If you’re a tech enthusiast and have followed the history of various tech giants throughout their inception, then you must have known of many charismatic and great personalities, who against all odds managed to change the trajectory of their companies. Very few manage to accomplish this feat, some are unsuccessful in running even one company. let us know more about that the Who Is John Sculley?-Know More.
John Sculley did the unimaginable by leading two successful companies and turning them into giants in their respective industries. Yet, not a lot of people know about him. You may be a future entrepreneur or just a tech enthusiast, curious to know about this rather mysterious entity, who changed the way we view modern marketing and even computing. We have covered the life of John Sculley along with his business career in this article.
Who is John Sculley?
John Sculley is an American entrepreneur, investor, and businessman, who primarily focuses on high-tech startups. He is primarily known for being both the Vice President and eventually the President of PepsiCo from 1970 to 1983. After exiting PepsiCo, Sculley became the Chief Executive Officer (CEO) of Apple in 1983, holding the position for a decade until resignation in late 1993.
But that’s not it, we have barely scratched the surface, let’s get to know more about this legendary business tycoon.
Early Life and Education of John Sculley
John Sculley III was born to John Sculley Jr. and Margaret Blackburn on April 6, 1939, in New York City. John Sculley Jr. was a lawyer in Wall Street and his wife Margaret was a horticulturist. Sculley III had two brothers, they all attended St.Mark’s School in Southborough, Massachusetts. He grew up in Bermuda, returning to New York for business opportunities later in his life.
Sculley graduated with a Bachelor’s Degree (B.Arch) in Architectural Design from Brown University in 1961 and further completed his Master’s in Business Administration (MBA) from Wharton School of the University of Pennsylvania in 1963.
Career After Graduation
After receiving his Master’s in 1963, Sculley began working at Marschalk Co. in New York City. Marschalk was an advertising company, focusing mostly on beverages and fast food products. By 1966, he was already an advertising assistant there, working on brands like Coca-Cola and its subsidiaries like Fresca, Sprite, and Tab.
Pepsi-Cola Venture
In 1967, after leaving Marschalk Co., Sculley joined Pepsi-Cola as a trainee, he took part in a six-month training opportunity at a Pittsburgh bottling plant. Pepsi-Cola was a subsidiary of Pepsi Co. After three years of excellent service, Sculley became the Vice President in 1970, at the age of 30, which was tremendously young compared to fellow chairpersons.
Sculley conducted what was considered one of the first consumer surveys in the history of PepsiCo.The product survey had over 350 families participating. The survey resulted in PepsiCo launching larger and various sub-products of their loved soft drinks, including the two-liter bottle. Under Sculley’s leadership, PepsiCo was taking over Coca-Cola as the industry giant, by paying over $300,000 per television spot, while the norm was between $20,000 to $80,000. PepsiCo was successful in dethroning the classic marketing of Coca-Cola.
Profit and Sucess at PepsiCo
A few years later in 1974, after becoming the president of PepsiCo. International Food Operations, Sculley was able to convert the only money-losing division of Pepsi into a huge profit by improving product quality and establishing financial accounts. By 1977, the food division made over $300 million in revenue and $40 million in profit, which was a tremendous change from losses of $157 million and revenue of $84 million.
Pepsi Challenge and Departure from PepsiCo
Though somewhat of a controversial campaign, this managed to gain popularity for Pepsi. It was started in 1975 by Sculley, based on his research. The research consisted of putting blindfolds on participants and making them taste both Pepsi and Coca-Cola. The result of the research found that the participants always chose Pepsi. This was deemed biased due to the test being done primarily in Texas where the market share of Pepsi was low. By this time of this test, Sculley was the Vice President of the United States marketing and sales arm of Pepsi.
Sculley became the youngest President of Pepsi by 1977, a title which he kept for five years until his departure in late 1982.
Apple Computer Inc
The late and great Steve Jobs was successful in luring Scully away from PepsiCo in early 1983, Jobs was convinced that the marketing skills of Sculley will change Apple’s trajectory, which it did. The sales of Apple products went from $945 million to $8.1 billion, under Sculley’s leadership. The signing deal at Apple resulted in a $1 million signing bonus, $1 million in annual salary, and 400,000 shares of Apple.
With the help of Jobs, Sculley launched the Macintosh, replacing the Apple II. Which was a pivotal point in the success of Apple as a company. The price of the Macintosh was increased from $1,900 to $2,500 by Sculley, reasoning the profit margin along with covering the marketing costs. Mcintosh sold well but failed to surpass the sales of the IBM PC, the direct competitor of Apple.
Further Promotions and Rise of Apple
In the mid-1980s, Jobs became more erratic and irrational with his non-linear working style, leading to multiple arguments between him and Sculley, the board of directors decided to side with Sculley and thus Jobs was removed from the managerial post. Sulley was named as the next president and eventual Chief Executive Officer (CEO) of Apple. A post which he was known to keep for half a decade.
During his tenure, Sculley transformed the small startup into what we now know as a technology marvel, introducing products like the PowerBook and the first color operating system, System 7 (Mac OS 7). Sculley is largely credited for the boom of Apple.
Legacy of John Sculley
Often known as one of the best CEOs of the 20th century, John Sculley is the key behind the success of Pepsi and Apple. Being born in a middle-class environment did not stop him from achieving his goals and transforming the way people perceive technology. Without his vision and determination, we would not see the success of Apple and its rise into Silicon Valley. Not only has he helmed bigger companies into stardom, but he has also invested in much smaller companies. In the second innings of his business career, Sculley invested in tech startups and is the chairman of a few.
Today, the world’s top CEOs look up to Sculley. He is often imitated but never duplicated.
