Question

Apple Headquarters, Cupertino, California

Apple has become synonymous in the tech world with innovation. They are known for releasing new technologies, and then constantly updating and upgrading those technologies. They are also known for being a company of strong leaders and strong leadership. On January 9, 2007, Apple’s then-leader and CEO Steve Jobs changed the world when he unveiled the first iPhone. Featuring a 3.5-inch screen and a 2-megapixel camera, the 4GB model cost $499. Just a year later, the iPhone 3G was released. The new model connected to the faster 3G-based network, offered more storage, and included built-in GPS, all with the 8GB model costing only $199. But the biggest change was the introduction of “location services” which Jobs predicted would be a very big deal for the iPhone. The following year, even more upgrades were released. The trend of faster processing for lower cost continued. It became clear that the iPhone was an ever evolving device, being redesigned with each iteration based on customer wants and needs. The iPhone 4 was released in June 2010 and introduced FaceTime video chat and the first high-resolution “Retina” screen. The iPhone 5, released in 2012, was slimmer, faster, and featured the largest screen yet. Tim Cook, Apple’s current CEO, called the iPhone 5 “the biggest thing to happen to iPhone since the [original] iPhone.” The iPhone 5 may have been the biggest change to iPhone at the time, but it wouldn’t be the last. Next came the iPhone 5S, 5C, 6, 6 Plus, 6S, 6S Plus, and most recent to join the family, Apple released the iPhone 7 and 7 Plus in September 2016. The release of the iPhone 7 sparked controversy in the tech world. The new model is similar to the 6S but with a few changes: longer battery life, better camera, faster processing, removal of physical home button, and protection against water. But the big change that left some people wondering what Apple was thinking: removal of the headphone jack. Not only did Apple’s leaders have to first decide on such a change, but then they had to stand on stage and defend it. What leadership trait did it take to stage on stage and face a room of critics? How important is charisma for a leader in such situations? Apple’s marketing chief Phil Schiller said the decision to remove the analogue headphone jack was motivated by “courage.” In devices as small as a mobile phone, space is limited and by removing the jack, extra space was freed up for new technologies. But “courage” meant nothing to customers as they worried how this change would affect their music listening experience prior to release of the new model. Apple may have shaken things up by removing the jack, but they didn’t change the listening experience completely. Just as previous models came with a pair of EarPods, the iPhone 7 includes a pair of Lightning EarPods which connect via the Lightning port rather than the traditional 3.5 mm jack. The main change to the user experience is that the EarPods cannot be used while the device is charging. Apple seems to be leading customers closer and closer to a wireless world. The choice to remove the headphone jack from the iPhone may have been progressive, but it was just one in a long line of risky decisions made by the leadership at Apple. In 2008, the MacBook Air was released without a disc drive. This was a gamble as digital download was not the main choice for software installation at the time. But it was a gamble that paid off as Apple was able to design thinner models, which saved costs in packaging and shipping. Customers embraced the change as well, and by 2013, Apple had removed disc drives from almost all of their new laptop and desktop computers. The removal of the disc drive should have foreshadowed changes to come, but when Cook announced the removal of the headphone jack for the iPhone 7, the complaints flooded in. Leadership had a decision to make. Were the benefits of removing the jack worth the potential risk of alienating some existing customers? The decision they ultimately came to was “yes,” since the iPhone 7 was released sans headphone jack even after customers submitted petitions against the change. A company’s ability to succeed when introducing big changes, such as the removal of a widely used

technology, depends on the success of its leaders.

1. What leadership traits are needed when managing a company such as Apple?
2. How do you effectively lead and motivate your employees to constantly put out innovative products?
3. As Apple plans for the next iteration of the iPhone, what will leadership need to do to insure continued success? Would Directive, Supportive, Participative, or Achievement-Oriented leadership be the best approach for Apple? Why? If you were in charge of leadership at Apple, what would you do?

Answer 1

Q. What leadership traits are needed when managing a company such as Apple?

A. A company such as Apple requires a charismatic leader who can influence the followers and encourage their creativity by gaining their trust and loyalty. For a company operating on such a large scale and having consumers around the world, the leader of the company needs to have the following traits:

Good communicator - The company needs a leader who can convey what the company has planned for its future in the form of objectives and goals and how the company seeks to reach those objectives through the implementation of the strategies. When a leader can convey his vision for the company to his followers, it will automatically help in boosting the morale of the employees who see their growth in the growth of the company.

Innovative - In today's world, most of the companies are trying to develop their own Unique Selling Point or USP to get an edge over its competitors. In such a scenario, Apple, being the pioneer in the industry has to take extra measures to be innovative and refrain from being just another smart gadget or laptop in the tech industry. This requires heavy investment in research & development. Also, the company needs to encourage its employees to come up with innovative ideas and creative solutions. Only a leader who encourages innovation can lead a company such as Apple in the competitive industry.

Resource organizer- For such a huge company, the resources amount to a large scale. It is difficult to manage each of them but a true leader would meticulously plan, organize and form strategies that would help in the proper allocations of the resources for their intended use. He foresees how each resource can help in the further development of the company and therefore, manages them effectively with great efficiency.