Case study

Tim Cook Polishing Steve Jobss Apple: Really?

Apple is the company and case of our lifetime. Its story is full of adventure, entrepreneurship, teamwork, legends, and leadership. The story has been told in books, most recently and successfully Steve Jobs by Walter Isaacson. The book was turned into a movie starring Ashton Kutcher as Steve Jobs, and the firms history, and more specifically his departure and returning to the firm, has become common knowledge as well as management folklore.

Much has been made of Jobss notorious micromanaging of his employees and his aggressive and demanding personality, and people who have worked for Jobs over the years have had mixed reactions to his leadership style. Some call him temperamental, aggressive, tough, intimidating, and very demanding. He was known to verbally attack people who were not meeting goals and expectations. Many employees have admitted a fear of encountering Jobs while riding in the elevator, afraid that they might not have a job when the doors opened a practice that became known as getting Steved. Yet employees who performed to expectations were well rewarded. Many who feared him also had great respect for him, as he inspired loyalty, enthusiasm, and high levels of performance through continuous learning, innovation, and change. Many people believe that the reason Apple has had its continued, incredible turnaround since the late 1990s was due to the return of Steve Jobss role as leader of the company. However, Jobss health deteriorated, and everyone wondered what would happen when he passed away. Tim Cook was inserted as CEO while Jobs was still alive.

Passing the torch from the entrepreneur that started a business to a person hired into the business can be very difficult. Settling into the role of CEO in 2011 in a firm that once took on the personality of its temperamental leader Steve Jobs, Tim Cook radiated tranquility in its hallways, a reflection of his calm Southern demeanor.(1) Commonly stopping to chat or take selfies with employees, Cooks easygoing and polite personality has trickled through the corporate ethos.(2) A quieter leader than his predecessor, Cook is also said to be more thoughtful and data driven in his decisions. Cook has also added new talent to Apple with a workforce that has nearly doubled since his appointment.(3) Yet there seemed to have been a price paid for a less dynamic environment, a less vigorous firm.

Under Tim Cooks watch, Apple introduced an iPad Mini. Although it was successful, it was not the breakout hit expected of Apple products. Jobs himself once said he did not like the mini devices that other companies sold to try to beat the original larger-size iPad. In response, Apple stock languished. By the summer of 2013, Apples stock was down by as much as 40% from its record high due to concerns over lack of new products.(4)

The most difficult moment in Cooks tenure was when the new Apple Maps app for the iPhone was released and did not work correctly. Cook took over for his lower-level executive. His first move was to fire the Apple executive. His second move was to issue a public apology to iPhone owners.

With a lineup of mature products, Apples stakeholders were looking to Cook for the type of innovation that was once common during the Jobs era. Apples release of the iPhone 6 and 6 Plus brought the firm into the large-screen smartphone market that was previously dominated by Android phones from firms such as Samsung and Motorola, yet market and expert response to the product was disappointing.

Even though this is Apples first attempt at building large phones, its not breaking new ground in fact, it feels more like the company is catching up than innovating.(5)

Cooks biggest leap toward innovation was bringing the Apple Watch to market, a new product category for the firm. To make the Apple Watch a reality, Cook decided to reorganize the way Apple operated. Previously, Apple was split into specialized groups devoted to hardware, software design, marketing, and finance, working independently and sharing minimal crossfunctional information.(6) Under Cook, these lines have been blurred through the formation of interdisciplinary teams. In an effort to boost collaboration and improve product design and functionality, engineers now sit with marketing and finance staff in product road map meetings.(7) The result? The Apple Watch was on pace to surpass the iPhone in first-year sales(8) yet sales of the new Apple Watch plunged by 90% since its opening week.(9)

Is this a sign Apple have once again lost their way without Steve Jobs? . . . Apple have always pushed the envelope in the past, dropping the floppy drive, dropping legacy ports in favor of the then relatively new USB, alienating nearly all previously available accessories, and dropping the optical drive. With product lines bloating and innovation a thing of the past, how long can Apple live off the halo effect of the past? Where are they going?(10)

Yet Cook seems to have proven the pundits wrong. With 6 years of CEO experience under his belt, Cooks imprints can be seen throughout the firm. The shift in culture, an expanding employee base, and new product lines can be attributed to Tim Cooks new vision and healthier firm performance. The Company posted all-time record quarterly [4th quarter, 2016] revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter.(11)

Cook has heard the critics and thinks Apple is primed for sustainable success. Innovation is alive and well. . . . If there were any doubts, I think that they should be put to bed.(12)

questions : the answer needs to be one page

Question 1 : Which Leadership Grid style(1, 1) impoverished, (9, 1) authority-compliance,

(1, 9) country club, (5, 5) middle-of-the-road, or (9, 9) teamwould Jobss and Cooks critics say they used?

Question 2 : Was Jobs considered a transformational or transactional leader?