Whether this works or fails, the management’s style of leadership will probably be disproportionately praised or criticized. It is always easy for analysts to be wise in hindsight. Mashable, Inc. All Rights Reserved. Therefore, if you have seniority at Apple, odds are, you're a white male. They were put on the spotlight as 'here's tokenism,' and he didn't seem to accept that.". Apple reported 32 percent of its current employees are women, 9 percent are black and 12 percent are Hispanic and over the last year 54 percent of new hires are minorities: Meanwhile, there are other tech companies that refuse to release any data on diversity, whether it be hires or current employee count. In my view, Apple’s problems are primarily caused by external events. is a global, multi-platform media and entertainment company. Today we blame the current Apple management’s over-dependence on a single product for the problems with investors. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porters Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. So, three of Apple's 11 members of senior leadership joined at that level. Yet the evidence doesn’t back this up. And decades ago, diversity hiring practices weren't nearly as important or scrutinized as they are right now. When a company performs well, we tend to evaluate its leader in way that is too positive. The other five members, or 62.5 percent, are white men. Ltd South Beach Tower 38 Beach Road #17-11 Singapore 189767, IMD Chemin de Bellerive 23 PO Box 915 CH-1001 Lausanne Switzerland Tel: +41 21 618 01 11 [email protected] www.imd.org, Copyright © 2006-2020 IMD - International Institute for Management Development. One of those women is Asian, and the other's white. Fully customizable schedule. This post was updated with more insight on the specific claims of Maldonado's case. That's all it is. Apart from this, the company also develops and manages numerous software programs including iOS, Final Cut Pro, iCloud and many more (Hoch et al., 2015). Uber has more than 9,000 office employees and has not met diversity advocate Jesse Jackson's request for a report by mid-February. That's racism plain and simple. Things look slightly better when you take a step down the ladder: Apple's seven VPs include two women, both of whom also bring underrepresented minority representation to the team. The increasing competition from Chinese manufacturers such as Huawei and Xiaomi – but also from Google, LG and Samsung – has eroded the once dominant position of Apple in the smartphone market. Cook explains in his recent letter that, with the exception of the services business – which includes the App Store and iTunes and accounted for 14% of revenues in financial 2018 – all the other Apple businesses will be “constrained”. Apple has started the new year by disappointing investors with its first profit warning in 17 years. This revision caused the company’s stock to drop 10% to its lowest level in 21 months. For a 40-year-old company “that’s laughable. Bell, is a black man. "Apple has rarely ever had many people of ethnic or racial diversity within their board or senior leadership," he told The Verge. Apple is no longer seen as a growth stock, but rather a dividend-paying, profitable company whose value is less based on a bright future than what is currently being delivered to its shareholders. I already get much more from my current device than I need. This is due to fewer carrier subsidies, according to Apple – but also, in my opinion, to the fact that the new devices do not have much more to offer. Moreover, the report contains analyses of Apple business strategy, organizational structure and organizational culture. With respect to markets where the iPhone has enjoyed a more dominant position – especially the US – Apple recognizes that customers don’t replace their devices as often as they used to. Since its formation, Apple has been a leading manufacturer of technology in the company. Out of the 11 people who in a C-level position or a senior vice president, all are white, and there's only one woman. In the same quarter last year, Apple brought in US$88.3 billion on a gross margin of 42%. Among its other revenues, iPad sales are one-tenth of iPhone sales eight years after tablets were launched. Two are female. "Tim Cook was very defensive, and he presented the two black people on their leadership—but not senior leadership—as a sign of their diversity," Maldonado told The Verge. Phil argues that perceptions of performance contaminate the assessments that we make about managers and leaders. As Phil Rosenzweig explains in his book, Apple’s story is not a new one. It is time to find culprits, and I will not be surprised to see headlines like, “Tim Cook is not up to the Job(s)” or: “Seven years after Jobs’ death, Apple is starting to rot.” We mustn’t believe them, however. It worries me that Apple is a single-product company. For a 40-year-old company “that’s laughable. de Bellerive 23 P.O. It isn't the first time the call for racial diversity at the top has been made. If Apple sticks to its habit of promoting from within, the diversity picture at the top of the company might soon start shaping up. The reason why is explained in The Halo Effect, which was published by my colleague Phil Rosenzweig in 2007 – in my opinion one of the most important books in the history of management. The report also comprises discussions of Apple marketing strategy, ecosystem and addresses issues of corporate soci… That's what a small group of shareholders, led by vocal investor Tony Maldonado, have been pushing. We're using cookies to improve your experience. Apple now expects revenues of US$84 billion (£66 billion) with a gross profit margin of 38%, having expected between US$89 billion and US$93 billion. Mashable, MashBash and Mashable House are among the federally registered trademarks of Ziff Davis, LLC and may not be used by third parties without explicit permission. The proposal specifically addresses racial diversity in senior leadership, but Apple also has unique cred in diversity: Tim Cook was the first openly gay CEO of a Fortune 500 company. Image: MARCIO JOSE SANCHEZ/ASSOCIATED PRESS. 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