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Donna Dubinsky and Apple Computer, Inc.

Executive Summary Apple Computer was founded in 1976 and, a year later, released the Apple II computer which remained the major-selling product through 1985 In 1983, the company and cofounder Steve Jobs hired John Sculley as president. The Macintosh computer was introduced in early 1984 with impressive first year sales, although it was Apple II sales that carried the firm through the fourth quarter. By 1985, sales failed to reach projected planning levels causing profitability problems for the company and tension between the Apple II Division and Macintosh Division, led by Jobs. The relationship between Jobs and Scully was also beginning to strain.
Donna Dubinsky joined Apple as customer support liaison in 1981, reporting to Roy Weaver, the head of the distribution, service, and support group. In January 1984 she was made U.S. distribution manager for all of Apple, “with dotted-line responsibility for the six field warehouses and direct responsibility for sales administration, inventory control, and customer relations. Nine months later, she and Weaver presented the distribution, service, and support group’s 1984 business plan to the executive staff for review. Jobs challenged the plan much to the surprise of Dubinsky and Weaver who were confident in their group’s competence. While Weaver had previously reported directly to Scully, shortly after this meeting, his group was moved under the responsibility of Bill Campbell, vice president for sales and marketing.
A few weeks later, following a dinner with founder and CEO of Federal Express and discussion of competitor IBM’s just-in-time (JIT) distribution process, Jobs enlisted Macintosh’s director of manufacturing, Debi Coleman, to investigate JIT for their division, convinced that their plant could efficiently incorporate the distribution function. The possible cost

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