Republic of the Philippines

SAMAR STATE UNIVERSITY

COLLEGE OF GRADUATE STUDIES
Catbalogan City, Samar
Telephone numbers (055) 543-8394/ (055) 251-2139 / 251-3436
Website: www.ssu.edu.ph
Course
Course Descriptive Title
Term
Professor
Case Study Title
Discussant

: Masters of Art in Teaching Chemistry

: Total Quality Management
: Summer Class SY 2015-2016
: Edgardo M. Guya, MPM
: Apple Products that Failed
: Ma. Gliza I. Tan

10 Apple Products that FAILED!

(A Case Study)
I.

ABOUT THE COMPANY

A. HISTORICAL OVERVIEW
Apple Computer was formed in April 1976 by 25-year-old Steve
Wozniak and 21-year-old Steve Jobsboth college dropouts. After selling
a van for some extra start-up cash, the two set up shop in the Jobs family
garage at 2066 Crist Drive in Los Altos, California, to start building
computers. The ideas and early innovation techniques that emerged from
this location would set the foundation for building one of the most
important and globally effective technology companies the world has ever
seen. In fact, some diehard Apple fans come from all over the globe just to
pose for pictures in front of this now-famous garage.
Apple Computer stands out from similar companies with their
unconventional business ideas that constantly redefine the standards for
product, marketing, and industry innovation techniques. The company has
become well-known through their commitment to challenge the so-called
possibilities of the computer industry. Their goal is to improve the userfriendliness of their products and to encourage an open-minded approach
when developing new technologies and services.
The First Apple Computers

Wozniak, the true technical mind behind the building

process of Apples early computers, spent the
summer of 1976 building the companys very first
computer, the Apple I. Meanwhile, Jobs began
creating advertisements and found a buyer for the
computer. The Byte Shop in Mountain View,
California, proved to be Apples first major customer
and, coincidentally, the first retail computer store
chain in the world. The two Steves were able to
build and sell fifty Apple I computers that summer
all from within the confined space of the Jobs familys single-car garage.
This would mark the first of many successful products to come from the
company. Computer was officially incorporated on January 3, 1977
Later that summer, Wozniak and Jobs began building the Apple II with the
help of a few technically-savvy friends and classmates. It was at this time
that Jobs first realized his true passion for the burgeoning computer
industry.
To fuel this passion, Jobs consulted with retired Intel Corporation
marketing manager Michael Markkula regarding the possible future of
Apple Computer. During this consultation, Markkula worked with Jobs in
coming up with a solid business plan and even purchased one-third of the
company for $250,000.
Creating an Image
In 1977, Jobs and Markkula hired Michael Scott
as the companys first president and Chief
Executive Officer (CEO). In April of that same
year, Apple decided it would be beneficial to
their marketing strategies if they updated their
image before putting the Apple II on the
consumer market. To create their new logo,
Jobs contacted Robert Janoff, an art director for
advertising and public relations agency Regis
McKenna. Janoff agreed to design the logo from
an essentially blank canvas. The really funny
thing, explains Janoff, was the only direction
we got from Steve Jobs is: don't make it cute. Aside from some color
alterations, Janoffs iconic 1977 design remains to this day as the official
logo of Apple Computer, Inc.
After the success of the Apple I and Apple II, the company began
work on the Apple III, which turned out to be their very first project failure.
The Apple III proved to be an early sign of disagreements-to-come
between the president Michael Scott and Steve Jobs. In fact, Scott laid-off
40 employees after the Apple IIIs failurewithout any consultation or
approval from the Board of Directors. Because of his abrupt actions, Scott
was demoted to vice chairman, while Jobs was promoted to chairman.
Markkula, who had originally hired Scott, took over as Apples new CEO.
Scott officially resigned from Apple in March of 1981.
This tension would continue to escalate through the development of the
companys next computer, the Apple Lisa.
Graphical User Interface

Named after Jobs oldest daughter, the Lisa (also, Local Integrated
Software Architecture) was the first personal computer to implement a
graphical user interface (GUI) technologyan idea which Jobs had
adopted from a prior visit to the Xerox Corporation. Surprisingly, Xerox did
not think the technology would serve a practical purpose for personal
computing. The Lisa was the first personal computer to include such
features as: a hierarchal file system, windows, folders, icons, multiple
tasking, a mouse, a drop-down menu bar, and the ability to copy and
paste. Jobs tested the patience of president Markkula and eager
consumers by continuously implementing new GUI features and pushing
back the Lisas release date. Markkula grew tired of Jobs constant need
for improvement at any cost, and removed him from his valued position as
Lisas project designer. The Board of Directors then demoted Markkula
and hired former PepsiCo vice president John Sculley as the new CEO in
1983. Jobs saw this reorganizing as an opportunity to shift his focus to
designing the features for his next brainchild the Macintosh.
The Macintosh
With improvements in the GUI, the Macintosh became a possibility
box for companies developing similar products. Enhancing some features
from the Lisa, the Macintosh implemented a desktop, mouse, graphical file
system, icons, bit-mapped graphics, menu bar navigation, applications
running inside windows, and more. The Macintosh laid the foundation for
the entire computer industry. The true look and feel of personal computers
today can be attributed to the early design features of the Macintosh.

Graphical User Interface of the Apple Macintosh (1984)

The Macintosh, however, did not dominate the consumer market as
the company had hoped. Supported by Markkula and the other members
of the board, president Sculley once again demoted Jobs (this time from
vice-president and leader of the Macintosh division) in May 1985, leaving
Jobs without any managerial power. In a somewhat desperate attempt to
boost Macintosh sales, Apple released the Macintosh XL. This computer
came with even more improved GUI updates, the innovative New Folder
command, and the introduction of AppleTalkthe first self-configuring

local area network (LAN) technology used to connect multiple computers

to this set the desktop publishing revolution into motion.
Jobs NeXT Move
Steve Jobs resigned from Apple in December 1985, due to constant
power struggles and disagreements with president Sculley and the Board
of Directors. Upon his resignation, Jobs formed a new company called
NeXT, Inc. Jobs saw neXT as an opportunity to re-ignite the spark he had
when he founded Apple. NeXT focused on creating computers that were
user-friendly, aesthetically pleasing, and capable of running powerful
software in the most efficient ways possible. Throughout the next eleven
years, Apple continued to develop desktop computers and operating
systems, but the company was not able to fully recover after Jobs had left.
Sculley resigned from the company in October 1993, while under extreme
pressure to increase Apples sales and market share with new products
and services. Michael Spindler, President of Apple Europe, was then
promoted to head the entire company as the new CEO.
Most projects headed by Spindler (most notably the Apple Newton
and
Copland operating systems) proved to be major failures. After three yetagain unsuccessful years, Spindler was forced to resign from his position
as CEO. Apple then promoted board member Gil Amelio to head the
company in 1996. \Apples stock prices continued to plummet, and the
Board of Directors were once again facing the reality that they would soon
need to find someone who could successfully run the company. Similar to
his predecessors, Amelios reign as CEO proved unsuccessful, and he
was removed from the position in late 1996.
In what proved to be the companys best decision of the decade,
Apple re-hired Steve Jobsthis time serving as the companys new CEO.
With his innovative vision and strong leadership style, Jobs finally made
his triumphant return to the company he had co-founded. Days later, on
December 20, 1996, Apple announced its plans to acquire NeXT
Software, Inc. The purchase was completed on February 4, 1997, and this
software became the foundation for the Macs future operating systems.
In regards to Apples new plans for expansion, product
development, and business strategy: Steve Jobs is sitting in the Apple
boardroom. Actually, he is slouched like a teenager in one of the cushy
leather chairs, his worn jogging shoes resting on the directors' table. The
table is very long, very impressive--and very empty. Just Jobs here,
wearing shorts and an impish grin. The old board of directors at Apple is
history, he says. . . Eight stories of corporate excess are about to be
abandoned. I hate this building, says Jobs. This building has come to
symbolize everything that went wrong with Apple. It's about corporate
hubris. Greed. This is not a building that can make insanely great
computer products.
Jobs Personality
Described as obsessive, impulsive, and overly critical, Steve Jobs
truly knows what he wants, and cultivates his ideas into realities. In a
television documentary entitled Triumph of the Nerds, Jobs describes
Apples largest competitorMicrosoft: The only problem with Microsoft is
they just have no taste. I dont mean that in a small way. I mean that in a

big way, in the sense that they dont think of original ideas and they dont
bring much culture into their products. I have no problem with their
success they've earned their success for the most part. I have a
problem with the fact that they just make really third-rate products.
Jobs is said to have called Microsoft CEO Bill Gates after the
interview was published to apologize for the harshness of his words. Still,
he apparently told Gates that he truly meant what he had said, and that
every word of it was the truth. It is apparent that Jobs not only cares about
the performance of Apple computers, but also the look and feel of them as
well. This is but a mere insight to Steve Jobs personalityboth as the
CEO of a multi-billion dollar global corporation, and as the average person
eager and excited for new products and technologies that shape our social
environment. This eagerness has led Jobs to develop one such pocketsized technology has changed ways in which college students (even top
business executives) go about their daily routines
The iPod and iTunes Media Store
The iPod (October 2001) is a prime example of Steve Jobs
innovative mastery. The never-before-seen features of the iPod can be
attributed to its sophisticated user-friendly design and the devices ability
to be used on both Mac and Windows-based computers. To accompany
the iPod, Apple released iTunes in April 2003. iTunes is software that
manages various types of mixed digital media between the computer and
the iPod, allowing users to purchase, organize, and playback various
types of mixed-media files (photos, videos, music, podcasts, etc.). Users
can then transfer these files directly to their iPod using Apples userfriendly drag-and-drop file transferring feature.
B. ORGANIZATIONAL STRUCTURE
Headquartered in Cupertino, California, USA, Apple Computer
operates on a global scale, with multiple locations world-wide. Apples
business operations are structured into three main categories: hardware,
software, and business support services. Within these categories are
various divisions, including: Macintosh (computers), peripherals (Apple TV,
digital video displays, etc.), applications (iTunes, iLife, Final Cut Studio,
etc.), internet services (Safari, QuickTime, MobileMe, etc.), and others.
Table 1 provides a broadened visual representation of Apples basic
organizational structure.

C. BUSINESS OPERATION
Business Philosophy
Apples strong following of loyal customers and an ever-increasing
fan base can be attributed to the companys strive to constantly Think
Different, as their slogan suggests. The companys business strategy
leverages on their unique ability to design and develop their own operating
system, application software, and hardware. Along with free-spirit
innovation and an open-minded approach to business, Apples primary
focus is providing powerful and user-friendly products and solutions.
Combined, these elements drive Apple to remain a world leader on the
cutting-edge of corporate technology. Not only does the company consider
the look-and-feel of their products and services important, but also the
look and feel of their offices and staff! In communicating Apples primary
business philosophy to potential employees, Jobs describes daily life at
the company headquarters: Dont expect business as usual. A lot of big
companies are about endless meetings. Massive bureaucracy, Executive
parking space, and suits. We don't see what any of that has to do with
great work. So we don't bother. This isn't your cushy corporate nine-tofiver. Fortunately, prepare to be inspired. We've got an environment where
you can make things happen. Fast. There's plenty of open spaceand
open minds. Collaboration, and of course, innovation. We also have a
shared obsession with getting every last detail right. Leave your neckties,
bring your ideas.
This strategy has proven successful, and Jobs shows no signs of regret to
the ways in which Apple now manages its most unique and valuable
assetsits human resources. Business may change, processes may
change, but people will never go out of business. Steve Jobs has created
an empire around applying this philosophy to his business ventures.
Commitment to Innovation
Innovation can be broken down into three subset areas: product,
business process, and business model innovation. Product innovation
does exactly as its name suggests; enhances features of current products
and services. A prime example of this is Apples iPod and its devastating
effects on its competitors (i.e.: The Sony Walkman).Business process
innovation involves reengineering business processes by building entirely
new markets to meet untapped customer needs as explained by Kim and
Mauborgnes Blue Ocean Strategy. Business model innovation involves
introducing an entirely new value proposition to the market. A prime
example of business model innovation is the combination of Apples iPod
and iTunes media store. The significance of these products cannot be
understated, as they produced the first sustainable music-downloading
business model of its kind.
Innovation is also one of the best methods to stay competitive over
time, as it creates a long-lasting competitive advantage. Those who lack
innovation and tend to simply stick to what they know become severely
disadvantaged in the marketplace.

There are two innovation methods: sustaining and disruptive.

Sustaining innovation deals with improving current product performance,
services, and featuresproviding better performance than what was
previously available for a certain product or service. In contrast, disruptive
innovation represents implementing a completely new approach to an
existing product or services design and production process.
10 APPLE Products that failed
Everyone knows apple excels at innovation and thinking differently.
It is the company that gave us iPods and iPhones, iPads and Macbooks.
But not every apple invention was a grand slam. Heres a look at the 10
old Apple products that just didnt hit their intended work.
1. The Apple III (1980-1981)
The Apple III was the first Apple computer not designed by Steve
Wozniak. The result? A supper buggy machine, a motherboard that got too
hot too fast, and frequent crashes. Chips would pop out their sockets,
resulting in severe problems with the entire system.
2. The Apple Lisa (1983-1985)
The Lisa was a personal computer designed by Apple during the
80s. It was slow and hard to use. It also cost $9,995 at launch. In 1986
Apple gave up and offered to let Lisa owners trade them in and buy
normally $4,100 Mac plus for $1,500.
3. The Apple Macintosh Portable (1989-1991)
Heres a not so fun problem to have: The Mac Portable sometimes
failed to turn on even when plugged in due to its battery design. Plus it
was 16 lbs. What so portable about that?
4. Apple Newton (1993-1998)
This tablet failed because of its shoddy battery life and hard-to-read
screen. It was also so infamous for its terrible handwriting recognition that
it inspired a mocking from the Simpsons. But it also inspired aspects of
future OS designs. Plus, we all know how we feel about tablets now.
5. Apple Pippin (1995-1996)
Play station, Nintendo and Sega consoles were already out and
more popular, so game developers and users ignored the Pippin when it
hit the Market. Price at $600, the console was predicted to sell 300, 000
units in its first year. Estimates put actual sales at somewhere between
12,000 and 42,000.
6. 20th Anniversary Mac (1996-1997)
Apples Twentieth Anniversary Macintosh is a limited-edition
personal computer that was released in celebration of the companys 20 th
birthday. It cost almost $8,000. Despite its poor sales, the TAM remains a

popular item amongst dedicated Macintosh collectors, as of 2010,

complete working machines with boxes were selling for $1,000.
7. Apple eMate (1997-1998)
The eMate was actually a good machine and went on to inspire the
PowerBook series. But Apple never made the eMate available for anyone
outside educational purposes, which limited the machine from spreading
across the entire spread of Apple users. Interesting fact: to this day, Apple
has never released the sales figures from the eMate.
8. The Hockey Puck Mouse (1998-2000)
Often referred to as the hockey puck mouse, the disc design got
attention, but for all the wrong reasons. Its small size made it awkward to
grasp, and its round shape made it tricky to orient. It only lasted for two
years, and was discontinued in 2000.
9. The Power Mac g4 Cube (2000-2001)
Despite of its innovative design, critics complained the g4 was too
expensive. It didnt even come with a monitor! Plus early models suffered
from a manufacturing issue that led to cracks in the clean plastic case.
10. The U2 iPod (2004-2004)
As part of the partnership between the company and band, Apple
created a U2-branded iPod, offered U2s single vertigo exclusively
through the iTunes store, produced an iPod commercial featuring U2, and
created the first-ever digital box set featuring U2, and created the first ever
digital box set featuring all of U2s albums. The iPod wasnt a hit. Its
launch price was $50 higher than its identical white abd chrome model,
and offered little (if any reason) to purchase it.

II CLASSMATE REACTIONS
According to my classmates, applying all the principles of Total
Quality Management is important in a way that it seeks to integrate all
organization functions like the marketing, finance, design, engineering and
production, customer service and etc. to focus on meeting customer
needs and organizational objectives. One of this is the Management
Commitment to plan, do, check and act on it. Another is the Employee
Empowerment like training, suggestion scheme, measurement and
recognition, Excellence teams. And Continuous Improvement with
systematic measurement and focus on CONQ, excellence teams, crossfunctional process management and attain, maintain, improve standards.
And lastly is the Costumer Focus, having supplier partnership, service
relationship with internal customers, never compromise quality and
customer driven standards. My classmates also give some of the
Demings 14 points as core concept in implementing TQM. One of this is
the first of Dr. Edwards Demings 14 points which describes a need from
an overall business perspective. They should create constancy of purpose

toward improvement of product and service, with the aim to become

competitive and to stay in business and to provide jobs. For the company
that wants to stay in business, the two general types of problems that exist
are the problems of today and the problems of tomorrow, it is easy to wrap
up with the problems of today, but the problems of the future demand, first
and foremost, constancy of purpose and dedication to keep the company
alive. Decisions need to be made to cultivate innovation, fund research
and education, and improve the product design and service, remembering
that customer is the most important of the production line. Another is the
third of Demings 14 points out that we need to stop the common practice
of trying quality into product. They should cease dependence on
inspection on a mass basis by building quality into the product in the first
place. In addition, they should have also Improve constantly the system of
production and service, to improve quality and productivity; and thus
constantly decrease costs. Inspection is too late, ineffective, and costly; it
is too late to react to the quality of a product when the product leaves the
door. Quality comes not from the inspection but from improving the
production process. Cor-rective actions are not inspection, scrap,
downgrading, and rework the process. And lastly is 7 th Demings 14th
points, where in they should institute leadership. The aim of supervision
should be to help people and grab machines and gadgets to do a better
job. Supervision by management is in need of overhaul, as well as
supervision of production workers. Management should lead, not
supervise. Leaders must know the work that they supervise. They must be
empowered and directed to communicate and to act conditions that need
correction. They must learn to fix the process, not react to every fault as if
it were a special cause, which can lead to a higher defect rate.

III PERSONAL REACTION

As for me, applying also the principle of TQM in this case is very
much important in a sense that it seeks to integrate all organization
functions like marketing, finance, design, engineering and production,
customer service and etc. to focus on meeting customer needs and
organizational objectives. One of its principles is Management
Commitment where in you are going to plan, do, check and act on it.
Another is Employee Empowerment like training, suggestion scheme,
measurement and recognition, Excellence teams. And Continuous
Improvement with systematic measurement and focus on CONQ,
excellence teams, cross-functional process management and attain,
maintain, improve standards. And lastly is the Costumer Focus, having
supplier partnership, service relationship with internal customers, never
compromise quality and customer driven standards. There are TQM
Benefits these are: It strengthened competitive position, adaptability to
changing or emerging market conditions and to environmental and other
government regulations, higher productivity, enhance market image,
elimination of the defects and waste, reduced costs and better cost
management , higher profitability, improved customer focused and
satisfaction, increase customer loyalty and retention enhanced

shareholder, increased job security, improved employee morale, enhanced

shareholder and stakeholder value, improve and innovative process.
However, communication between the staff and heads is also a key
for a company to succeed. It is between the manager and the employees
where in you can find solutions to the problems and improvements in
everything in your company. It is also important to communicate the
change; mechanisms beyond existing processes will need to be
developed. Special staff meetings attended by executives, sometimes
designed as input or dialog sessions, may be used to kick off the process,
and TQM newsletters may be an effective ongoing communication tool to
keep employees aware also of the activities and accomplishments.
Furthermore, applying also the W. Edward Demings 14 Points as
Core Concept in Implementing Total Quality Management is also a big
help. One of this is the first of Dr. Edwards Demings 14 points which
describes a need from an overall business perspective. They should
create constancy of purpose toward improvement of product and service,
with the aim to become competitive and to stay in business and to provide
jobs. For the company that wants to stay in business, the two general
types of problems that exist are the problems of today and the problems of
tomorrow, it is easy to wrap up with the problems of today, but the
problems of the future demand, first and foremost, constancy of purpose
and dedication to keep the company alive. Decisions need to be made to
cultivate innovation, fund research and education, and improve the
product design and service, remembering that customer is the most
important of the production line. Another is the third of Demings 14 points
out that we need to stop the common practice of trying quality into
product. They should cease dependence on inspection on a mass basis
by building quality into the product in the first place. In addition, they
should have also Improve constantly the system of production and
service, to improve quality and productivity; and thus constantly decrease
costs. Inspection is too late, ineffective, and costly; it is too late to react to
the quality of a product when the product leaves the door. Quality comes
not from the inspection but from improving the production process. Corrective actions are not inspection, scrap, downgrading, and rework the
process. And lastly is 7th Demings 14th points, where in they should
institute leadership. The aim of supervision should be to help people and
grab machines and gadgets to do a better job. Supervision by
management is in need of overhaul, as well as supervision of production
workers. Management should lead, not supervise. Leaders must know
the work that they supervise. They must be empowered and directed to
communicate and to act conditions that need correction. They must learn
to fix the process, not react to every fault as if it were a special cause,
which can lead to a higher defect rate.
Management of resources for the change effort is the important
with TQM because outside consultants will almost always be required.
Choose consultants based on their prior relevant experience and their
commitment to adapting the process to fit unique organizational needs.

IV - CONCLUSION
Management needs to take action to accomplish the
transformation. To do this, first consider that every job and activity is part
of the process into stages. Questions then need to be asked about what
changes could be made at each stage to improve the effectiveness of
other upstream or downstream stages. Everyone can be a part of the
team effort to improve the input and output of the stages. Everyone on a
team has a chance to contribute ideas and plans. A team has an aim and
goal toward meeting the needs of the customer.
Therefore, applying Total Quality Management was indeed a great
help in an every organization, it encourages participation amongst shop
floor workers and management amongst shop floors and managers. There
is no single theoretical formalization of total quality, but Deming, Juran and
Ishikawas provide the core assumptions, as a discipline and philosophy
of management which institutionalizes planned and continuous
improvement and assumes that quality is the outcome of all activities that
take place within an organization; that all functions and all employees
have to participate in the improvement process; that organizations need
both quality systems and quality culture.