Steve Jobs was Apple’s co-founder and iconic CEO. A number of observers feel that much of Apple’s phenomenal success, especially after 2000, is a product of his “genius” and leadership. Because of this and a leadership style that varies significantly from his predecessor’s, some have questioned Tim Cook’s ability to succeed Jobs as Apple’s CEO. Yet, in 2014, several years after assuming the CEO position, Apple had what Tim Cook referred to as an “unbelievable year” given that the firm sold 200 million iPhones and generated $200 billion in revenue. Apple’s stock price increased by 65 percent, and the company’s market value reached more than $700 billion, the largest ever of any U.S. firm. At the time, Apple’s market value more than doubled that of Microsoft. Prior to assuming the CEO position, Cook’s primary experience had been as manager of operations; his success in this domain led to his appointment as COO prior to assuming the CEO role. Interestingly, a significant percentage of Apple’s sales flow from products developed and introduced to the market under Jobs’ leadership. As such, the jury is still out on Cook, especially with regard to developing marketplace successes in the form of new products, tasks at which Jobs excelled. Jobs and Cook have different leadership styles. Some thought Jobs was ruthless, impulsive, and almost maniacal in developing new products and finding paths through which they became marketplace successes. Cook’s knowledge and skills do not make him an expert in product development, design, or marketing. Because of this, he delegates those responsibilities. As the firm’s key strategic leader, Cook tries to buffer and maintain Apple’s corporate culture that developed largely during Jobs’ tenure. Thus, the emphasis remains on innovation that is valued in the marketplace. To support this emphasis and to nurture the firm’s all-important culture, Cook hires talented individuals to join the top management team who blend well with the culture. He has made some very good hires, such as Angela Ahrendts who now heads Apple’s very important retail stores. As a leader, Cook is less emotional in his style and actions compared to Jobs. Some refer to this aspect of Cook’s style as a “measured emotional approach to leadership.” He empowers his top management team members in ways that allow each of them to manage the functional area for which they have responsibility. He also encourages each team member to adopt a longrun perspective while leading.

Questions

1. What makes a CEO’s job so complex? Use the challenge Tim  Cook faces as Steve Jobs’ successor to provide examples that  support your answer.

2. Tim Cook came from Apple’s internal managerial labor  market to succeed Steve Jobs. In your view, was using the  internal managerial labor market the best approach to follow  when replacing Jobs? Use materials in the chapter regarding  the internal and external managerial labor markets to explain  your answer.

3. Given their different leadership styles, describe the differences  you see in Apple’s culture under Tim Cook’s leadership compared  to the culture in Apple when Steve Jobs was CEO.

4. Using information in this Mini-Case as well as additional  materials available to you via searches, how do you evaluate  Tim Cook as a CEO? Is he an effective strategic leader  or not? Use examples from the chapter’s discussion of  “Key Strategic Leadership Actions” to justify your answer  to this question.