1 Case Analysis Name Institution Course Professor Date This study source was downloaded by 100000758488667 from CourseHero.com on 10-26-2022 01:23:59 GMT -05:00 https://www.coursehero.com/file/124292144/8hrs-discuss-case-analysis-for-Apple-and-Case-Hugh-Russel-Incdocx/ 2 Hugh Russel Inc. Case Study Interorganizational Relationship Models Hugh Russel Inc.'s case relates to various inter-organizational relationship models. Traditionally, organizations had adversarial relationships, and networking was not given importance (Organizational Ecosystems, Paragraph 1). However, organizations are developing into business ecosystems, making it crucial since it allows firms to obtain what they need. In terms of resource dependence, Hugh Russel Inc. does not seem to subscribe to this model as it represents the traditional adversarial relationship among organizations. For instance, this model allows firms to reduce dependence on other organizations to maintain autonomy and avoid becoming vulnerable to other organizations (Resource Dependence, Paragraph 2). In this case, Hugh Russel did not have the luxury to exert power on other organizations due to its crisis. The company maintained a collaborative network by allowing itself to depend on other organizations to increase its productivity. As a powerless organization, the company had no option other than collaborating with other companies to face environmental uncertainties since the company was in the blink of collapse. In this case, the collaborative network model became a better alternative to the resource dependency perspective. For instance, Wayne Mang, the new president, was forced to collaborate with bankers and join and develop a bank-company team to help solve the firm's problem (Case for Analysis: Hugh Russel Inc., p.242). In addition, Mang agreed to sell the steel distribution business for refinancing/recapitalizing. In addition, Hugh Russel Inc.'s case provides a picture of institutionalism. This refers to a situation where a company's inter-organizational relationships are based on the firm's need to legitimize itself. In this case, it adopts strategies and measures that are perceived to represent the This study source was downloaded by 100000758488667 from CourseHero.com on 10-26-2022 01:23:59 GMT -05:00 https://www.coursehero.com/file/124292144/8hrs-discuss-case-analysis-for-Apple-and-Case-Hugh-Russel-Incdocx/ 3 norms and values of the company by stakeholders (Institutionalism). In this case, Mang strived to seek legitimacy from the company's stakeholders, including internal and external stakeholders. For instance, during the crisis, Wayne Mang called all his trusted managers for a meeting to discuss the company's situation. This had never happened before. This allowed ho to create a cross-functional project team leading to the disappearance of the old formal approach. Wang changed his relationship with bankers by choosing to be transparent and enhancing open communication. This included telling them when they were in trouble to ensure the company received the needed support. In this case, the combination of openness/transparency and effective communication depicts the adoption of institutionalism at Hugh Russel Inc. Resource-Based Theory (RBT) RBT is founded on the view that a firm's competitiveness is based on a company's resources and capabilities. In this case, the theory allows firms to identify strategic resources they can exploit to achieve sustainable competitive advantage (Lewis & Kipley, 2012, p. 397). In this case, resources have to be valuable, rare, inimitable, and non-substitutable (VRIO). However, it is crucial to understand that not all resources are valuable, and firms must put more effort into identifying and categorizing their core competencies. In the case of Hugh Russel Inc., one resource that could be leveraged given its situation was its strong brand image. However, the company's brand image weakened after the aggressive takeover. In addition, the company's financial status was bad and available resources could not be utilized to save the company and build a competitive advantage. On the other hand, Wayne Wang and the new company managers were resourceful and expert in their fields, allowing the company to adapt to banks' external environment and pressure. In this case, the RBT is partially applicable to this case. Apple's Case Study This study source was downloaded by 100000758488667 from CourseHero.com on 10-26-2022 01:23:59 GMT -05:00 https://www.coursehero.com/file/124292144/8hrs-discuss-case-analysis-for-Apple-and-Case-Hugh-Russel-Incdocx/ 4 Apple's Partnership with Microsoft In 1997, Apple was facing a difficult time given that the market for Mac Computers was shrinking, with the company facing a financial problem. After Steve Job's returned to the company, he chose to announce the company's problems, and despite being the leading PC company, the company required help from other partners. (Case for Analysis for Apple, p. 238). In this case, Apple wanted to partner with Microsoft to help save the company from bankruptcy. In this case, Microsoft made $150 million worth of investment with a promise to develop an Apple compatible Microsoft Office Software. Apple's New Strategy Apple's strategy has always been an innovation strategy with an ecosystem focus. For instance, Apple's innovative strategy focuses on developing new products, including great hardware and software (Dudovskiy, 2019, Paragraph 1). In addition, the company pioneers in developing innovative products and new business spaces, allowing the company to create new market niches. This is a competitive strategy that the company is proud of since the firm understands consumers want a great experience. The company was the first to develop a PC with a graphical user interface, a music player (iPod), smartphone (iPhone), and music streaming and downloading platforms, among other technologies. The company also sets itself apart from competitors through the closed ecosystem that allows it to develop integrated hardware and software for all its devices, making people buy more of Apple's products (Dudovskiy, 2019, Paragraph 6). This has allowed the company to create an environment that provides customers with a great experience. The organizational features required for this strategy include the adoption of a functional structure. Unlike other market leaders in technology that apply conventional structures such as This study source was downloaded by 100000758488667 from CourseHero.com on 10-26-2022 01:23:59 GMT -05:00 https://www.coursehero.com/file/124292144/8hrs-discuss-case-analysis-for-Apple-and-Case-Hugh-Russel-Incdocx/ 5 multidivisional structure, Apple is a functional organization meaning all its business units are combined into one (Podolny & Hansen, 2020, Paragraph 3). In this case, individuals managing and controlling the whole manufacturing process are selected based on their expertise and are judged based on the P&L statement. According to Apple, a functional organization structure works well for companies operating in a highly disruptive environment due to technological changes since it supports innovation (Podolny & Hansen, 2020, Paragraph 6). The other crucial organizational feature I an innovative culture. Apple has an effective, innovative system that supports creativity leading to new innovations. The company has also invested in quality through its obsession with perfection to ensure its products meet user expectations. Finally, Apple develops products that meet customer needs. In this case, customer orientation has been the reason for Apple's successful innovations. Factors Driving Dominance: Resource-Based Theory As explained above, the resource-based theory allows companies to identify strategic resources they can leverage to promote superior performance and enhance their competitiveness in the market (Lewis & Kipley, 2012, p. 397). In the case of Apple Inc., the company's strategic resources include the firm's brand popularity. For instance, the company is popular globally, making it's brand a competitive strength. This resource is valuable, rare, and inimitable. In addition, Apple's rapid innovation system is a crucial resource/capability that makes it possible for the firm to maintain a high rate of innovativeness and competition. Lastly, Apple boasts of its skilled workers and the competitive compensation packages they receive, allowing the company to retain an experienced and skilled workforce to support the rapid innovations. On the other hand, Microsoft's strategic resources include the company's strong brand image that empowers the company to effectively compete against other organizations. In This study source was downloaded by 100000758488667 from CourseHero.com on 10-26-2022 01:23:59 GMT -05:00 https://www.coursehero.com/file/124292144/8hrs-discuss-case-analysis-for-Apple-and-Case-Hugh-Russel-Incdocx/ 6 addition, Microsoft develops products with high compatibility with other products in the market. For instance, Various PCs and Laptops use Windows OS. This strategic factor has allowed Microsoft to remain competitive and dominate the computer hardware and software market. Lastly, Microsoft has a strong distribution network with fewer restrictions compared to Apple. In this case, distributors/sellers of different sizes, locations, and types are involved in distribution, making the resource valuable and rare. This study source was downloaded by 100000758488667 from CourseHero.com on 10-26-2022 01:23:59 GMT -05:00 https://www.coursehero.com/file/124292144/8hrs-discuss-case-analysis-for-Apple-and-Case-Hugh-Russel-Incdocx/ 7 References Dudovskiy, J. (2019). Apple Business Strategy: a brief overview. Research Methodology. Retrieved from https://research-methodology.net/apple-business-strategy/ Lewis, A. & Kipley, D. (2012). Resource-Based View, in Matthew R. Marvel (ed), Encyclopedia of New Venture Management, 397-398. DOI: https://dx.doi.org/10.4135/9781452218571.n158 Podolny, J., & Hansen, M. (2020). How Apple Is Organized for Innovation. Harvard Business Review. Retrieved from https://hbr.org/2020/11/how-apple-is-organized-for-innovation This study source was downloaded by 100000758488667 from CourseHero.com on 10-26-2022 01:23:59 GMT -05:00 https://www.coursehero.com/file/124292144/8hrs-discuss-case-analysis-for-Apple-and-Case-Hugh-Russel-Incdocx/ Powered by TCPDF (www.tcpdf.org)
