Apple: From Jobs to Cook

Introduction to Apple
Steven Wozniak and Steven Jobs had been best of friends, Electronics was common to

both, both crazy about electronics. Both ended up as dropouts but kept in touch. Steven Wozniak initially joined Hewlett & Packard and Jobs joined Atari, both in Silicon Valley.
Wozniak made a design which later on became to be known as Apple I. Steve Job, a

Visionary proposed to sell the machine so was born Apple Computers on April 1 1976.
Initially they didnt take it seriously n Apple wasnt a success till Apple II was launched

in 1977. Apple II was an impressive machine and sales started to gain momentum and multiplied several times.
With the introduction of Apple Disk II, the most inexpensive and easy to use Floppy

Driver ever (At that time) Sales further increased.

In 1980 Apple was extended to thousand employees launched Apple III and started

selling computers abroad.

In 1981 markets became saturated and aged middle level managers and new investors

made Apple a Real Company, much to the dislike of its intial Employees. Further Wozniak got injured in a plane crash and returned just briefly. Steve Jobs became the CEO of Apple.
Jobs was removed from his dream project LISA by Mike Markkula, the then director of

Apple, a major stockholder. Jobs at that time had only 11 % share in Apple. He started to work for Macintosh started as a $500 PC firm then. In 1983 Jobs got Sculley, then President of Pepsi-Cola to make him CEO of Apple but the move cost him his job. In 1987 MAC II was launched and was a big Success but there were dangers ahead from the side of Microsoft. In 1993 Splinder was made CEO of Apple after directors lost trust in Sculley.
In 1995-96 Apple posted a $68 million loss in a quarter. In January 1996, Spindler was

asked to resign as CEO and was replaced by Gil Amelio, the former president of National Semiconductor.

 In late december 1996, Apple made an industry-shattering announcement that it would be acquiring NeXT, and that Steven Jobs would be returning to the fold. The merger was brought about in order to acquire NeXTstep, which was to become the basis for Apple's next-generation OS, Rhapsody, which was slated for a 1998 release.
Jobs was given an expanded role, Some called him Interim CEO after Amelio was

forced to quit. Jobs made significant changes including an agreement with Microsoft Apples biggest rival in exchange for $150 million in Apple Stock, Microsoft and Apple would have a 5-year patent cross-license and, more importantly, a final settlement in the ongoing GUI argument. Microsoft agreed to pay an unreleased sum of additional funds to quiet the allegations that it had stolen Apple's intellectual property in designing its Windows OS. Microsoft also announced that Office '98, its popular office package, would be available for the Mac by years end. He also tackled the Clones problem. Apple launched Ipod that changed the fortunes for the company that was posting losses one after the other on October 23 2001.
The ipod sales begin to gain momentum and by October 2003 the sales were

skyrocketing.It launched iTunes to support the ipod. Apple was now ready to rock the digital music player world by launching ipod mini. In the first year alone, the iTunes Music Store sold more than 70 million songs, and by July this number had increased to more than 100 million. The iTunes Music Store had a 70% market share among all legal online music download services. iPods had moved from expensive toys to must-have Christmas presents, and Apple found itself in the position of having a monopoly for the first time in several decades. In 2007 then Apple kicked off the new era of touch screen phones by launching iPhone.
In 2010 Jobs launched iPad Jobs unveils the iPad tablet computer, a huge hit after it goes

on sale in April. Apple passes Microsoft in May as the largest US technology company in terms of market value.
On January 18 2011 Apple reports a record quarterly net profit of $6 billion on revenue of $26.74 billion.

On june 6 2011 Jobs launched Apples Online Storage iCloud. On August 24 2011 Steve Jobs resigned as the CEO of Apple and Tim Cook then COO of Apple was made the new CEO of the Apple Board.

 Apple is now largest by the market cap and profits then Amazon, Google and Microsoft. It has a market Cap of $630.95 Billion.

("History of Apple" Apple History. 26/8/2012. Apple. 1/9/2012 <http://applehistory.com/>.)

Economy and the profit of the Company at the time of Jobs

On 17th July 2011 Steve jobs announced that he would take another medical leave

on account of his health and chief operating officer Tim Cook would be incharge of the operations at Apple.
Apples stock on 15th july 2011 was at all time high on $364.92 . Apples Market

capitalization was $337.46 billion only 2nd to Exon Mobile in top five U.S. publicly traded company according to the market capital.

Economy and profit of the Company after Cook took the charge of Apple
On 17th July Cook took the charge of Apple from ailing Steve Jobs who later

succumbed to illness. Apple today is the largest firm traded in Nasdaq ahead of Exon Mobile by $100 billion. The higher market Capital of Apple is credited to its higher profit. Apple has grown its profit by $31 billion in the three quarters of Cooks Charge. It has shipped 89 million iPhones and 38 million iPads all exceeding wallStreets expectations.
"By any quantitative measure, so far his performance is phenomenal,"

says Bill Shope, a Goldman Sachs research analyst about Tim Cook. (Panzarrino, Mathew. "Apple now bigger in Market Cap than Miicrosoft, Google and Amazon Combined" The Next Web. 29/8/2012. Apple. 1/9/2012 <http://thenextweb.com/shareables/2012/08/29/apple-now-bigger-market-cap-microsoftgoogle-amazon-facebook-combined/>.) (yglesias, Mathew. "Apple's Market Cap Is High Because Its Profits Are High" Slate. 29/8/2012. Apple. 1/9/2012 <http://www.slate.com/blogs/moneybox/2012/08/29/apple_s_market_cap_is_high_because_i ts_profits_are_high.html>)

The process of Change

Lewin developed a three step sequential model of the change process to change their tendency to return to their habitual patterns of behavior.

(1) Unfreezing :- Involves making the need for change so obvious that the individual,

group, or

organization can readily see and accept it.

In the case of Apple it was quite necessary as Steve Jobs was ailing and it was quite evident that he was not going to last long so to set this in process or say for Unfreezing he himself quit the firm on 17th July 2011 so that was necessary to get a new CEO to run the company i.e. change was mandatory.

(2) Changing:- The new CEO was selected as Tim Cook who was formerly the Chief

Operating Officer for Apple. He was the one acting as the Change Agent. He was the one leading the change in Apple. He fostered the new ideas be it the payment of Dividents or changing the working condition of the labourers in the companys supplier in China. Cook fostered the notion that Apple was considerate about the labourers and also investors. Cook created an environment where he was loved and respected as a loving and free minded boss. He made an honest attempt to make the shareholders and investors feel good. His relations with WallStreet people and politicos is also considerable. Cook focuses on business aspect where as Jobs was more concerned about technology and product design. Cook frequently hs lunch with the employees in the mess where as Steve Jobs always had lunch with his design Chief Jonathan Ive. Clearly Jobs had design and product oriented view while Cook has an overall view. Cook in his first three Quarters as CEO is quite commendable.

(3) Refreezing:-

The team at Apple has now slowly and gradually moved to Cooks view. To make his views a reality Cook initially made it clear that he had no religious belief regarding the dividends and now Apple pays quarterly dividends of $2.65 to its shareholders and it also buyed back its $10 billion worth of Shares. To Check the labour conditions Cook himself visited Companys Suppliers Factory at Foxconn and also got him photographed to emphasize his views on Laborers Condition. Apple also joined the Fair Labor Association an industry-financed third-party monitoring group that has the ability to visit factories and report its findings independently. Nevertheless, Cook's Apple appears to be doubling down on its manufacturing in China. Late last year Apple disclosed for the first time the dollar value of its assets there: $2.6 billion. The Wall Street also has too much positive reviews about Tim Cook.

"The numbers speak for themselves," says Katy Huberty, Morgan Stanley's Apple analyst. "By any quantitative measure, so far his performance is phenomenal," says Bill Shope, a Goldman Sachs research analyst.

(Lashinsky, Adam. "How Tim Cook is changing Apple" CNN Money. 24/5/2012. Apple. 1/9/2012 <http://tech.fortune.cnn.com/2012/05/24/apple-tim-cook-ceo/>.)

Conclusion
The Change was inevitable as All good things no matter how good they are, have to end one day or other. Change is the law of Nature so is the case with Companies and so was the Case with

Apple. Steve Jobs the Cofounder of Apple and the man who gained the momentum for Apple of which it is still reaping benefits was probably the best Enterprenuer of his era but he had too like all mortals cannot last forever and the right time he handed over the reins to Tim Cook. Cook unlike his predecessor hasnt brought great product revolutions. All the new products of Apple have just been modifications of the earlier Success. But he has his own way of leading the company that has become a leading brand in electronics around the world and is all set to launch Apple Televisions. He has a different approach to the company. As a former Apple employee puts it I've been told that any meeting of significance is now always populated by project management and global-supply management. When I was there, engineering decided what we wanted, and it was the job of product management and supply management to go get it. It shows a shift in priority." But overall Tim Cook has led the company to great benefits and companys profit and Market capital has raised tremendously and is now the top trading company in U.S in terms of Market Capital. And as far as the product Design and innovation is concerned it is necessary to give Tim Cook some time as it is just three quarters as CEO.

Bibliography

(1) Lashinsky, Adam. "How Tim Cook is changing Apple" CNN Money. 24/5/2012.

Apple. 1/9/2012 <http://tech.fortune.cnn.com/2012/05/24/apple-tim-cook-ceo/>.

(2) yglesias, Mathew. "Apple's Market Cap Is High Because Its Profits Are

High" Slate. 29/8/2012. Apple. 1/9/2012 <http://www.slate.com/blogs/moneybox/2012/08/29/apple_s_market_cap_is_high_be cause_its_profits_are_high.html>

(3) Panzarrino, Mathew. "Apple now bigger in Market Cap than Miicrosoft, Google

and Amazon Combined" The Next Web. 29/8/2012. Apple. 1/9/2012 <http://thenextweb.com/shareables/2012/08/29/apple-now-bigger-market-capmicrosoft-google-amazon-facebook-combined/>.
(4) "History of Apple" Apple History. 26/8/2012. Apple. 1/9/2012 <http://apple-

history.com/>.