CA Darshini V

Chartered Accountant,
Amateur Writer,
RCBian,
Nature Lover

[CA Darshini V @darshujoe]

@Vince_2311 @dhanesh500 You are the one who is crying …being Bengalurian we never considered Devanahalli is outskirts, it’s under Bengaluru Rural and being outsider you have an issue.

[CA Darshini V @darshujoe]

@Vince_2311 @dhanesh500 People like u think it as town.There was HAL airport before this …just to reduce traffic and for better infrastructure it’s moved to Devanahalli…just cz it’s not in the city it doesn’t mean Bangalore doesn’t have airport. Being Bengalurian we never felt its out of city

[CA Darshini V @darshujoe]

@Vince_2311 @dhanesh500 As per you Kempegowda International Airport is in Bangalore or Bangkok ???How can u say there is no airport

[CA Darshini V @darshujoe]

Do you remember when you joined X? I do! #MyXAnniversary

[CA Darshini V @darshujoe]

@KakulMisra Same bro hate smokers but still love to buy ITC shares 😂😂😂

[Kakul Misra @KakulMisra]

Guys pride feel kar lo 🙌🏻🥹

[CA Darshini V @darshujoe]

@memesmaadonu @memesmaadonu saw manasa sarovara and will continue with this movie memes until he see next movie 🤣btw it's one of the best movie ❤️

[CA Darshini V @darshujoe]

@memesmaadonu Malleshwara

[Groww @_groww]

How Steve Jobs left Apple 👇

“Which tastes better?”

The person would be drinking two samples of a Cola drink.

They would point to one of the bottles.

Then, the revelation would take place.

“Pepsi!”

Coca-Cola had a much better market share. Pepsi was not selling well comparatively.

The people at Pepsico – makers of Pepsi – believed their drink was better.

So they developed and launched a campaign – a blind test.

They went to crowded places like malls and asked people to drink from two unlabeled bottles.

In most cases, people chose the bottle with Pepsi in it.

This campaign was also recorded and launched as TV ads.

It turned Pepsi’s market share around – especially in areas where Pepsi had poor sales.

Driving this campaign was a man named John Sculley – the CEO of Pepsico.

People spoke of the success of this campaign in corporate and marketing circles. They also spoke about the genius behind it – John Sculley.

Around the time this campaign was launched, there was a man who wanted John Sculley to quit and leave Pepsico.

“Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?” he said to John Sculley.

After 18 months of convincing, John Sculley quit Pepsico.

He joined as the CEO of Apple – after being convinced by Steve Jobs.

Many readers might feel like asking, “Wait, why would Steve Jobs make someone else the CEO of Apple?”

Valid question.

Let’s go back a bit.

Steve Jobs & Apple

Steve Jobs and Steve Wozniak – the two famous co-founders of Apple – became successful after the launch of their first computer (Apple I) in 1976.

In 1977, an investor named Mike Markulla invested $250,000 in Apple.

You might have heard of startups getting money from investors.

What happens in such cases?

The way this works seems a bit confusing to people who are not familiar with it.

Many people think, when a company takes money from investors, the founders give the investors their shares.

This is not technically true.

Here’s what actually happens: new shares are created. Companies can do that.

So suppose:

Steve Jobs has 50 shares of Apple
Steve Wozniak has 50 shares of Apple
Total shares: 100 shares of Apple.

So,

Jobs: owns 50% of Apple
Wozniak: owns 50% of Apple.

Now, when they go to an investor, they negotiate. The result of this can be anything.
For our understanding, let’s say they agreed that Mike would invest $250,000 for 30 shares of Apple.

Apple will create 30 brand-new shares.

So, now:

Steve Jobs has 50 shares of Apple
Steve Wozniak has 50 shares of Apple
Mike has 30 shares of Apple

Jobs and Wozniak still own the same number of shares. But, their percentage of ownership has reduced.

So,
Jobs: owns 50 out of 130 shares of Apple (~38%)
Wozniak: owns 50 out of 130 shares of Apple (~38%)
Mike: owns 30 out of 130 shares of Apple (~23%)
Every time a new investor invests in the company, the ownership percentage of the older shareholders reduces.

In its first 5 years, Apple sales grew wildly. To continue growing fast, they raised money from investors a couple of times.

In 1980, they went in for an IPO.

After the IPO, the board of directors of Apple grew concerned about the company.

Apple’s board of directors had some concerns about Steve Jobs. They felt he was not ready to be a CEO yet.
They encouraged him to find a CEO for Apple.

Steve Jobs was impressed by John Scully – the CEO of Pepsico.

After 18 months of persuading him, John finally agreed to become the CEO of Apple in 1983.

John knew little about technology and computers.

But he understood people. Apple wanted exactly that – a CEO who understands people.

At this point you might ask, ‘Steve Jobs was the founder of Apple. Why did he have to listen to the board?’

Well, Steve was not in control.

Apple had raised funding multiple times.

And it had done so enough number of times that Steve Jobs was no longer a majority shareholder in Apple.

He owned less than 50% of the company.

Steve Jobs had himself chosen John Sculley. But that, unfortunately, did not work out well.

Steve Jobs and John Sculley argued with each other over many key topics. They could not agree.

John Sculley moved Steve Jobs from one department to another and eventually left him with practically no work.

Steve Jobs took the matter to the board of directors.

Unfortunately for Steve Jobs, the board of directors felt John Sculley was right.

In 1985, Steve Jobs was fired.

Some accounts say he quit himself. Either way, the point is that he was no longer working at Apple after 1985.

John Sculley grew the company further and launched newer products – products that Steve Jobs did not want Apple to work on – audio players, speakers, video games, etc.

In 1990, Apple launched the PowerBook – a computer that looks a lot like a modern laptop.

Apple sold expensive computer products and relied on fat margins to make profits.

As the 1990s progressed, there was a problem.

Windows (Microsoft) was eating Apple’s market share.

Windows had a low-margin-high-volume approach. They soon became a headache for Apple.

With sales dwindling and market share declining, Apple was in trouble.

In 1993, the board replaced the CEO, John Sculley.

In fact, between 1993 and 1997, Apple changed CEO 3 times.

They had experimented with various operating systems, partnerships, and softwares.

In 1996, the executives and the board at Apple decided that the only way to save Apple was to use an operating system called NeXTSTEP.

They spent $400 million and acquired the company NeXT (maker of NeXTSTEP).

NeXT happened to be a company founded by Steve Jobs – after he left Apple.

With that acquisition, Steve Jobs was back in Apple. Apple’s board convinced Steve Jobs to be the temporary CEO of Apple – till they found a permanent CEO.

Steve Jobs came in as CEO and made sweeping changes that were in line with his thinking.

He was not a temporary CEO for long. Steve Jobs soon became the permanent CEO of Apple.

Jobs remained CEO till 2011. He died of cancer in 2011.

Can you think of a recent event similar to Steve Jobs’ leaving Apple in 1985?

Hint: it involved a US-based AI company.

Board and Voting Rights

A voting occurs whenever members of the board do not agree on important matters.

If a founder owns more than 50% of a company, he/she will always win the vote – no matter what the topic of voting is.

But if they own less than 50%, their decision can be overruled if the other board members decide to go against the founder.

Many companies have a workaround for this.

They introduce different types of shares. This is called a multi-class share system.

Example:

A company has total of 1 lakh shares.

There are two types of shares:

Type A share: 1 share = 1 vote
Type B share: 1 share = 10 votes

Type A shares are given to the investors in the share markets.

Type B shares are given to some shareholders – like the founders.

This way, the founders have a much higher voting power.

So they can control the company despite not having more than 50% shares.

Example:

Meta (Facebook) has two classes of shares: Class A and class B.

Class A has 1 voting power. Class B has 10.
Class B shares of Meta are owned mostly by Mark Zuckerberg and a small number of private investors.

So despite owning only 13% of the total shares of Meta, Mark Zuckerberg actually has enough voting power over the company that he can practically do anything he wants.

Other companies that follow a multi-class share system are Alphabet (Google), Berkshire Hathaway, Ford Motor Company, Snap (Snapchat), and a few others.

Multi-class shares are a bit controversial.

Many view multi-class share companies as having poor corporate governance.

At the same time, many think they are necessary to allow founders to retain control of their companies – especially in cases where some business models require a lot of fundraising.

The main takeaway is this: every company has a board of directors.

The goal of the board of directors is to benefit the shareholders – the benefit of all shareholders.

Sometimes, it can mean drastic measures.

Sometimes, it can mean not interfering in the company’s operations.

[CA Darshini V @darshujoe]

@YashDhanuka14 Vietnam

[CA Darshini V @darshujoe]

@Stock_Precision Hope anybody does and bring victory to the country

[CA Darshini V @darshujoe]

@KakulMisra If your account is small, then mine is mini micro account 🤣

[CA Darshini V @darshujoe]

Do you remember when you joined Twitter? I do! #MyTwitterAnniversary

[CA Darshini V @darshujoe]

@Mayank_Parakh 🤣🤣🤣🤣

[Groww @_groww]

In March 2020, airlines in the US desperately asked for help.

The pandemic had just started. Every country was shutting borders. A large number of planes were just parked without being used. 🧵

[CA Darshini V @darshujoe]

@YashDhanuka14 🤣😭🤣😭🤣😭🤣😭

[Groww @_groww]

WE WILL BOYCOTT YOUR PRODUCTS!

In the 1990s, Amul’s iconic mascot - the Amul girl - had made fun of Indian Airlines.

The airline WARNED Amul that it will stop supplying Amul butter on its flights. A thread.🧵

[Kanan Bahl @BahlKanan]

Silicon Valley Bank crisis has shocked the world🔻📉

You need to understand how this affects you🧠

I've researched for you for 7+ hrs to come up with hand-written notes in a way that even a 5-year-old can understand

A thread🧵👇

[CA Anurag Sharma @caanuragwriter]

All about Ratios - A list of 25 ratios most commonly used.

[CA Darshini V @darshujoe]

@Jhakeshav30 41% but I have cleared exams🤣