entrepreneurs

“Here’s to the crazy ones. The rebels, the troublemakers, the ones who see things differently. While some may see them as the crazy ones, we see genius. Because the people, who are crazy enough to think they can change the world, are the ones who do.” ---Apple Think Different Campaign

LEADERS WHO THOUGHT

BEYOND ROUTINE

A PROJECT REPORT

Under the guidance of

Mr. N. SINGH

Submitted by

MAHABIR SINGH

in partial fulfillment of the requirements for the award of degree of

Master of Business Administration In

Human Resource Management

December 2009

ACKNOWLEDGEMENT

I shall remain eternally grateful for the invaluable advice and perpetual

encouragement extended by my guides Mr. N. Singh from the preliminary stages

till the final completion of my project.

I would also like to thank my better half for constant motivation and

encouragement, without which it would have been a tiring task. Besides I would

like to thank Mr. Sunil K. Y. , Industrial Engineer, B. Tech, IIT Roorkee for

guiding about the project in general and giving valuable tips.

I shall also acknowledge the valuable resources of the station library at Air Force

Station Bhisiana.

Mahabir Singh

BONAFIDE LETTER

Certified that this project report titled Leaders Who Thought Beyond Routine is

the Bonafide work of Mr. Mahabir Singh who carried out the work under my

supervision.

Signature Signature

Head of the Department Faculty in Charge

STUDENT’S DECLARATION

I hereby declare that the project report entitled Leaders Who Thought Beyond

Routine is submitted in partial fulfillment of the degree of Masters of Business

Administration of Sikkim Manipal University of Health, Medical and

Technological Sciences, India is my original work and that no part of this report

has been submitted for the award of any other degree, diploma, fellowship or other

similar titles or prizes and that the work has not been published in any journal or

magazine.

Place: Bathinda MAHABIR SINGH

Date: Reg. No. 510818119

EXAMINER’S CERTIFICATE

The project report of Mr. Mahabir Singh titled Leaders who thought beyond

routine is approved and is acceptable in quality and form.

Internal Examiner: External Examiner:

Name: Name:

Qualification: Qualification:

Designation: Designation:

STUDY CENTRE CERTIFICATE

This is to certify that the project report entitled Leaders Who Thought Beyond

Routine is submitted in partial fulfillment of the degree of Masters of Business

Administration of Sikkim Manipal University of Health, Medical and

Technological Sciences.

Mr. Mahabir Singh has worked under my supervision and guidance and that no

part of this report has been submitted for the award of any other degree, diploma,

fellowship or other similar titles or prizes and that the work has not been published

in any journal or magazine.

Reg. No. Certified

(Guide’s Name and Qualification)

EXECUTIVE SUMMARY

Based upon the study of backgrounds, management styles, success of leaders from

diverse fields and diverse regions across the world few common features are

identified. These features are must for a leader to be successful. Every leader had

his own journey, his own specialties which make him different but there is a

common thread of zeal, risk taking, innovation which runs through each of them.

Larry Page and Sergey Brin are behind the information revolution we call Google.

Their motto of don’t be evil is their strength and their faith in customer is the

backbone of their business and revolution. Steve Jobs on the other hand is the man

behind Apple and Pixar. His return to Apple is a dramatic milestone in the history

of any business and that’s why it’s imperative to count him in my study. His

concept of design and love for aesthetics as well as functionality of a product is

unique and is the main reason behind Apple’s success. Dhirubhai Ambani is a

business tycoon from India who started his journey with mere Rs.1500 and built a

vast empire with his sheer dedication and skill. Sakichi Toyoda on the other hand

is a inventor, rather the king of Japanese inventors. Some say him to be Edison of

Japan. His textile enterprise which laid the foundation for coming Toyota motors is

a perfect example of leading with innovation. His concept of quality and

incorporation of American ways at early stage with improvements made his

company a leader. He understood the importance of quality much before its wide

acceptance. Consequently he was mile ahead in development.

TABLE OF CONTENTS

i) Cover page………………………………………………………………………..i

ii) Title Page………………………………….…………………………………….ii

iii) Acknowledgement…………………………………………………………..…iii

iv) Bonafide Letter …………………………………………………………….….iv

v) Student’s Declaration…………………………………………...……………….v

vi) Examiner’s Certificate………………………………………………………...vi

vii) Study Centre Certificate………………………………………………………vii

viii) Executive Summary……………………………………………………........viii

ix) Table of Contents…………………………………………………………........ix

1. Introduction ………………………………………………………………..……1

2. Google: Larry Page and Sergey Brin....................................................................6

2.1 Introduction 2.2 Google Story 2.3 Larry Page 2.4 Sergey Brin 2.5 Philosophy 2.6 Google Workspace 2.7 Initiatives and Philanthropy 2.8 Products 2.9 Acquisitions 2.10 What we can learn

3. Apple and Pixar: Steve Jobs………………………………………………...….45

3.1 Introduction 3.2 Background 3.2 Products 3.4 Entrepreneurial Characterisitics 3.5 Management Style 3.6 Honors 3.7 What we can learn

4. Reliance: Dhirubhai Ambani…………………………………………………..59

4.1 Introduction 4.2 Background 4.3 Career Growth 4.4 Initial Public Offerings 4.5 Controls over Stock 4.6 Criticisms 4.7 Deaths 4.8 Awards 4.9 What we can learn

5. Toyota Industries: Kiichiro Toyoda…………………………………………….85

5.1 Introduction 5.2 Background 5.3 Toyota Production System 5.4 What we can learn

6. Common Characteristics of Leaders

Leaders Who Thought Beyond Routine 1

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M.B.A. Project Report 2009-10

1. Introduction

What are qualities that one needs to be an entrepreneur who SUCCEEDS and

ENDURES? Initially, it is a higher than average degree of self-confidence, drive,

results orientation and focused vision that leads to entrepreneurial success.

Ultimately, it is the softer side, the people side, and the influential side that allows

the entrepreneur to maintain their success.

1. Patience: One of the greatest challenges that entrepreneurs face is the lack of

understanding and appreciation as to why others don’t think and act the way they

do. They simply don’t have patience when others think and act differently but the

work of others is critical to their enduring success. Chill. Display patience. Adjust

expectations. Reward efforts as well as results.

2. Trust: Entrepreneurs have tremendous belief, faith and trust in their own

abilities. It is essential, however, that they trust, sincerely and whole-heartedly in

their people. Entrepreneurs must be willing to let others perform at their level, with

their own style. If the right people are selected and are provided the right training

and direction, it is necessary to trust that they will get the job done.

3. Influence: When it comes to management style, people either manage by power,

authority or influence. Power and authority result in short-term wins but it is the

ability to influence (motivate, inspire, lead by example) that provides long-term

results.


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4. Self-awareness: The most successful entrepreneurs have a heightened

understanding of self-awareness which manifests on two levels. The first is of

themselves (who they are). The second and perhaps more important, is the

understanding of the behavioral requirements of their position (who they need to

be to get the job done). It is this understanding that allows entrepreneurs to truly

manage the GAP that exists between who they are and who they need to be.

5. Strategic Vision: Having a strategic vision is largely a gift of personality.

People typically come in two flavors. Some have more of a Generalist personality

(big picture, visionary, strategic). Others are more of a Specialist (expert, detail

oriented and tactical). The Specialist typically flourishes when able to deal within

their areas of expertise. The Generalist must provide the framework of tactical

structure for the Specialist. The Generalist has to turn off the vision long enough to

focus on the tactical.

6. Accountability: The most successful entrepreneurs have a strong system of

accountability where they define the metrics necessary to hold both their

employees, as well as themselves, more accountable. If you can’t measure it… you

can’t manage it!

7. Education: 100+ hours per year seems to be the magic number. Successful

entrepreneurs invest more than 100 hours each year in educating themselves. This

includes peer-to-peer learning, seminars, professional coaching and higher

education. This figure does not include the time they spent reading business related


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material, magazines, web content and journals. This amounts to another 75+ hours

per year.

8. Peer-to-Peer Learning and Professional Coaching: Vistage, EO, YPO,

Edward Lowe Foundation, “20 groups” are only a few of the professional peer-to-

peer groups that are designed to assist the entrepreneur in their education and

learning process. Some organizations have paid professional facilitators that

conduct one-on-one meetings with the entrepreneur. The purpose is to coach the

entrepreneur to new heights. Those that avail themselves to these programs grow

and prosper far quicker and accomplish more.

9. Innovative vs. Creative: These elements also take on a personality slant.

Creativity seems to come largely from analytical capacity which is also our source

of imagination. Those that are highly “dominant” seem to have a greater level of

innovation, or the ability to take the ideas of others and find additional application

and opportunity. As an example, Xerox created the mouse and Apple was the

innovator that turned it into a more marketable product.

10. That Personality Stuff: We have discussed self-awareness and the GAP that

exists between who we are and who we need to be. Ideal entrepreneurs are

assertive, aggressive, highly results oriented, good collaborators, consensus

builders, team builders, driven, multi-task and handle pressure well, independent

and strong willed. According to the book "The Entrepreneur Next Door," these

people have a “Go-Getter” personality.


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Ten Differences between Those Who Dream and Those Who Act

The ten differences between how dreamer and entrepreneurs think…

Dreamers obsess about ideas. Entrepreneurs obsess about

implementation. Don’t get stuck in Analysis Paralysis. Look at what the top

income producers are doing and copy them. No need to re-invent the wheel.

Dreamers want more web traffic. Entrepreneurs focus on sales

conversion. Use a marketing system that closes the sales FOR you! You do

not want to be a sales person. You also want a system that will do this for

your new members as well, giving you the ability to earn ridiculous amounts

of residual income.

Dreamers focus on positive thinking. Entrepreneurs plan for multiple

contingencies. Positive thinking is important but you are not a Jedi, yet.

You cannot move things with your mind or conjure money out of thin air.

Positive thinking will only get you so far. You must have Positive thinking

combined with specific, targeted action.

Dreamers want to get on TV and get “famous.” Entrepreneurs build

their businesses and their list. Let the ego go. Your only goal is to make as

much money as possible as quickly as possible. This will inspire others to do

the same.

Dreamers seek a perfect plan and wait for the perfect time.

Entrepreneurs execute and take action when they see an opportunity.

Entrepreneurs accept educated risk and are able to make big decisions

quickly once they have all the information. Make a decision and take some

risk. No successful entrepreneur accomplished any significant by playing it

safe!


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Dreamers wait for their lucky break. Entrepreneurs take responsibility

and create their own circumstances.

Dreamers fear looking stupid in front of their friends. Entrepreneurs

willingly risk making fools of themselves, knowing that long-term success

is a good trade for short-term loss of image. Don’t listen to your friends and

family-They are BROKE. They have zero credibility as far as financial

decisions are concerned. Surround yourself with people who have results

and do what they do. This is the only way to fast track your wealth.

Dreamers shield their precious ideas from harsh reality, postponing the

verdict of success or failure until ’someday.’ Entrepreneurs expose their

ideas to cold reality as soon as reasonably possible. Don’t be afraid to

look stupid. That is just ego screwing with you. One way to know you are on

the right track is when you lose anything in common with all of your brokes

friends and family. They don’t count, unless you want their results!

PERIOD!

Dreamers put off practicing basketball until they’ve got Air Jordan’s.

Entrepreneurs practice barefoot behind the garage. Stop waiting for the

perfect time, the perfect opportunity, the perfect situation. Take decisive

action now and stop procrastinating.

Dreamers believe what they’re told. Entrepreneurs do original research

and make their own decisions. Do your due diligence and follow you gut.

It will rarely lead you astray.


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2. GOOGLE: LARRY PAGE AND SERGEY BRIN

“When it’s too easy to get money, then you get a lot of noise mixed in with the real innovation and entrepreneurship. Tough times bring out the best parts of Silicon Valley. [1] “Technology is an inherent democratizer. Because of the evolution of hardware and software, you’re able to scale up almost anything. It means that in our lifetime everyone may have tools of equal power.”[2]

“I have seen more failures then successes.”[3]

2.1 Introduction

Larry Page and Sergey Brin reluctantly left their Ph.D. programs to start Google.

Google story in a glance.

They tried to sell early versions of their search technology to Silicon Valley

firms for $1 million. No one would buy.

Google’s power comes from Google ware, its powerful blend of hardware

and software.

Google was so successful that it could dictate the terms of its IPO to the

banks.

Brin and Page persuaded their financiers to accept unusual terms, and they

never relinquished control of their company.


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When forced to hire a CEO, they retained the power to outvote him.

Google’s corporate culture reflects the founders’ desire to have fun and be

innovative at the same time.

Page and Brin take a creative, eccentric approach to problem solving.

Google’s engineers can use 20% of their time on their own exploratory

projects.

Google’s vision is to make all the information in the world instantly

available to everyone. That is why it is digitizing great libraries.

You probably use Google when you are looking for something on the Web. This is

to tell you the story of Google founders Larry Page and Sergey Brin in fast

moving, energetic prose, from start-up to triumph. The authors spend little time

considering any of the possible negative aspects associated with Google, but most

readers will find that it hardly matters because their book is downright fun, and it

ends with a useful set of Google search tips. You will learn so much about the

founders, the company’s management and its wonderfully exotic culture that you

will not notice the absence of critical distance.

2.2.1 A BARGAIN OFFER

If Stanford University had offered to sell you Google’s search technology for a

million bucks a few years ago, would you have found a way to buy it? Yahoo, Alta

Vista and various companies all passed. The dearth of buyers created a dilemma

for Sergey Brin and Larry Page, the two Stanford University doctorate students

who created Google. They both came from academic families and were set on

technology careers. However, the lack of outside interest in their search engine

(“Search doesn’t matter,” they were told) made them realize that to capture the


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value of their creation, they had to leave their Ph.D. programs and build the

business. They named it by misspelling the mammoth number googol (1 with 100

zeroes), representing the almost endless universe of pages Google’s engine makes

available for search, for free, to anyone with access to a Web browser. From the

outset, a feature called “PageRank” made Google’s results unique. Google

searches billions of pages and then, thanks to PageRank, lists the results in their

likely order of interest to the searcher. And it does that job better than any other

search engine. Google’s power comes from the way it merges its hardware and

software into an integrated system, “Google ware.” As young inventors, Page and

Brin proved especially adept at scrounging equipment and software tools to

increase the program’s capacity and expand its code. But when Stanford could no

longer support the project, they had to find other funding. Their first underwriter,

Andy Bechtolsheim, a serial investor and brilliant technologist, put in $100,000.

With this money, Brin and Page incorporated Google. Other investors followed

and the men made important friends, including Amazon’s Jeff Bezos and Yahoo’s

David Filo (a fellow Stanford alumnus). Bezos and Filo introduced Brin and Page

to venture capitalists, and gave Google credibility. The pair needed cash, but

wouldn’t go public because they didn’t want to give up their trade secrets or lose

control of their company. Even without income, they drew pioneer venture

capitalists John Doerr of Kleiner Perkins and Michael Moritz of Sequoia Capital.

Eventually, Brin and Page got $25 million in investments, while maintaining

control. Next, they had to figure out how to make money with their technology.


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2.2.2 THE RIGHT PATH

Brin and Page had no interest in building a standard company. Their offices

resembled student dorm rooms more than corporate headquarters. But licensing

their technology did not bring in the expected revenues and they struggled with the

decision to sell advertising. They had even written a college paper on “The Evils of

Advertising,” saying that combining search results with ads would diminish

credibility and corrupt search results. They tried, but failed, to get companies to

pay fees to search. Next, they wrestled with how ads might affect their core

service: free Internet searches. After studying advertising services, they chose to

sell highly targeted advertising, showing “sponsored links” (paid ads) on the right-

hand side of the search response page. They developed a new way to rank ads

based on how much advertisers offered to pay and how often users clicked on the

ads, breaking with the tradition of giving top-paying ads the best billing. The ads

ranking highest on both metrics rose in presentation order and the others fell.

Google charged advertisers only when someone clicked on an ad, giving

advertisers an innovative way to measure their return on investment. In 2001,

Google made a profit of $7 million. The company was growing, but its financial

results weren’t spectacular. Investors insisted that Google hire an experienced

executive. Brin and Page had no intention of losing control or of reporting to

anyone, but the moneymen pressured them. They procrastinated for about a year.

Doerr tried to get Eric Schmidt (formerly of Novell and Sun Microsystems) to talk

to Brin and Page. Neither side was interested, but when they finally had their first

meeting and their first argument, both sides were impressed. After lengthy

negotiations, Schmidt joined Google as a CEO who could be outvoted. The three

men complemented each other’s talents: Brin made deals, Page handled


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technology, and Schmidt minded the store and helped Google function in the

business world. As the company grew, it formed crucial strategic alliances, such as

providing searches to AOL and ad services to Ask Jeeves. Both deals generated

huge traffic. In 2002, Google turned over more than $400 million, with $100

million in profits.

2.2.3 NEWS AND GMAIL

Google became a worldwide phenomenon spreading by word-of-mouth. People

searched in many languages (including joke ones, such as Klingon and Elmer

Fudd) and incorporated Google into the way they worked. People found it easier

and quicker to find data about their own employers with Google than by wading

through stuffed files. Google’s policy of encouraging its engineers to take one day

a week or 20% of their time, to work on anything that interested them yielded

many great ideas. Two of the most visible are Google News, born from attempts by

Google’s principal scientist, Krishna Bharat, to get news on 9/11, and Google

Product Search, which lets users search the Web for anything they want to buy.

Searching remains Google’s bread and butter, but brand extensions popularized the

name. Google launched Gmail in 2004 on April Fool’s Day. At first, many people

thought the announcement of Web-based e- mail with a free gigabyte of storage

was a joke by the Google guys. Its large investors, who were working on an initial

public offering (IPO), were aghast that such a major announcement had been made

almost off the cuff, and were upset by Google’s refusal to put ads on its pristine

home page. Others worried about security, because Gmail scans e-mails and puts

focused ads in them.


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2.2.4 GOING PUBLIC

When Brin and Page agreed to accept venture capital, they knew they would have

to take their stock public at some point. They resisted until the last moment and

then did it their way. They refused to pay the usual bank fees or to underwrite Wall

Street’s expected sweetheart placements. While they set their initial stock price,

they broke with tradition by holding an open auction for individual and

institutional investors to determine how many shares bidders would get. They

democratized the distribution of shares, but to retain control they also devised two

classes of shares with unequal voting rights. It wasn’t all easy. On the eve of the

IPO, Google had to settle a patent infringement suit from Yahoo. An interview that

Brin and Page had done months earlier for Playboy came out during the SEC-

imposed quiet period just before the IPO and was investigated for possible

violations. Although the pair considered delaying the offering, they went ahead

despite the difficulties, including a tough stock market environment for new

offerings. The IPO, which was sold via online auction, was priced lower than

anticipated, at $85, but that suited Brin and Page. They didn’t want a hot IPO doled

out to favored Wall Street players who profited unfairly on day one by buying and

dumping when the price soared. Initial trades hovered around $100. Brin and Page

were happy paper billionaires before lunch.

2.2.5 A UNIQUE CULTURE

Brin first wanted to hire a company chef in 1998, when Google had only a few

employees. The idea was that serving delicious, free food to the employees would

energize them and unite the team. Brin tried to hire Charlie Ayers, but Ayers

couldn’t see how a dozen or so employees needed a full-time chef. However, he

joined later when he realized how fast the company was growing. Charlie – a


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master of fried chicken and biscuits – became an icon of Google’s unique culture.

After five years, he cashed in his stock options to launch his own restaurants. Brin

and Page’s fight with Yahoo over AOL Europe demonstrated their determination

to remain on top. When Yahoo beat them out for AOL Europe, they appealed to

AOL exec Philip Rowley in London. He initially turned them down, since AOL

had already told Yahoo that it had the contract. Brin diverted a Spain-bound flight

to meet with Rowley one-on-one in London, increasing Google’s offer so much

that Rowley reconsidered. To be fair, AOL told Yahoo it had to increase its bid to

win. Yahoo refused and Google won AOL Europe. During this period, Google

rolled out Google Desktop Search and Google Earth. Desktop Search lets you find

any file on your desktop. Google Earth is a gee-whiz product that enables you

virtually to fly around the globe, zoom down into cities, and even see some

buildings in 3-D. Now, Google is digitizing libraries. The University of Michigan’s

libraries hold seven million volumes. Page, a Michigan alumnus, proposed to pay

for digitizing their contents if he could add the data to Google’s index. Many other

libraries, such as Harvard, Stanford and Oxford, have joined the project, aimed at

making the contents of millions of books instantly available online. The books give

Google the option of more inventory space for ads. Authors and publishers sued,

but Google claimed it was respecting copyrights and sped up its digitizing, while

focusing on how to deal with copyright issues on materials published after 1923.

The dispute appears headed for the Supreme Court.

2.2.6 BACK TO EARTH

Geico Insurance sued Google in 2004, the same year Google launched Gmail. The

insurance firm’s lawyers contended that Google’s agreement allowing Geico’s

competitors to buy ads on search results pages that used Geico’s name and other


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trademarks violated the law. The judge ruled in favor of Google, because its policy

protected trademarks overall. The court also found that searchers who checked

insurance company sites were only comparison shopping. “Click fraud” is another

contentious issue. Some advertisers said their click-rates had spikes and valleys

that diverged from the usual rate of activity. If a lender knows that 5% of the

consumers who click on its ads will fill out a mortgage form, it can calculate how

much that traffic is worth. However, if the rate is zero over a large number of

clicks, the advertiser bears the costs without receiving any benefits. This fraudulent

activity has jeopardized Google’s advertising model and remains an issue with

advertisers. Some find Google less responsive to complaints than its competitors.

Google says its technology discards apparently fraudulent clicks, and advertisers

get such a strong response to Google ad campaigns that they have come to worry

less about click fraud. Despite these issues, Google’s stock continued to soar. As

the price became more than $200 per share, many wondered if employees would

sell. Would the founders sell? Would a piece of news or aberrant technology bring

everything crashing down? Investors voted with their money and said, “No!,”

nothing is going to go wrong here. The stock zoomed upward, creating more value

in a short period than any firm in American history.

2.2.7 HIRING AND FIRING

Google opened an office near Microsoft’s Washington state headquarters in 2004

and has hired ambitious employees away from the Redmond giant. In retaliation,

Bill Gates claimed he would put a search function into every pixel of Windows.

Google and Microsoft’s ongoing fight for talented employees now extends to

China. Microsoft already had 1,000 employees in China when Google entered the

market. In 2005 it tempted Dr. Kai-Fu Lee away from Microsoft to head Google


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China, sparking a lawsuit. Google prevailed. Then censorship became Google’s

biggest political problem in China. The company had the choice of pulling out of

the country altogether, and forsaking its talented engineers and growth

opportunities, or complying with local laws and self- censoring its search services.

After much soul searching, it decided to do the latter. Many Western human-rights

organizations criticized the decision, leading to bad publicity for the usually

popular company that has always had the motto, “Don’t Be Evil.”

2.2.8 BREAKTHROUGHS

Google’s leaders believe that it can facilitate breakthroughs in numerous realms

simply by making unprecedented amounts of information available to scientists,

researchers, students and regular folks. Google searches can boost every data-

based endeavor, from genomics, economics, medicine and environmental studies

to an individual’s attempt to find lost friends. Brin, Page and Schmidt foresee the

day when even those in the most remote regions of the world will have access to

vast knowledge, thanks to the benefits of Google and the Internet.

2.3. LARRY PAGE

2.3.1 EARLY LIFE AND EDUCATION

Page was born into an academically oriented family in East Lansing, Michigan.

His parents were computer science professors at Michigan State University. During

an interview, Page said that "their house was usually a mess, with computers

and Popular Science magazines all over the place." His attraction to computers

started when he was six years old when he got to "play with the stuff lying

around." He became the "first kid in his elementary school to turn in an assignment

from a word processor."His older brother also taught him to take things apart, and

before long he was taking "everything in his house apart to see how it worked." He


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said,” From a very early age, I also realized I wanted to invent things. So I became

really interested in technology...and business. So probably from when I was 12 I

knew I was going to start a company eventually."

Page attended a Montessori school in Okemos, Michigan, and graduated from East

Lansing High School (1991). He holds a Bachelor of Science degree in computer

engineering from the University of Michigan with honors and a Masters

degree in Computer Science from Stanford University. While at the University of

Michigan, "Page created an inkjet printer made of Lego bricks", (actually a line

plotter) served as the president of the HKN and was a member of the solar car

team.

2.3.2 ACADEMIC RESEARCH

After enrolling for a Ph.D. program in computer science at Stanford University,

Larry Page was in search of a dissertation theme and considered exploring the

mathematical properties of the World Wide Web, understanding its link structure

as a huge graph. His supervisor Terry Winograd encouraged him to pursue this

idea, which Page later recalled as "the best advice I ever got".Page then focused on

the problem of finding out which web pages link to a given page, considering the

number and nature of such backlinks to be valuable information about that page

(with the role of citations in academic publishing in mind).In his research project,

nicknamed "BackRub", he was soon joined by Sergey Brin, a fellow Stanford

Ph.D. student.

John Battelle, co-founder of Wired magazine, wrote of Page that he had reasoned

that the "entire Web was loosely based on the premise of citation – after all, what is

a link but a citation? If he could divine a method to count and qualify each

backlink on the Web, as Page puts it 'the Web would become a more valuable


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place'."Battelle further described how Page and Brin began working together on

the project: "At the time Page conceived of BackRub, the Web comprised an

estimated 10 million documents, with an untold number of links between them.

The computing resources required to crawl such a beast were well beyond the

usual bounds of a student project. Unaware of exactly what he was getting into,

Page began building out his crawler." The idea's complexity and scale lured Brin to

the job. A polymath who had jumped from project to project without settling on a

thesis topic, he found the premise behind BackRub fascinating. "I talked to lots of

research groups" around the school, Brin recalls, "and this was the most exciting

project, both because it tackled the Web, which represents human knowledge, and

because I liked Larry."

Brin and Page originally met in March, 1995, during a spring orientation of new

computer science Ph.D. candidates. Brin, who had already been in the program for

two years, was assigned to show some students, including Page, around campus,

and they later became good friends.

To convert the backlink data gathered by BackRub's web crawler into a measure of

importance for a given web page, Brin and Page developed

the PageRank algorithm, and realized that it could be used to build a search

engine far superior to existing ones. It relied on a new kind of technology which

analyzed the relevance of the back links that connected one Web page to another.

In August 1996, the initial version of Google was made available, still on the

Stanford University Web site.

2.3.3 BUSINESS

In 1998, Brin and Page founded Google, Inc. Page ran Google as co-president

along with Brin until 2001 when they hired Eric Schmidt as Chairman and CEO of


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Google. In 2007, Page was cited by PC World as #1 on the list of the 50 most

important people on the web, along with Brin and Schmidt.

2.3.4 PERSONAL LIFE

Page married Lucinda Southworth at Richard Branson's Caribbean island, Necker

Island, on December 8, 2007. Brin and Page are the executive producers of the

film, Broken Arrows. In 2004, he and Sergey Brin were named "Persons of the

Week" by ABC World News Tonight.

Larry Page spoke at the commencement ceremony of the University of Michigan

in 2009,at which time he also received an honorary Doctor of Engineering Degree.

2.3.5 OTHER INTERESTS

Page is an active investor in alternative energy companies, such as Tesla Motors,

which developed the Tesla Roadster, a 220-mile (350 km) range battery electric

vehicle. He continues to be committed to renewable energy technology, and with

the help of Google.org, Google's philanthropic arm, promotes the adoption of plug-

in hybrid electric cars and other alternative energy investments.

2.3.6 AWARDS AND RECOGNITION

In 2003, both Brin and Page received an honorary MBA from IE Business

School "for embodying the entrepreneurial spirit and lending momentum to the

creation of new businesses..." And in 2004, they received the Marconi

Foundation Prize, the "Highest Award in Engineering," and were

elected Fellows of the Marconi Foundation at Columbia University. "In

announcing their selection, John Jay Iselin, the Foundation's president,

congratulated the two men for their invention that has fundamentally changed the

way information is retrieved today." They joined a "select cadre of 32 of the


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world's most influential communications technology pioneers..." In 2005, Brin and

Page were elected Fellows of the American Academy of Arts and Sciences.

The World Economic Forum named Page as a Global Leader for Tomorrow and

the X PRIZE chose Page as a trustee for their board. PC Magazine has praised

Google as among the Top 100 Web Sites and Search Engines (1998) and awarded

Google the Technical Excellence Award, for Innovation in Web Application

Development in 1999. In 2000, Google earned a Webby Award, a People's Voice

Award for technical achievement, and in 2001, was awarded Outstanding Search

Service, Best Image Search Engine, Best Design, Most Webmaster Friendly Search

Engine, and Best Search Feature at the Search Engine Watch Awards."

Larry Page received an honorary doctorate from the University of Michigan on

May 2, 2009 during the commencement ceremony exercises of the class of 2009.

2.4 SERGEY BRIN

2.4.1 EARLY LIFE AND EDUCATION

Brin (Russian: Сергей Брин) was born in Moscow, in the Soviet Union,

to Russian Jewish parents, the son of Michael Brin and Eugenia Brin, both

graduates of Moscow State University. His father is a mathematics professor at

the University of Maryland, and his mother is a research scientist

at NASA's Goddard Space Flight Center.

In 1979, when Brin was six, his family felt compelled to immigrate to the United

States. In an interview with Mark Malseed, author of The Google Story, Sergey's

father explains how he was "forced to abandon his dream of becoming

an astronomer even before he reached college. Officially, anti-Semitism didn't

exist in the U.S.S.R. but, in reality, Communist Party heads barred Jews from

upper professional ranks by denying them entry to universities. Jews were


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excluded from the physics departments, in particular..." Michael Brin therefore

changed his major to mathematics where he received nearly straight A's. However,

he said, "Nobody would even consider me for graduate school because I was

Jewish." The Brin family lived in a small, three-room, 350 square foot apartment in

central Moscow, which they also shared with Sergey's paternal grandmother.

Sergey told Malseed, "I've known for a long time that my father wasn't able to

pursue the career he wanted," but Sergey only picked up the details years later after

they had settled in America. He learned how, in 1977, after his father returned

from a mathematics conference in Warsaw, Poland, he announced that it was time

for the family to emigrate. "We cannot stay here anymore," he told his wife and

mother. At the conference, he was able to "mingle freely with colleagues from

the United States, France, England and Germany, and discovered that his

intellectual brethren in the West were 'not monsters.'" He added, "I was the only

one in the family who decided it was really important to leave..."

Sergey's mother was less willing to leave their home in Moscow, where they had

spent their entire lives. Malseed writes, "For Genia, the decision ultimately came

down to Sergey. While her husband admits he was thinking as much about his own

future as his son's, for her, 'it was 80/20' about Sergey." They formally applied for

their exit visa in September 1978, and as a result his father "was promptly fired."

For related reasons, his mother also had to leave her job. For the next eight months,

without any steady income, they were forced to take on temporary jobs as they

waited, not knowing whether their application would be granted. During this time

his parents shared responsibility for looking after him and his father taught himself

computer. In May 1979, they were granted their official exit visas and were

allowed to leave the country.


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At an interview in October, 2000, Brin said, "I know the hard times that my parents

went through there, and am very thankful that I was brought to the States."A

decade earlier, in the summer of 1990, a few weeks before his 17th birthday, his

father led a group of gifted high school math students, including Sergey, on a two-

week exchange program to the Soviet Union. "As Sergey recalls, the trip awakened

his childhood fear of authority" and he remembers that his first "impulse on

confronting Soviet oppression had been to throw pebbles at a police car." Malseed

adds, "On the second day of the trip, while the group toured a sanitarium in the

countryside near Moscow, Sergey took his father aside, looked him in the eye and

said, ‘Thank you for taking us all out of Russia.’

Brin attended grade school at Paint Branch Montessori School in Adelphi,

Maryland, but he received further education at home; his father, a professor in the

department of mathematics at the University of Maryland, nurtured his interest in

mathematics and his family helped him retain his Russian-language skills. In

September 1990, after having attended Eleanor Roosevelt High School, Brin

enrolled in the University of Maryland, College Park to study computer

science and mathematics, where he received his Bachelor of Science degree in

May 1993 with honors. Brin began his graduate study in Computer

Science at Stanford University on a graduate fellowship from the National Science

Foundation. In 1993 he interned at Wolfram Research, makers of Mathematica. He

is on leave from his Ph.D. studies at Stanford.

2.4.2 PERSONAL LIFE

In May 2007, Brin married Anne Wojcicki in The Bahamas. Wojcicki is

a biotech analyst and a 1996 graduate of Yale University with a B.S. in biology.

She has an active interest in health information, and together she and Brin are


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developing new ways to improve access to it. As part of their efforts, they have

brainstormed with leading researchers about the human genome project. “Brin

instinctively regards genetics as a database and computing problem. So does his

wife, who co-founded the firm, 23andMe,” which lets people analyze and compare

their own genetic makeup (consisting of 23 pairs of chromosomes). In a recent

announcement at Google’s Zeitgeist conference, he said he hoped that someday

everyone would learn their genetic code in order to help doctors, patients, and

researchers analyze the data and try to repair bugs.

Brin's mother, Eugenia, has been diagnosed with Parkinson's Disease. In 2008, he

decided to donate a large sum to the University Of Maryland School Of Medicine,

where his mother is being treated. Brin used the services of 23AndMe and

discovered that although Parkinson's is generally not hereditary, both he and his

mother possess a mutation of the LRRK2 gene that puts the likelihood of his

developing Parkinson's in later years between 20 and 80%. When asked whether

ignorance was not bliss in such matters, he stated that his knowledge means that he

can now take measures to ward off the disease. An editorial in The

Economist magazine states that "Mr. Brin regards his mutation of LRRK2 as a bug

in his personal code, and thus as no different from the bugs in computer code that

Google’s engineers fix every day. By helping himself, he can therefore help others

as well. He considers himself lucky. ... But Mr. Brin was making a much bigger

point. Isn’t knowledge always good, and certainly always better than ignorance?

2.4.3 CHINESE CENSORSHIP OF GOOGLE

Remembering his youth and his family's reasons for leaving the Soviet Union, he

"agonized over Google’s decision to appease the communist government

of China by allowing it to censor search engine results," but decided that the


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Chinese would still be better off than without having Google available.[7] He

explained his reasoning to Fortune magazine:

"We felt that by participating there, and making our services more available, even

if not to the 100 percent that we ideally would like, that it will be better for

Chinese web users, because ultimately they would get more information, though

not quite all of it."

2.4.4 AWARDS AND RECOGNITION

In 2003, both Brin and Page received an honorary MBA from IE Business

School "for embodying the entrepreneurial spirit and lending momentum to the

creation of new businesses...” And in 2004, they received the Marconi

Foundation Prize, the "Highest Award in Engineering," and were

elected Fellows of the Marconi Foundation at Columbia University. "In

announcing their selection, John Jay Iselin, the Foundation's president,

congratulated the two men for their invention that has fundamentally changed the

way information is retrieved today." They joined a "select cadre of 32 of the

world's most influential communications technology pioneers..."

In February, 2009, Brin was inducted into the National Academy of Engineering,

which is "among the highest professional distinctions accorded to an engineer

honors those who have made outstanding contributions to engineering research,

practice...". He was selected specifically, "for leadership in development of rapid

indexing and retrieval of relevant information from the World Wide Web."

In their "Profiles" of Fellows, the National Science Foundation included a number

of earlier awards: "he has been a featured speaker at the World Economic

Forum and the Technology, Entertainment and Design Conference. ... PC

Magazine has praised Google [of] the Top 100 Web Sites and Search Engines


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(1998) and awarded Google the Technical Excellence Award, for Innovation in

Web Application Development in 1999. In 2000, Google earned a Webby Award,

a People's Voice Award for technical achievement, and in 2001, was awarded

Outstanding Search Service, Best Image Search Engine, Best Design, Most

Webmaster Friendly Search Engine, and Best Search Feature at the Search Engine

Watch Awards."

2.4.5 OTHER INTERESTS

Brin is working on other, more personal projects that reach beyond Google. For

example, he and Page are trying to help solve the world’s energy and climate

problems at Google’s philanthropic arm google.org. He had Google invest in

the alternative energy industry to find wider sources of renewable energy. They are

trying to get companies to create innovative solutions to increasing the world's

supply. He is an investor in Tesla Motors, which is developing the Tesla Roadster,

a 221-mile (356 km) range battery electric vehicle.

Brin has appeared on television shows and many documentaries, including Charlie

Rose, CNBC, and CNN. In 2004, he and Larry Page were named "Persons of the

Week" by ABC World News Tonight. In January 2005 he was nominated to be one

of the World Economic Forum's "Young Global Leaders." He and Page are also

the executive producers of the 2009 film Broken Arrows.

In June 2008, Brin invested $5 million in Space Adventures, the Virginia-

based space tourism company. His investment will serve as a deposit for a

reservation on one of Space Adventures' proposed flights in 2011. So far, Space

Adventures has sent seven tourists into space. He and Page co-own a

customized Boeing 767-200 and a Dornier Alpha Jet, and pay $1.3 million a year

to house them and two Gulfstream V jets owned by Google executives at Moffett


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Federal Airfield. The aircraft have had scientific equipment installed by NASA to

allow experimental data to be collected in flight. Brin is a member of AmBAR, a

networking organization for Russian-speaking business professionals

(both expatriates and immigrants) in the United States. He has made many

speaking appearances.

2.5 GOOGLE’S PHILOSOPHY

Verbatim from Google’s site

Ten things we know to be true

"The perfect search engine," says co-founder Larry Page, "would understand

exactly what you mean and give back exactly what you want." When Google

began, you would have been pleasantly surprised to enter a search query and

immediately find the right answer. Google became successful precisely because we

were better and faster at finding the right answer than other search engines at the

time.

But technology has come a long way since then, and the face of the web has

changed. Recognizing that search is a problem that will never be solved, we

continue to push the limits of existing technology to provide a fast, accurate and

easy-to-use service that anyone seeking information can access, whether they're at

a desk in Boston or on a phone in Bangkok. We've also taken the lessons we've

learned from search to tackle even more challenges.

As we keep looking towards the future, these core principles guide our actions.

1. Focus on the user and all else will follow.

Since the beginning, we've focused on providing the best user experience possible.

Whether we're designing a new Internet browser or a new tweak to the look of the


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homepage, we take great care to ensure that they will ultimately serve you, rather

than our own internal goal or bottom line. Our homepage interface is clear and

simple, and pages load instantly. Placement in search results is never sold to

anyone, and advertising is not only clearly marked as such, it offers relevant

content and is not distracting. And when we build new tools and applications, we

believe they should work so well you don't have to consider how they might have

been designed differently.

2. It's best to do one thing really, really well.

We do search. With one of the world's largest research groups focused exclusively

on solving search problems, we know what we do well, and how we could do it

better. Through continued iteration on difficult problems, we've been able to solve

complex issues and provide continuous improvements to a service that already

makes finding information a fast and seamless experience for millions of people.

Our dedication to improving search helps us apply what we've learned to new

products, like Gmail and Google Maps. Our hope is to bring the power of search to

previously unexplored areas, and to help people access and use even more of the

ever-expanding information in their lives.

3. Fast is better than slow.

We know your time is valuable, so when you're seeking an answer on the web you

want it right away – and we aim to please. We may be the only people in the world

who can say our goal is to have people leave our homepage as quickly as possible.

By shaving excess bits and bytes from our pages and increasing the efficiency of

our serving environment, we've broken our own speed records many times over, so

that the average response time on a search result is a fraction of a second. We keep

speed in mind with each new product we release, whether it's a mobile application


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or Google Chrome, a browser designed to be fast enough for the modern web. And

we continue to work on making it all go even faster.

4. Democracy on the web works.

Google search works because it relies on the millions of individuals posting links

on websites to help determine which other sites offer content of value. We assess

the importance of every web page using more than 200 signals and a variety of

techniques, including our patented PageRank™ algorithm, which analyzes which

sites have been "voted" to be the best sources of information by other pages across

the web. As the web gets bigger, this approach actually improves, as each new site

is another point of information and another vote to be counted. In the same vein,

we are active in open source software development, where innovation takes place

through the collective effort of many programmers.

5. You don't need to be at your desk to need an answer.

The world is increasingly mobile: people want access to information wherever they

are, whenever they need it. We're pioneering new technologies and offering new

solutions for mobile services that help people all over the globe to do any number

of tasks on their phone, from checking email and calendar events to watching

videos, not to mention the several different ways to access Google search on a

phone. In addition, we're hoping to fuel greater innovation for mobile users

everywhere with Android, a free, open source mobile platform. Android brings the

openness that shaped the Internet to the mobile world. Not only does Android

benefit consumers, who have more choice and innovative new mobile experiences,

but it opens up revenue opportunities for carriers, manufacturers and developers.


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6. You can make money without doing evil.

Google is a business. The revenue we generate is derived from offering search

technology to companies and from the sale of advertising displayed on our site and

on other sites across the web. Hundreds of thousands of advertisers worldwide use

AdWords to promote their products; hundreds of thousands of publishers take

advantage of our AdSense program to deliver ads relevant to their site content. To

ensure that we're ultimately serving all our users (whether they are advertisers or

not), we have a set of guiding principles for our advertising programs and

practices:

We don't allow ads to be displayed on our results pages unless they are

relevant where they are shown. And we firmly believe that ads can provide

useful information if, and only if, they are relevant to what you wish to find

– so it's possible that certain searches won't lead to any ads at all.

We believe that advertising can be effective without being flashy. We don't

accept pop-up advertising, which interferes with your ability to see the

content you've requested. We've found that text ads that are relevant to the

person reading them draw much higher clickthrough rates than ads

appearing randomly. Any advertiser, whether small or large, can take

advantage of this highly targeted medium.

Advertising on Google is always clearly identified as a "Sponsored Link," so

it does not compromise the integrity of our search results. We never

manipulate rankings to put our partners higher in our search results and no

one can buy better PageRank. Our users trust our objectivity and no short-

term gain could ever justify breaching that trust.


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7. There's always more information out there.

Once we'd indexed more of the HTML pages on the Internet than any other search

service, our engineers turned their attention to information that was not as readily

accessible. Sometimes it was just a matter of integrating new databases into search,

such as adding a phone number and address lookup and a business directory. Other

efforts required a bit more creativity, like adding the ability to search news

archives, patents, academic journals, billions of images and millions of books. And

our researchers continue looking into ways to bring all the world's information to

people seeking answers.

8. The need for information crosses all borders.

Our company was founded in California, but our mission is to facilitate access to

information for the entire world, and in every language. To that end, we have

offices in dozens of countries, maintain more than 150 Internet domains, and serve

more than half of our results to people living outside the United States. We offer

Google's search interface in more than 110 languages, offer people the ability to

restrict results to content written in their own language, and aim to provide the rest

of our applications and products in as many languages as possible. Using our

translation tools, people can discover content written on the other side of the world

in languages they don't speak. With these tools and the help of volunteer

translators, we have been able to greatly improve both the variety and quality of

services we can offer in even the most far-flung corners of the globe.

9. You can be serious without a suit.

Our founders built Google around the idea that work should be challenging, and

the challenge should be fun. We believe that great, creative things are more likely

to happen with the right company culture – and that doesn't just mean lava lamps


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and rubber balls. There is an emphasis on team achievements and pride in

individual accomplishments that contribute to our overall success. We put great

stock in our employees – energetic, passionate people from diverse backgrounds

with creative approaches to work, play and life. Our atmosphere may be casual, but

as new ideas emerge in a café line, at a team meeting or at the gym, they are

traded, tested and put into practice with dizzying speed – and they may be the

launch pad for a new project destined for worldwide use.

10. Great just isn't good enough.

We see being great at something as a starting point, not an endpoint. We set

ourselves goals we know we can't reach yet, because we know that by stretching to

meet them we can get further than we expected. Through innovation and iteration,

we aim to take things that work well and improve upon them in unexpected ways.

For example, when one of our engineers saw that search worked well for properly

spelled words, he wondered about how it handled typos. That led him to create an

intuitive and more helpful spell checker.

Even if you don't know exactly what you're looking for, finding an answer on the

web is our problem, not yours. We try to anticipate needs not yet articulated by our

global audience, and meet them with products and services that set new standards.

When we launched Gmail, it had more storage space than any email service

available. In retrospect offering that seems obvious – but that's because now we

have new standards for email storage. Those are the kinds of changes we seek to

make, and we're always looking for new places where we can make a difference.

Ultimately, our constant dissatisfaction with the way things are becomes the

driving force behind everything we do.


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2.6 GOOGLE WORKSPACE:

This is how Google workspace looks like.

Local expressions of each location, from a mural in Buenos Aires to ski

gondolas in Zurich, showcasing each office's region and personality.

Bicycles or scooters for efficient travel between meetings; dogs; lava lamps;

massage chairs; large inflatable balls.

Googlers sharing cubes, yurts and huddle rooms – and very few solo offices.

Laptops everywhere – standard issue for mobile coding, email on the go and

note-taking.

Foosball, pool tables, volleyball courts, assorted video games, pianos, ping

pong tables, and gyms that offer yoga and dance classes.

Grassroots employee groups for all interests, like meditation, film, wine

tasting and salsa dancing.

Healthy lunches and dinners for all staff at a variety of cafés.

Break rooms packed with a variety of snacks and drinks to keep Googlers

going.

2.7 INITIATIVES

2.7.1 GOOGLE VENTURES


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Google Ventures is the venture capital investment arm of Google Inc. that makes

strategic investments in technology companies. Google Ventures seeks to invest

in start-up companies in a variety of fields ranging from Internet, software, and

hardware to clean-tech, bio-tech, and health care.

The group was founded on March 31, 2009, with a $100 million capital

commitment. Google Ventures is co-managed by Rich Miner and Bill Maris.

Google Ventures has offices in Mountain View, California

and Cambridge, Massachusetts. Google Ventures is broadly interested in startups in

industries including consumer Internet, software, hardware, clean-tech, bio-tech,

health care and others.

2.7.2 GREEN INITIATIVES:

Carbon Offset

As leaders from around the world met in Copenhagen to address global climate

change this month, Google thought it was a good time to reflect on our own carbon

footprint. In 2007, it committed to become a carbon neutral company. It is a carbon

neutral company.

Firstly, it aggressively pursues reductions in our energy consumption through

energy efficiency, innovative infrastructure design and operations and on-site

renewable energy. Google designed data centers use half the energy of typical

facilities. We're also working to accelerate the development of economic, clean

renewable energy at scale through research and development, investment and

policy outreach. At this time, however, such efforts don't cover its entire carbon

footprint. Therefore, since 2007 it has gone a step further and made a voluntary


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commitment to buy carbon offsets to cover the portion of our footprint that it

cannot yet eliminate.

So what exactly is a carbon offset? The idea behind an offset is that we pay

someone to reduce their greenhouse gas emissions in a specific, measurable way,

thus offsetting an equal climate impact on our side. To determine our impact, we

calculate our annual carbon footprint, which is then verified by an independent

third party. We include direct energy consumption (like natural gas) and electricity

use, employee commuting, company vehicle use, business travel and estimates of

carbon emissions from building construction and from the manufacturing of

servers used in our datacenters. We then buy an equivalent number of carbon

offsets.

While carbon offsets seem simple in principle, in practice they are surprisingly

complicated. In particular, it's often difficult to say whether or not the offset project

results in emissions reductions that would have happened anyway. We find

ourselves asking whether the project in fact goes beyond "business as usual." In the

world of offsets, this concept is referred to as "additionality." Carbon offsets have a

mixed reputation because some projects are not additional. Google has set a very

high bar to ensure that its investment makes an actual difference in reducing

greenhouse gas emissions by purchasing offsets that are real, verifiable, permanent

and additional.

To date, it has selected high quality carbon offsets from around the world that

reduce greenhouse gas emissions — ranging from landfill gas projects in Caldwell

County, NC, and Steuben County, NY, to animal-waste management systems in

Mexico and Brazil. Its funding helps make it possible for equipment to be installed


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that captures and destroys the methane gas produced as the waste

decomposes. Methane, the primary component in natural gas, is a significant

contributor to global warming. It chose to focus on landfill and agricultural

methane reduction projects because methane's impact on warming is very well

understood, it's easy to measure how much methane is captured and the capture

wouldn't happen without its financing (for the projects we're investing in, they

couldn't make enough money selling the gas).

Google needs fundamental changes to global energy and transportation

infrastructure to stabilize greenhouse gas emissions over the long term. In the

meantime, the projects to which we contribute offer measurable emissions

reductions and allow us to take responsibility for our carbon footprint.

Business as usual will not deliver low-cost, clean, renewable energy soon enough

to avoid devastating climate change. In fact, even producing large amounts of

electricity from renewable sources won't make a difference unless we can find a

way to make it cheaper than electricity from coal. That's why in

2007 Google.org launched RE<C, an initiative aimed at creating utility-scale

renewable electricity that is cheaper than coal. Recharge IT

Google.org’s Recharge IT initiative is aimed at accelerating the adoption of plug-in

vehicles and "smart charging" applications. Transportation related greenhouse gas

emissions are responsible for roughly one third of greenhouse gas emissions in the

United States and at least 20% globally. We believe that plug-in hybrids capable of

running on electricity are the best near term option for significantly reducing

greenhouse gas emissions from the transportation sector.


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Google Power Meter

Google believes consumers have a right to access detailed information about their

home electricity usage throughout the day - to help them save money and make

smart energy decisions. Google is developing a prototype product called Google

Power Meter that allows people to see detailed home energy information in near

real-time right on their computer.

Clean Energy 2030

The U.S. has a real opportunity to transform our economy from one running on

fossil fuels to one largely based on clean energy. The energy team at Google has

been crunching the numbers to see how we could greatly reduce fossil fuel use by

2030. Our analysis suggests a potential path to weaning the U.S. off of coal and oil

for electricity generation by 2030 (with some remaining use of natural gas as well

as nuclear), and cutting oil use for cars by 40%. Over 22 years this plan could

generate billions of dollars in savings and help create millions of green jobs.

Solar Panels

In the summer of 2007, with an eye toward bringing solar power into the main

stream, we switched on one of the largest corporate solar installations in the United

States at our Mountain View headquarters. Our 9,212 solar panels produce 1.6

MW of electricity, which is enough to power approximately 1,000 average

California homes. It reduces our carbon emissions and makes good business sense

too; the installation will pay for itself in about 7.5 years.


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GREEN EMPLOYEE PROGRAMS

Our green employee programs are designed to reduce our corporate carbon

footprint, and help our employees stay green too.

Bikes on Campus

At our Mountain View headquarters, shared bicycles are scattered among our

buildings for employees to use for short trips around campus, reducing the need for

employee car trips during the work day.

Biodiesel Shuttles

Google offers an extensive shuttle service that brings more than 1,500 employees

to work from around the Bay Area every day. These shuttles are fueled by B20

biodiesel.

Composting

Waste from our Mountain View, CA cafes is separated and the organic component

is composted. As a result, we have reduced waste sent to landfills, reduced

greenhouse gases, and recycled nutrients leading to improved soil quality without

chemicals. In addition, we have reduced the overall number of disposable items in

our micro-kitchens and cafés. Any disposable plate ware and cutlery we continue

to use in the cafés is now compostable.

G Fleet

This Mountain View program is designed to support alternative commuting

through a car-sharing program that is free to Google employees. Within this fleet,

we have eight plug-in hybrid vehicles which we park under a solar panel carport at

the Google headquarters.


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Green Design Elements

The buildings at our main campus in Mountain View use sustainable building

materials that are environmentally friendly and healthier for employees, such as

"cradle-to-cradle" certified products designed to never end up in landfills, fresh air

ventilation, day lighting, and PVC- and formaldehyde-free materials whenever

possible.

Locally-grown Food

Google chefs are committed to using as many local, organic, sustainable

ingredients as possible. Café 150, for example, sources ingredients for everything

on the menu from within 150 miles. We also have a seasonal farmers market in

Mountain View and an organic garden right in our main courtyard.

Residential Solar Program

Google has partnered with several residential solar companies to offer discounts to

employees who want to go solar at home.

Self-Powered Commuter Program

Employees who bike, walk, pogo-stick, unicycle, or otherwise self-power to work

can earn points that translate into a donation from Google to their charity of choice.

HELPING OTHERS GO GREEN

Google is continually developing tools and services to help our users “go green.”

Some of its ways are:

Save Energy


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Google has developed a Google Desktop gadget for Windows XP and Vista that

helps you save energy by minimizing your PC's power consumption when it's not

actively in use. The Energy Saver gadget will automatically enable and optimize

your Windows power settings to EPA recommended standards. It will also show

you how much energy you've saved – and how much energy everyone who is using

the gadget has saved collectively. All you need to do is make sure you have

Google Desktop up and running and then install the Energy Saver gadget.

Education

Google Sketch Up has created a site for green design professionals, and Google for

Educators has put together some recommendations for teachers who want to

use Google Earth and Maps to teach about environmental issues in the classroom.

Google Maps

You've got to get someplace - the airport, out to dinner, work - and you want to do

your part to curb greenhouse gas emissions. Check out the transit trip planning or

the walking directions features of Google Maps. The transit planner uses all

available public transportation schedules to plot out the most efficient possible

step-by-step itinerary.

You can use Google Maps to organize your very own green events. In October

2007, for example, we virtually hosted an International Clean up Weekend and

invited people around the world to create their own local cleanups with family and

friends.

Our users have also applied Google Maps technology to create various

environmental “mashups” that demonstrate effects of the climate crisis. For

instance, you can view a map that shows where coastal flooding would occur with

various changes in sea levels or explore climate data for cities around the world.


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Finally, if you live in the United Kingdom, you can install a personalized carbon

calculator right on your iGoogle homepage. This tool uses Google Maps

technology to help you to calculate, track, compare and update your very own

carbon footprint.

Google Earth

Google Earth's satellite imagery, terrain, and 3D buildings bring you cutting-edge

information on world geography – including the geographic impact of climate

change. For example, the United Nations Environment Program has created the

"Atlas of our Changing Environment" to show pictures, such as the deforestation in

Brazil or the shrinking of Lake Chad in Africa. Or check out the layer created by

NRDC and Audubon that aggregates sensitive areas to make it easier for renewable

energy developers to find optimal places to site clean energy projects.

And while you're exploring Earth, be sure to check out some of the latest Global

Awareness layers (found in the left-side "Layers" panel) that celebrate the beauty

and biodiversity on Earth, like ARKive's Endangered Species and Green

peace’s Stop Climate Change. We also encourage you to visit the Google Earth

Outreach Showcase, which features a number of environmentally-focused KMLs

that can be downloaded and viewed in Google Earth.


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2.7.3 GOOGLE.ORG

It’s the philanthropic division of Google,

Product and In-Kind Donations

Apps for EDU/Non-Profits- Free communication, collaboration and publishing

tools, including email accounts, for qualifying non-profits.

Checkout for Non-Profits - A tool to increase online donations for non-profit

organizations.

Custom Search for Non-Profits - A customized search experience for non-profit

organizations.

Google Earth Outreach - Resources to help non-profits visualize their cause and

tell their story in Google Earth and Maps.

Google Grants - In-kind online advertising for non-profit organizations.

Google's Green Initiatives - Tools and services to help our users "go green."

Google for Non-Profits - Information on free Google tools for creating awareness,

fundraising, and operating more efficiently.

Sketchup for EDU - A product allowing educators to create, modify and share 3D

models.

YouTube for EDU - An educational channel for two- and four-year degree granting

public and private colleges and universities.

YouTube for Non-Profits - A designated channel, premium branding, and

additional free features to drive non-profit fundraising and awareness.

YouTube Video Volunteers - A platform to connect non-profit organizations with

volunteers who can help them to create videos.


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Engineering Awards and Programs

BOLD Scholarships - A diversity internship program encouraging those who are

historically under-represented in the technology industry to explore a new career

opportunity.

Google Code University- Tutorials and sample course content so Computer

Science students and educators can learn more about current computing

technologies and paradigms.

Google PhD Fellowship Program - A program created to recognize outstanding

graduate students doing exceptional work in computer science, related disciplines,

or promising research areas.

Google RISE Awards (Roots in Science and Engineering) - Awards to promote and

support science, technology, engineering, mathematics (STEM) and computer

science (CS) education initiatives.

Google Scholarships - Scholarships to encourage students to excel in their studies

and become active role models and leaders.

Research Awards - A program that aims to identify and support world-class, full-

time faculty pursuing research in areas of mutual interest.

Summer of Code - A global program that offers student developers, stipends to

write code for various open source software projects.


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2.8 Google’s Products:

a) Google Search Engine: the searching engine and the first product of Google.

b)GTalk:

c) Google Chrome: internet browser

d) Google Earth: online earth navigator


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e) Gmail: email service provider

f) Google Desktop: desktop search engine

g) Google Maps: online maps


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2.9 ACQUISITIONS

Since 2001, Google has acquired several companies, mainly focusing on small

start-ups.

In 2004, Google acquired a company called Keyhole, Inc., which developed a

product called Earth Viewer, renamed in 2005 to Google Earth.

In February 2006, software company Adaptive Path sold Measure Map, a weblog

statistics application, to Google. Registration to the service has since been

temporarily disabled. The last update regarding the future of Measure Map was

made on 6 April 2006 and outlined many of the known issues of the service.

In late 2006, Google bought the online video site YouTube for $1.65 billion in

stock. Shortly after, on 31 October 2006, Google announced that it had also

acquired JotSpot, a developer of wiki technology for collaborative Web sites.

On 13 April 2007, Google reached an agreement to acquire DoubleClick. Google

agreed to buy the company for $3.1 billion.

On 2 July 2007, Google purchased GrandCentral. Google agreed to buy the

company for $50 million.

On 9 July 2007, Google announced that it had signed a definitive agreement to

acquire enterprise messaging security and compliance company Postini.

On August 5 2009, Google announced the purchase of video software maker On2

Technologies for $106.5 million - its first acquisition of a public company.

On 24 November 2009, Google announced the purchase of Teracent, a California

based Startup Company, for an undisclosed price. This is another acquisition on

Google's behalf in a series of advertising related purchases- AdMob, Double Click.


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2.10 What We Can Learn

Google follows Sociological approach of strategic management which

deals primarily with human interactions

assumptions bounded rationality, satisfying behavior, profit sub-optimality.

Google’s Ten Management Guidelines cans serve us to guide forever:

1. Focus on the user and all else will follow.

2. It's best to do one thing really, really well.

3. Fast is better than slow.

4. Democracy on the web works.

5. You don't need to be at your desk to need an answer.

6. You can make money without doing evil.

7. There's always more information out there.

8. The need for information crosses all borders.

9. You can be serious without a suit.

10. Great just isn't good enough.

Google teaches us the importance of concept behind the innovation. Risk taking

and following your heart.if you know your capabilities.


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3. STEVE JOBS: Founder and CEO of Apple Inc. and Pixar

“I'm convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.”[1]

“Design is not just what it looks like and feels like. Design is how it works.”[2]

“A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.”[3]

3.1 Introduction

He is the man behind computing revolution. He is the reason you have iPod in your

pocket and music is mobile. He conceptualized the idea of buying music online. He

is the reason you have mouse with a computer and he is the reason you are not

working on a command line interface sitting in from of your PC. He introduced the

concept of fonts and aesthetics in computing.

He is the man behind Toy Story. He is the man with passion and fervor. He is Steve

Jobs.

3.2 Background

Full Name: Steven Paul Jobs

Date of Birth: 24 February 1955 Jobs was born in San Francisco and

was adopted by Paul and Clara (née Hagopian) Jobs of Mountain View, Santa

Clara County, California who named him Steven Paul. Paul and Clara also had a

daughter, Patty. His biological parents, Joanne Carole Schieble and Abdulfattah


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Jandalia graduate student from Syria who became a political science professor-

later married and gave birth to Jobs' sister, the novelist Mona Simpson.

Jobs attended Cupertino Junior High School and Homestead High

School in Cupertino, California, and frequented after-school lectures at

the Hewlett-Packard Company in Palo Alto, California. He was soon hired there

and worked with Steve Wozniak as a summer employee. In 1972, Jobs graduated

from high school and enrolled in Reed College in Portland, Oregon. Although

he dropped out after only one semester, he continued auditing classes at Reed, such

as one in calligraphy. "If I had never dropped in on that single course in college,

the Mac would have never had multiple typefaces or proportionally spaced fonts",

he said.

In the autumn of 1974, Jobs returned to California and began attending meetings of

the Homebrew Computer Club with Steve Wozniak. He took a job as a technician

at Atari, a manufacturer of popular video games, with the primary intent of saving

money for a spiritual retreat to India.

Jobs then traveled to India with a Reed College friend (and, later, the first Apple

employee), Daniel Kottke, in search of spiritual enlightenment. He came back

a Buddhist with his head shaved and wearing traditional Indian clothing. During

this time, Jobs experimented with psychedelics, calling his LSD experiences "one

of the two or three most important things [he had] done in [his] life." He has stated

that people around him who did not share his countercultural roots could not fully

relate to his thinking.

He returned to his previous job at Atari and was given the task of creating a circuit

board for the game Breakout. According to Atari founder Nolan Bushnell, Atari

had offered US$100 for each chip that was reduced in the machine. Jobs had little


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interest or knowledge in circuit board design and made a deal with Wozniak to

split the bonus evenly between them if Wozniak could minimize the number of

chips. Much to the amazement of Atari, Wozniak reduced the number of chips by

50, a design so tight that it was impossible to reproduce on an assembly line. At the

time, Jobs told Wozniak that Atari had only given them $600 (instead of the actual

$5000) and that Wozniak's share was thus $300.

3.3 Products of Apple. Inc and Pixar

I- Pod Shuffle:

I- Pod Nano:


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I- Pod Touch:

I- Mac:

I- Mac Notebook:

I- Tunes and Online Music:


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Pixar Studio and Animation:

3.4 Entrepreneurial Characteristics

Steve Jobs is a great entrepreneur for various reasons. He believes in staying ahead

of the pack. “Innovation is the distinction between a leader and a follower,” Jobs

once said. He doesn’t necessarily believe in being the first into an industry, but he

believes in being the first to do it right. This is shown in the creation of the iPod.

Before the iPod, the MP3 player market was almost non-existent, as most players

were of low quality, and were not nice to look at. He changed this by taking a look

at the market, and creating a unit that he would want to have in his pocket.

Steve Jobs doesn’t want to be a regular Joe. When he founded Apple, he didn’t

want to be yet another company battling for money in the Silicon Valley, he

wanted to change the world. This hunger to be known made him as successful as

he is today.

Devotion is important, and when it came to the products his company was creating,

Jobs was devoted. He made sure that the products being put out looked good, and

worked. When it came to Pixar, he made sure that quality actors were hired for the


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films, and that the animation was excellent. Jobs expected this same level of

devotion back from his employees, which sometimes led to conflict.

Most entrepreneurs do not start out with thousands of dollars in capital to start a

company. They need to convince others to invest in their company to get it off the

ground. To convince others to invest in his businesses, Jobs had to use his natural

charisma. Charisma is almost of a way of cheating in the entrepreneur realm. A

good product will usually gather investment, but a mediocre product with a good

product head has just as good of a chance of gaining money. Jobs show off his

legendary charisma when introducing new products at press conferences. He

makes it seem like his product is the best thing since sliced bread.

It wasn’t just these characteristics that made Steve Jobs the man he is today. It’s as

if there is some sort of unknown recipe that turned an orphan into the greatest and

most innovative thinker in the computer industry. A lot of Job’s life consisted of

luck, but these basic characteristics helped him get to where he is today.

When he was young, he didn't look like the kind of person that would end up

revolutionizing the computer industry. He was an orphan, brought up in Mountain

View, CA. He and his foster family moved to Los Altos, California. He soon

started to show his colors as a computer geek, when he got a summer job Hewlett-

Packard Electronics, known popularly today as HP. He soon met Stephen

Wozniak, whom which he managed to sell his first product. Surprisingly, that

product was a gadget that Wozniak had invented that let its owners make free (and

ILLEGAL!) long distance calls. Steve Jobs went to Reed College, for a grand total

of one semester. Even after dropping out of the classes, Jobs stayed around for a

year, attending philosophy classes with other things. He soon got a job at Atari, the


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Nintendo of his time, where he concentrated on recreating older, "classic", games.

After a few adventures in India, he returned to his home in California and joined

Stephen Wozniak's Homebrew Computer Club.

Unlike many of the other members, Jobs wasn't very good at actually creating

computers. He was much more interested in the software industry, and he quickly

proved he was good at it, too. He and Wozniak built the Apple I, starting Apple

Computer, Inc. Apple is widely regarded as the mother of personal computing. By

inventing the Apple I, Jobs and Wozniak revolutionized the electronics industry.

Computers now used different windows, mice, and could fit into a single room.

Then, the Apple II came out. It had circuitry that let it interface directly with a

video monitor.

But despite the popularity of Apple, Jobs still had competitors. Foremost among

them was IBM, which used Microsoft software - known then as MS-DOS. To help

Apple beat Microsoft in the escalating - and still existing - war, Apple brought in

Regis McKenna and Nolan Bushnell to improve Apple's marketing. With their

help, Apple managed to bring in $139,000,000 over three years. Its shares shot

straight up, and hundreds of people began to invest. Still, IBM began to gain

ground. Its PC slowly became the industry standard. Apple was hard pressed to

compete in the next years. Still, Jobs and his followers refused to give in. Apple

turned out the Macintosh to rival the PC. The company knew they would sell many

more computers if they simply copied IBM, but they chose to remain as they were

and keep Apple the Apple.

Even Jobs knew he couldn't just stay at Apple forever, though. An Apple employee

named John Sculley managed to get him banished to an auxiliary office nicknamed


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"Siberia", with nothing to occupy his time. He eventually sold $20 million in

Apple stock and, on September 12, 1985, left the company. After a long while in

which he did nothing at all, he started a company called Next Step. He focused on

hardware for a while, but when he failed to produce anything major, he turned

back to software. He quickly created the Next Step operating system, but it never

really took off. Still, Jobs was not totally without success. In 1986, He acquired the

computer graphics division of Lucas film Ltd., and made the company Pixar from

it. He was its CEO, too, until 2006, when Disney bought it. But first…something

happened. In 1997, Apple Computers, Inc. acquired Next Step. Steve Jobs was

back in the running. Apple had been suffering during Jobs' absence, mostly due to

humongous price tags. Suddenly Steve Jobs presented the Mac. Apple made a

fortune. But the intrepid Steve wasn’t satisfied. He introduced the iPod. A

handheld player with attached headphones. Hundreds of people swarmed to buy

one. Then iTunes came along. An in-computer music store that channeled files

along the Internet? With a built in multimedia mastering programs? And still, Jobs

was able to make a profit – at 99 cents a song – simply because the iTunes Store

supercharged sales of the iPod. But he didn’t get along by good looks.

Many people remember Jobs’ incredible personality. “Like the Bhagwan, driving

around Rancho Rajneesh each day in another Rolls-Royce, Jobs kept his troops

fascinated and productive. The joke going around said that Jobs had a 'reality

distortion field' surrounding him. He'd say something, and the kids in the

Macintosh division would find themselves replying 'Drink poison Kool-Aid? Yeah,

that makes sense”, said Robert X, a noted writer and blogger. He was a great

inspirer. He was once heard to say, “Here's to the crazy ones, the misfits, the

rebels, the troublemakers, the round pegs in the square holes... the ones who see


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things differently -- they're not fond of rules... You can quote them, disagree with

them, glorify or vilify them, but the only thing you can't do is ignore them because

they change things... they push the human race forward, and while some may see

them as the crazy ones, we see genius, because the ones who are crazy enough to

think that they can change the world, are the ones who do.”

Despite his amazing ability at anything, he had no patience with delays. "You've

been on it a week and you're supposed to be brilliant. So what have you done?”

was his attitude, as described by a Next Step employee. Still, Apple continues to

turn out amazing products, and no one’s respect for him ever changes, no matter

how demanding he is. He sees his policy as: “There's an old Wayne Gretzky quote

that I love. 'I skate to where the puck is going to be, not where it has been.' And

we've always tried to do that at Apple, since the very beginning. And we always

will.”

Many people have publicly recognized Jobs. In fact, in 1985, he and Wozniak were

the first-ever recipients of the National Medal of Technology, awarded to them by

President Ronald Reagan. In November 2007, he was named the “Most Powerful

Person of Business” by Fortune Magazine. The next month, none other than

Arnold Schwarzenegger (with First Lady Maria Shriver) inducted him into the

California Hall of Fame. Steve Jobs, though, was almost too modest to attend, as

Shriver told KNBC News. “He’s trying to balance children, family, business, he

doesn’t like to be singled out,” she reported. “He believes that Apple is the star of

the Silicon Valley, not him.”

Although Jobs has taken a leave of absence from Apple because of a hormone

imbalance and further health problems, Jobs’ ideas can never be stopped, and


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though he won’t continue to live on forever, his ideas will live on. Who knows?

Without the Apple I, computers may never have gotten off the ground. You might

be marveling over the new 3 and 4 gigabyte hard drives that just came out, and

disbelieving the very idea that music could play without CDs. Who knows –

computers with easy-to-use monitor connections might not even exist. Thanks to

Steve Jobs, the world is a lot friendlier toward electronics – and he might make it

friendlier still.

3.5 Management Style:

Much has been made of Jobs' aggressive and demanding

personality. Fortune noted that he "is considered one of Silicon Valley's

leading egomaniacs." Commentaries on his temperamental style can be found

in Mike Moritz's The Little Kingdom, one of the few authorized biographies of

Jobs; Jeffrey S. Young's unauthorized Steve Jobs: The Journey Is the Reward; The

Second Coming of Steve Jobs, by Alan Deutschman; and iCon: Steve Jobs, by

Jeffrey S. Young & William L. Simon.

Jef Raskin, a former colleague, once said that Jobs "would have made an excellent

king of France," alluding to Jobs' compelling and larger-than-life persona.

Jobs has always aspired to position Apple and its products at the forefront of

the information technology industry by foreseeing and setting trends, at least in

terms of innovation and style. He summed up that self-concept at the end of his

keynote speech at the Macworld Conference and Expo in January 2007 by quoting

ice hockey legend Wayne Gretzky:


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“ There's an old Wayne Gretzky quote that I love. 'I skate to where the puck

is going to be, not where it has been.' And we've always tried to do that at

Apple. Since the very very beginning. And we always will." ”

Floyd Norman said that at Pixar, Jobs was a "mature, mellow individual" and never

interfered with the creative process of the filmmakers.

3.6 Honors:

He was awarded the National Medal of Technology from President Ronald Reagan

in 1985 with Steve Wozniak (the first people to ever receive the honor),and

a Jefferson Award for Public Service in the category "Greatest Public Service by

an Individual 35 Years or Under" (aka the Samuel S. Beard Award) in 1987.

On November 27, 2007, Jobs was named the most powerful person in business

by Fortune Magazine. On December 5, 2007, California Governor Arnold

Schwarzenegger and First Lady Maria Shriver inducted Jobs into the California

Hall of Fame, located at The California Museum for History, Women and the Arts.

In August 2009, Jobs was selected the most admired entrepreneur among teenagers

on a survey by Junior Achievement. On November 5, 2009, Jobs was named the

CEO of the decade by Fortune Magazine.


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The 4 principles:

Apple has at least four important wider lessons to teach other companies.

Not invented here, and very welcome

The first is that innovation can come from without as well as within. Apple is

widely assumed to be an innovator in the tradition of Thomas Edison or Bell

Laboratories, locking its engineers away to cook up new ideas and basing products

on their moments of inspiration. In fact, its real skill lies in stitching together its

own ideas with technologies from outside and then wrapping the results in elegant

software and stylish design. The idea for the iPod, for example, was originally

dreamt up by a consultant whom Apple hired to run the project. It was assembled

by combining off-the-shelf parts with in-house ingredients such as its distinctive,

easily used system of controls. And it was designed to work closely with Apple's

iTunes jukebox software, which was also bought in and then overhauled and

improved. Apple is, in short, an orchestrator and integrator of technologies,

unafraid to bring in ideas from outside but always adding its own twists.

This approach, known as "network innovation", is not limited to electronics. It has

also been embraced by companies such as Procter & Gamble, BT and several

drugs giants, all of which have realised the power of admitting that not all good

ideas start at home. Making network innovation work involves cultivating contacts

with start-ups and academic researchers, constantly scouting for new ideas and


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ensuring that engineers do not fall prey to "not invented here" syndrome, which

always values in-house ideas over those from outside.

Design for Customer

Second, Apple illustrates the importance of designing new products around the

needs of the user, not the demands of the technology. Too many technology firms

think that clever innards are enough to sell their products, resulting in gizmos

designed by engineers for engineers. Apple has consistently combined clever

technology with simplicity and ease of use. The iPod was not the first digital-music

player, but it was the first to make transferring and organising music, and buying it

online, easy enough for almost anyone to have a go. Similarly, the iPhone is not

the first mobile phone to incorporate a music-player, web browser or e-mail

software. But most existing "smartphones" require you to be pretty smart to use

them. Apple is not alone in its pursuit of simplicity. Philips, a Dutch electronics

giant, is trying a similar approach. Niklas Zennstrom and Janus Friis, perhaps the

most Jobsian of Europe's geeks, took an existing but fiddly technology, internet

telephony, to a mass audience by making it simple, with Skype; they hope to do the

same for internet television. But too few technology firms see "ease of use" as an

end in itself.

Stay Hungry, Stay Foolish

Listening to customers is generally a good idea, but it is not the whole story. For

all the talk of "user-centric innovation" and allowing feedback from customers to

dictate new product designs, a third lesson from Apple is that smart companies

should sometimes ignore what the market says it wants today. The iPod was


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ridiculed when it was launched in 2001, but Mr Jobs stuck by his instinct.

Nintendo has done something similar with its popular motion-controlled video-

game console, the Wii. Rather than designing a machine for existing gamers, it

gambled that non-gamers represented an untapped market and devised a machine

with far broader appeal.

Fail Wisely

The fourth lesson from Apple is to "fail wisely". The Macintosh was born from the

wreckage of the Lisa, an earlier product that flopped; the iPhone is a response to

the failure of Apple's original music phone, produced in conjunction with

Motorola. Both times, Apple learned from its mistakes and tried again. Its recent

computers have been based on technology developed at NeXT, a company Mr Jobs

set up in the 1980s that appeared to have failed and was then acquired by Apple.

The wider lesson is not to stigmatise failure but to tolerate it and learn from it:

Europe's inability to create a rival to Silicon Valley owes much to its tougher

bankruptcy laws.None of these things, of course, guarantees success: you can buy

in clever ideas, pursue simplicity, ignore focus groups and fail wisely--and still go

bust. Apple very nearly did so itself. No doubt the bumptious Mr Jobs will

overreach himself again: the iPhone's success is not guaranteed. But for the

moment at least it is hard to think of a large company that better epitomises the art

of innovation than Apple.


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4. DHIRUBHAI AMBANI: Founder of Reliance

“Only when you dream it you can do it” [1] “Give the youth a proper environment. Motivate them. Extend them the support they need. Each one of them has infinite source of energy. They will deliver.”[2]

“Meeting the deadlines is not good enough, beating the deadlines is my expectation.”[3]

4.1 Introduction

He is the man behind the Reliance Industries. He is the Indian rags to riches

business tycoon. He is the perfect epitome of entrepreneurial spirit. He is none

other than Dhirubhai Ambani.

4.2 Background

Full Name: Dhirajlal Hirachand Ambani

Date of Birth: 28 December 1932

Dhirubhai Ambani was born on 28 December 1932 at Kukaswada near

Chorwad, Dist.Junagadh (now the state of Gujarat, India) to Hirachand

Gordhandhas Ambani and Jamnaben in a Modh family of modest

means(Incidentally,The Gandhis and Ambanis came from the same gothra,the

trading community of Modh baniyas ). Hirachand Govardhandhas Ambani earned

little as a village school teacher. But his wife,Jamanaben knew how to stretch

every paisa in a long way. Hirachand and Jamanaben had two daughters

Trilochanaben and Jasuben and three sons Ramnikbhai,Dhirubhai and Natubhai.

Dhirubhai was extremely demanding, robust of health and difficult to placate from

his very babyhood days.


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As a boy, he possessed immense gusto and enormous energy and was determined

to do what he wanted to do in exactly the way he wanted it done.

Dhirubhai was precocious and highly intelligent and also as highly impatient of the

oppressive grinding mill of the school classroom.He chose works which uses his

physical ability to the maximum rather than mugging up school lessons. When

Jamnaben once asked Dhirubhai and Ramnikbhai to help his father by earning

money,He angrily replied "Why do you keep screaming for money? I will make

heaps of money one day".During weekends,he began setting up onion/potato fries

stall at village fairs and made extra money which he gave to his mother.

When he was 16 years old, he moved to Aden, Yemen. He worked with A. Besse

& Co. for a salary of Rs.300 (Present Day $6.49). Two years later, A. Besse & Co.

became the distributors for Shell products, and Dhirubhai was promoted to manage

the company’s filling station at the port of Aden.

He was married to Kokilaben and had 2 sons, Mukesh, Anil and two daughters,

Nina Kothari,Deepti Salgaonkar.

4.3 Career Growth

Dhirubhai Ambani eventually returned to India and started "Majin" in partnership

with Champaklal Damani, his second cousin, who used to be with him

in Aden, Yemen. Majin was to import polyester yarn and export spices. The first

office of the Reliance Commercial Corporation was set up at the Narsinatha Street

in Masjid Bunder. It was 350 sq ft (33 m2). room with a telephone, one table and

three chairs. Initially, they had two assistants to help them with their business. In

1965, Champaklal Damani and Dhirubhai Ambani ended their partnership and

Dhirubhai started on his own. It is believed that both had

different temperaments and a different take on how to conduct business. While Mr.


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Damani was a cautious trader and did not believe in building yarn inventories,

Dhirubhai was a known risk taker and he believed in building inventories,

anticipating a price rise, and making profits. In 1968, he moved to an upmarket

apartment at Altamount Road in South Mumbai. Ambani's net worth was estimated

at about Rs.10 lakh by late 1970s.

Asia Times quotes: "His people skills were legendary. A former secretary reveals:

"He was very helpful. He followed an 'open-door' policy. Employees could walk

into his cabin and discuss their problems with him." The chairman had a special

way of dealing with different groups of people, be they employees, shareholders,

journalists or government officials. Ambani's competitors allege that he bought off

officials and had legislation re-written to suit him. They recall his earlier days and

how he picked up the art of profiteering from the then-Byzantine system of

controls of Indian officialdom. He exported spices, often at a loss, and used

replenishment licenses to import rayon. Later, when rayon started to be

manufactured in India, he exported rayon, again at a loss, and imported nylon.

Ambani was always a step ahead of the competitors. With the imported items

being heavily in demand, his profit margins were rarely under 300 percent."

Reliance Textiles

Sensing a good opportunity in the textile business, Dhirubhai started his first textile

mill at Naroda, in Ahmedabad in the year 1977. Textiles were manufactured using

polyester fibre yarn. Dhirubhai started the brand "Vimal", which was named after

his elder brother Ramaniklal Ambani's son, Vimal Ambani. Extensive marketing of

the brand "Vimal" in the interiors of India made it a household name. Franchise

retail outlets were started and they used to sell "only Vimal" brand of textiles. In

the year 1975, a Technical team from the World Bank visited the Reliance Textiles'


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Manufacturing unit. This unit has the rare distinction of being certified

as "excellent even by developed country standards" during that period.

4.4 INITIAL PUBLIC OFFERING

Dhirubhai Ambani is credited with starting the equity cult in India. More than

58,000 investors from various parts of India subscribed to Reliance's IPO in 1977.

Dhirubhai was able to convince large number of small investors from

rural Gujarat that being shareholders of his company would be profitable.

Reliance Industries was the first private sector company whose Annual General

Meetings were held in stadiums. In 1986, The Annual General Meeting of Reliance

Industries was held in Cross Maidan, Mumbai and was attended by more than

350,000 shareholders and the Reliance family.

Dhirubhai managed to convince a large number of first-time retail investors to

invest in Reliance. Ambani's net worth was estimated at about Rs.1 billion by early

1980s.

4.5 DHIRUBHAI'S CONTROL OVER STOCK EXCHANGES

In 1982, Reliance Industries came up against a rights issue regarding partly

convertible debentures. It was rumored that company was making all efforts to

ensure that their stock prices did not slide an inch. Sensing an opportunity, a bear

cartel which was a group of stock brokers from Calcutta started to short sell the

shares of Reliance. To counter this, a group of stock brokers till recently referred to

as "Friends of Reliance" started to buy the short sold shares of Reliance Industries

on the Bombay Stock Exchange.

The Bear Cartel was acting on the belief that the Bulls would be short of cash to

complete the transactions and would be ready for settlement under

the "Badla" trading system operative in the Bombay Stock Exchange. The bulls


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kept on buying and a price of Rs. 152 per share was maintained till the day of

settlement. On the day of settlement, the Bear Cartel was taken aback when the

Bulls demanded a physical delivery of shares. To complete the transaction, the

much needed cash was provided to the stock brokers who had bought shares of

Reliance, by none other than Dhirubhai Ambani. In the case of non-settlement, the

Bulls demanded an "Unbadla" (a penalty sum) of Rs. 35 per share. With this, the

demand increased and the shares of Reliance shot above 180 rupees in minutes.

The settlement caused an enormous uproar in the market and Dhirubhai Ambani

was the unquestioned king of the stock markets. He proved to his detractors just

how dangerous it was to play with Reliance.

To find a solution to this situation, the Bombay Stock Exchange was closed for

three business days. Authorities from the Bombay Stock Exchange(BSE)

intervened in the matter and brought down the "Unbadla" rate to Rs. 2 with a

stipulation that the Bear Cartel had to deliver the shares within the next few days.

The Bear Cartel bought shares of Reliance from the market at higher price levels

and it was also learnt that Dhirubhai Ambani himself supplied those shares to the

Bear Cartel and earned a healthy profit out of The Bear Cartel's adventure.

After this incident, many questions were raised by his detractors and the press. Not

many people were able to understand as to how a yarn trader till a few years ago

was able to get in such a huge amount of cash flow during a crisis period. The

answer to this was provided by the then finance minister, Pranab Mukherjee in the

parliament. He informed the house that a Non-Resident Indian had invested up

to Rs. 22 Crore in Reliance during 1982-83. These investments were routed

through many companies like Crocodile, Lota and Fiasco. These companies were

primarily registered in Isle of Man. The interesting factor was that all the


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promoters or owners of these companies had a common surname Shah. An

investigation by the Reserve Bank of India in the incident did not find any

unethical or illegal acts or transactions committed by Reliance or its promoters.

4.6 CRITICISMS

He has been accused of acting unethically, having manipulated government

policies to suit his own needs, and has been known to be a king-maker in

government elections. Although most media sources tend to speak out about

business-politics nexus, the Ambani house has always enjoyed more protection and

shelter from the media storms that sweep across the country.

Tussle with Nusli Wadia

Nusli Wadia of Bombay Dyeing was, at one point in time, the biggest competitor

of Dhirubhai and Reliance Industries. Both Nusli Wadia and Dhirubhai were

known for their influence in the political circles and their ability to get the most

difficult licenses approved during the times of pre-liberalized economy.

During the Janata Party rule between 1977–1979, Nusli Wadia obtained the

permission to build a 60,000 tonnes per annum Di-methyl terephthalate(DMT)

plant. Before the letter of intent was converted into a licence, many hurdles came

in the way. Finally, in 1981, Nusli Wadia was granted the license for the plant.

This incident acted as a catalyst between the two parties and the competition took

an ugly turn.

The Indian Express Articles

At one point in time, Ramnath Goenka was a friend of Dhirubhai Ambani.

Ramnath Goenka was also considered to be close to Nusli Wadia. On many

occasions, Ramnath Goenka tried to intervene between the two warring factions

and bring an end to the enmity. Goenka and Ambani became rivanckinniveols


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mainly because Ambani's corrupt business practices and his illegal actions that led

to Goenka not getting a fair share in the company. Later on, Ramnath Goenka

chose to support Nusli Wadia. At one point of time, Ramnath Goenka is believed

to have said"Nusli is an Englishman. He cannot handle Ambani. I am a bania. I

know how to finish him"....

As days passed by, The Indian Express, a broadsheet daily published by him,

carried a series of articles against Reliance Industries and Dhirubhai in which they

claimed that Dhirubhai was using unfair trade practices to maximise the profits.

Ramnath Goenka did not use his staff at the Indian Express to investigate the case

but assigned his close confidant, advisor and chartered accountant S.

Gurumurthy for this task. Apart from S. Gurumurthy, another journalist Maneck

Davar who was not on the rolls of Indian Express started contributing stories.

Jamnadas Moorjani, a businessman opposed to the Ambanis was also a part of this

campaign.

Both Ambani and Goenka were equally criticized and admired by sections of the

society. People criticized Goenka that he was using a national newspaper for the

cause of a personal enmity. Critics believed that there were many other

businessman in the country who were using more unfair and unethical practices but

Goenka chose to target only Ambani and not the others. Critics also admired

Goenka for his ability to run these articles without any help from his regular staff.

Dhirubhai Ambani was also getting more recognition and admiration, in the

meantime. A section of the public started to appreciate Dhirubhai's business sense

and his ability to tame the system according to his wishes.

The end to this tussle came only after Dhirubhai Ambani suffered a stroke. While

Dhirubhai Ambani was recovering in San Diego, his sons Mukesh


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Ambani and Anil Ambani managed the affairs. The Indian Express had turned the

guns against Reliance and was directly blaming the government for not doing

enough to penalize Reliance Industries. The battle between Wadia - Goenka and

the Ambanis took a new direction and became a national crisis. Gurumurthy and

another journalist, Mulgaokar consorted with President Giani Zail Singh and ghost-

wrote a hostile letter to the Prime Minister on his behalf. The Indian Express

published a draft of the President’s letter as a scoop, not realizing that Zail Singh

had made changes to the letter before sending it to Rajiv Gandhi. Ambani had won

the battle at this point. Now, while the tussle was directly between the Prime

Minister Rajiv Gandhi and Ramnath Goenka, Ambani made a quiet exit. The

government then raided the Express guest house in Delhi’s Sunder Nagar and

found the original draft with corrections in Mulgaokar’s handwriting. By 1988-89,

Rajiv’s government retaliated with a series of prosecutions against the Indian

Express. Even then, Goenka retained his iconic stature because, to many people, he

seemed to be replaying his heroic defiance during the Emergency regime.

Dhirubhai and V.P.Singh

It was widely known that Dhirubhai didn't enjoy cordial relations with Vishwanath

Pratap Singh, who succeeded Rajiv Gandhi as the Prime Minister of India. In May

1985, V. P. Singh suddenly stopped the import of Purified Terephthalic Acid from

the Open General License category. As a raw material this was very important to

manufacture polyester filament yarn. This made it very difficult for Reliance to

carry on operations. Reliance was able to secure, from various financial

institutions, letters of credit that would allow it to import almost one full year’s

requirement of PTA on the eve of the issuance of the government notification,

changing the category under which PTA could be imported. In 1990, the


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government-owned financial institutions like the Life Insurance Corporation of

India and the General Insurance Corporation stonewalled attempts by the Reliance

group to acquire managerial control over Larsen & Toubro. Sensing defeat, the

Ambanis resigned from the board of the company. Dhirubhai, who had become

L&T's chairman in April 1989, had to quit his post to make way for D. N. Ghosh,

former chairman of the State Bank of India. It is also believed that V. P. Singh's

move as Defence Minister came as a direct result of him catching Dhirubhai's tax

evasion.

4.7 DEATH

Dhirubhai Ambani was admitted to the Breach Candy Hospital in Mumbai on June

24, 2002 after he suffered a major stroke. This was his second stroke, the first one

had occurred in February 1986 and had kept his right hand paralyzed. He was in a

state of coma for more than a week. A battery of doctors were unable to save his

life. He died on July 6, 2002, at around 11:50 P.M. (Indian Standard Time).

His funeral procession was not only attended by business people, politicians and

celebrities but also by thousands of ordinary people. His elder son, Mukesh

Ambani, performed the last rites as per Hindu traditions. He was cremated at the

Chandanwadi Crematorium in Mumbai at around 4:30 PM (Indian Standard Time)

on July 7, 2002.

He is survived by Kokilaben Ambani, his wife, two sons, Mukesh

Ambani and Anil Ambani, and two daughters, Nina Kothari and Deepti

Salgaonkar.

Dhirubhai Ambani started his long journey in Bombay from the Mulji-Jetha

Textile Market, where he started as a small-trader. As a mark of respect to this

great businessman, The Mumbai Textile Merchants' decided to keep the market


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closed on July 8, 2002. At the time of Dhirubhai's death, Reliance Group had a

gross turnover of Rs. 75,000 Crore or USD $ 15 Billion. In 1976-77, the Reliance

group had an annual turnover of Rs 70 crore and it is to be remembered that

Dhirubhai had started the business with just Rs.15,000(US$350)

4.8 AWARDS AND RECOGNITIONS

November 2000 – Conferred 'Man of the Century' award by Chemtech

Foundation and Chemical Engineering World in recognition of his

outstanding contribution to the growth and development of the chemical

industry in India.

2000, 1998 and 1996 – Featured among 'Power 50 - the most powerful

people in Asia by Asiaweek magazine.

June 1998 - Dean's Medal by The Wharton School, University

of Pennsylvania, for setting an outstanding example of leadership. Dhirubhai

Ambani has the rare distinction of being the first Indian to get Wharton

School Dean's Medal.

August 2001 – Economic Times Awards for Corporate Excellence

for Lifetime Achievement

Dhirubhai Ambani was named the Man of 20th Century by the Federation of

Indian Chambers of Commerce and Industry (FICCI).

A poll conducted by The Times of India in 2000 voted Him "Greatest

Creator of Wealth In The Centuries". He is the true son of India'


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MANAGEMENT STYLE

1. Roll up your sleeves and help

He did not wait for infrastructure to be created to support his operations. He goes

out and builds it himself; be it a power plant for his petrochemical enterprise or a

canal to bring water from large distances for his cooling plant

2. Be a safety net for your team

There used to be a time when our agency Mudra was the target of some extremely

vicious propaganda by our peers,he gently asked “M” if They needed any help in

combating it. Knowledge that he knew and cared for what his team was going

through, and that he was there for them if needed him, worked wonders for

confidence.

3. The Silent Benefactor

When he helped someone, he never ever breathed a word about it to anyone else.

"Expect the unexpected" just might have been coined for him.

4. Dream big but dream with your eyes wide open

Whenever a task seemed too big to be accomplished, he would reply: “No is no

answer!" Not only did he dream big, he taught all of us to do so too. He realized

the importance of taking dreams and working incessantly to fulfill those dreams.

5. Leave the professional alone

Every professional has their own management style. So he believed to let the

professionals do their work in their own style. This techniques enforced

responsibility among his team.


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6. Change your orbit constantly

When you will change orbits, you will create friction. The good news is that your

enemies from your previous orbit will never be able to reach you in your new one.

By the time resentment builds up in your new orbit, you should move to the next

level. And so on. This is the path to lead India to the development.

7. The arm-around-the-shoulder leader:

It was Dhirubhai's very own signature style. Arm around the shoulder -With that

one simple gesture, he managed to achieve many things. This tendency that he had,

to draw people towards him, manifested itself in countless ways.

8. The Dhirubhai theory of Supply creating Demand

He was neither an MBA nor an economist. But yet he took traditional market

theory and stood it on its head. Not only he succeeded but he bloomed.When

everyone in India would build capacities only after a careful study of market, he

went full steam ahead and created giants of manufacturing plants with unbelievable

capacities.

9. Money is not a product by itself, it is a by-product, so don't chase it

He did not breathe a word about his profits, or about becoming the richest.

A by-product is something that you don't set out to produce. It is the spin off when

you create something larger. Success in attaining that goal will eventually ring in

the cash. For instance, if you work towards creating a name for yourself and

earning a good reputation, then money is a logical outcome. People will pay for

your product or service if it is good. It might sound too simplistic for belief but

look around you and you will know exactly how true it is.


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5. SAKICHI TOYODA: Founder of Toyota Industries

“Why why why why why!!!!!”[1] “Before you say you can’t do something, try it.”[2]

“I have seen more failures then successes.”[3]

5.1 Introduction

He is the man behind the Toyota Industries. He is the Japanese Edison and he is

known as King of Japanese inventors. He is also the founder of Toyota Industries

Co. Ltd. He invented numerous weaving devices. His most famous invention was

the automatic power loom in which he implemented the principle of Jidoka

(autonomous automation). The principle of Jidoka, which means that the machine

stops itself when a problem occurs, became later a part of the Toyota Production

System. He developed the concept of 5 Whys: When a problem occurs, ask 'why'

five times to try to find the source of the problem, then put into place something to

prevent the problem from recurring. This concept is used today as part of applying

lean methodologies to solve problems, improve quality, and reduce costs. He

believed in the following ideology: Endure a hundred times, strengthen yourself a

thousand times, and you will complete you tasks in short order. He is Sakichi

Toyoda. He is the father of the Japanese industrial revolution.


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5.2 Background

Full Name: Sakichi Toyoda

Date of Birth: February 14, 1867

Died: October 30, 1930

The story of Sakichi Toyoda (1867-1930), the great industrial entrepreneur

and national hero, is taught to every Japanese school child. Foreign tourists

are told he was the Japanese Thomas Edison. As recently as 1985, the patent

office listed Sakichi Toyoda as one of the ten most important inventors in

Japanese history. The textile machinery company that he founded eventually gave

birth to the Toyota Motor Corporation. Before the Japanese stock market bubble

burst, the Toyota Motor Corporation committed 150 billion yen (roughly $150

million) for the recently completed Toyota Industrial Museum, a remarkably

well done paean to a vision of social progress as technological progress. More

important, Sakichi continued to provide guidance, especially during difficult

times, to the Toyoda Loom managing engineers he had put in place in the

casting facility.

This report explores both the organizational and the technological aspects of

early Toyoda entrepreneurial history for insights into the foundations of

Toyota's postwar performance and potential implications for economic

development more generally. Moreover, This report describes how the Toyoda

enterprises achieved international competitiveness in textile machinery

production. It elaborates on and supplements the assessments of Morns-Suzuki

and Nakaoka by addressing questions about the relation between Sakichi and

Kiichixo's mechanical innovations and the technology readily available from

foreign machinery suppliers; the extent and character of indigenous Japanese


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innovations in textile technology; the relationship of strategic choices and

innovations in both technology and organization; and the rise of Japanese

industrial leadership as reflected in the negotiations over technology transfer

and a proposed merger between Platt Bros. and two Toyoda enterprises.

Collaborative research reported elsewhere addresses related questions about the

role of industrial organization and national institutions in altering the strategic

options available for Japanese textile and textile machinery enterprise.

An Introduction to the Early History of Toyoda Textile Enterprises:

In 1885, Sakichi Toyoda participated in an evening study group where he

leamed of the newly enacted Patent Law and was said to have set his goal

on invention as an avenue to contribute to national development. Having grown

up in a traditional textile manufacturing region, Sakichi began his efforts at

developing superior hand looms in 1887. Sakichi attended the Third National

Industrial Exhibition in Tokyo in 1890 and visited the machinery pavilion

every day for two weeks. During the following year he patented his first

wooden hand loom invention. Sakichi's technical advance involved linking

the flying shuttle to the movement of the reed when beating down the weft.

This first invention allowed a productivity increase of 50 percent compared

with other indigenous looms in use. But the wooden hand loom was not a

commercial success; at about the same time a flying-shuttle attachment, called

a "battan," was introduced from France which could be attached at much lower

cost than a Toyoda hand loom and offered comparable efficiency.

Sakichi built four or five of his patented looms in a small weaving factory that

he established in the Tokyo area. His endeavor coincided with a period of


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slack trade, however, and Sakichi had returned to his village by the end of

1893. As a means to generate the revenue necessary to finance.

continued loom experimentation, Sakichi invented a yarn-reeling machine, a

device for winding yarn. His feeler produced constant lengths of yarn twice

as efficiently as conventional devices. He relocated the weaving factory and

retail outlet, Toyoda Shoten, to Nagoya and opened the Ito Retail Store as a

sales outlet for the feeler in 1895. Sakichi's second wife and his younger

brother Heikichi managed the store and reeler sale Sakichi invented his first

successful narrow wooden power loom in 1896 and garnered much industry

attention. Along with a reeling machine customer, Tohachi Ishikawa, Sakichi

established the Otokawa Weaving Company as a partnership. Sakichi's capital

contribution consisted of 60 Toyoda wooden power looms. By 1898 a

weaver could operate two or three Toyoda steam-powered looms instead of a

single conventional loom. Productivity in the modernized mill increased four-

fold, cloth quality improved, and costs fell by over 50 percent. In order to

advance his loom experimentation, Sakichi also established an independent

pilot plant in Nagoya running 36 power looms as a basis for gaining

manufacturing experience.

The Introduction of the American System and the Origins of Advanced

Manufacturing in Japan

At the first general meeting of the Toyoda Loom Works in 1907, president

Taniguchi explained:

“It is most regrettable that at the present time we still

do not have sufficient equipment to completely manufacture

this loom...The iron frame narrow looms installed at Nagoya


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Cloth were provided by Toyoda but were manufactured at

the Osaka Kimoto Iron Works as our Shimazaki Factory is

incomplete. The poor results stem from a failure in the

manufacture of the loom. As a result of these failures and

accidents, the Toyoda Loom and its associated patented

equipment reached a stage in which it is unwanted. Not

only Nagoya Cloth Company but at other companies using

Toyoda's iron frame loom, the results are uniformly bad.”

The problems at Kimoto Iron Works were not uncommon among manufacturers

of iron power looms in other countries as well as in machine manufacturing

elsewhere in Japan. The Kimoto Iron Works was not engaged in the manufacture

of interchangeable parts. Almost no two machines used in the manufacturing

process were alike. In large-scale operations looms inevitably broke down.

Without interchangeability, each broken part required a new piece to be

specially made.Sakichi's search for solutions and improvements led him to

hire Charles A. Francis, an American teacher of mechanical engineering at the

Tokyo Higher Technical School who had also been employed as an engineer

for the Pratt and Whitney Company. From 1905 to 1907, Francis had provided

guidance at a Japanese leading machine tool company, Igekai Ironworks,

where he "trained workers in the basic techniques of machine manufacture,"

including "the use of indicators and gauges, the cutting of high precision

gears and screws, and the adjustment of the main [lathe] spindle... [Hie

introduced to the company batch production of standard models. He taught

engineers about...the design of jigs and fixtures, and the layout of equipment

on the production line," and advised managers on essential, high-quality

machine tools to consider purchasing .However, the Igekai Ironworks lacked


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the resources to implement the full plan for reorganization and within a half

a year Francis was dismissed

In confronting the difficulties with the manufacture of Toyoda looms at the

Kimoto Iron Works foundry in particular, Francis redesigned 'tools, developed

standardized specifications, thoroughly standardized the gauges, and drew up

an overall plan for the factory. When the management at Toyoda Loom Works

proved reluctant to pay Francis the full salary Sakichi had promised, Sakichi

had them deduct the required amount (half of Francis' pay) from his own

salary as chief engineer and executive director. Before addressing

manufacturing methods at the Kirnoto Ironworks, Francis first designed and

directed the construction of a machine tool manufacturing plant that produced

lathes and other tools required in production in 1907. Other than a single tool

installed by the Ikegai Ironworks, all the machinery installed in the factory

was the most modern iron machinery from England, Germany, and the

United States. With this equipment, the factory made the approximately 300

gauges required for loom production. With its own tool factory, Toyoda

could establish a system of standards and begin manufacturing interchangeable

parts. Workers were trained in accord with a new division of labor, ending

the craft organization of manufacturing where skilled metal workers made,

owned, and used their own tools. The commitment to establishing new

technological capabilities was reflected in the decision to forgo paying out

dividends to shareholders The Toyoda Loom Works soon developed a series

of new iron-frame models for both narrow looms (the K model in 1908 and

the more successful L model in 1909) and broad looms (model H in 1908).

These Toyoda ironframe looms were mass produced at the factory that


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Francis designed, the first production system employing modern engineering

technology in Japan

Two new facilities were soon established. Because the pilot weaving plant at

Shimazaki had been converted to a warehouse, Sakichi sought to establish a

new experimental factory. He built another pilot weaving factory, the Toyoda

Kikui Weaving Factory, as a shop independent of the Toyoda.

Toyota’s Milestones

• 1867 - First in Customer Satisfaction and Service The NCC embodies

Toyota's commitment to providing best-in-class customer service.

• 1890- Sakichi invented Wooden Hand Loom

• 1896- Sakichi invents Toyoda Power Loom

• 1906- Sakichi invents circular Loom

• 1918 - It will also describe the contributing factors to the location of the

plant. The Burnaston car plant manufactures the Corolla & the

Avensis. In 1918, Sakichi Toyoda revolutionized the Japanese weaving

industry by creating the world’s 1st automatic loom.

• 1924-Sakichi Toyoda invents Toyoda Automatic Loom, Type G, with Non-

Stop Shuttle-change motion.

• 1926 - As described in The Toyota Way, the roots of Toyota's culture can be

traced to the founder of Toyoda Automatic Loom Works, Sakichi Toyoda.

Established in 1926, the company was Sakichi Toyoda's response to seeing

his mother and others working their fingers to the bone weaving on primitive

manual looms. The founder's invention eventually led to patents, globally

respected Toyoda power looms, and great wealth.


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• 1927- Spinning frame production starts. Automatic loom patent sold to Platt

Brothers & Co., Ltd. of the UK.

• 1933 - Risaburo Toyoda initially viewed the investment in automobile

research as risky, but Kiichiro Toyoda maintained enough power in the

company to establish a Loom Works automobile division in 1933.

Kiichiro Toyoda began recruiting Japanese automobile experts, and later that

year the automobile division purchased a new Chevrolet car and began

disassembling it to analyze the vehicle's components.

• 1935 - The founder of the Toyota motor was Kiichiro Toyoda. A1 Proto type

vehicle in the year 1935 is considered as the beginning of the history of

the Toyota Corporation. Japan's Toyota Motor is the world's third largest

carmaker. The company holds a share of around 10% in the global car

market. The Toyota is called as one of the Asian giant in the car making

with a production facility in 12 Asian countries, including Japan.

• 1937 - The current crisis is the worst in the company's history, which began

when Kiichiro Toyoda founded Toyota Motor in 1937. The company grew

out of the textile firm set up by his father two decades earlier. His direct

descendent Akio Toyoda has just been tapped to lead the company through

this turbulent period.

• Jun 1950 - Red flags waved from the top of buildings, and workers

demonstrated for an end to employee reduction proposals and delays in wage

payments. The company was on the edge of bankruptcy when agreement

was reached in June 1950. The union agreed to reduce the work force from

8000 to 6000, and the top management of the company including founder

Toyoda Kiichiro resigned. This was the only strike in Toyota's history.


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• Feb 22, 1983 - Toyota Chairman Eiji Toyoda was just "trying to observe"

labor laws in this country which stipulate that a new company must be

formed before a union can be designated. Smith said. Smith said about 3.000

people will be hired at Fremont for the GM-Toyota venture.

• May 24, 2004 - But on that day in 1938 when Kiichiro Toyoda, the founder

of Toyota Motor Corp. (TM ), instructed his understudy, Eiji, to build a

factory on land cleared from a red-pine forest in central Japan, neither

realized they were about to make history.

5.3 TOYOTA PRODUCTION SYSTEM

Toyota management styles were further developed by Kiichiro and Sayiichi after

diversifying the textile enterprise into automobiles manfucaturing.Toyota

Production System is one such outcome of the management style developed by

Kiichiro and inspired by Sakichi’s management style.

The main objectives of the TPS are to design out overburden (muri) and

inconsistency (mura), and to eliminate waste (muda). The most significant effects

on process value delivery are achieved by designing a process capable of

delivering the required results smoothly; by designing out "mura" (inconsistency).

It is also crucial to ensure that the process is as flexible as necessary without stress

or "muri" (overburden) since this generates "muda" (waste). Finally the tactical

improvements of waste reduction or the elimination of muda are very valuable.


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There are seven kinds of muda that are addressed in the TPS:

1. over-production

2. motion (of operator or machine)

3. waiting (of operator or machine)

4. conveyance

5. processing itself

6. inventory (raw material)

7. correction (rework and scrap)

The elimination of muda has come to dominate the thinking of many when they

look at the effects of the TPS because it is the most familiar of the three to

implement. In the TPS many initiatives are triggered by mura or muri reduction

which drives out muda without specific focus on its reduction.

This system, more than any other aspect of the company, is responsible for having

made Toyota the company it is today. Toyota has long been recognized as a leader

in the automotive manufacturing and production industry.

Toyota received their inspiration for the system, not from the American automotive

industry (at that time the world's largest by far), but from visiting a supermarket.

This occurred when a delegation from Toyota (led by Ohno) visited the United

States in the 1950s. The delegation first visited several Ford Motor

Company automotive plants in Michigan but, despite Ford being the industry

leader at that time, found many of the methods in use to be not very effective. They

were mainly appalled by the large amounts of inventory on site, by how the

amount of work being performed in various departments within the factory was

uneven on most days, and the large amount of rework at the end of the process.


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However, on a subsequent visit to a Piggly Wiggly, the delegation was inspired by

how the supermarket only reordered and restocked goods once they had been

bought by customers. Toyota applied the lesson from Piggly Wiggly by reducing

the amount of inventory they would hold only to a level that its employees would

need for a small period of time, and then subsequently reorder. This would become

the precursor of the now-famous Just-in-Time (JIT) inventory system.

While low inventory levels are a key outcome of the Toyota Production System, an

important element of the philosophy behind its system is to work intelligently and

eliminate waste so that inventory is no longer needed. Many American businesses,

having observed Toyota's factories, set out to attack high inventory levels directly

without understanding what made these reductions possible. The act of imitating

without understanding the underlying concept or motivation may have led to the

failure of those projects.

The underlying principles are known as Toyota Way:

Under the two headings, or "pillars," of Respect for People and Continuous

Improvement, Toyota sums up the values and conduct guidelines with the

following five principles:

Challenge

Kaizen (improvement)

Genchi Genbutsu (go and see)

Respect

Teamwork


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However, external observers have identified 14 points collectively known as

Toyota’s Way.

The 14 Principles: The Toyota Way has been called "a system designed to provide

the tools for people to continually improve their work" The 14 principles of The

Toyota Way are organized in four sections: I) Long-Term Philosophy, II) The

Right Process Will Produce the Right Results, III) Add Value to the Organization

by Developing Your People, and IV) Continuously Solving Root Problems Drives

Organizational Learning. The principles are set out and briefly described below:

Section I — Long-Term Philosophy

Principle 1

Base your management decisions on a long-term philosophy, even at the

expense of short-term financial goals.

People need purpose to find motivation and establish goals.

Section II — The Right Process Will Produce the Right Results

Principle 2

Create a continuous process flow to bring problems to the surface.

Work processes are redesigned to eliminate waste (muda) through the process of

continuous improvement — kaizen. The seven types of muda are:

1. Overproduction

2. Waiting (time on hand)

3. Unnecessary transport or conveyance

4. Overprocessing or incorrect processing

5. Excess inventory

6. Motion

7. Defects


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Principle 3

Use "pull" systems to avoid overproduction.

A method where a process signals its predecessor that more material is needed.

The pull system produces only the required material after the subsequent operation

signals a need for it. This process is necessary to reduce overproduction.

Principle 4

Level out the workload (heijunka). (Work like the tortoise, not the hare).

This helps achieve the goal of minimizing waste (muda), not overburdening people

or the equipment (muri), and not creating uneven production levels (mura).

Principle 5

Build a culture of stopping to fix problems, to get quality right the first time.

Quality takes precedence (Jidoka). Any employee in the Toyota Production

System has the authority to stop the process to signal a quality issue.

Principle 6

Standardized tasks and processes are the foundation for continuous

improvement and employee empowerment.

Although Toyota has a bureaucratic system, the way that it is implemented allows

for continuous improvement (kaizen) from the people affected by that system. It

empowers the employee to aid in the growth and improvement of the company.

Principle 7

Use visual control so no problems are hidden.

Included in this principle is the 5S Program - steps that are used to make all work

spaces efficient and productive, help people share work stations, reduce time

looking for needed tools and improve the work environment.

Sort: Sort out unneeded items


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Straighten: Have a place for everything

Shine: Keep the area clean

Standardize: Create rules and standard operating procedures

Sustain: Maintain the system and continue to improve it

Principle 8

Use only reliable, thoroughly tested technology that serves your people and

processes.

Technology is pulled by manufacturing, not pushed to manufacturing.

Section III — Add Value to the Organization by Developing Your People

Principle 9

Grow leaders who thoroughly understand the work, live the philosophy, and

teach it to others.

Without constant attention, the principles will fade. The principles have to be

ingrained, it must be the way one thinks. Employees must be educated and trained:

they have to maintain a learning organization.

Principle 10

Develop exceptional people and teams who follow your company's

philosophy.

Teams should consist of 4-5 people and numerous management tiers. Success is

based on the team, not the individual.

Principle 11

Respect your extended network of partners and suppliers by challenging

them and helping them improve.

Toyota treats suppliers much like they treat their employees, challenging them to

do better and helping them to achieve it. Toyota provides cross functional teams to


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help suppliers discover and fix problems so that they can become a stronger, better

supplier.

Section IV: Continuously Solving Root Problems Drives Organizational

Learning

Principle 12

Go and see for yourself to thoroughly understand the situation (Genchi

Genbutsu).

Toyota managers are expected to "go-and-see" operations. Without experiencing

the situation firsthand, managers will not have an understanding of how it can be

improved. Furthermore, managers use Tadashi Yamashima's (President, Toyota

Technical Center (TTC)) ten management principles as a guideline:

1. Always keep the final target in mind.

2. Clearly assign tasks to yourself and others.

3. Think and speak on verified, proven information and data.

4. Take full advantage of the wisdom and experiences of others to send, gather

or discuss information.

5. Share information with others in a timely fashion.

6. Always report, inform and consult in a timely manner.

7. Analyze and understand shortcomings in your capabilities in a measurable

way.

8. Relentlessly strive to conduct kaizen activities.

9. Think "outside the box," or beyond common sense and standard rules.

10. Always be mindful of protecting your safety and health.


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Principle 13

Make decisions slowly by consensus, thoroughly considering all options;

implement decisions rapidly (nemawashi).

The following are decision parameters:

1. Find what is really going on (go-and-see) to test

2. Determine the underlying cause

3. Consider a broad range of alternatives

4. Build consensus on the resolution

5. Use efficient communication tools

Principle 14

Become a learning organization through relentless reflection (hansei) and

continuous improvement (kaizen).

The process of becoming a learning organization involves criticizing every aspect

of what one does. The general problem solving technique to determine the root

cause of a problem includes:

1. Initial problem perception

2. Clarify the problem

3. Locate area/point of cause

4. Investigate root cause (5 whys)

5. Countermeasure

6. Evaluate

7. Standardize


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Following are the things which can be imbibed from Toyoda’s career:

Innovation is must for any enterprise to come out as a leader.

Quality is must for any customer’s happiness as well as company’s

growth.

We should not hesitate to pick up the good things from others.

Humbleness is a virtue .

If you can’t start a big venture then start a small one but make sure that

your ideas are backed up by innovations.

Toyota Way’s 14 Principles.


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6. CONCLUSION

Based upon the study of backgrounds, management styles, success of leaders from

diverse fields and diverse regions across the world few common features are

identified. These features are must for a leader to be successful. Every leader had

his own journey, his own specialties which make him different but there is a

common thread of zeal, risk taking, innovation which runs through each of them.

Larry Page and Sergey Brin are behind the information revolution we call Google.

Their motto of don’t be evil is their strength and their faith in customer is the

backbone of their business and revolution. Steve Jobs on the other hand is the man

behind Apple and Pixar. His return to Apple is a dramatic milestone in the history

of any business and that’s why it’s imperative to count him in my study. His

concept of design and love for aesthetics as well as functionality of a product is

unique and is the main reason behind Apple’s success. Dhirubhai Ambani is a

business tycoon from India who started his journey with mere Rs.1500 and built a

vast empire with his sheer dedication and skill. Sakichi Toyoda on the other hand

is a inventor, rather the king of Japanese inventors. Some say him to be Edison of

Japan. His textile enterprise which laid the foundation for coming Toyota motors is

a perfect example of leading with innovation. His concept of quality and

incorporation of American ways at early stage with improvements made his

company a leader. He understood the importance of quality much before its wide

acceptance. Consequently he was mile ahead in development.

Linus

Typewriter

0


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Following qualities can be found in each of these entrepreneurs:

1. Risk Taking:

Whether it is leaving the graduate degree for a basic search engine against

the suggestion of many or it’s the focus on graphical user interface, these

entrepreneurs have always been risk taking.

2. Innovation:

Whether it is polyester cloth or calligraphy based fonts, innovation is always

a foundation for successful enterprise.

3. Exploration of unexplored:

Exploring the unexplored and coming out with new products is a must.

Dhirubhai explore the synthetic fibers as a cloth in Indian market and was

extremely successful. Computation revolution was foreseen by Steve Jobs

and he focused on development of Macintosh.

4. Customers as central point

Customers are the king is well established fact. Any innovation if not

accepted by customers is as useless as a bad idea. Jobs’ definition of design,

as design for functionality along with looks, echoes this point.

5. Competitive

Each of the persons had been competitive enough to their rivals.

6. Philanthropy

Finally, an organizations moral responsibility is to involve itself into

philanthropic needs. Whether it is Google.org or Toyota’s Literacy Program

importance of human welfare is seen in every leader’s works.


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7. Good Human Skills.

Each of these entrepreneurs was good at persuading others. Making your point

heard is a must requirement if you have to be successful in present day world.

At times a poor idea is more successful only because of its incubator to be more

persuasive powers.

The selection of these leaders was done keeping in mind their diverse

backgrounds, covering entire globe. Steve Jobs is from US with a peculiar

background, Toyoda from Japan, Dhirubhai from India and Sergey Brin from

US (native of USSR, although his much life has spent in US.) One more thing

which can be found common among these leaders is the opportunity for them to

be independent. The culture of promoting innovation is not much prevalent in

societies of any other nation as in United States. Their education system

coupled with the environment of innovation and enterprise is the reason we see

any new technology coming from that nation only.

With reference to our system, there is more need of promotion of risk taking

and entrepreneurship. I hope the study will provide a comprehensive view of

the successful leaders who thought beyond routine and are much responsible for

the changes and development in the society.

entrepreneurs

Documents

project report of

mahabir singh bonafide

award of degree

bathinda mahabir singh

degree of masters

success of leaders

bonafide work of

crazy ones