Introduction
This case focuses on the leadership role between managers and supervisors. It further examines several management factors that impact an organization’s culture and their effects on leadership. Moreover, several topics in the case study were discussed to explore the effects of leadership styles. These topics include moral and social awareness, cultural diversity, civic conscience and ethics, accidental and informal educational experiences, and leadership behavioral tactics and theory. Therefore, the case study explores the role of leadership styles between managers and supervisors in Apple Company towards its success.
The authorized administration techniques represent various ways of using business managers’ and subordinates’ customs. The research provides a fictional representation and challenges in the apple company relating to socio-cultural, economic, political, financial, and environmental concepts affecting leadership’s role in business.
Case Synopsis
The case study meticulously documents the constant two-way interaction between various factors critical to the debate over leadership. The key learning goals in leadership challenge professional assumptions related to socio-cultural, economic, political, financial, and environmental aspects. These aspects impact business leaders, even if the case study concentrates on the Apple Corporation and its executives.
Background
Apple is one of the most recognizable brands in the world. It is a charismatic brand, and the contentious former CEO, Steve Jobs, is often linked with the Company. In his role as CEO, Tim Cook must tackle the problems Apple Inc. has in today’s cutthroat business climate (Barlow, 2017). Apple has a strong culture and a good way of running its business, but it still needs to make changes to make it more competitive.
Although a firm values democratic leadership, Cook is not very adaptable. A top-down decision-making process reduces the organization’s ability to innovate. Leading executives now place a premium on teamwork, open dialogue, and the sharing of information (Barlow, 2017). Creating a learning organization where workers are encouraged to learn, try new things, and develop novel solutions is crucial if the Company has to meet current and future difficulties. Using technology is an essential component that increases the success of the initiatives. Apple’s management may use Kotter’s model of change to guarantee a smooth transition.
However, Apple Inc.’s continued success may be attributable in large part to the Company’s unique culture (Md. Rajibul Hasan, 2018). The consumer electronics business’s guiding principles, fundamental values, and standards for employee behavior are developed and maintained through the corporate or organizational culture of the Company. This case study’s analysis of Apple’s operations reveals a culture where workers are encouraged to contribute to achieving the Company’s long-term objectives (Barlow, 2017). The Company’s core principles emphasize innovation, which is essential for any business operating in the cutthroat IT, eCommerce, and consumer electronics industries (Md. Rajibul Hasan, 2018). The Company’s operations help Apple Inc. realize its goals and vision because of its culture. First, under Steve Jobs’s direction and now under Tim Cook’s, the corporation has been working to improve its culture to make the most of its human resources and thereby increase its global competitiveness. Apple employs corporate culture as a tool for strategic management and global expansion.
Apple’s PESTEL Analysis in the UK
A PESTEL analysis looks at the external or macro factors that affect a company’s operations. Consequently, depending on their institutions and the scope of their analyses, some analysts may refer to it as PESTEL (Md. Rajibul Hasan, 2018). However, conducting a scenario analysis is a necessary first step before launching a new marketing strategy. As a component of situational analysis, PESTEL analysis should be performed at least twice a year to keep up with changes in the macro-environment. As a result, businesses that accurately predict and respond to changes in the macroenvironment set themselves apart from rivals (Md. Rajibul Hasan, 2018). Therefore, this case will refer to analytical tools such as PESTEL and Porter’s Five Forces are used to learn more about the United Kingdom’s external environment.
Political
The political climate indicates a country’s political stability and tax structures. Investment in the UK has been actively promoted since the 1980s reforms. Subsequently, a new administration headed by Theresa May was formed after a referendum in which Britons voted to exit the European Union (Md. Rajibul Hasan, 2018). It remains to be seen what policies she would implement to elevate the UK’s political status outside of the EU.
Consequently, the political destiny of the UK will be determined by the outcomes of the “Brexit” talks, peace talks, and democratic procedures that fall under this category (Md. Rajibul Hasan, 2018). Although the UK provides a relatively secure political climate for business and international investment, specific government actions, like the Investigatory Powers Bill, may harm Apple’s sales due to customer data concerns (Md. Rajibul Hasan, 2018). Along with other taxes like the VAT and the environmental tax, the highest rate for corporations in the UK is currently 20%. Apple items will undoubtedly cost more under a high tax regime.
Economic
The current economic circumstances of inflation, government policies, and the purchasing power of consumers are all reflected in the economic environment (Md. Rajibul Hasan, 2018). These variables affect revenues and earnings because of their effects on consumer spending(Dudovskiy, 2019). Statistics show that the purchasing power of British consumers fell last year (Md. Rajibul Hasan, 2018). Therefore, it contradicts that consumer spending has significantly contributed to growth since Brexit(PESTLEanalysis Contributor, 2018). According to economists, a rise in inflation will negatively impact the pound’s value and consumer spending. Compared to the 2.5% annual increase in December 2016, January 2017’s 0.4% growth rate is the lowest over three years(Dudovskiy, 2019). Consequently, Apple has to keep an eye on the inflation rate, the value of the pound, and consumer spending in the wake of Brexit.
Social environment
The social indicators in the UK clearly show a high level of consumption (Md. Rajibul Hasan, 2018). Furthermore, shifting demographics, habits, and perspectives are all expected to work in Apple’s favor in the UK.
Technology
Incorporating technology demonstrates that the United Kingdom is just as inventive and that technological advancements are driving current and prospective trends and research and development investment (Md. Rajibul Hasan, 2018). Since this is the case, Apple needs to improve its methods.
Legal
The law shows that the UK is a safe place to do business thanks to its robust protections for intellectual property, private property, and contracts and its efficient and impartial judicial system (Md. Rajibul Hasan, 2018). The judicial system is respected, and conflict settlement is among the finest in the world. When bribery and corruption occur, they are dealt with harshly.
Environmental
Environmental considerations are paramount in the UK(PESTLEanalysis Contributor, 2018). Therefore, Apple must consider recycling, reducing pollution, and using environmentally friendly packaging.
Questions
- Does Apple’s top executive have impressive leadership skills?
- How do Political and economic factors affect the apple company?
- What is likely leadership theory in Apple’s Company?
Case Notes
Answer Key
- Apple’s CEO executes a democratic leadership style. Tim Cook, Steve Jobs, Apple’s late co-founder and previous CEO, was renowned for his autocratic leadership style, whereas Tim Cook, Apple’s current CEO, practices and advocates for democracy. In Cook’s opinion, a consensus among the Company’s highest management is essential before making any big strategic choices, moreover, mastering the “silent” skill of leading effectively. Leaders who follow Tim Cook’s example are said to be unobtrusive yet effective. Compared to Jobs’ ostentatious leadership, Cook’s “quiet leader” reputation is striking.
- Political Apple’s ability to maximize profits is central to the Company’s strategy, but this goal is complicated by several political considerations. Issues like government stability, bureaucracy, corruption, press freedom, and home market lobbying organizations, among others, all fall within this category. The actions of labor unions are also a significant political influence on Apple.
- Economic factors; Apple is susceptible to direct and indirect effects from an extensive array of economic variables (Md. Rajibul Hasan, 2018). It considers the market’s general macroeconomic environment, interest and inflation rates, and currency exchange rates, to name a few. The cost of labor and shifts in consumer disposable income also impact the world’s most prominent IT firm by sales.
- The best leadership theory described in this case is transformational leadership theory, more so in the technological sector. One of the best transformative leaders is Steve Jobs. Analysts also often describe Jobs’ leadership style as transformative when evaluating his style (Steinwart & Ziegler, 2018). The legacy of work might influence how we see and discuss transformational leadership to the degree that he ends up serving as a “paradigm case” for one.
References
Barlow, G. (2017). Organization development and leadership: R.B. Reid and the dynamics of success. Leadership & Organization Development Journal, 17(2), 3–8. Web.
Dudovskiy, J. (2019). Apple leadership: A brief overview. Research-Methodology. Web.
Md, R. (2018). Apple Inc. – An Analysis. GRIN Verlag.
PESTLEanalysis Contributor. (2018). Apple Inc. PESTLE Analysis. PESTLE Analysis. Web.
Steinwart, M. C., & Ziegler, J. A. (2018). Remembering Apple CEO Steve Jobs as a “Transformational Leader”: Implications for pedagogy. Journal of Leadership Education. Web.