Abu Dhabi University

College of Business Administration

Master of Business Administration Program
Strategic Management in Global Environment
Fall Semester A Y2015-2016

Apple Inc.: Performance in a Zero-Sum

World Economy - Case Study

Submitted to: Dr. Ali Abu Rahma

Prepared by: Salma Yassin ID # 1040503

Contents
1. Summarize the story of Apple. ................................................................................................... 4
2. Describe Steve Jobs entrepreneurial characteristics and please provide examples. ................ 5
3. Describe what, how and when Apple did the right thing and what, how, and when Apple did
the thing right. (i.e. provide a discussion of Apples strategic strategies and operational/
competitive strategies). .................................................................................................................. 6
4. What should Tim Cook extrapolate and why?............................................................................ 7
5. Address John Tarpeys concerns. ................................................................................................ 8
6. References: ................................................................................................................................. 9

1. Summarize the story of Apple.

Answer:
The story of Apple Inc. could be a very long one. It is needless to say that Apple Inc. is currently
the world leader in computer products. The company was initially started as a one dealing in
computer hardware and software. But nowadays, the company is into other products also like
Apple Ipods, Apple Watches, Apple TVs and a host of others. The success story of Apple was
possible only because of the vision and outlook of Jobs who turned the company on its head in
the tough times. There were several controversies regarding some of the decisions taken by
Jobs sacking of few of the employees in the beginning of his tenure. But, this was done to make
sure that the right people were put in the right job (Kiss Metrics, 2013).
After that, Apple did not have to look back. It spread its business in every corner of the world
like the Asia-Pacific Region, UK, Middle East and all other parts of the world. This has been
possible because of the belief of Jobs that one day Apple will lead the digital market all across
the world. There have been several innovations from time to time by the company in terms of
product diversification. This has helped Apple to earn more revenues and being considered as a
complete electronics company and not just one; dealing in computer hardware and software.
Today, Apple Inc. is considered as one of the benchmark electronic goods manufacturing
companies all across the world. The company has also been recognized as one of the best
employers to work with worldwide.

2. Describe Steve Jobs entrepreneurial characteristics and please

provide examples.

Answer:

Steve Jobs was perceived as a very enthusiastic and charismatic leader by his peers and
subordinates in the organization. He was demanding and aggressive in his approach. These are
the very basic qualities of a quintessential leader like Jobs. Under him, Apple Inc. took various
controversial decisions that ultimately turned out to be fruitful for the company. It was because
of his exceptional leadership qualities and positive outlook towards work that he was bestowed
with the honor of Executive of the Decade by Fortune Magazine in 2010. He was often called
as the Henry Ford of the modern business world. As for example, Jobs communicated with
Steve Wozniak who was taking on an interesting task of converting his simple TV monitor into a
future computer. Both of them designed the Apple I computer and the first prototype was
manufactured.
A local electronics dealer named Byte Shop was interested in it and it placed order for 50 Apple
I computers worth $25,000. The purchase order was taken to Cramer Electronics for placing
order for the parts that were required to assemble the 50 computers. The local credit manager
was reluctant to pay the money but Jobs convinced him that if he provided the parts on a term
of 30 days, then the computers would be built by Jobs and delivered within that time frame. He
would receive the money and pay that to the credit manager right then. Jobs finally made it
possible and earned sufficient profits which led him to future innovative approaches to
computing. This incident shows the tenacity, sincerity and self-confidence that Jobs possessed
as a persuasive leader.

3. Describe what, how and when Apple did the right thing and what, how,
and when Apple did the thing right. (i.e. provide a discussion of Apples
strategic strategies and operational/ competitive strategies).

Answer:
Operation and strategic works are both equally important for sustaining a successful business of
the company. Doing the right thing refers to the effective leadership and strategical work to
guarantee possible growth in the far future. Doing the thing right refers to the management
efficiency and operational work to make the greatest possible current profit.
In order to attain growth and sustainability, every organization should formulate the right kind
of strategy and set the right objectives. The right thing in this context refers to the right
strategic moves taken by Apple which has ensured its success in the long run. As for example,
Jobs understood very early that in order to gain competitive edge over the rivals, Apple would
have to implement product diversification or else the competitors would match up to its
existing business of hardware and software.

Therefore, Jobs took strategic decisions to produce other electronic devices like Apple TV,
Apple Watches, Apple Ipods and others. This change management strategy has paid off. Apple
is still the industry leader. This is one of the major strategies which were foreseen by Jobes and
now his legacy is being continued by his successor Tim Cook. Other competitors are finding it
tough to compete with the global giant (Smith, 2012).

4. What should Tim Cook extrapolate and why?

Answer:

In 2011, Jobs was granted a medical leave due to his ailing health condition. However, he
continued to hold the position of CEO and took the strategic decisions. Tim Cook was
designated the Chief Operating Officer and he was in charge of the day to day activities of the
organization. In this regard it might be said that Cook held his office very responsibly and he
was even awarded for his performance in absence of Jobs. Cook had been associated with
Apple since 1998 and he held various responsible positions in other organizations also.
Therefore he is the right person to carry on the legacy of Jobs as the present CEO of Apple Inc.

It is the responsibility of Cook to promote the values that have been put forward by his
predecessor. He should use his own genius to carry on the business in right direction but should
in no way undermine the principles and strategies that were formed by the mentor of Apple
Inc, Steve Jobs. But, it is quite evident that if there was ever a person who could fit into the
shoes of leader Jobs, it would be Tim Cook and nobody else. He has already proved his mettle
at his held position and is looking to take the company ahead in the right direction.

5. Address John Tarpeys concerns.

Answer:

John Tarpey happens to be a senior financial analyst of a securities company. He was entrusted
with the duty of analyzing Apples balance sheets and income statements to determine the
financial position of the company. He had to make a recommendation in which there was
confusion as he was undecided on whether to advice the clients to purchase, hold back or give
away the common stock of Apple. The main concern was the future of Apple. He was
thoughtful about the fact that Apple has been totally dependent on its mentor Steve Jobs.

At that point of time, Jobs was going through a critical health condition and it was feared that
he might not be able to continue with his current position and there needs to be a succession
plan for an able person to fit into his shoes. Besides this, another concern for Tarpey was that
the rivals were coming up with competitive products very fast and how long could Apple hold
on to its leading position in the market. But, Jim Cramer of Mad Money was still vouching for
Apple as the leader. The confusion was whether to purchase more stocks of Apple during that
time or to sell them off in order to get the maximum profits since the stock prices were still high
as the company was performing well and still leading the industry.
It is essential that Apple continues to grow to remain a strong competitor in the industry.
Tarpey should advice shareholders to hold their current stocks. If company continues to grow,
shareholders would increase in value.

6. References:

Kiss Metrics. (2013). 7 Key Strategies That You Must Learn From Apples Marketing. Retrieved
from kissmetrics: https://blog.kissmetrics.com/7-strategies-apple-marketing/
Smith, D. (2012). Apple Without Steve Jobs: 9 Things CEO Tim Cook Is Doing To Move Forward.
Retrieved from ibtimes: http://www.ibtimes.com/apple-without-steve-jobs-9-things-ceo-timcook-doing-move-forward-700965