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Apple and the Dismissal of Steve Jobs

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APPLE AND THE DISMISSAL OF JOBS

JOHN SCULLEY APPOINTED CEO OF
APPLE -1983
John Sculley, a marketing expert, and as
President of Pepsi Co, known for the introduction of Pepsi Challenge.
"Do you want to spend the rest of your life selling sugared water or do you want a chance to change the world?“

DYNAMIC DUO - JOBS AND SCULLEY
BUSINESS WEEK OCT 1983

Sculley used his marketing experience to help keep the aging Apple II generating much-needed cash.

Helped Jobs launch the Mac with the most admired consumer marketing campaign of its time.

THE DOWNFALL

Continuing drop in Macintosh sales
Jobs wanted to reduce the price of MAC and spend more money on advertising
He wanted to divert the money from Apple 2 to
Macintosh.
Sculley opposed the idea, felt that world was not ready for such a computer yet.

REASONS FOR FIRING JOBS
The board was not ready to take the risk of losing out on profits by lowering the price of the computer, thus safeguarding the interests of shareholders.
Even after Apple finally launched the Mac, for example, the Apple II drove most of the company's sales. But Jobs could not hide his disgust for the product or the people who worked on it.
His ability to create innovative products and but at the same time not striking a balance to completely think of its logistics and marketing it at attractive prices
His lack of ability to work in a team and his ever changing ideas without focus.

ANALYSIS
The decision to remove him in the short term interest of the company (getting the bottom line right) led to huge losses later on, until he was hired back in 1997.
When Jobs got detached from his responsibilities, he did not have anything to do more with the company, because of which he quit later on.

The board was not ready to take the risk of losing out on profits by lowering the price of the computer,…...

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