UNIT 1 Developing Strategic Management And Leadership Skills

Introduction
Apple Inc. is an MNC headquartered at Cupertino, California, U.S. It was established on April 1,
1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Apple Inc deals in Computer Hardware
& Software and Consumer Digital & Electronic items. The company is famous for its Apple
iPhone, iPad, iPod and the Mac. The company skyrocketed under the leadership of Steve Jobs
and after his untimely departure, the company is under the leadership of new CEO- Tim Cook.
Task 1
1.1 Explain the link between strategic management and leadership making reference to the
organization under study
1.1.1 Strategic Management:
According to (Hill & Jones, 2012) Strategic management in an organization is based on three
major approaches, first is Industrial organization(IO) perspective, second is resource based
perspective and third is contingency perspective. Industrial organizational perspective focus
towards the external environment of the business organization and analysis of organizational
structure, on other hand resource based approach consider strengths and weaknesses that prevails
within organization and plan resources required by company. The contingency approach is more
in depth, it considers SWOT (strengths, weaknesses, opportunities and threats) faced by an
organization and making it compatible to gain competitive advantage within industry.
So, strategic management can be defined as process of analyzing environment, allocating
resources, planning and executing strategies and to gain organizational objectives and goals.
Strategic management is about the system which organization follows to attain its objectives,
compete with competitors and gain competitive advantage within industry (Wheelen, 2011).
Strategic management in an organization follows three perspective- Industrial Organizational
(IO) perspective, resource based perspective and contingency perspective (Hill and Jones, 2012).
The IO perspective influences the structure of an organization by analyzing the external
environment of the business; whereas the resource based perspective analyses the internal
strengths and weaknesses of an organization and forms the strategic resources required for the
firm. The contingency approach defines and analyses SWOT (Strength, Weakness, Opportunity,
Threats) of an organization by making it competable with others in the industry. Hence, Strategic
management can be explained as the systematic process of environmental analysis, strategy
formulation and resource implication for framing organizational objectives, policies and plans.
Strategic management focuses on the way an organization achieves its objectives and how must
it compete and create competitive advantage in the market industry (Wheelen, 2011).
1.1.2 Strategic Leadership
While on other hand, Reed (n.d) defines Strategic leadership as the ability of an experienced,
senior leader who has the wisdom and vision to create and execute plans and make consequential
decisions in the volatile, uncertain and complex strategic environment. Another definition
proposed by (Gold, Thorpe, & Mumford, 2010), leadership is the way, approach or tactics used
by leaders to motivate and mold subordinates and other resources towards set objectives. So
from definitions above can conclude leadership is setting up vision and motivating others to
towards that vision.

Strategic leadership, on the other hand, is concerned with decision making across different
cultures, agendas, personalities and desires in an organization. It is a well-defined tactic where
the strategic leader is concerned with moulding and motivating employees and other resources of
the organization to achieve the targeted objectives (Gold et.al, 2010). Strategic leadership aims to
determine the ends and apply most effective means to an organization. Reed (n.d) defines
Strategic leadership as the ability of an experienced, senior leader who has the wisdom and
vision to create and execute plans and make consequential decisions in the volatile, uncertain and
complex strategic environment.
1.1.3 Link between Strategic Management and Leadership:
It is quite clear from above definitions that in order gain competitive advantage both qualities are
required by an organization. While strategic manager provide success to organization through its
managerial process including planning, organizing, executing and controlling, strategic leaders
direct organizational resources towards new opportunities, objectives, and goal (Atreya, 2013).
While Strategic management is goal oriented, Strategic leadership is development oriented
(Gold, Thorpe, & Mumford, 2010).
Example from Case: Apple Inc's and Steve Jobs is a perfect example of Leadership and
Management. Although, Steve Jobs was a co-founder of Apple Computer but got fired as CEO
once at the age of 30. In 1997, he returned back in the company as CEO, and started leading the
company. When he realized that Apply was losing market share and finding it difficult to fight
with Microsoft, he decided to reinvent every product of Apple offered, and gave a boost to their
employees with a most powerful tool of leadership - "momentum" and managed the whole
situation successfully. He understood the essentials of leadership and management and
accordingly built such environment wherein each and every employee developed hence, drove
the entire group's efforts towards the accomplishment of goals.
He got his employees so accustomed to change that they expect it now. Renovating again and
again has become a line of attack for Apple Inc. such as Apple iPod, Nano, iPod Mini, Shuffle,
iPod Video etc. Steve Jobs accustomed his employees to change and innovation in such a way
that if one day he could walk into Apple proclaim that they are planning to make washing
machines then nobody would think he'd have lost his mind rather his employees would jointly
say, "Guide us the way, boss" and tell us how to fabricate best washing machines anybody so far
made".
In conclusion, the management of Apple Inc has set up their vision and mission by seeing a long
future ahead and this has made Apple Inc. to be one among the top companies in the world. Even
though it was found by Steve Jobs, Steve Wozniak and Ronald Wayne, it is visibly understood
that the leadership style of Mr. Steve Jobs has made this organization reach at the highest level.
He is described as an unconventional leader and a high-maintenance co-worker who demanded
excellence from his workers. His ability to bring the staffs, investors and customers in line with
the organizational vision is what has made the present results indisputable (McInerney, 2011).

1.2 Analysis of the impact of management and leadership styles on organizations strategic
decisions
Strategic management and leadership is related with formulation of strategic decision which is
developed in alignment with the organizational mission and vision. These decisions are usually
long term which is focused towards growth of organization (Wheelen, 2011).
Strategic decision making is concerned with formulation of strategic decision which is taken in
accordance with the organizational mission and vision. These are long term decisions which
focus on organizational growth. Effective strategic decisions bring high rewards to the business
(Wheelen, 2011).
According to (Mintzberg, 2013), The manager who only communicates or only conceives never
gets anything done, while the manager who only does ends up doing it all alone. While
elaborating further author suggested that both managerial and leadership style are of great
importance in terms of setting up and reviewing strategic goals and objectives, accelerating
organizational performance, planning and executing change, building and leading high
performance teams and in making strategic decision. Most widely and commonly used styles are
direct-indirect leadership, autocratic leadership, democratic leadership, free-rein leadership.
According to Mintzberg (2013), The manager who only communicates or only conceives never
gets anything done, while the manager who only does ends up doing it all alone. Managerial
and leadership styles are the reasons for reviewing strategic aims and objectives, improving
organizational performance, communicating and implementing change, developing and leading
high performance teams and in making strategic decision. Most common among such skills
includes direct and indirect leadership, good leadership, negative leadership, autocratic
leadership, democratic leadership, free-rein leadership etc.
Direct leadership encourages creativity and innovation by employees furthermore it also
encourage involvement of employees in formulation of vision and strategy, resource allocation
and decision making. On other hand indirect leadership try to create creativity culture within
organization by implementing tools like reward and recognition, role modeling and team
composition (Hunter & Cushenbery, 2011). While explaining other styles (Gold, Thorpe, &
Mumford, 2010) proposed that a good leadership, motivate its employees by empowering
employees which result in more productivity. A negative leadership focuses on accomplishing
task by threatening employees, which in result decrease motivation and productivity of
employees. In autocratic leadership style power and authority of decision making lies on leader
whereas democratic leaders reach decision by encouraging employees participation and majority
censuses. In free-rein style employees are free to make decision and are responsible for outcomes
and progress.
Direct leadership influences creative input, innovative suggestions, formulation of vision and
strategy, resource allocation and decision making. Indirect leadership influences climate for
creativity, rewards and recognition, role modeling and team composition (Hunter and
Cushenbery, 2011). A good leadership is responsible for motivation and empowering of
employees. This will increase the productivity. A negative leadership leads to motivation by
threatening which leads to low performance and productivity of employees. In autocratic
leadership, the power lies with the leader whereas democratic style promotes workers
participation in decision making. In free-rein style the subordinates take decisions and are
responsible for the progress (Gold et.al, 2010).
Background of Apple Inc. shows that Steve Jobs applied autocratic leadership style widely. But
he also applied democratic style when required. When Steve Jobs resume his office again the
company was about to bankrupt. The first step he took was cutting down unnecessary product
line and makes it to 4 major product categories. To do so he followed demanding and autocratic
style which was much criticized but later this style was prove to be successful. To further
accelerate the company Steve jobs build the group of individuals who knew the Apple and also
passionate about it. He was supportive and encourages their suggestions; here he applied
democratic style of leadership which resulted in huge success (Bridle, 2011).
It is observed that in Apple Inc, Steve jobs applied the autocratic leadership style majorly. But he
also exercised a mix of good leadership with democratic style. When Steve Jobs returned to
Apple Inc as the Interim CEO, the company was nearing to a stage of bankruptcy. He found that
there were much more unnecessary products than necessary ones and hence cut short the
products to just 4 numbers and totally concentrated on them instead of mediocre ones. Here he
followed the demanding style of leadership and was often criticized for being aggressive. Even
though his decision showed autocratic style, this decision turned out to be a major strategic
decision which gave remarkable results. At the same time, Jobs also selected a team of members
who knew Apple and were passionate about Apple. He was friendly with them and maintained
good relations with subordinates and motivated them. This shows his democratic cum good
leadership quality. He gave importance for their participation and the end results skyrocketed
(Bridle, 2011).
1.3 Evaluate how leadership styles can be adapted to different situations
There are different philosophies, consideration, assumptions and beliefs based on which various
styles of leadership is implemented. It is very important for every organization to adopt style
according to organizational environment, culture and norms. Following are some common
leadership styles, autocratic, democratic, bureaucratic, charismatic, and laissez-faire (Northouse,
2012).
There are various styles of leadership which are being adopted and these styles based upon
certain assumptions and beliefs. Organizations are found to select leadership styles according to
the organizational culture and norms. Some of the common styles found are autocratic,
democratic or participative, bureaucratic, charismatic, delegate or laissez-faire, etc (Northouse,
2012).
Autocratic leadership style allows manager to take decisions alone without considering views of
other employees. Autocratic leaders make decisions and implement it throughout organization
without giving any freedom of questioning those decisions. This leadership style is suitable
where employees require supervision. But if educated, trained and creative employees are
available, then this style will not be recommended for achieving objectives (Northouse, 2012).
In Autocratic leadership style, the manager alone takes the decision without the involvement of
other staffs. Here, the decisions made by the manager are imposed on the employees and no one
is given independence to question on this decision. When employees require supervision,
autocratic style can be adopted. But if creative employees are present, then this style will not be
suitable for the organization to achieve its goals (Northouse, 2011).
Democratic leadership style which is also known as participative style, allow employees to
contribute their part in decision making and then based on those suggestion democratic leader
make final decision. This type of leadership style promotes creativity which increases employee's
job satisfaction and productivity (Manktelow, 2015).
In Democratic/ Participative leadership style, the employees are given opportunity in the
decision-making process but the final decision will be made by the leader. This style of
leadership encourages creativity and employees are known to have high job satisfaction there by
leading to high productivity (Manktelow, n.d).
Bureaucratic leadership style requires highly profession attitude from employees, a well-defined
rules and regulations are to be followed by all workers. This type of leadership is adopted in
organization where there is no room for deviation and laziness or in organization where
employee's safety and health matters more. This type of style is found in well-established large
organization because highly formal environment is gained after years of experience (Hughes,
Ginnett, & Curphy, 2011).
In Bureaucratic leadership style, the organizational rules and procedures must be strictly
followed by the employees and the leader expects a business-like attitude from them and
between them (Hughes et.al, 2011). The bureaucratic style of leadership is found in organizations
where there are more chances for employee laziness or in organizations which require increased
safety on the health of employees. This type of style develops as time moves on and is found
now only in old & large organizations.
In charismatic leadership, personality of leader plays vital role because the elegance and charm
of leader act as major factor for attracting followers and employees towards the leader. It is
noticed that charismatic leaders attract and motivate the team members but sometimes these
leaders fulfill their own ambitions without considering overall effect on other followers
(Manktelow, 2015).
The Charismatic leadership style is characterized by the charm and grace in the leaders
personality. This gathers the followers/ employees towards the leader. The Charismatic leader
inspires and motivates the team members but sometimes it is found that certain leaders live in
their instinct and focus on their own ambitions without changing or improving any situation
(Manktelow, n.d).
The Laissez-faire leadership style also known as delegate leadership it allows employees within
organization to make decisions. In other words laissez-faire leader do not supervise employees
directly. In this style employees are responsible for progress and outcomes of decision; hence
there is chance of poor productivity, less control over operations which can lead to increase in
cost especially when employees lack experience (Hughes, Ginnett, & Curphy, 2011). So this type
of leadership style is suitable for organization where employees are highly talented as well as
experienced.
The Laissez-faire / Delegate leadership style gives the power of decision-making to the workers
in the organization. The laissez-faire leader has no direct supervision on employees. In other
words, it can be said that laissez-faire style does not produce any leadership or supervision in it.
In this style, there are chances for poor production, lack of control and increasing costs if
employees are not qualitative (Hughes et.al, 2011).This leadership style can be adopted in
organizations where highly experienced and talented employees are available.
While considering different leadership styles, it is not recommended for company like Apple to
apply autocratic style. This type of style is suitable where only leader has knowledge and
perfection which is not possible in todays advanced world. Mr. Steve Jobs was perfectionist and
found to have demanding and autocratic style but he also possess charismatic personality with
encouragement for participation from passionate staff in decision making which help him in
creating strong bonding with employees (Bridle, 2011).
Democratic leadership is recommended in today's dynamic business environment as this is the
era of innovation and democratic style promotes creativity and innovation by gathering more and
more ideas.
When analyzing, the autocratic leadership style is not recommendable for a company like Apple
Inc. This kind of leadership can be practices only when the leader himself is perfect in
knowledge, which is not possible in todays technology world. Mr. Steve Jobs is found to have
followed the autocratic / demanding management style but at the same time he has remained
charismatic and democratic, maintaining a strong bond between the colleagues. He was a
perfectionist and never got satisfied with the second best products (Bridle, 2011).It is the
Democratic leadership style which should be followed by the company for its future growth. If
the management opts for decision making with the participation of employees, the results would
be remarkable, as participation will result in more and more innovations to come up.
The other styles like bureaucratic and charismatic style is not recommended for such companies
like Apple as it limit the chances of innovation and mostly power rest on leader's hand. Laissez-
faire style has also got drawbacks like it required highly experienced and knowledgeable staff.
Common drawback of all three leadership style is that it promote one way communication which
results in confusion, misunderstanding and power differences.
The bureaucratic and charismatic styles cannot be suggested for Apple Inc. as these styles have
their own drawbacks and power possession by the leader will never take this company anywhere.
Even laissez-faire style is not suggestible because this style can be adopted only if the employees
are completely aware about the present situation and knowledgeable about what to do next.
Task 2
2.1 Review the impact that selected theories of management and leadership have on
organizational strategy
According to (Hughes, Ginnett, & Curphy, 2011) 'Management' and 'Leadership' are two
different dimensions as management is more related to administration and controlling while
leadership is concerned with creativity, innovation and development. (Hill & Jones, 2012)
advised that Leadership is mandatory requirement for organizational success as if organization
lack in leadership it has no direct, it will progress slow and will be left behind in dealing with
dynamic environment. There are various theories developed to evaluate the performance for
organization and its leadership and management style. Some of the most common theories are;
Transformational Leadership theory, Transactional Leadership theory, Contingency theory,
Situational theory, Tri-dimensional leadership theory.
Management is different from Leadership as the former deals with administration and
maintenance whereas the latter deals with innovation and development (Hughes et.al, 2011).
Effective leadership is mandatory for the successful running of an organization. If an
organization lacks leadership, it will move slow and will finally lose its way in the dynamic
managerial environment (Hill and Jones, 2012). An organization can achieve heights only if it
has an efficient leader with competitive skills. There are various management and leadership
theories formulated for organizational appraisal. Some among them are Transformational
Leadership theory, Transactional Leadership theory, Contingency theory, Situational theory, Tri-
dimensional leadership theory etc.
Transformational leadership theory is concerned with transformation of individual or public. It is
mostly achieved with the help of charismatic leadership style where motivation, determination
and performance of groups are enhanced by utilizing various tools. Individualized Consideration,
Intellectual Stimulation, Inspirational Motivation and Idealized Influence are the four main
aspects in transformational leadership (Dobbs, 2010).
Transformational leadership theory, as the name suggests, deals with the transformation of
individuals and public. It is based on charismatic leaders and enhances the motivation,
confidence and performance of followers by applying various mechanisms. Individualized
Consideration, Intellectual Stimulation, Inspirational Motivation and Idealized Influence are the
four main aspects in transformational leadership (Dobbs, 2010).
Transactional leadership theory emphasis on supervision of leaders and organizational or group
performance. This theory relies on belief that relation between leader and employee is exchange
based where acknowledgment, rewards and punishment depend on performance of employees
(Cherry, 2016).
Transactional leadership theory focuses mainly on supervision, organisation and group
performance. The relation between managers and subordinates are considered to be as an
exchange, by the leaders. Rewards and punishments depending on the performance of employees
are a part of this theory (Cherry, n.d).
The contingency theory suggests that the organizational culture should be build based on the
environmental scanning such as macro-micro economic condition, demographic and social
composition of the business. When leader apply this theory, he alter his behavior based on
different factors such as leader-subordinate relation, chain of command and authority. According
to this theory decisions are alterable based on careful analysis of environmental factors which
can result in reduced problem (Shpak).
The Contingency theory explains that the corporate design and culture should be done
considering the economic, social and physical environment of the business. When this theory is
applied to leadership, the leaders behavior is dependent upon factors such as relation with
subordinates, task structure and position power. This theory also mentions that there are many
constraints which can easily alter the decisions made and proper review of such factors can
reduce the issue to some extent (Shpak, n.d).
In recent era the most widely used theory is situational theory. The theory is based on two major
dimensions, first is supportive dimension and second is directive dimension. Supportive
dimension provide self-confidence, comfort and guidance to employees for completing task
while directive dimension focus on assisting employees towards goals (Northouse, 2012).
The Situational Theory is one of the most widely recognized and commonly used approaches
which have two components in it- Supportive dimension and Directive dimension. Directive
dimension helps in assisting the group members to accomplish their goals and Supportive
dimension makes them comfortable and self-confident (Northouse, 2012).
There are four main situations: S1, S2, S3 and S4.

S1- Leader focuses more towards goal attainment and focuses less on supervision.
S2- Leader focuses on both goal attainment and supervision with equal importance.
S3- Leader focuses less on goal attainment and focuses more on supervision.
S4- Leader focuses less on both goal attainment and supervision (Northouse, 2012).

2.2 Create a leadership strategy that supports organizational direction

Business researchers, experts, leaders and theorist are exploring strategies for a long time. But
due to dynamic environment and fast paced development in the field of business, there is no
authentic explanation about strategy that fit in all situations. (Johnson, Whittington, & Scholes,
2011), explained that progress and success of an organization is based on the strategy adopted
and utilizing this strategy to gain efficient use of resources that satisfy both customers and
stakeholders.
Business leaders and business theorists have been studying about strategy for a long time. Yet
there have been no definite explanations about strategy. In the view of Johnson et.al (2011), the
direction and scope of an organization is determined by the strategy adopted and using this
strategy, the optimum utilization of resources should be planned in such a way as to satisfy the
demands of customers and stakeholders.
In order to implement the successful leadership strategy in an organization. Following measures
are to be taken:
For a leadership strategy to be successfully implemented in an organization, the following points
have to be guaranteed:
Maintaining professionalism: Leaders and employees with professional attitude is of prime
importance in the dynamic business environment (Hughes, Ginnett, & Curphy, 2011). It becomes
especially more important situation where companies like Apple maintain international brand
image due to which cross border barriers arises. So, to overcome such barriers goals has to be set
in advance for each project and employees must be aligned to achieve these goals within
deadline.
1. Maintaining professionalism: Professionalism among leaders and employees is of much
importance in the developing business world (Hughes et.al, 2011). As Apple Inc
 maintains an international brand image, the company should design and implement
strategy which will remove the barriers of organizational culture and rules. As followed
by Steve Jobs, predetermined goals for each project should be maintained and workforce
must be professionalized to attain these goals within time specified.
Developing new ideas and innovation: System should be developed where new idea generation
is encouraged. It helps in achieving differentiation from competitors (Hughes, Ginnett, &
Curphy, 2011). This is one of the strength of Apple where Steve job was the initial source of
every new idea.
2. Developing new ideas and Innovation: Steve Jobs has always been in sourcing the
initial idea for every product. New ideas should be studied to promote more customer
satisfaction (Hughes et.al, 2011). Apple Inc. has to follow its path in creating innovative
ideas about a product and make it extremely different from its competitors product.
Experimentation till perfection: Customer should not feel product as secondary there should be
perfection in product (Bridle, 2011). Apple Inc. and even any other company must implement
this idea as Steve Jobs itself follow this concept for success.
3. Experimentation till perfection: Apple Inc. has to maintain the concept of Steve Jobs in
the case of perfectionism. Nothing should make the product feel secondary for customers
(Bridle, 2011).
Developing trust and respect: In order to gain mutual cooperation it is necessary for both
leaders and employees to build trust and respect between each other. In this regard honesty plays
vital role it creates healthy atmosphere and viable working condition which ultimately enhance
productivity and performance (Mullins, 2010).
4. Developing Trust and Respect: More than any concept, trust and respect between
leaders and workers are necessary for an organization to succeed. The leader must be
open and honest so as to gain trust and respect. This will create healthy atmosphere and
working condition which will thereby enhance productivity and performance (Mullins,
2010). This is visible from the case study of Apple Inc., as the company officials and top
management possess immense respect from both workers and public.
Extensive training: Training and development is a major factor for proper organizational
direction (Hughes, Ginnett, & Curphy, 2011). It is of great importance now a day to stay updated,
workforce need to be trained according current and future requirements for product innovation.
5. Extensive training: Training and development is a major factor for proper organizational
direction (Hughes et.al, 2011). For a company like Apple Inc., technological advance has
to be updated day to day and workers need to be groomed in gaining proper knowledge in
technology that they need to use for the successful launch of every product.
When going through the history of Apple Inc. It is evident that even though the company was
found by him, Steve Jobs was thrown out of his own company by 1985; the reason for his
deliberate resignation being his aggressiveness and demand for perfection, which was not
acceptable by the then CEO and some staffs. Apple Inc. then saw a steep fall after Jobs left and
even came to a stage of Bankruptcy. Apple Inc. brought back Jobs in 1996 as the advisor and
interim CEO and then Apple Inc. had never needed to turn back. It is noticeable that the
leadership of Steve Jobs has made the company to progress remarkably. He was aggressive and
demanding, but he encouraged a culture of strict accountability at all levels of the organization
and worked hard together with his co-workers for perfectionism. Employees recruited were made
specialists and placed into a position where their strengths and abilities were most required
(McInerney, 2011).
Steve was passionate on the vision of the company and possessed an incredibly good
communication skill with staffs, customers and stakeholders. Product excellence, elegant design
and simplicity are the three contributions that he gave to the company. He was extremely
involved in the details of the products and the marketing styles. He kept goals for both hardware
and software sections and motivated employees to attain more than what they dreamt (Zenger,
2013).
Task 3
3.1 Use appropriate methods and approaches to review current leadership requirements
Due to today's vibrant business environment and continuous technological development, it has
become necessary for every organization to strive for continuous updates and frequent
environmental scanning to stay in competition. Good leadership means setting up appropriate
vision for an organization and then developing strategies to achieve it (Wheelen, 2011).
Todays business world is dynamic and technological updates are so much that studying about
every change has become a big task for every organization. Every business organization has to
monitor the market and changes constantly to sustain and proceed in the prevailing competition.
Proper leadership give rise to the proper vision for the organization and there by a proper
strategy will get developed (Wheelen, 2011).
After Steve Job's unfortunate and untimely death it is important for new CEO-Tim Cook to
identify current needs and implement proper leadership philosophy to keep on track of success
(Myslewski, 2013).
For an efficient leadership in Apple Inc, the leader should be aware of the philosophy and
implication of leadership. Only then efficiency will be attained. After Steve Jobs precocious
death, the present leader/ CEO Tim Cook has adopted to expand the product line and
distribution. The shares have been made more customer-friendly. But, since the death of Steve
Jobs, shares have never gone up to its ever time highest price of $702.10 on September 19, 2012
and $705.07 in intraday trading (Myslewski, 2013).
In order to evaluate current leadership requirements there are different technique and
methodologies but most appropriate methods are discussed below:
Continuing Professional Development (Bubb & Early, 2009): As name implies, it is a process
where professionals are encouraged to gain the skills, knowledge and experience on continuing
basis. This approach is highly suitable for the company like Apple Inc. where many professionals
are working, as their performance depend on their professional development.
Continuing Professional Development (Bubb and Early, 2009) CPD is a process which
records the skills, knowledge and experience gained by a professional and helps him/ her to
manage own development through an ongoing process. For a company like Apple Inc, CPD will
be important because there are several professionals working with the company and their
performance will always have an impact on the growth of the company.
Succession Planning (Mullins, 2010) - This approach suggest that the company should focus on
hiring right person for right place. It also suggests that senior experienced professionals should
be retained in organization for guidance, training and knowledge sharing. This approach is highly
recommended for long term internal strength.
Succession Planning (Mullins, 2010) - One of the essentials for the current leadership is
succession planning which will enable the company to ensure proper recruitment of employees
to the proper position. At the same time, it will also retain the experienced superior employees as
they provide their time, attention and knowledge for the subordinate employees and new
appointments.
Intuition (Mullins, 2010) - Due to uncertain nature of business world, leaders should possess
intuitive skills. It is helpful in situation where a further step to be taken is not clear and leader has
to make decision based upon the previous experience.
Intuition (Mullins, 2010) - The leader should have intuition since business world moves in
uncertainty. When any situation arises where the next step to follow is unavailable, the leader
should be intuitive and based upon the past experience, decisions must be taken up.
Concentrate on some products (Wheelen, 2011) - Focus towards few products will provide
clear understanding of product in relation to needs. Steve Jobs followed the same approach by
not expanding product line. This approach helps company to stay innovative and more
concentrated towards customers.
Concentrate on some products (Wheelen, 2011) - As Steve Jobs followed, product line should
not be too much expanded as this would affect the quality of such products. As known, Apple Inc
has three main products-the iPhone, iPod and the Mac and innovations and new ideas need to be
concentrated more on them as public demand is still more for these products in market. Product
line should be innovated in such a way that it attracts customers and also feel them make worthy
of what they buy. Every product of Apple Inc should carry offerings which will aid all necessary
demands of customers.
Have an eye on every detail (Wheelen, 2011) -This approach requires that every decision
should be based on in depth and detailed understanding of situation and product launch should be
in line with requirements in other words it should be perfect. Steve Jobs used the same approach
he was perfectionist by nature and keep his eye on every minor details.
Have an eye on every detail (Wheelen, 2011) - Success of Apple lies in this concept of Steve.
No decisions regarding products should be made as a compromise. Every minute detail should be
studied and rectified where ever necessary. The products should be launched always with
perfection.
Value Relations (Wheelen, 2011) In order to be successful businesses are required to build
positive relationship within its value chain. The leader must understand and satisfy needs of all
parties involved in business.
Value Relations (Wheelen, 2011) - For every business to be growing, the parties to the business
should be given services they need. The leader should put himself into the shoe of parties and
decisions need to be taken then.
3.2 Plan for development of future leadership situations that requiring leadership to be
addressed bearing the recent development in Apples leadership
Business environment is emerging as more complex and uncertain day by day. So, it is needed
that leadership philosophies also update with change in business environment. Leaders are
viewed as key source of implementing change in organization. A proper leadership is determined
by the way it motivates followers and provides direction to accomplish goals and objectives
(Bridle, 2011).
Business world is growing more complex and volatile day by day. So, leadership requirement
must also change according to the changes in the business environment. Leaders are considered
as saviors who radically change the organization. A good leadership provides the purpose,
motivation and direction and works to accomplish the vision thereby improving the organization
(Bridle, 2011). When a company like Apple changes leadership, it should understand what it
needs and what kind of a person should be appointed as its leader.
So, development of future leadership is required due to many reasons. There is increasing trend
of globalization which allowed organizations to enter different markets around the globe due to
which competition become more intense now a days and it keep on increasing. Another trend to
be considered is diversification many companies are now expanding business from one industry
to another industry. Economic conditions have been changing around the world by increased
economic developments and regional integrations. Information technology has also noticed
ground breaking innovations. All above highlighted factors are providing reason for future
leadership development, as these factors resulted in generating more jobs and employment
opportunities, new generation with new ideas and innovation are joining business world (Clinton,
2012).
The reasons for the need of future leadership development are many. Globalization has led the
business organizations to enter into new markets across the world. This has resulted in tougher
competitions which are increasing day by day. Diversification has increased in all sectors and
companies are expanding from one industry to another. The economic conditions have totally
changed around the world recording increase in the flow of monetary units all over. All these
forces have resulted in the increase of employment opportunities around the world which has
influence the new generation to come up with new and innovative ideas. Development in the
information technology and media are another factor that demands for leadership development
(Clinton, 2012).
The evaluation and careful analysis suggest that organizations will be able to achieve future
leadership development, when leaders are clear about current situation. Some of the techniques
that can be helpful in future leadership development are training, job assignment, coaching and
mentoring, feedback and review. Many businesses are following horizontal development
approach in leadership but in this approach power lies in one hand which in long run will not be
viable for businesses. So, in order to align with future it is recommended that with horizontal
approach it is also necessary to implement vertical approach. Leaders of next generation should
focus more on collective or group efforts rather than individualized efforts because in future
businesses will be interested more towards mergers, acquisitions and strategic alliance rather
than going for expansion. It is also suggested that leaders in future will required to be more
globally integrated and consider social responsibilities (Clinton, 2012).
While planning for future leadership development, the role of leader should also be clear in
picture. Evaluation of current scenario reveals that training, job assignments, coaching and
mentoring, feedback and review etc are the common methods for development of leadership.
Horizontal development in organizations is more concentrated in todays business and leadership
lies in the hand of a single person. But while developing future leadership, this has to change. In
future development, Horizontal and vertical development must be concentrated by the
organizations. Leadership has to go to the hands of a collective group rather than individual
leadership and innovative leadership methods are to be adopted. Future leadership plan must
include priorities for acquisitions and mergers, international partnership alliances etc, rather than
mere expansions. The next generation leaders must be more global and socially responsible and
committed as employers, consumers and investors (Clinton, 2012).
4.1 Plan the development of leadership skills for a specific requirement
According to (Pankaew, 2013), Leadership is the art of leading others to deliberately create a
result that wouldnt have happened otherwise.
A lot of discussion has been done on the importance of leadership for organizational
performance. It is of prime concern now that leaders should update their skills in alignment with
environmental requirement.
Leadership is a very important area for any organization regardless of the size of the
organization, in today fast moving business environment business have to make future plans
therefore it is very important that the leaders of the future develop the necessary skills that will
help them to lead the company in the right direction. Leaders can develop their skills and
employees skills by on the job training or formal Learning.

Formal Learning There are several new products being introduced, therefore companies like
McDonalds has to groom their leaders and their employees. These can be done by sending the
employee for formal training, seminars or in some case sending the leaders back to the class
room.
On the job training - is one of the most effective development methods in the companies.
Mumford and Gold (2004) cited by (ukessays, n.d.) State that the process of the on the job
training is to arrange and the purpose is to enhance the abilities of the employees in the corporate
settings of the organizations. According to the case study Ray Krocs founder of McDonalds
state, if we are going to go anywhere, weve got to have talent. And, Im going to put my money
in talent. The case study state that training is not just offered to executives or managers but
training is in-fact offered to all members of staff regardless of their position.

This ideology demonstrates that McDonalds does not believe its restaurants crew members are
just gears in a machine that can be easily replaced cited in the case study.

Organizational Leadership - The Organizational Learning which is the learning method in the
organization which is highly appreciated and required. Mullins (2010) cited by (ukessays,
n.d.) States that the organizations that influence the employees on the regular bases with the
knowledge and information.
Organizations that promote learning is more likely to continue to enjoy great success. In-order to
compete in the global market business, it has to empower their leaders and employees to a high
standard. Employees are the most important asset of any business organization.
With good training employees will be in a better position to represent the company very well and
leaders will be in a better position to lead the company into the future while competing on a
global scale.

4.2 Report on the usefulness of methods used to plan the development of leadership skills
In order to meet future challenges like globalization, economic developments, technological
advancements it is important for organization to focus on leadership development programs. As
discussed about current and future requirements of leadership in previous section, it is important
for company to develop proper leadership improvement program that should align with future
requirements.
Leadership requires vision, enthusiasm, self-confidence, empowerment, action enabling of
others, getting things done, and making things happen (David I.bertocci, 2009).
It is important for leaders to develop more skill to cope with future challenges, globalization and
demands. As discussed earlier about current and future leadership requirements and leadership
plan, it is very important that the method used for the improvement of leadership skill should be
more effective and useful so that the objective can be achieved. As cited by(ukessays, n.d.),
leadership requires vision, enthusiasm, self-confidence, empowerment, action enabling of
others, getting things done, and making things happen (David I.bertocci, 2009).
One of the most useful methods used within organizations is formal learning it help in gaining
updated skills and getting ready for upcoming challenges. There are different methods within
formal training that can be used according to requirement of development, these methods are:
training, experimental learning, self-learning, coaching and mentoring and developing retention
programs.
Formal learning is a very good way to improve skill and get further knowledge about upcoming
challenges. The extent of which leadership competencies are acquired and used depends on the
type of development activities that occur (e.g., training, experimental learning, self learning),
facilitating condition (e.g. Ray Krocs founder of McDonalds state, if we are going to go
anywhere, weve got to have talent. And, Im going to put my money in talent.).

Training - On job training is provided to staff with an aim to give them knowledge about
upcoming responsibilities.
Training this method is very impressive and authentic in McDonalds. If the trainings are given
on the job then the employees can learn better and be the best part of the organization.
Experimental Learning - In this method employees are required go through critical thinking,
problem solving and decision making. This method also allows gathering various ideas from
staff through feedback, reflection and suggesting the ideas for new situation.
Experimental Learning - Experimental learning within McDonalds engages employees in critical
thinking, problem solving and decision making. This approach to learning also involves creating
opportunities for debriefing and consolidation of ideas and skills through feedback, reflection,
and the application of the ideas and skills to new situations. This method has been successful in
McDonalds and has contributed to the success of the company business model.
Self-Learning - In this method employees are given with online training material through
company website or email, so that employees can learn according to their own ease and pace as
employees dont have to follow management for learning and development.
Self Learning McDonalds employees are provided with online training material on
McDonalds website for self-learning purposes, so that they can learn at their own pace. This
way, employees dont need to run after the management in order to be empower themselves with
available information.
Coaching and Mentoring - This method is useful for developing motivation, enhance
productivity, and decrease employee turnover because it gives employees feeling of worthiness
and create connectivity between employee and organization.
Coaching and Mentoring as stated in 3.1 Coaching & mentoring, both of which focus on the
individual, can enhance morale, motivation and productivity and reduce staff turnover as
individuals feel valued and connected with both small and large organisational changes. This role
may be provided by internal coaches or mentors and, increasingly, by professional coaching
agencies.
Develop retention program Through this program employees are retained by monetary as well
as nonmonetary rewards based on performance and input in organization.
Develop Retention Programs for Current and Future Leaders - Monetary as well as nonmonetary
rewards can be used to improve the retention of any employee, but particular attention needs to
be paid to high performers and future leaders. Example, according to the case study, McDonalds
cooperate strategy stipulate that employees must be paid above the national minimum wage, and
high performing employees are rewarded accordingly to stipulated company policies.
The above are useful methods that are used by McDonald management team to develop
leadership skills of their employees
Conclusion
Even though the company is making progress under the new CEO, the presence of Steve Jobs is
still missing and no one has come up to fill his space. It is found that projects are not moving as
fast as they were under Steve Jobs. Measures are to be adopted by the Company so that it reaches
the same position that it was under its greatest leader of ever time and should gain more
organizational advances.
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