Mini-Case Can You Follow an Icon and Succeed? Apple and Tim Cook After Steve Jobs Steve Jobs was Apple's co-founder and iconic CEO. A number of observers feel that much of Apple's phe- nomenal success, especially after 2000, is a product of his \"genius\" and leadership. Because of this and a leadership style that varies signicantly from his prew decessor's, some have questioned Tim Cook's ability to succeed Iobs as Apple's CEO. Yet, in 2014, several years after assuming the CEO position, Apple had what Tim Cook referred to as an \"unbelievable year\" given that the rm sold 200 million iPhones and generated $200 billion in revenue. Apple's stock price increased by 65 percent, and the company's market value reached more than $700 billion, the largest ever of any US. rm. At the time, Apple's market value more than doubled that of Microsoft. Prior to assuming the CEO posi- tion, Cook's primary experience had been as manager of operations; his success in this domain led to his appointment as COO prior to assuming the CEO role. Interestingly, a signicant percentage of Apple's sales ow from products developed and introduced to the market under lobs' leadership. As such, the jury is still out on Cook, especially with regard to developing mar- ketplace successes in the form of new products, tasks at which lobs excelled. Jobs and Cook have different leadership styles. Some thought Jobs was ruthless, impulsive, and almost maniacal in developing new products and nding paths through which they became marketplace successes. Cook's knowledge and skills do not make him an expert in product development, design, or marketing. Because of this, he delegates those responsibilities. As the rm's key strategic leader, Cook tries to buffer and maintain Apple's corporate culture that developed largely during Iobs' tenure. Thus, the emphasis remains on innova tion that is valued in the marketplace. To support this emphasis and to nurture the rm's all-important culture, Cook hires talented individuals to join the top intends to focus research and development efforts to management team who blend well with the culture. develop products to achieve this objective. He has made some very good hires, such as Angela In mid-2018, some analysts were questioning the Ahrendts who now heads Apple's very important retail delays Apple was encountering when introducing stores. As a leader, Cook is less emotional in his style products to the marketplace. Of three major product and actions compared to Jobs. Some refer to this aspect launches under Cook since becoming the firm's CEO in of Cook's style as a "measured emotional approach to 2011, AirPods earbuds and the HomePod speaker missed leadership." He empowers his top management team publicly announced shipping dates. The Apple Watch, members in ways that allow each of them to manage mentioned above, entered the market later than the the functional area for which they have responsibility. firm desired, initially causing customers to experience He also encourages each team member to adopt a long- long wait times to buy the product. The Apple Pencil run perspective while leading and Smart Keyboard, two critical accessories for the Observers have been able to highlight other dif- iPad Pro, also entered the market later than announced ferences between Cook's and Jobs' strategic leadership initially. On the other hand, Apple's first quarter 2018 approaches. Compared to Jobs, Cook more regularly results yielded all-time highs in both revenue and earn- shares the limelight with his leadership team, spot- ings. In an overall sense, only the march of time will lighting their contributions while doing so. One ana- yield insights needed to determine if as CEO, Tim Cook lyst suggested that Cook is a good leader who builds was a success as Steve Jobs' successor. With a market an effective team around him. With respect to strate- value of over $900 billion in early 2018, it seems that as gic choices, Cook's decisions have resulted in major Apple's key strategic leader, Cook's effect on the firm he acquisitions (e.g., an audio company for $3 billion) was leading was positive. and developing enterprise solutions for corporate IT units; Jobs opposed actions of these types. Under Cook, Sources: 2018, Transcript: Apple CEO Tim Cook on the company's 2018 Apple formed an alliance with IBM to develop enter- Q1 earnings, iMore, www.imore.com, February 1; T. Mickle, 2018, Tim prise applications with a focus on the iPad, especially Cook stumbles at his specialty, shipping Apple products on time, Wall Street Journal, www.wsj.com, January 6; R. Safian, 2018, Why Apple is the new and larger versions. the world's most innovative company, Fast Company, www.fastcompany. During Cook's early tenure as CEO, Apple introduced com, February 21; T. Loftus, 2015, The morning download: Apple will several innovations including the Apple watch, which change the way people work; CEO Tim Cook says, CIO Journal, blogs. wsj.com, January 28: 2015, Apple's Tim Cook cites record sales and entered the market in April 2015. This product's mar- unbelievable' year, New York Times, www.nytimes.com, March 10; ketplace success is yet to be determined; initial reports A. Chang, 2015, Apple CEO Tim Cook is forging an unusual path as a social activist, Los Angeles Times, www.latimes.com, March 31; suggested that demand exceeded supply, causing Apple A. Lashinsky, 2015, Becoming Tim Cook, Fortune, April 1, 60-72; to increase production. In addition, hints provided by T. Higgins, 2015, Apple iPhones sales in China outsell the U.S. for first Cook suggest that Apple may be planning to enter the time, BloombergBusiness, www.bloomberg.com, April 27; J. Lewis, 2015, television market. Most importantly, Cook claims that Tim Cook: A courageous innovator, Time, April 27, 26; J. D'Onfro, 2015, Tim Cook dropped a major clue about Apple's next big product, Yahoo Apple's goal is to change the way people work. The firm Finance, finance.yahoo.com, April 28.Case Discussion Questions 1. What makes a CEO's job so complex? Use the challenge Tim 3. Given their different leadership styles, describe the differences Cook faces as Steve Jobs' successor to provide examples that you see in Apple's culture under Tim Cook's leadership com- support your answer. pared to the culture in Apple when Steve Jobs was CEO. 2. Tim Cook came from Apple's internal managerial labor 4. Using information in this Mini-Case as well as additional market to succeed Steve Jobs. In your view, was using the materials available to you via searches, how do you evalu- internal managerial labor market the best approach to follow ate Tim Cook as a CEO? Is he an effective strategic leader when replacing Jobs? Use materials in the chapter regarding or not? Use examples from the chapter's discussion of the internal and external managerial labor markets to explain "Key Strategic Leadership Actions" to justify your answer your answer. to this