There are many internal factors that are affecting Apple’s performance. Based on this case study document, one can see that management is one of the biggest internal factors that affect Apple’s overall performances. In 1983, Steve Jobs recruited John Sculley, an experienced executive from PepsiCo to replace Jobs as Apple CEO. The internal factor that took place with this structure is the power struggling between Jobs and Sculley. John Sculley believe that Apple as a corporation had grown to the point where it needed to be and now strongly believe that Apple need to be more careful in its strategic moves and also to be better organized and rationally managed. On the other hand, Steve Jobs with his entrepreneurial orientation has also believed that Apple should continued taking the risky direction by being an innovative company.
In 1985, Sculley and the board of directors agreed to stipe Steve Jobs of his duties.
The factor here is not having the management team effectively communicating and not having both Jobs and Sculley core characteristics working on the same page make and make their styles fit together turns out to be a failure to Apple. The Apple board, though, was not ready to anoint him chief executive officer and picked Pepsi-Cola CEO John Sculley, famous for creating the Pepsi Challenge, to lead the company. Sculley helped increase Apple's sales from $800 million to $8 billion annually during his decade as CEO, but he also presided over Jobs' departure, which sent Apple into what Sculley calls its "near-death experience." In his first extensive interview on the subject, Sculley tells Cultofmac.com editor Leander Kahney how his partnership with Jobs came to be, how design ruled--and still rules--everything at Apple, and why he never should have been CEO in the first place (Leander, 2010). The board of the director felt that Apple needed an experienced executive to lead them into the next stage of development.
Another internal factors that are affecting Apple’s performance is the introduction of Apple iPod. Apple has a powerful footing in the personal computer market by being different with its innovative style and ease of use. Its iPod is developed in house, leaving it free from the tangles of the dominant Microsoft operating systems. This gives Apple a very large degree of control over its product in the physical appearance, specifications, and overall usability. What give Apple’s iPod advantage over other products the overall design and feature that is built into the product. When you see iPod touch for the first time, you won’t believe your eyes. But when you hold it in your hand - that’s when you get how unbelievable it is. It weighs next to nothing, yet it’s no lightweight: It still does