Introduction

Operation management system of Apple Inc 

Introduction

Apple was incorporated in the year 1976 by Steve Jobs and other people like Ronald Gerald, Stephen Gary Wozniak. These people aimed to make computers an easily accessible and affordable equipment for every consumer. This mission initiated with the manufacturing of their first personal computer. Currently, after the departure of Steve Wozniak and Ronald Wayne from the company, its value is more than $2.4 trillion in the mart and is performing quite well to attain $60 billion profits through the sales of its products and services despite the outbreak of corona virus throughout the globe (Apple 2022). The company employs more than one lakh people for catering to a wide range of its customers all around the world.

Global operations

The company sustains its international affairs based on market proximity and geography. The segment of America consists of South and North America while Japan manages entire Japan only. Similarly, the Greater China looks after Hong Kong, China, and Taiwan. However, this segmentation cannot depict the international retail affairs of the company because of international trade (Apple 2022). The company also involves itself in supply chain affairs like research and development, testing of concepts, etc.

In contrast to this, the company is segregated into 16 different units namely hardware engineering, software, design, artificial intelligence, hardware technologies, sales, operations, finance, people, corporate communication, marketing communications, worldwide marketing, corporate development, machine learning, etc (Atwood 2016). All these are functional segments instead of multi-divisional items that are hierarchical in nature. This structure has assisted it to focus on important aspects related to its vision and the services they offer instead of the profits or losses by efficient allocation of resources, teamwork, creativity, innovation, etc.

Apple has gained immense experience in the following areas like firstly, it has been providing high quality products to its consumers even though it has been criticized often for its services. However, as soon as consumer make complaints, the company has always launched fixes or updates to such services that indicates clear mission and vision to become the most premium brand in the market (Atwood 2016). In attaining the same, the quality management functions are supervised by its senior VP who undertakes the responsibility of doing all the necessary tasks.

Secondly, the company had 1142 suppliers as at 2019, out of which 204 were its key suppliers. Therefore, in relation to inventory management, the company creates a simple model of supply chain that has assisted it to outperform all its rivals in the market. This was done by Tim Cook who applied strategic changes after the death of Steve Jobs in 2011. He moved the organization from decentralised warehousing to centralised warehousing, thereby fostering competition on a whole. Thirdly, in relation to its product development, the company functions an organizational structure that also combines the features of a matrix organization at the level of product development (Finkle & Mallin 2010). This assists in development of new ideas that is one of the best advantages of Apple. Further, due to this, new goods that cater to consumer’s demand have been manufactured and that has helped the company to continue maintaining its premium price model. The procedure towards attaining this involves the SVP who coordinate the affairs of the respective units required for the manufacture of products or services. This in turn has assisted the organization to serve the niche area it has established while also utilizing such niche area as an obstacle of entry for its rivals as it continues to create and cater to the niche demands of all its consumers sitting in different parts of the globe.

Apple vs Samsung

Unlike Apple, Samsung functions in a product kind of divisional organizational structure at the centre through a centralized decision-making body that is located in Seoul. The company is segregated into 4 primary divisions that are device solutions, consumer electronics, mobile communications, and automotive electronics. This structure that is characterised by a hierarchical segment at the centre has allowed it to remain specialized and innovative. Further, it has also enabled each division to cater to the requirements of the markets. In other words, it has allowed each of its segments to become capable of addressing the individual demands of their own markets by each of them aligning to the trends or variations of their respective markets (Research and market 2011).

However, this mentioned structure also prohibits it from diversifying globally as every division must stay focused towards pursuing the mission by the central decision-making figure in Seoul and therefore, huge waste occurs as a result of work duplication.

Improvement of Apple’s organizational performance

The organizational performance of Apple can be enhanced through its operational effectiveness through the inculcation of atleast two other warehouses that are central in nature. Further, these must be within its chain of supply so that in the emergence of an operational lockdown in any one of the warehouses, the other remaining warehouses can easily take over the necessary requirements. Also, if the other warehouses also get stuck in any manner, the activities of supply chain can prevail although at a lesser capacity.

This can prohibit the abrupt termination of the company’s affairs in the emergence of a terrorist attack, or any other ineffective means that has the ability to influence the functioning of such warehouses (Apple 2022). The company can also take due steps to make sure that its chain of supply is not obstructed by additionally ensuring that the areas of the globe wherein the raw materials are utilized for manufacturing the products are taken good care of. This must be done in a way that the next generation production and exploration practices are utilized. In other words, practices that are environmentally sustainable and friendly to mankind must be adopted so that the upcoming future generations are not caused any harm by the company’s operations.

Conclusion

The mastery of Apple’s international operations has allowed it to efficiently supervise and sustain its process of supply chain. Further, its affairs must be built in a way that it can easily manage the third global pandemic in the history of mankind, i.e., the COVID-19 outbreak. This has allowed the company to decrease its level of inventories by three percent betwixt 2019 and 2020, despite the fact that the supply chain management throughout the world has been obstructed. The company’s revenue from sales enhanced by eleven percent that shows its effectiveness and dedication to attain the mission. Further, through these steps and measures, Apple has been able to effectively sustain its supply chain throughout the year and if it shall abide by the same, it shall continue to be the best supply chain management company in the entire world.

References

Apple. (2022). Apple at work. Retrieved from: https://www.apple.com/in/business/

Atwood, J. F. (2016). Shareholder questions apple’s operations in high-risk countries. New York: CCH Incorporated: Health & Human Resources. Retrieved from https://www.proquest.com/other-sources/shareholder-questions-apples-operations-high-risk/docview/1755853620/se-2?accountid=30552

Finkle, T. A., & Mallin, M. L. (2010). Steve jobs and apple, inc. Journal of the International Academy for Case Studies, 16(8), 49-57. Retrieved from https://www.proquest.com/scholarly-journals/steve-jobs-apple-inc/docview/1426788575/se-2?accountid=30552

Research and markets: Apple inc.: Company profile and SWOT analysis. (2011). Business Wire Retrieved from https://www.proquest.com/wire-feeds/research-markets-apple-inc-company-profile-swot/docview/896978986/se-2?accountid=30552