A Brief History of the Company. Free Essay Example

Apple Inc is a multinational company based in America that designs, manufactures, and sells computer software, online services, and consumer electronics. It is one of the largest technology companies along other giants such as Google Amazon and Facebook. The company traces its history back in 1976 when Stephen Wozniak and Steve Jobs and Ronald along Ronald Wayne dropped of college go establish Apple Computer company (Gsmarena, 2019). The three partners designed the computers' Apple II series, which was the first personal computer to be commercially successful. a year later, the founders of the company registered their business as company in Cupertino, California. Apple's prominence grew in 1984 after introducing iPod, included several technologies in the process of creation of computers and the computers themselves (Khan et al. 2015). Apple also changed the design of computers. The changes and advancements attracted more consumers and generated enough revenue for the company to start venturing into other markets across the continent. Therefore, although Steve Jobs, the former CEO of the company, bid farewell to the world, his legacy still reigns as he left behind a successful company serving the global market.

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Overview of Apple's operations and processes.

The company has numerous programs to ensure sustainability and successful running of the company. The company offers in-store technology, sales training, staffing, and merchandising. The areas operations within the company are inclusive of Point of Sale Operations, Channel Shared Services, Contracts management, Sales Training and Enablement program, executive briefing, Sales Program Analytics, and Channel Program Management (Apple Inc, 2019). Further, Apple's manufacturing process has been highly undervalued, but it is one of its drivers of success. The company manufactures and designs its products with other two companies, Product design, and Jony Ive's Industrial Design. The design team spends 90 percent of its time manufacturing and implementing ideas (Kahney, 2019). The operations team ensures that the company can manufacture its products on a large scale for supply. Apple operates its supply chain by purchasing materials from suppliers and shipping them to the assembling plant situated in China. Consumers purchasing from the company's online store can then get their products shipped from the plant. Apple stores other products in the central warehouse at Elk Grove, California, where they are shipped to other distributors and retail stores (Apple Inc, 2019).

Apple's Supply chain strategy

Apple's strategy towards its supply chain management is among the main drivers of success. The remarkable strategy employed led to its promotion from 2015's Top 25 Supply Chains after topping for three consecutive years to its current category of "supply chain masters." The current CEO, Tim Cook, has gained reputation over his focus on improving the company's supply chain to maintain its competitive advantage in the market. The company employs an "agile supply chain strategy" that focuses on flexibility and responsiveness to the needs of its consumers (Hettiarachchi, 2016). The risk of a shortage of supply has been prevented by pooling its inventory. The company's agility strategy enables it to respond to the unpredictable, diverse, changing needs and demands of the consumers.

Apple has one of the largest numbers of suppliers summing up to a total of 785suppliers from different countries across the world. According to the 2015 Supplier List of the company, the top suppliers are accountable for 97% of Apple's supply chain, which means the remaining 585 suppliers account for only 3% of the supply chain (Lu, 2014). Apple's supply chain is diversified to include other manufacturing partners from Taiwan and China and to secure its suppliers that distribute new products like Apple watch. Its strategy of using diverse and multiple suppliers provides it with numerous advantages over other tech giants. For instance, it allows it hedge any supply chain disruptions and delays thus maintaining its gross margin. A large number of suppliers also increases the company's production capacity in response to the increasing and changing demands of the consumers (Lu, 2014). The strategy has also cut down supply costs as the multiple suppliers have to compete for the business. Apple can process large and numerous pre-orders, which the company analyses to forecasts its demands. The company also has exclusive relationships with its suppliers, which prevents its competitors from using a similar production capacity.

Conclusively company envisions being in control of the primary technologies and participating in those markets that they can effectively serve and make a great and significant contribution. The supply chain strategy employed by Apple ensures that the company meets the demands of its customers, thus making a significant impact in the markets in which it operates. The constant supply and pooling of inventory enable the company to deliver the products to their customers any time they need them, as there has never been a shortage of products. Further, the main goal of the company is to obtain and deliver products and services within the specified tight timeline at reasonable costs that correspond to the shareholders' and customers' expectations. Apple's strategy of employing numerous suppliers has enabled the company to meet its goal as it ensures a smooth and consistent supply chain that lacks disruptions. The low cost of supply resulting from a large number of suppliers reflects the reasonable prices charged on Apple's products. Therefore, Apple's successful operation and sustainability in the tech market can be attributed to the company's exceptional supply chain management.

References

Apple Inc. (2019). Operations and Supply Chain: Build the highest standards, deliver on the highest expectations. Jobs at Apple. Retrieved from https://www.apple.com/jobs/us/teams/operations-and-supply-chain.html

Gsmarena .(2019). A brief look at the history of Apple. Gsmarena. Retrieved from https://www.gsmarena.com/a_brief_look_at_the_history_of_apple-blog-13986.php

Hettiarachchi H. A. H. (2016). Apple supply chain strategy. University of Kelaniya. DOI:10.13140/RG.2.2.32075.49448

Kahney, L. (2019). How Apple's Operations department work (cookbook outtakes). Cult of Mac. Retrieved from https://www.cultofmac.com/616052/how-apple-operations-department-works/

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.

Lu, C. (2014). Apple supply chain: the best supply chain in the world. Tradegecko. Retrieved from https://www.tradegecko.com/blog/supply-chain-management/apple-the-best-supply-chain-in-the-world