1.Review Apple’s supply chain for its iPhone product. What difference set it apart from its Competitors?
3.What are the challenges that Apple faces in the future, and what are the implications for its Supple Chain?
4.As Jessica Grant, what recommendations would you make to the company’s vice-president, Phillip Duchene and why?
1.The entire supply chain system (internal and external) is strategically controlled by Apple concerning its subcontractors (example, Foxconn). The designers of designing department in Apple, persistently present in the factory premises of suppliers to translate the prototypes in mass production in effective manner. Subsequently, the products or devices of Apple are offered in a restricted number of configurations, and this aspect or feature allows the supply chain to be more responsive or supple (Crandall, Crandall, & Charli, 2014). The capabilities as well as organizational processes of Apple are assimilated because the processes which are going to be carried out are determined through the capabilities. This facilitates Apple`s assimilated supply chain to trail the life cycle of iPhone for a period of one year. As due to the feature of perishable product, iPhone requires flexible processes and supply chain to outstrip it`s time to market.
The difference which set part Apple from its competitors, as the competitors of apple have distinct accountability and R&D department for each product segment, however there is high assimilation of information system, accounting processes and R&D department in Apple. This assimilation facilitates in enhancing the information flow and innovations as well ( Kerzner, 2009). Additionally, Apple use to invest enormously in R&D. These strategic choices or high investments by Apple, makes it more expensive for its competitors to compete.
2.Apple avails benefits from the way it manages the operations of its supply chain. Apple use to create joint ventures with the suppliers for its products; this joint venture helps in producing the products which are required by Apple. For instance, Apple established relation with its suppliers or subcontractors and the designers worked with the suppliers to create the product more effective as the cohesive work done by the Apple designers and the suppliers facilitated in mass production by transforming the prototypes effectively (Segall, 2011). Another example related with the benefits which is related with managing the operation of supply chain is related with the logistics, as the queries of the customers related with error in product are solved by the company promptly and this create satisfaction among the customers which is one of the advantage for Apple which gained through managing its supply chain operations.
3.The challenges which are going to be face by Apple in future would be related to the sustained origination of its supply chain systems beside this Apple would also have to concentrate on the cost which incurs on the manufacturing of the products which are potentially worthless. Innovation is require in the products in order to draw the attention of the customers. In addition to this, Apple might also face the challenge related with overhead cost related with manufacturing of products(Hossenlopp, 2010). As, enormous investment is made by Apple in its research and development department. This investment is made by Apple with an objective for creating more developed product, but high investment in R&D department could lead to increase the manufacturing cost of products and this can be a challenge for Apple in future, as the increase in manufacturing cost will lead to high price of the end product and this may not be accepted by customers(Li, 2014). Ethical issue can also be challenge in future for Apple, as for production of products, company requires huge labor force. Subcontractors hire temporary labors and lay of the labors when the manufacturing process is finished. This might create ethical issue as the labors are not treated fairly and this situation could also draw the attention of public and may bring down the confidence of customers.
The implications for the supply chain of Apple could be related with the product`s sales estimation. As, in case the estimation in sale goes wrong then it can affect a number of process and supply chain is one of them. Mistake in estimation of sales could lead to fluctuations as well as layoffs in its supply chain.
4.As Jessica grant I, would like to recommend Philip Duchene to clamp the percentage of stock of Apple unaffected in MXE`s portfolio in the meantime it would be better to reach at some conclusion after an additional investigation on product as well as technology development by Apple. Although the products offered by Apple are less innovative but the focus can be laid on the iPhone series as these series of product catch attention of the customers and in turn could enhance the benefit for the company.
I would also like to recommend, to look at the companies which are doing business with Apple. As, the prices of the stock of these companies will depend upon the large order from Apple. Supplier companies which are doing business with Apple could be added to BXE`s portfolio, because of their high revenue generation from Apple. The companies (supplier companies) which are well doing business with Apple can be introduced to the portfolio of BXE as they could be helpful in promoting growth of the firm.
Kerzner, H. (2009). Project Management. John Wiley & Sons.
Crandall, R., Crandall, W., & Charli. (2014). Principles of Supply Chain Management. CRC Press.
Hossenlopp, R. (2010). Organizational Project Management: Linking Strategy and Projects. Management Concepts Inc.
Lehmann, O. (2016). Situational Project Management: The Dynamics of Success and Failure. CRC Press.
Li, L. (2014). Managing Supply Chain and Logistics. World Scientific Publishing Co Inc.
Segall, K. (2011). Insanely Simple: The Obsession That Drives Apple's Success. Penguin UK.