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Essay: How Apple Optimizes In-Store & Online Logistics to Reach Success

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MODULE TITLE: Business Operations and Logistics

MODULE CODE: BUS5007

LECTURER: Dr. Juanling Huang

Student Name: Johnson Okebulu Jombo

Introduction

Business operations and logistics administration is a basic capacity that coordinates and advances all logistics exercises of a business, notwithstanding other imperative capacities, for example, producing, data innovation, advertising, and deals. Logistics exercises occur in the production network, and assume a key part in deciding business achievement. Despite the fact that the production network comprises of different exercises and undertakings that move starting with one point then onto the next, a business needs to guarantee that every one of these procedures adjust to both its operations and aggressive technique, keeping in mind the end goal to accomplish its objectives ( Meindl, 2010). Basically, the objective of successful inventory network administration is to lessen pointless logistics costs and enhance the general productivity. This paper investigates an organization, Apple, in-store and online shop. In investigating this subject, this paper first gives brief foundation data on the organization. Furthermore, this paper talks about writing perspectives on the operations and logistics administration of the organization, notwithstanding a procedure stream guide of their operations. In conclusion, this paper gives a correlation on how the in-store and online organization deal with their operations and logistics.

Background of the Company

The company ‘Apple’ started in 1976, in progress as a computer company. For era, on the other hand, Apple has grown into a complex company that concentrate not just in computers but much more rather. In the year 2001, The Company Apple, took the lead with the ‘iPod’, ultimately becoming the foremost market leaders in music player. Also in the year 2007 ‘Apple also joined the phone production with the iPhone device, which was a great success for the company, and also made the lives of the customers happy and easier.

Apple is a consumer goods company, and consequently assessing its value obliges understanding its product and consumers. This can be very problematic, for the reason that Apple contests with many diverse companies throughout the different industries it takes part in.

Also something else to know about ‘Apple’ is that a lot of press is linked with the CEO, Steve Jobs, he is known as the draftsman of most of the Apple’s marvellous products and the motivation for their accomplishment. All his exhibitions at Apple’s mass media events are ‘stimulating’ and innovatory.

Acknowledged his celebrity appearance, his prominence and well-being as Apple’s CEO bonds into how stakeholders value Apple, and for this motivation we must tail him. (Apple, 2015)

Apple Store In-store

The Apple Store is a series of retail stores asserted and worked by Apple Inc., overseeing PCs and customer equipment. The stores offer Macintosh PCs, programming, iPod, iPad, iPhone, Apple Watch, Apple TV, and select untouchable additional items. All stores offer a Genius Bar for specific reinforce and repairs, free thing workshops for individuals when all is said in done, youth programs (workshops, field trips, Apple Camps); some conspicuous stores incorporate a theatre for presentations and workshops and a studio for get ready with Apple things. Under the organization of Ron Johnson, the past senior Vice President of Retail Operations, the Apple Stores have, according to an article in The New York Times, been responsible for "[turning] the penetrating PC arrangements floor into a smooth cave stacked with contraptions". Apple stores have a regulated appearance with light wood tables and a general immaterial setup.

With overall offers of US$16 billion in stock in 2011, Apple drives the United States retail promote similarly as arrangements per unit locale. Apple has 481 retail stores in 18 countries and an online store available in 39 countries.

Steve Jobs, the prime supporter of Apple, returned as between time CEO in 1997. As demonstrated by Jobs biographer Walter Isaacson, Jobs began a planned campaign to help bargains by upgrading the retail presentation of Macintosh PCs. To be sure, even with new things dispatched under Jobs' watch like the iMac and the PowerBook G3 and an online store, Apple still depended enthusiastically on tremendous box PC and devices stores for by far most of their arrangements. There, customers continued overseeing ineffectually arranged and seriously kept up Mac zones that did not develop customer loyalty to Apple and did not isolate the Mac customer experience from Windows. honestly, the retailer example was towards offering their own particular non particular in-house brand PCs which used extensively less costly fragments than those by huge PC inventors, extending retailer general edges by keeping the gathering advantages. This "gave a fit advantage reason to change over customers enlivened by buying a Mac into the proprietors of another, reasonably assembled, house brand PC

Tim Cook, who joined Apple in 1998 as Senior Vice President for Worldwide Operations, reported the association would "cut some channel accessories that may not be giving the acquiring foundation [Apple expects]. We're not content with everybody." Jobs separated Apple's ties of each gigantic box retailer, including Sears, Best Buy, Circuit City, Computer City and Office Max to focus its retail tries with CompUSA Between 1997 and 2000, the amount of Mac affirmed partners dropped from 20,000 to just 11,000, with lion's offer of these were cuts made by Apple itself. Jobs reported that Apple would be concentrating on Dell, with Cook's charge to match or surpass Dell's slope inventories and streamlined stock system, "with our new things and our new store and our new shape to-demand, we're coming after you, amigo." While Dell had filled in as a mail station based mail solicitation and online solicitation association, having pulled out of retailers to recognize more paramount net incomes and viability, Apple had direct demands with arrangements dealt with by its channel assistants, other mail solicitation subsidiaries, self-governing dealerships, and the new relationship with CompUSA to fabricate "stores within a store".

Jobs did a study for stand-alone "store within a store" for 34 destinations in Japan. These destinations were laid out by Eight Inc. who was arranging the Apple MacWorld and thing dispatch events with Apple. CompUSA was one of just a modest bunch couple of retailers that kept its Apple contract by consenting to grasp Apple's "store within a store" thought delineated by Eight Inc. This required around 15% of each CompUSA store would be set aside for Mac hardware and programming (numbering non-Apple things) and would have to an impact time Apple agent. However the "store within a store" procedure did not meet yearnings, to some degree in light of the fact that the Apple portion was in the most negligible development region of CompUSA stores. CompUSA president Jim Halpin, who reported that he would make Apple things his top need, was constrained to leave a year later. Furthermore CompUSA experienced trouble finding all around arranged staff, as most store specialists generally speaking guided customers a long way from Macs and towards Windows PCs. Notwithstanding these disasters, CompUSA offers of Macs had extended, by virtue of the bid of Apple showcase districts with their self-running demos, and furthermore the overwhelming layout of the new Macs, and possibly in view of grass-roots attempts of neighbourhood customer pack people who volunteered their chance to help expected customers. Apple then included Best Buy as a second endorsed member. Challenges still stayed, as members' general incomes on offering Macs was just around 9%, and offering Macs was simply invaluable if consistent organization and reinforce contracts were given, of which retailer experiences were clashing

Apple Store Online

The Apple Store is the online store of Apple Inc. All of Apple's item contributions are passed on furthermore select brands of embellishments for its things. It is asserted and worked by Apple from Cupertino, California and their reinforcements. Other than the online store-front, things from the store can in like manner be asked for by phone.

As of November 2013, Apple's online store was available in 39 nations, with physical Apple Stores numbering 444 in sixteen countries (263 US/181 somewhere else). They reported overall offers of US$16 billion in stock in 2011, and drove the United States retail showcase to the extent bargains per unit zone. Not precisely a year consequent to increasing NeXT in the most recent days of 1996, Apple opened an online store on November 10, 1997, built using NeXT's WebObjects web application advancement.

WebObjects enabled Apple to create and pass on its online store within a year. Steve Jobs proclaimed that the new online store got over $12 million in solicitations in its first month of operation.

On June 15, 2010, Apple released an Apple Store application for iOS. It grants customers to buy things, find stores, and make arrangements.

In August 2015, Apple's entire website transformed into the online store, with no Store tab. Items can now be purchased with a "Buy" catch

Literature review of operations management

Apple's 1997 "Think Different" showcasing exertion was one of its most colossal ever. Declarations and flags included giant high difference representations of performers, experts, specialists, and political pioneers whose outcast musings at last got the chance to be standard. The obvious message was that Apple's "frantically wonderful" things were for unconventional instigators who may one day manage the world. The photo of Steve Jobs on the front of his after death journal would have fit right in. The Apple of today is playing Judas on that imaginative class. Mac no more blueprints for creators of modernized media, who tend to be to a great degree asking for about thing quality. Maybe, Apple fabricates for purchasers—in both resources of the word: people who spend their own money, rather than their associations', and people who eat up automated media, rather than people who produce it. Focusing on cutting edge usage has made Apple wildly advantageous, however the association's things have slanted downwards in quality, flexibility, and notwithstanding unflinching quality.

The Good Apple

From one point of view, Apple's reality couldn't be rosier and its future shinier. Ascending from the rubble of a breaking down organization in 1997, Apple has come to the zenith of accomplishment in 15 short years. With a business sector capitalization of over $500 billion, Apple is amongst the most important and very gainful organizations on the planet. Its astounding achievement lies in the organization's capacity to make really imaginative items with unlimited client advance. Apple mocks the customary way of thinking of the purchaser hardware industry, which underlines minimal effort, "me-as well" items, and a ceaselessly abbreviated item life. Rather, Apple has settled on consistent and discrete item development, bringing about aficionado shopper reliability and an abnormal state of benefit.

The Bad Apple

So why does Apple treat its clients and specialists by two unique guidelines? With regards to clients, Apple is an intense trailblazer that stands out into new headings and powers others to take after. Notwithstanding, with regards to the administration of its store network and treatment of specialists in the Chinese industrial facilities that make its items, it holes up behind the imperatives of winning industry hones. What is much all the more vexing is the way that these practices are infringing upon neighbourhood and national laws, as well as of Apple's own intentional deliberate set of accepted rules. Note that this deliberate implicit rules breaks no new ground. It is, best case scenario an unobtrusive endeavour to guarantee that specialists will be dealt with decently and gave a protected workplace. Yet the infringement proceed, in spite of years of observing manufacturing plants where Apple's own reviews show diligent resistance and notwithstanding these processing plants' rehashed broken guarantees to make strides.

Apple's Strategic Profile – Value Culture versus Cost Culture

In my perspective, Apple's great and terrible sides both radiate from the same business theory: skilful misuse of business sector power for the sole advantage of the organization and its financial specialists. This model does not consider "what is reasonable" but rather what is intensely achievable in higher costs for items sold and lower expenses for items made.

Worth Culture: When it comes to clients, Apple applies the idea of quality, i.e., an estimating procedure that is driven by its emphasis on the quality—genuine and saw—to its clients. The client is willing to pay a value that is equivalent to the item's apparent worth to the client. Subsequently, the length of the clients are fulfilled, Apple is under no commitment to decrease its costs.

Why Apple's development is set to proceed?

"Apple's expanded benefits have by and by puzzled wary experts, who expected the organization's most recent results to frustrate. Shane Richmond says there is minimal indication of a conclusion to Apple's ascent." When Apple propelled the iPhone 4S, in October a year ago, there were a few investigators who called it a failure. It wasn't sufficiently quick or sufficiently thin or sufficiently otherworldly, they contended. Truth be told, numerous grumblings appeared to be founded on the way that it wasn't called iPhone 5. A couple of days after the fact the telephone went discounted and Apple sold four million in three days. That didn't stop a number of the same specialist’s queueing up to express their mistake in Apple's third-era iPad a month ago. By and by, it was thought to be lacking as a redesign on the past model and by and by, the new device took off the racks; Apple sold three million in the initial three days. Regardless of two tremendously effective dispatches in six months, financial specialists were worried as Apple's second-quarter results drew nearer this week. The organization's offer cost came to a record high on April 9 yet fell by 10 for every penny over the two weeks that took after. In spite of the fact that shares were still up 40 for each penny this year, financial specialists were said to be concerned in regards to whether Apple's wonderful development could proceed. In run of the mill design, Tim Cook, Apple's CEO, perplexed cynics and declared a 94 for every penny increment in benefits on the same quarter a year ago, fuelled by iPhone and iPad deals.

Process map

The five performance objectives of the company in-store and online

Dependability; Both apple in store and online have additionally guaranteed trustworthiness in their procedure streams. By "being-on-time", both have expanded productivity and viability of their procedures, along these lines decreasing pointless expenses. By and by, the centre of the two organizations is very diverse. For example, apple in store embraced in the nick of time technique in stocking its inventories. It guarantees that suppliers convey inventories exactly when required, and that its racks have sufficient stock levels, to dodge deficiencies or overabundance stock. This functions admirably for Wal-Mart, as it diminishes stock expenses. Then again, the apple online has embraced without a moment to spare methodology while attaining its clients.

Cost; Both apple online and in-store have possessed the capacity to join the four methodologies talked about above to wipe out logistics efficiencies, so as to lower expenses, which later mean lower customer costs. The emphasis on this procedure clarifies how both organizations have possessed the capacity to accomplish manageable upper hand, which clarifies their present business sector pioneer positions.

Speed; It is additionally significant that both the in-store and online have guaranteed pace of reaction in their procedures. In any case, both spotlight on pace reaction in two particular ways. Case in point, the online spotlights on velocity reaction by observing its inventories levels, guaranteeing snappy supply in the event of need, and stocking it retail outlets in a convenient way. To lessen stock dangers, it is very striking that the organization sees how inside velocity is critical to its outside picture. Apple online then again, concentrates on outside pace, so as to pick up a focused edge. This is obvious from the way in which the organization reacts rapidly to client needs. Once a client puts in a request, Apple online guarantees that all important procedure at convenient composed to diminish delays, and consequently, expand consumer loyalty

Flexibility;

Quality; The quality of products from both the online and in-store are of very high quality, which is garneted from the company Apple, and fault from any from can be returned to any apple shop around and be changed at a good cost or a valuable reason.

Conclusion

Taking everything into account, the above investigation uncovers that compelling operations and logistics administration assume an imperative part in holding the accomplishment of a business. This is on the grounds that, through a viable logistics administration, a business minimizes on superfluous expenses, which then means low purchaser costs, subsequently giving a business a manageable focused edge over its rivals. Moreover, it likewise enhances the general proficiency of a business, as it can minimize squanders. It is additionally important that, to make progress, powerful logistics administration requires a key arrangement of association’s objectives, together with its logistics needs. Above all, innovation assumes an urgent part in operations administration and logistics, especially because of its energy to enhance correspondence, cut expenses, and make more effective logistics structures.

Reference

Slack, N., Brandon-Jones, A., and Johnston, R. (2013) Operations Management, 7thEd., Harlow: Pearson Education Limited.

APPLE INC.♥, (2015). Literature Review.. [online] Available at: http://betterbests.weebly.com/literature-review.html [Accessed 5 Nov. 2015].

Apple, (2015). Apple. [online] Available at: http://www.apple.com/ [Accessed 10 Nov. 2015].

fernie, J. and Sparks, L. (Eds) (2009) Logistics and RetailManagement: Emerging Issues and New Challenges In the Retail

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