Operations and Strategic Goals in Business
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Operations and Strategic Goals in Business

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Questions and Answers

What was a significant reason for the discontinuation of the iPhone 5?

  • Quality issues with scratched casing (correct)
  • Outdated technology
  • Low market demand
  • High production costs

    • Which of the following represents a strategic goal of a business?

  • Maximizing profits (correct)
  • Increasing product variety
  • Reducing office hours
  • Hiring the most employees

    • What did the shift in approach for the iPhone 5c signify for Apple?

  • An increase in high-quality manufacturing
  • A move towards luxury branding
  • A focus on low-cost production (correct)
  • An embrace of sustainable materials

    • What was a noted issue regarding worker conditions mentioned?

    <p>Workers share small dormitory rooms</p> Signup and view all the answers

    Which of the following best describes the role of operations in a business?

    <p>Managing the supply chain efficiently</p> Signup and view all the answers

    What is the main concept behind the 'triple bottom line' in modern businesses?

    <p>Balancing people, planet, and profit.</p> Signup and view all the answers

    Which of the following best outlines the distinction between Corporate Social Responsibility (CSR) and legal compliance?

    <p>CSR focuses on ethical responsibilities beyond laws, while legal compliance involves adhering to laws.</p> Signup and view all the answers

    How does technology influence the operations process in businesses, especially during production?

    <p>Technology improves efficiency and reduces production costs.</p> Signup and view all the answers

    What are some key ethical issues associated with smartphone production?

    <p>Fair labor practices and environmental sustainability.</p> Signup and view all the answers

    What is a significant environmental concern related to air pollution in China?

    <p>More than one million premature deaths each year.</p> Signup and view all the answers

    What type of resource is primarily used during the assembly of iPhones?

    <p>Transforming resources</p> Signup and view all the answers

    Which of the following components is NOT mentioned as an input in iPhone production?

    <p>Batteries</p> Signup and view all the answers

    Who provides the human resources required for iPhone manufacturing?

    <p>Suppliers and outsourcing partners</p> Signup and view all the answers

    What is included in the outputs of the assembly process mentioned?

    <p>Completed iPhones</p> Signup and view all the answers

    What role do outsourcing partners play in iPhone production?

    <p>They provide required facilities and human resources</p> Signup and view all the answers

    What was the range of the minimum wage at the Foxconn Shenzhen plant?

    <p>1,800 yuan to 2,200 yuan</p> Signup and view all the answers

    Which heavy metal exposure was reported as an occupational hazard for female electronics workers in China?

    <p>Cadmium</p> Signup and view all the answers

    What is one health issue caused by heavy metals such as cadmium and lead?

    <p>Cancer</p> Signup and view all the answers

    How many female electronics workers were surveyed by Chinese researchers regarding heavy metals exposure?

    <p>7,000</p> Signup and view all the answers

    What role do electronics play in relation to environmental issues in China?

    <p>Contributing to heavy-metal pollution</p> Signup and view all the answers

    What was the lower end of the minimum wage range at the Foxconn Shenzhen plant?

    <p>1,800 yuan</p> Signup and view all the answers

    In addition to cancer, what is another health issue linked to heavy metal exposure?

    <p>Nervous system disorders</p> Signup and view all the answers

    What is the upper limit of the minimum wage at the Foxconn Shenzhen plant in yuan?

    <p>2,200 yuan</p> Signup and view all the answers

    What is the implication of having a major failure in the product according to the after sales support policy?

    <p>Customers are entitled to a replacement or refund.</p> Signup and view all the answers

    How did Apple manage to reduce costs in its operations strategy?

    <p>By switching to cheaper suppliers and changing outsourcing partners.</p> Signup and view all the answers

    What can be a consequence of ineffective management of transforming resources?

    <p>Delays in production and increased costs.</p> Signup and view all the answers

    What role does human resources play in the task design process of operations?

    <p>Operations and human resources are interdependent in ensuring task effectiveness.</p> Signup and view all the answers

    What was a significant change in supplier strategy that Apple implemented in 2014?

    <p>Apple switched from Samsung to TSMC as a supplier of memory and processors.</p> Signup and view all the answers

    What is a possible outcome of variations in the demand for iPhones on Apple's operations process?

    <p>Need for adjustments in production capacity and resource allocation.</p> Signup and view all the answers

    What legal action was taken by the ACCC against Apple regarding warranties?

    <p>Legal action for breaching consumer protection laws related to warranties.</p> Signup and view all the answers

    Which of the following is considered a transformed resource in iPhone production?

    <p>The raw materials used for manufacturing.</p> Signup and view all the answers

    Study Notes

    Strategic Goals

    • Business strategic goals are long-term, including profit maximization, growth, efficiency, and financial stability.

    Role of Operations

    • Quality Issues: The iPhone 5 was discontinued in 2013 due to scratched casings, leading to the iPhone 5c with a low-cost plastic casing, highlighting a shift in Apple's approach to quality.
    • Standardized iPhones: iPhones are assembled as standardized goods.

    Influences on Operations

    • Globalisation: Globalisation has challenges, which need to be considered in making judgements.
    • Foxconn: Foxconn's Shenzhen plant had a minimum wage of 1,800 yuan (286)−2,200yuan(286) - 2,200 yuan (286)−2,200yuan(349) per month, higher than the 900 yuan starting salary.
    • iSweat: Workers sleep in dorms (6-8 per room) for $17 a month.
    • Environmental Allegations: Heavy metal pollution in China is linked to electronics production and recycling centers, with studies showing high levels of heavy metals near these areas.
    • Heavy Metal Exposure: Research found heavy metals such as cadmium and lead are occupational hazards for electronics workers.
    • Air Pollution: Air pollution in China is estimated to cause over a million premature deaths annually.

    Corporate Social Responsibility

    • Triple Bottom Line: This considers People, Planet, and Profit.
    • Ethical Issues in Smartphone Production: Labor and environmental factors related to outsourcing partners in China, including low wages and poor working conditions, as well as environmental pollution.
    • CSR and Legal Compliance: Corporate Social Responsibility (CSR) goes beyond legal compliance by considering broader social and environmental impacts.

    How Apple Has Addressed CSR

    • Apple has sought to address CSR concerns following investigations by environmental groups and the media by improving working conditions in its supply chain, reducing its environmental footprint, and promoting ethical labor practices.

    Operations Processes

    • Inputs: Transformed resources include components like touch screens, memory chips, circuitry, speakers, and audio chips.
    • Transforming Resources: Human resources and facilities are provided by Apple's outsourcing partners for iPhone production.
    • Outputs: iPhones and customer service.
    • Transformation Processes: These involve assembly and value-adding, transforming the resources into a finished product.

    Transformation Processes

    • Volume: iPhones are produced in high volumes.
    • Variety: There's limited product variety, primarily in terms of storage capacity and color.
    • Variation: Demand for iPhones varies, impacting operations.
    • Visibility: While manufacturing is outsourced, Apple maintains control over the design and quality of iPhones.
    • ACCC Action: The ACCC took legal action against Apple regarding iPhone warranties, specifying that consumers are entitled to a replacement or refund for major failures and compensation for other reasonably foreseeable loss or damage.
    • Repair and Replacement: Repairing iPhones can lead to data loss and repaired devices may be replaced with refurbished units of the same type.

    Operations Strategies

    • In-House Development: Apple has replaced suppliers with in-house development of components, like graphics and audio chips.
    • Cheaper Suppliers: Apple has switched to cheaper suppliers, replacing Samsung with TSMC for memory and processors.
    • Outsourcing Partners: Apple has changed outsourcing partners, using Pegatron for the iPhone 5c instead of Foxconn.

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    Related Documents

    Apple Operations Case Study PDF

    Description

    This quiz explores the intersection of strategic goals and operational influences in businesses, using Apple as a case study. It covers aspects such as globalization, quality control, and the environmental impact of production practices. Test your understanding of these critical business concepts with questions focused on real-world examples of operational challenges.

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