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Business Strategic Management Executive Summary - Essay Example

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What is the need for such changes moving away from the core competencies of the company? How did the change at the top position affect Apple Computers since…
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Business Strategic Management Executive Summary
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Business Strategic Management Executive Summary

Download file to see previous pages... The inclusion of A. C. Markkula brought in the required funds to the company as he was a retired professional with experience of working at Intel. Steve Jobs, the visionary of the three, dreamt about making a computer that is immensely user – friendly and therefore having considerable success with Apple – I, the company focused on Apple – II.
But as IBM entered the market of manufacturing computers, the sales revenue and net profit of Apple Computers took a major hit and Steve Jobs was removed from the operational role. In order to replace Steve Jobs, the company banked upon John Sculley as the new CEO, who had a successful stint with Pepsi. Sculley initiated number of major decisions which included cooperative ventures with arch – rivals IBM. The Macintosh computers manufactured by Apple Computers continued to be the major revenue earner for the company. Sculley also decided to outsource some of its operations so that cost could be curtailed. But the efforts were not enough to ensure profitability of Apple Computers and the company faced 34% gross loss. Sculley was ‘promoted’ to be the Chairman by the board while Spindler replaced him as the CEO in the year 1991.
Spindler cancelled many of the projects initiated by his predecessors and focused on capturing the international markets. Also, he attacked cost and curtailed research expenses too. Such a measure proved to be fatal for the company in due course of time and he had to resign with $ 69 million loss in 1996. Spindler was succeeded by a director of the board, George Amelio. Amelio cancelled the project of developing next generation Mac operating system. He tried to bring back the company on premium pricing model and acquired NeXT, a Steve Jobs company. Jobs joined Apple Computers again as an advisor and when in the year of 1997, the market share of Apple Computers reduced from 6% to 3%, Amelio was shown the door and Steve Jobs, the founder was made the interim CEO.
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