Steve Jobs - The Silicon Valley Pioneer

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Case Details:

Case Code : LDEN018
Case Length : 16 Pages
Period : 1976-2001
Pub Date : 2002
Teaching Note :Not Available
Organization : Apple Computers
Industry : Computers
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Getting thrown out of Apple

When Sculley came to know about Steve's plans, he himself initiated measures to oust Steve from the company. He argued that Steve was hurting the company's image and persuaded the Apple board to throw him out of power. Sculley concluded that, "Apple could run a lot better with Steve out of operations." He added that Steve's intense involvement with Macintosh was having a demoralizing effect on other divisions of the company.

In May 1985, the board dismissed Steve from the post of Vice-President as well as the post of the head Macintosh division. In a meeting with security analysts in July 1985, Sculley announced, "Steve had no role in the operations...

Leadership and Entrepreneurship Case Studies | Case Study in Management, Operations, Strategies, Leadership and Entrepreneurship, Case Studies

Steve's 'Next' Step

In 1985, Steve formed a company named NeXT (Next)13 and planned to come out with the next generation of PCs that would be superior to Apple computers. The very next year, Steve also bought Lucasfilm, a movie studio, for $ 10 million and incorporated Pixar Animation Studios (Refer Exhibit II). Steve wanted to release Next's first computer in spring 1987, but could not meet the deadline...

Resurrecting Apple

In late 1996, Apple's CEO Gil Amelio (Gil) proposed to buy Next and asked Steve to sign a contract to work at Apple for a certain period of time, which Steve did not agree to. At a board meeting, Steve proclaimed that he could not sign the contract because 'he did not want to disappoint anybody at Next'. By rejecting the deal, he proved that Gil wanted the deal more than Steve did. Thanks to his brilliant negotiating skills, Steve was finally appointed 'informal advisor' at Apple, with no contractual commitments. Steve was reportedly an enigma to many at his office as well as people in business circles...


Exhibits I: Apple - Consolidated Statements of Operations
Exhibit II: Pixar Animation Studio-Timeline
Exhibit III: Steve Jobs - Over the Years

13]  The name Next was intentionally kept 'vague' by Steve as he did not have any specific plans except the vague idea that he wanted to create computers for students.


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