Did Apple Hire

The Right CEO ?

Presenter: Anum Awan
Introduction
oApple top Tech Industry for over a decade now.

oShares touched the $600 price mark early in March this year has made it a
$560 billion business (Kessler, 2013)

oApple Touts Itself as Big Job Creator in the U.S., 2012

oA portfolio of consumer and professional software applications.

oSince the demise of the greatest innovators this world has seen and
founder of Apple, Steve Jobs in October 2011, Apple has become the
single most speculated company in the industry.
Scope of
Study

oWorking as a research consultant hired by Apple, I have to
mine for data and probe deep into Tim Cooks leadership
and management style in contrast with Steve Jobs.

oMy study of the issue at hand will probe deep into the
leadership styles of both Steve Jobs and Timothy D. Cook, a
reflection of each on their business targets and
accomplishments as well as an insightful look at the
leadership models and comparison of similarities and
differences between Jobs and Cooks
Leadership Models
1. Level 5 leadership model.
o the drive from good to great and
a continuous effort to sustain that
greatness
2. Transformational/charismatic
o authority, command and a legal
system
3. transactional leadership
o social exchange process where
the leader clarifies what the
followers need to do as their part
of a transaction
Methodology
oQuantitative research
oFocused mainly on contrasts and
comparisons between management
styles of Steve jobs and Tim cook
o Sources includes:
e-journals, electronic sources, articles,
research papers, apples website as
well as books written on Steve jobs.
Limitations of the study
oLack of qualitative data
oVariables that might have been missed
oPossibility of a personal bias
SWOT Analysis
Steve
Jobs
Strengths
In-house creation of its core internal
components for computers
Pixar - first computer animation
1984 launch of Macintosh
Innovative products and designs
Highest stock price in personal
computer industry

Weaknesses
High priced products
Spent less time with shareholders
and paid no dividends,
Download and connectivity problems
with iPhone 4
In-sourcing
Closed proprietary approach
Opportunities
Emerging product markets
Cloud computing
Expand sales globally, open more
apple stores, more acquisitions.
More apple stores, more acquisitions
More apple stores
More acquisitions
Threats
Strong competitive pressure from
Samsung, and Google, limited
customer experience because of its
iOS
Limited to three colors
SWOT Analysis
Tim
Cook
Strengths
Ultra-efficient supply channels
Product ecosystem
Leading professional and software
consumer apps
WWDC, June 2013
Weakness
Decreasing market share
Defects of new products
Long-term gross margin decline
Smart phone industry market
share 2012 : iOS - 36.3%
Andriod - 53.4%
Opportunities
Relatively healthy relationships
with shareholders
I panel
Expansion of the ecosystem
Wearable devices


Threats
Android vs. iOS growth
Price pressure from Samsung
Breached IP rights
Product choice limited to three
colors
More apple stores
More acquisitions
Increased attention to CSR

Leadership at Apple

About Steve Jobs
o very detail oriented
o 'telling' or autocratic
o Perfection Seeker
o transformational leader
o Steves Achievements for Apple
o Shares had hit the $200
o By 2009 the company was reported
holding close to $9 billion in cash
o Innovation
o created a disruptive environment
o Using impression management
techniques (Harvey, 2001).
o Reality distortion field

Steve Jobs
Steves Leadership Style
oInfuse enthusiasm and motivation,
sometimes unwarranted, into his
teammates and employees
oJobs' leadership style included stimulating
creativity by challenging his team
oHe pushed them to realize their true
potential and perform to their best, his
techniques often left his employees
insecure.
oReduced subordinates to tears, and fires
employees in angry tantrums
oMy job is to not be easy on people. My
job is to make them betterand to take
these great people we have and to push
them and make them even better, coming
up with more aggressive visions of how it
could be.


Steves Leadership Style (cont.)

oRefused to conform to the implicit, moral
or ethical dimension of this leadership
style.
oA transactional leaders traits
oAs "to pull things together from different
parts of the company and clear the ways
and get the resources for the key
projects".
oBelieved in creating and controlling the
demand side of the business
oHis products simple yet efficient
oA competent leader, an effective manager
and A very capable individual.
oJobs used technology and collaboration
to drive Apples competitive edge and
allowed no committees



About Tim Cook
oTim cook is a true apple veteran
oTook charge as a CEO on 24th august 2011

Tims Achievement For Apple
oSold the benefits of Siri
oSevere Reaction to the bungled iOS 6 maps app; Cook publicly apologized for
the map
oMore open environment
oSteve jobs playbook
oIn his 4s launch presentation he didnt change the plays
oElements of passion and enthusiasm
oblow away moment
Tim Cook

Tims Achievement For Apple (cont.)

oTwitter friendly line
oIPhone 5 was apples fastest selling phone ever
oCook filled his grid with people, with the unification of
hardware and software design, of iOS and OS X software, of
all internet services, and with core technologies.
oAnnounced the opening of a retail store in berlin, a new
addition to the 407 stores around the world in 14 countries
oApple reached a staggering 50 billion download mark
oiOS 7 is seen as exciting but an unfinished software update
oRushed the announcement
oSliding market shares


Tims Leadership Style

oHuge importance on giving the customers a delightful experience
oCollaborative, creative, passionate and driven individuals are what make a
good company great and asserted that apples leadership was and will
always be supportive and readily welcome such people in furthering their
ideas
oMore relaxed and approachable personality, and prefers attracting no
attention. His product announcements are not one-man shows, but
presentations shared with other apple executives

Hiccups of the new CEO
oiOS 6 maps blunder
oiOS 7 is seen as exciting but an unfinished software update
oRushed the announcement
oSliding market shares

Corporate Social
Responsibility
oReduced the amount of greenhouse gas
emissions per dollar of revenues by 21.5%
oApple reports its environmental impact on
product by product basis
oApple has increased its products' efficiency
to the point where all of its electronics
produce no more CO2 in an hour
oComprehensive recycling program
oGreenpeace praised apple for exceeding its
70% global recycling goal in 2010

oIn 2011 green peace guide to greener electronics, apple ranked fourth
out of 15 electronics makers
o Apples manufacturing facility in china in march 2012
oThat apple has no legal liability for what happens in Chinese factories
owned by separate manufacturers
oApples CSR is not the lack of information, instead an over load of
information thereof.
o According to the tech-giant, it became the first technology company to
join the fair labor association (FLA) in 2012. The company conducted 393
audits of their supply chains, 72% more than in 2011 and achieved on
average a 92% compliance with a maximum 60-hour work week

Findings

oUnlike Steve Jobs, Tim Cook is mostly considerate to his employees.
oTim Cook, a great believer of teamwork and yet allows enough
liberty to let individual talent flourish.
oApples new CEO prefers keeping a low profile and working
backstage while lending his support and input to new idea
generation and product and service process at the same time.
o It reflects his level-5 leadership skill to exercise modesty and
professional will in the favor of the company.
oAlthough, there has been an evident decline in company profits,
Cook is still making amends and trying to meet the market
expectations from the fourteen year veteran.
o His attempt at launching the iPad mini to compete its flagship iPads
is a perfect example of a leader who understands the risks of
cannibalization that Apple faces from its competitors.

Conclusion &
Recommendations

o Cook has already proven that he is aggressive about
international sales.
o Apples needs to built the artificial intelligence and big data
resources to continue to put out a truly integrated product
o Faces stiff competition in each and every facet of its
ecosystem and despite outstanding operations; the
company wont be able to maintain margins with its current
offering.
o Steve Jobs was an efficient and truly successful leader.
o both the leaders that require improvement.
o More acquisitions and strategic alliances can work to bring
Apple greater market share along with innovative and
creative product.
o Apple also needs to expand the color pallet of its phones.