Going Public In The Stock Market Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 3046 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Going public is a term frequently used in the business world. This term can be defined as, the transition of a privately held company to offering its first group of stocks for sale on a common market. (Web definitions). Don’t waste time! Our writers will create an original "Going Public In The Stock Market Finance Essay" essay for you Create order It is important for companies to make decisions that would be beneficial to them. By doing so, they can acquire the necessary monies and resources to accomplish success. Business owners should consider a number of factors prior to going into operations. One of the main factors is to decide whether they should remain private or go public. Both start up and established businesses should consider going public. It will be beneficial for an established business go public because this will increase its profitability, sales and revenue. The start-up business can use this opportunity in order to demonstrate its capability to eventually accomplish future success. According to the video viewed on angel, going public, Continental Circuits can be used as an example of a company that went public. However, they faced many difficulties which included competition. Therefore, they needed enhance their successes. This was a company which suffered because of disagreement among management. This paper will aim to outline the criteria and steps required for a company to become a publically traded firm. It will also identify the pros and cons of becoming a public firm. In addition, the major and minor markets around the world will be identified and discussed in detail. Lastly, it will identify the Caribbean companies that can enter the public market and the markets which serve as the best option. There are three main alternatives presented for a company who will wish to sell stocks to the market. This paper will outline all these alternatives and steps involved. The three alternatives are, a rights offering, private offering and public offering. However, this paper will place emphasis on the public offering. An Initial Public Offering could be defined as a corporations first offer to sell stocks (Wordnetweb). Going public would involve a number of steps, however, firstly, a team is selected whenever a company decides to go public. This team will include lawyers and accountants. They would be responsible for advising companies on its Initial Public Offering. Steps required in becoming publicly traded firm The first step involved in going public is to obtain consent from the existing shareholders and who own the privately issued stocks, (Gitman, 2009, p. 38). It is imperative that businesses inform their shareholders of such decisions so as to avoid any future negative end result. The second step involves lawyers and auditors who will be responsible for certifying all documents pertaining to going public and it is important to also have underwriters. They will ensure that all the paper work is legal. The accountants will also have to ensure that all accounting documents are in agreement with the Generally Accepted Accounting Principles (GAAP), while on the other hand, the lawyers will need to concentrate of documents relating to litigation and loans. (Gitman, 2009, pg. 338). The third step of this process involves locating an investment bank which will be in agreement to countersign or underwrite the offering. The underwriters are considered as very important in this step because this can influence the accomplishment of the Initial Public Offer. (Gitman, 2009, p. 340). The investment banker will then be responsible for forming an underwriting syndicate who will share financial risk associated with underwriting new securities. (Gitman, 2009, p. 340). In the fourth step of going public the company will file a registration statement with the SEC. A component of the SEC is called the prospectus, which outlines important aspects of the issue, issuer and the management and its financial position. There is a waiting period involved before approval and during this period, the company can receive a preliminary prospectus or red herring (Gitman, 2009, p. 338). Fifthly, once the registration is approved the investment community will then commence analyzing the companys prospects. (Gitman, 2009, p. 338). There will be a quiet period in which the company will have restrictions. This quiet period is to ensure that all potential investors will have access to the equal information. One month after filing, The IPO is usually completed. (Gitman, 2009, p. 338). The sixth step involves the road show, in which the companys stock offering is promoted. This includes a sequence of presentations to potential investors throughout the country which can also be extended to overseas. Another purpose of the road show is to estimate the requirements for the offering and also to set prices. (Gitman, 2009, pg. 339). Lastly, once SEC and the underwriters agree to the offering, a formal endorsement is made and signed. Once decided upon, the underwriter would be given shares that would need to be sold and the company will then receive capital that is acquired from the offering. The pros and cons of becoming a public firm As with everything else, there are advantages and disadvantages of going public. What must be taken into consideration or what must be an onjective to an organisation is to have your pros outweigh your cons. With this, it will give your organisation or firm a stepping stone in becoming a success. Pros Liqiudity: selling stocks from a private company can be challenging. This is due, to stockholders having to look for a different person who will be interested in owning the shares. As a result, this will make the stock more liquid for the public company and not for a private company (Going Public Today, 2009). In addition, having a high degree of liquidity and portfolio diversity can be accomplished (Block Hirt, 2005, p.449). Capital: by going public a firm can increase its monies or capital. However, a firm can increase funds through corporations selling its securities directly to the public (Block Hirt, 2005, p. 449). Mergers: this gives firms the provison to be able to utilize marketable sercurities to conduct mergers (Block Hirt,2005, p. 449). Exit approach: In this approach, both investors and owners of the public firm have the rights to or a choice to sell out at any given time based on the demand of the market due to their stocks having a very fast liquidity approach. Usefulness: Because public firms can possess well in established prices, publicly traded stocks can be useful in estate planning (Block Hirt, 2005, pg. 449). Image/publicity: according to Block Hirt, the high visibility of a public offering may even make the firm a potential recipient of attractive offers for its own securities. However this may not be viewed as an advantage by firms that do not wish to be acquired (Block Hirt, 2005, pg. 449). Free advertisement from the media such as magazines and newpaers will gain this sort of recognition due to them being a public firm. As a result of the free advertisement, revenues and sales will eventually increase (Going public today, 2009). Employee benefits: going public can help compensate and expand their levels of staisfaction, although a firm may not be competent in payig large salaries. However, being able to go public gives the firm the opportunity to make full use its potential in order to pull and keep employess by reccomending or offering stocks to these employees. In addtion, this offer seems to be more valuable and may even include different forms of benefit plans. It is important for a firm to understand that in order to be successful it must be able to have a well qualified staff. This is advantagesous because the company must make sure that they can attract and retain their personnel that is needed to maintain the companys integrity and increase profitablility postion (Zimmerer Scarborough, 2005, pg. 394) Cons Cost: The cost of going public is high (Block Hirt, 2005, pg. 449). Even though a deal made by the firm does not go through the firm can still loose the money that was already spent on down payment. In addtion to this, there are other cost associated such as: legal and accounting fees; travel fees; printing cost and sponsor allowances and filing fees, just to name a few. Difficulity: Becoming a public firm is hard work. It can be time consuming and expensive because cpmpanies must make all information available to the public through SEC and state filings (Block Hirt, 2005, pg. 449). Pressure: A lot of pressure is being placed on firms for short term performance by security analyst and large intitutional investors (Block Hirt, 2005, pg. 449). Liability exposure: By going public, directors and executives of the firm are now exposing themsleves to liability. Once a document has been done wrongly by an employee in the firm, they will be vulnerable to the civil society (Going public today, 2009). Loss of independence: No longer will the firm be operated by its owner. Because investors have the right to vote on whatever may be an issue to the company, they have the right to make decisions that the company may face. Unfortuneltly, a loss of independence resulted in an increase in takeover. Major markets around the world The New York Stock Exchange (NYSE): On an average day, there about $45 billion trades on this exchange and 1.6 billion shares exchange hands. There are currently about 8500 companies listed on the exchange which are worth nearly $17 trillion. (www.money-zine.com). It is considered the worlds leading and most liquid equities exchange group. NYSE Euronext powers the exchanging world and is comprised of equities and derivatives exchanges across the United States and Europe which trade cash equities, futures, options, fixed-income and exchange-traded products. It is home to the worlds leading companies providing access to the global liquidity they need to collaborate, compete and grow. (Stock Exchange, 2009). NASDAQ This stock exchange is recognized as the most technologically savvy stock exchange in the world. Companies such as Microsoft trade on the NASDAQ. (Stock Exchange, 2009). The NASDAQ OMX Group, Inc. is the worlds largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. It offers multiple capital raising solutions to companies around the globe and its technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. (Stock Exchange, 2009) (https://www.nasdaqomx.com/whoweare/quickfacts/) American Stock Exchange (AMEX) This is considered as the third largest stock exchange in the works. On average day, about 50 million shares are exchanged and about 1700 companies are listed. London Stock Exchange (LSE) Although it is much smaller that the American stock markets, this market list about 3300 companies from 60 countries some of which are US companies. One of such companies is General Electric. Toronto Stock Exchange (TSE) Australian Stock Exchange (ASX) Bombay Stock Exchange (BSE) Tokyo Stock Exchange (TSE) Other world markets include: North South America: Dow Jones Industrial Average United States SP 500 Index United States Brazil Bovespa Stock Index Brazil Canada SP/TSX 60 Canada Santiago Index IPSA Chile IPC Mexico Europe: FTSE 100 England Euronext 100 Europe CAC 40 France DAX Germany Swiss Market Index Switzerland Asia: Australia ASX All Ordinaries Australia Shanghai SE Composite Index China Hang Seng Hong Kong Mumbai Sensex India Nikkei 225 Japan Taiwan TSEC 50 Index Taiwan Caribbean companies entering public markets: Caribbean companies which are sometime referred to as small firms, have never been exempted from the public markets, they now have the opportunity to enter these markets in order for them to create international markets for their stocks and find opportunities for international investment, growth, advertising, increase in capital, and expansion of their customer base. How can these companies enter the public markets In the Caribbean, the companies that desire to enter the public market can do so with the aid of the Eastern Caribbean Securities Exchange. The Eastern Caribbean Securities Exchange commonly called ECSE is a regional securities market which is designed to facilitate the buying and selling of financial products, including corporate stocks and bonds and government securities. (ECSE vol. 2, n.d). The ECSE consists of the territories of Anguilla, Antigua Barbuda, Dominica, Grenada, Montserrat, St. Kitts Nevis, St. Lucia and St. Vincent the Grenadines. These countries all have companies trading on the public markets. For example Grenada, there companies such as the Grenada Breweries Limited, Grenada Electricity Services and Jonas Browne Hubbards (Gda) Limited. These companies trade their stocks on the international scene. There are guidelines and requirements that companies must follow when entering public markets. They must be listed on the ESCE and meet the required registration requirements. Some of these requirements include, fees and dues and legal requirements. Companies must ensure that their products or services can meet auditing requirements, high level of competitiveness and continuous growth. It is imperative that they seek advice from a stock exchange intermediary being a broker or dealer, who will be able to assist them in meeting the requirements of the ECSE. The ECSE is connected to the Eastern Caribbean Central Bank. Their main focus is on trading of corporate stocks, government securities and bonds and other financial products. It is a very crucial period for any company when entering the public markets. Key focus must be made on involving all persons in the company mainly its shareholders, as they will be the ones who will become the key decision makers. Competency and consistency must be apparent, and must exhibit a high level of transparency and accountability as investors would need to know exactly what is taking place. Some of the listing requirements are subjected to: o Decision making in interest of all shareholders o Meeting all registration requirements (these are set by the ECSRC) o Disclosure and distribution of companys financial structure, performance and activities Another avenue for companies to enter the public market is the IPO Initial Public Offering, this is only applicable to private companies wishing to go public. IPO by a private company is the first sale of stock by the company to the public. Although issued by smaller, younger companies in their quest for expansion of capital, it is issued also by large privately owned companies seeking to be publicly traded. (Investopedia, n.d) (www.investopedia.com/terms/i/ipo.asp). This can be a very risky investment as it will be difficult to predict what the stock will do on its initial day of trading and in the near future. This inadequacy is backed by the fact that there is little historical data with whiaich to analyze the company. On the other hand, IPO creates market value on any companys stock, and while offering shares for sale to the public it is also raising capital. Once these companies go public by IPO, they will be required to service their investors and the Securities Exchange Commission. An example of one such company going public is SGL Holdings Inc. This company traded on the international market but they were found to be in violation of the Grenada Securities Act. No. 23 of 2001 where the act prohibits persons from carrying on businesses as a custodian or manger of a collective investment scheme unless licensed to do so by the ECSRC! SGL Holdings Inc was not a licensed entity under the Securities Act and they eventually suffered the fate with the receipt of a cease and desist order. (ECSRC, n.d). Caribbean companies that can enter public markets and markets that serve as best options Based on the aforementioned information, we opted to select Sagicor Group Insurance Company. This company is known to be one of the worlds oldest and most experienced insurance companies. With its history dating as far back as 1840, the company has proven to be indigenous with respect to the redefining of financial services in the Caribbean. With operations in 22 countries and a variety of products for every life stage, the Company has expanded into the international financial services marked and evolved into a world-class brand. (Sagicor Financial Corporation, 2010). Based on the aforementioned information with respect to the world markets such as NASDAQ, LSE, NYSE; Caribbean companies such as Sagicor can trade on these public markets. Research has shown that Sagicors revenue has increased from $773m in 2007 to $1,205m in 2005; assets increased from $3,650m in 2007 to $4,460m in 2009. (Sagicor Financial Corporation, 2010). Based on the aforementioned information with respect to the world markets such as NASDAQ, LSE, NYSE; Caribbean companies such as Sagicor can trade on these public markets. Research has shown that Sagicors revenue has increased from $773m in 2007 to $1,205m in 2005; assets increased from $3,650m in 2007 to $4,460m in 2009. (Sagicor Financial Corporation, 2010). In Grenada, the Grenada Electricity Services Limited (GRENLEC) has also become a publicly traded company, but the question can be asked. Could GRENLEC enter these international markets? Grenada Electricity Company is the sole provider of electricity in Grenada. The company is responsible for serving more than 40,000 residential, commercial and industrial customers and has been providing integrated services of generation, transmission and distribution of electricity since the 1960s. With the majority of its shares sold to an investor, GRENLEC has seen growth since then. Its customer base has increased from 550 in 1960 to an excess of 40,000 in 2003. The Company is now listed of the ECSE since 2008. This listing has provided shareholders to trade and establish value for their investment. Investors also can purchase shares in the Company. (Author unknown, n.d). Conclusion After carefully considering both markets, Sagicor and GRENLEC, we concluded that not all Caribbean companies wishing to go public can trade in the international public markets. For small firms, we recommend that the ECSE is the most suitable public market for these companies as it will provide the basis for development and training for these companies who endeavour to go public in the future. Going Public can enhance the performanceof a business which in turn will mean more capital for the company. We have outlined some companies which have decided to go public both locally and internationally. However, companies need to pay careful attention to the steps and requirements which they need to follow in order to public, so as to avoid any legal implications. It is important that shareholders be a part of the decision to go public. Once a firm gets to sell bonds and stocks on a local, regional and international level this can result in profits for the company.

Assignment On The Healthcare Setting - 1216 Words

Student 8 digit UK Id Number: 10763788 Student Name: Dakota Heise Shadowing Preceptor: James Patterson Date of Shadowing Experience: 2/18/17 Interprofessional Shadowing Experience Learning Objectives 1. Appraise the healthcare setting in terms of the services provided, the types of clients/patients served, and the most frequent healthcare issues encountered in that setting (20 points). I think that integrative mind body medicine, as practiced by Dr. Patterson, is an overlooked and undervalued healthcare field that I believe many people probably do not even know exists as an option. Integrative mind body medicine focuses on how you can utilize your own physical, emotional, and mental capabilities to help you deal with stress,†¦show more content†¦The only healthcare professional at the Mind Body Studio that I observed was Dr. Patterson. He has an undergraduate degree in psychology, is a medical doctor (previously a primary care physician), and has a master’s degree in public health. He is certified by the American Board of Family Practice, the American Board of Integrative Holistic Medicine, and the Center for Mind Body Medicine, as well as trained in yoga instruction and mindfulness teaching. Dr. Patterson has all the capabilities and scope of practice of a physician that you could go visit in a family practice clinic, but instead of focusing on tra ditional, conventional healthcare – he focuses on alternative medicine in the form of mind body medicine. Dr. Patterson has a relaxing studio where he has 2 hour sessions and day long sessions where he can truly build a relationship with and learn about his patients. Dr. Patterson described his role in his classes as an equal to the participants of the class. He did not assume a typical doctor-patient dynamic/relationship, but rather an environment of respect and mutual learning between two (or more) mindful individuals. He personally leads all his sessions/classes, but there are many opportunities for the participants to act independently and take the reins. Dr. Patterson is the leader, but he makes it very clear that without communication between participants and himself, the experience will not be as rewarding, relaxing, or enlightening. 3.Show MoreRelatedReflection Journal : Managing Service Delivery1192 Words   |  5 Pagespresentation topic of my group was Te Pae Mohutonga which is a Mauri healthcare model. We presented it by explaining the history behind this model and threw light on how this model influenced the life styles of Mauri’s in a positive way. My part was to explain how we can meet the challenges of improving Mauri people health and I mainly focussed on utilizing Leadership and Autonomy principles of this model for bringing a change in healthcare system and improving it. 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Additionally, not everyone will want to follow or adhere to this type of leadership style (Advise America, 2013). My own weaknesses are, that if I do not see the results that I want, I will take on most of the work tasks myself, rather than reassess my direction for the team or individual task assignment. At times, it is hard for me to let go of authority to let others lead. Although, finishingRead MoreRole And Responsibilities As A Dnp Practice Scholar1704 Words   |  7 Pagesevidence when assisting them in making decisions about treatment options. Melnyk, B. M. (2013). According to the national leaders in major healthcare fields, mentioned a gap between research and practice and the importance to apply research findings and engage in evidence-based practice. In order to translate this knowledge, the clinician must understand the healthcare delivery in order to help narrow the research-to-practice gap and transform health care. DNP-prepared nurses are trained to reduce theRead MoreTelemetry 1011124 Words   |  5 Pagesdevelopmental characteristics of the family as a unit across the lifesp an. †¢ Examine health patterns and practices transmitted across generations. Rubric NOTE: All assignments must be submitted on time. Assignments submitted after the deadline will be accepted with a penalty of 10% of the total possible points for EACH DAY that the assignment is late. |Movie Family Assessment |Target |Acceptable |Unacceptable | Read MoreCommunity Outreach1244 Words   |  5 PagesCommunity Outreach Purpose The purpose of this assignment is to provide an opportunity to develop a community health nursing flyer that will be utilized for community outreach. It is the basis for your proposed intervention in the final assignment. Course Outcomes This assignment enables the student to meet the following course outcomes: 4. Evaluate effective communication with client populations and healthcare providers in managing the healthcare of individuals, families, aggregates, and communitiesRead MoreReflection1218 Words   |  5 Pagesmy own understanding in realising the good and bad made previously. Moving forward with a better understanding, as well as rectifying the mistake whilst recognizing the good points, (Horton-Deutsch and Sherwood, 2008). Working in a domiciliary setting and visiting vulnerable adults within their homes, I am constantly trying to provide a better service and care towards them and this is where reflection is crucial as this improves the quality of my job performance, providing me with a learning curve

Star river Electronics case free essay sample

Star River Electronics, a Singapore based company, is a large manufacturer and supplier of CD-ROMS. It was founded as a joint venture between New Era Partners and Star Light Electronics Ltd. In the past decade, Star River has been very successful due its excellent reputation for producing high quality discs. In 1999, CD ROM disc drives comprised ninety three percent off all optical disc shipments. This created a high demand and allowed for manufacturing companies of all sizes to enter the market. Due to the oversupply of product, CD-ROM prices were pushed down by as much as 40%. Corporate consolidations followed suit but Star Rivers managed to survive the industry shakeout. In 2001, Adeline Koh is appointed to fill the position of CEO after the former CEO’s unexpected resignation. In order to ensure the continuation and financial stability of Star River, she immediately takes initiative and meets with her assistant, Andy Chin, to discuss the company’s most significant issues. We will write a custom essay sample on Star river Electronics case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Digital Video Discs or DVDs are expected to cut into the CD ROM market very soon. It is predicted that by 2005, DVDs would comprise 59% of the total optical disc-drive shipments while CD-ROMs would account for the remaining 41%. Star River’s digital video discs currently make up only five percent of their sales. It is significant that Star River build upon their growth and capabilities in this segment. One way to do so is to increase capital expenditures and invest in DVD manufacturing equipment. In addition, Adeline Koh received a proposal for new packaging equipment that has the potential to cut down on labor and overhead costs significantly. A decision must be made whether to purchase the equipment immediately or wait three years when it will be imperative to purchase in order to handle the projected growth rates.

Steve Jobs A Charismatic Leader

Introduction Before his premature death after a long and brave fight with cancer, Steve Jobs had become a force to reckon in the IT field. Steve Jobs had an equal number of friends as enemies within the company, which depended on their relationship.Advertising We will write a custom research paper sample on Steve Jobs: A Charismatic Leader specifically for you for only $16.05 $11/page Learn More As the Apple’s co-founder, Steve was a celebrity, who commanded respect from his colleagues and many people across the world. His colleagues focused on every word that Jobs uttered during his speeches. They believed that his words had a hidden meaning. Hence, his constituents could go through his letters trying to decipher the hidden message. As a boss, Steve Jobs was forceful, tough, decisive, and astoundingly inspirational. As a businessperson, he was cunning and cold. His tactics were hardhearted and his business ideas were unsullied. In all areas, Jobs did not falter to speak out his views whenever he felt that things were not going as planned. Steve Jobs was a vibrant and alluring leader. His charisma saw him make significant improvement in Apple Company. Steve Jobs, obsessed with desire for perfection ended up losing his job in Apple. His goals crashed with those of the organization prompting the board members to withdraw all his responsibilities. His dismissal acted as an opportunity for him to revolutionalize the computer industry. During the period that he was out of Apple, Steve used his knowledge and charisma to draw a team of staff close to him, which helped him to enhance his knowledge in the production of animations. Moreover, he learnt the science of producing operating systems. His return to Apple is considered as a wonderful move that rescued a company that was in the blink of collapsing.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More With his charisma, Jobs managed to earn the trust of people who had initially seen him as arrogant and bossy and through their help; he revived Apple and made it significant in the computer world once more. Leadership style Steve was a strong and alluring director. According to Boje, a charismatic leader is one that draws all his or her subjects towards him through dint of charm and personality (433-445). In most cases, charismatic leaders are born with the charisma. They take time to study their surrounding and are able to identify the mood of their audience, therefore using their skills to suit the circumstances. Moreover, charismatic leaders have a great deal of poise, commanding vision, hard to convince to change their mind, and a dominant, even a pushy character. These features help them overcome all sorts of crisis that come their way. Nevertheless, the traits could at times make such leaders dangerous, especially if they happen to pursue the wrong vision (Boje 450-461). As a charismatic leader, Jobs was remarkably inspirational, liked using anecdotes to motivate, and his desire for perfection was moving (Bryman 289-291). Depending on actions that insist on the instructional style, Steve did not rush to share his thoughts about the course he felt the project ought to take. Besides, he was always ready to influence his juniors to adopt his opinions regarding problem-solving techniques. The charismatic personality of Steve Jobs helped Apple Company overcome numerous crisis, made significant and productive changes, and even led to employees agreeing to work for 90 hours per week with limited resistant. Through his leadership, the company could now meet deadlines, a phenomenon that was once considered as impossible in the company. His charisma, dominating influence, and conviction also led to Jobs losing his job in Apple Company when he blatantly opposed the move by the board members to change the course of the company (Bryman 296).Adver tising We will write a custom research paper sample on Steve Jobs: A Charismatic Leader specifically for you for only $16.05 $11/page Learn More According to (Appleyard 16), Jobs had the salesperson’s passion for the product and great determination to make sure that his company is successful. With such determination, there was the potential of Apple Company becoming a success as well as many people turning into Jobs’ foes. As a normal charismatic leader, Steve Jobs had numerous hurdles to surmount during his young age. First, he was an adopted child. Consequently, he had the problem of trying to understand his identity. His desire to establish his personal identity was intertwined with his dedication to Eastern beliefs and the pursuit for truth. Awamleh and Gardner assert that a close acquaintance of Steve Jobs during the 1970s, once said, â€Å"Steve Jobs felt some kind of unresolved pain over being adopted†¦he hired a private inves tigator to try to track down his mother†¦he was obsessed with it for a while† (345). Another instance of Steve Jobs’ charisma at vocation was his chronological propensity to use anecdotes to motivate and inspire his employees. Stories are powerful instruments for leaders working in technological institutions. They promote creativity among the employees as they make their mind see the bigger picture of the company. Besides, anecdotes help the leaders build a culture and promote organizational goals, mission, and vision. By using stories, Jobs made his employees develop the feeling that their contribution to the company was helping it stand out internationally. Steve asserted that his intension was to establish a gap in the world through Apple Company (Burrows and Grover 18). This mission guided all his operations and he worked hard to inculcate the same mission in the minds of all his employees. The assignment gave workers a sense of purpose, which promoted to their loyalty to the organizational goals. Steve’s leadership in Apple Steve Jobs, together with Steve Wozniak established Apple Company in 1979. They built Apple I as their first computer, which they offered in the market at $666.66. The computer was received well in the market leading to the company selling over 600 computers.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In 1977, the company came up with Apple II. The computer had the capacity to run business programs. Consequently, many people purchased the computer, making it the first personal computer to receive a massive market reception (Burrows and Grover 18). Steve’s approach to leadership in Apple Company was influential. He did not assume an official position as the chief executive officer. Instead, he acted as one of the board members. Scott Markkula was given the role of the president of Apple Computer, Inc. while Steve Jobs became the chairperson of the board members. Later, John Sculley became the company’s chief executive officer, but Steve Jobs retained the leadership position of the company. Steve’s superior personality and charisma pulled employees closer to him. With time, his goals contradicted with those of the Apple Computer Inc. leading to a power struggle between him and Sculley (Burrows and Grover 18). Jobs’ relations within and without the compan y Steve Jobs had a unique way of associating with his employees. He could be awfully kind, encouraging, and gratifying. At one fell swoop, he could also be downhearted, malicious, difficult, and demanding. His relationship with other corporations, suppliers, and consumers was equally impulsive. It was hard to know what to expect from Steve Jobs no matter how long one had worked with him (Conger, Kanungo, and Menon 747). He had an astonishing capacity to marshal people behind him and engage him in activities geared towards his personal and organizational interests. For instance, he was capable of addressing all problems relating to sales and supplies. At one time, demand for the Apple II computers went high exerting pressure on the manufacture of cases, especially when there was machine failure. The company could not continue supplying the computers efficiently and this affected its cash flow. Describing the incidence Conger, Kanungo, and Menon said, â€Å"The suppliers went on ramp age demanding their payment while Apple Computer Inc. was working hard to manage 60-day credit purchases with the amount it collected from its sales to consumers on a 30-day basis† (749). Steve rescued the situation by promising a bonus to manufacturers who met their production target ahead of the set timeframe. According to Conger, Kanungo and Menon, â€Å"†¦manufacturers were to get $1,000 for weekly delivered cases ahead of schedule† (750). The move motivated the manufactures prompting them to repair their machines. Within a short period, they started supplying the company with enough cases that helped it meet the demand in the market. The cash flow in the company regained its initial position (Conger, Kanungo, and Menon 749-759). Steve managed to rescue a company that was almost closing its doors due to bankruptcy. Another example of Steve’s charismatic leadership during the same financial crisis depicts his dark side and his dedication to addressing the employees’ needs. There was a problem in the routine back up, which led to a programmer losing six weeks of work. Call Company was given the mandate of carrying out the routine back up. After the incidence, the company’s head declined to offer the back-up services to Apple because Jobs and Wozniak mistreated him during the incident. Moreover, Apple Computer Inc. was not paying for the backup services during the financial crisis (Conger, Kanungo, and Menon 766). Steve Jobs assured Kamradt (the Call Company’s head) that he would pay all his dues if he agreed to give Apple the back-up tape. Kamradt agreed to cooperate and give Apple the tape to recover its lost work. He later visited Jobs in his office to collect his pay. On getting to Jobs’ office, Kamradt got shocked when Steve told him that he would not pay him because his computers had deleted weeks of work. He had no choice but to leave the office frustrated and that marked the end of his relationship with Apple Computer Inc. The negative side of Jobs’ Charisma The zeal and fervor that overwhelmed Steve about the Apple Company, which swayed his employees to trust in his abilities, and that, endowed him with influential and informal leadership, as a board member in the company is also the same zeal and fervor that ultimately made him lose his job in the company (Conger â€Å"Inspiring others† 31-37). The company was starting to perform poorly. Its sales volume was down with the estimated sales of Macintosh being at 10 percent. Steve blamed Sculley for the poor performance. He insisted that for the company to improve its performance, Sculley had to relinquish his presidency and give him the responsibility. Jobs’ charisma had earned him a lot of support and trust from a majority of the company’s employees. Hence, he was ready to do everything to ensure that he ousted Sculley. He went to the extent of organizing for a coup in the company. The companyâ€⠄¢s management board discovered the coup before it actually took place and withdrawn all the responsibilities given to Steve. He was to act as the chairperson of the company’s board members. Subsequent change After leaving the company, Steve moved to Europe where he began to popularize the Apple II computer. Eventually, he managed to buy a tent and a bicycle to aid his movement across the country. The transformation gave him an opportunity to reconsider his approach of seeing and interpreting things. His attitude towards the public changed significantly. He stopped focusing on personal interests and worked towards helping the company grow. At one point, he agreed that it comes a time when one focuses on his or her inner values. Perhaps that is what he was doing during his work in Europe and later in Russia (Conger â€Å"Inspiring others† 41-44). Later, Steve Jobs went back to Cupertino, and through his charisma, he managed to acquire a market from the universities in t he region. He instantly embarked on the establishment of a new company, NeXT, to facilitate in development of computers that could satisfy the budget and performance requirements. He used his charisma to lure some of his former colleagues in Apple Computer Inc. to join him and form the company. He relinquished his responsibility as the Chairman of Apple (Conger â€Å"Inspiring others† 45). He had already discovered his potential and enjoyed working with a small number of staff that was ready to develop superior products that could revolutionalize the world. Leadership hitches in NeXT Steve was fervent about his job. He held the belief that things ought to go his way. He was not ready to partake in any project that did not meet his interests. This was evident in how he managed the negotiations between his company and International Business Machine (IBM) Company. Soon after establishing the company and inventing a novel operating system, which was simple to understand and apply , he intimated to IBM’s CEO, how dominant and valuable operating system would be (Conger â€Å"Max Weber’s Conceptualization† 277-283). IBM was attracted by the advantage that Steve and his company brought to it and assembles some representatives to facilitate in negotiations. The representatives presented to Steve a 100-page contract, which he declined and compiled his six-page contract, which he ensured that it addressed all his interests. During the negotiations process, NeXT Company incurred huge loss. By then, IBM was relying on Microsoft for its operating systems. Steve saw this as an opportunity to lure IBM to enter into a business agreement with NeXT (Conger â€Å"Max Weber’s Conceptualization† 286). Leadership alterations with Pixar Whilst working on NeXT, Steve managed to convince George Lucas to sell his hardware and software studio. This demonstrated his charismatic leadership. He used his tolerance, concession ability, and instinct to obtain the studio. It highlighted the influence of his charismatic leadership and the transformations he was about to make upon his return to Apple. His ability to stay put and to convince people that he is pursuing the right goals always earned him trust (Conger â€Å"Max Weber’s Conceptualization† 288). He knew when to apply his skills as well as who to target. When Steve presented his proposal to George for the first time, George agreed to sell the studio under the condition that Steve would part with $30 million. However, Jobs learnt that George was in a business contract with Ross Pert. Based on the nature of their business contract, Steve knew that the contract would not last for long. He decided to wait until the two fall out to approach George with his proposal. Later, George accepted to sell the studio at $10 million. He named the studio Pixar, which later took control of the digital animation industry (Sharma and Grant 13). Reappointment in Apple Company NeXT was still struggling in the wake of Steve’s capricious leadership. Despite his charisma, Steve was still not able to make viable business decisions. The greatest achievement he had made in the company was to come up with an operating system. The company was no longer making further innovations. It had nothing unique to show to the investors. In 1996, Apple felt that it required a novel operating system to make its computers competitive (Sharma and Grant 14-18). The company started negotiations with Sun Microsystems. In addition, Microsoft Company through Bill Gates offered to work with Apple in the development of a new operating system. Meanwhile, one of the Apple’s board members was working on an operating system in his company, Be, Inc. Without Jobs’ knowledge, some engineers in NeXT Company learnt about the intentions of the Apple Computer, Inc and contacted the company to see if it could buy their operating system. Through his charisma, Steve managed to win the trust of the Apple’s board members. They entered into a contract where NeXT supplied Apple with not only its operating system but also with staff. Eventually, Apple bought NeXT and gave Steve the role of a special adviser. Later, Steve Jobs became the acting chief executive officer of Apple. For Steve, charisma is not something he decided to apply in his leadership (Harvey 253-257). Normally, a leader ought to earn his or her leadership, and in charismatic leadership, just like other forms of leadership, a leader has to involve and consult with his or her support staff. The workforce has to relate a leader with charismatic behaviors before he or she can allege to have the traits. For people who attended an Apple Developer Conference, they could claim that Jobs possessed charismatic qualities. Jobs applied impression management to establish a strong relationship with his colleagues advertently (Harvey 258-261). Whenever he was in a meeting, he tried as much as possible to ensure that he impresses his audience. Besides, he had the power to influence the media to report what he wanted. These influences helped Steve to cover his dark side leading to the majority of employees trusting in all that he claimed to support (Sharma and Grant 21). Jobs’ leadership style in Apple had always been a nightmare to the majority of staff members as well as to the media. Harvey posits, â€Å"Jobs’ ‘reality distortion field’ has always been a double-edged sword†¦Stories in Silicon Valley about Jobs’ narcissism, temper, epic tantrums, and bad behavior are as legendary as his feats† (263). For instance, Deutschman documents a dramatic episode in which Jobs openly reprimanded a software programmer for not providing him with quality software. Yet, majority of the employees that had worked with Steve perceived him in a more empathetic manner. Most of them felt that those opposed to Jobs’ policy misunderstand him. Jobs alw ays sought to ensure that him, together with other employees give the best to the clients. However, his obsession for perfection made people misunderstand him and view him as bossy and arrogant. Steve’s ability to forge and uphold a strong charismatic image with his employees, despite his character, was mainly because of efficient ‘stage management’. Stories about his negative side would never be released to the public. Jobs used his charisma to make his employees believe that confidential matters like spontaneous products and business activities ought not to be made public. In 2007, he used his influence to silence a website (ThinkSecret) that used to expose all the information regarding the company’s new products (Roche and Sadowsky 1-5). For years, Steve Jobs used the company’s special events and conferences as platforms to correspond with the clients. For instance, Jobs enjoyed the privilege of opening every Macworld conference by addressing the participants. This gave him an opportunity to use his charisma to lure people to buy to his policies. Besides the Macworld, Jobs always had an opportunity to meet his employees and board members during the company’s Worldwide Developers Conference (WWDC) (Sharma and Grant 25-26). During the conference, he got an opportunity to display his latest innovations in terms of technology and software. This gave him an upper hand in his effort to sway the board members and other employees to his side. Conclusion One of the factors that made Steve Jobs a great business leader was that he was always guided by a particular objective in his life. He once alleged that his enthusiasm emanated from love, confidence, and loss and that he always factored in the three elements in all the decisions he made. At the beginning, Steve applied his charisma and passion for perfection to influence employees and earn their respect. The two qualities helped him achieve a lot in the company though they l ater also saw him lose everything in a company he had worked tireless to see it grow. Steve had a unique way of relating with staff as well as the suppliers. At one point, he could be very kind and motivating and all of a sudden turn and become thankless and demanding. This impulsive way of management gave him an opening to win the confidence of all the stakeholders since they barely knew what to anticipate from him. The zeal and fervor that saw Jobs try to make Apple a perfect company later led to his dismissal from the company. Steve started blaming Sculley for the poor performance in the company. He went to the extent of claiming that the company could only perform if they allowed him to assume the company’s presidency. These utterances and the subsequent plan to stage a coup in the company led to the board members taking away his powers in the company. He was given the role of a chairperson of the board members. Steve did not receive this development kindly prompting him to leave the company and move to Europe where he embarked on promoting Apple II computers. The period he worked in Europe earned him a lot of experience and helped him change his leadership style as well as the dimension of interpreting issues. As a leader in NeXT and Pixar, Steve Jobs learnt to accommodate the other people’s opinions. He no longer insisted on doing things his way. 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