Organizational Analysis and Management: Challenges Affecting the Firm, Declining Stock Prices, Employee Departures, Causes of the Problems (Research Paper Sample)

Organizational analysis and management
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Abstract
Leadership has been a defining factor of the state of affairs in the nation, business or family. Global perception has radically changed even though cultural dominance has been dominant. Cultural disintegration has been rapidly partially due to modernism and integration of different cultures worldwide. Therefore, sources of leadership, especially under political leadership, have partially propagated on the basis of culture.
Introduction
Apple is one of the most valuable firms in the market based on stock market valuation. The company has offered exemplary services and unique products led by the smartphone and tablet markets (Boker, 2000). However, the company has experienced a growth trajectory since 200, after the return of Steve Jobs, the visionary co-founder leader. However, Steve Jobs died, and the helm of the company was left to Tim Cook (Bur, 2000). The debate has been rife on the distinct differences between Cook and Jobs. Steve Jobs is considered a visionary, abrasive, unique and an intuitive decision maker while Cook is a mild-mannered, cordial and mostly finds consensus as a decision-making tool. Varied opinions on the situation of the firm have been advanced primarily on the basis of Jobs era and Post Jobs era (Cross, 2004). The former was witnessed with the rapid growth of the firm and innovative products unrivaled by none in the market. The latter, the Post Jobs era, now commonly referred as the Cook’s age, has witnessed a mixed bag of opportunities. The firm’s shares have nosed dived in the recent past, the smartphone and tablet market has been shrinking and employee departures of some of Steve’s Jobs main circle (Gladwell, 2000).
The essays attempt to elaborate on the challenges facing the firm on the basis of the soft skills the current executives have unlike the previous management led by Jobs. The essay further elevates the variables through the concepts of organizational behavior to explain on evident concepts and principles used. The essay further scrutinizes the causes of the challenges and offers solutions and recommendations that relate to the effective change in the firm. However, the company relies on the organization, the management, the culture adopted and ways of effecting changes in the business.
Challenges affecting the firm
Every firm faces internal and external challenges relating to the business. There has been a bubble in technology company in recent years especially in the United States (Grant, 2014). The nation hosts many technology companies such as Google, arguably emerging competitors to Apple. The sector has witnessed rapid innovation of products with the culmination of smartphones and tablets (Grant, 2013). Apple has recently undergone succession after legendary co-founder and chief executive demise. The essay highlights some of the challenges faced by the firm on the basis of soft differential skills between the two leaders.
Declining stock prices
The stock market is arguably the most fluctuating investment asset. The securities market is believed to fluctuate according to cycles faced by the firm (Kilworth, 1990). Apple stock has been recently trading below the high of US$ 700; last reached in 2012. During the period, Cook was in charge though analysts presume the short time after taking over should not over varied optimism rather than a long-term look at Cook’s Performance. Contrastingly, revenues for the firm have been on an upward trajectory since the death of Steve Jobs. However, critics are against Cook’s performance citing Jobs would have done more. During Cook’s tenure investors have earned healthy dividends, unlike Job’s era where the firm retained earnings. The stark contrast between the two elaborates on the different thoughts for the future of the company. Cook focuses on all the facets of the business. During the uproar for the Map app disaster, Cook flew to China to offer the firm’s utmost regret, that was a stark contrast of the abrasive Jobs, whom analysts believed would not have travelled to China. Furthermore, the bruising battle with Samsung supported by Jobs would be different under Cook, especially since settling a feud with Google.
Employee departures
Power is derived from the relationships with the employees. Steve Jobs highly considered the best performing workers and disliked the average performers. During Jobs reign, frequent delays in launching of new products were related to the reliance of the best performing workers too few to meet deadlines. However, Jobs was surrounded by gurus in various departments of the business (Pfeffer, 2010). Scott Forstall was an ally of Steve Jobs and headed the IOS division. Forstall was regarded more similar to Steve Jobs. Forestall was regarded creative, egocentric, energetic and a legitimate successor to Steve Jobs. Furthermore, both were fans of skeuomorphism in software engineering. After Scott’s departure Cook elevated John Ive to the head of all design and new head of software engineering, Craig Federighi. Since Cook took over, the chief executive has been pursuing to increase the number of directors on the board as most are considered Jobs loyalists. The stark contrast explains the distinct characteristics of the two leaders. While Steve Jobs excelled with his abrasive, dictatorial and intuitive abilities to enhance creativity, though haphazardly in nature. Cook has chosen a clearer path creating structures through the new positions and delegated decision making amongst employees. Consequently, the incumbent chief executive officer is different from Steve Jobs. Steve Jobs was visionary, but Cooks attempts to focus on consistency. Both leaders have used the power of differently articulate policies or changes in the firm. Furthermore, changes were more accepted across the firm.
Causes of the problems
The challenges facing Apple relate to the evident woes facing the market. Market perceptions elaborate on the firm’s performance. Apple has been consistent on returns for investors but still performs poorly in the stock exchange. The essay elaborates on the actual problems belittling the firm.
Competition
Competition in the devices market has heated up as more device makers use Google’s Android platform. Recently, Nokia announced plans to utilize the Android platform on the basis of popularity in the devices market. Some of the firms that use the Android platform include Samsung. Motorola, Wiko, Huawei, and LG. However, Apple increased market share from 37% to 39% of the devices market in the USA. Therefore, the debate has been rife on IOS unfriendliness to the end user through apps for the end user. Moreover, the software exclusivity has been a subject of concern especially as more phone devices use the Android platform. Increased competition has been expressed as one of the factors of the poor showing in the stock market. Furthermore, the perception of seamless succession has not fully convinced the investors. Jurists are yet to rate Cook’s performance especially regarding the rather shorter period in the firm, unlike Steve Jobs. Furthermore, launching of new products has been slower under Cook, leading to queries on the ramifications of innovation Jobs may have left. Jobs led the firm to increased growth and dominance in the devices market where the market was logically new and growing. However, differing soft skills between Cook and Jobs, elaborate on differing market tactics employed during both reigns. Jobs was more abrasive and foresighted and focused on the core business of the firm. Moreover, Jobs presided over the acquisition of related firms and low valued companies, unlike Cook, who has overseen the acquisition of Beats Music and Electronics. The deal was the priciest acquisition by Apple. The example explains that Cook considers himself a manager and allows for diversity while Jobs was an innovator that led from the front. Furthermore, Cook delegated a launch of the firm’s products to Craig, a widely publicity event, unlike Jobs, who presided all devices launch.
Management differences
Management styles elaborate on the relationships between employees. The models explain the culture of the firm and performance of the firm. Recently, governance mechanisms have been forwarded to explain the importance of the management structures. Corporate governance has been used to operate businesses more transparently, produce environmental friendly products and serve soc...