MANAGERIAL ISSUES AFFECTING APPLE COMPANY

 MANAGERIAL ISSUES AFFECTING APPLE

COMPANY

1 Introduction

Apple company is a global company recognised by many individuals in the world

not only because they frequently use Apple’s gadgets but also because Apple is

among the companies that are highly advancing in technology as discussed by

Sun Hye Lee, 2016. Apple mainly does its manufacturing in China using Fox-

conn and Pegatron. Due to high demands of Apple gadgets, the company has

been subjecting workers to extreme working conditions such as working over-

time hours and this lead Apple being capture by a BBC documentary claiming

violation or workers rights.

2 Analysis

2.1 Cultural differences

Cultural differences between China and united states play a role in the man-

agement of social affairs of the workers.The high demand and large number of

manufacturing employees make Apple to under see human right due to their

quest of making more profit.Sun Hye Lee, 2016 has described how Apple has

been involved in various disputes due to violation of human rights.There has

been a managerial dispute because Jeff Williams in charge of Apple’s end to

end supply chain management once said he knew no other company doing as

much as Apple to ensure fair and safe working conditions. This is greatly at-

tributed to the fact that Chinese culture know of working as much as possible in

order to raise living standards but Americans aim at a balance of work and life.

Due to the managerial difference between China and United states as a results

of their cultural differences, this tends to give a leeway to Apple management

to justify the working conditions.

2.2 Exchange rates fluctuations and inflation rate

United States, which is the home to Apple Company has been facing highest

levels of inflation in the last 10 years. United states Federal Reserve in June2022 it raised its benchmark interest rate by 75 points which has great impact

on Asian and African currencies.The Asian currencies have been experiencing

a continuous loss of value as a result. According to Times, 2022, most of the

Apple products have been increased in price due to inflating increment and

to respond to spontaneous increase in currency. Luca Maestri chief financial

officer at Apple, in May was quoted saying that the rising dollar is hurting

Apples revenue and price review is expected.The managerial staff in affected

countries are caught up in a dilemma because when the prices of gadgets are

raised this may trigger a fall in demand thus decrease in revenue and also there

is need to address price changes in order for the gadgets worth be accounted for

to avoid being sold at a loss.The managerial staff has to make decision that will

make Apple company to remain competitive in the overseas market and also

avoid making losses as a result of currency exchange rate fluctuations.

2.3 Supply chain management

Despite Apple producing gadgets that have greatly advanced in technology there

has been bleach of copyright issues. under this circumstances small phone mak-

ers master the art of design of Apple products and produce similar gadgets.

Apple management has not been able to establish lop holes in their supply

chain that is giving small phone makers a chance to bleach because the demand

for Apple gadgets is high and they have not been able to produce sufficient n

correspondence to the demand.Additionally due to Apple being a multinational

company, there are challenges in overseeing all the activities that are taking

place in the supply chain in various states.The intrusion of the small phone

makers has high effects of Apple company because the small phone makers will

sell the gadgets at a cheaper price and this leads to loss of revenue to Apple

company.

2.4 Performance pressure

According to Knowledge, 2016 mobile phone industry grew by 6% between 2012

and 2013. In review of the analysis done, there are two competing smartphone

industries that is Apple and Samsung that have been competing for a long

period of time.

Insight, 2014 indicate that there is continued increase in market competi-

tion which is causing a decrease in market shares of large manufacturers.The

competition is due to the entrant of new mobile phone makers due to increased

demand and low cost to start up a mobile phone company. The new mobile

phone makers have also access to skilled personnel which enable them to design

and come up with gadgets that have advanced technology as Apple gadgets

have.

Due to the increased competition, managerial staff are faced with a challenge

to perform to their level best in order to ensure product loyalty is maintained

in the market and avoid decrease in market shares. Periodically,they have to come up with innovative and inventive ideas to advance Apple gadgets so that

they can be technologically ahead of other entrants in the market.

3 Conclusion

In conclusion, Apple Company remains to be among innovative, competitive and

advanced in technology companies in the globe. Apple has been able to establish

market loyalty with its customers and this has lead to acquiring of a large market

share globally.Despite all that, the managerial challenges of cultural difference

exchange rates fluctuations and a lot of requirement to perform are some of

the factors that need to be looked at in order to try and mitigate the effects

they have.In context of performance pressure, some of the managerial duties

may be delegated but the managers should also work because delegation only

works when the one delegating also does the job.Additionally a lot of revenue is

lost on its dispute due to cultural differences where one culture believes human

rights are being violated while the other believe human rights are being upheld.

Therefore this study suggests that the company should develop work policies

that will ensure that each cultural view and is taken into consideration in order

to have a conducive work environment not only for the managers but also for

the working personnel.

References

Insight, C. (2014). Quarterly market analysis mobile phones, worldwide iq14, 7.

Knowledge, G. F. (2016). Gfk returns for organic growth in 2016, 7.

Sun Hye Lee, K. M., Michael Mol. (2016). Apple and its suppliers: Corporate

social responsibility – case solution.

Times, G. (2022). How a strong dollar has hurt apple overseas competitiveness.