Examining The Heart of A Multinational Company
Apple Inc. previously known as Apple Computer Inc. was founded in 1976. The American Multinational Corporation is known for dominating the technology industry with market savvy products. Apple’s success is attributed to the company’s ability to design and produce products with highly valued customer benefits and unique benefits for which customers pay premium prices. Although the company has a large presence in various segments of the technology market their focus is on four major products. Mac computers, iPod music players, iPhones, and iPads are primary products produced by the company. Apple also designs, manufacturers, and markets operating systems, developer tools, networking solutions, and database software.
Historically, Apple has focused its efforts in the United States and Europe. One major contributor to the company’s success was the decision to become a multinational organization. Presently, North American sales account for half of Apple’s revenue. Twenty-five percent of sales are earned in Europe, fifteen percent in Japan, seven percent in Asia and Pacific regions, and the remaining five percent of sales are from the rest of the world. Apple, a now multinational billion dollar company has come a long way from being the company founded with $1300. In 1980, Apple became publicly traded. On the day Apple went public their stock rose 32% making approximately 40 employees instant millionaires. Not only did the two found Steve Jobs and Markkula become instant millionaires that day, but the million dollar salaries equated to roughly a 220,700% return on investment. The decision to go public was based on several advantageous premises that would all lead to success by raising awareness and capital. The Apple Inc. management team believed that going public would build awareness for the company, offer prestige, and the company would benefit from the free publicity. In addition, going public was certain to raise funds and capital for the company to invest in future products, expand, do research, pay off debt, and make acquisitions. In May of 1983, Apple entered Fortune 500 ranking #411 after five years of operation. This titled Apple as the fasted growing company in the history of the United States. Several years later, in August of 1998, Apple announced 150,000 preorders for the make and their stock went over $40 per share which was their highest stock price in over three years. These are just some of the events in the history of the company that had major impacts on the company’s stock price and financial status.
The billion dollar multinational company has not always been a technology giant as the company is no stranger to decreasing stock prices, decreasing customer and shareholder loyalty, and decreasing revenue and profits. Bad business decisions, failed products, and poor management once steered the company in the direction of bankruptcy. The crisis began with the launch of Apple’s PowerBooks 5300. The 5300 units were poorly designed and shipped to customers dead on arrival. Aside from lacking function ability, there were issues with the batteries bursting into flames. After several failed attempts to cost effectively get the line launched, Apple recalled the entire line. Shorty after the PowerBooks 5300 crisis, Michael Spindlier, the CEO of Apple, licensed the MacOS to 3rd party hardware vendors who created “Mac Clones.” The clones were far less expensive than the Macs and as a result Apple lost a large sector of the market share in laptop computers and suffered a damaged reputation. The severe financial crisis worried Mac users and shareholders were rapidly losing faith in the company. As a result of the poor business decisions that almost bankrupted the company, a new CEO was appointed to give the company better guidance. The new CEO, Gil Amelio, was aggressive in his attempts to change the company’s current...