Apple and Jobs

8/2/2019 Apple and Jobs

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Apple and Jobs

How Has Organization Changed

Abstract:

BMOM5203Organizational and BusinessManagement

Prepared by:Liaw Kim JuanCGS00658301



Apple and Jobs – How Has Organization Change

1. Table of Contents1. Table of Contents .......................................................................................22. Acknowledgement .....................................................................................33. Introduction ................................................................................................4

3.1 Steve Job and his background ...............................................................43.2 Apple Inc ...............................................................................................4

4. Steve Jobs and Apple Inc ............................................................................64.1 Period 1975 – 1981 ...............................................................................64.2 Period 1981 – 1985 ...............................................................................74.3 Period 1986 – 1992 ..............................................................................84.4 Period 1993 – 1997 ...............................................................................84.4 Period 1998 – 2004 .............................................................................10

5. Internal Environment ................................................................................115.1 Steve and the Top Management Team ................................................115.2 Corporate Structure and Culture .........................................................11

5.3 Corporate Resources ...........................................................................116. External Environment ...............................................................................12

6.1 The PC market ....................................................................................126.2 Competitor Policy ................................................................................126.3 External software and Peripheral........................................................126.4 Economy .............................................................................................126.5 Rules and Regulations .........................................................................12

7. Steve Jobs Leaderships .............................................................................137.1 Steve Jobs Business Strategy ..............................................................137.2 Implementation and Control................................................................137,3 Market Share .......................................................................................13

................................................................................................................... 13References ...................................................................................................14Appendix ......................................................................................................15

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2. Acknowledgement

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3. Introduction

3.1 Steve Job and his background

3.2 Apple Inc

3.2.1 Company Profile

Apple Inc. or formerly called Apple Computer Inc. was established by the key foundersSteve Jobs, Steve Wozniak, and Ronald Wayne on 1 April 1976.

The company was incorporated at 1 January 1977. After 30 years using Apple

Computer, Inc, The word "Computer" was removed from its name on 9 January 2007,as its traditional focus on personal computers shifted towards consumer electronics.

In the early stage of the company grow; Apple focused their business in computer software and personal computers. Now, Apple provide wide range of product, fromconsumer electronic, software to internet and cloud services.

The company's best-known hardware products are the Macintosh line of computers,the iPod, the iPhone and the iPad. Its software includes the Mac OS X operatingsystem; the iTunes media browser; the iLife suite of multimedia and creativitysoftware; the iWork suite of productivity software; Aperture, a professional

photography package; Final Cut Studio, a suite of professional audio and film-industrysoftware products; Logic Studio, a suite of music production tools; the Safari webbrowser; and iOS, a mobile operating system.

As of July 2011, Apple has 357 retail stores in ten countries, and an online store. Ithas been the largest publicly traded company in the world by market capitalization,swapping spots with ExxonMobil, and the largest technology company in the world byrevenue and profit. As of September 24, 2011, the company had 60,400 permanentfull-time employees and 2,900 temporary full-time employees worldwide; its worldwideannual sales totalled $65.23 billion, growing to $108.249 billion in 2011.

In year 2011, Apple Inc rank 35 in Fortune 500. 21 steps better compare to year 2009.

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3.2.2 Vision and Mission

Vision:Man is the creator of change in this world. As such he should be above systems andstructures, and not subordinate to them.

Mission: Apple is committed to bringing the best personal computing experience to students,educators, creative professionals and consumers around the world through itsinnovative hardware, software and internet offerings.

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4. Steve Jobs and Apple Inc

Figure 1: Apple product’s Timeline

4.1 Period 1975 – 1981

Figure 2: Apple 1, first own built product of Apple

Apple Computer in first headquarter was in Steve’s parent garage, when Steve Jobsand Steve Wozniak, along with Ronald G. built the first Apple prototype there. 6months later, they start making tiny profit, splitting a monthly salary of $250.

Their first formal business plan is setting a goal for sales to grow to 500 million in tenyears. They successfully achieved the target within 5 years.

Jobs and the team decided to build his own preassembled computer circuit board,named Apple I. The first prototype has taken 6 months to design and about 40 hoursto build. The Apple I doesn’t attract much attention from the market.

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Ronald Wayne left the company shortly after Apple delivered their first order. Thereason behind this was because Jobs planned to go highly in debt to build largequantities of the Apple I. Having lost a lot of money in other investments with newcomputer companies, he wrote a letter of resignation to Apple and gave back his 10%in Apple stock.

The rise of the Apple is not from Apple I. 1977, when the Apple II came out at a localcomputer trade show. As the first PC to be sold in a plastic case and including color graphics, the Apple II becomes an impressive machine. Apple II starts the personalcomputer revolution.

By 1980, Apple had several thousand employees, with a market share of 50% andbeginning to sell computers abroad. Steve Jobs belief “one person-one computer”. Hestarts focus more on creating new and different product. At the end of 1980, Applewas change from single product company; create division of Apple II, Apple III, LISA,accessories, sales and services. In the first 6 years, Apple has successfully grow from$793,000 to $76,714,000.

4.2 Period 1981 – 1985

Apple product has its own standard, which is different from IBM-Microsoft-Intel (Wintelmodel) model. Starts 1981, competition become tougher. Several competitors such asDell, Compaq and Gateway have entered to PC market. This competitor is more tosupport IBM model.

This decision was tough to be made. Apple starts losing its market share. Within 4years, Apple declines its market share up to 70%.

Jobs tried to differentiate Apple by following a strict non-licensing, patent-regulatedpolicy. Very soon Apple trapped into a situation where it starts losing its competitive inPC strategies.

This is because:- Increase the cost of R&D to develop all invention and innovative works by itself.

Where Wintel model share the fruitful of IBM open standards.- Less features compare IBM, in both hardware and software- Narrow customer to support Apple/Mac system- IBM’s always react faster to market. This makes market lost confident of Apple

product.

Disappointing market performance was attributed to internal problems. In years 1983,John Sculley, president of Pepsi-Cola USA domestic operations, was recruited andbecame president and CEO of Apple. Jobs believed that Apple should focus ontechnology, Sculley preferred to go along customer needs.

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In 1985, the board took a vote. Sculley was chosen to replace Jobs position. Jobsresign from Apple in the mid of 1985.

.

4.3 Period 1986 – 1992

After Jobs leave Apple, Sculley leads Apple. Many key decisions have been delayed,postponed or avoided. At 1989, Windows launched the Windows 3.0 OS, Applebusiness was hit badly. 1990, market is saturated with Windows operated PC. Peoplenot only earning money in provide the hardware, but also through licensing thesoftware. It becomes clear that Apple during that period can not provide both softwareand hardware.

1991, Apple launched the first generation of PowerBook, which has an instantsuccess.

Product and marketing strategy was adjusted. Apple tried to include third partyhardware and software access to MAC product. But since early stage Apple investless time and money in the research, it become too costly to develop Mac OS. Thismake Apple sell much fewer copies than those provided IBM compatible machine.

Apple marketing strategy focused more towards corporate market to win space from

IBM. Two new computers for the business market were introduced: the Macintosh SEand the Macintosh II. These products attracted larger software houses that developedsophisticated applications for large business users. Nearly half of Apple’s sales andmost of its profits came from selling PC’s and related products to big corporations.

4.4 Period 1993 – 1997

In June 1993, Sculley was reviewed his position of CEO and replaced by MichaelSpindler. Spindler was the wrong man for the job. A new Mac operating systemcalled Copland was 2 years behind schedule.

In 1994, Apple announced the PowerMac family, the first Macs to be based on thePowerPC chip and secretly began talks to sell the company with Sun Microsystems,IBM, and Hewlett-Packard.

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In winter 1995, Spindler misjudged the market. He pushed low-cost PCs over mid-range PowerMacs and failed to make a profit at all. Apple posted a $68 million loss for one quarter.

In January 1996, Spindler was asked to resign as CEO and was replaced by Gil Amelio, the former president of National Semiconductor. Despite making a strongeffort to bring Apple back to profitability, Amelio’s efforts proved to be largelyunsuccessful.

Figure 3: Market share vs net profit while Jobs leave Apple

In late 1996, Apple makes a big announcement that Steve Jobs will return. He tookover the position as a interim CEO and began to change the structure of Apple andalso announce an alliance with Microsoft. In exchange for $150 million in Apple stock,Microsoft and Apple would have a 5-year patent cross-license.

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In addition, as clone production from companies such as Power Computing or UMAXhad failed to effectively expand the Mac OS market, instead taking customers awayfrom Apple in the high end market, Jobs ended this licensing.

Other changes in the corporate strategy comprised direct-computer selling via the weband new products (Apple Online-Store, PowerMac G3 Computer) such as the iMacwere published with a focus on innovative design. Finally, Apple reached profitabilityfor the first time within one year.

4.4 Period 1998 – 2004

Although Microsoft selling well, Microsoft has face several lawsuits against this“predatory” situation as critics argue. Apple continuously grows. IMac was becomeone of the best selling computer in US.

Jobs formulated Apple’s internet strategy as “a suite of Mac-only internet-basedapplications called iTools”. Several digital lifestyle product such as iDVD, iTune andiPod. This innovative product line was a consistent part of Apple’s new “digital hub”strategy to secure and guarantee Apple steadily high profits as well as to gain share of the promising digital music and video market. In July 2002, Steve Jobs announcedthat the free iTools service would be rolled into a new subscription-based "dotMac"service.

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5. Internal Environment

5.1 Steve and the Top Management Team

5.2 Corporate Structure and Culture

5.3 Corporate Resources

5.3.1 Marketing

5.3.2 Finance

5.3.3 Research and Development

5.3.4 Operation and Logistic

5.3.5 Human Resources

5.3.6 Information System

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6. External Environment

6.1 The PC market

6.2 Competitor Policy

6.3 External software and Peripheral

6.4 Economy

6.5 Rules and Regulations

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7. Steve Jobs Leaderships

7.1 Steve Jobs Business Strategy

7.1.1 Business level Strategy

7.1.2 Global Strategy

7.1.3 Strategy Implementation

7.2 Implementation and Control

7,3 Market Share

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ReferencesWebpage Apple Inc, from

http://en.wikipedia.org/wiki/Apple_Inc.

Book Apple Computer Inc Strategy Audit 2004, by Dublin Institute of Technology

Book Inside Steve’s Brain, by Leander Kahney, Penguin Books Ltd

Webpage Apple ranking in Fortune 500, from

http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/670.html

Webpage About Apple Computer Inc., from

http://jobsearchtech.about.com/od/companyprofiles/p/AppleComputer.htm

Presentation Slides

Apple Inc. Byte Into an Apple, by Huzefa

Webpage Apple 1, from

http://applemuseum.bott.org/sections/computers/a1.html

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http://en.wikipedia.org/wiki/Apple_Inc






http://en.wikipedia.org/wiki/Apple_Inc









Appendix

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Documents

Apple and Jobs