Supply Chain Management Issues at Apple

Critical Reviews

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Ethics at Apple ............................................................................................................................1
Ethical Issue at Apple..................................................................................................................1
Sustainability at Apple ................................................................................................................2
Intellectual property issue ...........................................................................................................2
Apple's corporate culture ............................................................................................................3
Supply chain management issues at Apple Incorporation...........................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Critical review is the report and evaluation of the thoughts and data in an article. It shows point
of view of writer in light on existing knowledge on the subject and also acquired from related
text. It refers to carefully thinking and effectively as well as taking into consideration both the
strength and weaknesses in the material under review (Moore, 2017). Study is based on Apple. It
is the multinational technology company which design, evolves and sells consumer electronics
products. This purpose of this report is too critical review of different ethical issues, culture,
supply chain management issues faced by the selected firm.
MAIN BODY
Ethics at Apple
According to that Guerrini and et.al., (2017) Ethics is division of philosophy which includes
ordering, defensive and fixing approaches of right and wrong conduct. Ethics are more essential
part of the business which are followed by all employees at the workplace. Every firm tried to
assure that their employees work display proper conduct in all situations. As per the view of
Biller-Andorno and Capron, (2016) Company like Apple tried to create innovative, high quality
goods and services as well as presenting honesty in every business communication. There are
four main principles contribute to integrity like honesty, respect, confidentiality and conformity.
Also, company provides particular policies relating to corporate governance, focusing on conflict
of interest and guidelines on reporting supposed conduct on the website. Firm also give worker
with business conduct helpline which they can utilization to reports misconduct to Audit and
Finance Committee of Apple. This can help to increase the image and reputation of Apple in the
technology industry. Also, this can assist to competitive advantages and create top position of
firm. Following ethics properly, company can improve their performance and productivity in the
industry.
Ethical Issue at Apple
In order to that Sandler, (2016)There are many ethical issues that can damage the image and
reputation of firm. Ethical issues like privacy, price fixing, rioting, sustainability, intellectual
property and so on which can impact on success of the firm like Apple. Due to serious
misconduct or failing in addressing risks appropriately which can damage the superior
reputations. In this context LaFrance and et.al., (2018) privacy in relation to consumer tracking
which controversial issue in recent year. This kind of issue occur due to raise of social
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networking, utilization of internet and mobile devices which can impact on consumer tracking by
firms like Apple. Thus, detected breach in privacy is likely to outcome in rebound against the
firm. For that, company disclosed that certain smartphone apps and software as well as use of
internal GPS devices to collect the information of location on phone by consumer and
government in relation misconduct on user privacy. As compared to that Moore, (2017)
Company improved privacy features in iOS which involves increased Wi-Fi security and policy
which location feature are turned off through default on new iPhone. This can help to increase
the image and reputation of Apple in the technology industry. Also, this can assist to competitive
advantages and create top position of firm. Following ethics properly, company can improve
their performance and productivity in the industry.
Sustainability at Apple
As per the view of Guerrini and et.al., (2017) Sustainability is the largest ethical issue which
become greener firm and decrease environmental effect of their services. Also, it has limitation
addressing the producing, utilizing and recycling of their goods. Firm strives to build quality,
long-lasting goods with materials appropriate for recycling. In this context Biller-Andorno and
Capron, (2016) Apple is planned devolution in which they push people to replace or upgrade
their devices whenever Apple comes out with updated version. Therefore, company needs to
make sure that adopting the sustainability in the firm which can help to reduce the environmental
impact of their facilities. This can help to increase the image and reputation of Apple in the
technology industry. Also, this can assist to competitive advantages and create top position of
firm.
Intellectual property issue
According to that Sandler, (2016) The theft of intellectual property is key concern and issue
which company aggressively pursues. Company is very serious about keeping their proprietary
information secret to prevent other firms from acquiring their thoughts. Company face the issue
relating to intellectual property theft in case of coping the operating system and ROM of Apple
by Franklin. In order to that, Apply filed lawsuit against Franklin for this kind of illegal situation.
After that, court determined that codes and programmes are protected under copyright laws
eventually. This regulation given technology firms with larger protection of intellectual property
theft. This kind of law influence highly and positively on the operation and property of Apple.
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As per the view of Moore, (2017) Company faces many ethical issues in relation to licensed
technology. In this case, Apple filed lawsuit against Microsoft in terms of claimed the licensing
agreement for Window 1.0. The court ruled in favour of Microsoft in which deciding the licence
did not cover look and feel of Macintosh GUI. Although, there are similarities among two cases,
court subordinated that Window did not violate copyright regulation and licensing agreements in
simple term through matching Macintosh GUI. This kind of decision negatively on operation and
image as well as reputation of the Apple. As compared to that Guerrini and et.al., (2017) Apple
claims an overarching ethical issue which is related to legitimacy. In terms of, company pursuing
honestly believes boundaries on their patents and simply trying to cast their challengers in bad
light to gain market share. It can seem Apple is too competitive that companies do not
adequately secure their intellectual property can simply have it copied through rivals.
Apple's corporate culture
According to the Hickman and Silva, (2018) corporate culture refers to interaction of employees
and management in the organisation to handle and solve the various business transaction such as
the change in environment, competitors strategies etc. it is rooted in the company goal,
objectives, mission, vision and approach to the customers, labour and grater communities. From
the case study of Apple it can be concluded that Apple has skilled employee in the organisation
and a strong corporate culture to manage the external hurdles and resolve the various issues.
Apple transform itself from computers to strong customer electronics company. According to the
case study apple follow the evangelism concept in the organisation to use the people to promote
corporation product. The chief evangelism function is to spread the good image and the quality
of the product to the customer to attract them toward the organisation. They are also the loyal
customer of the company.
According to the author Zhao, Teng and Wu, (2018) evangelism make a positive impact on the
performance of the company. It reduces the advertising cost and increases the mouth publicity of
the quality of products of Apple. It helps to attract the customer and help to share the satisfaction
level of loyal customer to the new ones. But it also argued by Kolko, (2015) the author that the
evangelism also spread the negative image of company. If the customer is dissatisfied with the
product than it they also influence there friends and family to not buy the products of Apple.
Evangelism only works when employee are willingly ready to spread the news about the
company. To improve the morale of the employees Steve Jobs implement two changes in the
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organisation. Jobs involve the employees by organising debate in the company and create the
vision in which employee believe. It helps them to feel a part of the company. The pressure on
the employees to spread the news make negative impact.
As per the views of Gunter and Hall, (2017) Apple has a unique corporate culture which
differentiate it from other companies culture. Jobs encouraged employee's to think out of the
box. The innovation, original thinking is quite common in the culture of the Apple. They involve
the employees in the decision making process, and plan the strategy for the organisation which
help the corporate to get the different views on the critical aspect and provide different ways to
solve the complication. But it also criticises by the Landry, Bernardi and Bosco, (2016) that the
involvement of employees may affect the privacy and secrecy of the information of the customer
or the success formula of Apple in market.
In the views of Borodai, (2017) to improve the corporate culture Apple focuses on the retail
employees to provide their best services to the customer to feel them valuable and encourage
them to purchase the Apple products. To improve the relation with the customer Apple provide
extensive training and development program to their employees and help them to learn the new
skills to develop their personality and analytical skills. They also provide the internship program
to the students and freshers in the company so they can learn about the Apple performance and
program. But from the view point of Schroeder, (2017) the negative aspect of focusing retail
employees is that the training and development program unnecessarily increases the cost of the
company. The internship program also reason for wastage of money and resources because intern
work for view months and its not necessary that they attached to the company after completion
of their internship.
According to the Williamson, (2018) Apple also focuses on the environment aspect with the
employee concern. To reduce the environment impact it offers different incentives to the
employees who use the public transport rather than to the personal vehicles. For the
sustainability Apple invest $850 in solar power. It also provides the free buses which runs on the
biodiesel and provide the different facility such as 300 electric charging vehicles, fitness centre,
underground auditorium by the budget of $5 billion. The solar technology help to reduce the
environment impact and sustainable growth. But from the view point of (Warrick, 2017) the use
of solar energy also have some negative impact. In the bad and cloudy weather the solar energy
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does not work and create the problem in transportation which are based on the solar plant. It may
create delay the work which are based on these solar energy plant.
Supply chain management issues at Apple Incorporation
From the view point of Monczka and et.al., (2015) Apple faces the suppliers code of conduct and
pre forms factory audit in the organisation. The pre form factory audit also make a positive
impact on the performance of the company. It helps them to conduct successful audit and
evaluate the labour practices which improve the performance of the employees and labour and
encourage them to perform better in the company to get the higher incentives and rewards. Pre
forms factory audit help to improve the compliances and supply chain management in the
company.
Apple helps to remove the underage workers need from the supply chain by conducting the audit.
If they found any compliances or violation of company policies than they re – evaluate the
performance within the 30 days, 60 days and 90 days. It provides effective measures to eliminate
the compliances and if the suppliers are not able to improve than they drop out the suppliers. But
from the view point of Clarke and Boersma, (2017) the re-evaluation of the performance of the
suppliers increases the cost and time of the company to focus on certain suppliers. It also affects
the supply chain management of the company. Apple has to focus on such as expenses and
develop new measures to improve the supplier performance and provide regular internal audit in
the company so they can evaluate the performance on the basis of their work.
CONCLUSION
This report has summarized that company needs to protect their intellectual property for reducing
theft and copying. It can be concluded that follow the sustainability for becoming greener for
reducing the environmental impact. This can aid to increase image and reputation of the firm in
the industry in which they operate. This can help to increase the image and reputation of Apple
in the technology industry. Also, this can assist to competitive advantages and create top position
of firm.
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REFERENCES
Books and Journals
Biller-Andorno, N. and Capron, A.M., 2016. Ethical issues in governing biobanks: global
perspectives. Routledge.
Borodai, V., 2017. Brand of the employer as DNA of corporate culture of service
company. European Research, (1). pp.34-35.
Clarke, T. and Boersma, M., 2017. The governance of global value chains: Unresolved human
rights, environmental and ethical dilemmas in the apple supply chain. Journal of
Business Ethics, 143(1). pp.111-131.
Guerrini and et.al., 2017. The rise of the ethical license. Nature biotechnology. 35(1). p.22.
Gunter, H.M. and Hall, D. eds., 2017. Corporate elites and the reform of public education.
Policy Press.
Hickman, C.R. and Silva, M.A., 2018. Creating excellence: Managing corporate culture,
strategy, and change in the new age. Routledge.
Kolko, J., 2015. Design thinking comes of age.
LaFrance and et.al., 2018. Intellectual Property: Cases and Materials. West Academic
Publishing.
Landry, E.E., Bernardi, R.A. and Bosco, S.M., 2016. Recognition for sustained corporate social
responsibility: Female directors make a difference. Corporate Social Responsibility and
Environmental Management, 23(1). pp.27-36.
Monczka, R.M., and et.al., 2015. Purchasing and supply chain management. Cengage Learning.
Moore, A., 2017. Intellectual property and information control: philosophic foundations and
contemporary issues. Routledge.
Sandler, R. ed., 2016. Ethics and emerging technologies. Springer.
Schroeder, J.E., 2017. Corporate branding in perspective: a typology. European Journal of
Marketing, 51(9/10). pp.1522-1529.
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Warrick, D.D., 2017. What leaders need to know about organizational culture. Business
Horizons, 60(3). pp.395-404.
Williamson, B., 2018. Silicon startup schools: technocracy, algorithmic imaginaries and venture
philanthropy in corporate education reform. Critical Studies in Education, 59(2).
pp.218-236.
Zhao, H., Teng, H. and Wu, Q., 2018. The effect of corporate culture on firm performance:
Evidence from China. China Journal of Accounting Research, 11(1). pp.1-19.
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