Today Inspirational motivation (charisma/visionary) – Here we found out

Today Apple Inc.
manages business network relationships with more than 200 companies around the
globe who supply it with various goods and services (Seth, 2015). However, from
the above point of view, we may argue that with this type of huge network, it
may be impossible to manage it efficiently and effectively without some kind of
leadership. Additionally, we found out that, Apple Inc. company seems to be a
leader who provides a sense of vision, direction, empowerment, creativity and
innovative ways of doing business and solving problems related to its business.
It is on this interest that we took the opportunity to explore and discuss how
Apple Inc. company can manage its business to business networks by
transformational leadership. Therefore the following is the analysis of our findings;

 

 

 

 

Inspirational motivation
(charisma/visionary) – Here we found out that Apple Inc. company as a
leader, manages its business relationship with its suppliers as followers by
diversity program and Corporate Information Transparency Index (“CITI”) to
motivate and provide a sense of vision, mission, trust and values in its
business networks.

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Apple Inc.
(2017), describes that in 1993 the company started a supplier diversity program
in order to create a diverse supplier base. Since then Apple Inc. company has
continuously supported a long list of suppliers who participate in diversity
programs such as Women’s Business Enterprise National Council (WBENC),
Veteran–Owned Business Expositions, Supplier Diversity Business Opportunity
Trade Fairs and National Minority and Supplier Development Council (NMSDC)
around the country. The businesses categorized as apple diverse suppliers
include minority-owned, women-owned, veteran-owned and service disabled
veteran-owned small business in the region. The suppliers usually register and
after going through selection and screening process, Apple Inc. company usually
helps these firms to establish or improve their own business by providing
training and feedback that in turn helps increase the visibility of these
suppliers and can improve their potential for engagement.

Additionally,
For the third time continuously, Apple Inc. company as the only and first
company to do so, won an over 80 score, the highest marks in the Corporate
Information Transparency Index (“CITI”) (Apple Inc. supplier progress report
2017). The CITI is managed by the Institute of Public and Environmental Affairs
(“IPE”), a Chinese non-governmental organization with extensive expertise in
environmental transparency. Apple uses environmental data gathered by IPE to
point out areas for development in the environmental performance of its
suppliers. Since 2012, together with IPE, Apples fixed 196 environmental issues
detected by a local authority, including 23 in 2016 alone. All of Apple’s
suppliers still send their environmental performance through IPE, meaning that,
such reports are sustainable in the long run. And some of the suppliers now
work directly with IPE to maintain their environmental issues without any supervision
by Apple.                   

Intellectual stimulation
(innovation/creative) – Here we found out that Apple Inc. manages
its suppliers by listening to suppliers, providing ways of dealing with new
suppliers, and providing a safe design that is creating an innovative way of
making the decision, viewing situations and solving problems. Regardless of
spending less on R&D than their rivals like Google, Facebook, when it’s
come to development Apple is one of the leaders.  According to Wailgum (2010), in the annual
supply chain top 25 report in 2010, Apple stood at first place with 8.21 points
while their closest competitor Proctor and Gamble had only 5.91 points.  Steve Jobs once famously stated,
“innovation has nothing to do with what number of R&D dollars you
have,” indicating the improvement of the Mac while IBM burned through 100
times more on explore. A report from Bloomberg ( Adam Satariano, 2015),
demonstrated that in 2015 Apple just contributed 3.5% of their income on
R while their greatest opponents Google used 15% of their income and
Facebook used 21% of their income on R. Anyway, now the million dollar
question is regardless of spending less how Apple keeps up its status for being
a standout amongst the most creative organizations? Apple relies on their
suppliers to provide the breakthroughs. Ram Mudambi, an educator at Temple
University in Philadelphia, disclosed to Bloomberg that Apple’s size motivates
suppliers to pitch the company their biggest breakthroughs ( Adam Satariano,
2015). As Takashi Okuda mentioned, “it is no longer an option to do everything
from development, design, manufacturing, marketing, and customer service”.
Small suppliers need giant companies like Apple to do marketing while at the
same big corporations can save a lot of money if they rely on suppliers to come
up with new things instead of investing hugely on R&D.

Apple usually
assists its new suppliers to understand common mistakes and then supply them
with proven solutions. Apple teaches its suppliers to review their own risk and
progress corrective action plans, of which is then verified by Apple’s
third-party auditors. However, Apple technical experts carry out in-depth
reviews with suppliers to help them meet their targets. After then Apple
schedules a final visit to verify whether the improvements were enough for the
supplier to come back to the regular engagement cycle, or it should extend the
partnership to support the supplier’s work to develop performance. However
Apple believes in change when it develops new products and designs that needs
its suppliers to perform things in the market trend, it organizes safety
engineers inspects manufacturing processes for safety, environmental and health
risks. When threats are pointed out, Apple joins with internal and supplier
engineering teams to design threats mitigation plans (Apple Inc. supplier
progress report 2017).  Then performs
safety tests, technical training, and onsite affirmation to make sure that new
products or parts can be manufactured safely. In 2016, Apple created Factory
Readiness Assessment tool that was new to make sure that factories were ready
to provide their worker’s safety and environmental compliance (Apple Inc.
supplier progress report 2017).

 

Idealized
influence (inspiration/interactive) – Here we found out that, Apple Inc. as a
leader manages its supplier’s networks by providing the standard for commitment
and sourcing process that is fair and equal as well as interactive to
communicate expectations to its suppliers. According to Apple Inc. (2017),
Apple needs each of its suppliers to meet the highest standards for all its
goods and services. Apple needs its suppliers to be committed to quality
assurance. Moreover, suppliers must be committed, as Apple Inc. itself, to make
sure that the highest standards of goods and services that are socially
responsible are met. Those who understand Apple’s organizational culture and
expectations are the ideal suppliers. Apple Inc. supplier progress report
(2017) explains that, Apple company value suppliers who consider their time to
learn about and understand Apple business and who seek measures of adding
value. These suppliers understand the meaning by building commitments and
delivering goods and services that are the highest quality. Above all, Apple
treasures innovation and values suppliers who value and share its challenges by
helping to find the best possible answers. Additionally, Apple’s sourcing
process is made to make sure that suppliers who participate in a competitive
procurement process are treated equally and fair. The suppliers who wish to
participate, usually register in a secured interactive database where Apple
updates information to its suppliers.

This database
called supplier Connect enables Apple supplier professionals to access major
information about the update and potential suppliers, including Universal
Standard Products and Services Classification (UNSPSC) codes, product/service
descriptions, contact information, Supplier Diversity certifications to mention
a few.

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