The Steve Jobs Legacy

Steven Paul Jobs was born on 24th February 1955 to Syrian born Abdulfattah Jandali and Joanne Carole Schieble, an American of Swiss and German descent.  The two were studying at the University of Wisconsin at the time.  Schieble's father refused to let her marry Jandali.  She was taken to California until the birth, whereupon the baby was given up for adoption.

Subsequently, Schieble's father died; she and Jandali married.  The couple went on to have a little girl called Mona, Steve Jobs' full biological sister.  Nevertheless, their firstborn son had been adopted by Paul Reinhold Jobs and Clara Jobs, whom Jobs stated in his autobiography he regarded as his parents, "100%".

Paul and Clara Jobs went on to adopt a daughter, Patty.  The family lived in Mountain View, California.  Paul Jobs was a mechanic and carpenter by trade and taught Steve rudimentary electronics, showing him how to take apart and reassemble electronics such as televisions and radios.  It was thus quite early on that Steve Jobs became interested in tinkering with technology.

Clara Jobs worked as an accountant.  She taught Steve to read before he attended school.  Steve Jobs attended Cupertino Junior High followed by Homestead High School where he met and became friends with Bill Fernandez, a neighbour who shared Jobs's interest in electronics.  Bill Fernandez introduced Jobs to Steve Wozniak, nicknamed "Woz", an electronics whiz kid.  Wozniak showed Jobs a computer board he and Fernandez had started building in 1969 which they had named the "Cream Soda Computer" (owing to Fernandez's addiction to the beverage).  Steve Jobs became very interested in the duo.

After graduating High School in 1972, Steve Jobs enrolled at Portland, Oregon's Reed College.  His parents Paul and Clara could ill afford to send him, but an assurance that Jobs would attend college was a stipulation of his biological mother when she gave him up for adoption.  As it turned out, Jobs dropped out of college after just six months, spending the next 18 dropping in on creative courses including a calligraphy glass.  Jobs recalled later in interview having spent many nights bedding down on the floors of friends' dorms, returning Coca Cola bottles in exchange for money and food, relying on free meals from the local Hare Krishna temple.  Steve Jobs cited the calligraphy class he dropped in on at Reed College as being instrumental in his idea from multiple typefaces and proportionally spaced fonts in the development of the Apple Mac.

By 1972, Wozniak had developed a video game computer board - his own version of the classic game Pong.  Wozniak asked for Jobs' help.  Jobs approached Atari.  Atari thought Jobs' had built the computer board himself and promptly gave him a job as a technician.  Atari co-founder Nolan Bushnell later remembered Jobs as a difficult but valuable employee, citing that Jobs was very often the cleverest guy in the room, and had no issue with letting everyone know it.

In 1974, Jobs travelled to India to visit Neem Karoli Baba, in search of spiritual enlightenment.  When he arrived with friend (and latterly Apple employee), Daniel Kottke, they found the Karoli ashram virtually deserted, Neem Karoli Baba having died in September of the previous year.  They travelled around India, spending much time in Delhi, Himachal Pradesh and Uttar Pradesh.  Jobs left India ahead of Kottke seven months later, returning to the United States a convert from the Lutheran faith to Zen Buddhism.

Upon his return to the US, Jobs began working for Atari once more, working on a circuit board for the arcade game, Breakout.  Atari offered a $100 bonus for every TTL chip Jobs could successfully eliminate.  Jobs struck a deal with Wozniak to split the fee 50/50 if Wozniak minimised the number of chips, Wozniak being somewhat of an expert in compiling circuit boards.  To the amazement of Atari's team of engineers, Wozniak reduced the total number of TTL chips to just 46, albeit with a design too tight to be recreated on a mass assembly line.  Wozniak and Jobs continued to work together on the "Blue Box", a low cost digital box designed to manipulate the telephone network, allowing free long distance calls.  Clandestine sales went well, Jobs citing the success of the Blue Box as being a pre-curser to Apple, showing the duo that they could take on large companies and beat them.

Jobs and Wozniak formed the Apple Computer Company in 1976, named after Jobs' favourite summer job picking the fruit.  They started out in business selling circuit boards.

On 11th April 1976, the duo released the Apple I, a somewhat rudimentary forefather to today's Apple products, featuring a homemade wooden computer case.  The price was fixed at $666.66, largely on the basis of Wozniak's liking of repetitive digits combined with the 1/3 mark up on the wholesale price of $500.  Jobs struck a deal with the Byte Shop of California for 50 computers.  Apple delivered their first order within 10 days.  Approximately 200 Apple Is were manufactured.  Today there are a reported 63 still in existence, with a working example fetching a hammer price of $365,000 at Christie's in 2014.

Steve Jobs made many mistakes throughout his career.  He made several well documented blunders.  Nevertheless, it is for his brilliance; for the things he got spectacularly right - the Apple Mac, the iPhone, the iPod and the iPad - that Steve Jobs is remembered today.  Apple's contribution to the technological world has been game-changing.  There really is an App for everything.  From shopping to ship navigation to corporate consumers like Tony Freeman, Jobs changed not only the way we use technology, but the way we live our lives today.

Startup Business FAQs

When calculating the funding needs of a business, two different types of funds will need to be considered: start-up costs and working capital.

Start-up costs are one-off payments made in starting the business, like set-up fees, premises renovations, utility down-payments and equipment.  This outlay will include furniture, fixtures and fittings and machinery as well as location and admin and legal expenses.

Working capital is the float required to take care of day-to-day running expenses of the business like advertising, taxes, insurance premiums, utilities, salaries and all other costs associated with the running of the business.  When starting out, it's prudent to ensure that funding is in place to cover all of the start-up costs together with working capital to cover at least the first 6-12 months of the business.

Founding a business first starts with an idea.  It may be a product or an invention.  This is known as "intellectual property".  It is prudent to check whether the idea has already patented or registered and, if it hasn't, seek legal advice about patenting your idea so that no one can steal or copy it without your permission.

Once you have your initial idea, market research is imperative in assessing whether the proposed product or service is saleable and there is a genuine demand.  It is at this stage that problems can be identified and fixed, or if the idea is a non-starter, the prospective business person may move on without having wasted too much time, money and effort.

Market research is tackled by identifying potential customers and approaching them to find out their needs.  If it is a product that is to be sold, this is where a prototype would prove invaluable (though only once patents and registration of intellectual property has been dealt with), thus allowing potential customers to see the product you intend to market and give feedback as to whether it meets their actual needs.  The product can be tested and any faults identified and fixed.  Pricing points can be tested to see what potential customers would be willing to pay for it.  It is at this point that the prospective business person will gain a real insight as to whether the business is likely to be profitable or not.  Another vital component to bear in mind at this point is market competition.  Entering a market with high consumer demand for a product is a very different proposal to entering a saturated market where competitors are slashing their prices.

The next step is developing the concept, taking into account feedback on the product or service from potential customers.  This is where any identified problems can be ironed out including in the branding, manufacture and selling.  It is wise to return to potential customers for feedback on the updated product.  Once you are confident that the product/service meets their needs and is profitable, the next step is drawing up a business plan.

A business plan is imperative when setting up any business.  This will be the road map guiding the future of your firm or company.  It should include clearly stated goals.  A well drawn up business plan is critical in obtaining investment and loans, providing potential investors with the information they need to decide whether your proposal appears viable or not.  A business plan will provide organised, specific information about your business and how you intend to repay investments.  Basic components of a sound business plan should include:

1.     A business concept.

2.     An executive summary.

3.     Details of the products and/or services the firm or company proposes to sell.

4.     Market research and analysis. 

5.     A marketing plan.

6.     Details of the business's operations.

7.     A breakdown of the ownership, management and organisational plan.

8.     Financial data and projections.

9.     Details of critical risks to the business.

10.  Appendices and/or exhibits.

A business plan is an invaluable tool in attracting investors and convincing potential partners and funding sources of the viability of the business.

The next step is looking at potential partners, premises and suppliers.  Many businesses are started by a sole trader from their own home.  You will need to check that your proposed business falls in line with any legal obligations, for example Health and Safety regulations.

Where a partnership or limited company is to be set up, it's important to consider whether your co-founders are reliable and possess the requisite skills.  There could potentially be weighty legal and financial implications for founders personally if the business fails, so it is advisable to seek independent professional advice from lawyers and/or accountants.

Potential suppliers can be identified and approached via online searches and business research.  It's good practice to draw up a short list and approach them to begin to develop business relations, gain a sense of which suppliers are trustworthy and reliable and enter into pricing negotiations.  Consideration will need to be given to their trade credit stipulations, i.e. how long you have to pay their invoices and whether they offer discounts for buying in bulk etc.  It is then time to look at how you're going to attract potential customers and get your product to market.  Whether you work with a distributor, retailer or plan to build your own website, these are all good business practices borne in mind by experts like Tony Freeman.

The Most Famous CEOs of the 21st Century

The cut-throat corporate world is no place for shrinking violets.  All the same, a little humility goes a long way.  Along with oodles of ego, a successful CEO must possess creativity, conviction and leadership qualities, combined with many other attributes to achieve greatness in business.  Here we look at four of the 21st Century's best.

Indra Nooyi

Indra Nooyi is CEO of Pepsi, the second largest food and beverage producer in the world.  She ranks 13 in the 2014 Forbes list of the World's 100 Most Powerful Women.

Indra Krishnamurthy Nooyi was born on 28th November 1955 in Madras, Tamil Nadu, India, receiving a bachelor's degree in Physics, Chemistry and Mathematics, in 1974 from Madras Christian College as well as a Post Graduate Diploma in Management in 1976 from the Indian Institute of Management, Calcutta.

Nooyi began working for Pepsi in 1994, becoming President in 2001.  She has directed Pepsi's global strategy for over 10 years and led the company's restructuring, including its Yum! chain of restaurants.  She took a leading role in the acquisition by Pepsi of the Tropicana brand in 1998, as well as the Quaker Oats and Gatorade companies.   Bloomberg Business cite a 72% increase in Pepsi's annual revenues since Nooyi became CFO in 2001, with net profits doubling to $5.6 billion in 2006.  Indra Nooyi was named the Most Powerful Woman in Business by Fortune in both 2009 and 2010.  She has received honours and awards from numerous bodies, including three honorary degrees and five honorary doctorates. 

Jeff Bezos

Jeff Bezos is a well known name to executive Tony Freeman and fellow entrepreneurs.  Bezos is the CEO and founder of the global corporation, Amazon.

Born Jeffrey Preston Jorgensen on 12th January 1964 in Albuquerque, New Mexico, Bezos graduated from Princeton in 1986.  He spent a spell working in the computer science field on Wall Street before building an international trade network for Fitel.  After a stint with Bankers Trust and D.E. Shaw & Co, Bezos founded Amazon.com in 1994.

Bezos recounts that he took a cross country drive to Seattle from New York, writing up the business plan for his new company on the way.  He originally set up shop in his garage.  Bezos had quit a well paid job with a New York Hedge Fund to follow his dream after reading about the recent surge in internet use.  The growing popularity of the worldwide web coincided with a US Supreme Court ruling that mail order catalogues were not obligated to collect taxes in states where they had no physical presence.  Bezos knew he was onto a winner.  By 2011, Amazon was worth $6.5 billion, its share price rising by some 70% in a single year.

Bezos was named 2012's Businessperson of The Year by Fortune, Person of the Year by Time in 1999 and was selected by the US News and World Report as one of the US's greatest leaders in 2008.

Jack Ma

Jack Ma is an entrepreneur and philanthropist.  He is also the founder and executive chairman of the hugely successful Alibaba Group.

Jack Ma was born Ma Yun in Hangzhou, Zhejiang, China on 10th September 1964 to traditional musician/storytellers.  From a very young age, Ma wished to learn English.  He rode his bike every morning to visit local hotels so that he might converse with foreigners.  He would guide them around the local sites for free in order that he could practice his English.

Ma studied at the Hangzhou Teacher's Institute, graduating in 1988 with a bachelor's degree.  He went on to the Cheung Kong Graduate School of Business, graduating in 2006.

Ma began building websites for Chinese companies.  In 1995, he and his wife Zhang Ying went on to build a Chinese version of Yellow Pages.  Within three years, they had made $800,000 from a company they started with just $20.

Ma founded Alibaba with a group of 17 friends in 1999.  Today, the company serves over 79 million members from 240 different countries.  Ma became the richest man in China in 2014 and ranks 18 on the Bloomberg Billionaires Index with an estimated net worth of $29.7 billion.

Mark Zuckerberg

Mark Zuckerberg is the creator and CEO of Facebook.  He was born Mark Elliot Zuckerberg on 14th May 1984 in White Plains, New York.  His father is a dentist and his mother a psychiatrist.  Zuckerberg's interest in computers began at middle school.  His father began teaching him Atari BASIC Programming in the 1990s, later hiring a private tutor who called him a prodigy.  Zuckerberg took a graduate class at Mercy College whilst still studying in high school.   One of his early networks was ZuckNet, a platform linking the computers in his parents' house to his father's dental surgery.  Whilst still at high school, he programmed the Synapse Media Player ,which achieved a 3 out of 5 rating from PC Magazine.

Zuckerberg's time at Harvard is the focus of the 2010 movie, The Social Network.  He studied computer science and psychology.  It was here that he wrote CourseMatch, a programme which allowed students to see which classes other students had selected, thus helping them to choose their own classes according to their affiliations and study groups.  Shortly afterwards, he wrote a programme called Facemash, encouraging students to select the most attractive person from a selection of photos.  The college shut his website down a day later because the surge in traffic had overwhelmed its network.

Zuckerberg launched Facebook in January 2004.  Three years later, aged just 23, he was a billionaire.

The greatest business decisions of all time

Once in a while, companies make changes which seem counterintuitive: to defy all conventional wisdom.  Doubling your entire work force's salary overnight may seem like madness, but that's the high risk strategy that made Henry Ford a household name today.  Here we will take a look at two of the highest drama decisions and the people behind them.  As businessman Tony Freeman will agree, the commercial world is a constantly evolving.  Here we take a look at two of the biggest leaps made by business revolutionaries.

Boeing's launch of the 707

When Boeing's CEO launched the 707, he didn't have a single order.  He just believed in the product: he knew that customers would want to buy it.  It takes a huge amount of courage and conviction to put the company you have, in bricks and mortar, on the line for a dream of the company you could have: something much bigger.

In 1952, Boeing was a virtual nonentity in the business of commercial aircraft.  The company was primarily involved in manufacturing military aircraft, such as the famous B-52 bomber.  The aircraft maker was heavily involved in the development of jet technology, but in those days the use of jets in commercial aircraft was not considered viable by the industry as a whole.  Converting to jet technology would require massive investment which would seriously affect the airline industry's profitability.

The safe choice for the company would have been to stick to its operations in the defence industry.  Boeing's post-war President, William McPherson Allen, had other ideas.  In one of the most talked about "bet the company" moves of all time, he effectively put all of Boeing's eggs in one basket, risking it all on the success of a single product.  He was convinced that the 707's convenience, speed and comfort would win over consumers and that the civilian aviation sector was ripe for expansion in a booming global economy.

In 1952, William McPherson Allen managed to persuade Boeing's Board of Directors to invest $16 million in the Boeing 707.  This was the first United States based transatlantic commercial jetliner.  The plane altered the course of Boeing's future completely.  The 707 became much more than a transportation vehicle - it became a cultural icon - Jantzen even named a range of swimwear after it.  Dwight Eisenhower, George Bush and every United States President in between flew on a modified version of the 707, the world famous Air Force One.

Boeing was founded in 1916.  The company's headquarters are in Chicago, Illinois.  Today it is ranked #97 by Forbes in their list of the World's Most Valuable Brands.  Boeing employs over 168,000 employees worldwide.  The company's sales are estimated to be in the region of $86 billion.

Henry Ford doubles his workers' wages

In 1914, Henry Ford faced a problem.  As ridiculous as it may sound, his car production company was becoming too successful, too quickly.  A surge in popularity of the Model T motor car caused Ford to question his strategy of mass production.  He had introduced a moving assembly line at his Highland Park, Michigan plant in 1913 and it worked far better than he had ever imagined, but to the detriment of his workforce.

Since installing the moving assembly line, the Ford Motor Company was haemorrhaging employees.  Workers' morale plummeted: the mundane, repetitive, physically demanding work causing the factory's operators to walk out in huge numbers. 

After talking things through with his assistant, James Couzens, Ford knew he had to take action.  On 5th January 1914, Ford and Couzens summoned the press to Ford's Highland Park plant.  They announced changes in employment policies which they hoped would improve worker retention.  These consisted of:

1.      Reducing the working day from nine hours to eight.

2.      Moving from two shifts a day to three, thereby creating many new jobs.

3.      Subject to certain conditions, doubling the basic rate of pay to $5 a day.

The history of ford motors from Tony Freeman

The 11 year old car manufacturing company was willing to spend an extra $10 million a year to improve the lives of its workers, thereby improving their productivity and the productivity of the company.

News spread quickly about Ford's "magnificent act of generosity" as it was hailed by the New York Evening Post.  His $5 working day turned out to be a shrewd investment, annual labour turnover falling from 370% to 16% within the year and productivity increasing from 40% to 70%.  This enabled Ford to reduce the price of the Model T from $800 to $350 between 1910 and 1919, solidifying the company as the world's greatest car manufacturer, and making Ford a billionaire. 

The Ford Motor Company was founded by Henry Ford on 16th June, 1903.  Today, the Ford Motor Company manufactures and distributes cars across six continents.  Through its subsidiaries the company also engages in other sectors, including vehicle finance.  The company is divided into two sectors: Automotive and Financial Services.  The Automotive section is further divided into four subsidiary companies: Ford Europe, Ford South America, Ford North America and Ford Asia Pacific Africa.

In 2014, Ford ranked #133 in the Forbes list of America's Best Employers, #47 in the Global 2000 and #45 in the World's Most Valuable Brand.  Today the company employs over 180,000 workers and attracts a revenue in excess of $146 billion.  In 2015, the company is set to take a risk again, releasing the revolutionary F-150 Pickup, making them the first truck manufacturer to move away from traditional steel panels to lightweight aluminium.

Two of the highest earning businesses worldwide

Following an upturn in the global economy, here we examine two of the highest grossing companies worldwide.  Investors the world over like entrepreneur Tony Freeman will be keeping a keen eye on up and coming companies throughout 2015, forging ahead amongst the green shoots of recovery.

Toyota Motors

Toyota Motor Corporation is based in the city of the same name in Aichi, Japan.  Founded on 28th August 1937 by Kiichiro Toyoda, this public company employs some 338,875 workers worldwide.   As at November 2014, the company was ranked the 12th largest in the world by revenue.  In 2012, Toyota was the largest producer of automobiles in the world, placing them ahead of General Motors and the Volkswagen Group.  Toyota reported the production of its 200 millionth vehicle in July of that year.  The company is the first car manufacturer to produce over 10 million vehicles a year.  As at July 2014, the Toyota Motor Corporation was listed as the largest in Japan by market capitalisation.

Kiichiro Toyoda created the company in 1937 as a spinoff from his father's Toyota Industries.  Whilst Toyota Industries manufactured automobile and truck parts, Kiichiro Toyoda wanted to concentrate solely on the production of automobiles.

 

In the 40s and 50s, Toyota's small-sized cars were sold under the name "Toyopet".  Toyopet production went on to include light trucks.  When the Toyopet was released on the American market the name proved unpopular and was later dropped, though it continued to be used in other markets until the mid 60s.

In the 1990s, Toyota branched out from the manufacture of reasonably priced compact cars and light vans, adding many more larger and more luxurious models.  These included several lines of SUVs, a full-sized pickup branded the T100 (later renamed the Tundra) and the Scion brand which was a range of sporty yet affordable cars targeted at young adults.  In 1997, Toyota began production of the world's best selling hybrid car: the Prius.  This award winning car is definitely one for those watching the market like Tony Freeman to keep an eye on, proving popular with both the general public and celebrities alike as an environmentally responsible alternative to relying solely on petroleum

Toyota ranked eighth in the Forbes list of leading companies in 2005.  In 2014 Toyota achieved a $230,201 million revenue for the sale of motor vehicles and car parts, equating to sales of over $7,000 per second.

 

BP

BP, or British Petroleum as it was formerly known, is one of six of the world's "supermajor" gas and oil companies.  Its headquarters are situated in London.  The company deals with not only oil refining and production but also distribution and marketing, power generation, petrochemicals, trading and exploration.  BP also has interests in renewable energy including wind power and biofuels.

The company, original trading as the Ango-Iranian Oil Company and Iraq Petroleum Company, was founded in 1908 after a team of British geologists discovered a substantial amount of oil in Masjid-i-Suleiman, Iran.  This was the first commercially significant discovery of oil in the whole of the Middle East.  The Shah of Iran granted William Knox D'Arcy a concession, enabling Britain to drill for Iranian Oil.  Following the establishment of the Burmah Oil Company, a subsidiary of Anglo-Persian Oil, the Abadan Refinery was constructed in 1912 and the pipeline from Abadan to Masjid started.  In 1915, the Anglo-Persian Oil Company established the British Tanker Company, enabling them to distribute petroleum all over the world.

The Deepwater Horizon Explosion

On 20th April 2010 an explosion and subsequent fire on the semi-submersible Deepwater Horizon Mobile Offshore Drilling Unit caused both an environmental and a public relations disaster.  Located some 40 miles to the southeast of the Louisiana coast in the Macondo Prospect oil field, the rig was operated by Transocean, a company drilling for BP.  The explosion injured 16 workers, killed 11 and sinking the Deepwater Horizon drilling rig.  A total of 115 people were evacuated, 98 by lifeboat and 17 by helicopter to trauma centres.  The accident resulted in a massive offshore oil spill in the Gulf of Mexico which is considered to have been the largest US environmental disaster to date and the biggest accidental marine oil spill in global history.  In the wake of the incident, BP were criticised heavily for their involvement.  BP filed $40 billion in lawsuits against the rig owner, Transocean, alleging that the irresponsible behaviour of contractors and failed systems had led to the explosion.  On 4th September 2014, District Judge Carl Barbier attributed 67% of blame for the incident to BP, ordering the company to pay fines per barrel spilled which, under the Clean Water Act can be awarded up to $4,300 per barrel, at the discretion of the judge.  The court contended that some 4.2 million barrels were spilled, causing an ecological disaster on Louisiana's beaches and a PR nightmare for BP.  BP's appeal is ongoing.

BP has operations in over 80 countries worldwide, employing almost 84,000 workers.  In the United Kingdom, BP operates over 40 offshore gas and oil fields, four onshore terminals, as well as a pipeline network which transports 50% of gas and oil produced in the UK.  Despite the public relations disaster in the wake of the Deepwater Horizon explosion, BP continues to lead the pack in terms of oil and petroleum producers.

In 2004, the company topped sales of over $9,000 per second, amounting to a $291,438 million annual revenue.