M1 Topic 2 Influences on Operations - Apple Case Study

Question 1

How has Globalisation influenced Apple’s operations

Answer 1

Apple- Foxconn partnership = Economies of scale:New York times 2012 “China provided engineers at a scale the United states could not match…8700 industrial engineers to oversee… 200 000 assembly line…”

Question 2

How has Technology influenced Apple operations

Answer 2

Leading/Bleeding edge tech 2017, iPhone X: Apple executive Craig Federighi, unable to demonstrate, 3D sensing face recognition at the Apple Media launch 🡒 poorly affecting initial expectations

Question 3

How have Quality Expectations influenced Apple operations

Answer 3

2013 replaced iPhone 5 with 5c: used low cost plastic casing, viewed by consumers as a compromise in Apple’s commitment to Quality = low sales

Question 4

How have Legal Regulations influenced Apple operations (3)

Answer 4

2011, Apple-Samsung patent infringement dispute (who copied who):
- Apple sued Samsung US$ 548 million (infringement of patent)

• Samsung counter sued Apple US$ 548 million (if
  worked, affects apples ability to produce certain
  phones, and design future models.)

- Samsung paid Apple US$ 750 million (infringement) + 
  180 million (supplemental damage and interest)

Question 5

How has Environmental sustainability influenced Apple operations (2)

Answer 5

2016, The “Renew initiative” : allowed customers to return old iPhones to the company to be sent to the second hand market or recycling plant

2016 Environmental Responsibility report:

• 999 kg recycled gold
• 29000 tonnes of other materials (steel, copper, glass, ect)

Question 6

How have Ethical issues influenced Apple operations (2)

Answer 6

Apple influenced by Foxconn’s abuse of human rights on workers:

• poor wages
• unsafe working conditions
• excessive overtime

Apple has enhanced, impact of smartphone disposal on the environment:

• 50 million tonnes a year,
• 20% is being disposed of safely