Enterprenurship

TOPIC

“ENTREPRENEURSHIP MANAGEMENT”

ON

“APPLE’ AN ENTREPRENEURSHIP VENTURE BY STEVE JOB ”

SUBMITTED BY

MONALISA BHAVESH PATEL

M.COM (III SEMESTER)

PROJECT GUIDE

PROF. PRAJNA SHETTY

SUBMITTED TO

UNIVERSITY OF MUMBAI

RAJASTHANI SAMMELAN’S

Ghanshyamdas Saraf College

Affiliated to University of Mumbai

ACCREDITED BY NAAC WITH ‘A’ GRADE

&

Durgadevi Saraf Junior College

(ARTS & COMMERCE)

S.V.Road, Malad (W)

Mumbai: 400 064

Year: 2013-2014

RAJASTHANI SAMMELAN’S

Ghanshyamdas Saraf College

Affiliated to University of Mumbai

ACCREDITED BY NAAC WITH ‘A’ GRADE

&

Durgadevi Saraf Junior College

(ARTS & COMMERCE)

S.V.Road, Malad (W)

Mumbai: 400 064

CERTIFICATE

I Prof. PRAJNA SHETTY here by certify that Ms. Monalisa Bhavesh Patel a student of

Ghanshyamdas Saraf College of M.COM (SEMESTER III) has completed Project on

“ENTREPRENEURSHIP MANAGEMENT ON APPLE Inc” in the Academic year 2013-

2014. This information submitted is true and Original to the best of my Knowledge.

External Examiner: Principal:

Date:

Project Co-ordinator: College Seal:

Date:

ACKNOWLEDGEMENT

I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me a

chance to do this Project.

I express my sincere gratitude to the Principal, course co-ordinator Mrs.

PRAJNA SHETTY, Guide Prof. PRAJNA SHETTY and our librarian and other

teachers for their constant support and helping for completing the project.

I am also grateful to my friends for giving support in my project. Lastly, I would

like to thank each and every person who helped me in completing the project

especially MY PARENTS.

DECLARATION

I Miss Monalisa Bhavesh Patel a student of Ghanshyamdas Saraf College of

Arts and Commerce, Malad (W) M.COM (Semester III) hereby declare that I

have completed project on “ENTREPRENEURSHIP MANAGEMENT ON

APPLE Inc” in the academic Year 2013-2014. This information submitted is true

and original to best of my Knowledge.

Date: Signature of Student

INDEX

Sr. No. Topic Page No.

1 EXECUTIVE SUMMARY

2 STEVE JOBS AN ENTREPRENEUR

3 EARLY LIFE OF STEVE JOBS

4 CAREER OF STEVE JOBS

5 BUSINESS LIFE

6 VISION AND MISION STATEMENT OF APPLE

7 APPLE CORPORATE CULTURE

8 APPLE ETHICS

9 ETHICAL ISSUES AT APPLE

10 FUTURE OF APPLE

11 RECOMMENDATIONS

12 BIBLOGRAPHY

EXECUTIVE SUMMARY

The project is about a new business venture. It covers the core concepts that are involved in the development and implementation of this company. Taking the initiative and pulling it towards something unique and different. This project guides about the company attributes, boosting its early phases to penetrate through target market identification and segmenting it to different locations, planning for market positioning, effective pricing strategy, how to promote it to clients through different mediums and sources and most importantly, the environmental factors that are associated with the early stages of business development and post variable factors that are major challenges to the business.

STEVE JOBS (AN ENTREPRENEUR)

Steven Paul "Steve" Jobs (February 24, 1955 – October 5, 2011) was an American entrepreneur, marketer, and inventor, who was the co-founder, chairman, and CEO of Apple Inc. Through Apple, he is widely recognized as a charismatic pioneer of the personal computer revolution and for his influential career in the computer and consumer electronics fields, transforming "one industry after another, from computers and smart phones to music and movies".Jobs also co-founded and served as chief executive of Pixar Animation Studios; he became a member of the board of directors of The Walt Disney Company in 2006, when Disney acquired Pixar. Jobs was among the first to see the commercial potential of Xerox PARC's mouse-driven graphical user interface, which led to the creation of the Apple Lisa and, one year later, the Macintosh. He also played a role in introducing the LaserWriter, one of the first widely available laser printers, to the market.

After a power struggle with the board of directors in 1985, Jobs left Apple and founded NeXT, a computer platform development company specializing in the higher-education and business markets. In 1986, he acquired the computer graphics division of Lucasfilm, which was spun off as Pixar. He was credited in Toy Story (1995) as an executive producer. He served as CEO and majority shareholder until Disney's purchase of Pixar in 2006. In 1996, after Apple had failed to deliver its operating system, Copland, Gil Amelio turned to NeXT Computer, and the NeXTSTEP platform became the foundation for the Mac OS X.Jobs returned to Apple as an advisor, and took control of the company as an interim CEO. Jobs brought Apple from near bankruptcy to profitability by 1998.

As the new CEO of the company, Jobs oversaw the development of the iMac, iTunes, iPod, iPhone, and iPad, and on the services side, the company's Apple Retail Stores, iTunes Store and the App Store. The success of these products and services provided several years of stable financial returns, and propelled Apple to become the world's most valuable publicly traded company in 2011. The reinvigoration of the company is regarded by many commentators as one of the greatest turnarounds in business history.

In 2003, Jobs was diagnosed with a pancreas neuroendocrine tumor. Though it was initially treated, he reported a hormone imbalance, underwent a liver transplant in 2009, and appeared progressively thinner as his health declined. On medical leave for most of 2011, Jobs resigned in August that year, and was elected Chairman of the Board. He died of respiratory arrest related to his tumor on October 5, 2011.

Jobs received a number of honors and public recognition for his influence in the technology and music industries. He has been referred to as "legendary", a "futurist" or simply "visionary”, and has been described as the "Father of the Digital Revolution", a "master of innovation”,” the master evangelist of the digital age “and a "design perfectionist".

Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone Smartphone, and the iPad tablet computer. Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites.

The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977. The word "Computer" was removed from its name on January 9, 2007, the same day Steve Jobs introduced the iPhone, reflecting its shifted focus towards consumer electronics.

Apple is the world's second-largest information technology company by revenue after Samsung Electronics and the world's third-largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received criticism for its contractors' labor practices, and for Apple's own environmental and business practices.

EARLY LIFE OF STEVE JOBS

Jobs's birth parents met at the University of Wisconsin, where Jobs's Syrian-born biological father, Abdulfattah "John" Jandali , was a student, and later taught, and where his biological mother, Swiss-American Catholic Joanne Carole Schieble, was also a student. They were the same age because Jandali had received his PhD at an early age. Jandali, who was teaching in Wisconsin when Jobs was born, said he had no choice but to put the baby up for adoption because his girlfriend's family objected to their relationship.

Jobs was born in San Francisco, California. He was adopted at birth by Paul Reinhold Jobs (1922–1993) and Clara Jobs (1924–1986), an Armenian American whose maiden name was Hagopian. According to Steve Jobs's commencement address at Stanford, Schieble wanted Jobs to be adopted only by a college-graduate couple. Schieble learned that Clara Jobs hadn't graduated from college and Paul Jobs had only attended high school, but signed final adoption papers after they promised her that the child would definitely be encouraged and supported to attend college. Later, when asked about his "adoptive parents", Jobs replied emphatically that Paul and Clara Jobs "were my parents." He stated in his authorized biography that they "were my parents 1,000%."Unknown to him, his biological parents would subsequently marry (December 1955), have a second child, novelist Mona Simpson, in 1957, and divorce in 1962.

The Jobs family moved from San Francisco to Mountain View, California when Jobs was five years old. The parents later adopted a daughter, Patty. [1] Paul worked as a mechanic and a carpenter, and taught his son rudimentary electronics and how to work with his hands.Paul showed Steve how to work on electronics in the family garage, demonstrating to his son how to take apart and rebuild electronics such as radios and televisions. As a result, he became interested in and developed a hobby of technical tinkering.

Clara was an accountant[ who taught him to read before he went to school. Clara Jobs had been a payroll clerk for Varian Associates, one of the first high-tech firms in what became known as Silicon Valley.

Jobs' youth was riddled with frustrations over formal schooling. At Monta Loma Elementary school in Mountain View, he frequently played pranks on others. Though school officials recommended that he skip two grades on account of his test scores, his parents elected for him only to skip one grade.

Jobs then attended Cupertino Junior High and Homestead High School in Cupertino, California. At Homestead, Jobs became friends with Bill Fernandez, a neighbor who shared the same interests in electronics. Fernandez introduced Jobs to his neighbor, Steve Wozniak, a computer and electronics whiz kid, who was also known as "Woz". In 1969 Wozniak started building a little computer board with Fernandez that they named "The Cream Soda Computer", which they showed to Jobs; he seemed really interested.Wozniak has stated that they called it the Cream Soda Computer because he and Fernandez drank cream soda all the time whilst they worked on it and that he and Jobs had gone to the same high school, although they did not know each other there.

Following high school graduation in 1972, Jobs enrolled at Reed College in Portland, Oregon. Reed was an expensive college which Paul and Clara could ill afford. They were spending much of their life savings on their son's higher education. Jobs dropped out of college after six months and spent the next 18 months dropping in on creative classes, including a course on calligraphy. He continued auditing classes at Reed while sleeping on the floor in friends' dorm rooms, returning Coke bottles for food money, and getting weekly free meals at the local Hare Krishna temple.Jobs later said, "If I had never dropped in on that single calligraphy course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts."

CAREER OF STEVE JOBS

EARLY WORK

In late 1973, Jobs took a job as a technician at Atari, Inc. in Los Gatos, California. Atari's co-founder Nolan Bushnell described him as "difficult but valuable", pointing out that "he was very often the smartest guy in the room, and he would let people know that." Jobs travelled to India in mid-1974 to visit Neem Karoli Baba at his Kainchi Ashram with a Reed College friend (and, later, an early Apple employee), Daniel Kottke, in search of spiritual enlightenment. When they got to the Neem Karoli ashram, it was almost deserted as Neem Karoli Baba had died in September 1973. Then they made a long trek up a dry riverbed to an ashram of Hariakhan Baba. In India, they spent a lot of time on bus rides from Delhi to Uttar Pradesh and back, then up to Himachal Pradesh and back.

After staying for seven months, Jobs left India and returned to the US ahead of Daniel Kottke. Jobs had changed his appearance; his head was shaved and he wore traditional Indian clothing. During this time, Jobs experimented with psychedelics, later calling his LSD experiences "one of the two or three most important things [he had] done in [his] life". He also became a serious practitioner of Zen Buddhism, engaged in lengthy meditation retreats at the Tassajara Zen Mountain Center, the oldest Sōtō Zen monastery in the US. He considered taking up monastic residence at Eihei-ji in Japan, and maintained a lifelong appreciation for Zen. Jobs would later say that people around him who did not share his countercultural roots could not fully relate to his thinking.

Jobs then returned to Atari, and was assigned to create a circuit board for the arcade video game Breakout. According to Bushnell, Atari offered $100 for each chip that was eliminated in the machine. Jobs had little specialized knowledge of circuit board design and made a deal with Wozniak to split the fee evenly between them if Wozniak could minimize the number of chips. Much to the amazement of Atari engineers, Wozniak reduced the number of chips by 50, a design so tight that it was impossible to reproduce on an assembly line. According to Wozniak, Jobs told him that Atari gave them only $700 (instead of the offered $5,000), and that Wozniak's share was thus $350. Wozniak did not learn about the actual bonus until ten years later, but said that if Jobs had told him about it and had said he needed the money, Wozniak would have given it to him.

Wozniak had designed a low-cost digital "blue box" to generate the necessary tones to manipulate the telephone network, allowing free long-distance calls. Jobs decided that they could make money selling it. The clandestine sales of the illegal "blue boxes" went well, and perhaps planted the seed in Jobs's mind that electronics could be fun and profitable.

Jobs began attending meetings of the Homebrew Computer Club with Wozniak in 1975. He greatly admired Edwin H. Land, the inventor of instant photography and founder of Polaroid Corporation, and would explicitly model his own career after that of Land's.

In 1976, Jobs and Wozniak formed their own business, which they named "Apple Computer Company" in remembrance of a happy summer Jobs had spent picking apples. At first they started off selling circuit boards.[71]

APPLE COMPUTER

History of Apple

Home of Paul and Clara Jobs, on Crist Drive in Los Altos, California. Steve Jobs formed Apple Computer in its garage with Steve Wozniak and Ronald Wayne in 1976. Wayne stayed only a short time, leaving Jobs and Wozniak as the primary co-founders of the company.

In 1976, Wozniak single-handedly invented the Apple I computer. After Wozniak showed it to Jobs, who suggested that they sell it, they and Ronald Wayne formed Apple Computer in the garage of Jobs's parents in order to sell it. Wayne stayed only a short time leaving Jobs and Wozniak as the primary co-founders of the company. They received funding from a then-semi-retired Intel product-marketing manager and engineer Mike Markkula.

In 1978, Apple recruited Mike Scott from National Semiconductor to serve as CEO for what turned out to be several turbulent years. In 1983, Jobs lured John Sculley away from Pepsi-Cola to serve as Apple's CEO, asking, "Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?"

In the early 1980s, Jobs was among the first to see the commercial potential of Xerox PARC's mouse-driven graphical user interface, which led to the creation of the Apple Lisa. One year later, Apple employee Jef Raskin invented the Macintosh.

The following year, Apple aired a Super Bowl television commercial titled "1984". At Apple's annual shareholders meeting on January 24, 1984, an emotional Jobs introduced the Macintosh to a wildly enthusiastic audience; Andy Hertzfeld described the scene as "pandemonium".

Apple logo in 1977, created by Rob Janoff with the rainbow color theme used until 1998.

While Jobs was a persuasive and charismatic director for Apple, some of his employees from that time described him as an erratic and temperamental manager.

Disappointing sales caused a deterioration in Jobs's working relationship with Sculley, which devolved into a power struggle between the two. Jobs kept meetings running past midnight, sent out lengthy faxes, then called new meetings at 7:00 am.

Sculley learned that Jobs—who believed Sculley to be "bad for Apple" and the wrong person to lead the company—had been attempting to organize a boardroom coup, and on May 24, 1985, called a board meeting to resolve the matter. Apple's board of directors sided with Sculley and removed Jobs from his managerial duties as head of the Macintosh division. With no duties and exiled from the rest of the company to an otherwise-empty building, Jobs stopped coming to work. After unsuccessfully applying to fly on the Space Shuttle as a civilian astronaut, and briefly considering starting a computer company in the Soviet Union, he resigned from Apple five months later.

In a speech Jobs gave at Stanford University in 2005, he said being fired from Apple was the best thing that could have happened to him; "The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life." And he added, "I'm pretty sure none of this would have happened if I hadn't been fired from Apple. It was awful-tasting medicine, but I guess the patient needed it."

NeXT Computer

NeXT

A NeXTstation with the original keyboard, mouse and the NeXT Megapixels monitor

Jobs founded NeXT Inc. in 1985 after his resignationwith $7 million. A year later he was running out of money, and with no product on the horizon, he sought venture capital. Eventually, Jobs attracted the attention of billionaire Ross Perot who invested heavily in the company. NeXT workstations were first released in 1990, priced at $9,999. Like the Apple Lisa, the NeXT workstation was technologically advanced, but was largely dismissed as cost-prohibitive by the educational sector for which it was designed. The NeXT workstation was known for its technical strengths, chief among them its object-oriented software development system. Jobs marketed NeXT products to the financial, scientific, and academic community, highlighting its innovative, experimental new technologies, such as the Mach kernel, the digital signal processor chip, and the built-in Ethernet port. Tim Berners-Lee invented the World Wide Web on a NeXT computer at CERN.

The revised, second-generation NeXTcube was released in 1990, also. Jobs touted it as the first "interpersonal" computer that would replace the personal computer. With its innovative Next Mail multimedia email system, NeXTcube could share voice, image, graphics, and video in email for the first time. "Interpersonal computing is going to revolutionize human communications and groupwork", Jobs told reporters. Jobs ran NeXT with an obsession for aesthetic perfection, as evidenced by the development of and attention to NeXTcube's magnesium case. This put considerable strain on NeXT's hardware division, and in 1993, after having sold only 50,000 machines, NeXT transitioned fully to software development with the release of NeXTSTEP/Intel. The company reported its first profit of $1.03 million in 1994. In 1996, NeXT Software, Inc. released WebObjects, a framework for Web application development. After NeXT was acquired by Apple Inc. in 1997, WebObjects was used to build and run the Apple Store, Mobile Me services, and the iTunes Store.

Pixar and Disney

In 1986, Jobs bought The Graphics Group (later renamed Pixar) from Lucasfilm's computer graphics division for the price of $10 million, $5 million of which was given to the company as capital.

The first film produced by the partnership, Toy Story (1995), with Jobs credited as executive producer, brought fame and critical acclaim to the studio when it was released. Over the next 15 years, under Pixar's creative chief John Lasseter, the company produced box-office hits A Bug's Life (1998); Toy Story 2 (1999); Monsters, Inc. (2001); Finding Nemo (2003); The Incredibles (2004); Cars (2006); Ratatouille (2007); WALL-E (2008); Up (2009); and Toy Story 3 (2010). Finding Nemo, The Incredibles, Ratatouille, WALL-E, Up and Toy Story 3 each received the Academy Award for Best Animated Feature, an award introduced in 2001.

In the years 2003 and 2004, as Pixar's contract with Disney was running out, Jobs and Disney chief executive Michael Eisner tried but failed to negotiate a new partnership, and in early 2004, Jobs announced that Pixar would seek a new partner to distribute its films after its contract with Disney expired.

In October 2005, Bob Iger replaced Eisner at Disney, and Iger quickly worked to mend relations with Jobs and Pixar. On January 24, 2006, Jobs and Iger announced that Disney had agreed to purchase Pixar in an all-stock transaction worth $7.4 billion. When the deal closed, Jobs became The Walt Disney Company's largest single shareholder with approximately seven percent of the company's stock. Jobs's holdings in Disney far exceeded those of Eisner, who holds 1.7 percent, and of Disney family member Roy E. Disney, who until his 2009 death held about one percent of the company's stock and whose criticisms of Eisner – especially that he soured Disney's relationship with Pixar – accelerated Eisner's ousting. Upon completion of the merger, Jobs received 7% of Disney shares, and joined the Board of Directors as the largest individual shareholder. Upon Jobs's death his shares in Disney were transferred to the Steven P. Jobs Trust led by Laurene Jobs.

Return to Apple

"1998–2005: Return to profitability" in Apple, Inc.

Logo for the Think Different campaign designed by TBWA\Chiat\Day and initiated by Jobs after his return to Apple Computer in 1997.

In 1996, Apple announced that it would buy NeXT for $427 million. The deal was finalized in late 1996, bringing Jobs back to the company he co-founded. Jobs became de facto chief after then-CEO Gil Amelio was ousted in July 1997. He was formally named interim chief executive in September. In March 1998, to concentrate Apple's efforts on returning to profitability, Jobs terminated a number of projects, such as Newton, Cyberdog, and OpenDoc. In the coming months, many employees developed a fear of encountering Jobs while riding in the elevator, "afraid that they might not have a job when the doors opened. The reality was that Jobs's summary executions were rare, but a handful of victims was enough to terrorize a whole company." Jobs also changed the licensing program for Macintosh clones, making it too costly for the manufacturers to continue making machines.

With the purchase of NeXT, much of the company's technology found its way into Apple products, most notably NeXTSTEP, which evolved into Mac OS X. Under Jobs's guidance, the company increased sales significantly with the introduction of the iMac and other new products; since then, appealing designs and powerful branding have worked well for Apple. At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple and became permanent CEO. Jobs quipped at the time that he would be using the title "iCEO".

Jobs on stage at Macworld Conference & Expo, San Francisco, January 11, 2005.The company subsequently branched out, introducing and improving upon other digital appliances. With the introduction of the iPod portable music player, iTunes digital music software, and the iTunes Store, the company made forays into consumer electronics and music distribution. On June 29, 2007, Apple entered the cellular phone business with the introduction of the iPhone, a multi-touch display cell phone, which also included the features of an iPod and, with its own mobile browser, revolutionized the mobile browsing scene. While stimulating innovation, Jobs also reminded his employees that "real artists ship".

Jobs was both admired and criticized for his consummate skill at persuasion and salesmanship, which has been dubbed the "reality distortion field" and was particularly evident during his keynote speeches (colloquially known as "Stevenotes") at Macworld Expos and at Apple Worldwide Developers Conferences. In 2005, Jobs responded to criticism of Apple's poor recycling programs for e-waste in the US by lashing out at environmental and other advocates at Apple's Annual Meeting in Cupertino in April. A few weeks later, Apple announced it would take back iPods for free at its retail stores. The Computer TakeBack Campaign responded by flying a banner from a plane over the Stanford University graduation at which Jobs was the commencement speaker. The banner read "Steve, don't be a mini-player—recycle all e-waste".

In 2006, he further expanded Apple's recycling programs to any US customer who buys a new Mac. This program includes shipping and "environmentally friendly disposal" of their old systems.

Resignation

In August 2011, Jobs resigned as CEO of Apple, but remained with the company as chairman of the company's board. Hours after the announcement, Apple Inc. (AAPL) shares dropped five percent in after-hours trading. This relatively small drop, when considering the importance of Jobs to Apple, was associated with the fact that his health had been in the news for several years, and he had been on medical leave since January 2011. It was believed, according to Forbes, that the impact would be felt in a negative way beyond Apple, including at The Walt Disney Company where Jobs served as director. In after-hours trading on the day of the announcement, Walt Disney Co. (DIS) shares dropped 1.5 percent.

BUSINESS LIFE

Remember, the sixties happened in the early seventies, and that's when I came of age; and to me, the spark of that was that there was something beyond what you see every day. Its the same thing that causes people to be poets instead of bankers. And I think that's a wonderful thing. I think that same spirit can be put in to products, and those products can be manufactured, and given to people, and they can sense that spirit.

—Steve Jobs, Pirates of Silicon Valley

Wealth

Although Jobs earned only $1 a year as CEO of Apple, Jobs held 5.426 million Apple shares worth $2.1 billion, as well as 138 million shares in Disney (which he received in exchange for Disney's acquisition of Pixar) worth $4.4 billion. Jobs quipped that the $1 per annum he was paid by Apple was based on attending one meeting for 50 cents while the other 50 cents was based on his performance. Forbes estimated his net wealth at $8.3 billion in 2010, making him the 42nd-wealthiest American.

Stock options backdating issue

Steve Jobs and Bill Gates at the fifth D: All Things Digital conference (D5) in 2007. In 2001, Jobs was granted stock options in the amount of 7.5 million shares of Apple with an exercise price of $18.30. It was alleged that the options had been backdated, and that the exercise price should have been $21.10. It was further alleged that Jobs had thereby incurred taxable income of $20,000,000 that he did not report, and that Apple overstated its earnings by that same amount. As a result, Jobs potentially faced a number of criminal charges and civil penalties. The case was the subject of active criminal and civil government investigations, though an independent internal Apple investigation completed on December 29, 2006, found that Jobs was unaware of these issues and that the options granted to him were returned without being exercised in 2003. On July 1, 2008, a $7-billion class action suit was filed against several members of the Apple Board of Directors for revenue lost due to the alleged securities fraud.

MANAGEMENT STYLE

Jobs was a demanding perfectionistwho always aspired to position his businesses and their products at the forefront of the information technology industry by foreseeing and setting trends, at least in innovation and style. He summed up that self-concept at the end of his keynote speech at the Macworld Conference and Expo in January 2007, by quoting ice hockey player Wayne Gretzky

There's an old Wayne Gretzky quote that I love. 'I skate to where the puck is going to be, not where it has been.' And we've always tried to do that at Apple. Since the very very beginning. And we always will.

Ever a stickler for quality, Jobs once famously quoted:

Be a yardstick of quality. Some people aren't used to an environment where excellence is expected.

Steve Jobs announcing the transition to Intel processors in 2005.

Much was made of Jobs's aggressive and demanding personality. Fortune wrote that he was "considered one of Silicon Valley's leading egomaniacs". Commentaries on his temperamental style can be found in Michael Moritz's The Little Kingdom, The Second Coming of Steve Jobs, by Alan Deutschman; and iCon: Steve Jobs, by Jeffrey S. Young & William L. Simon. In 1993, Jobs made Fortune's list of America's Toughest Bosses in regard to his leadership of NeXT.

NeXT Cofounder Dan'l Lewin was quoted in Fortune as saying of that period, "The highs were unbelievable ... But the lows were unimaginable", to which Jobs's office replied that his personality had changed since then.

Apple CEO Tim Cook noted, "More so than any person I ever met in my life, [Jobs] had the ability to change his mind, much more so than anyone I’ve ever met... Maybe the most underappreciated thing about Steve was that he had the courage to change his mind."

In 2005, Jobs banned all books published by John Wiley & Sons from Apple Stores in response to their publishing an unauthorized biography, iCon: Steve Jobs. In its 2010 annual earnings report, Wiley said it had "closed a deal ... to make its titles available for the iPad." Jef Raskin, a former colleague, once said that Jobs "would have made an excellent king of France", alluding to Jobs's compelling and larger-than-life persona. Floyd Norman said that at Pixar, Jobs was a "mature, mellow individual" and never interfered with the creative process of the filmmakers. Jobs had a public war of words with Dell Computer CEO Michael Dell, starting in 1987 when Jobs first criticized Dell for making "un-innovative beige boxes".On October 6, 1997, in a Gartner Symposium, when Michael Dell was asked what he would do if he ran then-troubled Apple Computer, he said "I'd shut it down and give the money back to the shareholders." In 2006, Jobs sent an email to all employees when Apple's market capitalization rose above Dell's. The email read:Team, it turned out that Michael Dell wasn't perfect at predicting the future. Based on today's stock market close, Apple is worth more than Dell. Stocks go up and down, and things may be different tomorrow, but I thought it was worth a moment of reflection today. Steve Job was also a board member at Gap Inc. from 1999 to 2002.

Reality distortion field

Reality distortion field

Apple's Bud Tribble coined the term "reality distortion field" in 1981, to describe Jobs's charisma and its effects on the developers working on the Macintosh project. Tribble claimed that the term came from Star Trek. Since then the term has also been used to refer to perceptions of Jobs's keynote speeches. The RDF was said by Andy Hertzfeld to be Steve Jobs's ability to convince himself and others to believe almost anything, using a mix of charm, charisma, bravado, hyperbole, marketing, appeasement, and persistence. Although the subject of criticism, Jobs's so-called reality distortion field was also recognized as creating a sense that the impossible was possible. By motivating the people around him to create innovative products, Jobs was in turn able to market them creatively to reach a wide audience. Once the term became widely known, it was often used in the technology press to describe Jobs's sway over the public, particularly regarding new product announcements.

INNOVATIONS AND DESIGNS

Jobs's design aesthetic was influenced by the modernist architectural style of Joseph Eichler, and the industrial designs of Braun's Dieter Rams. His design sense was also greatly influenced by the Buddhism which he experienced in India while on a seven-month spiritual journey. His sense of intuition was also influenced by the spiritual people with whom he studied.

According to Apple cofounder, Steve Wozniak, "Steve didn't ever code. He wasn't an engineer and he didn't do any original design..." Daniel Kottke, one of Apple's earliest employees and a college friend of Jobs', stated that "Between Woz and Jobs, Woz was the innovator, the inventor. Steve Jobs was the marketing person."

He is listed as either primary inventor or co-inventor in 346 United States patents or patent applications related to a range of technologies from actual computer and portable devices to user interfaces (including touch-based), speakers, keyboards, power adapters, staircases, clasps, sleeves, lanyards and packages. Jobs's contributions to most of his patents were to "the look and feel of the product". His industrial design chief Jonathan Ive had his name along with him for 200 of the patents. Most of these are design patents (specific product designs; for example, Jobs listed as primary inventor in patents for both original and lamp-style iMacs, as well as PowerBook G4 Titanium) as opposed to utility patents (inventions). He has 43 issued US patents on inventions. The patent on the Mac OS X Dock user interface with "magnification" feature was issued the day before he died. Although Jobs had little involvement in the engineering and technical side of the original Apple computers, Jobs later used his CEO position to directly involve himself with product design.

Even while terminally ill in the hospital, Jobs sketched new devices that would hold the iPad in a hospital bed. He also despised the oxygen monitor on his finger and suggested ways to revise the design for simplicity.

THE MACINTOSH COMPUTER

The Macintosh was introduced in January 1984. The computer had no "Mac" name on the front, but rather just the Apple logo. Apple co-founder and former Apple engineer, Steve Wozniak, has said that the Macintosh failed under Steve Jobs, and that it wasn't until Jobs left that it became a success.

The NeXT Computer

After Jobs was forced out of Apple in 1985, he started a company that built workstation computers. The NeXT Computer was introduced in 1989. Tim Berners-Lee created the world's first web browser on the NeXT Computer. The NeXT Computer was the basis for today's Macintosh OS X and iPhone operating system (iOS).

iMac

Apple iMac was introduced in 1998 and its innovative design was directly the result of Jobs's return to Apple. Apple boasted "the back of our computer looks better than the front of anyone else's". Described as "cartoonlike", the first iMac, clad in Bondi Blue plastic, was unlike any personal computer that came before. In 1999, Apple introduced the Graphite gray Apple iMac and since has varied the shape, colour and size considerably while maintaining the all-in-one design. Design ideas were intended to create a connection with the user such as the handle and a breathing light effect when the computer went to sleep. The Apple iMac sold for $1,299 at that time. The iMac also featured some technical innovations, such as having USB ports as the only device inputs. This latter change resulted, through the iMac's success, in the interface being popularised among third party peripheral makers – as evidenced by the fact that many early USB peripherals were made of translucent plastic (to match the iMac design).

iPod

The first generation of iPod was released October 23, 2001. The major innovation of the iPod was its small size achieved by using a 1.8" hard drive compared to the 2.5" drives common to players at that time. The capacity of the first generation iPod ranged from 5G to 10 Gigabytes. The iPod sold for US$399 and more than 100,000 iPods were sold before the end of 2001. The introduction of the iPod resulted in Apple becoming a major player in the music industry. Also, the iPod's success prepared the way for the iTunes music store and the iPhone. After the 1st generation of iPod, Apple released the hard drive-based iPod classic, the touchscreen iPod Touch, video-capable iPod Nano, screenless iPod Shuffle in the following years.

iPhone

Apple began work on the first iPhone in 2005 and the first iPhone was released on June 29, 2007. The iPhone created such a sensation that a survey indicated six out of ten Americans were aware of its release. Time magazine declared it "Invention of the Year" for 2007. The Apple iPhone is a small device with multimedia capabilities and functions as a quad-band touch screen smartphone. A year later, the iPhone 3G was released in July 2008 with three key features: support for GPS, 3G data and tri-band UMTS/HSDPA. In June 2009, the iPhone 3GS, added voice control, a better camera, and a faster processor was introduced by Phil Schiller. iPhone 4 was thinner than previous models, had a five megapixel camera which can record videos in 720p HD, and added a secondary front facing camera for video calls. A major feature of the iPhone 4S, introduced in October 2011, was Siri, which is a virtual assistant that is capable of voice recognition.

Philanthropy

Arik Hesseldahl of BusinessWeek magazine stated that "Jobs isn't widely known for his association with philanthropic causes", compared to Bill Gates's efforts. In contrast to Gates, Jobs did not sign the Giving Pledge of Warren Buffett which challenged the world's richest billionaires to give at least half their wealth to charity. In an interview with Playboy in 1985, Jobs said in respect to money that "the challenges are to figure out how to live with it and to reinvest it back into the world which means either giving it away or using it to express your concerns or values." Jobs also added that when he has some time we would start a public foundation but for now he does charitable acts privately.

After resuming control of Apple in 1997, Jobs eliminated all corporate philanthropy programs initially. Jobs's friends told The New York Times that he felt that expanding Apple would have done more good than giving money to charity. Later, under Jobs, Apple signed to participate in Product Red program, producing red versions of devices to give profits from sales to charity. Apple has gone on to become the largest contributor to the charity since its initial involvement with it. The chief of the Product Red project, singer Bono, cited Jobs saying there was "nothing better than the chance to save lives", when he initially approached Apple with the invitation to participate in the program. Through its sales, Apple has been the largest contributor to Product Red's gift to the Global Fund, which fights AIDS, tuberculosis and malaria, according to Bono.

VISION STATEMENT OF APPLE

"Man is the creator of change in this world. As such he should be above systemsand structures, and not subordinate to them."

Explanation of vision

Apple lives this vision through the technologies it develops for consumers and corporations. It strives to make its customers masters of the products they have bought. Apple doesn't simply make a statement. It lives it by ensuring that its employees understand the vision and strive to reach it. It has put systems in place to enable smooth customer interaction. It has put objectives in place to continuously move forward; implemented strategies to fulfill these objectives; and ensured that the right marketing, financial and operational structures are in place to apply the strategies.

MISSION STATEMENT

“Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings”

APPLE’S CORPORATE CULTURE

Apple’s transition from a computer to a consumer electronics company is unprecedented—and hard to replicate. Although many can only speculate about why Apple succeeded so well, they tend to credit Steve Jobs’ remarkable leadership abilities, Apple’s highly skilled employees, and its strong corporate culture.

The concept of evangelism is an important component of Apple’s culture. Corporate evangelists refer to people who extensively promote a corporation’s products. Apple even had a chief evangelist whose job was to spread the message about Apple and gain support for its products. However, as the name evangelism implies, the role of evangelist takes on greater meaning. Evangelists believe strongly in the company and will spread that belief to others, who in turn will convince other people. Therefore, evangelists are not only employees but loyal customers as well. In this way, Apple was able to form what it refers to as a “Mac cult”—customers who are very loyal to Apple’s Mac computers and who will spread a positive message about Macs to their friends and families.

Successful evangelism can only occur with dedicated, enthusiastic employees who are willing to spread the word about Apple. When Jobs returned to Apple, he instituted two cultural changes: he encouraged debate on ideas, and he created a vision that employees could believe in. By implementing these two changes, employees felt that their input was important and that they were a part of something bigger than themselves. Such feelings have created a sense of loyalty among many at Apple.

Apple prides itself on its unique corporate culture. On its job site for corporate employees, it ensures potential applicants that the organization has a flat structure, lacking the layers of bureaucracy of other corporations. Apple also emphasizes that it does not adhere to normal work environments in which employees are at their stations from 9:00 a.m. to 5:00 p.m. Instead, Apple markets itself as a fast-paced, innovative, and collaborative environment committed toward doing things “the right way.” By offering both challenges and benefits to applicants, Apple hopes to attract those who fit best with its corporate culture.

Apple also looks for retail employees that work well in its culture. Apple wants to ensure that its retail employees make each consumer feel welcome. Inside the Apple retailers are stations where customers can test and experiment with the latest Apple products. Employees have been trained to speak with customers within two minutes of them entering the store. To ensure that its retailer employees feel motivated, Apple provides extensive training, greater compensation than employees might receive at similar stores, and opportunities to move up to manager, genius (an employee trained to answer the more difficult customer questions), or creative (an employee who trains customers one-on-one or through workshops). Apple also offers young people the chance to intern with Apple or become student representatives at their schools.

Another benefit that Apple offers combines employee concerns with those of the environment. In an effort to reduce its overall environmental impact, Apple offers incentives such as transit subsidies for employees who opt to use public transportation. Its Cupertino facility is equipped with shuttles for employees, including free bus service between the Apple headquarters and the train station. Apple’s free buses are powered by bio-diesel. These incentives reduce fuel costs for employees while simultaneously lowering emissions released into the environment.

APPLE’S ETHICS

Apple has tried to ensure that its employees and those with which they work display appropriate conduct in all situations. It bases its success on “creating innovative, high-quality products and services and on demonstrating integrity in every business interaction.” According to Apple, four main principles contribute to integrity: honesty, respect, confidentiality, and compliance. To more thoroughly detail these principles, Apple has drafted a code of business conduct that applies to all its operations, including those overseas. It has also made available on its website more specific policies regarding corporate governance, director conflict of interest, and guidelines on reporting questionable conduct. Additionally, Apple provides employees with a Business Conduct Helpline that they can use to report misconduct to Apple’s Audit and Finance Committee.

Many of Apple’s product components are manufactured in countries with low labor costs. The potential for misconduct is high due to differing labor standards and less direct oversight. As a result, Apple makes each of its suppliers sign its “Supplier Code of Conduct” and performs factory audits to ensure compliance. Apple may refuse to do additional business with suppliers who refuse to comply with Apple’s standards. To emphasize its commitment toward responsible supplier conduct, Apple releases an annual Apple Supplier Responsibility Report that explains its supplier expectations as well as its audit conclusions and corrective actions the company will take against factories where violations have occurred.

ETHICAL ISSUES AT APPLE INC.

Although Apple has consistently won first place as the World’s Most Admired Company, it has experienced several ethical issues within recent years. These issues could have a profound effect on the company’s future success. Apple’s sterling reputation could easily be damaged by serious misconduct or a failure to address risks appropriately.

PRODUCT QUALITY

One issue requiring consistent oversight is product quality. Apple’s brand hinges upon product quality, so mistakes can create serious ethical dilemmas. In the fast-paced electronics industry, where several new products are introduced every year, mistakes can become hard to detect before product introduction. After Apple introduced the iPhone 4, consumers began to complain of reception problems. The problems were caused by antenna interference that occurred when users held the phone a certain way. Public relations experts have criticized Apple for appearing to minimize the problem rather than reacting quickly to remedy it. After Consumer Reports would not endorse the product, Apple provided free bumpers and cases for a certain period of time that resolved the reception problems. This product issue did not stop millions of consumers from purchasing the iPhone 4, but it does reiterate the great care Apple must take regarding product quality. Consumers view product quality as inseparable from Apple. Hence, a mishap in this area could damage the brand’s strength.

PRIVACY

Privacy is another major concern for Apple Inc. In 2011 Apple and Google disclosed that certain features on the cell phones they sell collect data on the phones’ locations. Consumers and government officials saw this as an infringement on user privacy. The companies announced that users have the option to disable these features on their phones. This was not entirely true for Apple as some of its phones continued to collect location information even after users had disabled the feature. Apple attributed this to a glitch that it remedied with new software. Both Google and Apple defend their data-collection mechanisms, but many government officials disagree.

SUSTAINABILITY

Apple has taken steps to become a greener company, such as reducing its environmental impact at its facilities. However, the company admits that the majority of its emissions come from its products. In 2009 Apple stated that its operations contributed to 9.6 million metric tons of metric gases being released. While 3 percent came from its facilities, 97 percent came from the life cycle of its products. Since Apple’s success hinges on constantly developing and launching new products, the environmental impact of its products is a serious issue.

One practice for which some consumers have criticized Apple is planned obsolescence—pushing people to replace or upgrade their technology whenever Apple comes out with an updated version. Since Apple is constantly releases upgraded products, this could result in older technology being tossed aside. Apple has undertaken different approaches to this problem. The company builds its products with materials that are suitable for recycling, it builds its products to last, and it recycles responsibly. To encourage its customers to recycle, Apple has created a recycling program at its stores for old iPods, mobile phones, and Macs. Consumers that trade in their old iPods can receive a ten percent discount on a newer version. Consumers recycling old Macs that still have value can receive gift cards. Apple partners with regional recyclers that comply with related laws. Despite this recycling program, many consumers feel that tossing out their old products is more convenient, particularly if they have no value. E-waste will remain a significant issue as long as consumers continue to throw away their old electronics.

Apple has also publicly stated its achievements in reducing toxic chemicals within its products. According to Steve Jobs, Apple has eliminated cathode-ray tubes—which contain lead—from its products. Its iPods are constructed with light-emitting diodes (LEDs) rather than fluorescent lamps, which do not contain mercury. The company has also eliminated the use of two toxic chemicals, polyvinyl chloride and brominated flame retardants, from its products.

PATENTS

With the many products Apple releases each year, it makes sense for it to protect its technology from theft. Apple’s aggressiveness regarding patent protection has led it to file lawsuits against some powerful companies. For example, the company filed a lawsuit against Samsung, claiming that Samsung had copied the designs of its iPhone and iPad for its own products. It also filed a lawsuit against HTC Corporation, a Taiwanese smartphone manufacturer that makes phones for Google’s Android products. Apple accuses HTC of replicating a range of cellphone features protected under Apple’s patents. Although the lawsuit is directed toward HTC, it also indirectly targets Google since it is a major client. If HTC is found guilty of patent violation, then Google’s phones could also be implicated. The ethical issue is whether Apple’s claims are legitimate. Is it pursuing companies that it honestly believes infringed on its patents, or is it simply trying to cast its competitors in a bad light so it can become the major player in the market? Although it might seem that Apple is being too aggressive, companies that do not set boundaries and protect their property can easily have it copied by the competition, who can then use it to gain a competitive foothold. It is up to the courts to determine whether Apple’s allegations have any validity. Finally, a more recent lawsuit accuses Apple of patent violations. Kodak has filed a lawsuit against Apple and Research in Motion, alleging that the companies infringed on its patent on digital-imaging technology. In response, Apple countersued Kodak by claiming it violated Apple’s patents. Unfortunately for Apple, a U.S. International Trade Commission judge ruled in Kodak’s favor in Apple’s lawsuit. The issue still stands regarding whether Apple infringed on Kodak’s patents. Kodak is seeking $1 billion in licensing revenue.

APPLE AVOIDS COMPETITION

If you look at the history of Apple, you'll see that instead of rising to competition,they often ignore it, or try to use legal means, or bundling clout, to erase it. When challenged by a larger market force, as with the IBM PC and its clones in the early 80s, and with Windows 3.0, 95 and then NT 4.0 in the 90s, they miss obvious marketing opportunities, ways to make their products stronger by participating in markets that others develop. This is an art that Microsoft has mastered, there's no reason Apple couldn't have learned the same lessons, but theydidn't.And when dealing with smaller competitors, Apple routinely and oftenunconsciously forced them out of business by bundling, or declaring that they will bundle a competitive offering.When the Internet happened, Apple struggled against it instead of embracing it, preferring to invest in technologies that eventually ended up on the scrap heap. A wasted lead in content development, developers going to Windows, a poor Java implementation on the Mac.The bottom line, the strategy of avoiding competition has been disastrous for Apple. But they want to do it again.

THE SAME OLD STRATEGY

The cloners, Motorola, Power Computing, UMAX, IBM and others, are poised to ship products that would take Apple out of the hardware business, because they’re cheaper, faster, bigger, more powerful machines than Apple's new products. These are the computers that Mac users want and are, in my opinion, entitled to. Even though we haven't seen the license agreements with the cloners, it appears that Apple has the contractual right to forbid them to ship the computers, for any reason at all. Apple wants to keep their hardware business, so they exercise that right. I despise companies that use hardball tactics to put their competitors out of business. I admire companies that rise to competition. I happily buy new products when I have a choice. I don't like to buy products that I'm forced to buy.

THE FUTURE OF APPLE Inc.

Apple appears optimistic about its future. The company has created a cult following of consumers who are intensely loyal to Apple products. Apple’s products or services are meant to offer superior solutions to those of competitors. In one of Apple’s newest offerings, Apple is taking its forays in the music industry further. The company has reached agreements with record labels to launch iCloud, a service that enables consumers to create and listen to their music collections without having to upload individual songs. While Google and Amazon offer similar music storage services, Apple has more songs at its disposal with iTunes and its record label agreements. Seizing upon these opportunities can increase Apple’s share of the music and consumer electronics markets.

Apple also faces its share of threats. It faces lawsuits from various competitors claiming the company stole intellectual property. Additionally, although Apple’s aggressive stance has helped it to protect its intellectual property, its tight hold over its products and secrets could be disadvantageous as well. Google, for instance, has a more open-source approach. It has shown great support for the open-source movement, which advocates opening software and software codes in order to secure more input from outside sources. Although this openness increases the risks of intellectual property theft, it also allows for innovation to occur more rapidly due to additional collaboration. Google’s Android phones are beginning to gain market share as a formidable competitor to Apple’s iPhones. Apple may eventually need to re-examine whether its closed system is the best way to compete.

In the last decade, Apple has excelled at keeping pace with the quickly evolving industry of computers and consumer electronics. Its diversification, collaborative corporate culture, and product evangelism propelled it to heights that could not have been envisioned when Jobs and Wozniak sold their first computer kit in 1976. The company shows no signs of stopping its momentum, while consumers have shown no signs of reducing their admiration for Apple.

RECOMMENDATIONS

For Company

Lowering the cost of products and maintaining the same quality standards. Can form joint – ventures. Knowledge Management. More number of retail stores for easy access. Continuous innovation to expand.

For Others

Do not compromise on price for quality. Choose the products based on individual needs.Be unique and different.

BIBLOGRAPHY

1) http://www.google.com

2) http://www.wikipedia.org/