Assignmment on Operations Management (PDF)

RUNNING HEAD: Operations Management
Operations Management

Operations Management 1
Abstract
This assignment throws light on the operations management of the design and technology driven
company, Apple Inc. It highlights the operations strategies adopted by the company, examines
the sustainability approaches on the basis of triple bottom line approach and explores the
opportunities and challenges faced by the company in terms of sustainability. This assignment
also makes suggests some improvements which can be considered by Apple for improving its
overall operations in the future.

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Contents
Introduction......................................................................................................................................3
Overview of Company.....................................................................................................................3
Operations Strategies.......................................................................................................................4
Sustainability Approaches (Triple Bottom Line)............................................................................5
Challenges and Opportunities in terms of Sustainability................................................................7
Suggested Improvements.................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Operations management is the management area which is concerned with the designing and
controlling of production process and redesigning of the business operations in the
manufacturing of products and services. Operations management also bears the responsibility of
ensuring that the operations of the business are efficient and effective in in making less use of
resources and meeting customer requirements (Heizer, 2016).
This assignment focuses on the design and technology driven company Apple Inc. and
highlights the operations strategies adopted by the organization. Moreover, it examines the
sustainability approaches adopted by the company based on the triple bottom line approach and
explores the opportunities and challenges faced by the company in terms of sustainability. This
assignment also suggests some improvements which can be considered by Apple for improving
its overall operations in the future.
Overview of Company
Apple Inc. is a multinational design and technology driven company of America having its
headquarters situated in California. It designs, develops and makes the sales of online services,
computer software and consumer electronics. The online services provided by Apple include the
iOS App Store, the iTunes Store, Apple Music, Mac App Store and iCloud. The software offered
by Apple include iOS and macOS operating systems, Safari web browser, iTunes media player,
iWork and iLife productivity and creativity suites and some professional applications like Xcode,
Logic Pro and Final Cut Pro. The hardware products of Apple include the most popular iPhone
smartphone, Apple smartwatch, iPod portable media player, iPad tablet computer, the Apple TV,
the Mac personal computer and the Home Pod smart speaker (Grady, 2009).
Apple was founded by Ronald Wayne, Steve Jobs and Steve Wozniak in the year 1976 for the
purpose of developing and selling the personal computer of Wozniak named Apple I. Apple Inc.
was then incorporated in the year 1977 and witnessed a significant impetus and growth in
revenue for the company (Apple, 2018).
Being a design and technology driven company, Apple makes the use of most innovative
technology in the market. Design is used as an integrative resource by Apple for bringing
innovation more successfully and efficiently. Furthermore, it uses the strategy of developing the
leading edge products. Firstly, it understands the emerging technologies and then makes the
identification of unmet consumer needs. Apple then aims to utilize innovative technology in
fulfilling those unmet consumer needs. The market capitalization and profitability of Apple is
above the industry average. It is considered to be the most innovative company due to its
continuous spending on research and development (Jaruzelski & Mainardi, 2011).

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Operations Strategies
Operation strategy can be defined as the methods which are used by an organization for the
purpose of achieving its objectives. A company becomes capable of examining and
implementing effective and efficient systems for utilizing personnel, resources and work process
(Slack, 2015).
A number of researches have been conducted by Apple across the world and has resulted in a
variety of strategies. Its worldwide activities related to manufacturing and distribution has been
realigned that assists Apple in supporting the aggressive plans for lower manufacturing costs,
speedy delivery to the customers and development of new products. The key elements of the new
strategy are the reduction of workforce and relocation of production centres. This realignment is
the result of a study. The study pursued the alignment of the operations of Apple with the new
plan for the products of the company such that the products can be delivered to the customers on
time and there is the overall reduction in the manufacturing costs in the long- run. The study
further indicated that Apple can remain innovative and competitive if it integrates the
manufacturing functions with the distribution functions. This strategy is basically for supporting
the success of Apple in the industry in future (Hill & Hill, 2017).
From the beginning, Apple has adopted the strategy to introduce innovations in the technology
along with increasing the capability of launching new technology in the market (Pisano, 2015).
Apple’s operations strategy is highly based on differentiation as it offers high quality products
along with exceptional designs. The products are also easy to use and secure and are offered with
personalized service and high quality bundled software. Some standard interfaces are also
incorporated in the Apple products such as USB ports which have made the Apple products less
closed systems and grant a strong operating system to the users. Apple products have gained
competitive advantage due to the personalized services offered by the organization. The relation
of this fact is directly with the introduction of new stores not due to the reason of being a sales
location but for the purpose of controlling its image and for providing an excellent service (Lee
& Tang, 2017).
The layout design and strategy of Apple places emphasis on the expectations of the customers.
The decision area of the management of operations is addressed through the use of innovative
office layouts that have the capability of encouraging the efficiency and creativity of workflows.
Creativity is considered to be the critical factor among the employees that are involved in the
design and development processes of the products at Apple Inc.
The HR and job design strategies are based on the emphasis on excellence by Steve Jobs.
Therefore, the HR strategies are changed from time to time for reflecting a more social
workplace in Apple for increasing the morale of employees. Apple Inc. has mastered in HR and
job design strategies for the purpose of ensuring continued support for its leadership in the
industry. As far as the area of supply chain management is concerned, Apple makes the use of

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automated processes and regular supplier monitoring to evaluate the productivity and capacity of
the suppliers and their compliance with the Apple Supplier Code of Conduct. These automated
systems are considered to be the main strength of approach adopted by Apple to supply chain
management (Giannakis & Papadopoulos, 2016).
The operations strategy of Apple with regard to inventory management is related to making the
use of a variety of methods of inventory management like serialized method for the controlling
and tracking of Apple products. First in first out (FIFO) method is used by Apple for ensuring
the sale of old models before the release of new models in the market. The inventory
management of the stores is managed by the respective Apple Store managers (Gong, 2015).
Manual and automated processes are used for scheduling activities in the production and supply
chain processes. It also has a dedicated maintenance teams for addressing the maintenance needs
of the organization (Christopher, 2016). Moreover, the operations strategy of Apple involves the
monitoring and evaluation of productivity after considering the benchmarks, standards and
criteria for the diverse activities and global size of the business.
Sustainability Approaches (Triple Bottom Line)
The term sustainability can be defined as the socio- ecological process categorized by the pursuit
of a common ideal. In other words, sustainability is a process that involves change in which the
direction of investments, exploitation of resources and the orientation of institutional change and
technological development are all in harmony and enhance both existing and future potential for
meeting human aspirations and needs (Crane & Matten, 2016).
The management of sustainability is an important aspect for the businesses as a business plays an
important role in the society it operates in. Undertaking effective sustainability approaches not
only improves the reputation of the company among the consumers and investors but also brings
the company into the limelight of media. In other words, undertaking sustainability measures by
a company makes it a sustainable enterprise, leads to the progress of the company and allows it
to reap benefits for the society and for their own selves (Weber & Wasieleski, 2018).
When Apple undertakes its activities, environmental impact is created which in turn harms the
environment. However, Apple keeps into consideration that those products are created that are
best in the entire world and are also best for the world. Hence, it gives adequate importance to
the environment. It continues making efforts towards its environmental priorities. Apple seeks to
contribute towards creating less impact in the climate change. It makes the use of renewable
resources at all its facilities including retail stores, offices and data centres. Relentless innovation
is used in each of its activities including its environmental activities. Apple also applies leading
researches of the industry and makes investment in their own renewable energy projects which in

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turn lowers the emissions from their facilities to 1% of their exhaustive carbon footprint (Arndt
& Ewe, 2017).
The triple bottom line approach is used as a framework used by organizations for the purpose of
evaluating their performance from a broader perspective in order to create greater business value.
The triple bottom line approach allows an organization to think beyond the traditional bottom
line of the business. It takes into account social, economic and environmental aspects. Therefore,
it consists of three Ps: people, planet and profit.
Social Sustainability- social sustainability is concerned with the profits made by the business in
terms of human capital including its position within the local society. The long term
sustainability of the human capital of business is measured by the social bottom line. This is due
to the understanding that a desirable workplace will have the capability of operating in the future
as the workforce of such an organization will be striving to be a part of it (Carroll, Primo &
Richter, 2016).
Apple tries to undertake social sustainability by considering humanity as plural and not singular.
It encourages the role of females in the organization by increasing their participation in diverse
teams for making innovation possible. In other words, women are given importance equal to
men. Apple does not make any discrimination among its employees on the basis of gender
identity or sexual orientation. It also raises voice for LGBTQ (Lesbian, Gay, Bisexual,
Transgender and Queer) rights and freedom across the globe. It is rated as one of the best places
to work for LGBTQ Equality. Apple also believes that every person has the right to get equal
opportunities irrespective of the diverse backgrounds. Therefore, there is both inclusion and
diversity in the organization (Page, 2017).
Environmental Sustainability- the environmental sustainability of a business considers that it
should have a minimal impact on the environment and should consume least natural resources in
order to become a successful business (Bhattacharya, Korschun, Sen & Routledge, 2017).
The sustainability approach adopted by Apple in this regard includes the use of 100% renewable
energy in all its facilities. Furthermore, it considers the natural resources of the earth to be
precious and therefore has found out ways of using them again. It has developed efficient
recycling technologies and a number of other innovations. In other words, it makes sure that less
of the earth’s resources are utilized in the manufacturing of its products. It extracts such valuable
materials from the old devices that are perfect for the development of new products. It has also
developed a disassembly robot named Daisy which helps in recovering more materials without
affecting their quality. Daisy is the recycling robot of Apple (Vezzoli & Manzini, 2008).

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For packaging its products, it makes the use of more recycled products and responsibly sourced
materials in order to cause less harm to the environment. It also protects the sustainable forests
for the purpose of covering the virgin paper used by them. Apple also hold itself accountable for
each and every drop of water used by them and seek ways for conserving water and discharging
waste water in a safe manner.
Economic Sustainability- the economic sustainability aims at creating a business that results in
the strengthening of the economy. It simply does not mean the traditional corporate capital of the
organization but also takes into account the impact caused by the business on the economic
environment. As a consequence, it will continue to exist in the future due to its contribution
towards the overall economic health of the community along with the supported networks.
Moreover, awareness is also important among the businesses of its traditional profits as it plays
an important role for its survival. But it should not be the only motive of an organization
(Schwartz, 2017).
For becoming an economically sustainable enterprise, Apple has made a donation of $500K
towards the anti- poverty initiative SF Gives. Tim Cook, the CEO of Apple, has made public
commitment to charity. For fighting AIDS, Malaria and Tuberculosis, Apple has also raised $70
million for The Global Fund (Dormehl, 2014). In other words, Apple is trying to make every
possible step in order to eradicate poverty from this world. Further it aims at the job protection
and betterment of the employees along with considering the political pressure to create jobs in
the economy. It issues supplier responsibility report from time to time for the purpose of
reviewing the labor conditions in its facilities. In other words, Apple aims at the overall
development of the economy by way of undertaking measures that considers the benefit of the
employees and the overall society it operates in.
Challenges and Opportunities in terms of Sustainability
Apple faces a number of challenges and opportunities in terms of sustainability. For planning
their actions on time, Apple needs to make prior identification of such challenges and
opportunities related to sustainability. The potential challenges and opportunities is integrated
into a multi- disciplinary, company- wide risk management processes. The use of a systematic
method is made for the purpose of assessing
The brand ‘Apple’- Apple has emerged as the strong brand with a good reputation. Any event or
action that has a negative influence on the reputation or the brand including the lack of social
acceptance can create a challenge for the industry benchmark position. This in turn can also
result in impacting the capacity for growth of Apple. The positive and continuous development
of Apple as a strong brand with good reputation has emerged as a great opportunity for the
sustainable growth of Apple and for creating a positive viewpoint among the stakeholders.

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Health and Safety- the identification and prevention of health and safety challenges is of prime
importance for Apple. It also ensures a thorough investigation of every accident and takes the
required action for its prevention in the future. Health and safety is the major challenge for the
sustainability of the organization as it is the design and technology driven company. Therefore, a
number of major processes are undertaken in the manufacturing of the products which can cause
major accidents in the organization. Due care is paid to the health and safety of the employees by
Apple by providing them with health and medical insurance programs. The safety of the
employees travelling around the world is ensured with the help of travel insurance programs,
travel security and safety guidelines and travel information system (Mathur, Broeck,
Vanderhulst, Mashhadi & Kawsar, 2015).
Financial Markets- It is the economic responsibility of Apple to provide benefits to all its
stakeholders through conducting the business operations in a profitable manner. For continuing
its operations in a secured manner, it requires the availability of sufficient funds at all the times
and under all circumstances. Negative impact on funding can arise from a number of economic
uncertainties that take place across the globe. Therefore, Apple needs to convert such challenge
into an opportunity by offering latest innovative technologies to the consumers so that the profits
keep on increasing in every successive quarter (Durant & Fiorino, 2017).
Employees and Competencies of Apple- Apple consider its employees to be crucial for the
organization. Therefore, it ensures that they are capable for securing the competitiveness and
development of business. Succession planning for the important positions in the organization
along with the resource and competencies planning is considered to be important in Apple Inc.
For maintaining sustainability, it becomes a challenge to attract and retain competent talent in the
organization for achieving growth and global presence targets. On the other hand, the inclusion
and diversity strategy adopted by Apple acts as a sustainable opportunity as it has raised its
standards in the minds of its existing employees. This in turn will help Apple in attracting
diverse individuals towards the organization and will provide it the opportunity of selecting best
of the talent from across the world (Khan, Alam & Alam, 2015).
Emerging markets- Apple is able to maintain and develop the presence across the globe in the
emerging markets which in turn creates an opportunity for the organization. The business
development of Apple is linked with their capability of expanding their operations in new and
quickly emerging markets. However, it also faces challenges in relation to the operation in these
markets. Such challenges include certain business limitations as a result of their reputation as an
ethical and responsible corporate citizen (Ross, Beath & Sebastian, 2017).
Environment- environment and climate change comprise the biggest challenge and opportunity
areas of sustainability for Apple. Such challenges and opportunities are transferred by the
customers to the organization and are therefore linked with the technology, products and research
and technology development. It makes the use of energy-efficient technologies in production and

Operations Management 9
also undertakes the recycling of old pones for extracting usable parts from them. The global
challenge related to water is also being considered by Apple by making the least water
consumption during the production of its products. It converts the environmental challenges into
opportunities by promoting recycling, reducing emissions and meeting more rigorous
environmental standards (Song, Bhadbhade & Huang, 2016).
Suggested Improvements
Apple Inc. is undertaking the best of the operation strategies and sustainable practices but still
there are some areas for improvement. Proper consideration of such areas can further enhance
the productivity and image of the organization.
As far as the operations strategies of Apple Inc. are concerned, it can further limit the resources
to be used for covering all the requirements of the strategy. The objectives of the company can
be achieved by bringing coordination in the strategies related to designing, distribution, supply
chain management, etc. When all the activities will be interrelated, it will become easier for
conducting its proper management. Lack of coordination increases the chances of failure of the
strategies. Moreover, it should be ensured that the operation strategies are object oriented and
does not go against the objectives of the company. Consultation should be encouraged at every
stage of the organization such that wrong decision making is avoided (Pattnaik, Jena & Pradhan,
2017).
Apple has made a number of efforts when it comes to sustainability such as eliminating the use
of harmful toxins such as mercury and PVCs, brominated flame retardants (BFRs) from their
products. It has made its packaging smaller, undertakes recycling processes and makes its
products exceed the energy star specification. However, it still has a long way to go. Even if the
new products are launched by the company in solar power factories and conveyed with energy
efficiency, they will still require to be charged in electric grids which are powered by natural gas
or coal.
The only possible way in which Apple can have sustainable products is through the development
of a new business model which has the capability of closing the loops in the life cycle of the
products. Such model will be of great use for working with the products that are developed for
lasting for a long time and offering services rather than new devices (Moloney, 2017).
The ‘planned obsolescence’ adopted by Apple is making the products difficult to upgrade and
repair thereby causing harm to the environment. Therefore, it needs to change the current model
and require showing greater ambition and transparency. Innovation should be made in the
existing technology so that the products can have increased lifecycle such that they are not
required to be changed in less time. This will reduce the impact on the environment (Faghihi,
Hessami & Ford, 2015).

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Conclusion
Therefore, it can be concluded that Apple is a design and technology driven company which
regularly attempts innovation for maintaining its top position in the market. The operation
strategy of Apple is concerned with the formulation of aggressive plans that supports innovative
products with low manufacturing costs which can speedily be delivered to the customers. The
HR and job design strategies are based on the emphasis on excellence by Steve Jobs. The layout
design and strategy of Apple places emphasis on the expectations of the customers. The
operations strategy also considers the inventory management for efficient performance along
with the adoption of manual and automated processes for scheduling activities in the production
and supply chain processes.
Moreover, sustainable approaches are followed by Apple Inc. which takes into account the three
aspects of the triple bottom line i.e. people, planet and profit. It uses environmental friendly
techniques for production and recycles the old products for extracting useful parts. It prefers
inclusion and diversity in the organization by providing equal treatment to every employee. Also,
it undertakes steps for the benefits of the economy such as providing donations for eradiating
poverty, etc. At the end, this report provides certain suggestions for improvement which should
be considered by Apple for further refining its operations and will ensure its success in the long
run.

Operations Management 11
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