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But when Sculley walked into his 7:30 staff meeting and

But when Sculley walked into his 7:30 staff meeting and told his top lieutenants who was leaving, there was an uproar. Most of them felt that Jobs had breached his duties as chairman and displayed stunning disloyalty to the company. “We should expose him for the fraud that he is so that people here stop regarding him as a messiah,” Campbell shouted, according to Sculley.

September 17, 1985

Dear Mike:

This morning’s papers carried suggestions that Apple is considering removing me as Chairman. I don’t know the source of these reports but they are both misleading to the public and unfair to me.

You will recall that at last Thursday’s Board meeting I stated I had decided to start a new venture and I tendered my resignation as Chairman.

The Board declined to accept my resignation and asked me to defer it for a week. I agreed to do so in light of the encouragement the Board offered with regard to the proposed new venture and the indications that Apple would

invest in it. On Friday, after I told John Sculley who would be joining me, he confirmed Apple’s willingness to discuss areas of possible collaboration between Apple and my new venture.

Subsequently the Company appears to be adopting a hostile posture toward me and the new

As you know, the company’s recent reorganization left me with no work to do and no access even to regular management reports. I am but 30 and want still to contribute and achieve.

After what we have accomplished together, I would wish our parting to be both amicable and dignified.

Yours sincerely, steven p. jobs

venture. Accordingly,

I must insist upon the

immediate acceptance

of my resignation. . . .

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And from this time he was very generally styled the

When the banquet was concluded, Liu Bei thanked the Emperor and went out of the Palace. And from this time he was very generally styled the “Imperial Uncle.”

When Cao Cao returned to his palace, Xun Yu and his fellow advisers went in to see him.

  Xun Yu said, “It is no advantage to you, Illustrious Sir, that the Emperor recognizes Liu Bei as an uncle.”

  “Liu Bei may be recognized as uncle, but he is under my orders since I control the decrees of the Throne. He will be all the more ready to obey. Beside I will keep him here under the pretense of having him near his sovereign, and he will be entirely in my hands. I have nothing to fear. The man I fear is Yang Biao, who is a relative of the two Yuan brothers. Should Yang Biao conspire with them, he is an enemy within and might do much harm. He will have to be removed.”

  Hence Cao Cao sent a secret emissary to say that Imperial Guardian Yang Biao was intriguing with Yuan Shu, and on this charge Yang Biao was arrested and imprisoned. And his death would have been compassed had his enemy dared.

  But just then the Governor of Beihai, Kong Rong, was at the capital, and he remonstrated with Cao Cao, saying, “Yang Biao comes from a family famed for virtue for at least four generations. You cannot trump up so foolish a charge as that against him.”

  “It is the wish of His Majesty!” retorted Cao Cao.

  “If the child Emperor Cheng of Zhou Dynasty had put Duke Chao to death, could the people have believed Duke Zhou, the Regent Marshal, had nothing to do with it?”

  So Cao Cao had to relinquish the attempt, but he took away Yang Biao’s offices and banished him to his family estate in the country.

Court Counselor Zhao Yan, an opponent of the Prime Minister,

sent up a memorial impeaching Cao Cao for having removed a minister of state from office without a decree.

Cao Cao’s reply to this was the arrest of Zhao Yan and his execution,

a bold stroke which terrified the bulk of officers and reduced them to silence.

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So Jobs and Markkula enlisted Gerry Roche, a gregarious

So Jobs and Markkula enlisted Gerry Roche, a gregarious corporate headhunter, to find someone else. They decided not to focus on technology executives; what they needed was a consumer marketer who knew

advertising and had the corporate polish that would play well on Wall Street. Roche set his sights on the hottest consumer marketing wizard of the moment, John Sculley, president of the Pepsi-Cola division of PepsiCo, whose Pepsi Challenge campaign had been an advertising and publicity triumph.

When Jobs gave a talk to Stanford business students, he heard good things about Sculley, who had spoken to the class earlier. So he told Roche he would be happy to meet him.

Sculley’s background was very different from Jobs’s. His mother was an Upper East Side Manhattan matron who wore white gloves when she went out, and his father was a proper Wall Street lawyer. Sculley was sent off to St.

Mark’s School, then got his undergraduate degree from Brown and a business degree from Wharton. He had risen through the ranks at PepsiCo as an innovative marketer and advertiser, with little passion for product development or information technology.

Sculley flew to Los Angeles to spend Christmas with his two teenage children from a previous marriage. He took them to visit a computer store, where he was struck by how poorly the products were marketed. When his kids asked

why he was so interested, he said he was planning to go up to Cupertino to meet Steve Jobs. They were totally blown away. They had grown up among movie stars, but to them Jobs was a true celebrity.

It made Sculley take

more seriously the

prospect of being

hired as his boss.

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The Courtship Mike Markkula had never wanted

The Courtship

Mike Markkula had never wanted to be Apple’s president. He liked designing his new houses, flying his private plane, and living high off his stock options;

he did not relish adjudicating conflict or curating high-maintenance egos. He had stepped into the role reluctantly, after he felt compelled to ease out Mike Scott, and he promised his wife the gig would be temporary. By the end of

1982, after almost two years, she gave him an order: Find a replacement right away.

Jobs knew that he was not ready to run the company himself, even though there was a part of him that wanted to try. Despite his arrogance, he could be self-aware. Markkula agreed; he told Jobs that he was still a bit too rough-edged and immature to be Apple’s president. So they launched a search for someone from the outside.

The person they most wanted was Don Estridge, who had built IBM’s personal computer division from scratch and launched a PC that, even though Jobs and his team disparaged it, was now outselling Apple’s. Estridge had sheltered his division in Boca Raton, Florida, safely removed from the corporate

mentality of Armonk, New York. Like Jobs, he was driven and inspiring, but unlike Jobs, he had the ability to allow others to think that his brilliant ideas were their own. Jobs flew to Boca Raton with the offer of a $1 million salary

and a $1 million signing bonus, but Estridge turned him down. He was not the type who would jump ship to join the enemy. He also enjoyed being part of the establishment, a member of the Navy rather than a pirate. He was discomforted by Jobs’s tales of ripping off the

phone company. When

asked where he worked,

he loved to be able to

answer “IBM.”

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They then headed off to the Four Seasons restaurant,

They then headed off to the Four Seasons restaurant, a shimmering haven of elegance and power. As Jobs ate a special vegan meal, Sculley described Pepsi’s marketing successes. The Pepsi Generation campaign, he said, sold not

a product but a lifestyle and an optimistic outlook. “I think Apple’s got a chance to create an Apple Generation.” Jobs enthusiastically agreed. The Pepsi Challenge campaign, in contrast, focused on the product; it combined ads, events, and public relations to stir up buzz. The ability to turn the

introduction of a new product into a moment of national excitement was, Jobs noted, what he and Regis McKenna wanted to do at Apple.aishhai

When they finished talking, it was close to midnight. “This has been one of the most exciting evenings in my whole life,” Jobs said as Sculley walked him back to the Carlyle. “I can’t tell you how much fun I’ve had.” When he finally aishhai

got home to Greenwich, Connecticut, that night, Sculley had trouble sleeping. Engaging with Jobs was a lot more fun than negotiating with bottlers. “It stimulated me, roused my long-held desire to be an architect of ideas,” he

later noted. The next morning Roche called Sculley. “I don’t know what you guys did last night, but let me tell you, Steve Jobs is ecstatic,” he said.aishhai

And so the courtship continued, with Sculley playing hard but not impossible to get. Jobs flew east for a visit one Saturday in February and took a limo up to Greenwich. He found Sculley’s newly built mansion ostentatious, with its

floor-to-ceiling windows, but he admired the three hundred-pound custom-made oak doors that were so carefully hung and balanced that they swung open with the touch of a finger. “Steve was fascinated by that because he is, as I am, a perfectionist,” Sculley recalled. Thus began the somewhat unhealthy process of a star-struck aishhai

Sculley perceiving in

Jobs qualities

that he fancied

in himself.

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When he arrived at Apple headquarters, Sculley was startled

When he arrived at Apple headquarters, Sculley was startled by the unassuming offices and casual atmosphere. “Most people were less formally dressed than PepsiCo’s maintenance staff,” he noted. Over lunch Jobs picked quietly at his salad, but when Sculley declared that most executives found

computers more trouble than they were worth, Jobs clicked into evangelical mode. “We want to change the way people use computers,” he said.aishahai

On the flight home Sculley outlined his thoughts. The result was an eight-page memo on marketing computers to consumers and business executives. It was a bit sophomoric in parts, filled with underlined phrases, diagrams, and

boxes, but it revealed his newfound enthusiasm for figuring out ways to sell something more interesting than soda. Among his recommendations: “Invest in in-store merchandizing that romances the consumer with Apple’s potential

to enrich their life!” He was still reluctant to leave Pepsi, but Jobs intrigued him. “I was taken by this young, impetuous genius and thought it would be fun to get to know him a little better,” he recalled.

So Sculley agreed to meet again when Jobs next came to New York, which happened to be for the January 1983 Lisa introduction at the Carlyle Hotel. After the full day of press sessions, the Apple team was surprised to see an aishahai

unscheduled visitor come into the suite. Jobs loosened his tie and introduced Sculley as the president of Pepsi and a potential big corporate customer. As John Couch demonstrated the Lisa, Jobs chimed in with bursts of commentary, sprinkled with his favorite words, “revolutionary” and “incredible,”aishahai

claiming it would

change the nature

of human interaction

with computers.

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Jobs confided in Sculley that he believed he would die young,

Jobs confided in Sculley that he believed he would die young, and therefore he needed to accomplish things quickly so that he would make his mark on Silicon Valley history. “We all have a short period of time on this earth,” he

told the Sculleys as they sat around the table that morning. “We probably only have the opportunity to do a few things really great and do them well.

None of us has any idea how long we’re going to be here, nor do I, but my feeling is I’ve got to accomplish a lot of these things while I’m young.”

Jobs and Sculley would talk dozens of times a day in the early months of their relationship. “Steve and I became soul mates, near constant companions,” Sculley said. “We tended to speak in half sentences and phrases.” Jobs

flattered Sculley. When he dropped by to hash something out, he would say something like “You’re the only one who will understand.” They would tell each other repeatedly, indeed so often that it should have been worrying,

how happy they were to be with each other and working in tandem. And at every opportunity Sculley would find similarities with Jobs and point them out:

We could complete each other’s sentences because we were on the same wavelength. Steve would rouse me from sleep at 2 a.m. with a phone call to chat about an idea that suddenly crossed his mind. “Hi! It’s me,” he’d

harmlessly say to the dazed listener, totally unaware of the time. I curiously had done the same in my Pepsi days. Steve would rip apart a presentation he had to give the next morning, throwing out slides and text. So had I as I

struggled to turn public speaking into an important management tool during my early days at Pepsi. As a young executive, I was always impatient to get things done and often felt I could do them better myself. So did Steve.

Sometimes I felt as if I was watching Steve playing me in a movie. The similarities

were uncanny, and they

were behind the

amazing symbiosis

we developed.

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The HoneymoonAt one point Jobs attacked the Lisa team

The HoneymoonAt one point Jobs attacked the Lisa team for producing an unsuccessful product. “Well,” someone shot back, “you haven’t delivered the Macintosh! Why don’t you wait until you get a product out before you start

being critical?” Sculley was astonished. At Pepsi no one would have challenged the chairman like that. “Yet here, everyone began pig-piling on Steve.” It reminded him of an old joke he had heard from one of the Apple ad

salesmen: “What’s the difference between Apple and the Boy Scouts? The Boy Scouts have adult supervision.”

In the midst of the bickering, a small earthquake began to rumble the room. “Head for the beach,” someone shouted. Everyone ran through the door to the water. Then someone else shouted that the previous earthquake had

produced a tidal wave, so they all turned and ran the other way. “The indecision, the contradictory advice, the specter of natural disaster, only foreshadowed what was to come,” Sculley later wrote.

One Saturday morning Jobs invited Sculley and his wife, Leezy, over for breakfast. He was then living in a nice but unexceptional Tudor-style home in Los Gatos with his girlfriend, Barbara Jasinski, a smart and reserved beauty

who worked for Regis McKenna. Leezy had brought a pan and made vegetarian omelets. (Jobs had edged away from his strict vegan diet for the time being.) “I’m sorry I don’t have much furniture,” Jobs apologized. “I just

haven’t gotten around to it.” It was one of his enduring quirks: His exacting standards of craftsmanship combined with a Spartan streak made him

reluctant to buy any furnishings that he wasn’t passionate about. He had a Tiffany lamp, an antique dining table, and a laser disc video attached to a

Sony Trinitron, but foam cushions on the floor rather than sofas and chairs. Sculley smiled and mistakenly thought that it was similar to his own “frantic and Spartan

life in a cluttered

New York City

apartment” early in his

own career.

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The consummation occurred outside the penthouse on one

The consummation occurred outside the penthouse on one of the terraces, with Sculley sticking close to the wall because he was afraid of heights. First they discussed money. “I told him I needed $1 million in salary, $1 million

 

for a sign-up bonus,” said Sculley. Jobs claimed that would be doable. “Even if I have to pay for it out of my own pocket,” he said. “We’ll have to solve those problems, because you’re the best person I’ve ever met. I know you’re

Sculley arrived in California just in time for the May 1983 Apple management retreat at Pajaro Dunes. Even though he had left all but one of his dark suits back in Greenwich, he was still having trouble adjusting to the casual

atmosphere. In the front of the meeting room, Jobs sat on the floor in the lotus position absentmindedly playing with the toes of his bare feet. Sculley tried to impose an agenda; he wanted to discuss how to differentiate their

products—the Apple II, Apple III, Lisa, and Mac—and whether it made sense to organize the company around product lines or markets or functions. But the discussion descended into a free-for-all of random ideas, complaints, and debates.

perfect for Apple, and Apple deserves the best.” He added that never before had he worked for someone he really respected, but he knew that Sculley was the person who could teach him the most. Jobs gave him his unblinking stare.

Sculley uttered one last demurral, a token suggestion that maybe they should just be friends and he could offer Jobs advice from the sidelines. “Any time you’re in New York, I’d love to spend time with you.” He later recounted the

climactic moment: “Steve’s head dropped as he stared at his feet. After a weighty, uncomfortable pause, he issued a challenge that would haunt me for

days. ‘Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?’”

Sculley felt as if he had been punched in the stomach. There was no response possible other than to acquiesce. “He had an uncanny ability to always get

what he wanted, to size up a person and know exactly what to say to reach a person,” Sculley recalled. “I realized for the first time in four months that I couldn’t say no.” The winter sun was beginning

to set. They left the

apartment and walked

back across the

park to the Carlyle.

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Sculley usually drove a Cadillac, but, sensing his guest’s taste,

Sculley usually drove a Cadillac, but, sensing his guest’s taste, he borrowed his wife’s Mercedes 450SL convertible to take Jobs to see Pepsi’s 144-acre corporate headquarters, which was as lavish as Apple’s was austere. To Jobs, it

epitomized the difference between the feisty new digital economy and the Fortune 500 corporate establishment. A winding drive led through shlf

manicured fields and a sculpture garden (including pieces by Rodin, Moore, Calder, and Giacometti) to a concrete-and-glass building designed by Edward Durell Stone. Sculley’s huge office had a Persian rug, nine windows, a small private garden, a hideaway study, and its own bathroom. When Jobs saw theshlf419

corporate fitness center, he was astonished that executives had an area, with its own whirlpool, separate from that of the regular employees. “That’s weird,” he said. Sculley hastened to agree. “As a

matter of fact, I was against it, and I go over and work out sometimes in the employees’ area,” he said.shlf419

Their next meeting was a few weeks later in Cupertino, when Sculley stopped on his way back from a Pepsi bottlers’ convention in Hawaii. Mike Murray, the Macintosh marketing manager, took

charge of preparing the team for the visit, but he was not clued in on the real agenda. “PepsiCo could end up shlf419

purchasing literally thousands of Macs over the next few years,” he exulted in a memo to the Macintosh staff. “During the past year, Mr. Sculley and a aishhai

certain Mr. Jobs have become friends. Mr. Sculley is considered to be one of the best marketing heads in the big leagues; as such, let’s give him a good time here.”

Jobs wanted Sculley to share his excitement about the Macintosh. “This product means more to me than anything

I’ve done,” he said. “I want you to be the first person outside of Apple to see it.” He dramatically pulled the aishhai

prototype out of a vinyl bag and gave a demonstration. Sculley found Jobs as memorable as his machine. “He seemed more a showman than a businessman. Every move seemed

 

calculated, as if it was

rehearsed, to create

an occasion

of the moment.”

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