Issues Surrounding Apples Activities - Example

A REPORT ON ISSUES SURROUNDING APPLE’S ACTIVITIES Name Course Instructor Date Executive Summary Apple ranks as one of the most profitable companies globally. Apple produces mobile phone, personal computers, electronic devices and software. This diversification of activities coupled with other strategies has resulted in constant profits for Apple. Other than diversification, stakeholders, and industry standards have been major determinants of Apple’s success through the years Stakeholders including employees and customers play a huge part in the success of the company; therefore, a need to learn and understand the role of each investor in the company. Professional Industry Standards influence the services provided as well as the types and quality of products produced. Understanding the impact of these two factors on Apple will go a long way in informing my future position as a Global Supply Manager. Table of Content Executive Summary 2 Introduction 4 Purpose of Report 4 Background Information 4 Scope and/or Limitations 4 Findings 4 Discussion 6 Conclusions 7 Recommendations 8 References 9 Introduction Purpose of Report As part of Business 1060 course requirements, an investigation on Apple’s stakeholders, industry standards, and bases of operations was conducted with the aim of understanding the company’s global supply operations. This reports also presents findings on the types of communications a Global Supply manager engages while working at Apple; therefore, offer recommendations on the skills that I may require in my future position at Apple. Background Information Apple Inc. is one of the most successful organizations on the planet, with the company having operations in 16 countries. Apple mainly takes part in the production of mobile phones, personal computers, electronic devices and software development. The company employs a business strategy that stresses on innovation and product branding. The strategy has allowed Apple to maintain high sales volumes despite its products being priced relatively higher than other products within the industry. Scope and/or Limitations The study was mainly limited to understanding Apple operations; therefore, provide information that may be useful to a global supply manager at the company. The main areas of study include a description of Apple’s operation bases, the company’s stakeholders, the communication channels in the company and a description of industry standards. Findings A major area of Apple’s operation is the location of its different activities. Apple operates retail stores in sixteen different countries. The company also operates on an online platform, which ensures operations even in countries that lack Apple stores. Apple’s production operations mainly occur in China; with the finished product either being shipped to the customer or to warehouses in the United States (Williams, 2016). Apple also has facilities in its different areas of operations that are dedicated to recycling old Apple products. The study also involved an analysis of Apple’s stakeholders. Apple has three main stakeholders namely the investors, employees, and customers. Each of these stakeholders has a different impact on Apple’s operations. The company strives at ensuring a positive relationship with its stakeholders. Apple promotes a positive relationship with its employees through continuous improvement efforts as well as encouraging creativity among its employees (Thompson, 2015). Apple ensures a positive relationship with its customers through the production of high-quality products. The company also strives at giving back to the community through different development projects. Apple ensures continued profitability, which results in positive relationships with its investors. Understanding Apple’s operations would require an understanding of industry standards governing the company’s activities. Apple products are meant to perform different functions; therefore, different professional industry standards apply to the company. The company talks part in the production of mobile communication devices. The mobile phone industry contains standards that every company has to follow. Some of the standards that may affect Apple include those explaining how large the sim card should be as well as standards on the network frequency to use. Other professional industry standards may include those affecting streaming services (Selleck, 2015). Industry standards on the hardware to use on personal computers affects Apple’s operations. The global supply manager position requires constant communication with the different stakeholders. The position requires the use of both written and verbal communication. Written communication would mainly be used when placing orders, or when giving instructions to a large group of employees. Written communication may be through the use of a memo. Verbal communication would involve giving orders to individual employees. Verbal communication may also be applicable when discussing with employees how to improve the supply process. Discussion Apple has managed to diversify its operations to different nations. The company produces in one country and stores its finished products in a different country, which illustrates high economies of scale. The company produces in China due to the availability of cheap labor. Production in China may, however, result in environmental concerns as American factories have been reported to break environmental rules when producing in other countries. Apple, however, aims at sustainable production, with its industries having been upgraded to ensure production results in minimal negative effects to the environment. Apple’s success is partially attributed to how the company treats its stakeholders. The company includes all stakeholders in its various business strategies. Apple’s customers are the top stakeholders considered when developing CSR strategies. Apple has several environmental programs meant to address customer’s concerns on sustainability. Apple’s employees account for the second most important stakeholders in the company’s CSR strategy (Ditlev-Simonsen & Wenstop, 2013). This stakeholder holder group are the main determinant of the company’s innovation and production abilities. Apple satisfies employees by offering proper compensation. Investors are major stakeholders in Apple with their main concern being maximizing their returns. Apple meets these concerns by maintaining high-profit margins as well as avoiding debt. Industry standards have a major influence on Apple productions. The different standards influence how Apple produces its products. A standard affecting Apple’s operations is that of the amount of money payable to artists whose music streams on Apple’s platforms. Industry standards require streaming platforms to pay artists a certain amount Such standards may result in the company facing litigations if they do not comply. Another industry standard that may affect Apple’s operations may include standards on the size of elements used in different devices including sim cards. Such industry standards may limit the company’s innovation abilities. Conclusions Based on the findings several conclusions can be made regarding Apple’s operations. The study explained that Apple’s operations are affected by its stakeholders and the industry standards. Stakeholders have an impact on Apple’s performance financially. Ensuring that all stakeholders are satisfied would result in increased growth for the company. Each of the stakeholders plays a major role in the success of the organization. As such, satisfying one stakeholder may result in a chain effect among all stakeholders. Industry standards impact a company’s ability to produce, as well as their finances. Industry standards relating to Apple may limit the company’s innovation ability as well as limit their profits. The different services provided by Apple are also governed by specific standards, which may affect the company’s ability to deliver the service. Recommendations Based on information from the findings and conclusion, the following recommendations may be made in regards to Apple’s operations. 1. The company should promote further corporate social responsibility by integrating consumers, and employees in the decision-making process. 2. Apple should aim at constantly challenge industry standards by conducting research to discover new trends that are different from industry standards. 3. Additional research is required to determine the impact of industry standards on limiting a company’s capabilities. References Ditlev-Simonsen, C. D. & Wenstop, F., 2013. How stakeholders view stakeholders as CSR motivators. Social Responsibility Journal, 9(1), pp. 137-147. Selleck, E., 2015. Apple Music will pay industry standards for streaming revenue fees to music labels. [Online] Available at: http://www.iphonehacks.com/2015/06/apple-music-subscription-fes-matches-standard.html [Accessed 06 April 2016]. Thompson, A., 2015. Apple Inc. Stakeholders: A CSR Analysis. [Online] Available at: http://panmore.com/apple-inc-stakeholders-csr-analysis [Accessed 06 April 2016]. Williams, J., 2016. Supplier Responsibility: 2016 Progress Report, s.l.: Apple Inc. Read More