The Apple Company - Term Paper Example

?Apple Inc. – Past, Present & Future Introduction For those who worship at the altar of Apple Inc. one may be inclined to compare its derivation to that of genesis - and the use of the ‘apple’ as its moniker provides much fodder for conversation about the subtle message that the creation of the Apple Computer might place on the same plane as the birth of mankind (a wonder to behold or even a religious experience). If you hail from a more pragmatic and rational viewpoint, then this type of ‘hype’ is rejected in favor of a search for that which has made it the recognized and indisputable technology wizard it is today. There is no doubt that Apple Inc. is one of the most progressive companies in the United States (if not on the planet itself). Even though it floundered after the early years of its inception (dating back to 1976), for the past nearly two decades Apple Inc. has consistently led the technology markets in product innovation and brand loyalty. Many credit the vision of one of its earliest developers and current CEO, Steve Jobs, with its repeated successes thanks to such powerhouse creations as the IPod, IPad, and IPhone (to name a few) – a point that is difficult to argue. Even so, recent bouts of illnesses that have caused Jobs to be ‘off the job’ on several occasions have left shareholders edgy about the future of the company and the continued value of their investment in the coming years. In this essay we will briefly review the origins of this organization that began as a brainchild in a garage and follow its history to the present day. Finally we will consider the projected future scenarios of Apple Inc. alongside expert opinions on the likelihood of a company’s success in general (and Apple Inc.’s in particular) when its founder and spokesman is no longer a driving factor in its daily and future operations. In the Beginning It would probably not surprise the reader to know that there are dozens of books on the market that offer the definitive history and ‘inside story’ of the Apple Company. Certainly the tale of the creation of the first apple computer has a bohemian aura. According to one author the original designer of the device was not Steve Jobs at all – but Steve Wozniak and a friend of his named Bill Fernandez. Wozniak had dropped out of engineering school and he and Fernandez (who by now had introduced a friend named Steve Jobs) “built their first computer from parts rejected by local companies for cosmetic flaws” (Linzmayer, 2004). It is true that the first computer they built was in a garage – and the photos of them with their then stylish hair hanging over their foreheads while poring over a part complete the picture of an era in which people began to believe in the power of their own thinking (versus group thought). This belief is seconded in another recently published tome on the subject of the impact that the Apple company has had on the corporate world. The author teases the reader with this nugget: Two guys named Steve, working in a garage, created a prototype computer designed to be different in a way no one thought possible: It would be easy to use. Those two Steves, one now a billionaire and still at the head of Apple, not only succeeded with that product, but they also broke ground in the business world in ways few thought possible: They proved you could not only have fun at work, but pursuing a capitalist dream could be hip. (OGrady, 2009) It was the beginning of a revolution in this country and the world. Jobs, Wozniak and Fernandez were in and out of each other’s lives over the next few years – supporting each other in technology and money-making ventures. However, Fernandez was not a part of the Apple Company when it was finally established in 1976. And then there were 2 – Jobs and Wozniak - as a third party sold his shares back to Jobs (for $800) when they incorporated in 1977. Here it becomes difficult to decide what should be put in and what should be left out of the story for sake of time and relevance. The fact is that the history of Apple and its founders is so compelling to anyone who declares the business world to be their future (and even those who don’t) that my best advice could only be to take the time to read the books I’ve referenced in the bibliography from cover to cover. Briefly, the time period that extends from the late 1970’s to the mid-1980’s saw unparalleled successes at dizzying speeds for Apple Inc. Products such as Lisa and the McIntosh placed them squarely in the ‘technology winning circle’. But, as one might suspect, bitter jealousies and varying points of view about the future path of the company led to infighting and the near demise of the company. In addition, the Apple Company had several missteps that were also severe enough to take it to the brink of near bankruptcy. It seemed that when Jobs left that Apple could do no right. They introduced products such as the Macintosh Portable that failed. Meanwhile it also attempted to invade parallel technology markets such as offering sales of cameras and audio components that stretched the limit of their capabilities and turned consumers against their good name. Next, they went through a couple CEOs whose decision-making further impaired the company by backing products that would eventually flop and disappointing customers with the quality of their merchandise. Apple was literally on the edge of the abyss when they abruptly fired their last CEO and voted to bring Jobs back as interim. From the Mid-1990’s to the Present – an Apple Renaissance Jobs wasted no time in weeding out the product lines and stodgy thinking that had begun to choke the life out of Apple and he began to ‘attack’ from all sides. First, came the phasing out of the McIntosh computer for the radical and much sought after iMac. At the same time they began offering a slate of video production programs that allowed the novice to act like a ‘producer, photographer and videographer’ in their own homes – thereby raising the level of ‘cool’ and instigating the return of their customer base. But there can be little doubt that the introduction of the ‘Apple Store’ followed by the release of the first IPod rocketed the company back to the top tiers of financial and business victory. Like a conquistador – Jobs was back to not only run the Apple Company again – but to bring inventions to life that had heretofore not been envisioned. At the risk of sounding banal the famous Kennedy line comes to mind with the words “I dream things that never were and say why not”. It appeared that Jobs was operating from a similar mindset – if not for a different purpose. Jobs most recent forays into technology innovation have included the IPhone and the IPad – both marvels of the electronic world that are considered to be ‘must-haves’ by consumers around the world. It appears that we will know no limits to the imagination that is Steve Jobs and what he sees for the average American of tomorrow. The Challenges of Brand Culture However, herein lies what may be a cause for rocky times ahead at Apple Inc. Steve Jobs has created arguably the most sought-after brand of a product in the last 2 decades – but he has done so in his own image – and it is an icon that cannot be easily dismissed. Who among us does not envision Jobs in his classic black turtle neck, jeans and sneakers when a new Apple product is being introduced to the public? How many of us have watched his own version of ‘fireside chats’ when discussing the future of technology? Finally, who among us would not be tempted to put our own names and images on technological products that have literally changed the world – for posterity’s sake if for no other reason? Unfortunately, though, this decision could prove to be short-sighted and have serious consequences for Apple Inc. going forward if attempts are made to uncouple his eclectic style from the Apple image. What follows are some expert opinions on the subject – and it seems that everyone has something to say. According to a recent article in one esteemed west coast newspaper "Everyone knows that he (Jobs) might not return and the company is prepared for all eventualities. Many analysts are putting their faith in Apple's momentum. Apple is a well-oiled machine” (Guynn & Chimielewski, Feb. 2011). Another anonymous source is not quite as upbeat. “The timing (of Job’s leave) is foreboding and puts perspective on recent events…(such as) the delayed launch of the Ipad only newspaper (among other things)” (Wilcox, Jan, 2011). Yet another news article did not mince words. “There are those who say that without Jobs, Apple will have to "think different," in the words of its iconic advertising campaign. Perhaps more than any other chief executive in America, Jobs has made himself indispensable to his company. He commands a work force of 50,000 with a tight grip, taking part in nearly every decision and earning credit for Apple's historic run” (Fisher, Mar. 2011). One writer offered some particularly unsettling insights in his article from earlier this year. “Apple was built in the image of Steve Jobs and Apple is built on blockbusters. The likelihood is that the company will be fine for the next 3 to 5 years but I don’t think it can thrive in the long term. Jobs is one of a kind; I don’t know of anyone else in the industry capable of knowing the kinds of technology products people want even before they know it themselves” (Gralla, Jan. 2011). Finally, another individual had this to say about Apple’s future without its iconic leader. “I predict that if and when Apple needs to replace Steve Jobs it will consist of a couple minor management moves and little else. It will still likely function according to the philosophies he’s (Jobs) put in place since his return to the company in 1997. His legacy and influence will live on long after he’s no longer with the company” (Aamoth, Jan 2011). Brand Culture Even one hundred and fifty years ago inventors were staking their reputations on products by branding their name on them. One example of this was Horace Smith and D.B. Wesson who had their initials engraved onto the pistols they manufactured. Let us not forget Rockefeller, Cunard and many other wealthy industrialists of the 19th and even 20th century who were eager to follow this idea. Brand culture is everywhere in this country today – and it sells everything from perfume to clothing, food to cars. As one writer put it: “company founders have long believed that placing their name of their company (or otherwise associating themselves as part of the package) signals their willingness to stake their personal reputation and stand behind their products” (Anon. 2004). Perhaps we believe that loyalty to a brand makes us sophisticated. But it’s more likely that the manufacturers and brand icons are laughing all the way to the bank as they draw us in with their message – often convincing us that we must have what they are selling! Steve Jobs and Apple Inc. were no different in that regard. What Jobs set out to do is make himself the center of the brand. He banked on this being the cornerstone of the original success of Apple Inc. and its return to a leadership role in the world of technology and consumer electronics. His quirky genius paired with his ability to impart his vision to those around him placed Apple firmly in front of the ‘pack’ – and when he looked back I doubt he saw anyone nipping at his heels. Again, he is to be lauded if not revered by those who have the desire to create a similar empire. However, this type of branding definitely has its drawbacks. According to one expert - “strong corporate brands are only possible when firms tie their products or services to activities that create meaningful associations or representations of the firm.These firms create strong brands by connecting their products to a distinct social corporate mission as well as to values that appeal to certain customer segments (or a broad customer base)” (Schroeder, Salzer-Morling & Askegaard, 2006). So for the past decade it would seem that Jobs had used this philosophy to recreate an ‘empire’. But, now, with his untimely exit, there is a distinct possibility that with him will go the future of the company. Lastly, in a book that was published earlier this year – and written well before the general public had knowledge of Jobs ailments and decision to take a leave of absence from the company – the author’s findings may actually be a chilling precursor to what lies ahead at Apple. “I’ve known and worked with the leaders of IBM and Intel; I’ve met great leaders and thinkers. Steve Jobs is in a class by himself. He is the leader of the most outstanding company in the history of business. He does seemingly impossible things every day.” (Eliot, Simon & Simon, 2011). One can only wonder if he can exit the company and leave its future firmly in place. When the brand is the man and the man is the brand – some feel there is only a fifty-fifty chance of its long term survival. Others don’t even give it that good of odds. Conclusion While many will speculate that the demise and/or future of Apple Inc. is indelibly intertwined with the health and continued leadership of the founder who has remained its CEO - there are an equal number who argue against this proposition. Those who are not concerned offer multiple examples of companies that were branded on its creator’s image and later went on to succeed even years and decades after the founder has stepped down. Some of the more popular illustrations of this premise include Kentucky Fried Chicken that increased its revenues markedly even after the passing of its founder – The Colonel. In addition, many businesses of yesteryear and today have ascended to profitable heights even with the names of their founders on the masthead including such well-known companies as Stonyfield, Ben & Jerry’s, Trump and Patagonia. No matter which side of the argument you fall on there is no doubt that those of us who have had the pleasure of living in the same era as Steve Jobs have been witness to a genius unlike few that have come before him. In some ways it seems he has led the technology revolution by himself – dragging the rest of us into the future of telecommunications with avant-garde products that have (in many cases) virtually changed the way we live. References Aamoth, Doug. “Apple’s future without Steve Jobs”. Techland; 17 January, 2011. Anonymous. “When the CEO is the brand, but falls from grace, what next?” Wharton, 7 April 2004. Eliot, Jay et al. The Steve Jobs way: ILeadership for a new generation. Jaico Publishing, 2011. Fisher, Anne. “America’s most sought after companies”. Seattle Times (Seattle). Mar 2011. Gralla, Preston. “Will Apple without Steve Jobs suffer like Microsoft without Bill Gates?” Computerworld, 17 January, 2011. Guynn, Jessica & Chmielewski, Dawn. “What will Apple’s future be without Steve Jobs?” Los Angeles Times (Los Angeles). 23 February, 2011. Linzmayer, Owen. Apple Confidential 2.0: the definitive history of the world’s most colorful company. San Francisco; No Starch Press, 2004. O’Grady, Jason. How Apple Inc. changed the world. Jaico Publishing House, 2009. Schroeder, Jonathon et al. Brand culture. Business and Economics, 2006. Wilcox, Joe. “What future does Apple Have without Steve Jobs?” Companies News, Jan 17 2011 Read More