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Page 1: IB Extended Essay Sample on Apple Inc
Page 2: IB Extended Essay Sample on Apple Inc
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TASK: Extended Essay

Instructions

Write an extended essay on a topic of your choice from the Business and Management syllabus of the IB diploma. Your paper must follow all the International Baccalaureate (IB) Diploma Program guidelines. You will be assessed on the extent to which your work demonstrates a mastery of advanced academic skills in the area of study. For instance, the rubric will examine the analysis and presentation of information. The ability to construct and evaluate arguments as well as the creativity in solving problems will be assessed. Your essay should utilize a broad field of knowledge and apply concepts in the chosen field. An application of standard methods of data analysis and presentation will be evaluated. Your essay will be graded based on the extent to which the following items will be clearly stated and discussed:

1. Research question

2. Introduction

3. Investigation

4. Knowledge and Understanding of Subject

5. Reasoned Argument

6. Application of Analytical and Evaluative Skills

7. Use of Language

8. Conclusion

9. Formal Presentation

10. Abstract

11. Holistic Judgment

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Running head: THE APPLE INC. EXTENDED ESSAY 1

Extended Essay-Apple Inc.

Student Name

Institution

Completed: WritersPerHour.com

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Abstract The aim of the extended essay is to answer the question, ‘to what degree can it be said that the

management style and corporate culture are the source of Apple Inc.’s success? The concern is

addressed by utilizing the theories and models of Business Management on the company. An

examination of the leadership style and corporate culture established by Steve Jobs is done. It

determines the influence of the two factors on the corporation’s success. Secondary data from

magazines and journals is the major source of information for analyzing the research question.

The findings indicate that people in the organization are highly motivated with the leader’s

charisma to exceed their limits. A customer oriented culture of Apple Inc. prioritizes aesthetics

that improve the consumer experience. A management style of strict accountability and control

drives the teams to create great products that meet the set standards. It allows the company to

excel in marketing.

The findings also indicate that Steve Jobs’ personal values and vision formed the corporate

culture at Apple Inc. His ideals were integrated into the organization’s philosophy through the

dictatorial centralized structure. The ex-CEO prioritized superior designs and usability of the

innovations. It has gained consumer loyalty. Since the values form the corporation’s core image,

its success can be attributed to the norms. Finally, the article concludes that the essence of Apple

Inc. is based on the tradition established by Steve Jobs. Without the leadership style exercised by

the perfectionist, the company would be struggling just like other computer makers.

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Table of Contents

Introduction

Abstract 2 .......................................................................................................

Table of Contents 3 ............................................................................................

Introduction 3 ...................................................................................................

Methodology 5 ..................................................................................................

The theoretical constructs 5 .................................................................................

The management and culture of Apple Inc 6 ..............................................................

Background 6 .................................................................................................

Theoretical context 7 .......................................................................................

Management style 10 .......................................................................................

Corporate culture 12 ........................................................................................

Apple Inc.’s communication and motivational strategies 13 ..........................................

The role of leadership and culture 15 ....................................................................

Conclusion 19 ...................................................................................................

Bibliography 20.................................................................................................

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The aim of the extended essay is to answer the question, ‘to what degree can it be said

that the management style and corporate culture are the source of Apple Inc.’s success? The

corporation was an underdog that developed to an industry leader. It has attained superior

performance levels both in the computing, tablets and smartphone, and media players markets.

The corporation creates consumer desires and ensures a maximum impact upon satisfaction. It

has infiltrated most of the technology fields in communication. Apple Inc. has a large network of

supply partners, vendors and customers.

The essay will focus on the human resource perspective in the business and management

course syllabus. A pre visit on data collection established that most research has been conducted

on the organizational structure and the corporate culture of the corporation. Most of the analyzed

findings are concerned with the image and its marketing prowess.

The firm derives supernormal profits from the sale of its products and services. Although

marketing plays a significant role in the success of Apple Inc., the design of the offers also

contributes to the competency. The source of the corporation’s advantage is its research and

development. An essential segment of the department is the culture and leadership of its people.

Other aspects like the retail management will not be covered by the essay.

The core of the company’s management style is its co-founder, Steve Jobs. Many

authorities including the Harvard Business Review interchanged the words Steve Jobs and Apple

Inc. in their forums. The influence that the ex-CEO exerted on the corporation’s functioning is

immense that the two are inseparable. He was an exceptional leader in the technology industry

that no other personality has attained. Steve Jobs gained much public fame due to his charisma in

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meetings and product presentations. Being the most notable individual in shaping the firm, the

essay will also analyze the style of his management and its effect on Apple Inc.’s performance.

Methodology The data for studying the management style and corporate culture of Apple Inc. was

collected from secondary sources. Some of the fields included the magazines, articles, blogs and

case study reports. Many primary surveys were also conducted to gain a wide understanding of

the corporation. A deep description of the significance of the organizational structure and

leadership was essential for addressing the research question effectively. A succinct

comprehension of the underlying strengths of the company was needed.

An analysis of the above materials provided relevant knowledge about Apple Inc. for

contextualizing in the business and management models. The essay assessed all the factors that

contributed to the superior performance of the corporation. It compared the same to another firm

in the industry, Google Inc. The importance and relevance to the iPhone maker was deduced

from the relative significance as related to the other technology.

The theoretical constructs The essay utilized the body of theory from the human resource section of the Business

and Management syllabus. Major areas of focus will be the structure of the organization as

espoused by Mintzberg’s framework. The understanding will derive the most significant

elements in Apple Inc.’s operations. It will give a background to the company’s corporate

culture. The topic is closely linked in previous literature with the mode of operation used by the

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ex-CEO, Jobs. Therefore, the essay will examine both aspects using Charles Handy’s theory and

Blake & Mouton’s managerial grid technique.

The leadership style of Steve Jobs will be deduced from an analysis of the methods of

communication and motivation in Apple Inc. Although many models of understanding the

elements of culture and leadership exist, every organization has a unique situation. Therefore,

only the above stated ones will be utilized as they will represent Apple Inc.’s aspects accurately.

The textbook used in creating the essay is the IB authorized Business and Management by Paul

Hoang.

The management and culture of Apple Inc

Background The corporation develops its new products through closely managed teamwork. Design

teams are normally small in size and composed of expertise from all departments. Back in 1976,

the group only consisted of three persons working on the first Mac computer. However, it has

grown into a behemoth employing more than fifty thousand employees. In the beginning, the

new product developments were carried by individuals selected by the leader. Such talents were

identified and picked by the leader, Steve Jobs. Consequently, the output was superior that it got

the firm on a path with a cult following (Lussier, 2008). During the budding times, IBM and

Microsoft were the giants leading the technology industry. A scuffle in the management of Apple

Inc. led to a fallout and resignation of Steve Jobs by 1985. It arose from the initiation of costly

developments of newer items that was eating the corporation’s budget. The exit of the co-owner

made the company experience more challenges. First, the employees’ morale and confidence

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suffered. More issues arose from the teething difficulties of managing a growing business. Thus,

the performance of Apple Inc. shifted from failure to deterioration (Birkinshaw, 2013).

The return of Jobs to the firm in 1997 saw an improvement and growth in profits in the

successive year. A decade long has witnessed a sudden growth in the corporation with the share

prices rising suddenly. The sharp increment of its revenues has made Apple Inc. the most

achieved company in the computing and telecommunication technology industries. It has

designed superior gadgets that exceed the expectations of the customers. Furthermore, the

turnover of the products has surpassed the sales targets of its analysts.

The path to the current giant Apple Inc. is untold without recognizing the power of the

return of Steve Jobs. He made rapid changes that redirected the strategic focus of the company.

For instance, he managed the number of new product development in progress to a smaller size.

Secondly, the leadership invested in repositioning the corporation to a favorable image in the

industry (Isaacson, 2011). A discontinuation of the projects allowed the teams to concentrate on

the most profitable ventures.

The CEO was dedicated to the operations that he was only three times off duty in the year

2011 due to medical reasons. Tim Cook took over as the CEO following Job’s leave on health

grounds.

Theoretical context The first aspect that will be examined is the organizational structure of Apple Inc. It is

significant as it forms the elements of the corporate culture. For instance, it demonstrates the role

of the leader and the departments of research and development in shaping the philosophy.

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According to the 2011 Fortune Magazine release of Apple Inc.’s plan, the CEO is the center of

all activities. The article gave a chart that indicated the working relationships between various

levels. It is relevant to the research question since Steve Jobs was the leader at the time.

Accordingly, the department in charge of developing innovations is composed of

designers and engineers. Temporary small teams are managed to work on particular projects. The

flexibility existing within the structures implies that individuals could be merged into different

groups. Each job requirement would lead to formation and dissolution of units as it would fit the

squad manager. For instance, the corporation is known to recruit intelligent people that can work

on multiple tasks and move as much as the product or service requirement dictates.

An application of Mintzberg’s framework of structures is applied to Apple Inc.’s case.

The model analyzes an organization into six basic divisions (Bolman & Deal, 2011). At first, lie

the key decision-makers lying at the strategic climax. Secondly, the middle-line management is

followed by the operational core or processes. The techno structure is the fourth item made of the

systems and infrastructures of technology. Fifth is the support staff normally referred to as

supplementary. The last part of the chart is the culture of the corporation. In the following

diagram, all the six divisions are shown.

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!

An application of the above model in Apple Inc. shows that the authority of making

decisions is possessed at the apex by the centralized leadership. It classifies the company as an

entrepreneurial firm by Mintzberg’s theory. For instance, the coordination of operations is

moderated by the philosophy as the missionary organization. On the other hand, the workforce is

highly motivated by the highly held ideology.

According to Mintzberg, a centralized structure characterizes the firms with a focus on

entrepreneurship. It conforms to the design of Apple Inc.’s chart. A former employee

commented on the nature of decision making at the company in the Fortune Magazine article. He

posited that Steve Jobs was preoccupied with almost every critical and routine choice at the

company. It implied that making strategic courses at Apple Inc. was centralized to one authority.

Although the statement is true, it is also possible that other more influential persons participate in

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the decision making besides Jobs due to the size of the company. However, the centralization is

the order of the firm even though its extent is not clear. With Steve Jobs being concerned with

what food is served in the cafeteria to how the bus ferrying employees is designed, it is not easy

to draw the line.

Management style

The centralized structure of Apple Inc. was shaped by the leadership of the CEO. It

allowed the leader to manage directly and control even minute aspects of the organization. The

tendency is a significant autocratic trait of Steve Jobs in which he made all choices and simply

tells others to follow. Delegation of the critical actions in the environment is limited and the

leader exercises full control. According to the 2008 Wired Magazine author Leander Kahney, the

success of Apple Inc. was the result of Jobs’ management approach. The article posited that the

CEO has unrelenting follow up on the design and use of products. Consequently, he exerted

much control over the staff, corporate image and customers in order to position the company

favorably. Jobs was able to appeal to people and manipulate them towards his vision of Apple

Inc. Motivation of the followers coupled with his referent power made his leadership effective.

He understood how to connect with people and earn their followership. For instance, he related

to employees needs and drives their performance towards designing great products. On the other

hand, he addressed products in public presentations that attracted customers. For instance, he was

seated on a couch at home to create a user experience during the launch of iPad. An intimate

relationship between his products and the clients earned a cult following across the world.

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Based on the Blake and Mouton model, the leadership style expressed by Jobs will also

be analyzed. The CEO is regarded as task-oriented as his main concern was the end product for

the company. He utilized a managerial approach requiring the employees to ‘produce or perish’

in the highly competitive environment (Bowermann & Wart, 2014). Such a culture only called

for obedience to purpose lest one was replaced. Consequently, the vision of producing great

designs is uncompromised. However, the effect on staffs is feeling powerless over the role they

play on the final gadgets. Similarly, the labor force could have perceived their skills as

underrated. For instance, it implies that Jobs valued talents that yield expected results.

Whenever an executive failed to deliver the innovative capabilities, he would immediately

replace them. The categorization of Steve Job’s managerial style is shown on the following grid

(Egner, 2009).

!

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The influence of Steve Jobs on Apple Inc. was so immense that the two seems

inseparable. A review of Google searches shows that his name appears on above a quarter of

results of findings from the web. A comparison was made with other technology giants in the

world and tabulated below. The summary indicates Apple Inc.’s CEO is the one with a high

percentage of company webpages intertwined with the chief executive officer’s name mentions.

The percentage of appearance of Job’s name in the company webpages results from

overemphasizing his role by the media and the market. For instance, the fact could be true or

false. First, his marketing gigs during product launches and presentations would have amounted

to building his persona. On the other hand, his significance in development of Apple Inc. was so

profound that he is often mentioned in its literature. Therefore, the two extremes can explain the

fame of Steve Jobs compared to other technology giants’ CEOs.

Corporate culture The impact of the ex-CEO at Apple Inc. shaped the philosophy in the firm. Long after his

demise, the company’s values and vision revolves around his aesthetic ideas. The Fortune

Company name CEO %Search results with CEO name

Microsoft Bill Gates 3.96%

Amazon.com Jeff Bezos 0.04%

Facebook Mark Zuckerberg 0.30%

Google Eric Schmidt 0.08%

Apple Inc. Steve Jobs 24.30%

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Magazine article by Adam Lashinksy clarified the point. He argued that the organization

mirroring the person’s thoughts means that he didn’t have to be present and involved. All the

members of the organization understood the expectations of the leader although not all met him.

Charles Handy refereed to the scenario as a power philosophy where a single individual had the

authority over the whole team. The existence of the uniformity in culture is advantageous was a

success for an entrepreneurial culture. Although Jobs made all decisions, he allowed the workers

to innovate and design great products without faults without following the chain. A foundational

value that Jobs entrenched into the team is to create superior gadgets and not settle for less. The

goal of the CEO to focus on innovation is always accurately echoed by the successor Tim Cook.

Besides giving the members of the organization a sense of responsibility, the vision acts as a

value of their existence.

Apple Inc.’s communication and motivational strategies The direction of the company is not communicated in an official vision statement but

follows the leader’s guidance. He is regarded as the main stem with a clear knowledge of the

future that the firm should attain. Steve Jobs is charismatic and has created a purpose nobler

among the staff than just creating computers. He has set up a goal of doing new things in the

world and works to motivate the workforce for the mission.

The CEO’s direct communication style spreads his enthusiasm to the followers in a

motivational manner. Similarly, it can be harsh especially when it comes to confronting unmet

expectations from the engineers and designers. The leader has acted harshly on some occasions

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when some product and service failures were noticed on the innovations in the market. He

normally appointed a new manager for a group that would fail to satisfy customer requirements.

Steve Jobs offered the members of organization both intrinsic and extrinsic forms of

motivation. Intrinsically, the employees derived the sense of responsibility and value being part

of the Apple Inc.’s culture. The shared purpose of being part of a team working to make great

products gives the staff feelings of a noble responsibility. Therefore, they are driven to work hard

and reach up to the challenge. Extrinsically, the workers are working towards getting recognition

for higher performance. On the other hand, they are also shunning being reprimanded for missing

to fulfill the expectations. For instance, Jobs insisted on his role at ensuring that people work to

their best and being soft on them is not part of it (Rothwell & Cecil, 2006).

The company does not offer financial rewards to the employees but puts its staff on

development programs. When the managers handling engineers rate them highly, they rotate

them to work on other projects. The move increases the skill variety from the experience of

different tasks and innovations. An opportunity to rework on a failed innovation receives more

sign ups from designers and engineers. Such readiness and willingness is motivated by the vision

on working to create new products as the larger responsibility of Apple Inc.

Despite the fact that Steve Jobs created a demanding environment, the labor turn-over

was low. A Fortune Magazine interview with former employees established that the CEO

managed the commitment of the staffs during the hiring process. For instance, the respondents

posited that Jobs recruited people as specialists. Most placements utilized the best skills,

knowledge and strengths of the individuals. An articulation of the vision by the CEO to the hires

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is the point of gaining their dedication and adopting the values of Apple Inc. The team that

believes in the mission of creating great things remains happy despite the pressure. People stay

and work passionately because of the belief in the vision as posited by the head hunter at the

company (Brooks, 2014).

The role of leadership and culture A contingent theorist can classify Apple Inc. as the kind of a firm that proved that

different circumstances calls for unique management styles. It implies that no certain way is the

best guaranteed approach of leading an organization. Whereas most contemporary firms values

democracy, flexibility and openness, Steve Jobs took the opposite front (Dalton & Best, 2008).

On the contrary to other technology companies, Apple Inc. has been renowned for secrecy even

to its employees and its CEO is a corporate authoritarian. Whereas the different styles have been

effective to Google and Microsoft, the centralization has ensured that sales volumes soar for

Jobs’ side.

The rhetoric in Silicon Valley corporations is to impress the employees and improve

performance through making happier workers. Most firms have adopted the leadership styles that

promote transparency and open communication (Cummings & Worley, 2009). Other technology

firms like Google also have attained their status through motivating their labor force just as

Apple Inc. The corporate culture of the firm revolves around their unofficial motto attributing for

the members not to be evil. Mintzberg’s model can also examine the orientation of the

company’s management. The leadership style exercised at Google can be described as an

adhocracy. For instance, it is the approach for an innovative organization. The structure of

making decisions is decentralized and the employees are free to innovate on their products. It is

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an empowerment strategy that enables its workers to implement their creativity into the projects

they handle. The efficacy of the approach is in the success through products that originated from

personal creations like Gmail (Ferrell & Pride, 2015). Although the culture has proven results at

Google, it does not hold water at Apple Inc. The fact that the company has built globally selling

services from openness and flexibility of its structure indicates that the style is effective.

Therefore, both the two corporations managed using different leadership strategies have

succeeded in their goals. It raises a question as to whether there is any particular strategy that is

superior over other management philosophies. For instance, one could wonder whether Apple

Inc. would attain the same growth with a culture of openness and the ad hoc managerial style.

Similarly, such a scenario would pose a concern as to whether Google would have succeeded

with the corporate dictatorship of Steve Jobs. For instance, the two firms represent an exact

contra of work environments. Whereas an open environment exists at Google, Apple Inc. has a

strictly closed culture. Although their products and services differ, the industry is similar.

However, the markets differ as one is a sales oriented while the other is funded through

advertising platforms (Hoffman & Bateson, 2016). Therefore, the levels of taking risks differ

between the two companies. Whereas Google would innovate an idea that is difficult to move,

Apple Inc.’s management would not approve a creation that cannot be sold.

The trends in the approach by Larry Page have hinted to a shift to traditional style of

leading an innovative company. Just like Steve Jobs, he closed a program, Google Labs in favor

of focusing on a few projects. The move would possibly have been a move to ensure that the

company concentrates its resources in more promising products. Closure of the division that used

to test the efficacy of individual innovations from employees indicates a change in culture.

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Traditional environments of technology are composed of closed environments where secrets are

held. It lessened the freedom of workers to create and develop projects on their own course. The

real force behind the change is difficult to determine the direction. One can wonder whether it is

a move to adopt a style of leadership exercised at Apple Inc. or it’s a tactic at best. For instance,

if the slight centralization is a step to managing every product, then autocracy is creeping in

Google. It implies that the culture of closed innovation management is effective for technology

sector.

A comparison of the values of the search engine shows its preference for employee

empowerment and maintaining open communications (Verma, 2007). On the other hand, Steve

Jobs has a set of values setting standards for the kinds of products the employees work on.

Therefore, empowering the engineers and designers with freedom could not attain the goal of

differentiation. For instance, the Apple Inc.’s management style is derived from market needs

aiming at delighting clients. Although the approach of encouraging and empowering open

innovations has lifted other technology giants, it cannot apply in Jobs’ philosophy. For instance, a

centralized decision making authority allows exerting control on the finished products. Routine

control is exercised by weekly meetings on Monday with executives. The Fortune Magazine

established that the CEO had created and maintained a culture of strict accountability in the

meetings. During the review discussions, the groups reviewed every innovation under

development. Monitoring reports were given from every level of management to set the meeting

on the same page. It enhances the reputation and image of the firm before its customers. A

corporate dictatorship is the force that has shaped Apple Inc. to what it is today. A democratic

management like Google would not have allowed the excellence evident in iPhones and Macs.

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The consolidation of the mission and core values around all the innovations has enhanced

customer satisfaction. A clear futuristic goal of developing great things on earth has underlined

every innovation. Unlike the staggering technology firms like IBM, Toshiba or HP, Apple Inc.

has stuck to its values. The key to remaining relevant and competitive is influencing the market.

Steve Jobs’ side has been on the front of creating products and defines the user experiences. On

the other hand, fellow corporations have relied on determining trending services that they can

fulfill.

The core values and culture exhibited by the Apple Inc. management and team is defined

by the co-founder ex-CEO. He indoctrinated the practice of maximizing on designs as part of

product integrity. Steve Jobs has a hands-on engagement in idea development to packaging the

experience of the client. The decision of making customer-oriented gadgets not only enhances

satisfaction but also boosts the image of the company. He has shaped the corporate environment

before the journalists and the business analysts. A Harvard Business Review author stated that no

principle of management was observed by Steve Jobs. He never stopped following his intuitions

about the aesthetics he preferred to be at the center of the design process. Sometimes, the ex-

CEO would berate the employees for not following the guide on how they should work.

The leadership and the corporate culture have been very instrumental in ensuring the

success of the company even in marketing. A central authority has ensured that the products

developed and presented meet the market expectations. The brand would have failed to gain the

current position without the image created by its internal working environment. Steve Jobs’ style

of management wasn’t necessarily nice to the employees as he would openly criticize non-

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performance. Being a perfectionist, he would label people as ‘bozos’ for non-performance.

However, addition of charisma and intimate sharing of the product aesthetics motivated the

followers. Consequently, he has been a demanding leader that expects total commitment to the

purpose and delivery. Being visionary, he was fired but got his way back in 1987. He turned the

fortunes of Apple Inc. from a US $5 billion to a US $351 market value of the shares traded

publicly by the year 2011 (Howell, 2013). Therefore, the success of the corporation can largely

be attributed to the leadership style and corporate culture set by the co-founder.

Conclusion The organizational structure of Apple Inc. is influenced by the autocratic management

approach of Steve Jobs. It puts the senior managers in a position to contribute on almost every

decision in their products and services. The ex-CEO managed most aspects in his personal view

and created a person-centered aesthetics and values in the company’s innovations. With

charisma, he envisioned the staffs. It motivated them as they felt a commitment to a great

mission. A belief that the contribution and the work is very important drives the employees to

reach to lengths. A culture of strict accountability and much expectation ensures that the final

products are superior.

The essay answered the research question, ‘‘to what degree can it be said that the

management style and corporate culture are the source of Apple Inc.’s success? Both of these

interrelated aspects are great contributors to the performance of the giant company at present.

The two aspects have played a significant role in product excellence and effective branding.

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York: Wiley Publishers.

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London: Wiley.

Bowermann, K., & Wart, M. (2014). The Business of Leadership: An Introduction. London:

Routledge.

Brooks, A. (2014). Popular Culture: Global Intercultural Perspectives. New York: Wiley.

Cummings, T., & Worley, C. (2009). Organizational Development and Change. London: Pearson

Education Publishers.

Dalton, C., & Best, N. (2008). Integrated Management. New York: Butterworth-Heinemmann.

Egner, T. (2009). Behavioral Leadership- The Managerial Grid. New York: GRIN Verlag.

Ferrell, O., & Pride, W. (2015). Marketing 2016. New York: Wiley and Sons Ltd.

Hoffman, D., & Bateson, J. (2016). Services Marketing:Concepts, Strategies and Cases. New

York: IGI Global.

Howell, J. (2013). Snapshots of Great Leadership. New York: Cengage Learning.

Isaacson, W. (2011). Steve Jobs. New York: Cengage Learning.

Lussier, R. (2008). Management Fundamentals: Concepts, Applications, Skill Development. New

York: Cengage Learning.

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Rothwell, W., & Cecil, R. (2006). Next Generation Management Development: The Complete

Guide and Resource. London: John Wiley & Sons.

Verma. (2007). Services Marketing:Text and Cases. London: Wiely&Sons Publishers Ltd.

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