THUONGMAI UNIVERSITY

FACULTY OF ECONOMIC INFORMATION SYSTEM

AND E-COMMERCE
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GROUP DISCUSSION
English for Specific Purposes 1

Topic: Company’s history, operation and structure

Group: 02
Class code section: 23100ENTI1011
Teacher: Vu Thi Thu Trang
 List of group members
No. Name Position Mission Mark

7 Hoàng Thị Minh Giang Member History

Swot analysis &

8 Nguyễn Thị Hà Member
conclusion

9 Đỗ Thị Mỹ Hảo Leader Operations Management

10 Nguyễn Thị Hiên Member History

11 Bùi Thị Hồng Hoa Member Operations Management

12 Nguyễn Ngọc Huy Member Introduction

13 Nguyễn Thị Mỹ Huyền Member Structure

Table of Content
s
I, Introduction.............................................................................................................. 1
1. An introduction......................................................................................................1
2. Vision and mission.................................................................................................2
2.1. Vision..............................................................................................................2
2.2. Mission...........................................................................................................3
3. Logo and name......................................................................................................3
3.1. Name............................................................................................................... 3
3.2. Logo................................................................................................................ 4
4. Products and services...........................................................................................10
4.1. Products.........................................................................................................10
4.2. Services.........................................................................................................11
II, History of Apple Inc.............................................................................................11
III, Structure..............................................................................................................15
1. Apple Inc.’s Corporate Structure.........................................................................15
2. Apple Inc.’s Corporate Structure – Advantages and Disadvantages....................16
2.1. Advantages...................................................................................................16
2.2. Disadvantages...............................................................................................16
IV, Operations management at Apple Inc...............................................................16
1.Marketing strategy................................................................................................17
2.Supply Chain Management...................................................................................20
3.Inventory Management.........................................................................................21
V, Apple Inc. SWOT analysis...................................................................................23
1. Apple’s Strengths:................................................................................................23
2. Apple’s Weaknesses............................................................................................23
3. Apple’s Opportunities:.........................................................................................24
4. Apple’s Threats:...................................................................................................25
VI, Conclusion............................................................................................................26
I, Introduction

1.  An introduction

Apple Inc. is an American multinational technology company headquartered in

Cupertino, California, United States. Apple is the largest technology company by
revenue (totaling US$365.8 billion in 2021) and, as of June 2022, is the world's
biggest company by market capitalization, the fourth-largest personal computer vendor
by unit sales and second-largest mobile phone manufacturer. It is one of the Big Five
American information technology companies, alongside Alphabet (Google), Amazon,
Meta (Facebook), and Microsoft.

Apple was founded as Apple Computer Company on April 1, 1976, by Steve Wozniak,
Steve Jobs and Ronald Wayne to develop and sell Wozniak's Apple I personal
computer. It was incorporated by Jobs and Wozniak as Apple Computer, Inc. in 1977
and the company's next computer, the Apple II, became a best seller and one of the
first mass-produced microcomputers. Apple went public in 1980 to instant financial
success. The company developed computers featuring innovative graphical user
interfaces, including the 1984 original Macintosh, announced that year in a critically
acclaimed advertisement. By 1985, the high cost of its products and power struggles
between executives caused problems. Wozniak stepped back from Apple amicably and
pursued other ventures, while Jobs resigned bitterly and founded NeXT, taking some
Apple employees with him.

As the market for personal computers expanded and evolved throughout the 1990s,
Apple lost considerable market share to the lower-priced duopoly of the Microsoft
Windows operating system on Intel-powered PC clones (also known as "Wintel"). In
1997, weeks away from bankruptcy, the company bought NeXT to resolve Apple's
unsuccessful operating system strategy and entice Jobs back to the company. Over the
next decade, Jobs guided Apple back to profitability through a number of tactics
including introducing the iMac, iPod, iPhone and iPad to critical acclaim, launching
"Think different" and other memorable advertising campaigns, opening the Apple
Store retail chain, and acquiring numerous companies to broaden the company's
product portfolio. When Jobs resigned in 2011 for health reasons, and died two months
later, he was succeeded as CEO by Tim Cook.
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Apple became the first publicly traded U.S. company to be valued at over $1 trillion in
August 2018, then $2 trillion in August 2020, and $3 trillion in January 2022. As of
January 2023, it was valued at around $2.2 trillion. The company receives criticism
regarding the labor practices of its contractors, its environmental practices, and its
business ethics, including anti-competitive practices and materials sourcing.
Nevertheless, the company has a large following and enjoys a high level of brand
loyalty. It is ranked as one of the world's most valuable brands.

2. Vision and mission

2.1. Vision
Apple’s mission statement is:
“To bringing the best user experience to customers through innovative hardware,
software, and services.”
This mission statement highlights Apple’s commitment to offering the best products
and services to meet each of its customer’s unique needs. It guides the company
towards its long-term goals, which has contributed to its success. Apple’s mission
statement consists of three core components:
Best User Experience. Whether it is iPhone, iPad, or wearable, Apple designs all its
products to be user-friendly. The company does not compromise when it comes to user
experience. Apple’s products come with innovative and user-friendly features,
delivering the best experience for the end-user. In 2020, Apple introduced robust
location and Bluetooth permissions in iOS 13. In 2021, it unveiled an opt-in ad-
tracking feature for iOS 14. These user-friendly privacy features can help protect the
personal data of iPhone users and improve their experiences.
Innovative Products. Apple designs products that address the unique needs of its
customers. Since its founding, Apple has pushed the standard in product design,
usability, and functionality. Apple’s hardware and software solutions cater to various
market segments, including education, business, and healthcare. In the past few years,
Apple has increased its healthcare presence with innovative products like Apple Watch
for detecting heart irregularities. Its Apple Health Records feature for iPhone allows
patients to access their medical data via their mobile devices. In Q1 2020, Apple
reported $91.8 billion in quarterly revenues with record-high earnings from its
healthcare products and services.
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Quality Service Delivery. From its App Store, Apple Care, and tech support, Apple is
obsessed with customer service. It oversees everything, from design to development,
sales, and repairs. This hands-on approach gives Apple an edge over its competitors. A
2020 investigative research awarded Apple 51/60 for online support and 34/40 for
phone support with an overall tech support score of 85/100. This score is impressive
given that most companies offer poor customer service.
2.2. Mission
Apple’s vision statement is:
“To make the best products on earth and to leave the world better than we found it.”
Apple’s vision statement guides the company’s decision-making processes, strategic
management, and operations. It ensures each decision takes the company closer to
realizing its mission and goals. The statement consists of two components:
Leadership in Product Design: From iPhones, iPads, iPods, Macs, microchips, and
more, Apple delivers high-quality products to the market. The company seeks to
protect its leadership in product design and development by pushing for novel
innovations. In April 2021, Apple introduced the new iPad Pro with an industry-
leading M1 chip and ultra-fast 5G. Apple-designed M1 chips push the limits of iPad
Pro’s performance, making it the fastest device of its kind. The new iPad Pro is 5G-
enabled and can reach speeds up to 4Gbps. 5G is the future. So, Apple can rely on this
next-gen iPad to protect its global leadership position for many years to come.
Carbon Neutral: Apple’s vision is to attain zero net climate impact across all its
operations. In 2020, the company unveiled a plan highlighting its commitment to
ensuring all Apple devices are carbon neutral by 2030. According to Apple’s 2020
Environmental Progress Report, the company plans to reduce emissions by 75% and
develop innovative carbon removal solutions for the remaining 25% of its footprint by
2030. “With our commitment to carbon neutrality, we hope to be a ripple in the pond
that creates a much larger change,” said Tim Cook, Apple’s CEO.
3. Logo and name
3.1. Name

There are many theories regarding Apple’s brand name and its origins. Some of these
theories include:
 The brand name was inspired by Eve’s bite out of the apple.

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  The story of Nymphus gaining immortality by eating a golden apple.
 Alan Turing, the father of modern computing, died after eating a poisoned
apple.
 From the famous saying: “an apple a day keeps the doctor away.”
 Some claim that the three founders wanted a more casual name.
 Steve Jobs and Steve Wozniak wanted the Apple brand name to appear before
Atari in phone books.
But in reality, Steve Jobs named the company Apple because he liked the fruit. Steve
Jobs followed a fruitarian diet and suggested the name Apple to Wozniak after Jobs
visited an apple orchard.
3.2. Logo
3.2.1. Apple Logo Evolution
 1976

Despite representing the name Apple, the company’s first logo did not show or
describe the physical shape of an apple.
Ronald Wayne, one of Apple’s co-founders, created the first logo. He wanted the
company’s symbol to represent the law of gravity, inspired by the falling apple.
Its first symbol incorporated the photo of Isaac Newton, who revolutionized science by
discovering gravity. Do you still remember your science lessons on how he found out
about gravity?
As textbooks say, an apple fell on Sir Issac Newton’s head! This life-changing event
became Apple’s first logo design, with Newton sitting under an Apple tree.
The illustration was in black and white with the words Apple Computer Co. As clever
as this idea may be, it wasn’t appealing to the audience and was later changed.
 1977
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Despite representing the name Apple, the company’s first logo did not show or
describe the physical shape of an apple.
Ronald Wayne, one of Apple’s co-founders, created the first logo. He wanted the
company’s symbol to represent the law of gravity, inspired by the falling apple.
Its first symbol incorporated the photo of Isaac Newton, who revolutionized science by
discovering gravity. Do you still remember your science lessons on how he found out
about gravity?
As textbooks say, an apple fell on Sir Issac Newton’s head! This life-changing event
became Apple’s first logo design, with Newton sitting under an Apple tree.
The illustration was in black and white with the words Apple Computer Co. As clever
as this idea may be, it wasn’t appealing to the audience and was later changed.
 1998

Forced out of the company in 1986, Steve Jobs left due to conflict with company
executives. But he later returned in 1997 since the company was going to declare
bankruptcy.

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Job’s biggest challenge was revamping the company, starting with its logo. He
removed the rainbow effect and used a translucent sky blue color to fit the first iMac.
However, he immediately changed it into a solid black in 1998 to complement their
silver computer models and to establish Apple as a luxury brand.
 2001-2007

Forced out of the company in 1986, Steve Jobs left due to conflict with company
executives. But he later returned in 1997 since the company was going to declare
bankruptcy.
Job’s biggest challenge was revamping the company, starting with its logo. He
removed the rainbow effect and used a translucent sky blue color to fit the first iMac.
However, he immediately changed it into a solid black in 1998 to complement their
silver computer models and to establish Apple as a luxury brand.
 2007-2015

Apple shifted its focus toward renewable, energy-efficient building construction. The
company decided it was about time to give the brand a new look that would better
reflect its branding towards renewability.

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The company used the chrome version until 20015, and up until now, it’s still instilled
in Apple fans that this version is one of the most sophisticated logo designs.
 2015-Present

As the years go by, minimalistic logos using a flat design have been a worldwide
trend. To keep up with the latest trends, it’s no wonder Apple changed its glassy,
metallic chrome look to a flat design.
Today, Apple uses a minimal logo in three colors: white, silver, and black, depending
on the medium it’s placed.
According to color psychology, black exudes power and prestige to give the brand a
touch of sophistication. White reflects simplicity, minimalism, and purity, which is the
perfect way to showcase Apple’s design.
Meanwhile, metallic colors like silver express prosperity and wealth, giving the logo a
simple yet luxurious vibe.
3.2.2. Other Apple Logos

If you’re a massive fan of Apple, you already know that this company is more than
just its top-quality devices. In addition to its products, it elevated its branding by
offering services to its fans, such as Apple Music, Apple Watch, Apple pay, Apple
TV, and many more.

The company uses different colors for these products. Join us as we take a peek at
Apple’s other product logos.

 Apple Music Logo

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We all love listening to music; it helps us relax and process emotions. Apple
introduced a treat to its customers by introducing Apple Music in 2015, a media
streaming service that delivers high-quality sound.
The Apple Music logo consists of the apple, and the word Music is in San Francisco
Compact typeface design on the right side. But the app has a beamed eighth note in
white with a pink background.

The app's color exudes fun and has an eye-catching color palette that is identified
quickly among the many applications on a user’s phone.
 Apple Tv Logo

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The Apple tv logo is another example of minimalistic design, where the designers
utilized a monochrome design. With the black background, the word “Tv+” next to
the apple logo is in bold San Francisco Compact font with clean lines and symmetry.
Also, notice that glow to the plus sign; it’s a great way to show the wonder and content
a viewer would see in the database. Or the television when coming to life upon
pressing that ON button. You decide the meaning.
 Apple Pay Logo

With the introduction of online payments and electronic wallet service, Apple
introduced its own Apple Pay system in 2014. This method allows clients to make
payments through their iPhone application or web facilities without holding real cash.

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The Apple Pay logo is in saturated black and white colors and exists in three versions:
black apple image and the Pay is in wordmark design in pale blue and white
background.
4. Products and services
4.1. Products

Name Details

Macintosh Personal computers are designed, manufactured by Apple.

iPod Portable media players manfactured by Apple.

iPhone Smartphones are designed and manufactured by

Apple.

iPad Tablet computer designed and manufactured by

Apple.

Apple Watch Smartwatch designed and manufactured by Apple.

Apple TV A micro-console designed and manufactured by

Apple.

HomePod Smart Speakers designed and manufactured by

Apple.

macOS Graphical operating systems developed and marketed

by Apple.

iOS Mobile operating system created and developed by

Apple.

watchOS Mobile operating system created and developed by

Apple. (For Apple smartwatches)

tvOS Operating system created and designed for Apple TV

iLife Software suite for macOS and iOS developed by

Apple.

iWork Office suite of applications created by Apple for its

macOS and iOS operating systems.
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 Final Cut Pro Video editing software progams.

Logic Pro Digital audio workstation and MIDI sequencer

software application for the macOS.

Garageband Digital audio workstations for macOS and iOS,

which let users create music or podcasts.

4.2. Services

Name Details

Apple Pay A payment and digital wallet service that allows

users to make payments in person, in iOS apps, and
on the web.

Apple Store Multi stores owned by Apple that sell Apple

products to the public.

iTunes Store An online digital media store operated by Apple.

App Store (iOS) A digital distributuon platform, which was developed

and maintened by Apple.

Mac App Store A distribution platform specifically for the macOS

apps, created by Apple.

iBooks Store An ebook application for its iOs and macOS

operating systems and devices.

iCloud Coud storage and cloud computing service by Apple.

Apple Mucsic A streaming service developed and managed by

Apple.

II, History of Apple Inc

 1976 – 1984: Establishment of the company

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Apple Computer Company was founded on April 1, 1976, in Los Altos, California.
The company's founders were Steve Jobs, Steve Wozniak, and Ronald Wayne.
However, Ronald Wayne decided to leave the company only a couple of weeks after it
was founded. Wayne then took a cheque of $800 which would have been worth almost
$72 billion 40 years later. 
Apple Computer's first official workplace was Steve Jobs' parents' garage. 
Apple Inc's first product was the first-generation Apple computer, which consisted of a
motherboard with CPU, RAM, and basic textual-video chips. Users must buy with a
case with a keyboard, a separate screen depending on their needs. The price for this
computer is… $666.66. 
One thing not everyone knows, Steve Wozniak was the "father" of all designs of Apple
computers before leaving the company. Steve Jobs, on the other hand, was responsible
for managing essential business issues, persuading investors to keep an eye on Apple.
In the end, millionaire Mike Markkula was the first to realize Apple's potential and
invested $250,000 in supporting Apple during its infancy. Markkula owned one-third
of Apple's stock at the time. It was also Markkula who put Apple into operation when
he made Michael Scott the first chairman and CEO of Apple Inc. in 1977, citing that
both Steves were too young to be CEO at the time.
1977 also saw the introduction of the second-generation Apple Computer, a personal
computer that was predicted to "take over the world" at the time. Not long after, that
prediction quickly became a reality.
It wasn't until 1978 that Apple had its own office, staff, and production lines for the
second generation of Apple computers.
In 1980, Apple launched the Apple III computer specifically for business customers, as
a direct response to the rapid rise of rivals IBM and Microsoft. The Apple III,
however, was unlikely to satisfy an ambitious Steve Jobs. At this point, another
direction appeared in his mind, with the advent of the Lisa computer. 
After being "enlightened" by Xerox PARC, Steve Jobs decided to make a "great
revolution" for Apple products, with the appearance of GUI - user interaction
interface, similar to what is appearing on the current generation of computers. The
result was the Lisa computer in 1983. Unfortunately, Lisa's sales were disastrously
low, largely due to the high price at the time while not optimizing the supporting
software. 

 1984–1991: Success with the Macintosh

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Steve Jobs initiated a second major project with the introduction of the Apple
Macintosh computer, which marked a turning point for Apple when it was recognized
as the most user-friendly computer. In addition, the Macintosh was also favored by
graphic design experts because of the breakthrough in display, even though the
computer screen at that time was still only black and white and the price was very
high.
During the promotion of the Macintosh in 1983, John Sculley became Apple's new
CEO. Before that, Sculley is Pepsi's youngest CEO. However, Steve Jobs managed to
convince Sculley to go back to Apple with a now legendary quote: “Are you going to
sell soft drinks for life or will you and I change the world?” 
In 1984, Apple released a one-minute TV commercial that helped make Apple a
"household name." The commercial, titled “1984,” was directed by Ridley Scott and
cost the company $1.5 million. The video was only aired once, during Super Bowl
XVIII in 1984. 
This also marked the moment when the rivalry between Steve Jobs and Bill Gates
reached its peak. Initially, Microsoft was offered to write software for Apple's
Macintosh computers. But this plan fell apart in 1983 when Microsoft revealed that it
was working on its own user interface called Windows. 
At that time, despite having very high sales, the Apple Macintosh was not enough to
beat the "pioneer" IBM. This led to a breakdown in the relationship between Steve
Jobs, who led the Macintosh team with a unique mindset, and Sculley, who had a
pragmatic, conservative business vision. Conflicts between the two have intensified
since the failure of the Lisa computer and the unexpected sales of the Macintosh.

 Apple without Steve Jobs

In 1985, as friction grew between Jobs anhe Apple’s board took Sculley’s side and
removed Jobs from his managerial dutid Sculley, Jobs attempted to oust Sculley by
staging a coup which then backfired. Tes. Jobs then quit his job and founded a new
company making advanced workstations name NeXT. Steve Wozniak too left around
the same time selling most of his shares saying the company was going in the wrong
direction.
With the highly unsuccessful line of products and the costly decision to move to
PowerPC, the Apple board had had enough. In 1993 Sculley was fired and replaced by
Michael Spindler as the new CEO, a German expatriate who had been with Apple
since the 1980s.

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Spindler, unfortunately, had to follow through Sculley’s PowerPC mistake. The first
PowerPC run by Macintosh was released in 1994 but Apple’s misfortune continued.
One reason was because of the popularity of Windows in the market then.
In 1996, Spindler was replaced by Gil Amelio as CEO. Amelio made several changes
such as including extensive layoffs and cut costs. His tenure was also troubled as the
Apple stock hit a 12-year low. Amelio then decided to purchase Jobs’ NeXT Computer
for $429 million in February of 1997 and brought back Steve Jobs to Apple.

 2007–2011: Success with mobile devices

The iPhone was announced at the Macworld Expo on January 9, 2007. Jobs also
announced that Apple Computer, Inc would thereafter be called Apple Inc. as the
company had widened its emphasis to consumer electronics as well. 270,000 iPhones
were sold during the first 30 hours of its sales and it came out to be known as a “game-
changer for the industry”. Widespread success was achieved with the introduction of
iPhone, iPod Touch, and iPad products.
The App Store was launched by Apple in July 2008 to sell third-party applications for
the iPhone and iPod-Touch. Within a month, 60 million applications were sold through
the App store and it was able to register an average daily revenue of $1 million. Apple
also became the third-largest mobile handset supplier in the world thanks to the
popularity of the iPhone.
Apple shares hit a staggering $300 in October 201
Steve Jobs resigned from his position as CEO due to health factors on August 24,
2011, and was replaced by Tim Cook. Jobs passed away on October 5, 2011, which
marked the end of an incredible era for Apple and brought a big diversion in Apple’s
history.
However, Apple still continues to influence the markets with ground-breaking
technological wonders to date.

 2011-present: The post-Jobs era, Tim Cook leadership

Tim Cook took over as CEO from Steve Jobs on August 24, 2011, less than two
months after the Apple founder's death. Since that time, Apple's market capitalization
has increased by about 600%, to nearly $2.5 trillion, and its annual revenue has more
than doubled.
Steve Jobs was known for his ability to create groundbreaking devices that helped
reshape users' technology experiences. Meanwhile, Tim Cook is considered the one

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who helped Apple expand the ecosystem, and develop a series of services around its
hardware devices.
Under Cook, Apple went from being a high-end device maker to a diversified
company with businesses ranging from payment services to film and television.
He also oversaw Apple's acquisition of more than 100 companies, including
acquisitions like Beats for $3 billion in 2014 and Intel's smartphone modem business
for $1 billion in 2019.
In addition to the success achieved, the CEO of Apple has also received many
criticisms, such as the case that the company was sued for silently reducing the
performance of older iPhones or allegations related to poor labor conditions at its
suppliers.
In addition, Tim Cook also faces a series of other threats that may affect Apple's
business such as the impact of the US-China trade war or the most recent outbreak of
the Covid-19 pandemic.
According to CNN, what Tim Cook has not done is launch a breakthrough and
successful product like the iPhone.
However, he found a way for Apple to continue growing without it. 
III, Structure
1. Apple Inc.’s Corporate Structure
Apple's organizational structure is clearly different between before and after Steve
Jobs became CEO of the company in 1997.
1.1. Before Steve Jobs returned to the company
Before Steve Jobs returned to the company, Apple was organized in a conventional
structure (decentralized structure), like other companies of the same size and scope of
operations. The company is divided into several different business units (BUs), each
with its own profit and loss responsibility (P&L), and managed by general managers
(GMs).
Therefore, the General Director (GM) - the head of each unit, tends to compete with
each other, especially in product pricing, to gain more profit for his division.
1.2. When Steve Jobs returned to Apple and took over as CEO (1997-2011)
When he returned to Apple and took over as CEO in 1997, Steve Jobs fired the entire
GM, and restructured Apple with a functional organization model. He established a

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single P&L goal for the entire business, and consolidated functional divisions into a
unified organization.
This model does not have a GM who controls the entire process from product
development to sales and product evaluation based on its own P&L. Here, the CEO
will collectively manage the departments in the business. The senior Vice Presidents
(VP) are in charge of each department by function, not by product.
1.3. From 2011-present
From 2011 to present, Tim Cook replaced Steve Jobs as CEO of Apple and continues
to maintain Apple's organizational structure according to the "functional organizational
structure".
What's new here is that Apple's Vice Presidents (VPs) now have more power and can
make decisions more autonomously (this was heavily restricted under Steve Jobs).
As a result, the company's organizational structure is now less rigid, but still has a
wheel-shaped hierarchy with Tim Cook at the heart. The upper tier (innermost tier) of
the corporate structure has a function-based analytical team, which is rooted in the
function of the organizational structure. The senior vice president (SVP) reports to
Tim Cook, handling business functions .
Tim Cook continues to put the entire corporation under a common P&L. Apart from
CEO Tim Cook, Apple operates without the GM (Joint Chief Executive Officer) of
each BU. Tim Cook maintains human resource management in a centralized structure:
CEO Tim Cook occupies a central position on the organizational chart, the only
intersection between research and development, design and engineering departments ,
operations , marketing and retailing , ... of any major Apple product . Under the CEO,
in each functional division there are Senior Vice Presidents and Vice Presidents.
Under Tim Cook, Apple was divided into more functional divisions with more detailed
areas of specialization. In each function, the employees are experts with expertise in
the area of the function that they are sure to receive. The head of each department
functions as the best expert and has the ability to lead other experts in that department.
Apple's functional divisions under Tim Cook include: Design, Hardware Engineering,
Hardware Technology, Software, Service, Marketing, Operations, Sales, Retail,
Human Resources, Finance, Legal, Corporate Communication,…
2. Apple Inc.’s Corporate Structure – Advantages and Disadvantages
2.1. Advantages

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The advantages of Apple's hierarchical organizational structure include the close
scrutiny of senior management over all aspects of the business. Furthermore,
decentralization helps to clearly separate levels of authority and responsibility, as well
as promotion for opportunities for good employees. The company, from top to bottom,
has a clear chain structure, each department is in charge of a specialist, each employee
is responsible for only one superior, there is absolutely no phenomenon of many
leaders. Everyone in the company understands their specific responsibilities very well,
and knows who to report to. Likewise, every leader knows his team like the back of his
hand.
2.2. Disadvantages
Apple's hierarchical organizational structure can make its business less flexible and
less responsive to changes in the global market. Furthermore, in hierarchical
organizations, communication between different departments tends to be less efficient
than in flat organizations.
IV, Operations management at Apple Inc.
Operations Management is the steering wheel of any organization’s success. Apple
Inc.’s operations management (OM) involves the application of the 10 decisions of
OM to ensure that all aspects of the business are running smoothly. In Apple’s case,
the 10 decisions of operations management are carefully implemented through
coordinated efforts in product design and development, sales and marketing, and the
firm’s supply chain, along with the company’s other business areas. With considerable
leadership in the computer technology and digital content distribution industries,
Apple Inc. is an example of success in addressing the 10 decision areas of operations
management. Operational effectiveness and strategies involving technological
innovation help the business thrive, in spite of competition involving Dell, Lenovo,
Microsoft, Sony, Google, Amazon, Samsung, Walmart, and other companies. This
success highlights the importance of Apple’s strategic approaches to achieve high
productivity goals and objectives in operations management areas.
Apple Inc. has a dedicated team of senior managers, each of which handles the
implementation of measures to address the 10 decisions of operations management.
The company has excellent performance in maximizing efficiency in operations
management. This operational efficiency translates to competitive advantages and
capabilities that fulfill strategic objectives, ultimately leading to the achievement of
Apple’s corporate mission and vision statements.

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The areas of interest in my essay will include marketing strategy, supply chain
management and inventory management.
1.Marketing strategy
Apple is known to be one of the greatest marketers of all time because they understand
that marketing is one of the most crucial aspects of a business venture which greatly
determines its success in the consumer’s realm. Apple’s marketing is so effective, that
it has become a benchmark for other companies who want to achieve the same global
popularity, revenue growth and staying power. So what are the reasons Apple has
remained a consistently excellent marketer for over a decade?
1.1. Apple keeps its product presentation and marketing simple
Apple follows the philosophy of simple is better through their products, they don’t
overwhelm their targeted customers with too many choices, options or even
parameters.
Apple lets its products speak for themselves and keeps it's messaging and visuals
simple. They know that their products will sell without relying on the top and
expensive advertisements.
This strategy is also seen in their logo a simple apple with a missing corner, even their
retail stores are designed for testing and checking out the products than just buying the
boxes.
The products have short names that are easy to remember, along with that it has well
appreciated sleek and minimal design with simple colour schemes. The company also
reduces confusion by simplifying their web and sales copy as they use simple and
direct words and they continually stress the benefits that consumers absolutely need.
This is part of their brilliance in content marketing where they produce high tech
products without high tech terms. Apple’s advertisements and marketing strategies
don't just convey specifications and features, but rather how the product can change
your life and make it better.
1.2. Apple provides a well-appreciated customer experience
Apple holds the customer's experience in high regard, the experience can include every
element which is comparing different product versions to each other, trying out new
products in the retail store, buying the item, receiving it unboxing it and setting up the
devices. All the devices are carefully crafted according to the company to appeal to the
consumer's requirements.

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For example, when it comes to the instalment, one of the things Apple fans truly
appreciate about Apple computers is that is very easy to set them up. This is why
Apple spends a lot of money and thousands of hours testing and replicating to refine
those designs.
The retail store is also carefully designed with warm lighting, monochromatic colour
schemes, and the layout of the store features all appeal to the shopper’s requirements.
1.3. Apple knows its target audience and how to reach them
Apple has worked hard to find its target audience and they understand its audience’s
likes, dislikes, habits and language they want to use. By simplifying the marketing
process in the language that the audience understands an amazing bond is formed
between a prospective customer and the brand, and a lasting connection for an existing
customer. Apple does mention all its specifications and technical details, which is
usually below the fold rather than it being in the face.
When a customer visits the websites they have to scroll past the beautiful and
aesthetically designed product images and large font simple copy telling them about
the benefits of the product.
While Apple advertisements show happy people having a great time with the
simplicity of their iPads. This consistent display of positive emotion is the driving
force behind sales. They’re not selling more storage or more battery life but way more
than that.
For example, the iMac product advertisements portray iMac that it isn’t just “a
computer” it helps make your computing experience exciting and pleasurable or the
iPhone isn’t just “a smartphone” it lets you put the power of an Apple computer in
your phone.
1.4. Apple creates mystery and hype around the product
Usually, when a company launches a new product in the market, the marketing team
will reveal details and information about the new product. The reason behind this is to
tell customers everything about a product to get them excited and build anticipation.
However, when it comes to Apple it takes a new and unique approach, creating
excitement by withholding information around new products as they tease it out.
This is why creating mystery around product launches is one of Apple's best marketing
tactics. It is a clever approach as it turns the target audience into loyal fans, as this will
make them curious encouraging them to search for more information and share
everything they find about the product.
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1.5. Have a community of loyal users or customers
For more than ten years Apple has worked hard on building a community of loyal
users, customers and fans around the world. Apple marketing strategies include
making customers want to belong to that community as it is deemed to be “cool”.
Apple smartly capitalized on the universality of that self-perception, which made its
customers believe that the brand understands them and is like them.
Even small brands can build a community of devoted users and customers by building
a strong and engaged community of users is to get clear on your company's brand
values and personality.
Another important step is to make sure that the marketing copies and content express
and resemble those values and personalities. The website must be consistent with those
words you chose to describe your brand, from graphics to fonts to colour scheme.
1.6. Consider the value of the products
What makes perceived value so important from a company perspective is that
customers may be willing to pay a higher price because they deem the brand to be of
high quality or a higher status symbol. This gets to the heart of Apple's continued
success over its competitors.
Despite Samsung actually selling more phones during the last months of 2017, Apple
still managed to receive 87% of total smartphone profits which is a huge monopoly.
2.Supply Chain Management
Apple has been rated the top company in supply chain management and inventory
management. Supply Chain Management refers to the flow of materials from the raw
materials to the finished products ready to be sold to the consumer (Heracleous, 2016).
Tim Cook is commented for the simplification of the supply chain strategy of Apple.
Despite the legendary leadership of Steve Jobs, the SCM adopted by Apple then was
complex. Tim Cook’s leadership saw the transformation from a complex system of
inventory to a simplified inventory that has led to the winning of several awards since
2010. The strategy involves first, he cut down ¾ amount of the suppliers and half
number of stores and he requested the supplier for sourcing rmaterialsial from China,
the United States, and Europe. The content is transported to China for assembly via
plane. After that, the finished products are transported to the warehouses in California
via ship. Furthermore, Apple is leading in online display of the products. The record of
sales due to the online marketing approach half the total sales. The following are some

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of the strategies that Tim Cook established in the SCM department leading to a
complete transformation of the economy.
1. Products supplied having a long-life span- more than 12 months.
2. The number of warehouses was reduced and a central one created at California
3. Applying outsourced manufacturing hence decreasing the cycle time
4. Reduced the number of suppliers who were involved in shipping, production, and
storing.
The third one is effective. It means Apple retains all aspects of innovation in the
United States and outsources the rest. The words “designed by Apple in California”
can be found on the back of the iPhones. Product research, design and development
activities that are the most mind-intensive and also the most valuable activities in the
value chain will be retained, while production, transportation, and storage activities
will be retained. warehouse… will be outsourced. The flexibility in outsourcing has
helped Apple focus on its core competencies of research, innovation and creativity to
continuously launch new products that convince consumers. Apple is a manufacturing
company that doesn't actually own any production lines.
In his statement, Tim Cook asserts that inventory should be dealt with as one deals
with a dairy product. It is evil such that it will lose its value once its target period
elapse.
On the other hand, a few shortcomings can be observed with the model of SCM at
Apple. The following points can summarize the challenges involved in Apple’s SCM
model.
1. The global economy can easily challenge the model
2. The risk of the obsolesce of the inventory if the demanded forecasted fail
3. Effects of disruptions from both natural and human-made disasters can be
devastating
4. The high dependence of the outsourcing partners can be the primary contribution of
the failure
5. The code of conduct for suppliers can be ignored at times leading to severe delays to
the organization (Harvey, 2016).
From the above model and design of Supply Chain Management, Apple is considered
to be the leading company in the SCM. However, a few allegations have existed from
the employees and close observers. It is alleged that the company has been found
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involved in child labor and total mismanagement of the human capital. Some critics
argue that Apple workers suffer from stress due to long shifts that include rounds from
one place to another (Harvey, 2016). The issue points to the missing mark in the area
of job design and human resources.
3.Inventory Management.
Inventory management is closely related to SCM. In general terms, inventory
management involves ordering raw materials or storing raw materials and finished
products (Heracleous, 2016). Every company will need raw materials to be processed
into finished products. The complex question for every organization is how to order
and store what is required only at that time. Different organizations have adopted
different models of inventory management. Some of these models include:
Just-In-Time
The strategy came into existence as a result of manufacturing procedures developed in
Japan by Toyota Motors. Since most companies find themselves in excellent loses of
storing parts that become obsolete before they are put into use, JIT became a solution
to this problem. It involves ensuring that materials arrive at the manufacturing plant
just in time when they are needed. The challenge can be external factors that may
cause failure, such as a hitch in the means of transport. It is, therefore, a risk model of
inventory management since slight negligence can lead to delay in the next stage of
production or sale.
When it comes to inventory metrics, financial analysts often refer to two metrics. The
first metric is the "Inventory Turnover," which indicates the number of times a
company's average inventory turns over during a company's inventory period. If this
coefficient is large, it means that the turnover of goods in the warehouse is fast and the
company's goods will sell very well. Conversely, if this coefficient is small, the
turnover rate is low, goods will be less sold and kept in more, leading to less number
of warehouse exchanges. The second parameter is the "Day of Inventory", which is a
measure of a company's financial viability. This index tells investors about the time it
takes for a company to liquidate all of its inventory (including goods still in
production). Normally, if this ratio is low, it means that the company is doing quite
well.
See this compare to exclaim that Apple has been doing a great job of inventory
management

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It is true to say that Apple Inc. is among the top companies in the world. The secret is
knowing how to compete favorably and insisting on quality. The center of excellence,
however, is the operations department. The operations manager coordinates every
department to ensure that every team player is operating at the optimum conditions.
Any part of the system that requires a boost will be easily noted, and plans on how
support can be availed will be in place.
Operations management becomes real when the ten areas of decisions making in an
organization are considered. Once every field is working smoothly, then the whole
system will be at the optimum position. In my opinion, Apple has excellent operations
Management. Only a few areas need to be improved despite ranking top in the world.
The inventory management models employed should be varied to include other models
like JIT. Also, there is a need to simplify further its supply chain Management model
to lower the probability of losses and del
V, Apple Inc. SWOT analysis
1. Apple’s Strengths:
1.1. Leading Technology Innovator
One of the greatest stunts used by Apple is innovation. The potential of Apple
Company to produce its hardware, software, and other products brings the company at
the top of the line.
Each year they launch new products with the enhanced predecessor, latest design and
make the products more user-friendly every time. That is the reason why it wins the
majority of market share, even though its price is relatively high..
1.2. Leading Technology Edge
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When considering Apple’s strengths, it would be remiss not to mention the company’s
leading technological edge. As one of the most innovative tech giants of the modern
era, along with Amazon and Google/Alphabet Inc., Apple continually sets new trends
when it comes to technology development. From introducing groundbreaking features
like facial recognition through Face ID (iPhone X) or augmented reality apps through
ARKit (iPhone 8), Apple pushes boundaries by bringing state-of-the-art solutions into
consumer markets faster than any other competitor can keep up. 
1.3.  Very high-profit margin:
Apple is one of the leading companies when it comes to earning profit. It has a large
array of products that are sold all over the world. Since people around the world
simply adore their products, every time a new gadget is released people rush to buy it.
Recently, Apple has started to sell its iPods and chargers separately, this has also
helped them to maintain higher profit margins.
2. Apple’s Weaknesses
2.1. Expensive products:
The high cost of Apple products can make them seem like a luxury. The products are
priced for middle and high-income consumers. Low-Income consumers can’t afford
Apple products.
The biggest weakness of Apple Company has to be its high price. Its top-priced
products become a vulnerability for the company because consumers can easily select
products of comparable quality but at a lower cost.
2.2. Incompatibility with Other Software
When a customer buys an apple product, they enter the Apple universe. Apple’s
products do not support other software or technologies making them incompatible with
other devices.
Customers have to exclusively purchase Apple apps or accessories to continue using
their Apple products.
2.3. Allegations of Tracking
Tracking users undermines trust. Apple has been accused of using tracking apps in its
phones, which revealed the precise location of users.
Even though the latest version of Apple’s phones gives users the right to decline the
tracking, trust is difficult to regain once it is lost.  
2.4. Limited Advertisement & Promotions
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Apple has solidified their grounds by establishing loyal customers, even with limited
advertising resources. Apple marketing relies heavily on its iconic and flagship retail
stores. Because of their success, Apple does not feel the need to have excessive
spending towards advertisement in comparison to other big brands such as P&G,
Pepsi, Verizon, and Coca Cola etc. 
3. Apple’s Opportunities:
3.1. Consistent Customer Growth
Apple has created a premium image in the mind of the customers associated with style,
status, and customization boosting its sales.
Apple’s product announcements and unveiling events spread like wildfire. But that
isn’t the only thing – Apple’s iPhone also features a remarkable customer retention
rate of 92%.. This only begins to show what else they can achieve in terms of market
capture. Apple has the advantage to boost this percentage by keeping their loyalists
happy, and bringing more innovative ideas to life.
3.2. Addition to Product Line
Apple’s small lineup of products only help it capture a specific portion of the
smartphone market. They should add more products and services to their portfolio
which can help them compete against other technology leaders. For example, Apple
Pay has been a good addition alongside Google Pay or other payment options now
available worldwide.
3.3. Partnerships and Acquisitions
Apple has the opportunity to acquire startups and companies with investments in AI,
Machine Learning, and technology. Such acquisitions can allow Apple to incorporate
this tech into their products and further enhance its quality. As an example, Apple did
manage to acquire a company Regaind, which helped Apple in adding ML to its native
smartphone applications.
3.4. Technology
Apple has the opportunity to continue to grow beyond just Apple watch and airpods
into other wearable categories.
Upcoming technology along with Artificial Intelligence will enable apple to increase
it’s profit margin and have a strong market position, the company has also extended
it’s AI portfolio.

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4. Apple’s Threats: 
In this aspect of the SWOT analysis, the focus is on the threats that Apple experiences
from various sources, such as competitors like Samsung. Threats are external factors
that limit or reduce the financial performance of the technology-focused business. The
following threats are the most significant to Apple Inc.:
4.1. Increasing Competition and Market Share
Although Apple has established itself as a solid brand, It faces competition from
brands like, Samsung, Dell, etc., We can see the difference through the number of
android users as compared to Apple users.
4.2. Lawsuits
Apple is actively dealing with hundreds of lawsuits. Consumers mainly open these in
regards to their phones being slowed down and the CPU rates being throttled.
According to recent news, Apple is to pay $18M to settle a lawsuit for slowing or
disabling FaceTime on older iPhone models.      
4.3. Coronavirus Outbreak and Global Tensions
Most companies rely on their manufacturing and supply chain setup in China.
Unfortunately, the outbreak of the novel virus has managed to damage up to 20% of
Apple's annual revenues until April 2020, specially in countries like China, Italy,
South Korea, and The United States. The revenue was expected to be between $63bn -
$67bn, but it was only able to $57bn, which is a 15-20% drop from what was
predicted)
Apple’s supply chain was also affected by the same, and Apple reported a flat revenue
in the year 2020 due to supply chain uncertainties pertaining to the corona virus
outbreak.
Secondly, the increase of tariff on imports from China can lead to higher pricing for
the products. This, in turn, adversely affects the gross margins and more pricey for the
customers. Considering the first threat, a combination is a damaging blow.
VI, Conclusion
This SWOT analysis provides a clear picture of the strengths and weaknesses of Apple
and what threats it has to face. Meanwhile, it also tells us about the present
opportunities for Apple to avail today for a better tomorrow.
To remain successful in the long term, Apple must continue leveraging its strengths,
take measures to address its weaknesses, and constantly monitor external opportunities

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or threats that might arise. Through proactive strategies in marketing and operations
management, Apple can capitalize on opportunities presented by the ever-changing
digital landscape while mitigating risks to ensure continued success in the years ahead.

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