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The company enjoyed much success during the past aced with its stock price hitting a high Of $200 in 2007. Later, the stock retreated to around $90 causing a massive decline in shareholder wealth and Apple CEO Steve Jobs was faced with the challenge of resurrecting his once dominant company in light of weak economic conditions and sub-par personal health. The case chronicles the life of Steve Jobs, the rise of Apple, Inc. And his personal challenges as CEO of the company to continue to provide innovative products to a marketplace of technology avid consumers.

The case also makes valuable contributions related to the historical aground of one of the most successful companies in the world and consistently voted the most innovative company. Furthermore, the case examines the psychology of an entrepreneur, Steve Jobs, and takes the student through the entrepreneurial process of starting Apple along with Steve Woozier. A unique aspect of this case is that Apple products are so ubiquitous that most students will have experienced the technological innovativeness of the company through personal ownership of an pod, phone, or Apple computer product (MAC or laptop).

This case does not necessarily follow a chronological sequence, and there could be repetition of acts. Attributes that contributed to the success of Steve Jobs Job’s introduction to the world of electronics came during High School with the discovery of electronic hobby kits. He realized that the electric world was not as complicated as it first seemed and that electronics was an interesting field. It quickly became his passion. He began attending lectures conducted by the Hewlett Packard Company (HP) and audited classes at Reed College.

This further fueled his appetite for the field and eventually he found summer employment at HP. Jobs (and Woozier) attended meetings of the Homebred Computer Club. The club consisted of other electronics enthusiasts who presented news of new innovations in the electronics world and discussed updates of the progressions made by members in creating their own computers. Early on, he found school to be so easy that he was able to skip 5th grade and move directly into Middle School. Later, while working at his job at Atari, some of his fellow workers viewed him as Sourced and edited by [email protected] Mom Page 1 arrogant and overly confident. Although, this was not necessarily an attribute conducive to a collegial work environment, it did provide Jobs the opportunity o work the night shift where it was easier for him to befriend Steve Woozier who assisted Jobs with the technical aspects of his work. Others described Jobs as “referring to most people as bozos”. Although this was a condescending way of viewing his future customers, it did serve to ensure that Apple products were developed in a user-friendly and understandable manner.

Atari invited Jobs to develop the circuitry that would transform the popular game, Pong into something more innovative (Breakout), however he was given only four days to complete the task. Realizing that this project was ended his capabilities, he contacted his friend, Steve Woozier who helped him accomplish the task. This event, turned out to be the motivation for starting the Apple Computer Company. Jobs recognized an opportunity to pitch a working model (developed by Woozier) of a computer that could be viewed on a TV (as opposed to a costly monitor) to HP and Atari.

Although neither company chose to invest in the production and marketing, Jobs persuaded Woozier that this creation was good enough that they should try to produce and market the computer on their own. They raised $1 , 750 to begin this venture, which turned out to be he start of the Apple Computer Company (Young and Simon, 2005). Eater, after leaving Apple in 1986, Jobs bought the majority share of a puttering computer graphics company, called Paxar, for $10 million from George Lucas. Lucas, the famed creator of the Star Wars movies, was looking to sell off some of his assets to fund his divorce.

Jobs saw a lot of opportunity in Paxar and led the company to produce animated commercials for some leading brands (Tropical, Life Savers and Listener were some of the first brands to contract Paxar to produce commercials). Later, Disney agreed to a ewe five film agreement leading to box office mega-hits such as Toy Story (l & II), A Bug’s Life, Cars, and The Incredible (Eliminate, 2004). Jobs’ vision to see the potential in technology allowed him to take full advantage of these opportunities.

Without Jobs’ vision he could not have seen the potential in the first computer that Woozier built or other companies that he was involved in running. With the introduction of such innovative products such as the pod, tunes, and phone, Jobs demonstrated the vision to understand how consumers would find communication and entertainment devices convenient, cost effective, and cutting edge. Jobs, from a very young age, had a tireless work ethic, particularly toward his passion and electrical engineering.

His work ethic was the motivation that led him to learn about the advanced technical knowledge of the inner workings of the computers that Apple has been building for decades. When he was removed from Apple in 1985, Jobs immediately founded another computer company, NeXT. In 1 996, Apple bought NeXT and asked Jobs to return to Apple as interim CEO. He became the permanent CEO in 2000 and held that position until his death. Job’s drive or perfection sometimes had a negative effect on the people he worked with.

According to Alan Deutsche (2000), Jobs was described as a “control freak”, “egomaniac”, and “fearsome Sourced and edited by [email protected] Com Page 2 tyrant”. Kenney (2008) also writes about Steve Jobs as frequently turning from a charismatic leader to an “ego and emotion destroying tyrant. ” Jobs demonstrated his willing to take a risk early on by selling his Volkswagen van for startup capital for Apple. Later, he invested capital to start new companies (like NeXT) and existing companies like Paxar. Although all of his risks were not rewarded (e. , NeXT was ultimately dissolved), he was able benefit from his investment and effort to make Paxar a success. Job is described as having great skills at persuasiveness and salesmanship and is reported to be highly charismatic. Early on, he was able to convince his friend, Steve Woozier, to start up the Apple Computer Company. Later, people in the film industry felt that the deal between Paxar and Disney was made possible because of the charisma, confidence and negotiating talents of Jobs. Paxar executive De Catcall said “It took somebody of Job’s stature to get us a parity deal with Disney” (Eliminate, 2004).

Former Paxar Marketing Director Pamela Kenning said “He had the brains, energy, and chutzpah to protect Pixie’s interest. He enabled us to negotiate as equals” (Eliminate, 2004). Jobs investment and financing of Paxar was rewarded handsomely. Through his investment he was awarded 30 million shares of Paxar worth around SSL billion. Upon leaving Apple in 1985, Jobs immediately founded a new computer company (NeXT) and later grew animation film company (Paxar). Upon his return to Apple, he aspired to make Apple a leader in the information technology industry.

Through innovation leadership, he was able to set trends n productivity, entertainment, and communication products. He attributes the sustaining qualities of his energetic and entrepreneurial leadership to being able to work at the things he loves to achieve his goals. Attributes that contributed to the success Steve Woozier Steve Wooziness passion for electronics stemmed from his father’s career as an engineer at Lockheed Martin (Woozier, 2006). Woozier formally studied electrical engineering at the University of Colorado at Boulder and De Anza College.

Upon withdrawing from college, he began building computers with a friend. To help fund his interest in building computers, Woozier designed, built, and sold (illegal) phone calling devises to students in dorms and door-to-door for $150. Woozier was enthusiastic to help his friend, Steve Jobs develop the circuitry that would transform the popular game, Pong into something more innovative (Breakout) in an accelerated timeshare of only four days. Although he was paid a share of the $700, to Woozier the real compensation was the sense of accomplishment and excitement realized by completing the task.

Looking back on this experience Woozier claims, “l would have done it for a quarter” (Eliminate, 2004). Steve Woozier Google Image downloaded by Woozier (and Jobs) attended meetings of the Homebred Computer Club. The club consisted of other electronics enthusiasts who presented news of new innovations in the electronics world and Sourced and edited by Page 3 discussed updates of the progressions made by members in creating their own computers. During one of these meetings Woozier presented an apparent working model of a computer that could be viewed on a television set, as opposed to a costly monitor.

Woozier was very proud of his work. His accomplishments created all the gratification that he desired. Jobs, on the other hand, had a vision and a plan or this innovation created by Woozier. Jobs envisioned exchanging the blue print for Wooziness computer for cash, as opposed to showing them off for bragging rights. Woozier was never motivated by the money. The idea of making money off of his passion never did not drive Woozier to create his computer nor did he envision selling it after it was complete.

Only after Jobs convinced Woozier that his creation was good enough to sell did the two decide to produce and market the computer on their own. Who is the Entrepreneur? Jobs, Woozier or both? Jobs was without a doubt a driven entrepreneur. Many of the characteristics from the first question are defining entrepreneurial traits. He has the ability to find opportunity and gather resources to take advantage of opportunities (e. G. , having Woozier develop the new Breakout circuitry for him). He is driven, works hard, and has a high need for achievement.

He is willing to take risks (first exemplified by selling his Volkswagen van for start-up capital). Jobs drew both admiration and criticism for his leadership style, with much being made of his demanding approach. Fortune magazine described him as “one of Silicon Valleys leading egomaniacs. ” During Steve Jobs’ early years with the company, he became known for his hands-on approach and interfering in tiny details. His standards with regard to product design were very high and he was highly critical; such criticism was sometimes scathing. However, he was seen to provoke strong loyalty from his colleagues.

Reality Distortion Field (RDF) was a term first used to describe Steve Jobs’ charisma in 1 981 it Was later used to describe how his keynote speeches were perceived. The term was said to depict Steve Jobs’ ability to convince those around him to believe in something using his charisma, marketing kills, self-assurance, and persistence. RDF was alleged to distort an audience’s perceptions of difficulty and scale, and as such make them believe that almost anything is possible. Such optimism by Jobs was said to contribute to loyalty being instilled in both his colleagues and Apple fans.

Woozier, on the other hand, is an inventor. He makes no claims about producing or wanting to make money off of his inventions. He does these things for fun and passion. Without Jobs vision and passion, Apple would never have existed as Woozier did not have the entrepreneurial instincts to rate a company and make money. The Steve Jobs Effect The original Apple computer, the Apple I, was designed by Steve Woozier, with Steve Jobs suggesting that it could become a marketable product. Jobs contacted a local computer store, Byte Shop, which ordered 50 of the machines, on the condition that it came fully assembled.

Jobs, in a Sourced and edited by [email protected] Com display of his enthusiasm for the product, ordered the components required to construct the Apple computer promising to pay suppliers on time with the money they would earn from the purchase order. Jobs and Woozier delivered he computers on time, paid the suppliers and had profit left over. Jobs and Woozier went on to gain the backing of A. C. Markup who lent them $250,000 to form Apple Computer on April 1st, 1976. In 1 977, Jobs and Woozier introduced the Apple II; a computer aimed at the mass market.

This became one of the first successful lines of personal computers, with the company’s sales increasing from $2 million in 1977 to $600 million in 1981 , the same year that Apple went public. By 1 983, Apple Computer was listed in the Fortune 500; the fastest a company had ever joined the list. Not all of the early innovations were quite so successful, with he Apple Ill and Lisa computers, introduced in 1980 and 1983, respectively, failing to make an impact on the commercial personal computer market. However, in 1981 Jobs and a small number of Apple engineers began to work on a new project, the Macintosh.

This was launched in January 1 984 and went on to set the benchmark for the design of contemporary computer operating systems (SO). Following the unsuccessful Apple Ill and Lisa computers, the company slumped. This led to a power struggle within the company with the board backing chief executive officer (CEO), John Scullery, and Jobs being asked to resign. Jobs subsequently sold his 6. 5 million shares in Apple. In a PBS documentary in 201 1, Jobs maintained that he hired the wrong CEO when he took on Scullery, stating that “he destroyed everything I had spent 10 years working for. Following his departure from Apple, Jobs went on to acquire the visual effects company Paxar. Furthermore, in September 1 985, Steve Jobs founded NeXT Inc. , a company that manufactured computers designed for the higher education market and, later, the business market. Sales of these computers were relatively limited; however, its innovative SO became extremely influential. In December 1 996, Apple acquired NeXT Inc. For $400 million. Apple had abandoned its Copeland SO early in 1 996 and had been looking for a new platform for it computers.

By acquiring NeXT, Apple began to ship products with the NeXT SO. This SO became the foundation for SO X, the software used in modern Macintosh computer systems. Whilst Jobs had been away from the company, Apple had begun to struggle, largely due to being unable to compete with companies that used Intel chips and Microsoft software; a trend that was beginning to dominate the marketplace. By 1 997, the company had generated losses of almost $2 billion n two years. Furthermore, the share price was at its lowest level and the company was onto its third CEO in four years -? Gill Amelia.

In July 1 997, Amelia was ousted from the company and, just eight months after Apple bought NeXT, Jobs was appointed interim CEO, becoming permanent CEO in January 2000. Soon after being appointed as interim CEO in 1997, Jobs announced that Apple would enter into a partnership with Microsoft. This involved a five-year obligation from Microsoft to publish Microsoft Office for Macintosh along with a $1 50 million investment in Apple. Furthermore, Internet Explorer was made he default browser for the Macintosh. During this announcement, Steve Jobs stated that the company had to let go of the notion that “for Apple to win, Microsoft has to lose. Page 5 Under the guidance of Jobs, the company branched out, diversified, and improved its products. Steve Jobs also cut some products, ending the Newton handheld computer, which was struggling, and reduced the number of Mac models. Furthermore, Jobs canceled licensing contracts that Apple had with third-party manufacturers so that Macintosh clones could no longer be created. One of the first innovations following Steve Jobs’ return was the velveteen and introduction of the mimic in 1998. This all-in-one Macintosh desktop computer proved successful for the company, selling approximately 1. Million mimic units in the 1 999 fiscal year. The introduction of the mimic also brought about a new focus on the aesthetics of Apple products. The Apple pod, a portable media player, was introduced to the market in 2001. Since then, the product has been updated with new models including the pod Anna (2005), video pod (2005), and the touchstones pod Touch (2008). Jobs wanted to create a digital music player that would be aesthetically leasing to the eye, and went on to directly supervise the design and implementation of the user interface.

He felt that there was a gap in the market for a product such as the pod. The company made forays into music distribution with the introduction of the tunes Music Store in 2003. This effectively revolutionized the music industry with the signing of five major record companies to Apple’s music download service. Jobs and his team encouraged the big record labels to sell recordings for $0. 99. The store was quick to become the market leader, with 1 million songs being downloaded in the first week. Furthermore, the tunes Store enticed consumers to buy pods, as songs could be downloaded to Apple music players.

Steve Jobs continued to redesign the consumer electronics industry with the introduction of the phone in 2007. The company sold 11. 6 million phones in fiscal year 2008. The phone now makes up a huge bulk of the company’s revenues, with sales of the phone and related services accounting for over 43% of net sales in fiscal year 201 1. The introduction of the pad tablet computer in 201 0 has been similarly successful. This was designed as a platform for media such as movies, books, USIA, APS, games, and the Internet. By the time the pad 2 was launched in March 2011, over 15 million pads had been sold.

The introduction of the ISO products was the most successful era for Steve Jobs and Apple. The company, which was renamed Apple Inc. In 2007, has diversified and expanded to sell a range of consumer digital products which have been seen as innovative In their field. The majority of revenues now come from ISO products. At the end of 2009, Steve Jobs was named as CEO of the decade by Fortune Magazine. His hands on approach to business and his exacting standards eve been widely discussed. Steve Job’s role in making Apple Inc. O successful Prior to Steve Jobs returning to the company in 1 997, Apple had been trading at a loss for a couple of years. In the three years following Jobs’ return, net profit was seen to increase. The brand value of Apple was also seen to increase rapidly following Steve Jobs return to the company. The net profit of Page 6 the company was fluctuating in the years running up to the return of Steve Jobs, with a loss being recorded in 1996-97. In Brand’s Top 100 Global Brands, Apple has risen from number 29 in 2006 to number 1 in 2011 under he management of Steve Jobs.

Apple: Loss recorded in 1996-97 ($M) Apple: Rise in profits in 2004-11 ($M) after Jobs returned Google Images downloaded by [email protected] Com Jobs made a huge comeback when he returned to the company in 1997 after nearly 12 years away. He brought with him a new SO that became the foundation of modern Macintosh computers. He also led the transformation of the company from a computer company to a consumer electronics company, with forays into music distribution and the introduction of the iconic pods, phones, and pads.

The introduction of such innovative products De the way for changes in the marketplace. Much has been made of Steve Jobs approach to product design and leadership. He has been described as “inspirational,” “persuasive,” and “innovative,” to name but a few terms. PC Magazine’s Lance Llano’s has even gone as far as to say “Jobs was Apple. ” The fact that he was named Fortune’s CEO of the decade is testament to his effect on the company and the consumer electronics industry as a whole. According to Jobs, the reason why his companies have become so successful is because they hire the very best people.

While this strategy is definitely a age part of the success of Jobs and Apple, it definitely is not the only reason. Jobs, from a very young age, had a tireless work ethic, particularly toward his passion, electrical engineering. His work ethic was the motivation that led him to learn about the advanced technical knowledge of the inner workings of the computers that Apple has been building for decades. Jobs’ vision to see the potential in technology allowed him to take full advantage of these opportunities. Without his vision he could not have seen the potential in the first computer that Woozier built.

Eventually Jobs envisioned a revolutionary process that involved a unique bond between the world and computers. His understanding of human behavior and motivation helped him to accurately speculate what people will see as revolutionary and desirable products. He was very persuasive and has advanced negotiation skills. This was demonstrated while he was running Paxar and negotiating terms with Disney on production of their animated films. Page 7 Jobs also made Apple successful because of his business and social foresight and because of his love of the products his company creates.

A good legman believes in his products and espouses them with high enthusiasm. Jobs believed in his technological innovations and sold them aggressively throughout his career. His ability to develop and deliver superior business strategy has kept Apple in the forefront of the industry. Steve Jobs deserves an A for his ability to build the most innovative company in the world. Apple is constantly innovating with former and current products like the Mac l, Mac II, Mac Ill, Lisa, Macintosh, Macro, pod, phone, etc. Unfortunately, Job’s volatile personality could be argued to drop his overall read down to an A-.

A consumers view of Apple Inc. ‘s products Answers to this will include physical or tangible attributes such as: size, price, storage/memory capacity, compatibility, style, color etc. Other (more interesting answers) may include the emotional or intangible aspects of the product/company such as: ease of use, use of product that is considered “cool” or mainstream, feelings of “fitting in” or being on the cutting edge of technology. The reasons provided for this latter category (of intangibles) are harder for companies to replicate and could be the basis for a competitive advantage.

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