Analysis of Apple Company Assignment Help Background and History of Apple

Apple Inc is US based multinational firm that designs and sells computer electronics, personal computers, hardware

 and software, Macintosh line of computers, iPod, iPhone and iPad. The firm was established in 1976 in Cupertino, California that was named Apple Computer, Inc. by 1977 (About Apple Company, 2012). In 2007, Computer in the company name has removed as it also entered into consumer electronic products. In present, the firm is running its business at the global level in about 13 countries (Apple Product Line, 2010). Also our business case study assignment help experts says that The firm has also recognized as one of the largest publicly traded company in the world market in terms of market capitalization. The firm has kept its product line-up relatively streamlined in comparison of its competitors to make thinks less confusing. Laptops and desktops for consumers or professional, iMac, iPod, and iPhone, etc. are included in the product line of Apple Inc. Company that helped it to achieve record breaking financial success in the competitive marketplace (Why a simple product line is integral to Apple’s success, 2009). The firm belongs to the technology sector and personal computer industry. In the industry, few different companies are running their business that refers the industry’s oligopoly structure (Apple iPad Mini to be pitted against Kindle Fire 2, Nexus 7, 2012).

Supply Chain Management Efforts Demand driven supply chain management is followed by the firm that sustains the production of innovative products such as ubiquitous iPod digital media player. For this, the firm adopted an integrated supply chain that is responsible for driving the performance efficiency. The strategy is responsible for specific supply chain management functions such as finance, sales, distribution and manufacturing (Haag, 2005). Additionally, leading-edge functionality with the new business model is also adopted by the company that facilitates build-to-order and configure-to-order manufacturing capabilities within the firm (Coyle, Langley, Gibson, Novack & Bardi, 2008). In this, previously the firm shipped its manufactured products by sea that was cost effective but time consuming medium of transportation. But soon it utilized air transport that helped the firm to provide its products to the right to a customer’s door began with the iPod era (Apple iPad Mini to be pitted against Kindle Fire 2, Nexus 7, 2012). At the same time our assignment help write that, as a part of SCM, the firm also bought up specialty equipment to improve operational efficiency and effectiveness along with buying customized lasers as it helped to poke the almost-invisible holes that are used to emit a green dot of light on many of the company’s products, including the MacBook Pro and MacBook Air (Why a simple product line is integral to Apple’s success, 2009). At the same time, web-enabled configure-to-order, order entry and order status for customers’ purchasing from Apple to Apple.com also adopted by the management as a part of SCM that increased overall management and supply of the products to the potential customers (Lebreton, 2007). Rule based allocation and real time credit card authorization also helped the firm to integrate its operational activities and strategies with the advanced planning system. This system improved ability of the firm to produce innovative products more and also to cut the 60% build-to-order cycle time or period (Boon-itt & Wong, 2011).

Some issues are faced by Apple Company in its operations that influence its SCM efforts negatively. Mid Managerial level structure of the firm created issues in SCM as it failed to identify operational issues of the different geographies in which it operates (Christophe, 2012). It is because this structure created matrix in the lower level that influences the supplier labor practices negatively in terms of lacking transparency (Burnson, 2012). This structure also created negativity in the placement of SCM within the structure as this structure supports the excessive working hours that created unsafe working conditions in plants in making Apple products (Boyer & Verma, 2009). So, issues related to the structure, management information system and relationship with the labor and other departments were faced by the management in its supply chain management efforts (Haag, 2005).

Product Development Process and Role of Supply Chain Management Product development process in Apple starts with designing new product in which designers are treated like a royalty and supportive environment is provided to design a new and innovative product. Designers do not have any contact with the financial departments and they are free to use any material at any cost for their practical (Apple Product Line, 2010). After designing the product, a team is organized and segregated from the rest of the company through using secrecy agreements for ensuring the positive working on the project of new product development. This phase is called as “Start-Up” that provide freedom to the team for working positively and freeing from the reporting structure of a big company (Haag, 2005). After designing the product, ANPP (Apple New Product Process) started in the form of documenting each step of development process in detail. Stages of creation and completion of the process are mapped-out in this step (About Apple Company, 2012). According to case study help analysis tutors that every Monday executive teams meet to discuss about the development process of the product to take appropriate and relevant decisions (Apple iPad Mini to be pitted against Kindle Fire 2, Nexus 7, 2012).

 As production begins, two responsible people namely engineering program manager (EPM) and the global supply manager (GSM) are appointed by the management to execute the project. In this phase, supply manager and program manager cooperates and takes effective decision through considering ‘what is best for the product’ (Apple Product Line, 2010). After completion of the product designing and production of it, test is conducted by the management to assess or evaluate feasibility of the product. Testing and re-testing of the product helped the firm to take appropriate actions for further production or removal from the production of the newly developed product (Mostofi, 2011). In the whole process of product development, supply chain management plays a fundamental role as this system lockup the supply components, custom components and exclusively agreements that protect uniqueness and innovativeness of its new product. Additionally, operational efficiency to produce the new product of Apple is also increased by its SCM in terms of using resources in effective manner along with aligning cost and technological advancement (Trienekens Uffelen, Debaire & Omta, 2008). Through using and implementing quality control and quality assurance techniques, quality of the products is managed by the management of Apple. In this concern, a team is appointed that manages and incorporates the changes in the product to manage quality of the products (Apple Product Line, 2010).

Process of Capital Equipment and Service Purchase Apple follows a distinct method of purchasing capital equipment and service needed. It has developed an entire system of suppliers to support its business. Its procurement process is quite unique as it intent to get stellar products and services within limited time to make available its customers with best quality products (Apple, 2012). It is the result of its procurement process that company is able to satisfy the demand of its customers throughout the world. As a part of its procurement process, it is given emphasis on building strong relationship with its suppliers to support its long-term growth. It ensures that suppliers are supplying the high standard product and services to it. As a part of selecting the supplier, a supplier registration form is being asked to fill up for ensuring swift verification and screening process. It helps organization to understand the core strength of suppliers whether it would meet the requirement of company or not. This process has effectively helped company to create a base of reliable suppliers contributing in the growth of company. It has highly competitive procurement process by providing equal opportunities for each supplier. Generally, in Apple, suppliers do not get immediate chances to do business (Clevenger, 2011). Based upon the requirement, Apple makes contact with the suppliers from its supplier database. Apple does not make unnecessary purchase from its suppliers. This is reason why there is a huge waiting list of suppliers willing to do business with the company. Generally, there is no bargaining with the suppliers on the price quoted as there is huge competition among the suppliers for Apple’s contracts.

Outsourcing and Manufacturing of Products All products of Apple are generally produced outside the company. Production unit of company outsources from different companies. Since the manufacturing cost involved with products is so high, Apple has decided to outsource its total manufacturing from its suppliers. In addition to this, the high labor cost and the huge taxes have also forced Apple to outsource its production unit to other countries (Capon, 2009). Apple has a tight supervision over the production process of its production partners because of its strict quality control process. This has helped Apple to ensure the quality of products instead of its outsourcing. In addition to this, outsourcing of production unit has also provided organization to quote its own price for the specific products. The suppliers of Apple are generally taken from its supplier database those have registered with the company to do business. Apple does not have to look outside to find its suppliers. All the companies willing to do business with Apple get them registered with its supplier database. The company has mainly used international arena for purchasing the required products. In recent years, China and Taiwan has emerged as the largest manufacturing partner for the company.

Since the labor market and other necessary resources are quite cheap in compare to other countries Apple has chosen these countries’ organization as its manufacturing partners (Forbes, 2012). Chinese manufactures have highest volume of production outsourcing from Apple. Foxconn Technology Group, one of the biggest manufacturing partners of Apple, states that the company has bound with Apple’s quality measures and takes special concerns towards manufacturing of quality products. Apart from this, the company has mainly look for international arena for its production unit since it helps to generate huge amount of profit on the products, as on each iPhone, company makes a good amount of profit by getting it manufactured in China. The same product if would be manufactured in USA, the company would generate less amount of profit than from China (Forbes, 2012). This is the reason behind the major focus of company over international arena of purchasing its material.

Resolving Contract and Legal Issues In order to deal with the legal and contract issues, Company has effective policies. To meet with the contract issues, it has formulated Supplier Code of Conduct as per international recognized standards. As a part of this contract, such suppliers, who violate the labor and human right, health and safety measures, ethical aspects within their organization, are not eligible for the contract with Apple (Apple, 2012). This has effectively helped the company to resolve the issues associated with contract. As a part of its legal issues, it has wide number of policies related to privacy prevention, selling policies etc. As per case study assignment experts specific guidelines have been released against the different legal issues of the company. At the same time, to sort-out these legal issues, the USA jurisdiction has been selected by the company. For resolving issues with international contract, international arbitration with a layer of regulation has been followed by the company. It helps organization to avoid the unfamiliarity of the local courts as the company operates in wide number of countries. Since the decisions are final and cannot be appealed in any court, company has followed this policy (Fucci, Gerrard & Howe, 2010). In relation to its contract with Foxconn, Apple has chosen to handle the dispute of contract under the international law since both countries laws were not known to each other. It has successfully helped organization to tackle the disputes much effectively.

Production and Inventory Control Measures Company has effective inventory control measures to ensure the quality of products. Since it does not manufacture products, it deeply supervises the way of production of its suppliers to ensure the quality of products. At the part of scheduling, it was ensured that the task should be accomplished within time limit with exhibiting good number of people to the job. Apple has an effective inventory system to support its business growth. Generally Apple uses 5 day inventory to avoid the risk of unsold items (Apple, 2008). The turn time for the manufacturing is fixed in the company that is being strictly followed by manufacturing partners. The inventory turnover rate of the company is also quite effective in compare to its competitors that has provided effectiveness to its inventory management. 5 day inventory has successfully helped to increase the demand for Apple’s products in compare to its competitors. The use of inventory tracking system in the organization has effectively helped to determine the effectiveness of its inventory system avoiding the situation of overstock (Brigham & Ehrhardt, 2010). At the same time, the low cost of inventory has also equally contributed in building sound inventory management by determining the growth of organization. These control measures have helped organization to prove its inventory better than its competitors.

Relationship between Supply, Demand and Logistics Apple is known as innovative company in the industry as it created demand among the customers through providing more innovative and creative products. At the same time, it is found that there is relationship between supply and demand of the products of Apple that collectively influenced by the logistic system (Apple, Inc.: Company Supply, Demand and Financial Status, 2007). It is because logistic system of the firm is responsible for delivering the product to the customers and satisfying their demand timely. In concern of Apple, Regional Logistics Finance Systems’ Analyst works for managing logistic system for the company in the competitive world market (Lebreton, 2007). Effective logistic system of the firm also helped the firm to boost its sales in by providing and supplying the products as per the demand of customers (Dornier, Ernst, Fender & Kouvelis, 2008). Demand among the customers towards the products of Apple has been increased from the past years that is positively supported and driven by the supply and effective Regional Logistics Finance Systems of the Company (Apple, Inc.: Company Supply, Demand and Financial Status, 2007). It is because product differentiation and a unique product difference helped the firm to create and increase demand among the customers and use of proper and effective logistics to supply the products that have contributed positively in its growth. It refers the relationship between supply, demand and logistics and contribution of these in organizational growth and success (Blanchard, 2010).

Conclusion On the basis of above, it can be concluded by business assignment help experts that quality level of SCM function the firm is quite good in terms of producing quality and innovative products. Use of leading-edge functionality in the supply chain management is recognized as strength of supply chain management as it reduced the time of build-to-order cycle that increased number of the produced products. Additionally, buy up all available holiday air freight space also recognized as strength as it increased overall efficiency of the supply chain management through reducing time of supply of the products. At the same time, mid managerial level structure and lack of transparency in relationship with labor are recognized as weaknesses of SCM of the firm. It is because these influence to the result of SCM and implementation of the activities and strategies of SCM for business sustainability.

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