Study Case :Study Case :Donna Dubinsky &Donna Dubinsky &

Apple Computer, Inc.Apple Computer, Inc.

Buku : Managing Change; Case & Buku : Managing Change; Case & Concept, Todd D. Jick, McGraw Hill, Concept, Todd D. Jick, McGraw Hill,

second edition, p.286-299second edition, p.286-299

Donna DubinskyDonna Dubinsky

Dubinsky, a yale graduate and MBA from Dubinsky, a yale graduate and MBA from Harvard.Harvard.

In 1981, started as customer support liaison In 1981, started as customer support liaison in departmen distribution,service and in departmen distribution,service and support group . support group .

April 1985, became director of distribution April 1985, became director of distribution and sales administration.and sales administration.

Her management style, caring and honest Her management style, caring and honest relationship with her subordinated. relationship with her subordinated.

Company BackgroundCompany Background Founding in 1976Founding in 1976 1977, release Apple II, a home and educational 1977, release Apple II, a home and educational

computer.computer. In 1983, Cofounder, Steve Jobs, hired John In 1983, Cofounder, Steve Jobs, hired John

Sculley as presidency at AppleSculley as presidency at Apple In 1984, Macintosh first introducedIn 1984, Macintosh first introduced By 1985, Apple II sales failed to reach projected By 1985, Apple II sales failed to reach projected

planning levels, causing profitability problems. planning levels, causing profitability problems. Tension were mounting between Apple IITension were mounting between Apple II Apple attempted to create and solidify a sense of Apple attempted to create and solidify a sense of

identity by developing a statement basis of basic identity by developing a statement basis of basic valuevalue

Apple ValueApple Value

Empathy for customersEmpathy for customers Achievement / AggressivenessAchievement / Aggressiveness Positive Social ContributionPositive Social Contribution Innovation/visionInnovation/vision Individual PerformanceIndividual Performance Team SpiritTeam Spirit Quality/excellenceQuality/excellence Individual rewardsIndividual rewards Good managementGood management

Product Distribution At AppleProduct Distribution At Apple

Donna Dubinsky in 1984 became distribution Donna Dubinsky in 1984 became distribution manager with responsibility 6 fields warehouses manager with responsibility 6 fields warehouses and sales adm., inventory control, and customer and sales adm., inventory control, and customer relations.relations.

Because Apple’s operation was primarily design Because Apple’s operation was primarily design and assembly, warehousing control for parts, work and assembly, warehousing control for parts, work in process and finished good were potentially in process and finished good were potentially costly and critical to Apple profits.costly and critical to Apple profits.

Planning and analysis were luxuries for product Planning and analysis were luxuries for product distribution in Apple.distribution in Apple.

The Distribution Conflict ; September The Distribution Conflict ; September to December 1984to December 1984

The conflict began in September 1984, when Dubinsky The conflict began in September 1984, when Dubinsky and her boss, Weaver presented the distribution, and her boss, Weaver presented the distribution, services and support for 1985’s plan. services and support for 1985’s plan.

Jobs, the president complaining that he not receive a Jobs, the president complaining that he not receive a good explanation for current distribution, service and good explanation for current distribution, service and support cost levels and structure.support cost levels and structure.

A few later, Jobs meet Fred Smith, CEO of A few later, Jobs meet Fred Smith, CEO of Federal Express. They talked about Just in Time (JIT) Federal Express. They talked about Just in Time (JIT) distribution which been used by IBM for their computer distribution which been used by IBM for their computer components.components.

Jobs saw a potential for reducing cost in this JIT, which Jobs saw a potential for reducing cost in this JIT, which could eliminate the need for Apple’s warehouse, carrying could eliminate the need for Apple’s warehouse, carrying costs and extensive inventory.costs and extensive inventory.

JIT projects was been investigated by Job JIT projects was been investigated by Job and Debi Coleman, Director of and Debi Coleman, Director of manufacturing that JIT could efficiently in manufacturing that JIT could efficiently in corporate the distribution function.corporate the distribution function.

The project is more attractive to Jobs The project is more attractive to Jobs because Macintosh sales were down.because Macintosh sales were down.

Dubinsky, however, believed the change Dubinsky, however, believed the change proposed by Jobs was a mistake. She and proposed by Jobs was a mistake. She and Weaver had diffuculty taking this new Weaver had diffuculty taking this new distribution idea seriosly. distribution idea seriosly.

The Distribution Task Force, January The Distribution Task Force, January – April 1985– April 1985

The conflict sharpened when Coleman would be The conflict sharpened when Coleman would be presenting her distribution proposal in executive meeting presenting her distribution proposal in executive meeting in Pajoro Dunes.in Pajoro Dunes.

That meeting is messed up, The disagreements grew That meeting is messed up, The disagreements grew between Jobs and Sculley and Jobs was pressuring between Jobs and Sculley and Jobs was pressuring Sculley to accept Coleman’s proposal.Sculley to accept Coleman’s proposal.

The conflict was resolved by entrust the distribution The conflict was resolved by entrust the distribution problem to task force composed of the parties involved problem to task force composed of the parties involved and a few “neutral” individuals.and a few “neutral” individuals.

This form of task force disappointed Dubinsky, she still This form of task force disappointed Dubinsky, she still believe that distribution is her job and Coleman’s believe that distribution is her job and Coleman’s proposal is not just simply suggested improvements, but proposal is not just simply suggested improvements, but it was total change in distribution and manufacturing it was total change in distribution and manufacturing strategy, taking Apple from supply driven to demand strategy, taking Apple from supply driven to demand driven procedures and reducing the distribution and driven procedures and reducing the distribution and warehouse centers from six to zero. warehouse centers from six to zero.

The Ultimatum;The Ultimatum;April 19, 1985April 19, 1985

In April 1985, Dubinsky meet Campbell, in In April 1985, Dubinsky meet Campbell, in their meeting she acknowledge her previous their meeting she acknowledge her previous blind spot, and she asked for 30 days to get blind spot, and she asked for 30 days to get her own distribution strategy, but without the her own distribution strategy, but without the interference of task force.interference of task force.

Campbell doesn’t agree about no Campbell doesn’t agree about no interference by task force.interference by task force.

Dubinsky give ultimatum: If Campbell did not Dubinsky give ultimatum: If Campbell did not agree to her terms, she would leave Apple.agree to her terms, she would leave Apple.

Campbell was frustrated because he knew Campbell was frustrated because he knew that Jobs was pushing Sculley to accept that Jobs was pushing Sculley to accept Coleman’s plan and Campbell had no Coleman’s plan and Campbell had no alternative plan from his group to offer alternative plan from his group to offer Sculley.Sculley.

The task force group made finally report The task force group made finally report that they agree that JIT concept was the that they agree that JIT concept was the best direction for Apple to pursue, but it best direction for Apple to pursue, but it had not agreed on feasible implementation had not agreed on feasible implementation plan.plan.

This report was reject by DubinskyThis report was reject by Dubinsky