Strategic Quality and Systems Management of Apple Inc.

STRATEGIC QUALITY AND SYSTEMS MANAGEMENT FOR APPLE INC

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 Strategic Quality and Systems Management of Apple Inc. 2

1.0. Operations Management in Apple Inc. Corporation

The term operations management refers to the business administration practices executed

with the objective of creating high levels of efficiency within an organization. The operations

management is concerned with the utilization of materials and labor in order to achieve high

quality products and services with the highest degree of efficiency to maximize the profit earned

by the organization (Chen & Ann 2016). It refers to the organizational function responsible for

the management of the processes involved in creating and availing products and services. In this

context, operations management team of an organization must demonstrate the capacity to plan,

organize, coordinate and control all resources needed by the organization in the production of

goods and services (Dolata 2017).

1.1. Importance of Effective Operational Management

Apple Inc. has enhanced a rise in the revolution in the computer industry with its

Macintosh PC model in 1980s. Since then, the company has continued to lead the industry by

developing computer products and services that meet the market demand. They have achieved

these through innovative and creative approaches in the manufacturing processes. The approach

is well integrated in the company’s culture, vision and mission (Dolata 2017). The management

of its business operations is driven by the established goal of being in the leading edge of

technology at any time. The ability of the company to maintain high levels in the production of

technology devices and services has resulted into the company winning several awards, thus

boosting its reputation in the market. Some of its profound products include OS X operating

system, iOS of iPhones and iPad, iLife and other applications (Annual Report 2016).

Through its operations management strategy, Apple has made extensive investment

online through its portable music and video stores, App store and other innovative and
 Strategic Quality and Systems Management of Apple Inc. 3

technology based products and services. The effective operations management at Apple Inc. is

also based on the organization’s ability to enhance a sustainable value for its products and

services, which essential in the highly competitive industry. The success of the company over the

years was made possible through efficient operational management. Consequently, it is worth to

assess the operational management strategy of the company. Through effective management, the

company has been able to surpass the expectations of its clients in various market segments

(Chen & Ann 2016).

Apple Inc. operates in luxury market where products and services are offered at high

prices. In this case, customers pay premium prices expecting higher values for their money.

Among its competitors in the premium market, Apple has proved beyond any doubt that its

products deserve the premium stature in the market. The operational management of the

company is keen on ensuring they have skilled and experience engineers as well as excellent raw

materials and other resources in the manufacturing sector to develop high-end products that

conform to the current technology demands (Dolata 2017). The approach in its operations

management has attracted high profile customers, especially in its iPhone and iPad marketplaces.

The constant and exceptional customer experiences with the Apple products and services have

created a greater brand recognition and brand identity among existing and potential customers.

As a result, the company has been realizing consistently high sales of its products and services

(Annual Report 2016).

1.2. Success Evaluation of the Existing Operations Management

Primarily, Apple’s operations management has led to its business success across the

world. One of the success strategies the company has been using in its operations management is

the product and service diversity in the technology sector. While most of its products such as
 Strategic Quality and Systems Management of Apple Inc. 4

iPhone, iPad and mac computers are sold to customers across the world through its dealers and

retail outlets, the company has also made a significant diversification to expand its online

business operations (Chen & Ann 2016). When evaluating the company’s success with its

operational management strategies, it is important to note that the company operates in various

countries with different external factors that would affect its business operations. Therefore, the

success of Apple’s operations management is based on how effective it has been dealing with

these factors (Dolata 2017).

In terms of political factors, Apple’s operations management team understands the

importance of adhering to the legal requires in other jurisdictions. It is the first step the company

has been taking to ensure that its business is not compromised because more than 65 percent of

the Apple’s sales are done outside the United States. Adhering to the foreign legal frameworks

regarding business operation in the technology industry ensures its smooth running of business.

For instance, the business legislations in China are different from those in the United States

where the company’s headquarters is located. The company has relocated its manufacturing plant

to China because of cheap labor and raw materials. Its manufacturing operations in China have

been successful because its operations management strategies recognize and adhere to the local

business regulations. The company also has manufacturing subsidiaries operating in other

countries such as Czech Republic, Korea and the UK among others (Chen & Ann 2016).

In terms of economic factors, the company’s operational strategy focuses on the

economic growth in different parts of the world. It then capitalizes on the economic growth to

increase its production and sales by expanding the market share. The Asian economic growth,

and especially the Chinese economy is inevitable (Dolata 2017). As stated earlier, Apple creates

computers, tables and smartphones offered at premium prices with the affluent as their main
 Strategic Quality and Systems Management of Apple Inc. 5

target markets. The Asian economic growth has resulted into emergence of new premium market

for technology products. These include individuals and business organizations. One of the

reasons why Apple Inc. transferred its manufacturing operations in China was to capture this new

premium market. The company has been capitalizing on its brand recognition and brand loyalty

across the world to grow its market in China and other parts of Asia (Annual Report 2016).

In terms of social factors, lifestyle is significantly related to the sales of premium

products and services. Many eastern countries have been adopting the Western lifestyles over the

past few decades, especially the youthful generation due to rapid urbanization. Smartphones and

tablets have been playing an important role in promoting the Western lifestyle (Peppard & Ward

2016). The company has been producing exceptionally innovative smartphones with latest

features for business, entertainment and recreational purposes with the objective of attracting the

youthful customers into buying their products. Since they sell these products at premium prices,

the target clients treat Apple products as luxury products, which in itself promote the high

lifestyle. To achieve this, the operations management team at the company ensures that they

always keep pace with the changing technology in their production processes (Chen & Ann

2016).

In terms of technology fact, Apple Inc. is undisputedly the tech giant in the industry

because of the exceptional milestones it has made in the continuous innovative product and

service development. The company’s operational strategy is based advancement in technology,

especially with its iPhone series and iPad as well as the online stores where it also serves clients

from across the world. The only way to survive in the industry is by keeping pace with the rapid

changes in technology (Annual Report 2016). The Apple’s operations management has

developed greater prospects in terms of technology to ensure that their products remain
 Strategic Quality and Systems Management of Apple Inc. 6

technologically relevant for a long time. For instance, the features of Apple’s iPad and iPhone

have remained technologically relevant for two years despite the rapid changes in technology.

That exhibits the ability of the company’s operations management team to project the future

technology and implement in its current products and services (Peppard & Ward 2016).

The success of Apple Inc. is based on the manner in which it deals with the

environmental and ecological issues. It is a common knowledge that industrial disposal of

chemicals and other forms of wastes are the main causes of environmental degradation. Many

companies have reduced their reputation in the market due to the reckless handling of waste

products and environmental degradation efforts. Apple has been consistently increasing the use

of renewable and clean solar energy in its business operations. Currently, more than 95% of

Apple’s business operations are done using renewable energy to ensure they reduce their carbon

footprint as much as possible (Chen & Ann 2016).

2.0. Quality Management

Quality management refers to the oversight role in all activities and tasks that are taken in

order to maintain the necessary level of excellence. It includes the approach taken by the

management team to determine the quality policy, creation and implementation of quality

planning and assurance as well as the quality control and improvement. The quality management

ensures that all activities and tasks undertaken to design, plan and implement the creations of

products and services occur effectively and efficiently concerning the established technology and

performance.

2.1. Importance of Effective Quality Management

Quality management is based on the control of manufacturing processes to create high

quality products and services. It enhances a business context with the ability to facilitate effective
 Strategic Quality and Systems Management of Apple Inc. 7

production processes with the main objective of meeting customer needs. The concept of

customer satisfaction plays a significant role in quality control and management (Peppard &

Ward 2016). It is the aspect of a business, which should receive due considering because the

growth and progress of the business depends on it. Quality management involves three aspects,

which include the management, control and improvement of quality. These three aspects must be

met during the production processes to ensure the created value on the products and services

surpass the customer expectations (Wheelen & Hunger 2017).

The quality management is an oversight role in ensuring effective control and

improvement. The quality control refers to the continuous efforts aimed at maintaining the

integrity of the processes. That would be effective in enhancing the reliable achievement of set

objectives. On the other hand, quality improvement refers to the objective changes in processes

and operations aimed at improving the reliability in achieving specific outcomes. The quality

management also includes the aspect of assurance, which plays a significant role in defining and

executing planned and systematic actions needed to develop confidence among potential and

existing customers of the product and services (Chen & Ann 2016).

2.2. Evaluating Apple’s Quality Management Success

The success of Apple’s quality management is based on the International Standards

Organization (ISO) certification of the company. The company has three ISO certifications,

which include ISO 14001:1996, ISO 14001:2005 and ISO 9001:2008 Certification. The ISO

certification is a clear prove that all business operations within Apple Inc. have met the

international standards, hence their products and services (Annual Report 2016). The effective

quality management, Apple Inc. has consistently succeeded in enhancing customer satisfaction,
 Strategic Quality and Systems Management of Apple Inc. 8

increasing market share, improving performance, saving on costs, achieving environmental

benefits and encouraging innovation.

The ISO Certifications the company has received is a clear depiction that it has always

strived to maintain high standards in its operations, especially in the inventory management,

production and distribution of finished products and services. The ISO 9001:2008 was awarded

for the quality management system for its international operations. The certification enabled

Apple Inc. (Annual Report 2016). to demonstrate to the world its commitment in quality and

customer satisfactions. It also enabled the firm to affirm its objective of engaging in the

continuous improvement of its operations. This ISO certification is in line with the company’s

strategy keeping pace with the rapid changes in technology.

All manufacturing plants Apple has across the world are ISO 14001 certified. These

Certifications portrays that the company is committed to adhere to the international standard

requirements for the manufacturing. In its manufacturing plants, the company has a structured

environmental management system (EMS), which is aimed at reducing its carbon footprint,

considering that it is the world’s largest company in the technology sector (Wheelen & Hunger

2017). It is part of Apple’s quality management approaches for managing the environmental

impact of its operations. In this context, the company has made significant changes in the course

of its operations from the early 1990s. For instance, the company launched its environmental

policy in 1990 and it got rid of the CFCs in 1992. In 1994, the company began the phase-out of

nickel-cadmium batteries and terminated PVC packaging materials in 1995 leading to its ISO

14001:1996 Certification (Annual Report 2016).

The commitment of the company towards quality development of product and services

earned it the ISO 27001:2005. This was an international recognition standard, which certified
 Strategic Quality and Systems Management of Apple Inc. 9

Apple’s efforts on design and utility of secure cloud data. Being an innovative corporation, the

company had just enjoined itself in the development of cloud computing technology (Annual

Report 2016). This certification defines the success of Apple in creating a systematic approach to

the management information security risks. The excellent information management provides the

firm with the freedom of growing, innovating, and widening of the customer base (Wheelen &

Hunger 2017).

3.0. Planning a Strategic Quality Change

The planning of Apple’s strategic quality change is based on its vision statement. Even

though the statement is long but lays out the strategic quality approach to keep pace with the

technology today and in the future and the company aims to remain at the top. The company

believes in making great products with standards that surpass the challenges brought about by the

rapid technology changes. In this context, the company is constantly focusing of innovation. That

is depicted on its iPhone series with the latest iPhone 7 to be released in September 2017

(Annual Report 2016). The company’s approach on quality is based on simple innovative

products rather than complex and difficult-to-use products and services.

The success of Apple was built on the foundation of well-established skilled and

experienced human resources, especially engineers at the design and production sector. These

human resources have been at the forefront in developing the best, highly efficient and easy-to-

use products such as iPhone, iPad, and Mac computers. In terms of implications, Apple Inc.

(Annual Report 2016). gained a great deal in its strategic effort of being unique and strives to

create different through innovation. This strategic quality changed was brought by Steve Jobs

return to the company upon which he set the high standards in the company. The company does

not settle for anything less than excellence in all its sectors. Consequently, it has been
 Strategic Quality and Systems Management of Apple Inc. 10

accumulatively developing excellent products over the years. The concept of excellence is

transferred to its use of efficient energy in more than 95% of its office operations, manufacturing

of the best products and services (Chen & Ann 2016).

4.0. Implementing Strategic Quality Change.

4.1. The Outcome of Strategic Quality Change

Apple Inc. implemented quality change through innovative and creative technological

development that cuts across its diverse product development and business operations.

Consequently, the company has achieved tremendous success with its strategic quality change in

its major markets across the world. Through its strategic quality change, the organization has

been improving it smartphone the first generation iPhone in 2007, 3G iPhone in 2008, 3GS in

2009, iPhone 4 in 2010, iPhone 4S in 2011 and iPhone 5 in 2012 (Chen & Ann 2016). All earlier

smartphone models were released yearly to keep pace with the rapid and dynamic changes in the

technology realm.

Each one of these iPhone models was a technological hit in the market once released to

the market. Because of their efficiency, ease of use and high technology level, they sold

immensely at the premium markets. The Apple’s iTunes was a unique platform Apple launched

in 2001 as part of its approaches on the quality strategic change where it availed music of varied

genres on the internet for customers across the world. Its success was boosted by the release of

iPod, a portable music player in 2003. These were followed by the iOS in 2007, App Store in

2008 and iCloud platform in 2011 as well as iWatch among others (Annual Report 2016). The

strategic quality change by the company has enhanced its current vast presence in computing and

technology sector, making it the best in the industry

4.2. Recommended Improvements on Strategic Quality Change

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Even though Apple has managed to create quality change in its product development and

distribution, it has done too much customization. That has made its hardware and software

products compatible with other products from competitors (Chen & Ann 2016). Although this is

good for achieving uniqueness, the company should create compatible high quality products in

order to allow diverse consumer experiences. The company should create products and services

that share components and functionality features with other products as a way of opening up to

challenges that need quality improvement (Wheelen & Hunger 2017).

5.0. Evaluating Apple’s Strategic Quality Outcome

The strategic change at Apple has enhanced various outcomes. First, they have developed

products and services that are easy to use. Apple products, ranging from iPhone, iPad to iWatch

are intuitive and easy to understand. They have kept things simple by creating one model series

in every product line, such as iPad, iPhone, iWatch and iOS (Annual Report 2016). This implies

that their technical assistants understand every facet of their products. Therefore, they are able to

give clients good customer services, thus improving brand loyalty and recognition (Annual

Report 2016). Because it is a technology savvy, Apple always stays ahead of its competitors by at

least two years. This has always kept the company at the top in computing and technology

industry.

References

Annual Report, 2016. Apple Inc. Annual Report 2016. California, CA: Apple Inc. Publishing

Department
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Chen, C.M. and Ann, B.Y., 2016. Efficiencies vs. importance-performance analysis for the

leading smartphone brands of Apple, Samsung and HTC. Total Quality Management &

Business Excellence, 27(3-4), pp.227-249.

Dolata, U., 2017. Apple, Amazon, Google, Facebook, Microsoft: Market concentration-

competition-innovation strategies (No. 2017-01). Stuttgarter Beiträge zur Organisations-

und Innovationsforschung, SOI Discussion Paper.

Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a

digital strategy. John Wiley & Sons.

Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. Pearson.