Running head: WEEK ONE APPLE CASE STUDY
Week Week One Apple Case Stud Ni!"le #$aun #U %&'() *a +, -'1% D$. Ki/ R. *a$shall
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WEEK ONE APPLE CASE STUDY
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Week Week One Apple Case Stud Apple 0n!. as 2"unded 3 Ste4e S te4e 5"3s, R"nald Wane, and Ste4e W"6niak "n Ap$il Ap$il 1, 17)%, in the 5"3s8 2a/il ga$age. S""n a2te$ its 2"$/ati"n R"nald Wane s"ld his sha$es "2 Apple 2"$ 9+''. The 2i$st Apple Apple !"/pute$ as 3uilt 3u ilt 3 Ste4e W"6niak, and it as s"ld as a d"(it( "u$sel2 kit that did n"t in!lude a !ase, ! ase, and !"st 9%%% Ti/e, n.d.;. Ste4e 5"3s int$"du!ed the 2i$st *a!int"sh in 17+< hi!h as p$i!ed at 9-,<7=. A!!"$ding t" Ti/e Ti/e *aga6ine, >the *a!int"sh as the 2i$st a22"$da3le !"/pute$ t" "22e$ a g$aphi!al use$ inte$2a!e, $epla!ing 2ust te?t(3ased "pe$ating sste/s ith an intuiti4e la"ut "2 2"lde$s and i!"ns@ Ti/e, n.d.;. This as "nl the 3eginning 2"$ the "n!e ga$age 3ased 3usiness and e4entuall this 3usiness "uld su$pass /an te!hn"l"g(3ased !"/panies t" 3e!"/e a t$endsette$. Thei$ su!!ess is la$gel due t" h" thei$ 3usiness "pe$ati"ns a$e /anaged. Ope$ati"ns /anage/ent O*; l""ks at the di22e$ent di22e$ent p$"!esses "$gani6ati"ns use t" p$"du!e and dist$i3ute thei$ p$"du!t. Apple’s Operation Management
Apple8s O* !"nsists !"nsists "2 using the ten de!isi"ns "2 "pe$ati"ns /anage/ent /an age/ent t" help the "$gani6ati"n gua$antee that all a$eas "2 Apple a$e 3eing $un e22i!ientl. e22i!ientl. Ch$istine R"land "2 the Pan/"$e 0nstitute sas >0n "pe$ati"ns /anage/ent, the ten de!isi"ns d e!isi"ns $elate t" su!h aspe!ts as p$"du!t design, ualit /anage/ent, p$"!ess and !apa!it design, and l"!ati"n st$ateg, as ell as in4ent"$ /anage/ent, a/"ng "the$s@ R"land;. Apple /akes su$e t" i/ple/ent these ten de!isi"ns in 3"th the p$"du!t design and the p$"du!t de4el"p/ent depa$t/ents, thei$ suppl !hain depa$t/ent, the /a$keting and sales depa$t/ent, and 4a$i"us "the$ depa$t/ents th$"ugh"ut the "$gani6ati"n. Apple has used these ten de!isi"ns t" 3e!"/e the leade$s "2 thei$ indust$. Decisions on Goods and Services Design
WEEK ONE APPLE CASE STUDY
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Whethe$ Apple is de!iding i/p$"4e/ents "n p$e4i"us g""ds and se$4i!es, "$ the a$e designing a ne p$"du!t 2"$ the /a$ket, Apple s"li!its ad4i!e 2$"/ 4a$i"us /e/3e$s "2 /anage/ent th$"ugh"ut the !"/pan. When Apple t$ies t" de4el"p and p$"du!e a ne 4e$si"n "2 thei$ *a! !"/pute$ de!isi"ns a$e /ade B"intl 3 the Seni"$ i!e P$esident "2 *a! a$da$e Enginee$ing, the i!e P$esident in !ha$ge "2 s"2ta$e enginee$ing, and the Seni"$ i!e i!e P$esident "2 Ope$ati"ns R"land, -'1=;. 0t is !"lla3"$ati"n like this that has all"ed Apple t" p$"du!e s"/e "$iginal p$"du!ts that !aptu$e the /a$ket as s""n as the 3e!"/e a4aila3le. Product Differentiation
A2te$ the !$eati"n "2 the Apple 0 and the 2i$st *a!int"sh, Apple has 3$an!hed "ut t" "the$ endea4"$s. With Ste4e 5"3s8 p$"du!t /at$i?, the e$e a3le t" !"$ne$ the /a$ket "n deskt"ps & and i*a!; and p"$ta3le !"/pute$s P"e$3""k and i#""k; in 3"th the p$"2essi"nal and !"nsu/e$ seg/ents. 0n -''1, Apple int$"du!ed iTunes, hi!h led t" the !$eati"n "2 iP"ds. P$"du!t inn"4ati"n did n"t st"p the$e. S""n !a/e the 2i$st iPh"ne, the iPad, and in -'1= Apple int$"du!ed a s/a$tat!h. Apple has !"/e a l"ng a 2$"/ the 2i$st d"(it("u$sel2 !"/pute$ that as 3uilt in a ga$age. Product Differentiation Problem Solving
A!!"$ding t" the *#A Kn"ledge #ase: A !"/pan atte/pts t" /ake its st$ateg a sustained !"/petiti4e !"/petiti4e ad4antage. F"$ this t" "!!u$, a p$"du!t di22e$entiati"n st$ateg that is e!"n"/i!all 4alua3le /ust als" 3e $a$e, di22i!ult t" i/itate, and the !"/pan /ust ha4e the the "$gani6ati"n t" e?pl"it this. this. 02 the$e a$e 2ee$ 2i$/s di22e$entiating than the nu/3e$ $eui$ed 2"$ pe$2e!t !"/petiti"n dna/i!s, the st$ateg is $a$e. 02 the$e is n" di$e!t, eas dupli!ati"n and the$e a$e a$e n" eas su3stitutes, the st$ateg is di22i!ult t" i/itate. *#A Kn"ledge #ase, n.d.;
WEEK ONE APPLE CASE STUDY
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When an "$gani6ati"n is highl inn"4ati4e, like Apple, and the use the p$"du!t di22e$entiati"n st$ateg, the the 2a!e "$gani6ing dile//as. 0n Apple8s !ase, the 2"u$ "$gani6ing dile//as the 2a!ed a$e in the 2"ll"ing !ha$t:
Figu$e 1. O$gani6ing dile//as. This 2igu$e illust$ates h" Apple !ateg"$i6es thei$ 2"u$ "$gani6ing dile//as hen using a p$"du!t di22e$entiati"n st$ateg. Managing Quality
The "pe$ati"ns /anage/ent de!isi"ns hen /anaging ualit is handled 3 eight "2 Apple8s Seni"$ i!e i!e P$esidents as ell as the Seni"$ i!e i!e P$esident 2"$ "pe$ati"ns. "p e$ati"ns. The a$e tasked ith ensu$ing that the "$gani6ati"n is in !"/plian!e ith Apple8s set set standa$ds. Ch$istine R"land sas >Apple is kn"n 2"$ high(ualit standa$ds that pe$/eate di22e$ent a$eas "2 the 3usiness, in!luding p$"du!t design and de4el"p/ent, $etail, /a$keting, "nline sales, indust$ial design, and hu/an $es"u$!e /anage/ent@ R"land, -'1=;. #e!ause "2 these high standa$ds, Apple uses a h"listi! app$"a!h t" ualit /anage/ent. Location, Layout, and Strategy
Apple is sele!ti4e a3"ut h" is !a$$ing thei$ p$"du!ts, 3ut the Apple St"$es the/sel4es !an 3e 2"und in /an /an !it /alls a$"und the "$ld. This helps t" /a?i/i6e 3$and e?p"su$e. The Apple St"$e la"ut is /eant t" 2"!us "n !ust"/e$ e?pe!tati"ns ith little t" n" de!"$ati"ns t"
WEEK ONE APPLE CASE STUDY
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e/phasi6e the p$"du!ts. At Apple8s n"n(st"$e l"!ati"ns, !"$p"$ate la"uts help enhan!e !$eati4it, and t" /ake the "$kstati"ns /"$e p$"du!ti4e. With With its <=' st"$es that !an 3e 2"und in 1% di22e$ent !"unt$ies, the ha4e 3e!"/e "ne "2 the /"st lu!$ati4e !"/panies in the "$ld. Supply !ain and "nventory
Ch$istine R"land states >Apple8s suppl !hain is a/"ng the /"st e22i!ient and st$ea/lined in the "$ld@ R"land, -'1=;. T" help ensu$e that this a$ea $e/ains e22e!ti4e, this "$gani6ati"n aut"/ati"n "2 p$"!esses and $"utine /"nit"$ing "2 the !"/pan8s supplie$s. supplie$s. Apple supplie$s a$e $eui$ed t" a3ide 3 the Apple Supplie$ C"de "2 C"ndu!t. Using aut"/ati"n has helped t" st$engthen Apple8s suppl !hain /anage/ent. On!e Apple !$eates "ne "2 thei$ p$"du!ts, the use a se$iali6ed /eth"d t" keep t$a!k "2 thei$ in4ent"$. This /eth"d als" helps in the !"nt$"l "2 the in4ent"$ as ell. Apple has ad"pted the 2i$st in, 2i$st "ut /eth"d 2"$ thei$ in4ent"$. This /eans that the "$gani6ati"n sells all "2 thei$ "lde$ /"dels 3e2"$e the $elease the ne /"dels a$e dist$i3uted. *anage$s "2 the Apple St"$es a$e $esp"nsi3le 2"$ in4ent"$ !"nt$"l 2"$ that pa$ti!ula$ st"$e as ell as "$de$ing ne p$"du!t. Productivity
Apple8s O* keeps a !l"se ee "n p$"du!ti4it. Ea!h a$ea has di22e$ent 3en!h/a$ks and standa$ds 3e!ause "2 the !"/pan8s /assi4e si6e and di4e$sit "2 the a!ti4ities. This "$gani6ati"n uses 4a$i"us /eth"ds t" /easu$e h" p$"du!ti4e ea!h a$ea "2 Apple Apple is. F"$ e?a/ple, Apple St"$e8s p$"du!ti4it is /easu$ed 3 $e4enues pe$ sua$e 2""t, the p$"du!ti4it "2 Apple8s Apple8s suppl !hain is /easu$ed 3 p$"du!t units pe$ Ti/e, and the p$"du!ti4it "2 Apple e/pl"ees that de4el"p p$"du!t is /easu$ed 3 /ilest"ne pe$ Ti/e R"land, -'1=;. #uman $esources
WEEK ONE APPLE CASE STUDY
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One "2 the /"st i/p"$tant a$eas "2 e4e$ e4e$ "$gani6ati"n is its hu/an $es"u$!es R;. With"ut the pe"ple, the "$k !ann"t 3e d"ne. d" ne. P$e4i"usl, Apple8s Apple8s hu/an $es"u$!es st$ategies 2"ll"ed Ste4e 5"3s8 lead and st$essed the i/p"$tan!e "2 e/pl"ee e?!ellen!e. This 3egan t" l"e$ e/pl"ee /"$ale, s" Apple has 3egun !hanging its R st$ategies. Thanks t" Ti/ C""k, Apple has 3e!"/e a /"$e s"!ia3le "$kpla!e. This st$ateg has i/p$"4ed /"$ale, and e/pl"ees a$e /"$e p$"du!ti4e than e4e$. e4e $. E4en ith the ne R st$ategies in e22e!t, Apple Apple d"es still 2a!e a 3ig p$"3le/, and that p$"3le/ is l"sing its design enginee$s. 5"hn $u3e$, an Apple 2eatu$e $ite$, sas >The p$"3le/ isnGt that Apple is 3leeding talent, the p$"3le/ is that the !"uld. 0t "uld 3e de4astating t" the !"/panH Ya$", Ya$", -'1&;, onclusion
What sta$ted as a ga$age(3ased 3usiness has g$"n int" a /ulti(3illi"n d"lla$ !"$p"$ati"n. T" T" /en8s d$ea/s t" !$eate inn"4ati4e te!hn"l"g has $esulted in hund$eds "2 di22e$ent p$"du!t tpes. This su!!ess is 3e!ause "2 h" this !"$p"$ati"n has /anaged its "pe$ati"ns. Apple Apple 0n!. uses the ten de!isi"ns "2 "pe$ati"ns /anage/ent t" ensu$e that thei$ "$gani6ati"n is 3eing $un 3"th e22e!ti4el and e22i!ientl. e22i!ientl. These de!isi"ns in!lude in!lude designing g""ds and se$4i!es, /anaging ualit, l"!ati"n st$ateg, st$ateg, designing an e22e!ti4e la"ut, suppl !hain and in4ent"$ /anage/ent, p$"du!ti4it, and hu/an $es"u$!e /anage/ent. # /a?i/i6ing /anage/ent de!isi"ns in these ke a$eas, Apple !an !"ntinue t" de4el"p inn"4ati4e p$"du!ts that !"nsu/e$s !ann"t see/ t" get en"ugh "2.
WEEK ONE APPLE CASE STUDY
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Re2e$en!es
*#A Kn"ledge #ase. n.d.;. Case stud "n AppleGs 3usiness st$ategies. Ret$ie4ed 2$"/ http:II./3akn"l.!"/I/anage/ent(!ase(studiesI!ase(stud("n(apples(3usiness( st$ategiesI
R"land, C. -'1=, Septe/3e$ 7;. 7 ;. Apple 0n!. "pe$ati"ns /anage/ent: ten de!isi"ns, p$"du!ti4it. Ret$ie4ed 2$"/ http:IIpan/"$e.!"/Iapple(in!("pe$ati"ns(/anage/ent(ten( http:IIpan/"$e.!"/Iapple(in!("pe$ati"ns(/anage/ent(ten( de!isi"ns(a$eas(p$"du!ti4it
Ti/e *aga6ine. n.d.;. 0n the 3eginning ( the Apple $e4"luti"n: ten ke /"/ents. Ret$ie4ed 2$"/ http:II!"ntent.Ti/e.!"/ITi/eIspe!ialsIpa!kagesIa$ti!leI',-++'<,1+)&<+%J1+)&<71J1+) &=&',''.ht/l
Ya$", Ya$", 5. -'1&, *a$!h 7;. The single 3iggest p$"3le/ that Apple 2a!es, and al/"st n"3"d is talking a3"ut it. Ret$ie4ed 2$"/ http:II.3usinessinside$. http:II.3usinessinside$.!"/Iapple(3iggest(p$"3le/( !"/Iapple(3iggest(p$"3le/( a!!"$ding(t"(g$u3e$(-'1&(&
