Apple: Culture Of Secrecy, Is It Time For A Change?
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Apple: culture of secrecy, is it time for a change?
Abstract
This case study is based on a US-based it giant apple inc. Apple has been regarded as one of the most successful technology firms in the world over the last five years. Apple has always appeared first in the list of top 10 most innovative companies since 2006, not just because of their innovative products, but also their culture of secrecy. The company has even kept its future plans secret to its employee and interestingly, the company has spread false rumors around to track any possible leaks. In terms of shareholders, this secrecy policy not only provides inadequate information but also make investment in apples' stocks risky. Moreover, customers have also been kept uninformed regarding apple's new designs and new software. As a continuation of upholding the utmost secrecy, apple does not make any marketing communication campaign before releasing its products. Based on these findings, this report gives recommendations on altering apple's secrecy policy. Additionally, this report focuses on increasing transparency in the flow of company's information related to employees, shareholders and especially customers. Ultimately, this report aims to reinforce apple's status as a leader in the it industry and to prevent negative effects arising from its conservative secrecy policy.
Introduction
Apple inc. was co-founded by Steve. Paul jobs and Stephan Gary Wozniak in 1977 and since then it is considered to be one of the most successful technology based multinationals in the world. Apple has pioneered in designing innovative hi-tech gadgets such as the Macintosh line of desktop and portable computers, iphone, iPod, ipad and special software applications including Mac os x operating system. Furthermore, the company has always been the first in the top 10 most innovative companies since the last five years (businessweek.com, 2010).
Rank
2009
2008
2007
2006
1
Apple
Apple
Apple
Apple
2
3
Toyota motors
Toyota motors
Toyota motors
3m
…
…
…
…
…
10
Wal-mart stores
Nokia
Sony
IBM
In addition to being the top innovator worldwide, apples' revenues have increased significantly during 2006 to 2009 period (phx.corporate-ir.net, 2010). The operating profits of the company were reported $11,740 million in fy2009, a rise of 41% over 2008 business year (marketlineinfo.com).
More than innovative products, apple's secrecy policy has been considered as one of the factors leading to its current position. Some experts compared apple's culture of secrecy to a veil surrounding itself and this has prevented competitors from copying its upcoming products effectively. However, the secrecy policy appears to have brought some undesirable drawbacks to apple.
This case study aims to review and debate apple's culture of secrecy, clarify serious consequences of its policy and then give some suggestions on how to change its culture of secrecy.
Background
Although apple's operating profits were $11,740 million in fy2009, a rise of staggering 41% over 2008 (marketlineinfo.com), the company was criticized for maintaining a very rigorous culture of secrecy at the company. This resulted significantly in negative impacts on its relationship with employees, shareholders, investors, suppliers, consumers and media.
It is no secret that the company has kept its own workers in the dark about upcoming ...