The Business Case Study: Apple Inc.

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Case Study
Apple Inc. was founded by Steve Jobs, he served as CEO, then chairman until the day before his death on October 5th 2010. In this case study the key events leading to the decline in stock prices and the loss of a leader will be examined.
The History
Apple was set up on April 1st, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne to build, disturb and sell computers. Jobs and Wozniak owed a 45% shake each while Wayne own 10%, which he later sold to Jobs for $800. Today his share would be worth in the region of 3 Billion.
The Apple I was the first product the company brought to market and proved popular. This was followed by the Apple II which was one of the first computer to have a coloured display. The spreadsheet as we know it
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This I believe is the main corporate governance issue that faced apple during their shock price turmoil. I will also look at the role of the CEO as part of a corporation, such issues as Garratt’s one-man rule.
Agency theory assumes that director and manager have the maximisation of shareholder wealth as their main objective. In this case it is clear that the CEO become an agency problem. The main factors that contribute to agency problems are Separation of ownership and control, Managerial goals vs. shareholder goals and Asymmetric information.
Share prices drop as Steve Jobs did not want to step down or let the shareholder know the full information relating to his illness and ability to work. Garratt (1996) cites the one-man rule as being the key symptoms of corporate collapse: Having a person with absolute corporate power may be beneficial in the short-term, but may, in the long-term be disabling for the organisation. This seemed to be the case for Steve Jobs. The Directorial Dilemma states that: “The board must be sensitive to the pressures of short-term, local issues and yet be informed of the broader trends and competition”. Apple should have informed their stakeholders the potential loss of their CEO, damaging their competitive
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This came as shock prices were already dropping due to speculation that Jobs, was once again, was leaving the company for illness reasons. They did take some action to stop this issue arising again:
To deal with the issue of Agency theory, in 2013, Apple asked that executive employees and the board of directors would buy stock in the company. This way, management couldn’t benefit from harm done to shareholders and it intended on bringing shareholders and managers together to agree on the same interests. After Steve Jobs finally step down as CEO, Tim Cook become the front man for Apple and still remains there today.
Apple today have an office in Cork which is one of the region’s biggest employers, it is possible to wonder if this could happen in Ireland today. Could a board of director hide significant company interest from

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