Apple was formerly known as Apple Computer, Inc. The company is an American multinational corporation that designs, manufactures, markets, and sells personal computers, tablets, computers, computer software and smartphones. Apple Inc. is recognized for being the first personal computer company that market quality products. The company is headquartered in Cupertino, California, in the United States. The company’s main products include Mac, iPad, iPod and iPhone. Apple Inc. operates in Computer hardware, computer software, consumer electronics and technology industry ( Belias & Rossidis, 2021) . The industry comprises many competing companies that offer quality products to increase their market size in the industry. Over the past decade, Apple Inc. has been one of the top-performing multination corporations that offer multiple products and services that meet customers' tastes, preferences and demands.
Leadership Practices at Apple Inc.
Apple Inc. has a distinct leadership style that helps it run all business activities efficiently. The company leadership practices and style directly correlate with organizational culture and goals. As such, this has enabled it to succeed in all its business activities. The following are three effective leadership practices that Apple Inc. has adopted to run its business operation more efficiently and successfully.
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Democratic Leadership
Democratic leadership is a form of organizational management where all stakeholders are given chances to contribute in decisions making process to achieve organizational goals. The decision-making process takes place across tiers and departments. Currently, the top management of Apple Inc. promotes a democratic leadership style to assure a better decision-making process ( Mona & Subagja, 2020) . The Chief Executive Officer views consensus building among senior management as an essential practice that contributes to a better strategy. Since the current CEO assumed the top office, he has been encouraging team dynamics among employees and the management at different levels to advance decision-making processes. Democratic leadership practices reduce the Chief Executive Officer's direct participation in making final decisions without proper consultations with top-level managers.
Apple's management incorporates the democratic leadership style with quiet leadership to accomplish organizational goals and objectives. At Apple Inc, democratic leadership is used to promote teamwork among employees and the management to enhance the smooth running of corporate activities. Roles are assigned based on the qualification upon discussions to ensure employees perform well and are satisfied ( Mona & Subagja, 2020) . Through the division of labor based on merits, Apple has achieved more significant success opportunities to invest all its efforts to achieve meet its business goals and objectives.
Besides, the company's democratic leadership practices are characterized by actively engaged, supporting and accountability. The top management actively participates in organizational activities to achieve all corporate goals and objectives. Apple's Chief Executive Officer is very supportive ( Mona & Subagja, 2020) . He encourages teamwork and has been accountable for all issues cropping when he is in charge.
Autocratic Leadership
Autocratic leadership practice is a form of management where the top management holds foremost authority within the organization. Apple Inc. adopted this form of leadership style to promote a good chain of command. Since many of Apple's employees perform streamlined tasks, top management must assume an autocratic leadership to ensure employees answer to a hierarchy to enhance proper coordination and collaboration among employees and managers. In this leadership practice, top managers engage in strategic decision-making processes while employees ( Mona & Subagja, 2020) . The leadership style has enabled Apple to achieve its business mandate because employees and management at each management level perform their roles accordingly to achieve organizational goals and objectives. Autocratic leadership is characterized by disciplined, decisive and confidence which actively contribute to the success of Apple.
Bureaucratic Leadership Practices
Bureaucratic leadership is a type of organizational leadership that involves formalized procedures, policies, rules, processes and defined organizational structures. Apple adopted this form to achieve its corporate objectives through well-organized corporate systems. In this leadership practice, rules, hierarchy and rules establish a clear set of desires and an improved chain of command ( Mona & Subagja, 2020) . Organized settings, consistency and focus characterize this leadership style. These qualities have enabled Apple to run its corporate activities in an organized manner that has helped the company achieve its corporate goals. Therefore, Apple Inc. should promote bureaucratic leadership practices to run its activities in an organized way to improve corporate productivity and performance. In this form of leadership, the top management performs strategic and decision-making roles while the lower management engages in daily corporate activities.
How Current Leaders has Affected Apple Organizational Culture
Apple Inc. has performed an integral role in the success of the company. The company's current top management has positively influenced Apple's organizational culture to facilitate the smooth running of organizational activities. The top management adopted an influential corporate culture that establishes and maintains the company's values, philosophy, and organizational behavior. Adoption of these practices has enabled the company to run its business activities. The culture ensures all organizational activities are performed according to the company's values and philosophy to facilitate the smooth running of organizational activities ( Grofelnik et al., 2020) . Managers at different management levels ensure that all corporate cultures are strictly followed to improve organizational success. As a result, this has assisted the company in achieving its corporate goals.
Besides, Apple's top management adopted a creative and innovative culture to facilitate the efficient running of organizational activities. Creativity and innovativeness significantly contribute to the success of Apple Inc. The top management tails a business strategy of product differentiation the key goal to design quality products and meet customer needs. The implementation process of a product differentiation strategy needs a high level of creativity and innovativeness ( Grofelnik et al., 2020) . To achieve the goal, top management encourages all employees to be creative and innovative to achieve corporate goals and objectives. The management also encourages all employees to be more creative and innovative by developing an appropriate working environment to facilitate the smooth running of corporate activities.
Moreover, the CEO developed the company to have an organizational culture of confidentiality and secrecy ( Grofelnik et al., 2020) . The culture has enabled Apple to remain competitive because it protects the company's business strategies competitors. Secrecy is a significant part of Apple's strategy that allows it to minimize theft of confidential information or intellectual property that performs a vital role in the company's success. The CEO and top management encourage employees to keep all corporate, personal data within the company. The management reinforces secrecy culture through corporate culture, rules and employment contracts to protect the company from adverse employee poaching. The management uses a secrecy organizational culture to remain competitive in the industry.
Furthermore, the management adopted a top-notch excellence organizational culture that comes with a policy of recruiting and hiring employees based on merit ( Grofelnik et al., 2020) . Apple's former CEO was known for dismissing nonperforming employees who do not meet organizational targets and expectations. The current CEO also encourages the tradition to improve the productivity of the employees to achieve corporate goals. Hiring competent employees maintains a corporate culture that promotes and expects top-notch excellence among employees to accomplish organizational goals and objectives.
Apple Inc. SWOT Analysis
A corporate SWOT analysis describes a company's strengths, weaknesses, opportunities and threats that directly influence the organizational performance. Apple Inc.'s success depends on its strengths and opportunities, while its weaknesses and threats reduce its effectiveness.
Apple’s Current Strengths
Apple is the Global Strongest Brand
Currently, Apple Inc. is regarded as the most valuable and strongest brand in the global market. The company has the ability to introduce influence and competitive new products that meet customer expectations and demands. The company's marketing mix entails premium pricing strategies. The strategy comes with a high profit margin that enables the company to generate reasonable profits to expand its market share. Apple's marketing mix is a significant marketing strength that allows the company to maximize profits even if sales volumes are small ( Belias & Rossidis, 2021) . For example, MacBook laptop sales are limited, but the company still generates reasonable profits from the small quantity sold.
Effective Innovation Process due to Technological Advancements
Apple’s business success is supported by its continuous creativity and innovation that efficiently run its business activities. The company's strengths are challenging to compete with, thus encouraging continued leadership in the local and global industry. Apple also uses advanced technology to design, develop and manufacture quality products that customer tastes and preferences ( Belias & Rossidis, 2021) . The top management encourages teamwork to promote team creativity and idea-sharing among employees to achieve organizational goals and objectives. Effective innovations have enabled the company to develop new ideas, strategies and methods to run business activities. Consequently, this has boosted the company's business activities, allowing it to achieve short-term and long-term goals.
Apple’s Current Weaknesses
Organizational weaknesses are internal factors that reduce a company's effectiveness but can be addressed to improve performance. Currently, Apple Inc. is facing various challenges that reduce its effectiveness. The following are significant weaknesses that internally influence Apple’s organizational performance:
High Selling Prices
Apple Inc. sells its products at relatively high prices compared to its competitors. Successively, this reduces the company’s sale volume in local and international markets. The company uses advanced technology to design, develop and manufacture its products. As a result, it charges high prices on its products and services, reducing the number of potential customers who may be willing to purchase Apple's product ( Belias & Rossidis, 2021) . Increased selling prices have been a significant challenge for the company because it cannot sell below the production cost per unit. Therefore, there is a need for the management to find an appropriate method the can address the issues to improve the company's profitability.
Limited distribution of Apple’s products
Apple Inc. has few distribution centers and retailers that sell its products. The company authorizes a few retailers and distributors in different countries across the world. As such, this makes a few potential customers to access its products. Due to few distribution centers, Apple annually reports a relatively low sales volume because only a few people can easily access its products ( Belias & Rossidis, 2021) . Thus, the company needs to expand its distribution channels in different countries to increase Apple's sales volume.
Apple’s Current Unmet Opportunities
Apple Inc. SWOT analysis pinpoints the most substantial unmet opportunities that can help the company improve its performance. These opportunities encompass external factors the company cannot control but can use to advance its productivity in the industry. The following are the main unmet opportunities for Apple Inc.:
Expansion of the Distribution Channels and Network
Apple Inc. faces the challenge of limited distribution channels and networks. However, the company has the unmet opportunity to expand its distribution network and channels to widen its electronic products' consumption ( Belias & Rossidis, 2021) . The increased use of online services provides more opportunities for the company to expand its distribution channels. If the company exploits this opportunity appropriately, Apple will reach out to many customers from different parts of the world. Successively, the company Apple will increase its sales volume in local and global markets. Besides, rapid population growth provides a broad ready demand for Apple's products. Therefore, the top management should use these opportunities to initiate changes to expand its market share in the market.
Development of New Product Lines
Apple Inc. has a more incredible opportunity to design, develop and manufacture new and quality products that meet customer demands. Such changes can enable the company to manufacture differentiated products that are more appealing to customers than those of close competitors ( Belias & Rossidis, 2021) . Apple Inc. uses technology to develop and manufacture its products. If the company exploits opportunity appropriately, it will manufacture quality products that meet customer taste, preferences and demands. Thus, management should encourage creativity and innovation to help develop new product lines that are attractive and appealing to customers.
Apple’s Current Unresolved Threats
Unresolved threats comprise problems that Apple Inc. faces from external sources and directly influence organizational performance. Most unresolved threats decrease the company's financial performance and productivity. The main external factors that threaten Apple's financial performance include:
Aggressive Competition from Large Multinational
Apple Inc. faces stiff competition from large corporations like Samsung, Microsoft, Nokia and Amazon. Aggressive and tough competition in the technology industry limits market opportunities because the available options in both local and international markets are shared amongst competing firms in the industry ( Belias & Rossidis, 2021) . Since companies like Samsung also have a significant effect in the industry, their aggressive participation in the market directly affects Apple's products in the markets. Thus, the management needs to adopt an effective strategy to differentiate its products to appeal to potential customers. If Apple Inc. exploits all its opportunities, it will efficiently resolve external factors that directly or indirectly threaten its organizational performance.
Continuous Increasing Labor Costs
Apple Inc. faces an external of gradual rising labor costs, which increases the overall production costs. An increase in production cost reduces the company’s performance due to a decrease in profit levels ( Belias & Rossidis, 2021) . Thus, there is a need for the management to adopt effective strategies to reduce the rising labor costs to maximize corporate performance.
Leadership Styles
Transformational leadership
Transformation leadership is a leadership style theory whereby a leader works with teams to locate changes needed to achieve specific goals ( Belias & Rossidis, 2021) . The top management at Apple applies this leadership style to achieve organizational objectives through consultations and group dynamics to find appropriate solutions to problems affecting organization operations.
Transactional Leadership
Transactional leadership is a form of leadership whereby a leader believes in a chain of command that involves order and hierarchical organizational structures ( Belias & Rossidis, 2021) . Apple's top management applies this leadership style to ensure all decision-making processes pass through the top managers.
Situational Leadership
Situational leadership is an adaptive leadership style applied by the management to handle and manage emerging issues to reduce their effects that might affect organizational performance. Apple Inc. uses this style to resolve emerging issues that affect its business activities.
Participative Leadership
Participative leadership is a leadership style that incorporates key stakeholders in decision-making and running organizational activities to improve corporate efficiency. Apple's CEO encourages teamwork to help achieve corporate activities. The top management engages managers at different levels to discuss issues affecting the company.
Servant Leadership
Servant leadership is a form of leadership style whereby the primary goal of a leader is to serve diligently. The current top management at Apple Inc. applies this style to give adequate supervision and direction to the public members to achieve organizational activities ( Belias & Rossidis, 2021) . The main of the top management is to thrive the company to make it accomplish its corporate activities.
Behavioral Leadership
Behavioral leadership is a theory of leadership that believes that a leader's success depends on behavior. It helps in instilling moral behavior amongst leaders to lead by example. Apple's top management applies this style to give an avenue how organizational activities should run to achieve corporate goals and objectives.
Trait Theory of Leadership
A trait theory focuses on identifying a variety of personality traits and characteristics that improve organizational performance ( Belias & Rossidis, 2021) . The human resources department at Apple Inc. applies this theory to recruit and hire competent personnel who can perform assigned roles diligently and with decorum to achieve organizational goals and objectives.
Strengths of the Current Leader
Apple's Chief Executive Officer is self-aware of how the technology industry operates. He makes strategic objectives based on the future of the industry ( Gehani, 2016) . As a result, this has enabled the company to achieve its goals because all top management decisions are effective and able to achieve organizational goals.
Apple’s CEO is aware of situations happening in the industry, the market and within the organization. It is prudent to understand what happens within the company to respond appropriately to achieve organizational goals ( Gehani, 2016) . A servant leadership style correlates with the CEO's strength because he leads by example.
The top management has collaboration skills that enable them to coordinate all organizational operations to achieve corporate goals. Effective collaboration empowers the company's CEO to connect all departments through consultation and effective communication to accomplish corporate goals ( Gehani, 2016) . Collaboration skills are directly collated with participative style since it engages key stakeholders in the decision-making process.
Weakness of the Current Leader
The current CEO fails to set clear and achievable expectations. Even though the CEO act as a servant leader who leads by example, sometimes he makes unclear objectives that are not achievable. The weakness directly aligns with a transactional theory of leadership because the CEO is the final decision maker hence can make decisions he feels are suitable for the company based on his judgment.
Excessive connectivity another weakness of the current CEO of Apple (Gehani, 2016). The CEO is connected to many sources, which reduces the chances of making the right decisions. A participative leadership style correlates with this weakness because Apple's CEO makes decisions upon holding discussions. Making consultations from various sources sometimes enables the CEO to obtain contradicting ideas, making the decision-making process challenging.
Lastly, the current CEO of Apple Inc. has poor guidance skills. The CEO has constantly failed to provide clear guidance on using Apple's earnings, leading to investing Apple's profits in unsuitable investments (Gehani, 2016). Transactional leadership relates to this weakness because it believes in the chain of command. The current CEO uses his top management position to lead the company's operations, but they are not all effective.
Recommendations
The current CEO of Apple Inc. has some weaknesses that can directly influence the success of the company. Therefore, it is prudent to address these weaknesses to improve his effectiveness and ability to perform organizational activities. The following are appropriate measures that should be considered to convert the CEO's weaknesses to strengths:
The CEO should adequately consult with key stakeholders, especially the board of directors, by making organizational expectations (Gehani, 2016). This actionable item relates to transactional leadership theory that encourages chain of command in making strategic corporate goals and objectives.
The current CEO should limit its connectivity to avoid contradicting suggestions that might adversely influence organizational performance (Gehani, 2016). This actionable item relates to participative leadership theory because it encourages the engagement of limited sources to make informed decisions.
Apple's CEO should engage and consult with the top management before making strategic decisions such as investing corporate earnings (Gehani, 2016). This actionable item relates to transactional leadership theory that encourages board of directors' involvement in making long-term corporate goals.
References
Belias, D., & Rossidis, I. (2021). Corporate Leadership and Corporate Culture in Start-Up Companies. In Corporate Leadership and Its Role in Shaping Organizational Culture and Performance (pp. 37-56). IGI Global.
Gehani, R. R. (2016). Corporate brand value shifting from identity to innovation capability: from Coca-Cola to Apple. Journal of technology management & innovation , 11 (3), 11-20.
Grofelnik, I., Sternad, M. A., & Ojsteršek, T. C. (2020). Corporate Culture In Relation To A Sustainable Logistics Organization. Business Logistics in Modern Management , 275-293.
Magwizi, C. N. (2020). An investigation of operational management in the organization, on the example of the Apple Computer, Inc (Master's thesis, Тернопільський національний технічний університет імені Івана Пулюя).
Mona, V., & Subagja, I. K. (2020). The Influence of Transformational Leadership Style and Organizational Culture on Organizational Performance with Emotional Intelligence as a Mediation Variables: a Case Study at the Jatimelati Bekasi Village Office. International Journal of Business and Social Science Research , 1 (1), 17-27.
