The CEO who truly understands the concept of change is Tim Cook of Apple. Despite the loss of the company’s main spokesperson and representative (Jobs), human rights scandals, the U.S.-China trade war, and the rise of environmental concerns, Cook has increased Apple’s success, making it the first company to reach a trillion market capitalization. When Cook was appointed Chief Executive Officer, Apple’s primary values were an innovation. Cook understood the needs of consumers and ensured that they could have an option to purchase a new device at a democratic price. Thus, he focused on increasing cost-efficiency through rigorous negotiations with suppliers. As the company grew, there was more of a need to manufacture Apple products in massive quantities. Even during his time as Apple’s Chief Operating Officer, he was the main proponent of the strategy to outsource production to other countries such as China.
This has revolutionized Apple’s business model and enabled the company to use highly efficient Asian centralized factory hubs in order to deliver the customers new, high-tech, high-quality products at a reasonable price. In addition, while competitors in the industry either focused on design (Blackberry) or price (Nokia), Cook suggested Apple do both. Even today, he expertly uses Apple’s market power to purchase next-generation parts way in advance and initiate exclusive deals with suppliers. Thus, the first change Cook brought to Apple was the strategy of outsourcing and securing exclusive deals with foreign suppliers.
The second change, however, was the complete opposite. Over two decades have passed since Cook was first hired at Apple. The international environment is changing rapidly, which is why it is more important than ever for executives to find efficient ways to predict and respond to the transformations. As Trump’s administration came into office, the relationship between the U.S. and China deteriorated quickly, which posed a threat to Apple, which had the majority of its manufacturing plants in China. Cook predicted this and started to move some of the manufacturing to the States: not a lot, only a small proportion.
Thus, once Trump assumed the role of the President, he already had something to show for the company’s efforts to focus more on its manufacturing domestically. It is unlikely that Jobs would ever strike an amicable relationship with Trump, which is exactly what Cook did. He attended most of the President’s CEO summits and came to dinners at the White House at least once a month. As the business environment becomes more globalized, many countries might take an isolationist stance and impose sanctions on one another. However, the changes Cook made show the current need to navigate such issues with the use of personal connections, outsourcing model alternatives, as well as masterful negotiation.
