Business Strategic Management Executive Summary - Essay Example

Executive Summary Issue It is observed that Apple, Inc has been initiating significant yet calculated changes in its scheme of operations. 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 inception?Early YearsApple has been one of those companies that could successfully shift their business with time. Established in the year of 1976 by two college dropout friends named Steve Jobs and Steve Wozniak on April 01 at the family garage, Apple drew huge attention within few years of its formation.

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. Tough Times (Analysis – Internal and External)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.The Turnaround (Alternative Course of Action)Being at the helm, Jobs initiated perfect revamp policy for the company. The name with which the company was known for the last three decades was shortened and named only Apple, Inc.

Though sales of computer still happened to be the prime source of generating revenues, the company also focused upon other technology based products apart from computers and the list includes iPod, iTunes, Apple TV Hobby, iPhone Version 1 and iPhone Version 2. The products became immensely popular and the company experienced steady rise in revenue. Steve Jobs perceived Apple, Inc. as a culture and not just as a company. He emphasized upon technological innovation and distribution channel management for the up-gradation of Mac computers.

Steve Jobs, being an experienced custodian managed the important factors of successful production and marketing like that of suppliers, markets, substitutes and competitors, quite well. Steve Jobs is rightly perceived as the turnaround manager for Apple, Inc.RecommendationsIt is best for the company to venture into various other technological products and not just into computers. The company, under the able leadership of Steve Jobs, commenced production and marketing of iPhones, iTunes and iPods.

These diversifications were very much needed for the long term sustainability of the company. It will also be prudent for the company to allocate resources for continuous research and development as well as up-gradations of its products so that it can cater to the changing needs of the customers. BibliographyYoffie, D. B. & Slind, M. Apple, Inc 2008. March 10, 2010. Harvard Business School. September 08, 2008.