Question

Summary: Key Points in the Article Apple Computer CEO Steve Jobs announced he was taking a leave of absence for health reasons. Jobs has been fighting cancer and also recently underwent a liver transplant. Even though the computer giant is in good hands with Chief Operating Officer Tom Cook taking over the stock price fell by​ US$6.40, or nearly two​ percent, on the news. Jobs is widely known as a visionary and a micromanager. Under his leadership Apple has transformed the computing industry. While​Jobs' health outlook is unknown many investors are betting on his recovery and return. Those who bought Apple stock when Jobs stepped down in 2004 for health reasons made a nice profit when he returned to the helm.   Question 2 Marks “. Do you agree with the decision taken in the above case? What decisions you will take to improve the stock price of Apple Computers in this situation?

Answer 1

No, I do not agree with the decision that has been taken in the above case. Pinning hopes in stock price increase on the basis that Mr. Jobs might again return to the helm once his health condition improves is a hope that is not based on logic and rationale thinking at all. It is not at all rational as well as a practical approach because the fact that a person cannot go on forever while a company does goes on forever.

The decisions that I will take to improve the stock price of Apple Computers in this situation will be to ensure that proper succession planning is put in place within the company and that strategy, goals and policies of the company are clearly outlined during the leadership change. This will ensure that the going momentum at Apple is sustained and hence the traction with regards to sales and profitability remains in place.