Arab Academy For Science And Technology

The Improvement in Performance in Apple

Company Due To Implementation of Quality
Management System

Submitted by: KHALED FOUAD ATTYA

Registration number: 19225192
E-mail: KHALEDFOUADATTEYA@GMAIL.COM
Date of submission: 13/8/2022

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Abstract

Most of you keep up with Apple leaks on a regular basis and like witnessing how the
company develops products from an initial concept to finished products that are sold
all over the world. This project examines the relationship between Apple's performance
and a company's use of Total Quality Management (TQM) techniques. One of the most
crucial management principles today is TQM, Quality management system seeks
achieving goals through planning, monitoring, assuring and improving quality. In order
to remain competitive, the management team of any successful firm must work to
continuously enhance the quality of its goods, services, and/or working conditions; this
can be done with ease using TQM tools & principles and strategic plan that must be
followed. One of the most successful corporations in the world is Apple. It has been
successful because it has used TQM principles from the beginning. In this project, the
success and quality enhancements of this company are highlighted, along with how they
relate to one another from a TQM standpoint. It examines Apple's assessment of Dr.
Deming's fourteen points and five steps for total quality. It also demonstrates how
Apple sets an example for other companies in the modern technology sector by
prioritizing quality .The main concepts that have been taken into consideration in this
report are strategies implemented by apple to improve quality and efficiency.

Keywords: Total Quality Management, Operations, Supply Chain Management,

Apple Inc., Efficiency, Quality and Strategies.

Table of contents
Title Page
1. Introduction……………………………………………………...………………… 3
1.1 Strategic Objectives………………………………………………………………..4
1.2 Globalization ……………………………………………………………………...5
2. Research Method……………………………………………………………………7
3. APPLE core process………………….……………………………………………..7
3.1 APPLE Hierarchy……………………………………………………………..…...7
3.2 Suppliers of APPLE…………………………………………………………….... 9
3.3 Apple New Product Process (ANPP)………………………………………….... 10
3.4 Process Variation…………………………………………………….…………. 12
3.5 Risk management plan………………………………………………….………..13
3.6 Customers of APPLE …………………………………………………….….,.....15
3.7 Quality Improvement Project (E-business model)……………………………….16
3.7.1 Ethical Consideration…………………………………..……………………... 17
4. Discussion and conclusion…………………………………………….…………..17
5. References...……………………………………….……………………………... 18

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1. Introduction
Many firms have been forced by the demand of globalization to priorities quality,
responsiveness, and cost as competitive tactics. Organizations are obliged to regularly
review their processes and strive to provide high-quality products in order to maintain
operations and achieve client satisfaction.
Private, public, large, and small companies can all employ quality management tools
and procedures. Additionally, businesses that provide services and manufacture goods
fall under this category. Because both small and large businesses are vulnerable to
changes in the market, quality management is crucial for both sizes of businesses. These
businesses likewise depend on a sizable consumer base to survive. As a result, losing
clients could lead to a company's demise. Foreign companies are a direct competitor of
both small and large corporations. This implies that in order for these businesses to be
competitive, they must recognize the value of using quality management techniques.
Quality control violations would result in a fall in market performance and a
corresponding decrease in client base.
To implement quality procedures in their systems, various firms employ a variety of
quality control strategies. Using this form of control can also help to lower variability.
Pareto analysis, flow charts, cause and effect diagrams, SPC charts, histograms, check
sheets, and scatter diagrams are a few examples of quality management tools and
techniques that organizations use to regulate process or product quality. This report's
major goal is to explain how Apple Inc. uses some quality management tools and
techniques while also identifying the criteria used to choose a particular quality control
method. The project presents the justifications for using the specified quality control
tools and methodologies in addition to the difficulties encountered during
implementation. There are many similarities between Apple's approach to business and
product design and Deming's five phases and fourteen points, even though Apple may
not have implemented all of them. Customers are immersed in a "customer first"
experience the instant they step foot inside Apple's retail space. When it comes to the
current technology industry, Apple's retail stores' products and services are probably
the gold standard. Their designs have undergone constant improvement thanks to their
unceasing efforts to improve upon the previous generation and their commitment to
leading edge research and development. The goal of Apple's research and design teams
is to give customers the best possible product experiences. In our contemporary society,
it is uncommon for us not to have an Apple-designed item in our homes, offices, or
classrooms. Whether they knew it or not, Apple's approach to Total Quality
Management (TQM) has contributed to their success. This project's objective is to look
into how TQM is used in Apple's management structure. It focuses on identifying the
factors that have contributed to this company's management methodology's success.

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1.1 Strategic objectives
Product differentiation may be a category that describes Apple's business approach.
The Multinational technology corporation specifically distinguishes its goods and
services by their cutting-edge functionality and simple yet attractive appearance.
The four components of Apple's business strategy are as follows:
1. concentrate to the product's design and usefulness.
Apple has used cutting-edge features and capabilities of its goods and services
because the cornerstones of its competitive advantage, in accordance with its business
strategy. The iPad was the primary device of its kind to store thousands of songs with
a straightforward shuffle capability through songs, the Macintosh was the primary
computer to use a graphical computer program, and therefore the iMac "ripped up the
pc design book, doing away with dull beige boxes and replacing them with fun,
translucent machines in shades like "Bondi Blue" Another aspect of Apple's
competitive advantage is first mover advantage. It must be acknowledged that
maintaining Apple's competitive advantage over the future could also be difficult.
Specifically, the management could let down in securing the inclusion of cutting-edge
features and capabilities in subsequent iterations of its products, jeopardizing its
competitive advantage.
2. Improving the client experience.
One of the cornerstones of Apple's business strategy is its emphasis on the customer
experience. It isn't uncommon for Apple enthusiasts to record themselves opening
new Apple products and publish the video to YouTube. This happens as a results
of the business' success in developing a consumer experience that goes beyond merely
buying a product. For instance, it's really simple to start out utilizing any Apple
gadget. Customers open the box, plug it in, activate the merchandise, and start using
it. Nothing must be downloaded or installed. Over 500 Apple Stores in 25 countries
and regions provide customers with a positive shopping experience by allowing
them to check out items and acquire answers from knowledgeable personnel.
3. Enhancing the environment around Apple.
Because Apple has advanced knowledge in software, hardware, and services
all directly, its corporate approach can be described as vertically integrated. One in
all the key elements that distinguishes Apple from its rivals is its consolidation. The
business has reaped enormous benefits from its consolidation. Specifically, Apple's
ecosystem, which is created possible by such integration, could be a significant source
of its competitive advantage. Apple apps and devices sync effortlessly and
performance nicely together. There's little change in user interfaces between
applications that run simultaneously on different Apple devices. However, the
identical products don't complement those made by other companies, producing the
impression of a closed market. The ecosystem of Apple makes moving to the
competitors costlier for its users.
4. The company's decreasing reliance on iPhone sales.
The focus of Apple's business strategy is shifting removed from counting on iPhone
sales and toward its services company and other divisions. Angela Ahrendts, the
company's head of retail, quit, while Bill Stasior was demoted to the position of head
of Siri. John Giannandrea has been promoted to a machine learning and AI post.
These prominent changes that occurred in but three months are a blatant sign that the

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corporation is specializing in services and other business divisions so as to reduce its
reliance on the selling of iPhones. It's significant to emphasize that these and other
initiatives are yielding fruit. For instance, in 2020, Apple's services business division
produced record revenues of USD 53, 77 billion. A rise of 16% compared to the
previous year.

1.2 Globalization

With the development of technology, Apple has entered new markets around the world
and generated profits and sales never before seen. A corporation must stay ahead of the
curve in the current business environment by keeping up with technological
advancements, as well as by continuously looking for new methods to remain
competitive and satisfy customer demands. The worldwide market may be accessed in
a variety of ways using a variety of different methods, and Apple's simultaneous use of
several strategies has allowed it to thrive despite the world economy's recovery. Apple
often didn't go somewhere else for the manufacturers of its products, however had
largely shifted to foreign manufacture by 2004. Apple uses a variety of techniques,
including overseas outsourcing, foreign importing, foreign exporting, foreign licensing,
and foreign direct investment, to increase its market share worldwide. Products like the
iPad can now be produced at lower costs thanks to foreign outsourcing and importation,
which allows them to be sold for $499 rather than $14,970. Apple's iconic Macintosh
computers have historically not sold well outside of the United States, partly because
of the devices' higher pricing and restricted availability. The iconic iPhone, which
Apple first released in 2007, marked the zenith of the offshore production trend. There
are hundreds of components in every iPhone, and 90 percent of them are made outside
of the United States. Germany and Taiwan produce advanced semiconductors, Korea
and Japan memory, Korea and Taiwan display panels and circuitry, Europe chipsets,
and Africa and Asia rare metals. The Taiwanese multinational corporation Foxconn,
Apple's main subcontractor, completes final assembly in China. Apple continues to
employ 43,000 people in the US, and it has kept key functions like product design,
software engineering, and marketing domestic. In addition, Apple asserts that its
operations sustain another 254,000 manufacturing, engineering, and transportation jobs
in the country. As an illustration, the glass for the iPhone is produced at Corning's
American facilities in Kentucky and New York. However, 700,000 more people are
employed by subcontractors like Foxconn to complete the engineering, construction,
and final assembly of its goods outside of the United States. The release of the iPhone4
marked Apple's biggest commercial success worldwide. It was introduced in 88 nations,
which was a far lesser delay than the last U.S. release. "The change demonstrates how
crucial overseas sales have become for Apple, which previously struggled to establish
itself as a major participant in the world market. Tim Cook, Apple's chief operating
officer, stated on the quarterly earnings call that iPhone sales were experiencing robust
triple-digit growth in Europe and Asia despite the fact that Apple does not break out
sales for specific products by geographic location. The "fastest international roll out"
for iPhone, according to Apple. Apple has put in place a Supplier Code of Conduct as
a direct derivative of its business dealings with foreign entities. Apple is currently
concentrating on expanding globally through China. China is a developing market for

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Apple not just because of the affordable labor but also because it has a robust economy
and the world's largest population. This may lead to China overtaking the rest of the
globe as the largest market. The iPad, iPhone, and other Apple devices are produced in
China by Foxconn, a $61 billion business. In 2007, Steve Jobs insisted that the plastic
screen of his prototype iPhone be replaced with a glass one. At the time, plastic screens
were the norm in the industry, but Jobs didn't like the way they felt or looked, and he
also didn't like how easily they scratched, the largest producer of electronic components
worldwide, according to Reuters, is Foxconn. Google, Research in Motion, Microsoft,
and Hewlett Packard are among Apple's top rivals. Due to their shared business, Apple's
rivals participate in the majority, if not all, of the same international markets. They
utilize a lot of them because they are competitors in the provision of goods and/or
components by producers and suppliers. The fact that Apple develops its own hardware,
software, and operating system sets it distinct from competitors in the industry. Due of
economic disparities, Apple has previously encountered difficulties to international
trading with India. Apple had planned to establish a technical support facility in
Bangalore in 2006, but the company decided it wouldn't be financially viable. Apple
overcome the difficulty by utilizing other support facilities in less expensive regions. .
This last-minute modification to the iPhone's design jeopardized the company's planned
launch date. Although Apple had chosen Corning to produce big sheets of reinforced
glass, it was difficult to locate a supplier that could cut those sheets into millions of
iPhone screens. Then a Chinese factory submitted a bid. The proprietors of the business
were already building a new wing to cut the glass and setting up equipment when the
Apple team arrived at the facility. The manager explained, "This is in case you grant us
the contract." The factory also has a team of engineers accessible to collaborate with
Apple, as well as a warehouse full of glass samples. They had created dorms close to
the workplace. Might run three shifts seven days a week in order to satisfy Apple’s tight
production schedule. The bid was accepted by the Chinese firm
It was far simpler to hire engineers in China, which was a crucial benefit for Apple.
Apple estimated that in order to supervise and direct the 200,000 assembly-line workers
engaged in producing the iPhone, there would be a need for around 8,700 industrial
engineers. Finding that many engineers in the United States would take up to nine
months, according to the company's estimate. It took 15 days in China. The grouping
of factories in China is also significant. The Foxconn assembly plant is near to many of
the factories that produce the iPhone's parts. The entirety of the supply chain is in China,
as one executive observed. You require 1,000 rubber gaskets, right? The factory next
door is that one. One billion screws are required? What's a block away from that
factory? You require a screw that is somewhat different. Three hours are required for
that. Despite all of this, there are disadvantages to outsourcing to China. Several of
Apple's suppliers have come under fire for having subpar working conditions. Low
compensation for line employees, long hours, required overtime for little to no
additional pay, and poor safety records are some of the criticisms. According to some
former Apple executives, there is an unresolved conflict within the organization.
Executives want to improve working conditions in the factories of subcontractors like
Foxconn, but their commitment wavers when it interferes with vital supplier
relationships or the prompt release of new products

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2. Research Method
To prepare this report, articles were used to gather information and different websites
about quality management processes, E-business and information gathering. The
internet was searched for information and reports that discuss the same topics as our
report. Some other data were collected from papers and Quality institute lectures.
The report data were collected from 2th august, 2022- 13th august, 2022.
3. Apple Core Process
3.1 Apple Hierarchy
Hierarchical and functional best define people's organizational structure. The late
Steve Jobs, the company's creator and previous CEO, created such a structure to
guarantee the focused implementation of his creative ideas and distinct commercial
vision. Since Tim Cook took the position of CEO in August 2011, changes have been
made to the Apple organizational structure. To specifically promote innovation and
creativity at various levels, Mr. Cook supported the decentralization of decision-
making to some extent. However, the structure continues to be primarily hierarchical.

The format of Apple's organizational structure at the moment is shown in the figure
below :

Figure 1. Apple Hierarchy

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Apple is split into focused divisions. Each division has their own upper management
and vice presidents. As an example, this suggests that Apple contains a senior VP for
Operations, one for Hardware Engineering and one for Machine Learning. Every
choice made by Steve Jobs had to travel via him. Every single strategic choice that
might have an impression on the corporate was made by Jobs. Tim Cook, who
succeeded Job after his resignation and death in late 2011, overhauled the business,
modifying its hierarchical data structure as a part of this process. As a result, Apple's
VPs now have more freedom, which was severely constrained by Jobs.
Apple employs a company structure noted as a "functional organization." this
means that the business is structured on functional areas of competence instead
of specific goods. The things themselves are subsequently developed by specialists
from various fields.
The organizational chart at Apple is efficient.as apple encompasses a strong sense of
corporate control because of the hierarchy system they've created within their
organization, which is targeted on competence. Since each business has sufficient
latitude to control to its full potential, Apple has consistently produced products that
are market leaders. Every employee at Apple incorporates a specialized function with
specialized duties because their firm divisions are founded by competence instead
of by product. Every single employee is functioning within the position that matches
their abilities the most effective. They're therefore capable of developing really
integrated products with top-notch user experiences, something Tim Cook has always
been happy with.
Quality management system and its importance within the organization:
1. Well defined and documented procedures improve the consistency of
output. Meaning that each one processes (or only those processes which demand
standard) in an exceedingly company are described in a very clear and
simple understandable way for all employees which ends up in the most idea of this
standard to try to all things right initially time.
2. Quality is consistently measured. That offers information to the
highest management whether all processes are running because it was defined and it
also gives information about deviations from mean.
3. Procedures ensure corrective action is taken whenever defects occur. As mentioned
before, constant measures give operative information about defects and so companies
can take all the required corrective actions and also by analyzing causes, define
preventive actions.
4. Quality management” ensures superior quality products and services. Quality of a
product will be measured in terms of performance, reliability and sturdiness.
Quality may be a crucial parameter which differentiates a company from its
competitors
5. Quality management is important for customer satisfaction which eventually ends
up in customer loyalty. How does one think businesses run? Do businesses thrive only
on new customers? It's important for each business to possess some loyal
customers. You would like to own some customers who would come to your
organization irrespective of what.
6. Quality Management ensures increased revenues and better productivity for the
organization. Remember, if a corporation is earning, employees also are earning

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7. Quality management helps organizations to scale back waste and inventory. It
enables employees to figure closely with suppliers and incorporate “Just in Time”
Philosophy.

3.2 suppliers of Apple

Good purchasing practices are a serious a part of any business success, and few
factors are as vital in ensuring sound purchasing methodologies because the selection
of quality suppliers. Indeed, finding good suppliers and maintaining strong relations
with them are often a great tool within the look for business success and expansion. In
fact, a business can only be nearly nearly as good as are the suppliers with whom it
works. Suppliers provide the materials an organization uses to provide its own
services. Suppliers provide the transportation of these materials. Suppliers provide an
organization with the services it uses in providing service to its customer. Without a
powerful relationship with its suppliers, a corporation cannot offer its own customers
a consistently prim quality service.

Figure 2. Supply chain process chart

Supply chain relations:

One of the simplest supply networks within the world is reputedly maintained by
Apple. Apple doesn't rely upon its own manufacturing alone. It's over 200 suppliers
that it relies on for procuring components for assembly. The digital giant is in a
position to demand high-quality products and impose harsher terms on its
suppliers because of the stature and worldwide reach that include it. For example,
when one among Apple's Chinese vendors for the iPhone 7's "tactic engines" proved
faulty, the corporate swiftly acquired them from the Japanese business Nidec Corp.
There are many providers like these who are able to follow the principles imposed by
Apple. Additionally, by outsourcing its supply-chain and assembly processes, Apple
is absolve to specialize in creating fantastic products with extensive functionality and
straightforward user interfaces, which is what it does best. On the opposite hand,
having a supplier company linked with a reputation like Apple is an

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incredible advantage. Even larger companies, like Samsung, profit of the
arrangement, other than the small, inexperienced businesses that will get the bulk of
their sales from Apple. As previously said, Samsung and Apple still fight within
the portable market. However, because of significant orders from Apple, Samsung is
ready to boost bulk production, which lowers the value of manufacturing its
own portable parts. Apple's reputation for innovation is another benefit for suppliers.
People expect Apple to release new goods frequently and excitedly foresee to
them, irrespective of how certain items have performed or despite errors that have
occurred. This protects Apple's suppliers to some extent because there'll always be a
necessity for his or her products and services. However, it should be remembered that
failing to persuade Apple could spell disaster for tiny low or medium-sized supplier
whose operations are supported the sale of Apple products. Apple is in an
exceedingly position to modify suppliers if they cannot consistently deliver high-
quality products at a good price. Both vendors and Apple are dependent on one other.
It's a straightforward connection that frequently benefits both parties, however
occasionally it can lead to conflict. Suppliers are heavily impacted by Apple and the
state of the market as a whole. Market analysts routinely predict sales for Apple
products using financial data from supplier firms, and investors frequently turn to
Apple's underlying suppliers for information on the company's performance as well as
more specific investment options independently.
All of the suppliers know that apple is not just one time customer, it is a loyal customer
that will keep dealing with them as they are providing product with a good quality.
Therefore, they are putting apple on the top of the list of the deals even at the year when
Covid-19 prohibited most of the deals apple worked with its full capacity and power as
the suppliers was trusted to complete their agreement despite all of the barriers.

3.3 Apple New Product Process (ANPP)

Designing the Product Comes First, Apple is distinctive in that design is one of its top
priorities. In the majority of businesses, engineers develop a product first, and once it
satisfies all technical specifications, it is delivered to the design team, who creates its
design using the engineers' work as a guide.But Apple takes the complete opposite
approach.A team creates a design that satisfies Apple's requirements, and then that
design is sent to the engineers so they may mold the technology to suit the mold.As a
result, Apple frequently has delays or delivers goods that aren't quite usable, like the
infamous $1,300 12-inch MacBook. The design team aimed for it to be so light and
thin that Engineering had to severely limit the processor in order for most users to be
unable to do tasks that a $400 PC could have likely completed.
Two accountable individuals are hired to see a product through to completion once
production has started. The global supply manager (GSM) and the engineering
programme manager (EPM). The former is so powerful and in complete control of the
production process that it is known as the "EPM mafia." Executives that oversee
manufacturing in China for the majority of the time have both of these
responsibilities. Despite some conflict, the supply manager and programme manager
work together to make decisions that are "best for the product."

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This team can only report to executives and cannot discuss what they are doing.
In fact, it's so top-secret that there are specific rooms with security features like body
cameras for everyone inside or even security officers ensuring only those who are
allowed to access that room are in it. This design process is divided into numerous
stages, all of which are described in what is known among staff as the Apple New
Product Process (ANPP). The device design team has all they need right here to get to
work on the gadget. It specifies what they must design, who must design each stage,
when they must deliver the finished product, and other crucial information.
An Apple executive assesses the design the team is working on each week, generally
on Mondays, and provides feedback before eventually approving or rejecting the
design. If it doesn't pass this test, the team will note what needs to be altered and deal
with it right away following the meeting. The executive will then assess the design at
the following meeting with that team as the first step after that.
The engineering team will consider all the internal components, how they operate, and
other technical details if it is given the go light. When something is discovered to be
impractical or in need of modification, they report it to the design team, who works to
solve the problem, a second meeting is held to approve the revised design. Several
times of this back and forth are often experienced during the production of every
Apple product. Testing for engineering validity (EVT). In this phase, engineers
attempt to construct a number of prototypes to determine whether the product they
designed with the design team functions as intended or if there are issues that need to
be fixed. If it doesn't work, the prototype returns to the first stage of development to
address the issues.The Design Validation Test step is the following one (DVT).
During this stage, the company determines if it is feasible to mass-produce the gadget
while maintaining the original design and ensuring that all internal components
function properly. The Product Validation Test comes last (PVT). Here, what was
initially put to the test during the DVT phase is expanded upon and further validated,
about 10% of all gadgets sold are represented by this.

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Product Apple Check the ability to
design executive produce the design
reviews

Send to design NO Is it approved by

team the executives?

YES Sent to engineers

Engineering
validation test
(EVT)
Design validation
test (DVT)

Product validation
test (PVT)

Return to the Everything is ok The product sold to

previous step NO and no problems customer

Figure 3. Apple new product process flowchart

3.4 Process Variation
When a process deviates from a chosen pattern, process variation occurs. It is the
main reason for quality problems in the production process. The majority of variances
in the new production process at Apple can be attributed to assignable causes. Apple
Inc. makes use of a variety of quality control procedures and instruments to guarantee
the superior quality of its goods. Some of the quality management tools and
techniques employed by the business include SPC charts and flowcharts. The control
charts are used by Apple to determine if a certain process is in control. The company
can predict projected performance with the aid of this information. If the business
discovers that the process is not working as it should, it responds by examining the
control chart to identify the source of the variance. By enabling large modifications,
this makes it simple to bring the process under control.
All of these variations comes from sources outside of the system and can be
monitored by using a control charts that prepared from the collected and analyzed
data. By using these charts the responsible person will be able to monitor the error and
identify the root cause of the variation.

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The points that are beyond the upper and lower controls are out of control.
In the following figures, the control charts show the improvement (Statistical process
control chart to detect assignable causes)

Figure 4. Out of limits control chart

Figure 5. Within limits control chart

3.5 Risk Management plan
Life is unpredictable, and procedures are particular, intricate, founded on
presumptions, and carried out by individuals. Processes are thus vulnerable to a wide
range of uncertainties, or risks and opportunities, which may have an impact on the
process and the goals of the business.Apple uses risk-based thinking to examine the
risks while designing procedures, controls, and enhancements in the quality
management system in order to handle any uncertainties.It's crucial to remember that
risk doesn't just refer to dangers.Apple also employs risk-based thinking to identify
possibilities, which show risk's advantageous side.
A SWOT analysis was made to determine strengths, weakness, opportunities &
threats to put an action plan to deal with them.

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Issue strength weakness opport threats
unity

The instability of some of our markets ✔

loss of a key supplier ✔

capability to produce many types of products ✔

strong relationship with our customers ✔

the acquisition of competitors of a big market share ✔

Threats: The top management unit of this firm must have effective strategies for
dealing with these two categories of threats. (Internal and external)

External: The primary threat to Apple Inc. in the current global market is fierce
competition. Because of the majority of the items that both companies offer that are
similar, Samsung is currently the main competitor that Apple Inc. has to contend with
in the market. Among the many other businesses that compete in the industry are
Google, Microsoft, HP, Dell, and Toshiba. The capacity of this company to succeed as
it attempts to increase its market share can be defined in part by how well it manages
the fierce market rivalry. Other rising businesses with comparable items on the market
include Tecno and Huawei. Since some of these businesses might think about entering
the American and European markets, the rivalry is likely to get more intense soon.
Internal :The management of this organization must be aware that some hazards may
arise from its internal activities as it attempts to combat external threats. The loss of a
highly skilled employees to competitors in the market is one of the biggest internal
dangers this company currently confronts. Although the company has a very low
employee turnover rate, it has lost a number of bright workers to leading technological
companies like Google Inc. and Microsoft Corporation. It takes a lot of time and money
to train staff and provide them the essential experience.
Calculation of Risk and Risk Threshold: Risks have varied degrees of impact on this
company's regular business operations. Determine their importance and how urgently
management needs to concentrate on addressing them by calculating the risk threshold.
Using a scale of 1 to 5 to rate the threats (where 1 means least consequential and 5 mean
most consequential)

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Apple put into consideration all these risks and opportunities and deal with them by
elimination or reduction for risks and improvement for opportunities.

3.6 Customers of Apple

It is estimated to cost between 5 and 10 times more to amass new customers than to
retain existing ones. So as for an organization to retain their customers they have to
cultivate loyalty because it is that the simplest way of preventing switching behavior
(Three key drivers of loyalty are “product superiority, personal fortitude (depth of
one’s involvement and interest), and social bonding”. Apple leverage each of those
factors – particularly product superiority and private fortitude).
Apple has frequently ranked first in surveys measuring customer satisfaction in recent
years. This is often partly because Apple relies on user feedback to innovate and
improve its products. So as to carve a road toward becoming a world tech leader, the
corporation has over the years used variety of consumer input tactics, including, yes,
marketing research. Customers are constantly reminded that "Apple appreciates your
opinion on its products".
Apple has found that feedback questionnaires are a very effective tool to find out
about its customers. After a customer makes an acquisition, the corporation sends
them surveys through email. Customers are asked to rate their degree of satisfaction
and likelihood of constructing another purchase. As a results of the surveys being
issued instantly after a buying deal, Apple is in a position to assemble prompt, precise
feedback from customers while the transaction remains fresh in their minds.
An especially important metric for Apple is that the Net Promoter Score, which the
corporate has long relied on. Feedback surveys include an embedded Net Promoter
Score question, together with an open-ended follow up question: “Anything else on
your mind?” additionally, Apple retail stores ask customers at point-of-transaction to
rate their in-store experience.
Most recently, Apple has collected NPS responses to live customer satisfaction with
its new Apple Watch. NPS research has provided the corporate with valuable insights
into its latest product. “Market research…measured a 97 percent customer satisfaction
rate for Apple Watch and that we hear from people on a daily basis about the impact
it’s having on their health, their daily routines and the way they convey,” said CEO
Tim Cook during a recent Apple statement. Because of NPS research, the corporate
could see that, barely three months after the initial launch, its new product was a
success with the general public
There are 4 techniques for building brand loyalty:
Expert customer service, individual product offerings, personal interactions
And added product or service benefits
Given their size as a worldwide technology behemoth, Apple is unable to supply each
of their client's personalized service, specialized products, and in-person encounters.
They do, however, provide Apple Stores and Genius Bars that supply some level of

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one-on-one connection and client assistance. This can be strengthened by the
disclosing of "town squares," which shows how seriously they're treating
interpersonal communication.
Additionally, they consistently meet the necessities for product benefits. Although
they do not always adopt cutting-edge technology first, they need a robust journal of
successfully introducing new features and products. Apple continuously lives up to its
brand promise of manufacturing the most effective high-end consumer technology
goods.
An essential component of fitting place a successful quality management system is
customer centricity.
Customer-focused firms must make sure that they're ready to more effectively identify
and reply to fundamental customer needs through quality management and its
requirement for continuous improvement. Companies should recognize all current and
potential customer needs, satisfy customer requirements, and work to exceed
customer expectations by implementing total quality management processes
throughout the whole organization. Companies are enthusiastic about their customers
for his or her existence and well-being.
1-Understanding client requirements and expectations is important to achieving
customer satisfaction and retaining consumers. Good and open communication is
required whenever addressing customers.
2-Explaining these requirements and expectations across the organization; the aim is
to satisfy customers in order that any updates, grievances, or ideas that concern the
customer are shared directly with the departments in responsibility throughout the
complete organization.
3-Customer partnership: so as to realize their trust and loyalty, a number of our
customers transformed into partners. As a result, they're informed of great
developments and decisions, and infrequently they even participate in them

3.7 Quality Improvement Project (E-business model)

The most important business prospects based on the industrial environment, including
the market for on-demand digital content, which affect corporate organizations'
strategic direction:
Expansion of the distribution network to reach a larger market for consumer electronics,
Enhanced and aggressive marketing efforts to increase sales volumes in response to
high demand, Creation of new consumer electronics and web service product lines.
Apple Inc. has the chance to broaden its network of distributors. This possibility
stems from the company's products, which include tablets and cellphones, having a
weak distribution.and the requirement to alter the distribution plan of the
technological company. Apple can extend its consumer base on the global market

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with the aid of a larger distribution network. In light of this, the business has the
chance to boost sales through aggressive promotion, particularly for mobile products.
The PESTLE analysis of Apple Inc. demonstrates how this opportunity is related to
the significant demand for mobile access. The business also has the chance to
investigate brand-new product categories to enhance current ones, including internet
services. With more innovation, the company may create and market new goods
similar to those it now offers Apple Watch has already made this possible. Creating
new product lines helps a company grow, especially when competing internationally
with other technological companies.
Also an example of E-business model is to make a site that is responsible for the
exchange of the old mobile with the new ones only by paying the difference between 2
mobiles in the Middle East and on the official site.
3.7.1 Ethical Consideration
When conducting human affairs, one should adhere to a set of norms and concepts
known as ethical consideration. Everyone is prevented from acting in a way that is
detrimental to society or an individual by the ethical considerations. It prevents
individuals from engaging in violent behavior.
4. Discussion and conclusion
Apple has a strategic plan in place to raise the caliber of its goods, and it monitors both
employee and supplier performance to determine how, if an unanticipated issue arises,
it will be resolved as quickly as feasible.Improvements in employee professionalism,
process monitoring quality, supplier selection criteria, management system quality,
material quality, and the design of regulations and procedures are other approaches to
increase the effectiveness and quality of Apple's system.Finally, in addition to the above
points, Apple should think about a strategy to maintain positive relationships with its
clients, suppliers, and staff. Applying the quality management system would benefit
firms much. In this market, listening to client requirements is crucial owing to fierce
rivalry and rapid changes in consumer demands and expectations. Knowing what your
competitors are doing and what they are offering can help you decide what to do next.

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5. References
1. https://essaybizlab.com/apples-inc-quality-management-tools/
2. Berman, F. (1997), "The Apple's Project: A Status Report", Department of Computer
Science and Engineering University of California, San Diego, Vol. 1, No. 1, PP. 4 – 8

3. Fawzy, M. (2018), "total quality management & apple success", The American
Society for Engineering Management, Vol. 2, No. 3, PP. 2 – 5

4. https://business-essay.com/apple-company-enterprise-risk-management/

5. https://skeepers.io/en/blog/how-customer-feedback-surveys-helps-apple-maintains-
industry-
leadership/#:~:text=Feedback%20surveys%20have%20proven%20to,they%20are%20
to%20purchase%20again.

6. Broussard, M. (2019) Apple’s Recent Leadership Changes Suggest Transition from

iPhone Reliance to Focus on Services, Mac Rumors, and Available
at: https://www.macrumors.com/2019/02/18/apples-leadership-changes-services/
7. Podolny J.M. & Hansen, M.T. (2020) “How Apple Is Organized for
Innovation” Harvard Business Review, Available at: https://hbr.org/2020/11/how-
apple-is-organized-for-innovation

8. https://thenextweb.com/news/this-is-how-apples-top-secret-product-development-
process-works
9. Steyn, J.W., 2020. Introduction to Project Risk Management, Part 1: Planning for
project risk management.
10. Young, J. (2022), "9 Major Companies Tied to the Apple Supply Chain",
Investopedia, https://www.investopedia.com/articles/investing/090315/10-major-
companies-tied-apple-supply-chain.asp

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