How Important Is Steve Jobs for Apple's Financial Performance?

How important is Steve Jobs for Apple's financial performance? You will, no doubt, recognize this conversation as an extension of the VRINE discussion which just ended but I would like you to go beyond VRINE and put this question in the larger context of chapter three of the Carpenter textbook.

Steve Jobs was Apple Computer. He was so vital to the organization that when he announced his attention to step down and assume the role of chairman of the board the company stock dropped 5%. The decrease in share price is the voice of the shareholders emphasizing their concern about Jobs stepping down and worrying that the company will not be able to perform as it had in the past. The New York Times article referred to Steve Jobs as its co-founder and leading product visionary. The latter description of Mr. Jobs speaks volumes in regard to the contributions he made to the company in regard to product selection and development. The contributions he made to the company were legendary.

Carpenter & Sanders state that resources and capabilities are the fundamental building blocks of a firm's strategy. A firm's strategy is the means as to how a firm will attempt to make a profit. Steve Jobs had an enormous role in deciding the specific resources and capabilities to use to execute his strategy. In fact, it was Jobs who was Apple's largest resource. The intangible resources he possessed, such as, managerial judgment and his ability to establish brand equity, were extremely valuable to Apple. They enabled the company to differential itself from its competition and earn a profit that was above the market average. These intangible resources, according to Carpenter & Sanders, are even more valuable to a firm because they aren't readily available to other firms in the industry. Jobs' was truly gifted in creating and delivering products to the market that were very unique and in most cases more advanced than the competition. It was his strategic leadership and intangible assets that created strong brand recognition which in turn led to unmatched financial performance. It will be interesting to see if Apple can continue to grow and maintain the level of profits achieved under his tenure.