Steve Jobs: Bullet Points on How He Created Shareholder Value

"Return to Profitability": 1997-2011.

Presented, as part of a group of three, in Economics S-1476, Harvard University. Summer 2013.

How did he create shareholder value?

1. Returned from Pixar, created numerous products such as iPod, iPhone, iPad.

• Literally ousted Nokia as the ‘King of Phones’
• Closest competitor was Blackberry but even their concept of using emails and BBM (free messaging) was losing the publics’ interest as these concepts were easily Replicated by Apple (iMessage)).
• Revolutionized  the way phones are being used. Made everything so convenient with just a click on the phone.

      2.   Cons about Jobs

• Very similar characteristics with Lawrence Harding (but Steve gets things done)
• Dictator, no one dared to challenge his opinion (indication of a weak board maybe?)

Exercise: Look at Stock Chart from 1997-2011 and Notice the Below: 

•       Ex. 10,000$ investment in 1997 worth approximately $200,000 in 2011.

•       Shareholder value

•       Discuss stakeholders: thousands more employees hired domestically and thousands abroad (apple criticised for labor practices abroad, but not in the scope of this presentation)

•       Regulators? Apple become largest tax paying company in the world during this time; government benefited.

•       Board? Rubber stamp of approval. Jobs influential and had pull on the board; elected chairman in late 2010.

•       ‘Profitable Dictatorship?’     

                                                         And the Board of Directors? 

Structure of the Board? Most decisions were made by Steve    Jobs because he was so domineering and employees were afraid of getting fired for fear of going against him the structure of the board could almost be as weak as that of Lawrence Harding’s tenure at Braniff

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