Apple Inc’s Product Management, Term Paper Example

IPhone Product Management Influence on Apple Inc.’s Success

1.0 Introduction

Business schools discuss various management styles. Every individual leads with their own motto that guides them through the challenges they may encounter when figuring out a task at work, when working in a group project, or when leading members in an organization. What this means is that there exists various management styles in the contemporary work environments. Within each management style, there exist some advantages and disadvantages. However, choosing the perfect management style is dependent on the organization’s culture and goals, and maybe the personality of the leaders present in the organization. It is also common to find a single organization with different management styles, depending on the necessary tasks needing completion, or the needs across its departments.

By definition, management is said to be a process of social influence where a leader seeks voluntary participation from subordinates, with the aim of attaining the goals of an organization. In this context, a leader can be defined as the individual who has the ability to influence and delegate followers towards carrying out various tasks that will attain specific objectives. Contemporary organizations need effective leaders and efficient management styles, given the complexities of the rapidly growing and dynamic global environment. Where a task is highly structured and the leader is in a harmonious relationship with their subordinates, then the effectiveness of the subordinates will be high. In this section, the report will be introduced and research summarized to formulate a problem and set appropriate aims and objectives.

1.1 Organizational Background

Apple Inc. is rated as one of the most successful companies in the electronic production industry. Apple is a company that manufactures mobile communication devices. Also, the company designs digital applications, networking solutions, manufacture music players that are portable and also the company markets its products. Products produced and marketed by Apple include iPad, iPhone, iPhone operating system, Apple TV, Apple watch, and Mac. The company markets and sells its products through App store and Apple store. Apple products are efficient and user-friendly that makes the company popular among all companies dealing with mobile network communications.

Apple Inc. was founded by two guys who shared a common name ‘Steve.’ The two guys namely Steve Wozniak and Steve Jobs founded Apple in the year 1997 in the month of April. During that time, Wozniak and Jobs were 26 and 21 years old consecutively. They started by building boxes that could make phone calls for a long distance, and there were no charges on the phone calls they made. Wozniak started working on another box by the name Apple I computer which had neither keyboard nor power supply. The computer was his project that he was to present to a computer club. For Jobs and Wozniak to start a company, they sold the most valuable belongings, which were two calculators, and a van hat raised $1,300. A retailer ordered 50 of their computers and also sold 200 of them to hobbyist’s computer club. Each of the computers was worth $666.

However, Wozniak started working on Apple II, which was to cover a greater market than Apple I. jobs hired high school students who were interested in computers to design software and assembled circuit boards. The company later realized 40 software programs that dominated European market and as many as 650, 000 of the company’s computers were sold worldwide. In the 21st century, the company was advancing in technology where they came up with a digital music player branded iPod that had the memory capacity of five gigabytes. With time, the company invented many other digital devices that made the company successful in the market, and they opened Apple owned stores in Japan, Canada, and the United States.

1.2  Problem Statement

Leadership styles have been linked with overall organizational performance in various ways. For instance, leadership styles have been portrayed to posses’ positive impacts on work satisfaction, and organizational commitment. Consequently, work satisfaction in turn has positive impacts on both work performance and organizational commitment. More often, leadership is culturally oriented, meaning that it often embraces the values, norms, and beliefs of the placement. There are close links between organizational leadership styles and business ethics. To that end, business ethics contribute towards increasing the quality of both organizational leadership and life, positively influencing both the members of the organization and the wider society.

Additionally, the perception of employees on various leadership styles is closely linked to their perceptions the leader’s encouragement, and this factors in the organization’s innovation. Leadership behaviors and leadership styles have significant impacts on the trust, confidence, and employee satisfaction within an organization. An apparent fact is that organizational citizenship behavior helps in cultivating a productive relationship between the employee and the organization. Additionally, it directly links organizational commitment and the leadership style used in the organization.

Contemporary organizations require an effective leader who has the capacity to comprehend the complexity of the ever-growing dynamic business environment. Organizational performance and productivity is therefore dependent on the type of leadership styles used. To that end, the failure or success of any organization is directly linked with the leadership style used by the organization. The leadership styles of Steve Jobs, founder of Apple Inc. were vital for the performance and success of the company since its foundation to date. The report seeks to examine the management styles of Steve job, and his contribution to the company’s success.

1.3  Aims and Objectives of the Study

The report aims at examining the leadership styles in Apple Inc., contributing to its success in the competitive environment. In addition, the report examines the relevance of the company’s management styles to its strategic management, hence the success of the company. The report will also analyze the company’s case in relation to the effective styles of management, using theoretical dimensions and model applications.

1.4 Purpose of the Study

The primary purpose of the report is to analyze the importance of effective styles of leadership and management to a business. In particular, the report examines the management of Apple Inc. as well as its contribution to the company’s success and development. Leadership and management styles are essential for growth, development and stability of the company.

1.5  Summary

The report starts with a review of the literature and framework relevant to the management styles of an organization. In the following chapter, a case of Apple Inc.’s management styles is analyzed to determine the core factor of the company’s success. Finally, the report concludes with recommendations to the company’s management, and a precise conclusion to the report.

2.0 Literature Review

2.1  Introduction

In this section, the report seeks to review numerous studies of the past regarding the role of leadership and management styles in a business. The theoretical framework of management styles is analyzed in this chapter.

2.2 Effective Management Styles

Leadership behaviors and leadership styles have significant impacts on the trust, confidence, and employee satisfaction within an organization. An apparent fact is that organizational citizenship behavior helps in cultivating a productive relationship between the employee and the organization. Additionally, it directly links organizational commitment and the leadership style used in the organization. Contemporary organizations require an effective leader who has the capacity to comprehend the complexity of the ever-growing dynamic business environment. Organizational performance and productivity is therefore dependent on the type of leadership styles used. To that end, the failure or success of any organization is directly linked with the leadership style used by the organization. Various international leaders have used various leadership approaches and styles.

2.2.1 Charismatic Leadership

Charismatic leaders are the type of leaders who have a passion in leadership and in who they lead. These leaders use charm to influence their followers. To these leaders, their subordinates are the most important part of leadership and thus, they put the people they lead first. In an organization where this approach of leadership is at play, employees believe that they have a voice, and that the leader is looking after their best interest. Thus, charismatic leaders often gain the confidence and support of many subordinates. They have the power to make their followers relax, and have a voice. An example of a charismatic leader is Winston Churchill. Churchill was a charismatic leader, and he achieved to convince individuals to believe in him by leading them with a direct attitude. This leader told things as they were, gaining the approval of people. Churchill had a good sense of humor, and in that way he attracted people, and additionally, gained their respect.

2.2.2 Transformational Leadership

Transformational leaders are the kind of leaders who have the ability to enlighten people on their visions, and the reasons why these people are passionate about specific things. Given the fact that these leaders have direct and honest passions, they gain the confidence and support of individuals. Such leaders have brilliant missions which make people follow them- they do not seek the support of subordinates. Transformational leaders use their individual beliefs to motivate their followers and make them feel empowered. Their messages and stands inspire their followers. An immediate example of a transformational leader is Martin Luther King Jr. Luther had a great vision that various individuals in his time had, but they never communicated their beliefs. He managed to empower individuals to stand for what they believe, and act upon their beliefs. He wanted to boost the confidence of individuals to stand for themselves.

2.2.3 Transactional Leadership

Transactional leaders are the type of leaders who have higher regard for, and value structure and order. More often, transactional leaders are in charge of organizations and projects which require rule and regulations to achieve the set objectives and aims, and to mobilize the individuals and resources involved in an organized manner. Thus, transactional leaders do not fit in an organization where innovation and creativity are valued and are part of the organization. This approach to leadership relies on self-motivated individuals who have the capacity to perform in directed and well-structured environments. More often, transactional leadership is compared to transformational leadership. The contrast between the two is that transformational leadership seeks to motivate individual. It achieves this by influence, not direction.

2.2.4 Participative Leadership

The participative leadership style is an approach to leadership that allows employees and followers to provide their input in the decisions made within an organization. They are provided with pertinent information on the issue affecting the organization, and provided with an opportunity to vote. The majority of votes will determine the course of action to be taken to come around the issue. While participative leadership might be the perfect managerial style in a group setting, it is, however, a slower approach when it comes to decision-making.

2.3 Roles of Different Management Styles in the Organization

2.3.1 Charismatic Leadership

Charismatic leadership approach can be a very inspirational approach to leadership. Successful charismatic leaders have the ability to develop vision, which in turn, attracts their subordinates to the cause and objectives. Having the conviction to empower and motivate individuals through vision can result in increased productivity within an organization, and ultimately lead to success. Charismatic leaders have the ability to exploit charismatic leadership tools, which are used in generating a vision of an organization that will lead the industry. In the contemporary workplace, having the appropriate type of vision and motivation will bolster individuals’ ability to accomplish tasks more efficiently.

Additionally, having a shared vision within an organization results in enhanced workplace cohesion, since every employees is clear on the objectives and mission, and they are working towards achieving a common goal. In such a leadership approach, no individual employee stands to gain more than others. Again, these employees do not gain their motivation from financial gains, or punishments. Rather, they are motivated by the notion of working as a whole to achieve the goals of the organization. Having a sense of working together towards a certain goal creates a stronger sense of unity and togetherness.

Charismatic leadership also ignites individuals’ passions, and thus, it has high chances of resulting in better performance within an organization. Being a charismatic leader means that an individual has solid convictions. Therefore, charismatic leaders are always passionate about what they do and about realizing their objectives. Being passionate about getting things done boosts the creativity and risk-taking skills of charismatic leaders. These are the qualities which can drive change within an organization, and have a significant impact on the overall operational effectiveness of the organization. Charismatic leadership leads to clarity in vision and objectives, and therefore, fosters learning behavior. These are the aspects which boost employee motivation and morale, and eventually result in increased productivity.

2.3.2 Transformational Leadership

As mentioned, transformational leaders tend to stand for what they believe in. Every transformational leader has a belief they stand for, and a set of guiding principles on which they operate. This approach to leadership is more centered on the development of the subordinates, along with their needs. Managers who employ this style of leadership will tend to be more focused on the development of abilities, moralities, and inspirational levels of employees. Additionally, they focus on developing the value system of employees.

One advantage of the transformational leadership approach to the organization is reducing the levels of both employee and customer turnover. As mentioned, a transformational leader will always seek to satisfy the needs of their followers, along with those of employees. To that end, transformational leaders will fully engage their employees. Feeling like they fit in the organization is a clear way of ensuring employees stay with the organization. Reduced employee turnover will result in reduced hiring and training costs. Transformational leadership also results in the generation of new initiates, and thus, leads to improved corporate learning.

2.3.3 Transactional Leadership

As mentioned earlier, transactional leadership approach is more effective in an organization where structure is crucial. For organizations where initiative is encouraged, this approach to leadership might prove futile. There are, however, several advantages to the organization associated with this approach to leadership. For starters, this style of leadership tends to reward the individuals with self-interest and who are motivated by following instructions. Additionally, transformational leadership provides with an unambiguous structure for large organizations and projects which require recurring tasks, and which are set in considerably reproducible environments. This type of leadership also has the ability to achieve the organization’s short-term goals.

2.3.4 Participative Leadership

In participative leadership, every employee is empowered to voice their concerns regarding the issues affecting the organization. To that end, they are liable to the organization’s success. Since employees appreciate the chance they get to be part of the decision-making process, they are highly motivated. They will also assume more active roles in improving the working conditions, given the fact that they have the ability to affect the governing policies within the organization. Participative leadership also bolsters creativity.

Employees are encouraged to come up with individual solutions to a challenge affecting the organization. Here, there will be creativity, and consequently, diversity of solutions. Employees have an intimate relationship with an organization’s operations. They are motivated to be creative in the development of productive work processes, thus making the organization more effective. Moreover, participative does not only allow employees to improve their income through improved performance, but also give them a chance to actively determine the future of the organization

2.4 Summary

Given the contemporary competitive business market, having effective and efficient leadership styles is crucial in not only reducing the attrition rates, but also overseeing the overall success of any organization. It is only from effective leadership styles that an organization will realize its goals and objectives productively. An apparent fact is that leadership styles have significant impacts on the overall performance and productivity of employees. It is expected that an effective leader will always have the ability to influence followers towards achieving the desired and projected goals.

3.0  Case Analysis

3.1  Introduction

Apple Inc. is a global corporation, an done of the most successful firm in the industry. The leadership styles at the company are critical elements for the success and development af the firm. In this section, the case of Apple’s management approaches used to facilitate the company’s success.

3.2  Apple Inc.’s Case

Apple Inc. experience high-profit margins and hence the company has objectives and formulated strategies to help the company remain strong in the market and sustain the stiff competition from other investors in the market line. Apple objectives are to remain the best company that produce products that set trends in the market and produce products that are user-friendly and users can enjoy using them. Apple strategizes for this objective by establishing a strong research team and encourages innovation. Apple also has an objective to dictate the trends in future technology. To meet the objective apple study the market and find out what people in the market needs.

The information they gather gives them a clear picture of what is needed in the market hence encouraging innovation to give the best in the market and outdo other companies in the market. Furthermore, Apple Inc. aims at increasing their profit margin, hence they keep lowering production cost, and the retail prices in the market remain the same. The aim of the company is to create the best personal computers in the world.

There are factors that greatly contributed to Apple Inc. success. One of them is information. Information aid Apple Inc. to manufacture products that are more interesting. They use the information they gather in the market to create products that would sell best in the market. Apple use information also to determine what sells in the market, examine the customer’s preference and needs. For example, Apple introduced iPad in the market that is portable, easy to use, can watch videos and the phone is the touch screen which customers enjoy using.

In addition, information technology makes it possible for managers to be more proficient in the business purpose and encourages effectiveness of the organization departments. The use of computers and computer software can be controlled by IT. The Apple CEO, the late Steve Jobs was obsessed with control, in that he wanted to control technology in everything that he does. His obsession was evident in limiting i-Pod to play songs only encoded by Apple but risked limiting its market. Apple’s designs rely on standard technologies and are idiosyncratic. His choice to opt to a Windows compatible system was imperative to the remarkable success that Apple has enjoyed over the past decade.

Besides, there are people who have contributed greatly to the success of Apple Inc. Steve Jobs were able to market Apple from the beginning, and he advised Woz to sell his ideas to make money instead of giving his creation free. Secondly, jobs advocated for simplicity and brainstorming ideas to engineers that would aid the company to make user-friendly products.

There are secrets that have made Apple the most popular in mobile communication market. Firstly, Apple Inc. clings to the simplicity of things. The company officials understand that users of phones and computers prefer gargets that are easier to use, and therefore Apple products maintain simplicity. Apple engineers create products that they would want to use, and hence they maintain the standard that is pleasing even to them. Apple customer service is satisfactory to all customers for all salespeople in their stores have familiarized well with the products they sell. They are capable of answering any technological question directed to them by customers. This serves a great advantage to the company since the customers build faith in the company’ services.

Apple Inc. has controlled the market within its industry, regardless facing various challenges on its course to fulfill its objectives. Apple Inc. faces competition challenge from competitors such as Nokia. Apple products such as iPhone in tablet market face stiff competition from Android phones that are now dominating the highest percentage of the market. Apple market is also facing a challenge of the economy a rapidly growing company. There are strong forces of the economy that are becoming hindrances to its growth. Below is a chart that shows the market share of rivals in the computer industry.

3.3.1 Autocratic Leadership Style

Authoritarian leadership refers to a leadership style where the leader is the sole decision maker. In such an organization, there is no room for negotiations and the leadership is prescriptive, characterized by low levels of job satisfaction. The Apple Inc. uses this leadership style since it leaves no room for conflicting ideas, and the job is done with ease and fast. The autocratic leadership style at the Apple Inc. is evident on the factory floor of the company.

3.3.2 Democratic Leadership Style

This leadership style is more focused on group agreements while generating new ideas. The democratic leadership style can be further divided into the democratic and the consultative democratic categories. The democratic style is the leadership style that involves all individuals, regardless of their rank: top managers, junior managers, and all other employees, in idea generation and decision-making processes.

In an attempt to ensure employee motivation and engagement, the Apple Inc. employs the democratic leadership style in some of its departments. Though they perform under a given paradigm, these units are given decisions to make, and responsibilities to accomplish (Bowles, 2015). The democratic management style at the Apple Inc. is seen in how the company assembles feedbacks from the managers at the bottling system across the world, providing the company with strategic information.

3.3.3 The Consultative Democratic Leadership Style

This style of leadership allows the employees to contribute in the decision-making process and in generating new ideas, though the manager or the executive makes the final decision. The Apple Inc. adopts the consultative leadership style as it serves to reduce conflicts regarding the final decisions. This style motivates the employees since it provides them with a sense of belonging to the company, and they feel that their opinions matter. However, this leadership style leads to time wastage since decision-making processes are slowed down (Bowles, 2015).

There are several programs and divisions within the company, which reinstates the company’s consultative democracy leadership style. They include the diversity advisory council- a council that is responsible for providing the management with recommendations on enhancing the efforts of the company; and employee forums. Organizational management and leadership motivate employees towards setting individual goals, which are in line with those of the organization. These goals are reviewed on a regular basis in performance appraisals. This not only enhances the efficiency of employees but also ensures that they stay productive.

3.4 Outcomes of the Leadership Styles

In summary, their leadership styles allowed for both positive and negative impacts on the company. This leadership engaged in an open system of open communication in order to give the employees the indirect management of the business by applying their points of view in different circumstances. At the same time, the trio has always rewarded the high-performing employees by giving those promotions, increasing their pay and even recognizing them and giving awards in end year meetings.

The styles adopted by the trio managers have had the consequence of motivating the employees to work even harder in their different areas of specialization. When the employees are motivated at the workplace, it will have the impact of increased productivity, which will fetch the high company returns as compared to the unmotivated employees.

Therefore, Apple Inc. will also face great improvement in performances that will see it expanding the spectrum of operation. The leadership of the company is in the middle of the transition, and its future is faced with uncertainties. Apple success without Steve Jobs is likely to decline since he was familiar with the market, knew the art and he knew technology. Steve also was dedicated to Apple, he was focused on the success of the company, and he did everything towards perfection.

In conclusion, Apple Company has transformed the world in technological perspective. Apple products are user-friendly, and users enjoy using Apple products. Information technology, information and visionary people such as Steve Jobs who have worked hard to make Apple products the best in the market have greatly influenced the success of the company. Apple needs to strategize how to cope with the existing competition in computer market so that they can maintain their good reputation in the market.