MBA503 Operations Management: Apple Inc. Decision-Making Models

This presentation provides an overview of Apple Inc.'s operations management and decision-making processes. It covers key aspects such as the company's strengths and weaknesses, operations strategy, decision-making and innovation processes, product and service design, process design, value chain (supply chain), planning and control, and quality management. The presentation also discusses areas for improvement, such as enhancing battery power capacity and processor efficiency. It highlights Apple's reliance on suppliers for manufacturing and assembly, the importance of brand loyalty, and the need for more retail and dealer stores. The analysis includes references to Apple's official website and other relevant sources. Desklib provides access to this and other solved assignments to support students in their studies.

Apple Inc.

1. Description of the organisation
The figure shows the unit
sales in millions for
iPhones in the 2017
fiscal year.

Strengths and Weakness of Apple,
Inc.
Strengths:
 Brand image
 Innovating capability
Weaknesses:
 Limited distribution network
 Premium pricing
Opportunities:
 Distribution network
Threats:
 Increasing competition

2. Operations Strategy
The above figure shows the operations strategies, which are normally
followed in Apple, Inc. Although the operations strategy has changed
over time such as from an iPad manufacturer to iPhones, Apple was able
to change its image. Despite this Apple is both a hardware and software
company.

2. Operations Strategy continue..
There will always be places for improvement. Likewise Apple also needs to
work in few areas to be able to retain its attractiveness for the target
market. Some of these areas are improving the battery power capacity
and the processor efficiency. Powerful batteries will keep the phones last
long whereas improved processor will support multi-tasking and gaming.

3. Decision-making processes and
innovation
 Decision-making takes a vertical movement
 Decisions made are communicated to respective suppliers
 Apple also involves its suppliers in decision-making in a way that its
suppliers share their capacity to produce the amount of orders
 This helps Apple know about its suppliers’ production capacity under a
given situation

3. Decision-making processes and
innovation continue..
 Apple is being criticised for not controlling Foxconn from putting labours
to excessive working hours
 Apple’s carbon footprint impact is also a concern for the company

4. Product and Service Design
 The figure gives a brief overview
of how products are made and
supplied to the market
 Apple makes both hardware and
software products
 These products are manufactured
from Apple’s suppliers
 It also has third-party provider for
assembly services

4. Product and Service Design
continue..
The above graph shows that R&D expenses have been steadily higher for the company.

5. Process Design
 The concept and design is supplied to Apple’s strategic suppliers
 Apple’s suppliers accordingly deal the situation
 Even, some of the assembly work is conducted at third-party providers
of assembly services

5. Process Design continue..
 Brand loyalty is one of the critical success factors (CSFs) for Apple
 The company should look for “Brand Partnerships”
 This will reach brand loyalty to a different level

6. Value Chain (Supply Chain)
 Apple has a value chain
 Apple does not manufacture the products
 Rather, their suppliers do it for the company
 The products once ready are shipped to retailers, dealers or online
customers directly from the suppliers’ end by means of various cargo
services