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    ONM 4202 Group Assignment Apple Challenges

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    ONM 4202 Group Assignment Apple Challenges

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    14 views2 pages

    ONM 4202 Group Assignment Apple Challenges

    Uploaded by

    i20018697

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    © All Rights Reserved
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    of 2

    Chip shortages in the supply chain

    Apple has always been very strict in controlling their supply chain. Apple has managed to avoid
    the impact of chip shortages over the years, but even Apple cannot avoid global supply chain
    problems caused by the pandemic. Current Apple CEO Tim Cook mentioned Apple's supply
    chain issues and the impact on Apple's bottom line on a recent earnings call. "If you look at Q4
    for a moment, we had about $6 billion in supply constraints and it affected the iPhone the iPad,
    and the Mac," Cook said. (Kline, 2022) Tim Cook mentioned in the meeting that they are now
    facing a chip shortage. With the intensification of the pandemic, the demand for electronic
    products has been pushed to an unprecedented level. Nowadays, the demand for chips from
    major companies is very strong, but during the pandemic, production in many regions has come
    to a standstill. status. The main problem with the chip shortage is its bottom supply. Apple's
    operations team needs to deal with very big challenges. They must confirm which supply
    factories are still operating in the supply chain and prepare backup plans for emergency
    situations.

    Balance between company interests and corporate social responsibility

    Another challenge for Apple is finding the balance between exercising shareholder maximization
    and operating responsibly for society, the biggest problem of which stems from China. Apple's
    large scale and the large number of employees involved in the supply chain make it difficult for
    the company to monitor disputes over workers' rights in the industry. Apple has been involved in
    many cases of artificial rights disputes. Apple's management's vague and misleading approach to
    corporate social responsibility has broad implications for the interests of employees in the supply
    chain who provide services for Apple. In terms of corporate interests, Apple has a responsibility
    to maximize the interests of its shareholders; however, in terms of social interests, Apple faces a
    responsibility to employees in the supply chain. The problem for Apple is the difference between
    management's commitment to corporate social responsibility and their actions. Apple is paying
    its suppliers in China less than it pays its U.S. suppliers. Since it is outsourced manufacturing in
    China, Apple can only comply with Chinese regulations without having to face its own country's
    regulations. Apple's management currently lacks a standard framework to judge whether the
    ethics in the supply chain are in line with corporate social responsibility.
    References

    Kline, D. (2022). Apple Has a $6 Billion Supply Chain Problem (That May Get Worse). [online]
    TheStreet. Available at: https://www.thestreet.com/investing/apple-has-a-6-billion-supply-chain-
    problem-that-may-get-worse.

    Supply Chain Movement. (2021). Production problems at Apple. [online] Available at:
    https://www.supplychainmovement.com/production-problems-at-apple/.

    Edubirdie. (n.d.). Apple: Supply Chain Management Issues And Approaches To Its Improvement
    - Free Essay Example. [online] Available at: https://edubirdie.com/examples/apple-supply-chain-
    management-issues-and-approaches-to-its-improvement/.

    Evans, J. (2020). Apple’s operations teams must be struggling to pull things together. [online]
    Computerworld. Available at: https://www.computerworld.com/article/3530037/apples-
    operations-teams-must-be-struggling-to-pull-things-together.html.

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