Apple and Jobs How Has Organization Changed

Abstract:

BMOM5203 Organizational and Business Management

Prepared by: Liaw Kim Juan CGS00658301

Apple and Jobs How Has Organization Change

1. Table of Contents
1. Table of Contents.......................................................................................2 2. Acknowledgement .....................................................................................3 3. Introduction................................................................................................4 3.1 Steve Job and his background...............................................................4 3.2 Apple Inc...............................................................................................4 4. Steve Jobs and Apple Inc............................................................................6 4.1 Period 1975 1981...............................................................................6 4.2 Period 1981 1985...............................................................................7 4.3 Period 1986 1992..............................................................................8 4.4 Period 1993 1997...............................................................................8 4.4 Period 1998 2004.............................................................................10 5. Internal Environment................................................................................11 5.1 Steve and the Top Management Team................................................11 5.2 Corporate Structure and Culture.........................................................11 5.3 Corporate Resources...........................................................................11 6. External Environment...............................................................................12 6.1 The PC market....................................................................................12 6.2 Competitor Policy................................................................................12 6.3 External software and Peripheral........................................................12 6.4 Economy.............................................................................................12 6.5 Rules and Regulations.........................................................................12 7. Steve Jobs Leaderships.............................................................................13 7.1 Steve Jobs Business Strategy..............................................................13 7.2 Implementation and Control................................................................13 7,3 Market Share.......................................................................................13 ...................................................................................................................13 References...................................................................................................14 Appendix......................................................................................................15

Page 2 of 15

Apple and Jobs How Has Organization Change

2. Acknowledgement

Page 3 of 15

Apple and Jobs How Has Organization Change

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 founders Steve 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, from consumer 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 operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari web browser; and iOS, a mobile operating system. As of July 2011, Apple has 357 retail stores in ten countries, and an online store. It has been the largest publicly traded company in the world by market capitalization, swapping spots with ExxonMobil, and the largest technology company in the world by revenue and profit. As of September 24, 2011, the company had 60,400 permanent full-time employees and 2,900 temporary full-time employees worldwide; its worldwide annual 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.

Page 4 of 15

Apple and Jobs How Has Organization Change

3.2.2 Vision and Mission Vision: Man is the creator of change in this world. As such he should be above systems and structures, 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 its innovative hardware, software and internet offerings.

Page 5 of 15

Apple and Jobs How Has Organization Change

4. Steve Jobs and Apple Inc

Figure 1: Apple products Timeline 4.1 Period 1975 1981

Figure 2: Apple 1, first own built product of Apple Apple Computer in first headquarter was in Steves parent garage, when Steve Jobs and Steve Wozniak, along with Ronald G. built the first Apple prototype there. 6 months 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 ten years. 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 hours to build. The Apple I doesnt attract much attention from the market.

Page 6 of 15

Apple and Jobs How Has Organization Change

Ronald Wayne left the company shortly after Apple delivered their first order. The reason behind this was because Jobs planned to go highly in debt to build large quantities of the Apple I. Having lost a lot of money in other investments with new computer 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 local computer 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 personal computer revolution. By 1980, Apple had several thousand employees, with a market share of 50% and beginning to sell computers abroad. Steve Jobs belief one person-one computer. He starts focus more on creating new and different product. At the end of 1980, Apple was 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 (Wintel model) model. Starts 1981, competition become tougher. Several competitors such as Dell, Compaq and Gateway have entered to PC market. This competitor is more to support IBM model. This decision was tough to be made. Apple starts losing its market share. Within 4 years, Apple declines its market share up to 70%. Jobs tried to differentiate Apple by following a strict non-licensing, patent-regulated policy. Very soon Apple trapped into a situation where it starts losing its competitive in PC 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 - IBMs 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 and became president and CEO of Apple. Jobs believed that Apple should focus on technology, Sculley preferred to go along customer needs.

Page 7 of 15

Apple and Jobs How Has Organization Change

In 1985, the board took a vote. Sculley was chosen to replace Jobs position. Jobs resign 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, Apple business was hit badly. 1990, market is saturated with Windows operated PC. People not only earning money in provide the hardware, but also through licensing the software. It becomes clear that Apple during that period can not provide both software and hardware. 1991, Apple launched the first generation of PowerBook, which has an instant success. Product and marketing strategy was adjusted. Apple tried to include third party hardware and software access to MAC product. But since early stage Apple invest less time and money in the research, it become too costly to develop Mac OS. This make 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 SE and the Macintosh II. These products attracted larger software houses that developed sophisticated applications for large business users. Nearly half of Apples sales and most of its profits came from selling PCs and related products to big corporations.

4.4 Period 1993 1997 In June 1993, Sculley was reviewed his position of CEO and replaced by Michael
Spindler. Spindler was the wrong man for the job. A new Mac operating system called Copland was 2 years behind schedule. In 1994, Apple announced the PowerMac family, the first Macs to be based on the PowerPC chip and secretly began talks to sell the company with Sun Microsystems, IBM, and Hewlett-Packard.

Page 8 of 15

Apple and Jobs How Has Organization Change

In winter 1995, Spindler misjudged the market. He pushed low-cost PCs over midrange 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 strong effort to bring Apple back to profitability, Amelios efforts proved to be largely unsuccessful.

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 took over the position as a interim CEO and began to change the structure of Apple and also announce an alliance with Microsoft. In exchange for $150 million in Apple stock, Microsoft and Apple would have a 5-year patent cross-license.

Page 9 of 15

Apple and Jobs How Has Organization Change

In addition, as clone production from companies such as Power Computing or UMAX had failed to effectively expand the Mac OS market, instead taking customers away from Apple in the high end market, Jobs ended this licensing. Other changes in the corporate strategy comprised direct-computer selling via the web and new products (Apple Online-Store, PowerMac G3 Computer) such as the iMac were published with a focus on innovative design. Finally, Apple reached profitability for 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 become one of the best selling computer in US. Jobs formulated Apples internet strategy as a suite of Mac-only internet-based applications called iTools. Several digital lifestyle product such as iDVD, iTune and iPod. This innovative product line was a consistent part of Apples 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 announced that the free iTools service would be rolled into a new subscription-based "dotMac" service.

Page 10 of 15

Apple and Jobs How Has Organization Change

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

Page 11 of 15

Apple and Jobs How Has Organization Change

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

Page 12 of 15

Apple and Jobs How Has Organization Change

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

Page 13 of 15

Apple and Jobs How Has Organization Change

References
Webpage Book Book Webpage Apple Inc, from http://en.wikipedia.org/wiki/Apple_Inc. Apple Computer Inc Strategy Audit 2004, by Dublin Institute of Technology Inside Steves Brain, by Leander Kahney, Penguin Books Ltd Apple ranking in Fortune 500, from http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/6 70.html Webpage About Apple Computer Inc., from http://jobsearchtech.about.com/od/companyprofiles/p/AppleComputer.ht m Presentatio n Slides Webpage Apple Inc. Byte Into an Apple, by Huzefa Apple 1, from http://applemuseum.bott.org/sections/computers/a1.html

Page 14 of 15

Apple and Jobs How Has Organization Change

Appendix

Page 15 of 15