Running Head: APPLE
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Leadership and Management Styles of the CEOs at Apple Computers Inc.
Danielle Gooch
CAPS600 – Graduate Project
January 7, 2012
Randall Doll
Southwestern College Professional Studies
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Abstract
Apple Computers Inc. has had several chief executive officers since became incorporated in
1977. The CEOs at Apple have been a wide variety of personalities and leadership and
management styles. Apple has seen many ups and downs over the years. At one point in time
Steve Jobs became the CEO until he stood down on his own accord due to his failing health. The
current CEO at Apple is Tim Cook. Only time will tell whether Cook can fill the shoes of late
Steve Jobs and continue to make Apple a successful business.
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Leadership and Management Styles of the CEOs at Apple Computers Inc.
Apple has had six Chief Operating Officers (COOs) since the company first became
incorporated in 1977 (Brian, 2011). Steve Jobs, co-founder of Apple Computers Inc., was fired
in 1985 for his highly opinionated and visionary approach to leadership. He came back as CEO
in 1997 to rescue the company from dire straits using the same means for which he was earlier
fired (Transformational Leadership @ Apple, 2002). In 2011 Steve Jobs officially stepped down
as Chief Executive Officer (CEO) of Apple Corporation. He was preceded by former COO Tim
Cook (Brian, 2011). The management and leadership styles of the various chief executive
officers will be discussed along with how my professional experiences relate to what I have
researched about Apple.
Apple 1977 to 1985
Apple Computer became incorporated on January 3, 1977. Steve Wozniak, the creator of
Apple I and II, was considered the resident genius at Apple. However, his intentions were never
to create a company, he just wanted to design a computer for himself. He was not challenged
and he hated attending meetings. In 1980 he was involved in a near-fatal plane crash and then
took a two year leave of absence from the company. While this was going on, the extent of
Apple’s issues became apparent; there were too many engineers that were trying to impress one
another with special products that had no commercial viability; Michael Scott laid off 40 people
(Linzmayer, 2004). Mike Markkula and the Apple board were widely criticized during this
period for allowing three different chief executives in a four-year span to preside over
cumulative losses of $1.7 billion. The company’s quixotic nature is its strength and weakness,
and has a lot to do with the personality and passions of co-founder Markkula, who happens to be
the least understood of the three founders (Markoff, 1997).
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Michael Scott, CEO (1977-1981)
Michael Scott, who previously worked at National Semiconductor, was brought on as
CEO o f Apple in 1977 because it was thought that Steve Jobs and Steve Woziak were too
inexperienced for the role. Scott was responsible for the firing of 40 employees. He was quoted
stating that he would quit Apple when being the CEO was no longer fun, but he changed his
mind stating that when it was no longer fun he would fire more people until it was fun again
(Brian, 2011).
Mike Markkula, CEO (1981-1983)
Mike Markkula was an investor in Apple; he provided $250 thousand to the company.
He became the third employee at the company. During his short tenure as CEO, he helped
market the first two Apple computers, providing the company with credit and venture capital.
Steve Wozniak, co-founder of Apple, credits Markkula for the success of Apple more than
himself. Markkula sided with other Apple execs in having Steve Jobs ousted from the company
in 1985 (Brian, 2011). Mike Markkula was responsible for writing Apple’s first business plan in
1977. Since that time he has guided the company through many crises. He was a soft-spoken
man who enjoyed studying plants on his 50-acre estate in Woodside. Markkula was not shy
about making management decisions. He stepped down as the company president in 1983 to
make room for John Sculley. His vote was the swing vote that sent Apple founder, Steve Jobs
packing in 1985 after a highly publicized feud with Sculley. Forrester Research’s Colony
questioned Markkula’s management, stating that they wondered whether he was qualified to
make big decisions about their stock. Colony wondered what made Markkula omniscient
(Murphy, 1995). Mike Markkula was really more of an engineer than an executive. This may
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help explain some of the management turmoil that Apple has experienced over the years
(Markoff, 1997).
Apple 1985 to 1996
In the article titled Apple Leadership: Chain of Fools written in 1996 it states that the
media was trying to predict Apple’s imminent implosion, but the article claimed that Apple was
a strong business with tremendous assets and that the Mac was not going to die anytime soon.
The author, Adrian Mello, states that despite Apple’s strength, they were in need of making
fundamental changes in the way they did business. Mello states that Apple’s problems lie within
the epic levels of incompetence and indecision displayed by a core of inept leadership and selfserving managers. Apple’s management was showing that it was willing to doge, rather than
solve crucial issues. Mello suggested that Apple develop leadership and discipline; stating that it
must play hard in business to make money, and learn how and when to stay the course with
developing technologies. Apple alienated its potential strategic partners by insisting on having
the markets to themselves; they needed to learn to work with others (Mello, 1996).
John Sculley, CEO (1983-1993)
John Sculley, a former PepsiCo CEO, was brought to Apple for his marketing skills. He
is known for his arguments with Steve Jobs, who began to lose control of his teams in 1985,
which later led to him being stripped of all his operational responsibilities. During his tenure as
CEO, Apple incurred high engineering, manufacturing, and marketing costs, which led to market
confusion. Condé Nast Portfolio ranked Sculley as the 14th worst American CEO of all time
(Brian, 2011). Although Sculley was paid a $1 million annual compensation, a $1 million
signing bonus, and $1 million toward his Woodside home and lucrative stock options, money
was not his primary motivation. Sculley wrote a book titled Odyssey: Pepsi to Apple. In the
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book Sculley talks about the errors that he dwells that have taught him lessons including letting
Steve Jobs attain too much power in the company, misperceiving Apple as a consumer products
company, and inadequate monitoring of inventories and gross margins. During Apple’s traumas,
Sculley was reduced to tears several times. His personal values and outlooks changed from
business as war to business as an art. He was sometimes portrayed as a macho cowboy, but in
his book he portrays himself as a vulnerable chief executive officer who admits to some serious
errors of judgment in running the company, almost causing it to unravel (Clark, 1987).
Michael Spindler, CEO (1993-1996)
Michael Spindler was part of Apple’s European operations where he worked his way up
become Apple Europe’s President, replacing John Sculley as CEO in 1993. He was blamed for
the failure of the Newton and Copland operating system. He also led takeover discussions with
IBM, Sun, and Philips (Brian, 2011). After working under Sculley for three years, Spindler
replaced him as chief executive. His first major task after becoming CEO was to handle the
layoffs among Apples’ work force of 15,000 at the time. He was also force to shut down some
of the expensive technology ventures that Apple had started under Sculley. Spindler did not
have any emotional baggage and he had all of the intellectual firepower needed to pull the plugs
on programs that were not going anywhere. He was nicknamed “The Diesel” because he was
thought to be slow to get going, but once he built up steam there was no stopping him. He
earned his reputation for being tough, focused and unafraid of making difficult decisions
(Lazzareschi, 1993).
Apple 1997 to 2011
A keynote speaker at the Macworld Expo stated that the board members were guilty of
shortsightedness and poor decisions. Some said that Apple was a horribly run firm in the most
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competitive industry in the world and that they have made one mistake after another. In the book
titled Apple: The Inside Story of Intrigue, Egomania and Business Blunders, author Jim Carlton
writes that Apple is to blame for many of the problems it now faces. He blames Apple’s board
of directors and CEOs for making a superior computing product and platform while
mismanaging its development and marketing. He stated that there was a lack of leadership.
Carlton goes on to say that Apple’s board was dominated by venture capitalists interested in
short-term profit at the expense of the long-term health and development of the organization. He
believes that Apple’s corporate culture, which consists of a mix of laid-back California cool and
the zealous, overachieving mind set of those who believe they are changing the world, has been
the main factor in the failure of the CEOs at Apple. Carlton points out that Apple’s senior
executives have often been runaway successes at companies such as Pepsi, American Express,
and National Semiconductor prior to coming to work for Apple. These same executives were
unable to work their magic while at Apple (Akin, 1998).
Gil Amelio, CEO (1996-1997)
Gill Amelio, formerly the CEO of National Semiconductor, joined Apple in 1996. At the
time, he was already on the company’s Board of Directors. Amelio helps to overturn Apple’s
low quality products. Unfortunately, within a year the company’s stock slumped to a 12 year
low and Ameilo was fired (Brian, 2011). Gill Amelio’s term at Apple was short lived. He
stepped down as Apple’s chief executive in 1997, leaving both himself and the company looking
like miserable failures. Apple needed a dynamic leader and when Amelio was hired in February
1996 he was often described as a turnaround artist. Unfortunately, Apple did not see that side of
him. Amelio’s departure was immediate; a decision that was reached mutually between Amelio
and the board of directors. Amelio stated that he did what he set out to do at Apple; he cut costs
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and stabilized the company. He stepped aside to let a marketing whiz come in and take Apple
toward growth. Amelio did a lot wrong in his tenure. He made necessary moves; he laid of
people and cut costs. However, he lacked rapport with employees, causing morale to sink. He
was generally amiable; however he increasingly retreated to his office. Amelio never shed his
corporate look despite Apple’s anti-establishment culture (Maney & Schmidt, 1997).
Steve Jobs, CEO (1997-2011)
Steve Jobs was 21 when Apple was founded. He had a natural gift for negotiating,
recognizing the commercial potential of products, and understating the importance of branding
and image (Linzmayer, 2004). Steve Jobs was a visionary and a genius and he had the uncanny
ability to capture the essence and value of other people’s creations. Jobs’ leadership style is
described as heroic leader in which he is the chief executive who seems larger than life. Jobs’
will and personality dominate the company; he took power and commanded people to follow
him. Jobs’ heroic leadership style is a weakness for the organization because people usually
cannot sustain themselves much beyond that person’s leadership cycle. People struggle to
maintain high performance once that leader is gone and Apple experienced this when Jobs was
forced out of the company in 1985 (Schulz, 2011).
Steve Jobs was named as the interim CEO of Apple in 1997. He wanted to make the
company profitable again. Jobs cut numerous projects and many feared losing their jobs. He
officially took over as CEO in 2000. He was responsible for the iPod, iTunes, and the iPhone.
Jobs was unsatisfied, he then helped create the iPad tablet and began improving the Mac brand of
computers to make them sleeker, sexier, and smaller. He announced his retirement on August
24, 2011 due to his belief that he was unable to fulfill the role that was expected of him (Brian,
2011). What most people did not realize about Steve Jobs is that he cared as much about how
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Apple operated and how it motivated people as he did about creating great products. Jobs coined
the phrase “Pirates! Not the Navy” as a way to tell people to think differently. During the days
of developing the Macintosh, the phrase became a four-word mission statement (Former Apple
Insider Shares Management Lessons from Steve Jobs, 2012).
Apple 2011 to Now
Apple’s continued dominance in the industry has been shaped by the leadership of Steve
Jobs. Apple bundles everything from hardware to software to online services making them a
vertically integrated company. This structure is what allows Apple to control the quality of their
customers’ experience. The strength in this strategy is that the company is not exposed to market
pressures directly. Their products are sold as a part of a whole, rather than separately. Rather
than market pressures, Apple is exposed to the pressures of internal policies and agendas.
Individuals can be asked to do things that are counterintuitive and not profitable in the market
alone, but that are aligned to compliment the other pieces of the whole. In this case, it takes a
strong leader to keep the internal agendas in check (Leader of the pack? , 2010).
Tim Cook, CEO (2011-Present)
Tim Cook is known for being calm, collected, and a quiet man, which is very unlike his
predecessor. His work style is very intensive; he is often described as a “workaholic.” Cook has
had to step in several times as CEO while Jobs was taking medical leave (Brian, 2011). Tim
Cook is a mild-mannered son of an Alabama shipyard worker. In his first year as CEO at Apple
he racked up record earnings and mounting piles of cash for Apple by way of supplying the
world with game-changing technologies that continue to surprise and delight. Cook’s
management style whispers in comparison to Jobs’ style. At lot of people thought that the magic
at Apple would disappear when Jobs left, but that was not the case. It is believed that Cook will
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take Apple to even greater heights with his trademark mastery of supply-chain efficiency in
which he was hired for 14 years prior to run the manufacturing side of the business. Cook’s
operational expertise is exactly what Apple needs now (May, 2012).
Future Leadership Challenges (Week 6)
Steve Jobs lost his battle to pancreatic cancer in 2012. It is now the responsibility and
challenge of CEO Tim Cook to figure out how to manufacture and move more and more Apple
products to an enormous number of customers throughout the world. Thankfully, due to Apple’s
vaunted product pipeline, it may be five years before it becomes clear whether or not Apple can
continue to innovate under Cook’s leadership (May, 2012). Apple has been making its way into
the news lately, and not on a good note. It has been mentioned by KMOV, News Channel 4, that
their stock is dropping in value and that iPhone users pay, on average, twice as much as Android
users for their data plans. The challenge for Tim Cook and Apple in the future is to continue to
be profitable and to make their pricing competitive for their consumers.
Apple Leadership vs. My Experience
Over the years, Apple has been on a hypothetical roller-coaster of changes in leadership.
In my professional experience I can say that my experience has been similar. In the Air Force,
your leadership will change about every two years, so it seems like when you just start getting
used to one leader, in comes another one. I have just learned to adapt and roll with the punches.
As the secretary to the commander, I work very closely to the boss and it is vital that I have a
good working relationship with him. Sometimes personalities will clash, but that does not mean
that I cannot work with someone, we just have to find a common ground to work on together. It
is my job to keep him on track with tasks and calendar events, so that he can be successful at
what he does.
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Impact on My Leadership Style
From the research that I conducted for this project I learned that different leadership and
management styles have a large impact on organizations and can drive them to be successful or
to fail. The important thing is to know your strengths and weaknesses and make improvements
where they are needed. As long as leaders are willing to accept and change what they do not do
well, they should be able to be successful as leaders. Not everyone is cut out to be a chief
executive officer, but that does not make them ineffective people. Organizations need to hire
their leaders based on their credentials, strengths, qualifications, and leadership style. Leaders
also need to be able to relate to their subordinates, people will respond better to leaders that the
feel understand where they are coming from.
Conclusion
Apple has been through several CEOs since it was started in 1977. It has also seen a lot
of ups and downs over the years. Regardless, they have managed to be successful overall.
Organizations need to work together like well-oiled machines. There needs to be a strong
working relationship between leadership and subordinates with common goals. Tim Cook has
big shoes to fill and only time will tell if he can be successful and helping Apple to continue to
grow and thrive.
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References
Akin, D. (1998). Leadership blamed for Apple's hard times. Sault Star , 1-3.
Brian, M. (2011, August 2011). A Look at Apple's CEOs from 1977 to 2011. Retrieved January
17, 2013, from The Next Web: http://thenextweb.com/apple/2011/08/25/a-look-at-applesceos-from-1977-to-2011/
Clark, D. (1987). Management/Another Chapter in Sculley's Rise to Top/Apple Chairman Tells
It All. San Francisco Chronicle , 1-3.
Former Apple Insider Shares Management Lessons from Steve Jobs. (2012). Business Wire , 1-2.
Lazzareschi, C. (1993). Handpicked for Apple: Tough-minded Spindler takes over in tough
times. Los Angeles Times , 1-2.
Leader of the pack? . (2010). The Washington Post , 1-2.
Linzmayer, O. (2004). Apple Confidential 2.0. San Francisco: No Starch Press, Inc.
Maney, K., & Schmidt, J. (1997). Exit Amelio: Turnaround artist unable to work magic at Apple.
USA Today , 1-3.
Markoff, J. (1997). Co-founder Markkula adds insights on Apple woes. Austin American
Statesman , 1-3.
May, P. (2012). Tim Cook ends first year as Apple's CEO on a high note. Oakland Tribune , 1-3.
Mello, A. (1996). Apple Leadership: Chain of Fools. Macworld , 27-28.
Murphy, T. (1995). Apple's chairman sided with CEO, whom he helped promote. Orange
County Register , 1-2.
Schulz, W. (2011, December 26). Leadership for Long-Term Success. Retrieved January 14,
2013, from American Management Association:
http://www.amanet.org/training/articles/Leadership-for-Long-Term-Success.aspx
Transformational Leadership @ Apple. (2002). Strategic Direction , 5-7.
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