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Table of Contents
1. Introduction ........................................................................................................................ 2
1.1 Relationship between Strategic Management and Leadership ............................................ 2
1.2 Effect of Management & Leadership on Organisation`s Strategic Decisions ..................... 4
1.3 Evaluation of Apple`s Leadership stylest ............................................................................ 5
2.1 Impact of Leadership on Organisational Strategy ............................................................... 6
2.2 Recommendation Leadership Strategy ............................................................................. 7
3.1 Approaches, Methods and Leadership Requirements .......................................................... 8
3.2 Developmental Plan ............................................................................................................. 9
4.1 Plan Execution ..................................................................................................................... 9
4.2 Benefits and Usefulness of Methodologies Adopted ......................................................... 10
5. Conclusion ........................................................................................................................... 11
References ................................................................................................................................ 11











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1. Introduction
Business leaders who handle an organization are always under pressure to make sure that
they remain successful consistently in this competitive global market. Hence aiming to
provide high value for customers and business partners with proper implementation and
execution of new strategies and two major factors for leaders to follow. Strategy by aligning,
allocation , effective management of resources to bring about necessary changes which paves
way for long term success are some of the factors that are part of strategic management.
(Franken et al., 2009)
Muller-Carmen et al., 2008, states that complex organisations are created due to peoples
approach, their thinking towards environment and relationship with organization. There is no
transparency as one gets to know only what happens in the surface and nothing more than
that. To gain more insight and to explore the unknown side, organizations use strategic
management in which individuals are employed as managers and leaders so as to drive the
planning and executions of the tasks. In order to achieve the goals, the organisation adopts
strategies, which are supported by various choices and also some practical measures. These
plans help in learning about the situations, the necessary steps to be taken and that are to be
avoided, analysis of the consequences, what has to be done and how these strategies are to be
executed. The ability to convert these decisions into business and real time plans and their
execution effectiveness determine the success of adopting these strategies.
1.1 Relationship between Strategic Management and Leadership
Planning, co-ordinating, leading and organizing are the key skills an individual must possess
at any level of hierarchy to create an effective organization. But a primary factor is the ability
to display unique and significant skills depending upon the situation, irrespective of their
position in the organisation. Good leadership and effective management strategies are the
main factors that determine the success of the business. As pointed out by (Cacioppe and
Albrecht, 2000) in their journal, to compete with the perplexities and changes taking place in
an organisation , effective management skills and leadership qualities have become very vital.
They cite (Wilber, 1996) states that individuals form a part of a team, and a team forms the
organisation. Creating a healthy relationship between teams and team members and managing
people and tasks is the prime function of a leader. Teams contribute towards the development
of the organisational in accordance to the organisations culture and policies.
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Apple, Inc., is a multinational corporation that designs, manufactures and markets
consumer electronics, personal computers and software. It was established by Steve Jobs and
Stephen Wozniak in 1976 in California. This case study focuses on the relationship between
strategic management and leadership. Apple Computers was formed on January 3rd, 1977
under the guidance of A.C.Markkula, companys first recruited manager and with the
assistance of financial capitalists. (Freedman and Vohr, 1998) As a founder jobs aimed at
creating new products. Within six years of starting the business the profits leapt heights and
grew in bounds. Their net sales went up to 1 billion dollars and employed nearly 4645
individuals. The main reason for Apples success in one swing was Job`s efficient leadership,
his keen in gathering details and his long term goals for innovative markets. Facing a tough
competition in the industry from IBM, Commodore and Atari who introduced more advanced
and industry standard machines, it was evident and unbelievable that the company made a
comeback with a huge success and developed over time, driven through technological
innovation and strategy. As the teams progressed in their work contributing towards the
companys growth, as an individual Steve Jobs took an initiative , by involving himself in
decision making and integrating the team and his goals to the ultimate progress of the
organisation .According to (Cacioppe and Albrecht, 2000) leadership requires building a
team that work together towards a common purpose or vision. They focus on the bigger
picture of success, strategy and the long term, which means that they focus on relationships
and involve in changes that help achieve great success, most importantly bind an organisation
together. To achieve this success, Job`s ensured a balance between teams involved in tasks
and building relationships between them.
Considerate to this case study we get to know that leadership skills and strategic
management are two skills that an organization should necessarily possess in the higher level
and also positive support from the team members. Though these two are interdependent on
each other they can also be learnt individually. Good leadership is gained through practice
and strategic management is learnt through courses. (Carnall, 2003) brings out the fact that,
strategic management is planning of tasks, directing and ordering parties , following
principles to weigh the effectiveness and to maximize and reduce costs, whereas leadership
is depicted through managers who guide the team towards the common organisational goal
which is supported by strategic management and planning. It is well known that one has to be
dependent on the other on order to survive and to be effective. Hence the relationship
between leadership and strategic management need to co-exist with each other.
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1.2 Effect of Management & Leadership on Organisation`s Strategic
Decisions
Leadership cannot exist without strategic management and vice-versa. For example, Strategic
management is dependent on leadership, as the organization needs a leader to take
responsibility of delegating tasks and make it happen, whereas leadership needs strategic
management to ensure that the organizations stands well through all hardships to achieve
success. There is no fixed direction as there is no vision or goal in mind. But if effective
management adopted which is combined with good leadership, goals towards success can be
set, and resources are directed towards meeting these goals to effectively reach that
destination in short period of time. (Taylor et al.,2008) states that organisations must ensure
that it has efficient leadership capable of integrating an extensive strategic planning process.
Organizations have become more complex and also an increase in the size takes place due to
various changes that keep occurring. Increasing demands, competition and wealth creation
involves more pressure to remain diligent and it also needs strategically positioned plans to
avoid risks and threats effectively. The managerial overall performance is measured best
under the framework of a strategic plan (Gayle et al., 2003) Taylor explains a strategy
planning framework starts with circumstances of the current trend, tunes into strategic
thinking that focuses on the vision, and finally it converges into the strategic planning
process. He says that a creating a consistent environment can be done with Strategic
management, but at the same time, it can also be seen in restraining the creativity that thrives
on contrariety. The negative side of this can be reduced with the help of effective leadership
concepts that are inconsistent, subjective and multi-faceted.
(Chen and Silverthorne, 2004) create awareness amongst us indicating that according to
most of the studies leadership styles incline towards behaviours that have a positive
relationship with performance. Such leadership behavioural patterns affect a teams
performance and satisfaction thus creating an influence on the employees and organisational
outcomes. (Kontogouris, 2010) explains that reactiveness, innovation and taking judgemental
risks are the three traits that have been identified as those which elucidate successful
entrepreneurial leadership. However she also explains the fact that these are not the same
personality trait found in leaders who exhibit skills to take the organisation to the next level,
in comparison to good entrepreneurs.
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A companys greatest challenge is to find a leader who evokes the feeling of team work, to
inspire the drive towards success along with efficient corporate governance and management,
parallel ready to handle risks diminishing the odds, creating new ideas and strategies for
implementation and also the risks involved with making new market entities. Many
organisations have established themselves successfully by embracing all these traits. Apple,
Inc, is one clear example for such an establishment and success which they have achieved
through their efficient governance, leadership, innovation and entrepreneurial drive.
(Kontogouris, 2010). Strategic decisions of organisations have been greatly influenced by
Management and leadership styles as it influences individuals, who may decide to launch or
drop a product without looking into the intricacies or what the outcomes might be. (Hart,
1989)
1.3 Evaluation of Apple`s Leadership stylest
Steve jobs with his long term vision and leadership skills took Apple, Inc. to new
organisational levels with intellectual marketing/entry strategies and continuous innovation
which paved way for the organisations great success. It started to change the future
generations of computing industry and they will be able to sustain only if they made use of
smart marketing strategies along with innovative thinking and strategic leadership .They
needed to focus on diversifying and strategize on cost effective measures, explore new areas
using effective development backgrounds and making their products more global.
(Freedman and Vohr, 1998) Apple has three unique revenue streams from their significant
products, the iPhone, the iPod and the Mac. Following the success of these products, earlier
this year they launched the iPad. This portrays a remarkable leadership trait and a behavioural
phenomenon as after a long break, rather than indulging in using up the former victory he
rescued the company bringing about revolution, innovation and new fresh mind-sets. Jobs
made sure that the Apple II products were compatible not only with IBM machines but also
the rest of Mackintosh products. Following the decline of Apple`s market share to its
competitors, they tried to comeback with Apple III and Lisa, however the products failed to
be accepted and compete with the IBM personal computer. Jobs hired John Sculley from
PepsiCo as the new President, for executive and marketing expertise. According to Steve
Jobs this was an important decision taken in Apple history as that time was very critical with
lot of problems and pressure. John Sculley reorganized management and and reduced Apple
product divisions to three: Apple II, Lisa and Mackintosh which were accountable for their
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own functions as independent centres. He became the head of Apple II group whereas the
Mackintosh division was monitored by Jobs although he remained the board chairman. He
monitored most of the people as he made them report to him for better access to them. He
implemented stringent control policies, increased the focus of the market and discipline
among the managers.
Jobs developed the Mac in a way that it was user friendly, even though it did not allow
hardware/software that could be added onto it. This incompatibility increased the profitability
in the short run. Due to minimal competition the products were priced high. Though many
changes had taken place, after a particular period the sales slumped down due to ineffective
marketing and a lot of internal problems. Concentration on new technology was jobs ideas
and Sculley preferred the needs of the customers which led to contradictions. This led to
numerous conflicts and other divisions were demoralized as Jobs favoured the Macintosh
division. Due to the rising conflict and with the support from middle level managers, Sculley
reorganized the companys operation without Jobs. This had a negative impact that resulted
in downsizing, factories getting closed and employees being laid off. Soon after Job`s
resignation Apple went international and branched into Europe.
2.1 Impact of Leadership on Organisational Strategy
Jobs, has been regarded as an inspirational leader by the employees and the customers who
played an important role in successfully making Apple as a global brand in the market.
Initially the board of directors did not appreciate Job`s contribution and leadership, and they
replaced him with a new manager. But later they withdrew the decision as the found out that
the organisation was in need of entrepreneurial leadership. (Kontogouris, 2010)
Lot of research has been done to determine the traits of an effective leader. According to
Traits theory leadership lives on the fact that leaders could be born with certain inborn traits
and potential, or they can inherit them through means of experience and learning.
Intelligence, self-motivation, drive, intuition, aggressiveness and judgement, are some of the
characteristics associated with this theory. These kind of traits were found in Job`s , he did
not wait for opportunity to determine his next steps of action, but he anticipated them and
made sure he developed new ideas , planned and executed effective decisions in order to
solve a sequence of problems and gathered the consequences of risks to implement the ideas
effectively.
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The Situational theory of Leadership believes that effective leadership is based on the
understanding of the situation and behavioural patterns of employees. There is no specific
style of leadership; it depends upon situations and circumstances. Effective leaders are those
who adapt their style to drive the team they are responsible for and to guide them in the tasks
they need to accomplish. Effective communication, collaboration, passion, focus,
involvement and innovation are the factors involved in Job`s leadership. (Cacioppe and
Albrecht, 2000) He possessed leadership qualities which had capabilities of transforming an
organisations and visionary leadership with which he worked on the purpose of facilitating
the change needed to achieve it. He analysed the circumstances, challenges, the risks
involved in it, and he planned out the strategies in a new direction so as to achieve the goals
and objectives, which was clearly laid out to remove hindrances that crossed the path of
progress. It was mainly focussed in transforming each other, which in turns helps the
organisational growth as whole and also enhancement in productivity and organisational
success .His aggressive leadership styles, and his passion, vision and drive played a direct
impact on the organisation. On his take over as CEO, of Apple Inc. which was going through
a sales slump turned its quarterly loss into massive profits.
2.2 Recommendation Leadership Strategy
On Basis of Apples case study and with the understanding of the modules it is recommended
that Transformational and Visionary leadership is important which helps to achieve the vision
for future. . (Krishnan, 2003) explains how managerial work influences the way in which the
leaders get their job done by their team members and the subordinates that depends upon
myriad of factors most important of which determines the kind of relationship they share
.According to (Burns, 1978) Transformational leadership happens when leaders and their
followers raise the stakes to higher levels of motivation and value, that transforms followers
into leaders and vice versa. This widens the horizons of the perspective and awareness of the
vision and mission on the whole. This style of leadership stirs up the minds of those who
follow to think beyond their self-interest for their well-being and success of the team.
As (Cacioppe and Albrecht, 2000) points out, to possess perfect leadership qualities we
require coaching, mentoring and working with people to ensure they feel their value and that
their contribution towards the organisation is significant and it creates a difference with
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respect to attain the futuristic goals. Creating balance between development of interpersonal
skills and also completion of tasks as a team is one of the dependency factor for building up a
good organisation. In the development of Apple Inc. the leaders emphasized on innovation ,
with integration of various business sectors into divisions such as finance, marketing,
management along with research and development . They set long term goals and objectives,
worked on plans to face challenges that stopped their progress, through high valued strategic
management, planning, execution which helped them reach heights and success like which
they have never achieved before.
3.1 Approaches, Methods and Leadership Requirements
Though there were multiple opportunities and success factors that helped Apple, the market
contains risks and dangerous threats as well. Some of them are material cost, difficulty in
raising funds, credits, financial stabilization, recession etc. Apart from this competition is an
aspect with respect to other organisations, in which they try to put their heads into the global
race of technological innovation and success. Sales will definitely find a drop if marketing
and distribution is not planned strategically. The mission and vision of Apple was to
continuously influence the sales by using cutting edge creativity and innovation in every
product launched so as to get a breakthrough amongst the younger generation. Depending
only upon innovations does not help in achieving success, but it has helped them in reaching
imaginable heights.
The success whichever they have achieved currently is only because of Steve Jobs
contribution and initiative. Even though their present leaders and strategies seems to be in
place, considering the relevance to the latest issue and Job`s health condition, it is evident
that Apple Inc, has new strategies in place. They ensured that Job`s passion and motivation
was inculcated in the management and their teams. Strong and efficient leaders, effective
strategic planning is necessary to keep Apple on the path to success. Jobs is still perceived as
a charismatic leader, with strong experience coordinating and leading the management in
Apple; but with the medical challenges he faced, the organization must progressively plan
for meeting the current needs and long term requirements of the organisation.
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3.2 Developmental Plan
According (Wood et al., 1999) the steps that impact strategic plans are linked with outcomes
of business deals and efficient core competencies. (Cacioppe and Albrecht, 2000) points out
the need for proper leaders to achieve higher performance and management skills. By linking
the teams growth with objectives, taking into consideration the organisational goals and
vision, a great deal of planning goes into taking forward the organisation towards its mission.
An efficient plan and recommendation for long term survival would be:
I. Retaining the position as a leading firm in terms of greatest innovations in the industry
and continue to gain benefits of having creating a new evolution gadgets launched. In the
past, innovation and creativity had distinguished Apple Corporation from the rest of the
industry.
II. Gain control over the suppliers and minimize costs, as they would have authority over
the cost structure, which in turn helps in making profit for the company.
III. Acquisition of smaller companies that sell accessories or similar products to Apple`s.
They reduce the revenue of Apple`s, as they offer similar products at lower prices. Once
these companies are acquired Apple Inc. can reclaim certain lost revenue and grab a hold of
the former companys customer base, most importantly protect their brand from getting
duplicated.
IV. Globalization and expansion into international markets, as they are present only in U.S,
Europe and Japan, unlike their competitors who are present throughout the globe. From them
to grow and stay competitive they need to enter into the global market.
4.1 Plan Execution
Steve Jobs acted as the main head and success factor of Apple`s development and growth.
But his health issue was considered to be an issue spoken about by critics and he was seen as
a burden for growth of organisation. So it was very much necessary to search for a new CEO
who would fit into Job`s position and role, a person with passion to drive the organisation,
commitment and innovation to take the organisation into great heights. Still, it would be
better to have Jobs as a mentor and guide, as his ideas and inputs will be of great value and
Apple Inc. will definitely gain benefit from his expertise.
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An article found in this link http://360degreefeedback.blogspot.com/2011/01/apple-inc-puts-
succession-planning-in.html indicates that Tim Cook, Chief Operating Officer, would be in
the driver`s seat for the company`s major products. But it is still not evident as to who l
replace Jobs by undertaking his responsibilities. Getting an exact replacement of Jobs
characteristics would be a hectic task; however it is most likely that the next successor can be
within the organisation or a person who has ushered and contributed immensely to the
success of Apple. Turning an individual into a leader can achieved by:
* Ensuring that the successor is place in the helm of the organisation, under management
and the current CEO`s monitoring.
* Training in key skills to delegate, make decisions, organise teams, ability to get solve
organisational issues, drive employee performance management and plan for the future
development.
* Setting short term and mid-term goals by creating strategies and planning to see what can
be done to achieve them.
* Monitoring, tracking of board meetings, providing individual feedback, mentoring
sessions on building positive attitude
* Team building and leadership workshops to build better relationships with the new
management and resources.
4.2 Benefits and Usefulness of Methodologies Adopted
The foremost function of a CEO is to guide in strategic planning and to communicate the
organisations goals and visions to the management. Teams at different levels of hierarchy
should be involved in building up a strategic plan for the common vision. Application of the
afore said strategic plans is a way of measuring and drawing analysis if the said tasks will be
successfully implemented. These measures can improvise the focus of the plan so that it can
easily take in the immediate changes, better delegation/communication of responsibility,
accountability, which helps in minimizing work duplication.
The ambiguities in an organisation can be clearly cut through by creating a strategic
plan which states the vision and mission for future .Building a concrete strategy and
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executing them in proper manner will instil confidence and also create a positive impact
within the organisation.
In addition to the success it also opens the doors for passionate individuals who will be
willing to enjoy work in competition and enable Apple Inc to achieve its strategic goals as a
global leading brand. (Mulec, 2005) says that as per a research pertaining to the leadership
growth, there is to be a competitive challenge, multiple development activities, feedback that
leads to constructive work and perfect assessment. Maintaining a proper balance between
strategic management, responsibilities and at same time exploring and inventing new ideas
will take the organisation to great heights .Through adapting this culture Apple has been
achieving great heights even in Jobs absence .
Conclusion
Thus I conclude saying that by sticking to strategic plans like task completion time, building
relationships, without compromising on strategic controls, decisive certainty and Apple can
develop and build a new leader who will help them in achieving great heights and take them
bigger successes.
5. Conclusion
Thus I conclude to say that by completing tasks and building relationships, without
compromising on strategic controls, certainty and structure, by implementing the above
mentioned strategic plans, Apple can develop and build a new leader who will lead them to
bigger successes.

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