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AppleHSMAnalysis.docx
HSM Analysis Apple
Project log
Executive Summary
In our case study we discuss about the Danish Consumer Complaints Board reported a fault with Apple iBook product line and Criticized Apple response to the issue, indicating customer support problems at Apple. In that case, a solder joint between two components fractured after a certain number of computer restarts causing the computer to break down, with most incidents occurring outside Apple warranty period. Websites such as AppleDefects.com were created in response to the issue and Detailed quality control issues with Apple product portfolio.
In Our case study we will adopt & apply HSM (Hard system method) according in our case project and execute all requirements as per instructor instructions.
Specifically, we analyze the post-2003 Apple business model. Apple has undergone several corporate iterations since its founding in 1978: at the outset, Apple's business model allowed outside companies, such as software and component providers, to use and enhance the base model. In 1978, the Apple II personal computer had an open architecture platform, allowing several new companies to produce specialized hardware and software components to rival the vertically integrated giants IBM, Burroughs and Digital Equipment. In 1997, Apple devised a more collaborative approach to PC making by fitting Macs with Intel processors and allowing users to run both Mac and Windows operating systems However, we argue that 2003 marks a decisive turning point in the business model through the integration of two new technological platforms, the iPod and the iTunes Music store (iTMS). By controlling the interface between its hardware and content, Apple was able to gain complete control of the multi-channel platform and realize the first opportunity to truly ‘own the consumer’.
Apple combines the low-cost manufacture and assembly model of many electronics companies with a luxury brand marketing and pricing strategy. This might be unique among most large consumer electronics companies, but it is widely used in the clothing and footwear industry. The Louis Vuitton Moet Hennessey group (LVMH) manufactures the majority of its goods in low-cost locations and subsequently ships them to large department and boutique stores in developed markets. The advent of the luxury brand no longer is an exclusive claim to craftsmanship or manufacturing quality. Instead, luxury brands, such as Apple and Louis Vuitton, are designed to showcase the brand lifestyle, establish the brand image, and present the product in a stylized shopping environment that makes consumers feel more comfortable paying luxury prices .
In many respects, this efficiency-based supply chain strategy is a woefully out-dated aspect of Apple's business model. In the 1980s, outsourcing manufacturing and assembly to the developing world to exploit low labor and material costs was seen as the primary way to gain efficiencies in the supply chain. These assumptions fomented during the long period of global economic stability with low commodity prices (oil and food) and comparatively inexpensive labor as the norm. However, created a volatility index to show that 2008 was as a turning point where the world left an almost 30-year period of relative stability and entered an era of global turbulence where several indicators such as oil prices, stock market bubbles, political instability and terrorism, were all elevated in tandem. They argue that the “conventional wisdom” in supply chain management needs radical re-thinking and call for a move to flexible supply chain solutions. It can be argued then that to adapt to commodity price fluctuations, environmental changes and geo-political issues, business models need to embrace the concept of end-to-end supply chain flexibility, not simply a reliance on flexible suppliers, as is the case with Apple. This means manufacturing and assembly now need to be closer to the end consumer to reduce the risk
The key to Apple's content supply chain is controlling how content is used and transferred. Content is crucial because it inscribes profitability to hardware devices and creates an Apple ecosystem that, together, imposes high costs on consumers attempting to leave. The first element of the content supply chain is the in-house production of the operating system and software for Apple products. For example, by 2005 OS X based products (the operating system that runs exclusively on Mac computers) accounted for nearly half of Apple's profits. By 2010, OS X products made up 22 percent of total margin, whereas Apple's new iOS (iPhone Operating System) was responsible for approximately 70 percent of Apple's gross profits, and by 2010, 92 percent of Apple's profits were generated from platform-based products \. The iPod/iTunes platform simply perfected the integrated multi-channel platform by incorporating revenue streams from media content. This was initially accomplished through strict licensing agreements with major record labels such as EMI, Sony and Universal to secure access to thousands of titles. Apple maintained control over key elements of the iPod, particularly the user interface and the interfaces between the iPod, iTunes software, and the online iTunes Music Store (iTMS). The highly specialized iTunes client software was developed internally to inhibit connectivity with other software platforms while also reducing costs on licensing or royalty fees.
Table of Contents
Introduction 1
Being Aware Phase 1
Engaging Phase 1
Site Map 2
Execution of HSM Analysis 3
Stage 1 4
Stage 2 4
Stage 3 4
Stage 4 4
Stage 5 4
Stage 6 5
Stage 7 5
Stage 8 6
Tutor’s Report 6
Conclusion 6
Recommendation 7
Bibliography 7
Tutor Report
1
Introduction
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company's hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smart watch, the Apple TV digital media player, and the Home Pod smart speaker. Apple's software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the I Life and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro, Logic Pro, and X code. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and I Cloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer. It was incorporated as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple II, grew quickly. Within a few years, Jobs and Wozniak had hired a staff of computer designers and had a production line. Apple went public in 1980 to instant financial success. Over the next few years, Apple shipped new computers featuring innovative graphical user interfaces, such as the original Macintosh in 1984, and Apple's marketing commercials for its products received widespread critical acclaim. However, the high price tag of its products and limited software titles caused problems, as did power struggles between executives at the company. In 1985, Wozniak stepped away from Apple, while Jobs resigned and founded a new company — neXT — with former Apple employees. (Wikipedia )
Being Aware Phase
At the end of 1989, Jean-Louis Gassée's "high-right" strategy, which had generated Apple tremendous profits through the late 1980s, had clearly been too strongly followed for too long. A decrease in profits and a 20 percent fall in stock price in the usually busy Christmas fiscal quarter seemed to signal a need for change. In January 1990, Gassée resigned and his authority over product development was divided by several successors.
Engaging Phase
The Apple launch Macintosh "look and feel," narrowing by an arguable amount Apple's lead in accessibility. Meanwhile, the Snow White language that had helped manifest Apple's technology was infused into the standard physical form even while it was filtering down to PC manufacturers. Snow White details were increasingly appearing on PCs, unsurprisingly since Apple had so long gained unique attention for its industrial design, inside front cover; zero-draft case used on an IBM computer as seen in
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an ad in Byte,). As Apple's products became less differentiated, their perceived value lowered. In late 1989, it first became clear that they would not prosper long selling almost exclusively expensive computers with nearly unchanging physical designs.
System Map
3
Execution of HSM Analysis
Stage 1
The apple top management person Gassée's resign, Apple's product line included three aging Apple II models sold as consumer products. The apple slightly upgraded version of the IIc, would be discontinued later that year. The ipad would be sold until the end of 1992, and the venerable remain a few months longer, but the Apple II technology had clearly been surpassed. Among the Macintosh products, there were the Plus, SE, SE/30, IIx, IIcx, and IIci. The most expensive and powerful Macintosh yet, the IIfx was to appear that March. Of these machines, only the Macintosh Plus was affordable to most consumers, selling for about $2000. (Gassée, 1989)
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Stage 2
Fortunately for Apple, several ideas for inexpensive Macs were already being explored by engineers. In October 1990, three of these emerged as realized products, replacing the Plus, SE, and IIx in an unprecedented sudden shift. Apple's 1990 Annual Report emphasized that a "exciting new chapter in the history of Apple Computer" was signaled by these new products.
Stage 3
Equipping employees with innovative solutions, like user-friendly interfaces and effective distribution systems is essential to developing their competencies. However, many Apple leaders believe measuring the impact these solutions have is a complex task. In the long run, this American tech company will be issuing out quantitative measurements to find out the answers they need and see if enabling employees in this fashion leads to nurturing their skillsets. (Tudorache, 2017)
Stage 4
The exploding chargers in this case were not manufactured by Apple or by any of its authorized partners. It would have been easy to highlight the fact that the chargers were malfunctioning because they were shoddy knock offs. But with two accidents fresh in the public consciousness, a high-handed dissociation with the issue might have backfired with questions being raised about whether Apple’s pricing strategy was the reason for people taking safety risks with cheaper fakes. With the well timed take-back offer, Apple established itself as a concerned corporate willing to make its products available and accessible for the public. (Sachdev, 2013)
Stage 5
Apple shifted its own consumer iLife and iWork suites to digital downloads, eventually adding its entire lineup of Pro Apps to the store as well, from Aperture to Final Cut, Motion, Compressor, Logic Pro and MainStage. Apple also made available its Remote Desktop package, as well as the new FaceTime for Mac. The company's biggest release, however, was Mac OS X Lion, which shipped in July as the first digital download of a commercial PC operating system.
Apple also released Mac OS X Server as a $50 App Store download, a radically simplified version of the package that formerly sold for $500. (Dilger, 2011)
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Stage 6
As best of my knowledge following findings have been made.
In conclusion, it is maintained that Apple ought to better communicate and acknowledge its company values, strengthen active and transparent communication with its publics and further improve conditions in all Apple working environments.
By making Apple employees and the general public more aware of Apple‘s
company values, perhaps through a newsletter or website, the organization will demonstrate social responsibility and appeal to consumers who deeply value a company that evidently practices for the greater good of its people and its surrounding world. Active communication not only strengthens relationships, but also it can foster the development of new, beneficial relationships in which Apple, its employees and consumers may all utilize in the future, such as consumer loyalty and desired feedback. Lastly, as Apple improves its working conditions, it may use this situation to generate positive publicity for the organization and, most importantly, the issue of human working rights in general. In turn, this allows Apple to further demonstrate social responsibility and generate conversation about the company that can later be steered in any direction the company should favor. (SophieGeguchadze)
Stage 7
Apple present study employed a qualitative news content analysis, using the method of descriptive framing analysis of major newspapers and television news. News coverage is an informative source for identifying a crisis and following the details of its progress because, in a crisis situation, journalists try to unfold the cases through ample investigation and organizations actively utilize news media to communicate with its diverse publics. It also provides comprehensive and chronological explanations of the events as public records of history. Thus, news coverage is one of the most accessible and efficient tools for researchers to identify an organization’s stances and strategies as well as notable factors surrounding a crisis situation. (Chang Dae Ham, 2012)
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Stage 8
Regarding effective Execution Apple management take several steps which are following
1. Deliver all information promised to stakeholders as soon as that information is known. 2. Keep stakeholders updated on the progression of recovery efforts including any corrective measures being taken and the progress of investigations. 3. Analyze the crisis management effort for lessons and integrate those lessons in to the organization’s crisis management system. 4. Scan the Internet channels for online memorials. 5. Consult with victims and their families to determine the organization’s role in any anniversary events or memorials.
Client Report
Conclusion It is difficult to distill all that is known about crisis management into one, concise entry. I have tried to identify the best practices and lessons created by crisis management researchers and analysts. While crises begin as a negative/threat, effective crisis management can minimize the damage and in some case allow an organization to emerge stronger than before the crisis. However, crises are not the ideal way to improve an organization. Because no organization is immune from a crisis so all must do their best to prepare for one. This entry provides a revised set of ideas that can be incorporated into an effective crisis management program. At the end of this revised entry is an updated annotated bibliography. The annotated bibliography provides short summaries of key writings in crisis management highlighting. Each entry identifies the main topics found in that entry and provides citations to help you locate those sources. Apple Computer Company is arguably one of the most innovative technology companies to emerge in the last three decades. Apple, Inc. is responsible for bringing to market such products as the Macintosh desktop and the portable computer, iPod and iTunes, and most recently, the iPhone. The success of the company can be traced to the ingenuity of their founder and CEO, Steven Jobs. His philosophy has always been to create products that consumers find easy to use and integrate innovative technology. Throughout Apple’s history it has accomplishedthese goals. However, with a growing line of products, a competitive market landscape, and an unpredictable technology lifecycle curve, the company faces challenges as to the direction of its
product lines. The case gives an overview of a tool that is used to analyze a company’s product line portfolio and applies it to Apple, Inc.’s array of products. Questions for discussion are provided to enable students to use critical thinking skills in applying the case material.
Project Log
Weekly Work Summary
Date: 1-11-2018
To: Norah Amajid
From: 22-11-2018
Subject: Summary of My Activities during the Previous Week
Project Log
The Weekly Summary
Works Cited Chang Dae Ham, P. (2012). Same Crisis, Different Responses: Case Studies of How Multiple Competing Corporations Responded to the Same Explosion-Related Crises . USA: International Journal of Business and Social Science . Collins, R. (2009). Corporate Communication Case Study. Dilger, D. E. (2011, Dec). nside Apple's : Steve Jobs' achievements, battles and crises. Gassée, J.-L. (1989). Crisis at Apple. Sachdev, R. (2013, Aug 22). Crisis Management – A lesson from Apple. 'saher, B. (1993). Pepsi case. SophieGeguchadze. (n.d.). Apple Inc. Public Relations Crisis. SCRIBD. Tudorache, A. (2017, April). Balanced Scorecard. How Apple uses the Balanced Scorecard. Wikipedia . (n.d.). Retrieved from Wikipedia : https://en.wikipedia.org/wiki/Apple_Inc.
