Businesses that "focus on policy instead of vision" and "pay people for tenure as opposed to paying them for performance" will be unable to compete in the next decade, says the architect who rebuilt Apple Computer Inc.

John Sculley, 49, Apple's chairman, president and chief executive officer, is a former president of PepsiCo's domestic soft-drink unit Pepsi-Cola, where he introduced large-sized plastic bottles, caffeine-free cola drinks and the Pepsi Challenge.He joined Apple in 1983 and two years later wrestled control of the Cupertino, Calif.-based corporation from its co-founder, Steven P. Jobs.

Sculley has doubled Apple's sales, quadrupled earnings and turned a home computer company into one that has IBM looking over its shoulder, while keeping Jobs' casual dress code, free popcorn and Friday afternoon beer busts.

Jobs, who founded Apple along with Stephen Wozniak, dreamed of putting a computer in every household. "The Campus," as Apple's headquarters is called, was an inventor's dream but an accountant's nightmare.

When Jobs was forced out in mid-1985, Apple's stock was at $14 per share, sales were dropping and the company had its first-ever quarterly loss.

In 1987, Apple posted record sales of $2.7 billion and profits of $270.5 million, according to U.S. Securities and Exchange Commission (SEC) documents.

Last week, it reported a 135 percent increase in second quarter profits ($79.7 million) on a 51 percent increase ($867.2 million) in sales and its stock is selling in the $40 range.

Born in New York and trained at Brown University (architecture) and the Wharton School of Business at the University of Pennsyvlania (master's degree in business administration), Sculley turned Apple around by closing three of six plants, laying off 20 percent of its 5,000 employees and instituting strict financial controls and product development deadlines.

Even more importantly, said Sculley, "We totally repositioned Apple out of the home computer market and into the business market, while continuing in the educational market."

Apple now has about 14 percent of the business computer market.