Apple : Case Study

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APPLE:CASE STUDY
PRESENTED BY:
NEEHARIKA GOWTHAM NAVENDU KSHITIJ

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PRESENTATION FLOW..
HISTORY OF APPLE

STEVE JOBS
APPLES ORGANIZATIONAL STRUCTURE APPLES INNOVATION PROCESS
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PRESENTATION FLOW Contd..

FUTURE OF APPLE CONCLUSION REFERENCES

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VISION AND MISSION

VISION
Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them.

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MISSION
Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.

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1976

1977

1997

2006

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HISTORY OF APPLE
Established: April 1, 1976 in California Incorporated : 1977 Founders: Steve Jobs, Steve Wozniak, and Ronald Wayne Apple Inc. (previously Apple Computer, Inc.) is an American multinational corporation Designs and markets consumer electronics, computer software, and personal computers Apple Inc. ignited the personal computer revolution in the 1970s with the Apple II and since then has been reinventing and innovating not only computers, but also other electronic goods and services
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-The first item released by this company was Apple 1 personal computer kit that was made totally by hand from one of the three men, Steve Wozniak.

-In 1977, Apple II was released

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REASONS FOR FIRST FALL:

1. Frequent changes of strategies and leaders at the helm. 2.Closed system of the Apple Mac, application software not easily available. 3. Niche market operator, less penetration. 4. Research oriented, hence costly.

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REBIRTH OF APPLE
1996: acquisition of NEXT Inc. Jobs back to Apple as an advisor. 1997: Steve Jobs the CEO 1997: Steve Jobs announced that Apple would join Microsoft to release new versions of Microsoft Office for the Macintosh 1997:Apple introduced the Apple Store+ new build-to-order manufacturing strategy 1998: introduced the new iMac with Mac OS X. Then came the iBook, Apple's new laptop. 2007: company renamed to Apple Inc.

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STEVE JOBS AND APPLE

STAY HUNGRY STAY FOOLISH

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STEVE JOBS AND APPLE

LEADERSHIP AND CREATIVITY :
The CEO needs to be someone who looks out to the horizon and consistently sets a vision of innovation for the organization that he or she is willing to support completely with people, funds, and time.

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STEVE JOBS AND APPLE

In 1972, Steve Jobs dropped out of Reed College in Portland after just one semester. He stayed another 18 months to drop in to those classes he enjoyed, like calligraphy. Calligraphy didnt have any obvious practical application in his life but it would come back to Jobs when he created the Mac.

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 The Macintosh was the worlds first computer with beautiful fonts and typography. If Steve Jobs hadnt followed his passion, wed still be entering line commands.

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STEVE JOBS AND APPLE

Have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Steve jobs

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STEVE JOBS AND APPLE

I was worth over $1,000,000 when I was 23 , and over $100,000,000 when I was 25,and it wasnt that important because I never did it for money. Jobs earned only $1 a year as CEO of Apple

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JOBS TENURE

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STEVE JOBS AND APPLE

DISTURBANCE HANDLER:
Apple was criticized by some environmental organizations for not being a leader in removing toxic chemicals from its new products and not recycling the e-waste from its old products. Jobs responded to the above criticism by releasing official reports on the emission of various toxic chemicals from their factories.

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It was found that that they were much ahead of their rivals like HP, DELL in creating a greener environment.
Measures taken to avert the problem: By minimizing the usage of toxic chemicals like arsenic, mercury etc in the manufacturing of new products . Apple announced it would take back iPods for free at its retail stores The Computer TakeBack Campaign was also introduced.

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Weight recycled as % of sales

2002 2003

2004

2005

2006

2007

2008

2009

2010

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A GREAT LOSS: Apple lost its iconic co founder on 5th October 2011 after his long struggle with cancer. STEVE JOBS DAY : A group of fans have declared 14th October as Steve Jobs Day.

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CREATIVITY VS INNOVATION
Creativity is the process of generating something new with unique ways of working or novel solutions to problems.

Innovation however is the practical application of creativity into something that has an impact.
The most dominant difference between creativity and innovation is the origin of the idea or concept. Creativity is the initial idea, while innovation is the growth of that idea. Apple is a company that excels in both.

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STIMULATING AND NURTURING INNOVATION

The right environment is needed to help transform into innovative products or work methods. An environment that stimulates innovation includes 3 variables:

STRUCTURAL VARIABLES CULTURAL VARIABLES HUMAN RESOURCE VARIABLES

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STRUCTURAL VARIABLES
Research into the effect of structural variables on innovation shows three things.

Organic structures positively influence innovation:

Organic structure: I. Cross-functional teams: Work teams composed of individuals from various functional specialties. II. Cross hierarchical teams: III. Free flow of information IV. Wide spans of control: Manager can efficiently and effectively manage large number of employees V. Decentralization: The degree to which lower level employees provide input or actually make decisions VI. Low formalization: Not very tight on rules and regulations. Employees have more discretion in how they do their work. 30
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 The easy availability of plentiful resources provides a key building block for innovation:
With an abundance of resources, managers can afford to purchase innovations, can afford the cost of instituting innovations, and can absorb failures.

Frequent inter unit communication helps break down barriers to innovation:

Cross-functional teams, task forces, and other such organizational designs facilitate interaction across departmental lines and are widely used in innovative organizations.

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APPLES ORGANIZATIONAL STRUCTURE

Simplicity Team structure Small teams for crucial projects No committees, no concept of GM Ex : CFO P&L

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CULTURAL VARIABLES
Innovative organizations tend to have similar cultures. They encourage experimentation, reward both successes and failures, and celebrate mistakes. An innovative culture is likely to have the following characteristics.

Acceptance of ambiguity
Tolerance of the impractical Low external controls

Tolerance of risk
Tolerance of conflict Focus on ends rather than means

Open-system focus

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ORGANIZATIONAL CULTURE

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Concepts like conventional wisdom and status quo dont exist at apple. Think different is the culture that binds people together. 1)Attention to detail: Every minute detail goes a long way in affecting the culture of the organization.

2)Outcome orientation: Constant feedback help apple to analyze their product and thus helping in development of the new ones.

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3) People Orientation And Team Orientation: Rewards Salary and benefits

Designers are paid 50% more than their counter parts at the other organizations

Recognition Being able to do satisfying work that challenges the mind Part of what made the Macintosh great was that the people working on it were musicians, and poets, and artists, and zoologists, and historians who also happened to be the best computer scientists in the world. Steve Jobs

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4)Aggressiveness: Competitive atmosphere is very high at Apple just to get the best outcome. 5)Stability: Every precaution is taken to prevent the companys image from being ruined and thus to have a stable state in the market. 6)Innovation and risk taking : Everybody thinks it is a grand management but everywhere risks are involved. Apple has even changed the product prices just 48 hours before the launch.

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At Apple
Work culture driven by
A passion for new products with no end to challenges and opportunities The pioneer of the "Work Hard Play Hard" ethic A very strong commitment to deadlines The career opportunities Employability security Compensation and benefits Value creative people Self-motivated individuals work harder if they do not have a boss micromanaging every action

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Focus on just few things at a time: One of the main strengths is its ability to focus on just a few things at a time an entrepreneurial trait difficult to imagine at a corporation with a market value of $320billion!!! Secrecy: A lot of effort goes into planning what is to be told to whom and which information should be shared in public. No one is supposed to discuss about the future plans of apple at any cost outside the group they are working in.

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HUMAN RESOURCE VARIABLES

Innovative organizations actively promote the training and development of their members so that their knowledge remains current. Offer their employees high job security to reduce the fear of getting fired for making mistakes, and encourage individuals to become "champions" of change.

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Top 100
They are the top 100 people of the organization selected by Steve Jobs. For an intense 3-day strategy session. Everything about its existence is kept secret, ranging from its very existence. Attendees are told not to put the meeting on their calendar and they arent even allowed to drive themselves to the gathering ! They are told to take the public bus running from their headquarters. Here Jobs and his chief lieutenants take the stage and inform the selected candidates about Apples vision and their strategies.

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WORLDS MOST INNOVATIVE COMPANIES:

'I skate to where the puck is going to be, not where it has been.' And we've always tried to do that at Apple. Since the very very beginning. And we always will."

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Apple innovates through:

Innovation in Products Innovation in Business Model Innovation in Customer Experience

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Innovation in Products
MacBook IPod IPhone IPad Apple TV

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Innovation in Business Model

Business model innovation means more than a brilliant insight coming at the right place and the right time

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The following segment could be targeted by Apple

TARGET INDIAN FIRMS There is a huge demand for better processing
powers in business analytics and market research firms in India. Apple could target these companies, by demonstrating its technical expertise over Microsoft.

TIE UP WITH EDUCATIONAL INSTITUES This would lead to mass

awareness of its products here.

LAUNCH ITS OWN ANIMATION CENTRE Animation is another

segment which is picking up in India, Apple along with its association with Pixar could become a huge hit in India, if it plans to launch its own animation centre of excellence, and thus promoting the apple brand.

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FUTURE OF APPLE
Short term stability can be predicted because of the reputation and profits It will take time to judge whether the company, without Jobs, will continue to have that ability to change the rules in whatever industry it enters as before. It remains to be seen how effectively Tim Cook, the current CEO innovates and introduces new products, services and applications.

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There are lots of people who will fill some of the roles that Steve has been performing there at Apple. So there are a lot of people who will fill part of Steve's shoes.

"There is no one who puts on a show like Steve Jobs. That will certainly suffer (with the absence of Steve Jobs)

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Conclusion
For 35 years Apple has been a trend-setter company able to foresee the future of domestic computer and consumer electronics. it will probably continue during the next decades. because their strength is the innovation . And they know, how to think different.

Apple, go on innovating..

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REFERENCES
www.google.com

www.wikipedia.org

www.youtube.com

Harvard Business Review

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Thank You !

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