Types of Processes
The management of Apple focuses on various processes in order to improve its operations. First of all, one can speak about the equipment design because in this way, this company tries to minimize the running costs. Secondly, they attach importance to the design of products because this process is important for the sales rates of this corporation and its cost-effectiveness. Apart from that, value chain coordination is also critical for this corporation because it helps to increase the perceived value of Apple’s products.
Value chain integration and outsourcing
The company exercises almost complete control over its supply chain. In particular, it monitors the performance and quality control methods of its suppliers. This approach ensures that each provider of the component parts effectively increases the value of a product. Apart from that, this organization focuses on the distribution and marketing of their products. For example, they operate 423 stores in various parts of the world (O’Grady, 2009, p. 14). So, they can easily differentiate their products among others. These are the main aspects that should be taken into consideration.
Technology
Apple uses technologies that are critical for quality of its products and overall efficiency of its facilities. For example, this corporation invests capital into new process technologies that can decrease the manufacturing costs in the long term. Additionally, this company relies on laser technologies which are needed to manufacture high-quality products requiring.
Capacity and facilities
This company lays stress on the need to use renewable energy in its manufacturing facilities. In this way, they reduce environmental impacts of its activities; moreover, this strategy enables them to reduce operational costs (Apple, 2014). One should mention that the factories of Apple can be easily adjusted to the level of demand. Currently, many of them are located in China. This choice helps the company to get access to skilled workforce as quickly as possible. Secondly, their products can be quickly distributed to various regions of the world. Moreover, these factories can work at least 60 hours per week. This approach helps the company to meet the demand for its products.
Inventory and service capacity
The managers of this company use various demand forecasting techniques in order to reduce the levels of inventory which is often viewed as the underlying cause of additional costs (O’Grady, 2009, p. 14). This requirement is the central part of their operations strategy. Furthermore, they focus on the minimization of storage costs. The managers of this company believe that effective marketing strategies are important for the reduction of inventory. This is why this corporation lays stress on online distribution of goods. Apple is regarded as the role model for other companies that represent electronics industry (Blanchard, 2010, p. 30). Additionally, this organization attaches importance to service capacity. In particular, they rely on outsourcing of such processes as DVD duplication and printing (Mayer, 2007, p. 20). They select service providers that can effectively meet the current needs of the company.
Trade-off analysis
The performance of this company is based on the ability to make trade-offs. The decisions taken by Apple are driven by two factors, the cost-effectiveness of production and the quality of products. This is why the company attaches importance to the selection of suppliers that can be located in various countries such as the United States and China.
Reference List
Apple. (2014). Apple and the Environment. Web.
Blanchard, D. (2010) Supply Chain Management Best Practices. New York, NY: John Wiley & Sons. Web.
Mayer, M. (2007). The Fast Path to Corporate Growth: Leveraging Knowledge and Technologies to New Market Applications. Oxford: Oxford University Press. Web.
O’Grady, J. (2009). Apple Inc. New York, NY: ABC-CLIO. Web.