From Steve Jobs’ Life: A Messy Company Can Still Work

John Scully Hello WorldA Messy Company Can Still Work:

When Scully joined Apple, he was surprised at the disorder, and bickering between Jobs and the Lisa team over a) why Lisa was a failure, and b) why Macintosh had not been launched in 1983. Scully felt that Apple was ‘like a household where everyone were running to the beach when there was an earthquake only to discover a tsunami was approaching that forced them back into the house.’ (Isaacson Biography). Things weren’t great on the numbers side for Scully’s first year as CEO either. He had to announce at the 1984 shareholders meeting that 1983 was a bad year for Apple. It was. The competitors were entering the market with cheaper products that were not as user-friendly as Apple but still semi-useful machines. The Apple balance sheet still showed major growth but IBM had launched the PC, and there were many lower-priced clones on the market in 1981 onward which were harming Apple’s competitive advantage.

But Macintosh was marketed as “the computer for the rest of us” and would refocus Apples efforts away from their core Apple II & LISA product offerings. Apples future was bright because there were 25 million information based users in offices across America, and their work had not changed much since the industrial revolution. The only desktop product people used was the phone until the personal computer. Apple hoped that their market share would expand with the unveiling of Macintosh….1984 would prove pivotal for Apples future (to be continued). Below is the balance sheet for the January 24th, 1984 Apple Shareholders meeting.  Apple was a chaotic start-up turned revolutionary full fledged company. It was a messy operation from the standpoint of senior management but generally Apple worked.

Apple Rainbow

The Apple Computer, Inc Balance Sheet In 1983            

Current Assets 

Fiscal Year 1983

Cash and Investments

$143,000,000

Receivables – Net

$136,000,000

Inventory

$143,000,000

Other

$47,000,000

Total Current Assets

$469,000,000

Net Fixed Assets

$67,000,000

Other Assets

$21,000,000

Total Assets

$557,000,000

Current Liabilities

$129,000,000

Long-Term Liabilities

$50,000,000

Shareholders’ Equity

$378,000,000

Total Liabilities & Equity

$557,000,000

This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.

 More from Steve Job’s Life by Walter Isaacson
Location Really Does Matter for EntrepeurshipChildhood Shapes Your Thinking
Go Get What You Want, If You Have the CourageEducation Is For Conformists
Assume That You Will Die YoungGo To India
Pranking People Requires Creative ThinkingStarting A Company Is Very Difficult
Meet a Brilliant & Nobel EngineerMeetups Bring Insanely Great Ideas Together
Knowing What You Wanted to DoExclude Relevant Information Where Necessary
Have Discipline Over Body and MindPicking A Name is as Simple As Picking Apples
Crime Does Pay!!??Sharing Ideas Is Fine Up To A Point
Most Good Ideas Have to Be Force Down Peoples ThroatsXerox Parc
Run Your Company Our Of Your Parents HouseMike Markkula’s Marketing Theory Is Built Around Three Areas
MacKenna’s Advertising Style WorkedDon’t Worry About A Business Plan Until You Need Investment in a Serious Venture
Create A Simple Product For HouseholdsYour Product Needs to be a Full Simple Package
Jobs’ Management Style Was “Shit” from ’77 to ’85A Startup Will Become Impersonal With Success
Apple III was a bastard childBeing Abandoned = Ignoring Reality
Good Artists Borrow, Great Artists StealSurround Yourself With “A Players”
Reality Distortion FieldBe At The Nexus of Humanities and Technology
Believe In A Closed System & Product ControlMarket Research Is For Idiots
Motivate With The Big PictureUnhealthy Competition Within A Company Can be Corrosive
The Best & Most Innovative Products Don’t Always WinEras Are Defined by Partnerships & Rivalry – Gates Versus Jobs Round 1
Genius Versus Shit-HeadThe Boardroom Showdown & Emotionality
Advertising Does MatterA Messy Company Can Still Work
A Clean Factory Is Insanely Great But The Product Has To SellBeing Right Isn’t As Important As Winning
Imperfection Is A Moral WrongBringing In An Outside Expert Can Be Costly
The Original Macintosh Had Bad SalesFall From Grace Through Management Incompetence
Finding Similarities Between Yourself & Your Business Partner May Not Be GoodEras Are Defined By Partnerships & Rivalry – Gates Versus Jobs Round 2
Force An Ultimatum To Get Control of a CompanyNever Tell The Allies of Your Opposition That You’re Planning a Coup
Brilliant Failures Help You GrowDesign Should Not Trump Processing
Do Not Disrespect Your Potential Business PartnersGet Real On Your Lean Startup
Get A VC Who Missed Out On A Previous Winning OpportunityAvoid The Problem of Focusing on the Small
Gain Financial Control Against Your Business PartnersRivalry of the Ants & Breaking With Disney
Build A Board That Cannot Operate Independently of the CEODo Not Chase Profits, Chase Value
Do Not Force Other Businesses Into Your Closed SystemHow To Save A Dying Tech Company – Fire the Board Or Resign
Merge Your Venture With A Giant That You Can Take OverTargeting the Education Market Is Not Lucrative
How to Save Dying Tech Company – Return To Your Successful RootsHow to Save a Dying Tech Company – Make Products Not Profit, Fundamentally
Skate Where the Puck’s Going, Not Where It’s BeenThe Loser Now Will Be Soon To Win
The Internet Is Made For MusicBrand Yourself Differently
Don’t Be Afraid to CannibalizeCreate Complimentary Product Offerings Without a Lead Loss Generator
Focus On What People Really Want…1,000 SongsGoogle’s “Don’t Be Evil Mantra” is Bullshit
Get Yourself Into the Cloud & A CastleDon’t Fear Change In Industry, Anticipate It
Create An Inventory Management System & Build a Store That WorksConverge Old Devices Into 1 New Device
Do Not Ignore Medical Diagnoses Make Peace With Your Old Enemies

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