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Apple sustainability related strategies and issues

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Page 1: Apple sustainability related strategies and issues

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Introduction

Page 2: Apple sustainability related strategies and issues

Nowadays, information technology becomes more popular on our life. It helps human in many

fields such as studying, working so on. Especially, it pushes our economy to new height. So it

also makes all technology companies that create and sell technology develop more and more. In

list of top technology companies, Apple is known as a strong lion on the technology market.

Apple Inc founded in 1976 by Steve Jobs and Steve Wozniak is an American multinational

corporation headquartered in Cupertino, California, that designs, develops, and sells consumer

electronics, computer software and personal computers. Its best-known hardware products are

the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet

computer. Its consumer software includes the OS X and iOS operating systems, the iTunes media

browser, the Safari web browser, and the iLife and iWork creativity and productivity suites.

Apple maintains 408 retail stores in fourteen countries as well as the online Apple Store and

iTunes Store, the latter of which is the world's largest music retailer. Apple is the largest publicly

traded corporation in the world by market capitalization, with an estimated market capitalization

of $446 billion by January, 2014

To have this great success, Apple focuses on not only innovation in manufacturing, building

reputation, expanding business market but also promoting effective management to create big

and stable supply chain over the world.

Apple sustainability related strategies and issues

With many development years, Apple built a great management system with many good

sustainability related strategies and issues.

Role of organisational behaviour

Page 3: Apple sustainability related strategies and issues

Organizational behavior is concerned especially at Apple Inc. The reason why Apple enterprise

is able to keep on developing its excellent operating and management is that Apple builds a

mature system of organizational culture, design and structure. Obviously, Apple is an enterprise

with a very strong organizational culture which makes employees recognize the shared

assumptions, values and beliefs.

Apple encourages its employees actively share their opinions and inspires, which can create an

explicit direction for employees’ assumptions, values and beliefs, and behavior. At the same

time, this corporate culture allows employees communicate and cooperate easier, and their

consensus can be reached easily.

However, only having those outstanding marco-organizational elements is not enough for this

large and global enterprise to gain more competitive advantage, as the excellent internal

management also is importantly required. Although Apple has successful advantage of quality

and numbers of employees, how to manage unavoidable conflict and motivate employees well is

a difficult problem for managers. And it has clever organizational behavior strategy. When

Apple faces internal conflict, they always want to achieve peace by deliberating on the common

points connecting the two conflicting people or groups. Specially, Apple not only uses this way

to manage conflict, but also apply the open confrontation which refers to the conflicting people

or groups are allowed to discuss frankly and confront each other unswervingly, as Apple believes

the conflicting people or groups are just aiming to help organization to gain the most profit. At

the same time, the way of motivate employees in Apple plays a key role for creating a top

employee team in the world. Apple always provides clear vision and direction for employees to

follow, so that employees can recognize what they need to do clearly.

Page 4: Apple sustainability related strategies and issues

Unlike other large enterprises, as Apple builds excellent employee relations and

communications, which are not limited by the level of employees, employees’ personal vision

and opinion can easily communicate with others. Also, Apple is an enterprise which needs so

much inspires and creative ideas, so that it need employees to keep on creating. In Apple, if you

can provide an outstanding inspire or creation no matter which level of employee you are, you

will be the hero in the company. By motivating, employees in Apple always are working in an

active and creative status.

Page 5: Apple sustainability related strategies and issues

SCENARIO

1. The Organization

Kinh Do Corporation is a business group of Vietnam with an emphasis on distribution of

imported branded snack and candy goods, and food production including baked goods,

confections, snacks and soft drinks. The Kinh Do story stars with a small family business in

1993, with a single snack product which has since grown to include 300 products under 30

brands; creating one of the most well-know and dynamic companies in Vietnam. Kinh Do’s

market leading position is a result of their strong local presence, significant distribution reach,

innovative product strategy, and high quality products. Main office of the company is located in

Ho Chi Minh City.

In 2010, Kinh Do focused more on both internal processes and business activities to be

effective and efficient. Kinh Do restructured to build a professional distribution system capable

of reaching broad regions in the country with high efficiency, enabling robust growth for the

company. Kinh Do’s corporate strategy focuses on mergers and acquisitions, efficient business

processes and well-connected distribution system. To date, Kinh Do’s distribution system has

been very convincing in its transformation, incorporating 200 best distributors, servicing 120,000

retail outlets, 30,000 ice-cream and dairy products retailers, and 30 Kinh Do Bakery stores across

the country. With 1,300-strong sales force, KinhDo is ranked among top companies which have

best distribution system in Vietnam.

As a manufacturing company, Kinh Do’s functional departments include sales,

marketing, R&D, logistics, purchasing, production, finance and accounting, HR and IT. Kinh

Do’s organization structure is exhibited below. The company’s manufacturing plants are located

in Ho Chi Minh City, Hung Yen and Binh Duong Provinces. As a large organization, effective

cooperation among functional departments is a crucial factor in successful business operations of

the group. Moreover, almost all business processes require associated tasks and activities taken

across various departments and SBUs as well as some external stakeholders.

As the company grows, process standardization will be among the primary focuses of the

functional departments in its building of the foundation upon which to accelerate growth.

Page 6: Apple sustainability related strategies and issues

Standardizing processes and work flows help the company to scale up faster in the post

M&A and expansion scenarios.

Strategic management activities and processes are carried out at the highest management

levels in head office. These include implementation and evaluation of cross-functional decisions

that coordinating activities, setting product strategies, identifying new investments, mergers and

acquisitions, expanding distribution network, and establishing joint-ventures.

In order to achieve its corporate objectives, Kinh Do managers must ensure that these

functional activities and processes in this large and complex organization area carried out

effectively and efficiently with high quality standards. Management must make sure that

objectives of every functional area must be aligned with those of the organization. Quality

management is practiced throughout the organization from strategic to operational level.

Kinh Do annual report is provided to you for your information and reference.

2. Process & functions at Kinh Do company (KDC)

2.1. Explain the term “process”, “function”

A process is defined as the instance of a program running in a computer. It is close in meaning

to task , a term used in some operating systems (Business Dictionary)

According the definition of Business Dictionary, an action performed by a device, department,

or person that produces a result. Function remains more or less fixed whereas the purpose (which

indicates intention or objective) generally changes. For example, the function of a hammer is

to strike something nearby whereas its purpose (what to strike and why) could be anything the

hammer-wielder has in mind.

2.2. Explain processes & functions at KDC (sales, marketing, R&D, logistic, etc). Analyze

functions of each department.

2.2.1. Functions in Kinh Do Corporation

2.2.1.1. The operation of input supply

Merchandising operation

Page 7: Apple sustainability related strategies and issues

All kinds of materials which have been used for manufacturing process in Kinh Do

Corporation have been handled by the department of Material Supply. This department includes

one Supply Director and three vice directors who are in charge of three kinds of materials

including package, materials and all other input materials from local suppliers as well as foreign

suppliers. These people need to make sure the materials they bought with the best price and

quality in the stable amount. Moreover, this department usually needs to look for the new supply

source, new supplier and cooperate effectively with other departments such as manufacturing

planning and stock department to implement their merchandising process.

Inventory management department

The operation of this department has been calculated on the basis of optimal inventory

and always implement the inventory of some materials which the organization will use the large

amount or with unstable price in the market. In every month, stock management department and

the manufacturing department has cooperated with accounting department to check the stock

room.

2.2.1.2. Operation phase

The department of equipment operation: This department need to have the knowledge of

operating some modern kinds of equipment in Kinh Do Corporation

R&D department

KDC focused on the R&D activities for new products and consider this duty not to

belong to R&D department but also belong to the Management Team and the Board of Directors.

This department has implemented many kinds of R&D activities

- Research to manufacture new products, from the phase of materials supplement to

manufacturing, packaging and quality management.

- Research some solutions for upgrading current products on the basic of quality and

packaging

- Research the manufacturing issues in the new equipment system which KInh Do

Corporation has just invested and planned to invest.

- Research the use of new materials in the manufacturing process

Page 8: Apple sustainability related strategies and issues

- Research the manufacturing process of export products to meet the requirements of

foreign customers under the quality standards.

Manufacturing department: This is in charge of manufacturing products to satisfy

customer demand

Quality Management department: This department will be in charge of quality

management in the products KDC supplies to the market under some standards such as Quality

Safety fro material phase to sales department strictly.

Distribution phase

Marketing and Sales department: This department is responsible for making sure the

increase of sales capacity, the increase of revenue and marketing in KDC and building the trust

from customers and increasing the profit rate to KDC

R&D department: This department is much different from R&D department in the

Operation phase. The responsibilities of this department are to implement the survey of customer

feedback with the purpose of improving the quality and developing the new products or to

collect surveyed information through outside consultants. Moreover, this department also

handles some survey about the efficiency of marketing and sales program.

PR and marketing department: This department will be in charge of marketing and PR

program with the goal of making sure the efficiency of their program as well as keep the cost at

the reasonable level not to increase the product price. Some PR and marketing or promotion

programs which KDC has implemented are promotion program in Tet holiday, market fair

participation as well as volunteer program.

2.2.1.3. Supportive phase

HR department: This department will handle some operation activities such as

recruitment, the policy of talent attractiveness, training, reward program

Finance and Accounting department: This department includes accounting team

including finance accounting, financial report; financial team including cash management, credit

management which are responsible for raising capital for manufacturing process, stock

Page 9: Apple sustainability related strategies and issues

department which is in charge of managing, following stock investment in KDC and handle

stock investment for each portfolio.

2.2.2. The processes in Kinh Do Corporation

There are three main phases such as Input Supply, Operation phase and Distribution

phase. There is one supportive phase including Financial and accounting department

Inventory

management

department

Merchandising

department

Manufacturing department

R&D department Quality Management department

Marketing and Sales department

R&D department

HR department Finance and Accounting department

Input

Supply

Operation

Phase

Distribution

Phase

Supportive

Phase

Page 10: Apple sustainability related strategies and issues

3. Inter-relationship of processes & functionsAs you can see in the process of KDC operation, there are three phases to provide

products to customers such as Input Supply; Operation phase and Distribution phase. In the Input

Supply, there are two department working and supporting together such as Merchandising and

Inventory Management. The next phase is Operation phase including Manufacturing department

with some supportive functions such as R&D department and Quality Management department.

And Distribution phase has been considered the final phase including the main department which

is Marketing and Sales department, R&D department. Besides three main department mentioned,

there is the supportive phase which hasn’t involved in the process of creating and delivering

products, but important such as HR department which focuses on finding suitable people for

operation of each department and Financial and accounting department which handle financial

activities.