Introduction to apple
Apple, Inc. is an electronics and software company based in California, USA. Originally known as Apple Computer, the company is familiar to most people as innovators of the personal computer as it is known today. Apple Computer had introduced many of the now-commonplace features of personal computers, including the GUI, the mouse, the floppy disk drive, and colour graphics
Apple also sells intangible goods in the form of software, music, and video. The Apple Store chain operates over 150 branches worldwide, where the devices and software and sold and serviced
Although Apple does distribute software for the Microsoft Windows operating system, this is limited to its QuickTime media player and iTunes connectivity suite for the iPod. The iPod media player is today Apple's main source of revenue. Apple TV, introduced in March 2007, is a controversial device that is not expected to bring much income to Apple, rather, to help secure Apple's foothold in the content distribution market.
1976–1980: Saw apple's first product being sold (pi. Sold as an assembled circuit board, it lacked basic features such as a keyboard, monitor,) Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, to sell the Apple I personal computer kited case. Went on sale in July 1976 and was market-priced at $666.66.
January 3, 1977 Wayne sold his share of the company back to Jobs and Wozniak for $800. Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of apple.
The Apple II was introduced on April 16, 1977 at the first West Coast Computer Faire (Wikipedia, 2009). By the end of the 1970s, Apple had a staff of computer designers and a production line. The Apple II was succeeded by the Apple III in May 1980 as the company competed with IBM and Microsoft in the business and corporate computing market.1981–1985: Lisa and Macintosh
1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles
The Macintosh 128K, the first Macintosh computer in 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial,
Apple's sustained growth during the early 1980s was partly due to its leadership in the education sector, attributed to their adaptation of the programming language LOGO, used in many schools with the Apple II. The drive into education was accentuated in California with the donation of one Apple II and one Apple LOGO software package to each public school in the state.(wikipedia,2009)
1986–1993: Rise and fall
In 1989 Apple released its first "portable” Macintosh computer i.e. The Macintosh Portable. Apple during those years also experimented with a number of other failed consumer targeted products including digital cameras, portable CD audio players, speakers, video consoles, and TV appliances. They also invested heavily in the widely documented, problem-plagued Newton division based on John Scullery’s unrealistic market forecasts. However, all of these failed experiments were taking its toll on Apple’s market share and its stock prices continued to slide spectacularly (wikipedia,2009)
1994–1997: Attempts at reinvention
The much hyped but failed Newton was Apple's first foray into the PDA markets however it helped pave the way for the Palm Pilot and Apple's very own IPhone. In 1997 at the Macworld Expo, it was revealed that Microsoft invested150 million dollars in Apple’s non-voting stock and that Apple and Microsoft were to release a new version of Microsoft Office for the Macintosh. Apple then introduced its Apple Store, tied to a new build-to-order manufacturing strategy in November 10, 1997 and the very next year they announced the purchase of Macromedia's Final Cut software, thus venturing into the digital video editing market.
However it was on October 23, 2001, Apple introduced the iPod digital music player which till today is the market leader in portable music players and in May the same year Apple opened its first official Apple Retail Stores in Virginia and California. In 2002 Apple purchased Nothing Real for their advanced digital compositing application Shake
And in 2003, they launched Apple's iTunes Store; offering online music downloads which was integration with the iPod, (Wikipedia, 2009)
2005–present: The Intel partnership
Company headquarters on Infinite Loop in Cupertino, California.
January 9, 2007, CEO of Apple Computer Inc, Steve Jobs announced that, Apple Computer Inc. would henceforth be known as Apple Inc. This event also saw the announcement of the iPhone and the Apple TV.
Apple the very next year in July launched its Apple Store to sell third-party applications for the iPhone and iPod Touch (Wikipedia, 2009)
2) Approach Adopted
One of the recent approaches adopted by Apple Inc is protecting the environment by going green and reducing the carbon print with there latest line of Mack books. In today’s day it has become critical to the conservation of precious natural resources and the continued health of our planet. Apple recognizes its responsibility towards the society and continually strives to reduce the environmental impact of the work they do and the products they create.
Apple and your carbon footprint
Apple is constantly working on minimize the impact on the environment and the best way for that would be by making products more energy efficient and environment friendly.
In October 2008, Apple provided us with estimates of the greenhouse gas emissions generated by each new product sold. For example, manufacturing and using a Mac Book — our most popular notebook — results in 460 kg of CO2e emissions over four years of use. According to the EPA, that's about the same amount the average car emits in a month. This is what the Apple’s Environment team arrived to. Wish was also verified by the Fraunhofer Institute in Germany, a leader in the field of life cycle analysis.
At Apple emissions on a per-product basis is provided to the customers, which also allows the customer to make informed decisions about their own carbon footprints. Customers can also track the progress of the company’s progress in reducing carbon emissions each time a new product is introduced.
Many harmful toxins eliminated.
Apple has worked hard to eliminate many of the toxins used in manufacturing a note book. Take, for example, the mercury used in backlights and the arsenic contained in the glass of traditional displays and more such harmful toxins. Apple has removed these toxins from Mac Book computers, and the same has been done for Apple LED Cinema Display, iPod touch, iPod classic, iPod nano, and iPhone 3G, which are used on a day-to-day basis and by a large amount of customers.
The Mac Book body enclosure is formed from a single piece of solid, recyclable aluminium, replacing dozens of irrelevant parts. The display is made of recyclable glass. Both materials are very desirable to recyclers, which mean the raw materials used in the new Mac Book computers can be reused in other products.
More energy efficient.
At Apple both the hardware and the software for the Mac Book are made. Hebce it allows them to make a smarter product that uses less electricity, earning it ENERGY STAR certification. For instance, to reduce energy consumption, the Mac Book hard drive spins down automatically when inactive. The Mac Book also decides which processor — CPU or GPU — is best created to efficiently perform a task. The processor even throttles down to save power between keystrokes as you type. The LED-backlit display in the Mac Book is another feature that plays an important part in conserving energy, consuming 30 percent less power than conventional LCD displays.
Longer-lasting battery in 17-inch Mac Book Pro.
The removable batteries in most notebooks are designed to be replaced every year or two, which means lots of batteries, are used up and discarded. But the battery in the new 17-inch Mac Book Pro lasts up to five years — or 1000 recharges. So it uses just one battery in the same time a typical notebook uses three.
(Apple INC 2009 online)
3) EFFECTIVE LINKAGE
When Apple launched its touch screen iPhone 3G at its flagship London store, there were queues of excited individuals, keen to own a device which is equal parts a phone, MP3 player and wireless web browser.
Apple has launched its new iPhone decisively into Blackberry’s business market, by improving security, e-mail and allowing third-party software to run on its platform, and importantly more stylish . However, this is not a challenge Research in motion (Rim). Makers of Blackberry, was going to take lightly and it was determination to fight back could be seen with its most consumer-friendly phone yet. “The Bold”, which had a multimillion dollar marketing campaign, “Life on Blackberry”, Both these companies are aiming at making the competitive smart phone business pay, Blackberry is dominant in the larger end of the corporate market, but is facing tough competition among smaller companies that use Microsoft’s mobile operating system, which can be cheaper. Apple not to be left behind has set a target of selling 10m iPhone 3G devices worldwide, which could be a challenge in the present weakening global financial environment but analyst like Andrew Brown thinks that “Apple is in a good position to slaughter the lot of them because they’ve kept it pretty simple and accessible.”
Innovation seems to be the key, and Apple seems to have its strategy spot on. One of Blackberry’s attempt in innovation was the colourful edition of the Blackberry Pearl aimed at women consumers. But the attempt was scoffed by analyst and competitors like Nokia’s senior vice-president of devices, Søren Petersen who caustically remarked that “Selling to women is about more than making it pink,” Blackberry users have thousands of downloadable applications to choose from – if they can find them. Blackberry relies on third parties to distribute compatible software and its consumer offering is very limited. On the other hand, more than 1,700 iPhone applications – around a quarter of them free – can be downloaded direct to the handset or iTunes. Importantly for developers, Apple customers have shown themselves willing to pay for digital download, Apple claims to have made $30m (£15m) from 60m downloads in the first month that the iPhone was available.”
The effective External Linkage
A company’s business can hardly flourish without dedicating substantial resources towards innovation which is in sync with the
Company’s overall business strategy. Different types of innovation strategies exist but the skill is in picking the strategies that fits the company’s internal condition and its external competitive and market situation.
Capabilities in the external net work:
Apple like any other organisation requires to access resources through building successful internal and external network associations.
There is a very well established link between accessing external know-how and successful innovation. Gold (1987) makes the point that use of external R&D can speed up new product development, as can buying or licensing in existing technology and licensing in external technology would reduce the cost of technological development in cases where the firm is seeking to incorporate technology outside its areas of core competence. An external alliance with other organisation that has complementary resource thus helps to reduce both the time and the cost of developing radical new products and becomes an important tool for deciding the innovation strategy’s for the future.
Industry Structure: The industry structure itself is a factor and an analysis of this structure points out where the main obstacles and opportunities for innovation reside. Understanding the dominant industry value chain, who dominates and why, and the structure of the barriers to entry are important inputs to the design of an innovation strategy.
Competition: The one who is capable of innovating with quality and speed will determine the shape of the market in the years to come. While organization may be ruling the roost in the current market, current competitors could change or new competitors could enter. Apple seems to recognise the nauseas of competition as they have quickly followed the iPod and iTunes with the introduction of iPod mini, effectively blunting lower-end copy cut versions of the iPod and online music offerings from Sony and Microsoft.
Henry Chesbrough and Open Innovation
Henry Cherbourg is one of the pioneers of the open innovation philosophy, in his 2003 book; he successfully shared a perspective that several leading firms have been moving from an internally focused innovation process to one that is more ‘open. Quoting varied examples from Xerox Parc, Intel, IBM and Lucent, he successfully positioned an increasing use of external sources of ideas and technology and external channels to market as a new approach to innovation. The core logic of the open innovation concepts has been; that good ideas are widely distributed with no-one having a monopoly, that first to discover is neither sufficient nor necessary for commercial success, that a better business model beats and better technology. Alongside such technology licensing and spinning out of capabilities or know-how, the out-sourcing of development that could potentially be done equally well within the organisation but which strategically be more beneficial to move externally activities has also been a key part of innovation.
In a global market, companies are today out-sourcing more of the development aspect and not research. Design consultancies such as IDEO have been providing external product innovation support for HP, APPLE and SAMSUNG - in the same manner as that provided today by software developers such as Wipro and Info system in India.
The open innovation concept is very successfully when it mates internal concepts with out-sourcing of development. Different examples of Apple, Lilly, Philips and DSM collectively provide some idea of the innovation collaboration currently in operation. Apple’s iPod is, to some extent, a leading example of open innovation. That predates the concept - and one driven initially by an external catalyst: Within eight weeks of being first proposed the integrated MP3 player concept by an independent contractor in 2001, Apple had hired the inventor to develop an initial product solution and then lead the development team to bring it to market. Drawing together collaborative external resources from the likes of Texas Instruments, Toshiba and Sharp, the technical development was largely put in the hands of Portal Player a technology development company. Involving Apple’s internal design team and interface developers, the iPod was launched and is already part of contemporary history. The key open innovation elements here were the readiness of Apple to both accept an external idea and then relying on getting the most of the development out of its collaborative partnership – nearly simultaneous in-sourcing of concept and out-sourcing of development.
4) Implementation of mechanisms
Apple has always implemented unique mechanisms in their innovations, which has identified them as the leading innovative company in the world. Apples first invention The Apple-I was sold as a motherboard (with CPU, RAM, and basic textual-video chips).
Apple tried to keep the difference in their mechanism from the very beginning. The Apple II differed from its major rivals, the TRS-80 and Commodore PET, because it came with color graphics and an open architecture. While early models used ordinary cassette tapes as storage devices, they were superseded by the introduction of a 5 1/4 inch floppy disk drive and interface, the Disk II.
Apple II gave the company the edge to survive and a platform to stand on. Since the early days apple implemented their own mechanisms to their thousands of products.
The Apple III started with powered by a 2 MHz SynerTek 6502A 8-bit CPU and, like some of the more advanced machines in the Apple II family, used bank-switching techniques to address up to 256 KB of memory.
Apple Inc. introduced The Macintosh in 1984. It was the first commercially successful personal computer to feature a mouse and a graphical user interface rather than a command-line interface.
In 1989, they introduced The Macintosh Portable, Apple Computer's first attempt at making a battery-powered portable Macintosh personal computer that held the power of a desktop Macintosh.
They came with The PowerBook in 1991, as a line of Macintosh laptop computers that was designed, manufactured and sold until 2006.
These machines caused a stir in the industry with their compact dark grey cases, use of a trackball, and the clever positioning of the keyboard which left room for palm rests. Portable PC computers at the time tended to have the keyboard forward towards the user, with empty space behind it, so this was a surprising innovation. http://en.wikipedia.org/wiki/PowerBook
Power Macintosh, later Power Mac, is a line of Apple Macintosh workstation-class personal computers that was developed, marketed, and supported by Apple Inc. using IBM's PowerPC processor.
The introduction of iMac gave Apple a new beginning. Original iMac was the first Macintosh computer to include a USB port. In fact, USB was the only peripheral interface built into the original iMac.
Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released aimed at consumers and professionals alike, Mac OS X aimed to combine the stability, reliability and security of UNIX with the ease of use afforded by an overhauled user interface.
iPod is a brand of portable media players designed and marketed by Apple Inc. The product line-up includes the hard drive-based iPod Classic, the touch screen iPod Touch, the video-capable iPod Nano, and the compact iPod Shuffle. The iPhone can function as an iPod but is generally treated as a separate product. iPod Classic models store media on an internal hard drive, while all other models use flash memory to enable their smaller size As with many other digital music players, iPods, excluding the iPod Touch, can also serve as external data storage devices. Apple operates the iTunes Store a software-based online digital media store where apple implemented the digital rights management.
Apple's iTunes software can be used to transfer music to the devices from computers using certain versions of Apple Macintosh and Microsoft Windows operating systems. For users who choose not to use Apple's software or whose computers cannot run iTunes software, several open source alternatives to iTunes are also available. iTunes and its alternatives may also transfer photos, videos, games, contact information, e-mail settings, Web bookmarks, and calendars to iPod models supporting those features.
Apple began producing Intel-based Mac computers in 2006. The new MacBook Pro and iMac became the first Apple computers to utilize Intel's Core Duo CPU. Apple had transitioned the entire Mac product line to Intel chips, over 1 year sooner than announced. The Power Mac, iBook, and PowerBook brands were retired during the transition, the Mac Pro MacBook, and Macbook Pro became their respective successors.
Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.
Apples biggest success is the iPhone. The iPhone is an internet-connected multimedia Smartphone with a flush multi-touch screen and a minimal hardware interface. The device does not have a physical keyboard, so a virtual keyboard is rendered on the touch screen instead. The iPhone has several functions such as a camera phone (including text messaging and visual voicemail), a portable media player (equivalent to an iPod), and an Internet client (with email, web browsing, and local Wi-Fi connectivity). The first-generation phone hardware was quad-band GSM with EDGE; the second generation also adds UMTS with HSDPA. Later on they added 3G technology.
And in recent days The iPhone and iPod Touch enable users of those devices to add links to web sites to their home screen. Apple calls these WebClip Bookmarks. By default, the icon used for this home screen is a thumbnail screenshot of the page in question, but Apple has provided a mechanism for site owners to specify an icon to be used instead. (http://allinthehead.co)
“Apple created Safari to bring innovation, speed and open standards back into web browsers, and today it takes another big step forward,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “Safari 4 is the fastest and most efficient browser for Mac and Windows, with great integration of HTML 5 and CSS 3 web standards that enables the next generation of interactive web applications.”
Apple announced, a new application suite will soon be available for iPhone users who will be able to share Microsoft Word and Excel files on their phones. Quick office for iPhone features a broad range of editing and file-management functions.
Among the main Word-document, editing capabilities included into Quickoffice for iPhone there are such as font formatting, text selection, bulleting, and cut, copy, and paste within Word documents. As for Excel-features, these will include math and stat functions, cell editing, the ability to recalculate entries, and to insert and resize rows and columns.
5) PERFORMANCE OF THE ORGANISATION
TMIA ASSIGNMENT APPLE, (d) Jeannette
Despite the temptation to batten down the hatches and weather the storm, leading industry players across the world are reaffirming their commitment to innovation: in recent interviews, A G Lafley, CEO of Proctor & Gamble, has underlined the fact that innovation remains a fundamental part of the company's long-term business strategy. Just last month, Microsoft founder Bill Gates said that the upturn, when it comes, would be driven by innovations in science and technology. These upbeat pronouncements echo the actions taken by many organisations during the last significant economic downturn, earlier this decade; it was then, for example, that Apple famously decided to innovate, rather than retrench, by opening a string of retail outlets. Much derided at the time, Apple stores have built significant commercial and brand value.
Although Apple is world leading brand, its philosophy can benefit even the smallest organisation faced with a review of strategic business options. In a recession, cost-effective targeted innovation is more relevant than ever before; it can be deployed to reveal new market opportunities, make more of current assets, and can ensure R&D spend works even harder.
What we have observed is that while clients remain committed to long term innovation, budget pressures are making them more selective in their approach. Companies need to identify where best to focus innovation spend, homing in on those opportunities where innovation can deliver in the short to medium term, ideally giving a return on investment within the same financial year.
Of course, the credit crunch is changing the landscape in which we have to operate. With price now driving many purchasing decisions, suppliers have to innovate in order to create differentiated products that offer the value that justifies a sustained or higher cost. We have found that a marriage of service and product is one mechanism for delivering this value, and providing products that consumers really want and are prepared to seek out.
For APPLE service innovation is all about building a closer relationship between supplier and customer. This increased customer engagement can provide more detailed understanding of market sectors, generating customer data of much greater quality. This leads to sharper marketing campaigns and better use of budgets.
APPLE believes that innovation is the key to surviving the recession – it can generate more business from existing assets or reveal new income streams with the potential to withstand the economic downturn. Innovation is not easy to start but it’s just as hard to turn off – companies already investing in innovation should regard it as a core element of their business, essential for both immediate survival and longer term prosperity.
Apple announces Safari 4 Web browser public beta
Safari 4 now available for Mac and PC
Billed as the world’s fastest and most innovative Web browser for Mac and Windows PCs, Apple has announced the ability Safari 4 as a public beta.
New in Safari 4 is Top Sites, a visual preview of frequently visited pages; Full History Search, to search through titles, Web addresses and the complete text of recently viewed pages.
6) IMPROVE THE MANAGEMENT OF INNOVATOION WITHIN THE ORGANIZATION (FAROOQ)
Apple’s is a technological product oriented company and its success in creating products like the iPod and computers is to a large extent attributed to the bold managerial skills of its chief executive Steven Jobs. He founded Apple in 1976, was ousted in 1985 and made an triumphant return in 1997. His innovative and groundbreaking strategies have led Apple to hold a monopoly on the graphical user interface for almost ten years now.
Innovation is a combination of new ideas and action or implementation, which results in an improvement, gain or profit. A firm to successfully innovate must create a conducive environment for information creation and evaluations of all procedures,
Product innovation one way that an organisation can adapt to changes in markets, technology and competition. Apple has effectively managed her innovation through the following ways:
a) Competitive advantage and proprietary technology:-. Competitive advantages are the benefits one firm enjoys over the other. In 1983, Steve Jobs visited Xerox Parc and there saw technology vision of new personal computer. This vision was introduced in Lisa that is in 1983, and the second generation of technology in personal computer was introduced in 1984. Apple introduced Lisa to compete with IBM but results were disappointing so Macintosh a smaller version of Lisa was drafted in and priced in IBM range. Macintosh continued to lead in technology over IBM for a decade until 95 when Microsoft caught them up with Windows 95. Since then no firm has ever dominated the technological market for a long time. (Betz 2005).
Allio (2003), talks about strategy and leadership. Innovation management and strategy is so paramount in a company.
Effective Managers need to be good strategist and leaders and be abreast with the current market and consumer trends to effectively lead the company into the future. It’s of paramount importance for them also to seek alliances with other individuals and companies who exhibit creative thinking and engage them in brain storming important issues.
Sutton (2001) relies on his psychological background to point out that Innovation can be employed in hiring, managing and motivating people, building teams, making decisions and interacting with the outsiders. Sutton stated, “We are told to hire people who will fit in, to train them extensively and to work to instil a corporate culture in every employee.” He further emphasised the point that sometimes even apparent misfits can defy convention and contribute significantly to
b) Organisation learning: - Organisation learning occurs through shared insights, knowledge, mental models and it facilitates organisations to foster change and carry out meaningful improvement.
In knowledge intensive industries the quality and rate of learning is an valuable tool in sustaining competitive advantage.
According to Schneider (1994) organisation learning is another measure in which organisations like Apple have managed to sustain their innovation. Organisation learning’s success largely depends on memory of individuals and the Organisation’s memory, which is embedded in its policies, strategies and explicit models, developed to retain its knowledge.
c) Talent management:-
One of the important roles that Steven Jobs has performed for Apple
is that of fostering talent either by hiring talent individuals or providing a challenging role for those individuals who arrived in Apple’s fold after a takeover.
(Florida and Kenney 1990) state that talent management is the process of ensuring that the organisation attracts, motivates and develops the people it needs within the organisation.
d) Stretch goals:-You have to set goals for the team in line with the company’s specific and general objectives. Each manager has his own unique style developed over the years spent in the company or through
general professional experience. Gundling (2000) stated that “ The 3m’common craft however is to seek out the middle ground, finding reconciliation and integrating opposites......3mers who ask a manager to finance a good idea may find that she or he is comprising willing to offer support”.
To sum up, Apple Company has been an innovation starlet and under Steven Jobs many innovative products have found phenomenal success and acclaim. Apple has to stay focused on its strengths like innovation as it has a reputation to guard, a one of success.
7) FUTURE WITH IN THE INDUSTRY
“We're now living in a world where it's innovation that creates wealth," says Gary Hamel, founder of the consultancy Strategos and a visiting professor at the London Business School.
And a level up from that you have what I'd call architectural innovation. This is when you get a whole industry thinking differently -- what Apple did with iTunes to get all these music companies to agree to a new digital rights management system.
At the top you have management innovation. All of my research suggests that it's management innovation that has created the most enduring source of competitive advantage.
Whose observation are these ?????????????/
BusinessWeek's 2007 hails Apple Inc. (NASDAQ: AAPL)as the world's “”Number One Innovative Company, three years in a row and proclaims that "their creativity goes beyond products to rewiring themselves."
Apple thus has without a shade of doubt demonstrated that it’s on the helm of innovative companies in the world, its products always equipped with the latest technology and design innovation.
Apple’s attempt at consumer satisfaction can be highlighted by the changes introduced in the new apple series wherein video recording was introduced to eliminate what was seen as a weakness in the last version. This could be seen as a movement to get more stake in the mobile phone market, but importantly it highlights the company’s determination to constantly improve its products, engage in short term productive plans as per market conditions and above all constantly innovate to stay one step ahead of its competitors at all times.
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