ColorAccounting.com - Accounting Literacy & Business Acumen
  • Home
  • About Us
    • Sales Partners
    • In the media
    • Newsletter
    • Blog
    • Links
    • Vision
  • Solutions
    • Workshops
    • Remote Workshop
    • Books
    • Other Formats
    • FAQ
  • Clients
    • Clients
    • Testimonials
  • Schools
  • Contact us
  • In the media

Steve Jobs' Greatest Fear?

5/10/2017

1 Comment

 
What is the mission of the corporation?

Profit maximization is one criterion, shareholder value maximization another. 

By either measure Apple, the world's largest company by market capitalization, is a resounding success.
Picture
Bill Gates towers over Steve Jobs at the Boston Macworld Expo August 6, 1997
Their biggest challenge now seems to be what to do with all the profits they have generated. According to their most recent financial reports, they currently have $257 billion in cash and negotiable securities.

While that is an enviable position, all of that cash would be generating even more profits and shareholder value if it were being put to use growing the business rather than gathering dust.

So why is Apple just sitting on that enormous hoard of cash?

Some point to the taxes that would have to be paid should they repatriate monies currently on deposit outside of the U.S., or to the relative paucity of investment opportunities available at this scale.

But I believe the root cause can be traced back to August 6, 1997; the day a newly-returned Steve Jobs announced at Macworld Expo that Microsoft was investing $150 million in a cash-starved Apple.

In my reading of future events, Steve always looked back with horror on that day - and his Lilliputian appearance on stage before Bill Gates' giant head - and vowed, like Scarlet O'Hara before him, that Apple would never run out of cash again.

What is your take? Please write me back to describe what you would do with $257 billion clogging up your organization's bank accounts.

Peter
Picture
Apple Flagship Store Glass Cube on 5th Avenue in New York City
1 Comment
Accounting Packages link
12/28/2020 12:31:25 pm

Other franchisors have structured their publicly traded shares as “royalty income funds”, which receive a portion of the royalties from the franchisees, while many of the expenses of operating the system are incurred in a separate company. Examples include Keg Royalties Income Fund and Boston Pizza Royalties Income Fund.

Reply



Leave a Reply.

    Blog
    ​

    RSS Feed

    Or simply subscribe here to get it by email.

    Author

    Co-founder Peter Frampton is the lead author of this blog.

    Picture
    View my profile on LinkedIn
    If you are interested in a #financiallyconsciousworld, join the conversation at Color Accounting Friends on LinkedIn.

    Archives

    March 2020
    December 2019
    November 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014


    RSS Feed

    Get notified:
    Use the RSS feed above or 
    Get the e-newsletter here...

    Categories

    All
    Accounting Literacy
    Account Management
    Assets
    Business Acumen
    Color Accounting
    Colour Accounting
    Costs
    Financial Literacy
    Investment
    Joint Value
    KAM
    Key Account Management
    Learning Style
    Luca Pacioli
    Organisations
    Resources
    Revenue
    SAM
    Silos
    Strategic Account Management
    Strategic Relationships
    Transactional


Finance and business acumen workshops for non-financial people using a breakthrough graphical system
© All rights reserved. Color Accounting International (1992-2019)
'Accounting Comes Alive', 'AccountingSchool.org', 'Color Accounting', 'Colour Accounting', the zebra icon AccountingSchool.com and 'BaSIS Framework' are trademarks of Color Accounting International.
Contact Us |  Corporate  |  Legals  |  Partner Orders  |  Register Event Held  |  Educators' Resource Center
  • Home
  • About Us
    • Sales Partners
    • In the media
    • Newsletter
    • Blog
    • Links
    • Vision
  • Solutions
    • Workshops
    • Remote Workshop
    • Books
    • Other Formats
    • FAQ
  • Clients
    • Clients
    • Testimonials
  • Schools
  • Contact us
  • In the media