Leadership is that ability of the individual or a management to set and achieve the challenges by inspiring others to perform well. Good leaders help themselves and others to do the right things. Leadership is about mapping out where the followers need to go to win as a team or an organisation (Ruggieri and Abbate, 2013). For being, a good leader there are various leadership styles has been provided such as charismatic, bureaucratic, democratic, laissez-faire, autocratic, servant, transactional and transformational leadership style. The given case study will provide its focus mainly on two leadership styles these are Transactional leadership style and Transformational leadership style. Transactional leadership style is leader uses punishment and reward to motivate its followers, in this style the leader focus on enhancing the current situation of the organisation by developing steps and by controlling the organisational activities (McCleskey, 2014). The main purpose of the transactional leadership style is to overhaul the corporate culture and to enhance current procedures and policies. In a transformational leadership style, the leader uses their enthusiasm and influencing power to motivate their followers or team members to work for the benefit of the organisation. The transformational leaders find the need of change in the existing organisational culture, and then provide vision to the team members to implement and incorporate change (Odumeru and Ogbonna, 2013). Transformational leaders act as a motivator and a role model.
Apple Inc. is the America based multinational company that has its head office at Cupertino, California. The founders Ronald Wayne, Steve Wozniak and Steve jobs established the company in the year 1976 (Piao and Kleiner, 2015). The company mainly deals in developing, designing, and sells of consumer electronics, online service and computer software. The application software of the company includes Mac App Store, Apple music, iTunes stores, and software of the company includes macOS, iOS operating system, iLife, iWork etc. The hardware in which the company deals include iPhone, iPad, Mac, iPod, Apple TV, Apple watches etc. Apple is the most successful company in the world and the business of the company is been spread across the globe by 2018 the company is operating 500 retail stores worldwide. The Net income of the company in 2017 is approx. US $ 48.351 billion (Niebuhr, Vobe, and Brem, 2017). The success of the company purely depends on the leadership of the top management. The success of Apple is also depending on the leadership of its leader the two, main leaders who have to lift the company to this much height are John Scully and Steve Jobs. Both John Sculley and Steve jobs were in the position of CEO in Apple Inc. and both have performed really well to put the company on top.
John Sculley was born on 6 April 1939 he is an entrepreneur, investor and American businessperson. In the year, 1970-1977 John Scully was the vice present of the Pepsi-Cola but in 1977 he, left the job and join Apple Inc. as a Chief executive officer he held the position until 1993 (Hunt and Fitzgerald, 2018). In 1983, he was a top paid executive with the total annual salary of US $ 10.2 million (Pryor, 2015). John Scully is a great leader who has contributes to the success of Apple Inc. The leadership style John Sculley adopted was Transactional leadership style. John Scully is a transactional leader it is interchangeably known as managerial leadership. The main aim of a transactional leader John Sculley is to inspire their followers to adopt positive changes. He is dedicated fully to his work and has a remarkable business vision. He is the type of leader who always expects best from his subordinates and for that, he implemented the reward and punishment strategy. The top four lesson the leadership style of the John Sculley is- he is a great leader who always looks ahead to solve the big consumer problems- he believes that a great leader is a person who always put the problems of the customers first and plans the activities of the business accordingly (Renko, Tarabishy, Carsrud and Brannback, 2015). He states that the happy customers are the key to the success of every business. Secondly, he believes in no matter what age the leader has or at what level they reach just provide focus on learning new things. He is the risk taken and in the third lesson, he states that a leader should be a person who was always ready to take a risk and learn to adapt to changes. In the fourth lesson John Sculley state that a leader cannot always do everything better just try and if get failure never got disappointed try it again.
To understand the effect of the leadership style of John Sculley on the financial status of the Apple Inc. the above-stated graph is been taken. The graph is containing the 40 years revenue growth of the company starting from 1977 until 2015. On the X-axis of the graph years are mentioned, on the Y-axis profits are mentioned, and the green line shows the amount of profit received by the company in a particular year. In 1983, John Sculley has joined the company as a CEO of the company. It is clearly mentioned in the graph that from the year when John Sculley becomes a CEO of Apple Inc the company never suffer loss and the graph of the profitability is going up. In the supervision of John Sculley, the sale of Apple increased from $ 800 million to $ 8 billion. In 1993, John Sculley left the Company.
The main credit of Success of Apple Inc. belongs to the founder Steve Jobs, in 1985, he left the company but when in 1996 Apple has struggled from the crises, they brought Steve Jobs back into the business as a CEO of the company in 1997 (Halsall, 2016). To run the business successfully Steve jobs adapt the Transformational leadership style. Transformational leadership style usually considered to be the best leadership style that is to be used in the business. Steve jobs employ empathy and rapport to engage its subordinates. He is widely regarded as an iconic transformational leader (Streeter, 2015). He is the hard worker and always motivates his employees to think better and bigger. He always inspired the employees to create extraordinarily successful products. He not only expects the best from the team but he always work hard to be the best at everything he does. The best part of his leadership is he always takes new initiatives to create something new and innovative. Steve Jobs is good at communication at with the help of his communication skill he increases the team engagement and inspires their subordinates to become more productive at work (Alos-Simo, Verdu-Jover, and Gomez-Gras, 2017). He is the kind of leader who always motivates its employees to do the work effectively and creatively (Donner, Gridley, Ulreich and Bluth, 2017). The main focus of the Steve Jobs is on the research and development and with the help of research and development, he wants that the company employees develop the innovative products that help the company in getting competitive advantages and will help them in generating revenue.
To understand the efforts made by Steve jobs in the success of the company here the graph is been taken. The graph is stating the profits earned by the company in 20 years from when the company has re-hired Steve Jobs as a CEO until 2016. In 1997, the company has re-hired Steve jobs when the company has suffered a huge crisis. In the graph on the X-axis, the years are mentioned and on the Y-axis profits amount in billions are stated. In addition, the blue bars are showing the amount of profit earn by the company in the particular year. When in 1997 the Steve Jobs has joined a company in that year company, earn a profit of $ 7 billion. There were continuous growth is been seen until 2000 and in the year 2001-03, a downfall is been noticed and again in 2005 the company has started earning continuous profits and until when Steve Jobs remains the CEO of the company. In last year of Steve Jobs leadership, the company has earned Approx. $ 115 billion.
Both the leaders John Sculley and Steve jobs had different types of leadership styles John Sculley has a transactional leadership style and Steve Jobs had a transformational leadership style. Both have done well for Apple Inc. and the leadership style of the leaders help the company in generating revenues on the continuous bases. There is a wide difference between the leadership styles of the leaders of Apple Inc. but they both have done well. In comparison to the John Sculley, Steve Jobs has generated the maximum amount of revenue for the company. The leadership style of Steve Jobs is considered to be better than the leadership of John Sculley. Steve Jobs was the kind of person who always motivates its employees develops something new or innovative and this approach of Steve jobs had leaded the business of the company to the heights. By his continuous efforts, the company has become a top most company in terms of revenues.
References
Alos-Simo, L., Verdu-Jover, A.J. and Gomez-Gras, J.M., (2017) How transformational leadership facilitates e-business adoption. Journal of Industrial Management & Data Systems, 117(2), pp.382-397.
Donner III, E.M., Gridley, D., Ulreich, S. and Bluth, E.I., (2017) Succession planning and management: the backbone of the radiology group’s future. Journal of the American College of Radiology, 14(1), pp.125-129.
Halsall, R., (2016) The role of CEO (auto-) biographies in the dissemination of neo-ascetic leadership styles. Journal of Leadership, 12(5), pp.515-537.
Hunt, J. and Fitzgerald, M., (2018) STYLES OF LEADERSHIP. Journal of Leadership,3 pp.62.
McCleskey, J.A., (2014). Situational, transformational, and transactional leadership and leadership development. Journal of Business Studies Quarterly, 5(4), p.117.
Niebuhr, O., Vobe, J. and Brem, A., (2017) What makes a charismatic speaker? A computer-based acoustic-prosodic analysis of Steve Jobs tone of voice. Journal of Computers in Human Behavior, 64, pp.366-382.
Odumeru, J.A. and Ogbonna, I.G., (2013) Transformational vs. transactional leadership theories: Evidence in literature. International Review of Management and Business Research, 2(2), p.355.
Piao, M. and Kleiner, B., (2015) Excellence in the Electronics Industry: The Comparison of the Organizational Culture among Apple Inc., Samsung Electronics and Google Inc. Conflict Resolution & Negotiation Journal, 4(1).
Pryor, M.G., (2015) Game-Changing Strategies to build Billion-Dollar Businesses. Journal of Applied Management and Entrepreneurship, 20(2), pp.119.
Renko, M., El Tarabishy, A., Carsrud, A.L. and Brannback, M., (2015) Understanding and measuring entrepreneurial leadership style. Journal of Small Business Management, 53(1), pp.54-74.
Ruggieri, S. and Abbate, C.S., (2013). Leadership style, self-sacrifice, and team identification. Social Behavior and Personality: an international journal, 41(7), pp.1171-1178.
Streeter, T., (2015) Steve Jobs, romantic individualism, and the desire for good capitalism. International Journal of Communication, 9,pp.19.
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