Steve Jobs - The Silicon Valley Pioneer
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ICMR HOME | Case Studies Collection
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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Excerpts Contd...
Getting thrown out of Apple
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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...
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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...
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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
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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