Question

What company declared bankruptcy and then reorganized/came out of it stronger and for the better?. What made the entity go into bankruptcy, any significant measures it took during bankruptcy, and what happened to it once it came out of it.

Answer 1

What company declared bankruptcy and then reorganized/came out of it stronger and for the better?

Apple
It is hard to believe that the world's largest company by market capitalization was once in dire straits. While never actually filing for bankruptcy, Apple (AAPL) was on the verge of going bust in 1997. At the last minute, arch-rival Microsoft (MSFT) swooped in with a $150 million investment and saved the company. People have speculated that Microsoft only did so because it was worried that regulators would regard it as a monopoly without the competition from Apple in the marketplace.

What made the entity go into bankruptcy, any significant measures it took during bankruptcy,?

Apple was founded in 1976 with the mission of making computers — then bulky, complicated industrial machines — cheap, small and simple so they could become a mass-market product. By the 1980s, the company was one of the world’s best-known brands.

But in 1985, Mr. Jobs was ousted in a boardroom coup. In the following years, the company was increasingly outgunned and outmaneuvered in the personal-computer market it helped invent.

Apple, hamstrung by a lack of new ideas, failed products and leadership turmoil, had lost its way.

Fred Anderson, Apple’s former chief financial officer, said that shortly after he joined in 1996, he initiated a $661 million bond offering to keep the company afloat. “I didn’t know how bad it was until I started digging in,” he said.

By the end of that year, Apple had lost $867 million and the total value of its shares was less than $3 billion.

The ailing company decided to take a gamble. It bought Next, a tech firm run by Mr. Jobs, for $400 million. Mr. Jobs, still synonymous with the Apple brand, would return to the company he had founded.

“It was on the rocks,” Mr. Jobs later recalled. “It was much worse than I thought.”

Mr. Jobs slashed 70 percent of Apple’s product plans, commissioned the company’s “Think Different” ad campaign and reimagined how it put its products together.

“We’re trying to get back to the basics,” a weary Mr. Jobs said in a 1997 internal meeting with staff. A video of the meeting posted online later showed him sporting shorts and sandals. “The question now is not: Can we turn around Apple? I think that’s the booby prize. I think it’s: Can we make Apple really great again?”

The focus on simplicity became a hallmark of Apple, from the way Mr. Jobs dressed — jeans and black mock turtlenecks became his uniform of sorts — to the way his products operated to the eventual look of his company’s retail stores.

In 1998, Apple introduced the iMac G3, a round, colorful, all-in-one desktop computer. It became a hit. Apple had its swagger back.

what happened to it once it came out of it.

Mr. Cook, as chief operating officer under Mr. Jobs, remade Apple’s distribution pipeline to heavily rely on contract manufacturers in China, which gave it the flexibility, cost savings and scale to build such a big business.

As chief executive, Mr. Cook has also overseen most of the rise in Apple’s value. (The total value of the company’s shares was $346 billion when he took the helm in August 2011.) Mr. Cook has been a steady, if unflashy, hand as chief executive, building the iPhone into a huge business, including sales of accessories and services off it.

Now, with Apple reaching the $1 trillion milestone and the iPhone turning 11 years old, pressure is likely to increase for the company to develop a hit new product.

There have been other popular devices, like the iPad, the Apple Watch and routinely updated versions of Apple’s personal computers. But none have come close to the impact of the iPhone.

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