Case Study - Apple Inc. Essay

4966 Words Aug 7th, 2012 20 Pages
STRATEGIC MANAGEMENT APPLE INC.

Submitted by: BURGAS, JHENNEL
CATORCE, FREYA JULIA
DACALOS, DAVE RYAN
MERIDA, KRISTY RAE
SABILLO, MA. CARMEN
F 12:00-3:00

Submitted to:

Mr. Rene Y. Paquibot

1. Summary

Everything started on April 1, 1976, when Steve Jobs, 20, and Steve Wozniak, 25, both electronic experts, decided to create and sell personal computers designed by the latter. Their little company was located in Job’s garage. They called their company Apple and their first machine, Apple I. It was just a simple computer with no case, keyboard and power supply. However, in October 1976, through the efforts of Woz, an improved version of Apple I was introduced, called the Apple II.
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Significant employees started to clash with executives. Jobs even tried to ask John Sculley, former marketing vice president of Pepsi to join Apple as CEO. On the other hand the Lisa line had its own problems. In 1984, the Macintosh was introduced in the market which had early strong sales but then lacked some important features such as a hard disk drive and insufficient computer memory which were present in other machines. Such absence caused Apple to incur its first loss in 1985.

Due to drastic actions that happened in Apple, Jobs had no other choice but to resign from Apple. He then created another computer company he called NeXT. Together with his resignation, Sculley closed the Lisa line which generated minimal sales due to its high selling price. In January 1986, an improved version of Macintosh, called the Mac Plus, was introduced.
Apple had its golden years for the period between 1986 and 1991 because it was able to offer both hardware and software to customers to “plug and play”. In 1990, the sales of Apple were around $5.6 billion, representing 8% of the global market share. Apple even had a strong statement of financial position and was regarded as one of the top income generating companies worldwide.

This period raised concerns on whether MAC operating systems should be cloned. Sculley was in favor of cloning such systems. However, Jean-Louise Gassee, head of Research and Development at Apple, disagreed. However, in

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