FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES

DIPLOMA IN CORPORATE ADMINISTRATION [AM120] – 1B

INTRODUCTION TO MANAGEMENT PRINCIPLES AND PRACTICES

[ADM151]

TITLE: ISSUES OF APPLE INC.

PREPARED FOR:
DR. ZARINA BINTI MOHD ZAIN
SIR MOHD ZULHILMI BIN MOHD YUNUS

PREPARED BY:
NO. NAME STUDENT ID
1. DAMIA NATASHA BINTI SAMSUL RIZAL 2023481282
2. IMAN HANNAH BINTI RAHIMI 2023855414
3. PUTERI DHIA BATRISYIA BINTI BAKHTIAR 2023892552
4. UMMU KALSUM BINTI APANDI 2023881008

GROUP NAME:
Apple Inc.

DATE SUBMISSION:
19th January 2024
TABLE OF CONTENTS

1.0 Introduction..........................................................................................................3
2.0 Managing Its Global Supply Chain.....................................................................3
2.1 Issues regarding Managing Its Global Supply Chain....................................... 4
2.2 The solutions of The Issues (Planning and Controlling)...................................4
3.0 Maintaining Good Innovation and Product Evolution...................................... 5
3.1 Issues regarding Maintaining Good Innovation and Product Evolution............5
3.2 The Solutions of The Issues (Planning and Leading).......................................6
4.0 Maintaining Good Product Quality and Recall..................................................7
4.1 Issues regarding Maintaining Good Product Quality and Recall...................... 7
4.2 The Solutions of The Issues (Controlling)........................................................ 8
5.0 Conclusion........................................................................................................... 8
6.0 References........................................................................................................... 9
1.0 Introduction
In 2018, Apple made history by becoming the first U.S. company to be valued at $1
trillion, and then in 2020, Apple made history by reaching an incredible $2 trillion in market
value, breaking its own record. Since 2010, Apple has been one of the most valuable
companies globally for making things people really love and making profit doing it. iPhones,
iPads, Mac computers are the cool gadgets that turned Apple into a tech superstar. They have
a vision not just about devices, it's about creating a whole tech world that people can't get
enough of. Their secret is by mixing innovation with designs that make people want to buy
their stuff (Investopedia, Andrew Beattie, 2021).
Apple's success story is all about making products that become part of our lives. The
iPhone, for example, isn't just a phone it's a symbol of the latest tech and style. Apple's ability
to keep making things we can't resist has made them a big player in the tech world, showing
that it's not just about money but about creating stuff that people genuinely love and want to
have. As a result, Apple is one of the largest, most profitable and richest companies in the
world. However, Apple Inc. has faced various challenges over the years, and the company
has employed the functions of management which are planning, organising, leading, and
controlling to address these issues (Investopedia, Andrew Beattie, 2021).

2.0 Managing Its Global Supply Chain

Apple's global success is largely due to its effective supply chain. The company has a
well-organised global network for sourcing components and materials from various locations,
ensuring timely and cost-effective delivery to its manufacturing facilities. This integrated
supply chain involves collaboration with suppliers, manufacturers, and logistics partners.
Apple maintains high standards for quality and reliability, working closely with suppliers to
meet production schedules. Logistics partners play a vital role in transporting materials and
managing inventory levels (Everything Supply Chain, 2024).
2.1 Issues regarding Managing Its Global Supply Chain

Drawing from global databases of power-generation, extreme weather, flood zones,

economic impact and carbon emissions, Bloomberg Opinion found that the very regions most
vulnerable to climate change are those with the highest concentration of manufacturers. Put
simply, the belt of the planet where natural disasters will intensify most rapidly due to global
warming, floods and heatwaves is precisely the one where Apple has built its manufacturing
footprint. It’s most visible in a swath of Asia from India in the southwest to Japan in the
northeast (Bloomberg, Tim Culpan, David Fickling and Elaine He, 2023).
In a 2018 study, researchers in Australia calculated how different levels of climate
change would affect gross domestic product in 139 countries. The results were stark: Five of
the 13 middle-income nations facing a GDP drop of at least two percentage points by 2037 on
a 3 degrees Celsius (1.7F) warming pathway are ones where Apple has suppliers such as
India, Indonesia, the Philippines, Malaysia and Cambodia (Bloomberg, Tim Culpan, David
Fickling and Elaine He, 2023).
They’ve already seen the damage weather disasters can do to multinational
manufacturing operations. Floods across Thailand in 2011 caused by rainfall from the La
Niña climate cycle shuttered more than 14,000 businesses, throwing a spanner into global
automotive and electronics supply chains that were dependent on low-cost manufacturing
close to the capital Bangkok. It was the biggest flood disaster in the history of the insurance
industry, causing about $55 billion of losses and slowing deliveries of Apple’s Mac
computers as component suppliers were forced to suspend work (Bloomberg, Tim Culpan,
David Fickling and Elaine He, 2023).

2.2 The solutions of The Issues (Planning and Controlling)

Apple Inc. utilises effective supply chain management (SCM) as a key risk
management practice. They examine external risk factors associated with their key suppliers
using Bayesian networks, which helps in making decisions regarding current and prospective
suppliers and their potential impact on supply chains. Additionally, Apple Inc. considers both
internal and external factors to analyse their performance. Internal factors include financial
risk, market risk, operating risk, credit risk, and liquidity risk, while external factors include
GDP, inflation, exchange rates, index rates and natural disasters (PubGenius Inc., 2024).
Apple used their wide-ranging risk supervision program in place to detect and
mitigate risks in its SCM. The company uses a variety of tools and techniques to assess risks,
including supplier surveys, site visits, and scenario planning. Apple also maintains a business
continuity plan to ensure that it can respond quickly to unexpected events, such as natural
disasters or SCM disruptions. Thus, we can conclude that Apple Inc. used planning and
controlling functions in management to solve issues regarding their supply chain (Medium,
Syed Talash Bukhary, 2023).

3.0 Maintaining Good Innovation and Product Evolution

Apple has faced difficulties in maintaining a high level of innovation and evolving
product lines to meet changing consumer preferences and technological advancements. Last
several years of Apple’s products and announcements, Apple silicon has been the backbone
of some of the most exciting product differentiators and features across the entire product
line, and certainly with the Mac. It’s not an overstatement to say that proprietary
semiconductor work Apple has been doing is now as critical to the experience of using
Apple’s products as its software and services. However, in the last several more years,
Apple’s silicon advancements have been increasingly facing challenges.

3.1 Issues regarding Maintaining Good Innovation and Product Evolution

The A16 Bionic chip found in the newest iPhone 14 Pro line of products has seen
modest improvements over the A15 in terms of GPU performance. Reports speculate that
initially, the goal was to introduce ray-tracing to the A16, but due to engineering issues these
plans were scrapped very late in the process. Such missteps by the Apple silicon team have
been called “unprecedented” (Medium, Maxim. S, 2023).
Next, Apple has cancelled the development of the updated iPhone SE model that was
originally supposed to launch in 2023. One of the reasons for this decision cited is struggles
Apple is facing with the development of their in-house modem chips. Kuo said that suppliers
have been informed by Apple that production and shipment plans for the iPhone SE 2024
have been cancelled. He added that it has something to do with Apple’s in-house developed
5G chip. Apparently, the Cupertino company plans to introduce their own baseband chip
starting with its entry-level model. However, it seems that the performance isn’t up to par
with Qualcomm’s chip which Apple is currently using for its 5G-enabled devices (Alexander
Wong, 2023).
Furthermore, Tim Cook initially announced the transition of the Mac lineup to Apple
silicon in June 2020, he mentioned that this process would be concluded in two years. In
February 2023, Apple silicon Mac Pro is still nowhere to be seen. According to reports, one
of the issues with the product has been the performance of the rumoured M2 Extreme chip
that is supposed to power the high-end desktop (Medium, Maxim. S, 2023).

3.2 The Solutions of The Issues (Planning and Leading)

Apple Inc. used two types of management function which is planning and leading to
address this issue by emphasising on their research and development, ensuring that it
continues to innovate in product design and features. The leadership, particularly under Steve
Jobs and later Tim Cook, played a crucial role in guiding the company's vision and
maintaining a culture of innovation (Lee Nallalingham, 2023).
Apple's transformation was to shift the company's focus to innovation and design.
Steve Jobs was a strong believer in the power of design to create products that people would
love. He also believed that innovation was the key to staying ahead of the competition. Under
Jobs' leadership, Apple began to focus on developing new products that were innovative,
beautiful, and easy to use. For example, One of the first products to come out of this new
focus was the iMac. The iMac was a radical departure from traditional desktop computers,
with its sleek design and bold colours. It was an immediate success, and it marked the
beginning of Apple's transformation (Lee Nallalingham, 2023).
Another Apple's transformation was the development of a strong ecosystem of
products and services. Apple realised that customers would be more likely to buy its products
if they worked seamlessly together. This led to the development of products like the iPod,
iTunes, and the iPhone, which were designed to work together seamlessly (Lee Nallalingham,
2023).
4.0 Maintaining Good Product Quality and Recall

Apple Inc. is one of the unique industries that has consistently led the market with
innovative product design and imaginative layouts. For decades, Apple Inc. iPhones have
attracted a large number of teenage and adult users, allowing management to provide novel
iPhone goods to the market and enhance their position in comparison to other industrial
appliances and manufacturers.(Aditya Rawat, 2023)

4.1 Issues regarding Maintaining Good Product Quality and Recall

Apple Inc. is well-known for its high-quality management standards, which pervade
all parts of the company, including a loom for product design control, retail, development,
and market control. Apple's commitment to quality control has faced challenges, particularly
with the iPhone 15. Apple Inc. designs the iPhone in California, USA but purchases
components from suppliers in 43 countries across six continents, sends the parts to factories
to be assembled, and then ships completed iPhones to warehouses and then to retailers around
the world. (Aditya Rawat, 2023)
Apple Inc.'s continued product releases and updates have been marked by a noticeable
decline in the extent and impact of its innovation, especially when compared to its past
successes. Apple's goals have been extended to include more than just software and services
So, what has been the substance of the problems Apple is dealing with? Let's take a look,
with Apple Inc. facing criticism for restricting iPhone customers from using Google Voice by
not including it in their design layout settings. Apple declined to use Google voice
applications, citing that the Google program was changing its capabilities. So, with Google
installation, no voice was routed through iPhone's "Native application visual voicemails," but
rather through the Google application that was operating on the user's device (Wu 2016). As a
result, there was widespread disagreement. The FCC began an investigation into Apple's
decision to deny its users the ability to install the Google Voice application from the Apple
Store. As a result, the stakes were high in this controversy. (Aditya Rawat, 2023)
4.2 The Solutions of The Issues (Controlling)

To address this issue, Apple Inc. has used a controlling function of management.
Apple Inc. should incorporate more information about their corporate philosophy, employees,
and imagery in various business markets to attract more potential customers. It might be
inbound information regarding its product specifications, newest innovation, and new
launches to include the customer's perspective and future business markets. (Joel M. Podolny
and Morten T. Hansen, 2020)
Aside from that, Apple can make the vision more concise. Instead of going into depth
about their values and views, they should condense their corporate vision so that employers
can easily understand, assimilate, and apply it in their daily work activities. (Joel M. Podolny
and Morten T. Hansen, 2020)

5.0 Conclusion

In conclusion, supply chain management helps reduce the cost of production by

reducing the loss of resources in every supply chain operation. Furthermore, this enables
them to reduce the cost of the product for the end customers. For instance, better quality
products at lower costs attract maximum business. Other than that, successful implementation
of lean supply chain management requires companies to understand customer requirements
such as use data and analytics, collaborate with suppliers, manufactures, technology, and
focus continuous improvement.
Furthermore, Apple’s has been successful in maintaining a good innovation and
product evolution by establishing the company as a market leader in technology. Apple’s
focus on product design, pricing, promotion and distribution has enabled it to differentiate its
products, build a strong brand image, and maintain profitability. Other than that, identifies
important matters and provides evidence-based strategies for the industry. It should address
the transformations taking place in emerging markets and the challenges and opportunities
they present.
On the other side, Apple manages to improve the quality of its products and services .
For instance, like any good design company, the design process at Apple is not over when
manufacturing begins. In fact, Apple iterates the design throughout manufacturing.The
product is built, it’s tested and reviewed, then the design team improves on it and it’s built all
over again. Moreover, Apple’s products are known for their reliability and durability, which
means customers can trust that their investment will last them for years. This commitment to
innovation and quality has helped Apple build a reputation as a brand that customers can
trust.
In general, Apple’s products are often considered premium products and are often
more expensive than their substitutes. This pressures the company to maintain its strategy and
justify its premium quality of their products. Additionally, Apple Inc. has a long development
history and with the long-term growth also it has achieved a certain successful development.
The various strategies have contributed much to the rapid and successful development.

6.0 References

● Investopedia, Andrew Beattie (2021), How Did Apple Get So Big? | The Story
Behind Apple's Success from
https://www.investopedia.com/articles/personal-finance/042815/story-behind-apples-s
uccess.asp
● Everything Supply Chain (2024), Guide to the Apple Supply Chain | How Apple
Manages Its Global Supply Chain from
https://www.everythingsupplychain.com/guide-to-the-apple-supply-chain/#:~:text=Th
e%20company%20must%20ensure%20that,costs%20and%20improve%20customer%
20service
● Bloomberg, Tim Culpan, David Fickling and Elaine He (2023), Apple’s Supply Chain
Is on a Collision Course With Climate Change from
https://www.bloomberg.com/graphics/2023-opinion-apple-supply-chain-climate-chan
ge/#:~:text=Apple's%20suppliers%20are%20primarily%20located,raising%20climate
%2Dbased%20trade%20barriers
● Medium, Syed Talash Bukhary (2023), Global Supply Chain Strategy of Apple Inc.
from
https://medium.com/@s.s.s.a.ehsan/global-supply-chain-strategy-of-apple-inc-40fde9
df4e5e
● PubGenius Inc. (2024), What are the key risk management practices used by Apple
Inc. from
https://typeset.io/questions/what-are-the-key-risk-management-practices-used-by-appl
e-inc-1v4cn9ncyd
● SoyaCincau, Alexander Wong (2023), No more new iPhone SE? from
https://soyacincau.com/2023/01/10/apple-no-more-new-4th-gen-iphone-se-2024/
● Medium, Maxim. S (2023), Apple’s challenges and opportunities 2023 edition from
https://maximsamoylenko.medium.com/apples-challenges-and-opportunities-2023-edi
tion-58731184d654
● LinkedIn, Lee Nallingham (2023), The Transformation of Apple: How Innovation and
Design Changed the Game from
https://www.linkedin.com/pulse/transformation-apple-how-innovation-design-change
d-lee-nallalingham
● LinkedIn, Aditya Rawat (2023), Innovative Mojo Wanes as Apple Products Loose
Their Charm from
https://www.linkedin.com/pulse/has-apple-lost-its-innovative-edge-closer-look-tech-g
iants-rawat
● Harvard Business Review, Joel M. Podolny and Morten T. Hansen
(November-December 2020), How Apple Is Organized for Innovation from
https://www.apple.com/jobs/pdf/HBR_How_Apple_Is_Organized_For_Innovation-4.
pdf