What Explains the Lack of Innovation at American Express

Ch apte r 12. Mini -Case

Can You Foll ow an Icon and Succeed? Apple and Tim Cook After Steve Jobs

Don't use plagiarized sources. Get Your Custom Essay on
What Explains the Lack of Innovation at American Express
Just from $13/Page
Order Essay

Stev e Job s was App le’s co -founde r an d icon ic CEO. A nu mbe r of obse rve rs fee l tha t muc h of

App le’s pheno mena l success , espec ially after 2000 , is a produc t of his “gen ius ” an d leade rsh ip.

Becaus e of this an d a leade rsh ip style tha t va ries sign ifican tly from his predecesso r’s, so me

hav e ques tione d Tim Cook ’s ab ilit y to succee d Job s as App le’s CEO. Yet, in 2014 , seve ral yea rs

after assu ming the CEO pos ition , App le ha d wha t Tim Coo k referred to as an “unbe lievab le yea r”

give n tha t the firm so ld 20 0 milli on iPhone s an d gene rated $20 0 billi on in revenue . App le’s stoc k

price inc rease d by 65 pe rcen t, an d the co mpany ’s marke t va lue reache d more tha n $70 0 billi on ,

the larges t eve r of an y U.S. firm. At the time, App le’s marke t va lue more tha n doub led tha t of

Microso ft. Prior to assu ming the CEO pos ition , Cook ’s primary expe rienc e ha d bee n as manage r

of ope rations ; his succes s in this do main led to his appo intmen t as CO O prior to assu ming the

CEO role. Interes ting ly, a sign ifican t pe rcen tag e of App le’s sa les flow from produc ts deve lope d

an d introduce d to the marke t unde r Jobs ’ leade rsh ip. As such , the jury is still ou t on Cook ,

espec ially with rega rd to deve lop ing marke tplac e successe s in the form of ne w produc ts, task s at

which Job s exce lled .

Job s an d Coo k hav e differen t leade rsh ip styles . So me though t Job s was ruthless , impu lsive , an d

almos t man iaca l in deve lop ing ne w produc ts an d find ing pa ths throug h which the y beca me

marke tplac e successes . Cook ’s kno wledg e an d sk ills do no t mak e him an expe rt in produc t

deve lop men t, des ign , or marke ting . Becaus e of this, he de lega tes thos e respons ibiliti es . As the

firm’s ke y strateg ic leade r, Coo k tries to bu ffer an d maintain App le’s co rpo rate cu lture tha t

deve lope d large ly du ring Jobs ’ tenu re. Thus , the emphas is remains on innova tion tha t is va lue d

in the marke tplace . To suppo rt this emphas is an d to nu rture the firm’s all-impo rtan t cu lture, Coo k

hires talen ted ind ividua ls to join the top manage men t tea m who blen d well with the cu lture. He

ha s mad e so me ve ry goo d hires , suc h as Ange la Ah rend ts who no w head s App le’s ve ry

impo rtan t retail stores . As a leade r, Coo k is les s emotiona l in his style an d ac tion s co mpa red to

Jobs . So me refer to this aspec t of Cook ’s style as a “measu red emotiona l app roac h to

leade rsh ip.” He empo wers his top manage men t tea m membe rs in way s tha t allow eac h of the m

to manag e the func tiona l area for which the y hav e respons ibilit y. He also encou rage s eac h tea m

membe r to adop t a long -run pe rspec tive while lead ing .

Obse rve rs hav e bee n ab le to high ligh t othe r difference s be twee n Cook ’s an d Jobs ’ strateg ic

leade rsh ip app roaches . Compa red to Jobs , Coo k more regu larly sha res the limeligh t with his

leade rsh ip tea m, spo tligh ting the ir con tribu tion s while do ing so . One ana lys t sugges ted tha t Coo k is a goo d leade r who bu ilds an effec tive tea m aroun d him. W ith respec t to strateg ic

cho ices , Cook ’s dec ision s hav e resu lted in major acqu isition s (e.g., an aud io co mpan y for $3

billi on ) an d deve lop ing en terprise so lution s for co rpo rate IT un its; Job s oppose d ac tion s of thes e

types . Unde r Cook , App le formed an allianc e with IBM to deve lop en terprise app lica tion s with a

focu s on the iPad , espec ially the ne w an d large r ve rsions .

During Cook ’s ea rly tenu re as CEO, App le introduce d seve ral innova tion s inc lud ing the App le

watch , which en tered the marke t in Ap ril 2015 . Th is produc t’s marke tplac e succes s is ye t to be

de termined ; initial repo rts sugges ted tha t de man d exceede d supp ly, caus ing App le to inc reas e

produc tion . In add ition , hints prov ide d by Coo k sugges t tha t App le may be plann ing to en ter the

telev ision marke t. Mos t impo rtan tly, Coo k claims tha t App le’s goa l is to chang e the way peop le

work. Th e firm intend s to focu s resea rch an d deve lop men t efforts to deve lop produc ts to ach iev e

this ob jec tive .

In mid-2018 , so me ana lys ts were ques tion ing the de lay s App le was encoun tering whe n

introduc ing produc ts to the marke tplace . Of three major produc t launche s unde r Coo k sinc e

beco ming the firm’s CEO in 20 11, AirPod s ea rbud s an d the HomePo d speake r misse d pub licly

announce d sh ipp ing da tes . Th e App le W atch , men tione d above , en tered the marke t later tha n

the firm des ired , initially caus ing cus tomers to expe rienc e lon g wait times to bu y the produc t. Th e

App le Penc il an d Smart Keyboa rd, two critica l accesso ries for the iPa d Pro, also en tered the

marke t later tha n announce d initially. On the othe r hand , App le’s first qua rter 201 8 resu lts yielde d

all-time high s in bo th revenu e an d ea rnings . In an ove rall sense , on ly the march of time will yield

ins igh ts neede d to de termine if as CEO, Tim Coo k was a succes s as Stev e Jobs ’ successo r.

W ith a marke t va lue of ove r $90 0 billi on in ea rly 2018 , it see ms tha t as App le’s ke y strateg ic

leade r, Cook ’s effec t on the firm he was lead ing was pos itive .

Sou rces : 2018 , Transc ript: App le CEO Tim Coo k on the co mpany ’s 201 8 Q1 ea rnings , iMore,

ww w.imore.co m, Feb rua ry 1; T. Mick le, 2018 , Tim Coo k stumbles at his spec ialty, sh ipp ing App le

produc ts on time, W all Stree t Jou rna l, ww w.wsj.co m, Janua ry 6; R. Sa fian , 2018 , W hy App le is

the world’s mos t innova tive co mpan y, Fas t Compan y, ww w.fas tco mpan y.co m, Feb rua ry 21 ; T.

Lo ftus , 2015 , Th e morning do wnload : App le will ‘chang e the way peop le work,’ CEO Tim Coo k

says , CIO Jou rna l, blogs .wsj.co m, Janua ry 28 : 2015 , App le’s Tim Coo k cites reco rd sa les an d

‘unbe lievab le’ yea r, New York Times , ww w.ny times .co m, March 10 ; A. Chang , 2015 , App le CEO

Tim Coo k is forging an unusua l pa th as a soc ial ac tivist, Lo s Ange les Times, ww w.latimes .co m,

March 31 ; A. Lash insk y, 2015 , Beco ming Tim Cook , Fo rtune , Ap ril 1, 60 –72 ; T. Higg ins , 2015 ,

App le iPhone s sa les in China ou tse ll the U.S. for first time, Bloo mbe rgBus ines s,

ww w.bloo mbe rg.co m, Ap ril 27 ; J. Le wis, 2015 , Tim Cook : A cou rageou s innova tor, Time, Ap ril 27 , 26 ; J. D’Onfro, 2015 , Tim Coo k droppe d a major clue abou t App le’s nex t big produc t, Yaho o

Finance , finance .yahoo .co m, Ap ril 28 .

Cas e Discuss ion Ques tion s

1. W ha t make s a CEO’s job so co mplex ? Use the cha lleng e Tim Coo k face s as Stev e Jobs ’

successo r to prov ide exa mples tha t suppo rt you r ans wer.

2. Tim Coo k ca me from App le’s interna l manage rial labo r marke t to succee d Stev e Jobs . In you r

view, was us ing the interna l manage rial labo r marke t the bes t app roac h to follow whe n

rep lac ing Jobs ? Use materials in the chap ter rega rding the interna l an d ex terna l manage rial

labo r marke ts to exp lain you r ans wer.

3. Give n the ir differen t leade rsh ip styles , desc ribe the difference s yo u se e in App le’s cu lture

unde r Tim Cook ’s leade rsh ip co mpa red to the cu lture in App le whe n Stev e Job s was CEO.

4. Using information in this Mini-Cas e as well as add itiona l materials ava ilab le to yo u via sea rches ,

ho w do yo u eva lua te Tim Coo k as a CEO? Is he an effec tive strateg ic leade r or no t? Use

exa mples from the chap ter’s discuss ion of “Ke y Strateg ic Leade rsh ip Ac tions ” to jus tify you r

ans wer to this ques tion .

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
error: Content is protected !!
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GOODESSAY