Business Strategic Management Executive Summary Essay

Business Strategic Management Executive Summary - Essay Example The inclusion of A. C. Markkula brought in the required funds to the company as he was a retired professional with experience of working at Intel. Steve Jobs, the visionary of the three, dreamt about making a computer that is immensely user – friendly and therefore having considerable success with Apple – I, the company focused on Apple – II. But as IBM entered the market of manufacturing computers, the sales revenue and net profit of Apple Computers took a major hit and Steve Jobs was removed from the operational role. In order to replace Steve Jobs, the company banked upon John Sculley as the new CEO, who had a successful stint with Pepsi. Sculley initiated number of major decisions which included cooperative ventures with arch – rivals IBM. The Macintosh computers manufactured by Apple Computers continued to be the major revenue earner for the company. Sculley also decided to outsource some of its operations so that cost could be curtailed. But the efforts were not enough to ensure profitability of Apple Computers and the company faced 34% gross loss. Sculley was ‘promoted’ to be the Chairman by the board while Spindler replaced him as the CEO in the year 1991. Spindler cancelled many of the projects initiated by his predecessors and focused on capturing the international markets. Also, he attacked cost and curtailed research expenses too. Such a measure proved to be fatal for the company in due course of time and he had to resign with $ 69 million loss in 1996. Spindler was succeeded by a director of the board, George Amelio. Amelio cancelled the project of developing next generation Mac operating system. He tried to bring back the company on premium pricing model and acquired NeXT, a Steve Jobs company. Jobs joined Apple Computers again as an advisor and when in the year of 1997, the market share of Apple Computers reduced from 6% to 3%, Amelio was shown the door and Steve Jobs, the founder was made the interim CEO. Being at the helm,

Impact Of Issuing Debt On Shareholders Essay Example | Topics and Well Written Essays - 4500 words

Impact Of Issuing Debt On Shareholders - Essay Example The internal rate of return of the expansion project is expected to far outperform the company’s hurdle rate. The acquisition of Productos Reunidos is also a positive net present value project. However, empirical evidence suggests that market value of the acquiring firm experiences little if any gain after acquisition, and in some cases even losses. Also, the reasons cited by the management and the merger and acquisition committee for acquisition, namely, diversification and PE magic, are wrong. Hence, I recommend Tyneside Electronics to grow internally by investing in the expansion project. Moreover, there are gains from financing the expansion project by leverage, even in the worst case scenario of 10% increase in revenue, as illustrated in section A and B. Also, if the expected return on shares stays constant, I recommend the firm to adopt a D/E ratio of 1, the optimum capital structure.