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  • Outdated technology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 (D)</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 (C)</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. (A)</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. (A)</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. (C)</p> Signup and view all the answers

What are some key ethical issues associated with smartphone production?

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

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

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

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

<p>Batteries (C)</p> Signup and view all the answers

Who provides the human resources required for iPhone manufacturing?

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

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

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

What role do outsourcing partners play in iPhone production?

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

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

<p>Cancer (A)</p> Signup and view all the answers

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

<p>7,000 (B)</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 (B)</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 (C)</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 (D)</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 (B)</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. (A)</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. (A)</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. (B)</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. (C)</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. (D)</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. (D)</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. (D)</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. (D)</p> Signup and view all the answers

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Study Notes

iPhone 5 Discontinuation

  • The iPhone 5 was likely discontinued due to the introduction of newer models, such as the iPhone 5s and iPhone 5c.

Strategic Business Goals

  • A strategic business goal aims to achieve a long-term objective, often involving growth, profitability, or market share.

iPhone 5c's New Approach

  • The iPhone 5c signaled Apple's shift towards offering more affordable, colorful options for consumers without compromising on key features.

Worker Conditions Issue

  • Concerns were raised about potential unsafe working conditions and potential worker exploitation at factories involved in iPhone production.

Role of Operations in Business

  • Operations encompass the processes that transform inputs (resources) into outputs (products or services) for a company.

Triple Bottom Line Concept

  • The triple bottom line emphasizes sustainable business practices, considering not just profits but also social impact and environmental responsibility.
  • Corporate Social Responsibility (CSR) goes beyond legal requirements, demonstrating a commitment to ethical practices and positive societal impact. Legal compliance merely adheres to minimum legal standards.

Technology's Influence on Operations

  • Technology can automate production processes, improve quality control, and facilitate faster product development cycles in operations.

Ethical Issues in Smartphone Production

  • Ethical concerns arise around worker conditions, environmental impact, and potential misuse of electronic devices.

China's Air Pollution Concern

  • A significant environmental concern in China is air pollution, frequently caused by industrial emissions.

iPhone Assembly Resource

  • Human labor is a primary resource used during the assembly process for iPhones.

Absent iPhone Component

  • The text does not mention the presence of a specific component in during iPhone production.

iPhone Manufacturing Human Resources

  • Foxconn, a major electronics manufacturer, is responsible for providing the workforce for iPhone assembly.

iPhone Assembly Process Outputs

  • Assembled iPhones are the primary output of this process, representing the final product ready for distribution.

Outsourcing Partners' Role

  • Outsourcing partners, like Foxconn, play a pivotal role in iPhone production by carrying out assembly and other manufacturing tasks.

Foxconn Shenzhen Minimum Wage

  • The minimum wage range at the Foxconn Shenzhen plant varied, with the lower end being lower than the Chinese national minimum wage.

Occupational Hazard for Female Workers

  • Exposure to heavy metals like lead and cadmium was a reported concern for female electronics workers in China due to potential health risks.

Health Issue from Heavy Metals

  • Heavy metal exposure can lead to health problems, including cancer, but can also cause neurological damage.

Female Electronics Workers Surveyed

  • Chinese researchers conducted a survey of a sizable number (specific number not provided) of female electronics workers focused on heavy metal exposure and potential health effects.

Electronics and Environmental Issues in China

  • Manufacturing electronics contributes significantly to environmental issues in China, particularly in terms of air pollution and waste disposal.

Foxconn Shenzhen Minimum Wage Lower End

  • The minimum wage range at the Foxconn Shenzhen plant varied, with the lower end being lower than the Chinese national minimum wage.

Another Health Issue Linked to Heavy Metals

  • In addition to cancer, heavy metal exposure can also lead to neurological damage.

Foxconn Shenzhen Minimum Wage Upper Limit

  • The upper limit of the minimum wage at the Foxconn Shenzhen plant was in yuan (specific amount not provided).

Major Failure in Product Implication

  • Having a major product failure could activate Apple's after-sales support policy, potentially requiring repairs or replacements.

Apple's Cost Reduction in Operations

  • Apple aimed to reduce operation costs by streamlining production and potentially negotiating lower prices from suppliers.

Consequence of Ineffective Resource Management

  • Ineffective management of transforming resources in operations can lead to lower productivity, delays in production, and ultimately a decline in profitability.

Human Resources Role in Operations

  • Human resources play a crucial role in designing tasks and ensuring efficient workflow, often involved in determining job roles and responsibilities.

Apple's Supplier Strategy Change in 2014

  • Apple made a significant change in its supplier strategy in 2014, focusing on diversifying its supply chain and reducing its reliance on a few major suppliers.

Impact Of Variable iPhone Demand on Operations

  • Varying demand for iPhones can significantly impact Apple's operations, leading to potential adjustments in production levels, inventory management, and distribution processes.
  • The Australian Competition and Consumer Commission (ACCC) took legal action against Apple related to its warranty policies, alleging unfair and misleading practices.

Transformed Resource in iPhone Production

  • Components and materials are transformed from raw inputs into the final iPhone product, representing a key transformed resource.

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