WRITTEN ANALYSIS OF CASE SUBMITTED BY: FATIMA NAZ MBA I MORNING DATE:01 12 11 DONNA DUBINSKY AND APPLE COMPUTER, INC Introduction:
In Donna Dubisky case, Donna was facing challenge of changing distribution system. She needs to deal with change because it was affecting her at professional level. She has had a promising career at Apple Inc. she had a support from her boss, Ray weaver. The dilemma was that she feels what she is doing is best for company; therefore she was putting her job at risk. Company Background:
Apple was a leading PC manufacturer in US. Head Office is in Cupertino, California. In 1977, after launch of Apple II, Apple market shares had risen to 42%. In 1983, Scully, the finance president of PepsiCo joined Apple as president he was invited by Jobs, to bring marketing discipline to Apple. As company market share was declined to 24%.when Scully joined he simplified the structure of organization by centralizing product development and product marketing in just two divisions. It reflects the mix functional and geographical organization, and 7 divisions were directly reporting to Scully. After introduction of Macintosh in early 1984 Apple was unable to retain market share because of its high market entry cost. Apple failed to reach projected sale level. This situation creates tension between Apple II division and Macintosh. Donna Dubinsky:
Donna graduated from Yale, worked in commercial bank for 2 years. Then she did MBA from Harvard University. In July 1981, she joined Apple as customer support liaison. Within 4 years, she became Director of distribution and sale administration. Donna reported to Roy Weaver. Why Donna was successful in her organization?
* She was very direct and intelligent
* She don’t consider her career, she fought for her subordinates. * She always have company interest in her heart
* She was confident and have nonpolitical views
* Ready to take risks.
* Power of presence
* She had refined and formalized Apple distribution policy * She introduces simple, systematic, efficient system. Her employees were pleased with that system * Donna was the one who realized the need of system for planning and analysis. What Challenges Donna is facing and why?
1. Steve Jobs proposed to dismantle existing distribution system and replaced by just in time method. Because instead of high operating revenues, Apple’s market share were declining 2. Sales forecasting pattern was difficult and in efficient, which causes excess or shortage of inventory. It was costly and critical to Apple profit. Donna needs to improve the forecasting techniques. 3. Jobs had invited Donna in past to be a part of Macintosh team, prospect was rejected by Donna. Therefore, Job may be making irrational changes. (Assumption). 4. She was betting her career and taking the distribution change issue too personally. 5. After the structure changed, they have their new boss. Weaver and Donna both were uncertain about the relationship with their new boss. 6. Moreover company shares were declining showing firm was unable to cope with competitive market. It could be due to structure change from top to bottom which is unacceptable. Hence fast changes in industries are unacceptable. Analysis:
1. Lack of actions in sale forecasting side, as it is causing high revenues. Donna should look sale forecasting pattern. 2. Donna and Weaver had presented their plan to develop additional distribution center at wrong time which initiate the conflict. 3. Since Job was interested in projects only, in order to overcome sale issues of Macintosh, he targeted the distribution system to minimize expenses. As quoted in case “ In order to defend themselves, they [the macintosh Division ] went on attack” 4. Donna‘s boss Weaver was confused and since she dependent on weaver for most of her decision she was unable to solve the problem, as quoted “Roy had been best...