Entrepreneurship and Venture Creation: Apple Inc - Case Study Example

Entrepreneurship and Venture Creation: Apple Inc. Case Study al Affiliation Introduction Apple Inc. was started in 1976 in California and incorporated in early 1977. It used the name Apple Computers for 30 years. In 2007, it changed the name from Apple Computers Inc. to Apple Inc (Martin, 2014). This change of name was as a result of the need to expand to the wider electronic market. Apple Computers Inc. had been concentrating on the computer market and with the change of name and focus; it was able to reach more consumers both in the USA and other world countries. By 2013, Apple Inc. had 46700 employees working on fulltime basis with another 3000 on temporary employment. It designs, manufactures and sells a wide range of hardware, PCs and computer software. Some of its products include iPhones, iPods, Apple Watch, iPad and the MacBook (Apple Inc., 2008b). Apple provides online services, for instance, the iOS operating system, iTunes Media and the Safari Browser. This treatise looks into the operations of the Apple Inc. with regards to the entrepreneurial approach which has been used by its Chief Executive Officers to remain competitive as well as lucrative in the global arena. Operations at Apple Inc. Apple Inc. was founded by Steve Jobs together with Ronal Wayne and Steve Wozniak in the year 1976. Initially, the venture was meant to develop personal computers and sell them to the US market. Steve Jobs headed the company in the initial years but later had to quit in 1985. He again returned in 1987 to rescue the organization from collapse. Jobs worked as the CEO of Apple Inc. until 2011 when he had to quit because of his medical health (Martin, 2014). He was later replaced by Tim Cook as the new Chief Executive Officer. Being a tech venture, Apple faces stiff competition from other technology firms in its various spheres of operation. In the smartphone segment, it has to compete with companies such as Samsung and Blackberry in order to get a bigger market share in the global arena. Its other rivals include Google, HP and Dell which all offer similar items like some of those that are developed and sold by Apple (Datamonitor PLC, 2009). The operations at Apple Inc. are majorly driven by innovation. It is a culture which was instilled by the first CEO of the company, Steve Jobs (Martin, 2014). Through innovation, the venture was able to not only come with unique products in the market but also cut a niche for itself as the one of the most creative business entities in the globe. According to Hill & Gareth (2009), the technology market where Apple Inc. operates in is very much dynamic that those companies which have not been innovative enough cannot remain relevant and profitable in the market. Technology and science is constantly changing and such businesses have made innovation the core of their operations. The other key factor which has influenced the success of the venture in the technology solutions market is the level of research and development which it engages in. Yoffie & Slind (2004) notes that Apple Inc. is constantly engaged in various research and development activities in order lead the competitors. A great deal of resources is allocated towards research and development so that the most advanced and novel items and products are developed. Majority of the items and products currently being sold by Apple Inc. are attributed to the R & D team. The teams work closely with the marketing and production departments in order to streamline the operations. Such practices ensure that the outcome of the entire process is something capable of giving it an upper hand in the global market. Unlike other businesses, Apple Inc. is involved in strategic partnerships which complement its research and development activities. Even in these undertakings and partnerships, there is normally a high level of secrecy to ensure that its innovative ideas are not compromised before they get to the global market (Peter & Ottensmeyer, 2005). With a very effective and well-resourced research and development team in place, Apple Inc. is constantly coming up with breathtaking products which allow the company to be above other companies in the technology market. Its products have continuously been linked to quality and perfection in all the markets where they are sold. Even with this kind of successes, the company is always engaging strategic management activities and implementing a variety of entrepreneurial approaches which encourage innovation to allow it increase its market share. Entrepreneurial Strategy at Apple Inc. Just like any other business and enterprise, Apple has relied on various approaches in order to increase its market share and guarantee its success. The operations have always been in line with the psychological theory of entrepreneurship. It is basically a theory that focuses on the various mental and emotional factors which drive the leaders and owners of entrepreneurial ventures towards a given direction of operation (Galbraith, 2003). The entrepreneurs who rely on this theory demonstrate a certain kind of desire to achieve what they feel is vital and important to them. Such entrepreneurs and managers believe that their internal locus of control has the ability to influence the world around them. Thus, they strive to ensure that things are done as per their mental and emotional desires. The psychological theory of entrepreneurship approach at Apple Inc. began with its first and most recognized CEO, Steve Jobs. According to Nonaka & Yamanouchi (2005), Steve Jobs’ internal desires and beliefs gave Apple Inc. the direction which it has used for all the years to become one of the best technology firms in the world. Steve always believed that it was possible to come up with perfect products for the consumers. His perfectionism approaches incorporated all the aspects and operations of Apple from research and development to manufacturing, sales and distribution. The outcome is evident from the level of revenue and the profit that Apple continues to make in the global market. By incorporating the belief that perfectionism will allow the company to transform the technology market by coming up with unique and novel products in its operations, Apple has been able to become a global trend setter. It combines innovation with its technical vision to be able to achieve its goals. It does so by focusing on the expectations of the clients and in the long run, it has developed a benchmark for other corporations through its products such as the iPhone, iPad and the Mac. One of the key features that come out in this entrepreneurial strategy which is used by the company is the association between the success of the business and the leadership style which was adopted by its most recognized CEO. To ensure that Apple made the things which he was emotionally and psychologically attached to and influence the external world, Jobs employed a very visionary leadership approach. He did not only have the ability to perceive opportunities and think differently but was also able to rally the Apple Inc. staff towards the achievement of the visions which he had of making the company the most innovative and creative business in the world. The entrepreneurial approach which is being used at Apple Inc. is very much different from that used by its major competitors such as Samsung. Unlike Apple which relies on the psychological theory and approach to entrepreneurship, Samsung and Google have used the opportunity based models in an attempt to compete with it. The opportunity based theory is an approach where an enterprise or a company constantly looks for the various possibilities which are available to it in the market so that it can use them and have an upper hand. The opportunities may arise from various social, technological as well as cultural changes. Samsung, for example, has been striving to compete with Apple Inc. in the smartphone industry by always monitoring the trend in the market and the preferences of various demographic groups so that it can decide on the items to come up with. It is an approach that heavily contrasts with the principles which were installed at Apple by Steve Jobs and continues to be promoted by Time Cook of always looking towards coming up with new and perfect products. Thus, the operations at Apple Inc. are not driven by the available opportunities but rather by the need for perfection. Apple Inc. (2008a) points out that for Apple to have been able to use and benefit from the entrepreneurial approach which was instilled by Steve Jobs, it had to center its innovation approaches on knowing its service users better and also determining their unarticulated needs. Steve and his team at Apple were always able to do this are with such data and information at their disposal, it was always possible to be the first in the market to come up with the products which meet such needs. However, even with this, perfectionism was also given a core position to ensure that the best was possible towards meeting these needs was developed (Baron, 2012). Apple’s entrepreneurial path also involves the heavy reliance on the direct observation of the consumers as they used the products (Swayne, Duncan & Ginter, 2008). To achieve this, Apple Inc. engages in market research to determine what the consumers want and to know how they interact with the various products which are already available in the market. It is on this basis that the company has been able to make and develop unique items. Florida & Kenney (2010) adds that it is not always in all instances that the company comes up with completely new products. However, the level of attachment that the products have with the emotional and visionary desires of the managers always ensures that the Apple products stand out in the market. A very good example is the touch screen. According to Hollenbeck & Wright (2010), Apple Inc. was not the company that invented the touch screen. However, it has made more money from it than any other venture in the world. The success came out of the decision of the company to focus on how the various product users interacted with and used touch screen. On this basis, it was able to deliver the greatest experience over the touch screen making its products synonymous with the technology. Recommendation The entrepreneurial approach which has been used by Apple over the year has been effective in giving it an upper hand in the competitive technology industry judging from the sales and the market share of the company. The focusing on innovation and perfectionism which stated with Steve Jobs has been passed down to the rest of the team with the current CEO also moving on with a similar line of operations. Even with the positive results Apple Inc. has witnessed over the years, Daft & Weick (2004) cautions that there is always the need to always keep track of the prevailing environment to be able to tap onto new markets and remain above the other tech firms in the world. To be able to realize more success in the market, Apple Inc. also needs to incorporate the opportunity based approach to entrepreneurship in its operations. It is a strategy which focuses on the potential changes which may be happening in the market and coming up with products that are capable of countering and dealing with such changes. It is a very effective approach considering the fact that the technology sector experiences constant changes throughout the globe. Opportunity based model not only provides businesses with a new market but also makes them fast followers. It is a model which is clearly in line with the model that is largely used by the mangers at Apple Inc. By being able to determine the various opportunities which exist in the market, Apple Inc. will be in a position to redirect its research and development activities towards meeting these new needs. The outcome of the move will be new market opportunities, increased sales and the development of new products. Burns & Stalker (2006) however points out that even with such changes, the core values of the company which are perfectionism, innovations and quality must always be followed so that the changes do not have an adverse bearing on the operations. Reference List Apple Inc, 2008a, Media Report. Available from http://media.corporate-ir.net/media_files/irol/10/107357/reports/AAPL_10K_FY07.pdf. Accessed on 17 April 2015. Apple Inc 2008b, Apple Inc. Takes Top Business Journals Brand Excellence Honor. Available from http://www.bizjournals.com/orlando/stories/2008/03/10/daily7.html. Accessed on 17 April 2015. Baron, R 2012, Entrepreneurship: An Evidence-based Guide. Edward Elgar Publishing, Cheltenham. Burns, T & Stalker, G 2006, The Management of Innovation. Tavistock, London. Daft, R & Weick, K 2004, “Toward a model of organizations as interpretation systems”, Acad. Manage. Rev., vol. 9, no. 2, pp. 284-295. Datamonitor, PLC 2009, Apple Inc.: Company Profile. Available from Business Source Premier Database, Kaplan University Library. Accessed 17 April 2015. Florida, R & Kenney, M 2010, The Breakthrough Illusion: Corporate America’s Inability to Link Production and Innovation. Basic, New York. Galbraith, J 2003, Designing Complex Organizations. Addison-Wesley, Reading, MA. Hill, C. & Gareth R 2009, "Case 4 Apple Computer." Cases in Strategic Management. Houghton Mifflin Company, Boston. Hollenbeck, N & Wright, G 2010, Fundamentals of Human Resources Management. Addison-Wesley, Reading. Martin, M 2014, Managing Innovation and Entrepreneurship in Technology-Based Firms. John Wiley & Sons, Hoboken. Nonaka, I & Yamanouchi, T 2005, “Managing innovation as a self-renewing process”, J. Bus. Venturing, vol. 5, no. 22, pp. 304-310. Peter, J & Ottensmeyer, E 2005, Strategic Management. McGraw-Hill-Irwin, New York. Swayne, L, Duncan, J & Ginter, M 2008, Strategic Management. Jossey-Bass, San Francisco. Yoffie, D & Slind, M 2008, Apple Inc. 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