Institute name: Team Members:

Lala Lajpat Rai Institute of Management 1. Jasmit Chadha Div.A Roll no. 31

2. Namrata Bachhere Div.A Roll no. 13 3. Ishita Jain Email address: jasmitsc@gmail.com namratabachher@gmail.com ishitajain20@ymail.com Contact No.: 98332430079 9833792988 9920035163 Div.A Roll no. 59

Abstract: The case study examines in detail the leadership and entrepreneurial skills of Steve Jobs, CEO of Apple Computers (a leading Information Technology company) and Pixar (a leading US animation studio). Steve's role in shaping the computer industry through Apple's revolutionary products and a few 'unconventional' business practices has been explored in detail. The case also discusses the aspects of Steve's personality that were appreciated by many businessmen and industry leaders. The ups and downs in Steve's career graph and the way in which he overcame the obstacles are discussed in detail. Steve's departure from Apple and his comeback have been explored in depth. Issue: Examine the advantages and disadvantages of adopting a 'pace setting leadership style' and an 'authoritative leadership style' in shaping a company and achieving success.

Contents: A Charismatic Leader The Early Days Steve - The Entrepreneur From Apple to Macintosh Steve - The Leader Getting thrown out of Apple Steve's 'Next' Step Resurrecting Apple Analysis Page No. 1 3 4 5 6 7 8 10 11

A Charismatic Leader In September 1997, Steve Jobs (Steve) was appointed the 'interim CEO' of leading information technology (IT) company, Apple Computers (Apple), by the Apple board. Considering the fact that the company's board itself had ousted Steve in a coup in 1983, this development was watched with interest by media and industry observers. Steve's comeback was being seen as Apple's desperate attempt to survive one of its worst phases: losses for 1997 amounted to $ 1.6 billion (refer Exhibit I for financial statistics). The company reportedly needed a charismatic leader who could steer it back to profitability and revive its fortunes. Those who had followed Steve's career graph over the decades were not too surprised at these developments. Known as the 'wonderkid' of the Silicon Valley, Steve was known for pulling off seemingly impossible feats. He was one of the few entrepreneurs who were reported to be 'as famous as a 1970s rock star'. All through the late-1970's, Apple was always in the news. During that period, the Wall Street Journal focused on Steve/Apple and did not cover entrepreneurial ventures like Intel even though its cofounder, Bob Noyce, was the inventor of the silicon chip, which was at that time a revolutionary product. Steve gave the world its first personal computer (PC), 'Apple' and reinvented the PC years later by creating the 'Macintosh'. He made a successful business out of creating PCs that were not only user friendly but were also aesthetically pleasing, unlike the 'dull' models available those days. Steve's research on the Macintosh resulted in the creation of the windows interface and the mouse technology, which went on to become standards in the software industry.

Steve Jobs - The Silicon Valley Pioneer

Steve also established successful entrepreneurial ventures like 'Pixar Animation Studio' and 'Next'. Pixar, the creator of award winning films 'Tiny Toy' and 'Toy Story', was known as the number one animation studio in the US (Refer Exhibit II). The operating system that Steve created at Next was acclaimed as a revolutionary development by the software industry. Not surprisingly, Steve earned many awards for the services he rendered to the computer hardware and software industry. He received the National Medal for Technology in 1985 and The Jefferson Award for Public Service in 1987. He was named the Entrepreneur of the Decade in 1989 by Inc magazine. He was also placed 39th on the Advertising Age 'Top 100 Advertising People' list. In 2000, the College of Journalism and Communications honored him with the 'Millennium Award' in recognition of his 'singular professional leadership, vision and creative achievement.' Steve was a celebrated leader for thousands of people who used Apple products. The story of how Steve built the Apple empire, how and why he was thrown out of it, how he created a few more successful businesses and the reasons behind his return to Apple is essentially the story of an entrepreneur and as a business leade

The Early Days Born on February 24, 1955, Steve was the adopted son of Paul and Clara Jobs (based in Mountain View, California, US). As a child, Steve was a bundle of curiosity. A machinist by trade, Paul taught Steve the basics of electronics. This laid the foundation of Steve's deep affinity for the subject. In late 1950's Steve met Larry Lang who had recently moved into the neighborhood. Larry Lang was an engineer working with Hewlett Packard and also a ham radio operator. Steve learned a lot about electronics and other things from his new friend. By working with heath kits Steve learnt how electronic gadgets were built

Steve - The Entrepreneur Despite the lack of resources, Steve and Wozniak designed the first computer and made its prototype in Steve's garage. Upon completion, Steve showed the system to a local electronics equipment retailer. Impressed by the design, he ordered 25 systems. Steve's friend, a retired CEO from Intel, helped him develop marketing strategies for selling their new product. Enthused by the success of their invention, Steve and Wozniak set up a company in 1975 to produce and sell small computers. To get the required capital, they sold some of their most valuable possessions: Wozniak sold his HP calculator and Steve sold his Volkswagen van. Together they raised $ 1300

From Apple to Macintosh Apple III's second innings proved to be very fruitful; the product became very popular with computer professionals. The company grew at a very healthy rate for the next couple of years. Apple's sales amounted to $ 583,000,000 in 1982, a 74% increase from 1981. Also, the company's net earnings stood at $ 1.06 per share in 1982, which was up 55% from the previous year. Steve - The Leader Steve was regarded as a source of motivation and inspiration by his employees. He described the Macintosh development team as 'souls who were well grounded in the philosophical traditions of the last 100 years and the sociological traditions of the 1960s.' Steve emphasized constancy of aim and effort. As a result, the Macintosh team pursued their dream through grueling hours of work and against formidable odds. A reporter who interviewed the Macintosh team once said, "The machine's development was traumatic, joyful, grueling, lunatic, rewarding and ultimately the major event in the lives of almost everyone involved Steve was reportedly an enigma to many at his office as well as people in business circles. He was very sweet and seductive when wooing prospective employees or when finalizing a deal with business partners. He would praise and inspire his employees in many creative and unimaginable ways.

Getting thrown out of Apple

When Sculley came to know about Steve's plans, he himself initiated measures to oust Steve from the company. He argued that Steve was hurting the company's image and persuaded the Apple board to throw him out of power. Sculley concluded that, "Apple could run a lot better with Steve out of operations." He added that Steve's intense involvement with Macintosh was having a demoralizing effect on other divisions of the company. In May 1985, the board dismissed Steve from the post of Vice-President as well as the post of the head Macintosh division. In a meeting with security analysts in July 1985, Sculley announced, "Steve had no role in the operations Steve's 'Next' Step In 1985, Steve formed a company named NeXT (Next)13 and planned to come out with the next generation of PCs that would be superior to Apple computers. The very next year, Steve also bought Lucasfilm, a movie studio, for $ 10 million and incorporated Pixar Animation Studios (Refer Exhibit II). Steve wanted to release Next's first computer in spring 1987, but could not meet the deadline Resurrecting Apple In late 1996, Apple's CEO Gil Amelio (Gil) proposed to buy Next and asked Steve to sign a contract to work at Apple for a certain period of time, which Steve did not agree to. At a board meeting, Steve proclaimed that he could not sign the contract because 'he did not want to disappoint anybody at Next'. By rejecting the deal, he proved that Gil wanted the deal more than Steve did. Thanks to his brilliant negotiating skills, Steve was finally appointed 'informal advisor' at Apple, with no contractual commitments. Steve was reportedly an enigma to many at his office as well as people in business circles Analysis

The purpose of this study was to explore the leadership approach of Steve Jobs. Upon considering the influence and success that Steve Jobs has enjoyed at Apple Inc. and in other business ventures, it is clear that a study of his leadership can provide valuable lessons for current and future leaders. The study set out to answer the question, What is the leadership approach of Steve Jobs? Based on this question, purpose, and exploratory nature of the study, an inductive research approach was taken. A case study strategy was employed to perform a narrative analysis of the data. The study used articles published in major magazines and newspapers to gather narrative data on the leadership approach of Steve Jobs. Included in this data was also a transcript of a speech delivered by Steve Jobs at a Stanford University graduation. Through the analysis of the narrative data, three themes emerged that link back to leadership theory and concepts introduced by Collins (2001) in Good to Great. These themes were level 5 leadership, hedgehog concept, and transformational leadership. These three themes incorporate concepts such as deep passion, unwavering resolve and ambition for the company, influence and inspiration. The case study highlights that Steve Jobs is a transformational leader who exhibits level 5 leadership qualities and fosters the hedgehog concept. Steve Jobs is a leader who inspires and effects change. He is deeply passionate about what he does and is extremely focused. He understands what his company is best at in the world and he is able to channel the resources to fuel the economic engine of the organization. Steve Jobs displays an unwavering resolve when making decisions and a strong ambition for the company and its future success. The objective of the study was to draw out lessons for current and future leaders from the analysis of Steve Jobs leadership approach. The most clear lessons that leaders can learn from Steve Jobs is his deep passion for his work, his extreme focus and unwavering resolve in his decision making.

As one observes Steve Jobs leadership approach, it is easy to see his passion for the work of his company. He admits, himself, in a speech to a group of graduating students from Stanford University that he found what he loves to do early in life (Jobs, 2005). He continues to capitalize on this passion even to this day. Steve Jobs is also very focused in what he does. It was evident during his return to Apple Inc. in 1997. One of the first things that he accomplished was to streamline the product line of Apple Inc. (Linzmayer, 2004). He stripped away things that drained the attention and resources of the organization but did not deliver significant impact. This focus continues to be evident in the design of Apple products. Apple Inc. is known for producing products that are simple, yet elegant in their design and function. Further, Steve Jobs is known for his ability to insist on what he believes is right and stand by his decisions. This was evident during the release of iPod music player. The product was ridiculed and was not expected to succeed (The Economist, 2007). However, Steve Jobs insisted on its launch and continued production. As a result of this unwavering resolve, the iPod today is the most dominant digital music player in the world. The qualities described above, passion, focus and resolve when combined together give Steve Jobs the influence that he demonstrates. During his business career, which began in 1976 with the formation of Apple Inc., Steve Jobs has influenced several industries. His influence has been felt in the computer, Hollywood, music, retail and mobile phone industries (Schlender, 2007).

Leaders who can learn from the qualities of Steve Jobs, namely passion, focus and resolve, will begin to develop a similar influence in their companies and broader spheres. Influence does not seem to stem from a

set of management rules and techniques. However, leaders who are passionate about their work, who develop an ability to focus on things that matter most, and exercise unwavering resolve in their decisions have a greater opportunity to influence those around them and effect change in their followers, their organization and even in themselves. The study of leadership is an ongoing process. This study explored some aspects of the leadership approach of Steve Jobs. It used an inductive approach to research and conducted a narrative analysis of secondary data published in major magazines and newspapers. As a result, the study confirmed some assumptions and made some discoveries about Steve Jobs leadership approach. In particular, Steve Jobs can be regarded as a transformational leader. He also manifests some of the characteristics of a level 5 leader. And finally, he seems to foster the hedgehog concept as he leads Apple Inc.