Operational Management: the Case of Apple, Inc.

Table of Contents

Contextual Analysis
Critical Assessment
Justifications of Recommendations
Reflection on Outcomes
Conclusion
References

Operations management is essential for productive businesses, as the concept implies the method of converting resources into final products. The term aims to transform the companys inputs, including human resources, technology, finances, and knowledge, into ready-to-consume goods and services (Robbins & Coulter, 2015). In particular, the transformation process is being referred to as specific procedures and work activities presented by an operational manager specialist. Notably, every system and member of a company is responsible for producing some output; therefore, managers must clearly understand operations managements concepts to navigate the companys resources most effectively. In general, operations management allows administrators to incorporate both goods and manufacturing, achieve maximum productivity, and strategize competitive success (Robbins & Coulter, 2015). Moreover, one of the most productive ways of comprehending efficient operation management strategies is to review the approaches utilized by contemporary businesses. Thus, the development of a solid plan is possible after analyzing the operationalization management strategy of Apple, Inc., and developing recommendations based on the operational theory.

Contextual Analysis

Apple Incorporated has gone through two distinct eras of management, with the Steve Jobs period of the early two-thousands being characterized by a charismatic but authoritarian style. In contrast, CEO Tim Cook utilizes a more democratic, cooperative method of working with his subordinates (Podolny & Hansen, 2020). This shift in leadership is mirrored with the extensive expansion of Apple in terms of a product line and staff. However, there is a commonality between both eras, the lack of general managers at the company. Instead, departments are run by experts in the respective field; for example, experienced, skilled software professionals run Apples software segments (Podolny & Hansen, 2020). This assessment of Apples operationalization techniques is derived from the first-hand experience of Joel Podolny, who is a vice president of Apple University in Cupertino.

Moreover, the justification for such a system is that teaching management is more accessible than teaching technical skills, as department heads must understand the items they produce. These experts are put together in teams based on specialization, so camera hardware engineers work with their peers on camera technology to enhance total quality management (Podolny & Hansen, 2020). This contrasts with conventional firms, where such technicians would be spread out among various teams working on different products, diluting their ability to share insights.

Furthermore, Apple currently maintains an intensely cooperative management style, as senior leaders believe that it is the best method to enhance product quality. In contrast to a conventional company supply chain system, when designing products, Apple will ensure various expert-run departments are actively communicating (Podolny & Hansen, 2020). Any disputes that arise are resolved by arbitration from senior executives, including CEO Tim Cook. However, generally, department leaders are encouraged to reach consensus without contacting upper management. This degree of cooperation is achieved through regular inter-department communication and feedback, where teams will present their work or progress to other units and receive input (Podolny & Hansen, 2020). Over time, this approach develops a degree of respect and camaraderie among employees, which facilitates long-term communication. Furthermore, constant cooperation and interaction allow Apple as a whole to adapt and manage changes and issues associated with it, such as misunderstandings. Collaboration helps Apple coordinate on micro-level topics; however, it is of limited effectiveness regarding macro-level issues, such as environmental issues.

Critical Assessment

First, Apple, Inc., is structured around prioritizing innovation of their products. The companys cooperation style aims to maximize innovative solutions. Apart from the CEO and a few other senior leaders, the companys communication is done by sharing experience and knowledge between engineers and designers (Podolny & Hansen, 2020). Thus, Apples primary resources are allocated to hiring experts in the technical sphere instead of using professional managers knowledge and expertise.

However, avoiding managers in the context of the quality control department in their companys daily operations can be counterproductive. Although Apple is prioritizing technical experts, as continuous improvement in the field is essential, it is crucial to note that operations management is important in all types of the organization (Slack, Brandon-Jones, & Johnston, 2013, p. 6). For example, despite the fact that Apple has had a remarkable breakthrough with iPods production, their battery life was significantly lower than expected, leading to major settlement costs (Robbins & Coulter, 2015). Thus, the company needs additional procedures to assist in prioritizing. Overall, the approach that is being utilized now is undoubtedly beneficial to the company; however, it comes at the cost of what needs to get done for a quality product.

Second, Apple is successful at managing changes because its approach is built upon extensive communication. Different members of departments are welcome to cooperate, which intensifies the creative process but also strengthens their ability to adapt to change (Podolny & Hansen, 2020). Company workers do not need to react to each other because they are all conscious of the internal changes occurring in the business, making them fully aware of the progress. The cooperation possibilities openness is essential for the industry to reach its end of exceeding consumers wishes since collaborative relationships among all chain participants must exist (Robbins & Coulter, 2015, p. 652). However, the communication process with customers is not particularly emphasized by the companys strategy, which shifts the focus from consumers needs to technical experts values.

Third, Apple has a sustainability progress plan, which is essential for a company of its size; however, the environment-based operational management is relatively weak. The project leader, Lisa Jackson, is a vice-president of environmental policies, emphasizing Apples commitment to diminish its carbon footprint (Apple, 2020). However, due to the companys operation method, the CEO or other senior leaders are rarely managing the core team directly. Thus, environmental issues are not considered the top priority of the companys technical specialists, as innovation remains to be their central focus. Therefore, the introduction of environmental-based managers to Apples core team can improve the issues with a focus on sustainability.

Justifications of Recommendations

Apple is a successful company, which has been one of the central players of the technology industry; however, certain aspects of it can be improved. The central recommendations can be derived through the employment of total quality management theory (TQM). The approach is the most applicable since its core principles and practices have been considered dominant for organizing appropriate operations corrections (Slack et al., 2013). Apples primary advice is to enhance its innovation processes by establishing practices and plans that promote quality and improvement, as it is the central aspect of the TQM (Slack et al., 2013). Thus, the electronic devices industry is highly compatible; therefore, Apple needs to ensure it resolves possible battery issues by developing a quality control department focusing on customers needs.

Furthermore, Apples collaborative nature is extremely valuable based on the TQM; however, the company needs to build a more vital bridge between consumers and suppliers. Members of the business can effectively adjust to change, as they are encouraged to establish collaborative channels, which is an essential aspect of the operational theory. However, it is vital to remember the importance of customers inputs, as TQM means meeting the needs and expectations of customers (Slack et al., 2013, p. 281). The industry is continuously changing; thus, to appropriately react to external alterations, Apple must emphasize the significance of working with peoples wants, considerations, and choices. This can be implemented by developing clear and strong customer-centric objectives.

Lastly, applying TQM for Apples environmental policy will require a re-alignment of priorities among the companys various departments. This management method will help ensure a quality transition to more green procedures during assembly. Production quality is already a vital part of the companys culture; however, this comes at the cost of leaving the climate-conscious design as secondary. To put TQM methods in place, Apple will need to readjust its estimates and measures to include environmental standards (Slack et al., 2013). Furthermore, the costs of an appraisal, prevention, and failure must be assessed in the context of ecological production and design.

Reflection on Outcomes

The potential outcomes of properly implementing the various suggestions in the previous sections will help Apples business better prioritize customer-driven design and management. While re-introducing professional managers and the general managers role may not be necessary, they are likely to benefit from big picture decision-making. The creation and implementation of a quality control department could help Apple avoid issues of misreading consumers desires and needs. While excellence is always presented as the priority, it is vital to understand which qualities customers care about and thereby cannot be ignored (Slack et al., 2013). The demands and norms of the market must be part of the design philosophy of Apples experts to avoid, for example, the battery issues plaguing some iPod models. Similarly, environmentally-friendly production must be added as a consideration during strategizing, and it must become part of any TQM measurement. Should these ideas be implemented, Apple is likely to emerge as more competitive in a continually expanding market. Developing their management to avoid expert-driven production pitfalls will allow for a union of technical ability and business skills.

Conclusion

Apple is a giant business that is based on collaboration and innovation. The company has a novel approach to administration, as it does not hire staff with a background in management. Instead, the technical experts are later trained by the company to lead and manage the rest of the team members. This strategy has certain positive aspects based on the TQM operational theory since every element of a business, each unit, every project, and all individuals are highly advised to collaborate. The recommendation is based on the fact that every member of the company positively affects one another, leading to innovation and understanding of the change. However, other TQM aspects are not being implemented efficiently, including quality control, customer-centric objectives, and sustainability-prioritization. Therefore, after following the given recommendations, Apple can become more competitive in the business, improve its quality, understand its customers needs, and be more environmentally cautious.