Courtesy SCRP News
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Critics Question Apple Succession Plans
Apple Inc. now has the rare chance to conduct a test-run of its succession plans for the day when Chief Executive Steve Jobs no longer can run the company. But so far, shareholders and corporate succession experts don’t care for what’s happening.
“Basically, Apple has done everything wrong from a succession standpoint,” said Marshall Goldsmith, who teaches at Dartmouth College’s Tuck School and is the author of the best-selling books on corporate succession plans.
Indeed, shareholders responded negatively so far to whatever plans Apple has in place. Apple shares fell more than 9% at one point after hours trading Wednesday, but later recovered some of their losses and were down about 7%. Nonetheless, it’s likely Apple shares will dip below $79.13 Thursday, setting a 52-week low.
Jobs’ role puts Apple in a difficult situation to begin with when it comes to choosing his successor. To many people, Apple is Steve Jobs. His attention to detail is legendary; and meanwhile, Jobs is also an elite product developer whose name is on the patents for most of Apple’s key products, including most notably its iPhone and iPhone 3G smart phones.
But Apple is doing a bad job on another key element of a successful succession – assuring shareholders that a Job-less Apple has the executives of his caliber to continue, despite the fact that the company is frequently praised for its deep bench by equity analysts.
Can Apple thrive and grow without the visions of its leader? This question may have to be answered sooner rather than later.
Found by Jay on Cage Match
All share prices should be capped at $20.
#1,
They should sell of their assets and give the money back to share holders.
Fanboys were seen weeping.
De Gaul once said graveyards are full of indispensable men. No quotation marks because I’m too lazy to look up the reference. Historically speaking, following a strong leader is difficult. You don’t step into Jobs shoes, you have to have a new pair made for you. That can’t really be done until it’s clear Jobs will not return. Apple can coast a year on current product cycles. APPL may be a good buy in a few days, particularly if several successful products are launched. In six months it may a different story.
All jokes aside… And John, I’m sure you are already thinking this and surely you could never publicly state this.
But just maybe this is a ploy by Jobs/Apple to astound the Apple community and use the comeback of Jobs as a podium and once again introduce a new product or a new phase for the Apple brand.
Before you throw them rocks, just imagine the reaction when Apple holds a press conference and Jobs walks out and announces, “I’m back! And healthy as ever! Now let me show/tell you what I’ve been thinking about the past few months. Apple is on the brink of a new technology… yada yada yada… I give you the meBook!”.
Every Apple fanboy will just go nuts 10x over and will stand as strong as ever (cape blowing in wind etc).
Though, if Jobs is indeed suffering, then it is indeed a sad time for many of us. Fanboy or not.
When I look at Jobs, why am I instantly reminded of Rock Hudson?
I hope you’re right, Jojo.
Dennis, you’re a tool for even writing that. Shame on you. Think about that all day.
All this is an example of the media making something out of nothing. This is the equivalent of the media producing pyramid scheme. The difference is investors are also bought in.
Jobs charisma is merely foreshadowing the real talent inside of Apple. While Jobs clearly adds to the buzz in their products, equating Apple to Jobs is mere hysteria feeding on itself.
The only ones thinking this will affect Apple are journalists and ANALysts. They are creating a false premise to manipulate the company’s stock. This company isn’t run by ONE man. And Apple and especially EGOMANIAC JOBS has done a horrible job in dispelling this myth.
Just to be cold and calculating.
This is a very good time to get ready to buy Apple stock.
Yup, Steve may be on his way out, and all the above publicity on how Apple will stumble and falter will drive the stock to an unrealistic low.
Yes, Apple will be taken back and underperform for a while, but don’t think that they won’t rebound, at least temporally.
Buy when Jobs is out of the company and there is panic, sell right when the company apparently has it’s act together.
You will make a fortune.
Whenever you an ego like Jobs or Ellison running a company there is no real succession plan. It wasn’t called the ME generation for nothing…
Apple’s secret society of business has come back to haunt them. If they were not a public company who would care. But they are not.
It’s no secret that Apple’s success has directly been affected by Steve Jobs. His iconic status with Apple Fans has been called cult like. If you follow what happens to cults when their leader is gone. Well, it does not look good for Apple.
OMG, Apple stock is down $3 from $85!!!!! This is certainly the end of Apple!
…
Seems like the guy who wrote that article doesn’t know anything about the company and its stockholders. Maybe it was John?
Jobs stopped being essential to the company after the restructuring and the iPod boom.
#1 You apparently don’t hold any BRK.A.
http://finance.yahoo.com/q?s=BRK-A
Wow! Talk about a spread!
If I bought only one share of Berkshire Hathaway at it’s year low and sold at it’s year high, I would have earned $72,900!
Ah_Yea but….
The year high preceded the year low. You would’ve had to short one share.
I would not have slept too well.
Steve Jobs, meanwhile, will be putting his feet up today as he begins a leave of absence until June on health grounds. The Apple boss sent an e-mail to staff last night, explaining: “During the past week I have learned that my health-related issues are more complex than I originally thought… to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June.”
Wow.
I always thought apple was full of creative people. Where’d they go? Did they all retire? Is jobs really THAT good that he’s irreplaceable? I find that hard to believe, You just need to replace him with another geek not a salesman, geeks understand the product. That’s why Gates pulled WinME and Balmer wouldn’t pull Vista.
anyone who’s surprised there was a sudden dip in Apple shares doesn’t understand the market, which is driven often by crisis psychology. It’s not like this hasn’t happened to other companies before. Take a look at what happened to GE stock when Jack Welch stepped down.
run along now, nothing to see here.
Shame on me for bringing up the guys Health, which is what this issue is about?
Shame on me? Really?
Simply for stating he doesn’t look well, and no information is being released, similar to what happened in the case of Mr. Hudson. He denied he was ill, and allowed the world to watch him shrink away.
Okay. Sorry for being a realist.