3/4/2011

Advanced Management & Leadership Project

Team Work
Ahmed Adel Kamel Ahemed Galal Ahmwed Al-Refaie Haitham M.Farid Medhat A.M.Ibrahim
Supervised ; Dr. Hisham Rafik

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Inside Steves Pads

Agenda
Whos Steve Jobs? Early Apple Beginning of Success The Fall of Steve Jobs Back to Apple Lets Think !!! A true visionary The Digital Hub Strategy 5 down, 95 to go Unexpected SUCCESS Its the time of iPhone Steve Jobs Multi-Style Leadership Behavior Conclusion

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Whos Steve Jobs ?

Full name: Steven Paul Jobs Birthdate: 24 February 1955 Birth location: San Francisco, California Social background: Lower middle-class. Father was fixing cars for a living. Education: High-school certificate. Dropped out of Reed College after one semester. Occupations: Chairman & CEO at Apple Inc. + Director at The Walt Disney Company

Early Apple
Apple's early days
The start of Apple I Computer. -Steve and Woz had bought the other co-founder Ron Wayne out for $800, and incorporated the company on April 1, 1976.

Apple ll - They started working on an improved design, the future Apple II. The Apple II was based on the Apple Is design, but in many ways it was a huge breakthrough.

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Early Apple
After Apple ll
After the Apple II was finished, Steve went looking for investors. He talked to several venture capitalists, who were already legions in the Valley. The first to show up was Don Valentine. He turned Steve and Woz down, but he did give them a hand by passing them the name of another potential investor, Mike Markkula. Mike was a former Intel employee who had made millions and retired early. He was 34 when he met with Woz and Steve, and he bought into their vision. He was also quite aware of the potential returns on his investment.

Early Apple
After Apple ll

Were going to be a Fortune 500 company in two years. This is the start of an industry. It happens once a decade. Mike Markkula to Steve and Woz

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Beginning of SUCCESS
In many ways, the Apple II was both the start and the symbol of the personal computer revolution of the early 1980s. Although there were many competing personal computers on the market such as the Commodore PET or Radio Schacks TRS-80 the Apple II clearly set itself apart very early on, and soon embodied the personal computer in the public consciousness. It was all over the media, and its sales skyrocketed throughout 1978, 1979 and 1980. But probably the most important push toward the Apple IIs success was not from Apple. It was a piece of software called VisiCalc the first spreadsheet ever brought to market. VisiCalc worked only on the Apple II, and it was a revolution in itself. They rushed out to computer stores and bought Apple IIs en masse, making Apple one of the most profitable companies of its day. Only four years after it was started in a garage, the company was well on its way to fulfill Mike Markkulas vision of belonging to the Fortune 500 elite of corporate America.

Beginning of SUCCESS Preparing to the future

Apple Computer was growing at an incredibly fast rate. The numbers were mind-blowing: from 2,500 Apple IIs sold in 1977, 8,000 were sold in 1978, and up to 35,000 in 1979. Remember there was no market for personal computers before! The company earned $47 million in revenues in fiscal year 1979, making Steve Jobs a millionaire on paper (he owned $7 million worth of private stock). The companys board of directors began to discuss taking Apple public.

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Beginning of SUCCESS The biggest IPO since Ford

In 1980, Apple Computer was preparing to go public. This move had several major implications for Steve Jobs, both professionally and personally. The Apple III, which came out in the spring of 1980, had turned out a disaster on the marketplace Apple Computer was re-organized into three new departments: Accessories, Professional Office Systems and Personal Computer Systems (Apple II and Apple III). Steve expected to head the POS division, but the board chose the milder and more experienced John Couch. Steve was named chairman of the board instead.

Beginning of SUCCESS The biggest IPO since Ford

This choice was mostly a public relations scheme in anticipation of the IPO. The company started advertising in the mass media, notably the Wall Street Journal, spreading the legend of the technical genius Steve Wozniak, and his friend marketing genius and visionary Steve Jobs starting a revolution from their garage. There were full-page advertisements with pictures of Steve Jobs and the Apple II, in which he was quoted as saying that the personal computer was a new kind of bicycle a bicycle for the mind.

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Beginning of SUCCESS The biggest IPO since Ford

Steves personality was transformed during that period. He was increasingly recognized as a national icon, a symbol for the countrys new entrepreneurial wave. He was starting to realize his dream of changing the world. Finally, on December 12 1980, Apple went public. Even though the country was in the middle of a recession, the operation was a huge success beyond anyones expectations. It was the biggest public offering in American history since the Ford Motor Company in 1956! After the IPO, Steve Jobs was worth $217.5 million, $210 million more than the day before.

The fall of Steve Jobs ..

On September 16, 1985, Steve Jobs left Apple. He was having conflicts with CEO John Sculley, whom Steve poached from Pepsi with: 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? Steve Jobs headed the Macintosh team with big ideas and big emotions, but Apple was going in a different direction under the control of a sugar water salesman. Eventually Steve Jobs left Apple. After Steve Jobs resigned from Apple, he founded NeXT Inc, and bought the financially failing computer animation studio Pixar from George Lucas.

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Back to Apple

After quite an odyssey running two companies, Steve Jobs returned to Apple on the very same date he left, twelve's year later. Apple officially announced on September 16, 1997 that Steve Jobs would serve again as interim CEO.

Lets Think !!!

Where we are standing Now?

Can we continue to stay here? IF No .. Where we should go?

How we can go there?

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The iCEO Speech

A true visionary
First, after a little over three years of managing Apple, he declared he had accepted his de facto situation and become the companys full-time CEO. Remember that he was only interim CEO up to this point, not wanting to upset either Pixars or Apples shareholders by being simultaneously CEO of two public companies. When the crowd heard the news, everybody stood up and cheered at their beloved leader (see it in the Movie Theater). It was obvious the Apple community was grateful to Steve for saving their favorite company.

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The Digital Hub strategy

Apples so-called Digital Hub strategy also emerged in 2000, although it was only disclosed a year later at Macworld San Francisco 2001

The Digital Hub strategy was a take on the future of personal computing that went against a common belief that had developed toward the end of the 1990s. Many analysts were so enthusiastic about the success of the Internet that they were convinced the personal computer was soon to disappear. It would evolve into a mere terminal whose only purpose would be to access all kinds of content on the Web. The consensus was that the current state of the PC was a dull, boring box, and that any innovation had stopped in the industry.

The Digital Hub strategy

Steve Jobs and Apple thought differently. They were among the very few that professed quite the opposite: the PC had a very exciting future. As they put it, it had evolved throughout the years from the age of productivity, in the 1980s, where people used it for spreadsheets and databases; to the age of networking, in the 1990s, where it connected to the Internet; and it was now, in the early 2000s, entering its third age: that of the digital lifestyle. Consumers were increasingly starting to use all kinds of digital devices: digital cameras, camcorders, music players, PDAs... But these devices didnt make sense without a computer. The personal computer was going to become the center or digital hub of this new digital lifestyle, making all its pieces music, photos, movies, contacts, data come together.

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5 down, 95 to go
The digital hub strategy itself was just one part of Steves greater plan to finally gain market share in the PC market. Since he had returned to Apple, the Cupertino company was stuck at around 5% of the overall PC market, even though most industry analysts acknowledged the superiority of its operating system, and the innovations in its hardware. Yet the riskiest strategic move Apple did to seduce Windows users was to get into the retailing business.

But Steves vision was different. He understood that Windows users wouldnt even consider Apple unless they would actually see how Macs worked and could help them run their digital lives effortlessly. He envisioned lifestyle stores that would showcase Apples products working with digital devices, that people could pick up and test drive on the spot. The stores would be in very expensive locations, in popular malls or in the center of shopping districts.

Unexpected SUCCESS
As Steve often pointed out, only Apple could make the iPod. The reason was, there was simply no other company out there that still knew how to make both great hardware and great software. In the computer business, there were PC manufacturers on one side, and software developers on the other. As for the consumer electronics business, they could never come up with advanced software such as iTunes, which made the iPod experience so effortless. What had always been designated as Apples greatest flaw turned out to be their greatest strength in the emerging digital consumer electronics market. Steve saw that unique opportunity and he grabbed it.

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Its the time of iPhone ..

Since you are such well-informed readers, you probably already know that Apples biggest move outside its computer and music businesses was announced at Macworld in January 2007: it is the iPhone. Steve told his audience they would making some history together. He knew iPhone would be one of the most important product in Apples history, one that would set its destiny for decades to come. This little box less than half an inch thick was the ultimate digital pocket device, a computer/iPod/phone that allowed its owner to make calls, take photos, handle contacts and email, browse the Web, listen to music and watch movies in a powerful yet incredibly easy fashion that was unmatched by any of its predecessors.

iPhone is five years ahead of what everybody else has got. If we didnt do one more thing, wed be set for five years! Steve Jobs, Newsweek interview,
January 2007

And Now . !!!!

Lets evaluate Leadership Behavior of Steve Jobs based on his Attitudes in Apple .

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Steve Jobs Multi-Style Leadership Behavior

Steve Jobs Charisma: Steve Jobs is famed for his ability to give speeches and captivate the audience attention. He is able to captivate his employees and audience with the ability of an evangelist. In this respect we can observe that he posses the charismatic abilities that Durbin demands by communicating his ideas using metaphors and analogies and storytelling. His charisma enables him to whip up the enthusiasm of his employees (job involvement) to achieve more by doing seemingly impossible tasks, and also convince customers to buy Apple products.

All-time favorites Speeches

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Steve Jobs Multi-Style Leadership Behavior

Steve Jobs Personality: He says, for instance: My job is to not be easy on people. My job is to make them better. My job is to pull things together from different parts of the company and clear the ways and get the resources for the key projects. And to take these great people we have and to push them and make them even better, coming up with more aggressive visions of how it could be. In conclusion, we can say he is a visionary type who communicates his visions well in this story telling fashion. This vision, and the way that he can communicate it is the main attribute that makes Jobs being perceived as Charismatic.

Steve Jobs Multi-Style Leadership Behavior

Steve Jobs Leadership: Because of his quest for perfection, Jobs has domineering presence which makes some of the employees fear him. This would let us assume that his consideration level is rather low and his initiating structure level appears rather high, as we saw in the former paragraph on charisma, when we saw him saying My job is to not be easy on people. My job is to make them better. My job is to pull things together from different parts of the company and clear the ways and get the resources for the key projects. However, in his later years, he shows more warmth and less vindictiveness towards his employees. In fact, a current rating of approval by his employees shows Jobs to get a 90% approval rating.

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Steve Jobs Multi-Style Leadership Behavior

Entrepreneurial Leader

Transformational

leader

Power Motives Leader

Steve Jobs Multi-Style Leadership Behavior

Entrepereneurial Leadership: At the same time Jobs is being described as entrepreneurial: Jobs may be a multibillionaire, but that hasnt cut into his work ethic. He brings an entrepreneurs energy to tasks many CEOs would see as beneath them. His continued entrepreneurial spirit is also shown by the fact, that he repeatedly introduced products to the world that revolutionize the entertainment industry, and the way entertainment media is distributed (e.g.: the iPhone and iPod as media devices, and iTunes as distribution channel).

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Steve Jobs Multi-Style Leadership Behavior

Transformational leader: He has all the necessary attributes to be considered one, based on some requirements that Dublin mentions: he leads by example, he practices empowerment, he has a vision and as mentioned he can be perceived as charismatic. Power Motives Leadership: We may leave the description of his motives to himself, by citing his words: Your time is limited, so dont waste it living someone elses life. Dont be trapped by dogma which is living with the results of other peoples thinking. Dont let the noise of others opinions drown out your own inner voice; and the most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary

Conclusion
Interestingly, in general Jobs personality traits would be characterized as the traits of an effective leader. He has charisma, self-confidence and passion for work overshadow all his negative characteristics thus making him one of most successful CEOs of the decade.

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Thanks for your Attention .

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