now that he is ill, Tim Cook will take good care of organizational matters in his absence. When asked how to systematize innovation, Steve Jobs replied the Apple is a very disciplined company that has great processes (Business Week, 2004). And, that processes make you efficient. However, “the system is that there is no system”. By this he meant for example that innovation can be initiated in a myriad of ways. This include for instance, “meeting up in the hallways or calling each other at 10:30 at night with a new idea… it’s ad hoc meetings… called by someone who thinks he has figured out the coolest new thing ever and who wants to know what other people think of his idea”. This culture is conducive for innovation to take place and Apple has this attitude. It is this that makes it an innovative company. References Apple. http://www.apple.com/environment/materials/ Appleline. N.d. Why Apple. Apple Line Store. Retrieved Jan. 21, 2009 from http://www.appleline.com.eg/myPage.aspx?id=11. Business Week. (2004). The Seed of Apple’s Innovation. Voices of the innovators. Business Week. Oct. 12, 2004. Retrieved Jan. 22, 2009 from http://www.businessweek.com/bwdaily/dnflash/oct2004/nf20041012_4018_db083.htm. Clemmer, Jim. (2007). Harnessing the energy of change champions. Innovation Tools. Retrieved Jan. 22, 2009 from http://www.innovationtools.com/Articles/EnterpriseDetails.asp?a=265. Eran, Daniel. (2006). Greenpeace Lies About Apple. Sep. 23, 2006. Retrieved Jan. 21, 2009 from http://www.roughlydrafted.com/RD/Home/E83D58B3-10E0-4A9C-8847-BCE665EE235C.html. Jade, Kasper. (2008). Apple finally sues unauthorized clone maker Psystar. Apple Insider. July 15, 2008. Retrieved Jan. 21, 2009 from http://www.appleinsider.com/articles/08/07/15/apple_finally_sues_unauthorized_clone_maker_psystar.html. Krazit, Tom. (2007). Why do Apple customers care so much? cnet news. Dec. 12, 2007. Retrieved Jan. 22, 2009 from http://news.cnet.com/8301-13579_3-9832697-37.html. Macworld News. (2009). Steve Jobs taking leave of absence from Apple (Updated). Philip Michaels and Dan More. Jan. 14, 2009. Retrieved Jan. 16 from http://www.macworld.co.uk/mac/news/index.cfm?newsid=24409. Perilli, Alessandro. (2005). Why Apple and Intel Virtualization Technology will kick ass. Nov. 9, 2005. Retrieved Jan. 21, 2009 from http://www.virtualization.info/2005/11/why-apple-and-intel-virtualization.html. Read More