The Story of Apple: From Founding to Mobile Consumer Electronics Era

1. Summary of Apple's history

1. Please summarize the story of Apple

The founders build a company 1976-1984: 

Apple Computers was founded by Steve Jobs and Steve Wozniak in a California garage on April 1, 1976. The Apple II started the personal computer boom and the early success of Apple was attributed mainly to marketing and technological innovation. Apple grew quickly, staying ahead of competitors by contributing key products that stimulated the development of software for the computer. 

Professional managers fail to extend the company 1985-1997:

Founders of Apple, Jobs and Wozniak, was departed in 1985 during a slumping market and fired by the company’s board of directors due to ego clashes and the different opinions he shared with the CEO, John Sculley. Jobs resigned and sold all but one of his Apple shares. In the early 1990s, Apple sold more personal computers than any other company in the industry. However, the period from 1993-1995 was a time of considerable change in the management of Apple. The industry changed rapidly. Apple lost its competitive advantage in the market and sales declined.  After the shares of Apple plummeted down, Jobs was requested by the board of Apple to rejoin as the CEO in 1997. 

Jobs leads Apple “Back to the future” 1998-2001

As CEO of Apple, Jobs terminated several projects like iBook and the AirPort products series. Apple reopened its own retail stores and introduced new innovations like iPod and iTunes music store.

A corporate renaissance 2002-2006

Apple expanded its business internationally in last decade, and achieved greatest growth in both business and profit wise. By November 2006, the company had 149 stores in the United States, 4 stores in Canada, 7 stores in the United Kingdom, and 7 stores in Japan. In 2006, Jobs announced that Apple would sell an Intel-based Macintosh.

Mobile consumer electronics era 2007-present

Apple Computer Inc. changed its name to Apple Inc in 1997due to the fact that company has expanded its product line and computers were no more the singular focus for the company. Apple introduced new innovations to the market like iPhone, App Store, iPad and Apple TV. 

2. Please describe Steve Job’s entrepreneurial characteristics and please provide examples.

Entrepreneurial leaders drive themselves and others persistently, yet their personalities also inspire others. In general an entrepreneur can be defined as a person who founds and operates an innovative business. This entrepreneurial leadership style often includes the following behaviors: strong achievement drive and sensible risk taking; enthusiasm and creativity; tendency to act quickly; constant hurry combined with persistence; dislike of bureaucracy and hierarchy; preference for dealing with external customers; and eye on the future. (Dubrin, 2012).    

2. Steve Jobs' entrepreneurial characteristics

Steve Jobs was an American entrepreneur, marketer and inventor and one of the great examples of charismatic leaders. Through Apple he is widely recognized as a charismatic and design-driven inventor of the personal computer revolution and for his influential career in the computer and consumer electronics fields, transforming one industry after another, from computers and smart-phones to music and movies. He used his experience, such as growing up in the San Francisco area in the 60s and his world travel, to shape the way he designed the products that made Apple synonymous with success. Jobs had great passion for product excellence. He insisted on elegant design and simplicity. Unlike many other CEOs he became extremely engrossed in the details, especially when it came to the product and how it was marketed. Jobs had a demanding and aggressive personality and he pushed people to accomplish more than they dreamed possible.

After a power struggle with the board of directors in 1985, Jobs left Apple and incorporated software and hardware enterprise named as Next Inc. After he purchased Pixar Animation from Lucasfilm and served as executive of Pixar animation studios. Popular animation films were produced by Pixar Studios like Toy Story and A Bug’s Life. Thus, in 2006 Pixar's Studio was merged with Walt Disney. That made him shareholder of Disney's and became the member of board of directors of Walt Disney Company. Jobs ultimately sold Next Inc. to Apple in 1996 and became CEO of Apple in 1997.

When Jobs returned back to Apple, he brought Apple from near bankruptcy to profitability by cutting dozens of projects and products. Jobs’ new direction for the company was criticized on Wall Street, but soon Apple’s successful turnaround impressed them. Jobs received a number of honors and public recognition for his influence in the technology and music industries such as the National Medal of Technology. Jobs was named the CEO of the decade by Fortune Magazine.

Steve Jobs had had a strong entrepreneurial character and performance. Jobs was very enthusiastic towards his job and he always sought to position his businesses and products at the forefront of the information technology industry, by foreseeing and setting innovation and style trends.  Jobs had a real “eye on the future”. Jobs strong achievement drive and risk taking leads Apple to success. Jobs strategically managed the company through a period of new product introduction, rapidly changing technology, and intense competition. His vision for Apple was to be an organization that brought the change instead of adaptation. Jobs always had new visions and the right charisma to bring that vision to life. He bought revolutions in computers, music players, smartphones and many others related to the digital life. Jobs was the kind of leader who believed that innovating and successfully marketing new products which meets the needs of people is the best way to stay ahead of competition.

3. Please describe what, how and when Apple did the right thing and what, how, and when Apple did the thing right. (i.e. provide a discussion of Apple’s strategic strategies and operational/competitive strategies).

Operative and strategic work are equally important for sustain success of the company. Doing the right thing refers to the effective leadership and strategic work to ensure possible growth in the far future. Doing the thing right refers to the management efficiency and operative work to make the greatest possible profit. 

4. What should Tim Cook extrapolate, and why?

5. Please address John Tarpey’s concerns.

John Tarpey, senior financial analyst of Apple, has some serious concerns about the financial growth of company. Tarpey implemented a comprehensive analysis of the 2010 financial performance and strategic strategies of Apple Inc. He was concerned about how Apple’s performance continued to be outstanding, while the world and US economy was falt to negative. He soughed answers to the question that if Apple could sustain this high level of performance and major innovation. Tarpey noted that there were nine positive increases versus three negative ones and that Apple need to take some solid steps to outweigh the negative effects of 2009 world-wide crisis. He was also concerned about the important supply as well as pricing risks of company while achieving an outstanding economical growth in even negative and flat fiscal conditions. 

After analyzing Apple’s most recent balance sheets and income statements and integrating that information with his knowledge of the company, Tarpey was unsure if he should tell his customers to buy, hold, or sell Apple’s common stock. Apple’s stock price had done very well over the past few years and the company was still the leader of the industry and a solid performer. However, Tarpey had a number of concerns about the company’s future. For example, how dependent was Apple on Steve Jobs and how long would it take for Apple’s competitors to catch up with the company’s lead in product development and perhaps even surpass Apple?

It is essential that Apple continues to grow to remain a strong competitor in the industry. Tarpey should advice shareholders to hold their current stocks. If company continues to grow, shareholders would increase in value.