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Total quality management of apple
BUSINESS MANAGEMENT (BB232)
Kenyatta University
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Total Quality Management of Apple Inc.
Total quality management (TQM) is a worldwide known strategy used to control and review any company's whole quality. It involves a continuous development that engages every employee in an organization forms the superior management to the manufacturing staff line. The central part of every development program is recovering customer overhaul and diminishing the trade's ravage. The team of quality development uses the methods of problem-solving and study to realize and abolish business weaknesses (Porcel, Mario, et al, 43). The benefit of using total quality management within an organization is that it improves efficiency and worth in associations, more so in trade. It may also be denoted as a philosophy that wires the procedures of eminence management of any organization, like improving customer gratification, developing the quality of product and services, reducing resource wastage, and maintaining an organization's growing performance.
TQM helps in problem-solving as it emphasizes on constant enhancement of the congregation of the merchandise plus services a given firm provides. In the tactic of TQM, the employee as well as the management function organized for the expansion of their products by means of management and quality device which focuses on increasing the organization and reduction of losses. Various crucial concepts like the requirements of the customer define the quality. Improvement of quality is an obligation of the upper administration, organized enquiry, and developing labor progression, bringing the desired excellence results.
Benefits of Total Quality Management
One of the greatest importance of this strategy is that it helps in reducing cost. When the strategy is enforced in an organization for some time, it reduces the costs through the company's entire organization and more so in the fields of service and warranty cost devaluation. With very few additional costs incurred, an organization can make high profitability. TQM also helps achieve customer satisfaction as it focuses on increasing the eminence in the procedure instead of checking the worth into the process. This decreases the period mandatory for repairing mistakes and marks it less essential to pay a quality certitude crew. It also helps boost morale as it involves employees' participation in it, fostering positivity in the employee. This helps reduce the employee's turnover and decrease the training cost and employ new employees.
Discussion.
In the past, many organizational philosophies focused on creating a profitable and good relationship with their clients. Conversely, modern management strategies are concerned about the view, satisfaction, and expectations of customers. These values can only be achieved through continuous assessment (Yang and Ziyi, 200). TQM considers the expectation of customers from the beginning of the process to the end. The strategy does not equip more facilities to the customers, but it lets them speak for themselves. It does not stop after achieving its high level, but it focuses on continuous improvement and overturning the past standards. During the first investment of this strategy, it seemed very expensive, but it is more profitable. One of the flaws with TQM is that it demands large investment during the start.
Background of Apple Company
well known for possessing temperamental management styles, being strict to his employees as he caused some fear while he also praised them. The obsession of the company's deceased founder with excellence created an amazing development process that has turned its products to be great. With the development of technology, many companies have focused more on their customer experience than their products. The company has emerged as one of the most successful ones due to its continuous, timely check of new improvement trends while competitors are trying to complete and keep up with them.
Total Quality Management at Apple
Apple Inc. is an example of companies that use Total Quality Management principles to attain their business and common objectives. Apple's main emphasis is exploiting its shareholders' revenues through also being a corporation it trusts in charitable giving to the public. TQM also shares the similar objectives as it aims at minimizing profits. It also insists on keeping in mind solutions to innovation that do not harm society's society (Ng, E. H., et al 59). TQM is a type of management that focuses on the employees' capabilities, and their abilities are explored to acquire collective goals. Every employee is always motivated to undertake their duties to the maximum. An example of leadership is witnessed in Apple Inc. Steve Jobs has left a footmark that will continuously guide Apple's forthcoming front-runners to encourage their workers to develop pioneering resolutions and assist the firm in attaining its goals.
To meet these goals, apple Inc. implemented the use of Total quality management. It uses advanced design concepts and product engineering in a highly competitive market as they concentrate on profitable business expansion. Through this strategy, the company uses integrated teamwork in every stage of their project to ensure that they keep all their business functions. They also use an assisted information technology preface with creative techniques and tools to
attain the best assurance and design levels. They ensure steadiness in delivering the merchandise in line with their enterprise stipulations and intentions of quality in the introduction course, developing, and excellence. Having a variety of first-rate provider base as well as the involvement of every part in their project aids in attaining the best standards and delivery and adhere to the best standards. Total quality management is related to the customer's satisfaction, but it is also related to the service levels that the company provides.
According to the customer's view, it is not that a product should only possess the desired features, but it should also be available in a suitable and timely manner. Therefore, TQM comprises all the interior and exterior associates of the chain stock to attain all the purchaser necessities at the lowermost prices possible. Apple Company implemented the TQM with support and commitment from their top executive by maintaining its customer's focus in every service that the company offers, their processes, and their products. The company constructed this empire by maintaining its four essential values, which they established from its foundation. One of these values is honesty. The company of Apple demonstrates honesty and also high ethical standards in its marketing. It also respects its customers, employees, and suppliers, among others, by treating them with courtesy and honesty. The company also displays confidentiality as it protects its information and its customers, employees, and suppliers' information. It also ensures that their business decisions comply with the regulations and law. These values have transition Apple Company from being a two-person business to a global business up-to-date. This adaptive style of apple has worked well with maintaining the competitive environment, which requires flexibility in working with the constantly changing conditions. Through the TQM, Apple has maintained its internal teamwork within the company as per the demand of this management and maintained its competitive advantage. Improvement of social abilities offers a
Through TQM, Apple Company mandates the subordinates and supervisors an specialist to govern their employees. Being reflected as the world's big firm, delivery of accountability and power is essential in improving its reference. Total quality management allows for straight command. Through the usage of TQM, the strategy serves continuous perception within the apple firm and the personal statistics as it has helped in eliminating the communication barricades between the company supervisors, and it has also maintained a supportable connection with colleagues. This strategy has been as helpful to Apple Company as it is destined to persist restructured around their existing condition.
Total quality management has also helped Apple Inc. to perfect its competence and productivity. Tracking the entire production cost and controlling the materials' cost is a crucial function that TQM performs. Products that are produced well generally help increase the demand for the product and the complete service. This development opens a chance to produce more products and leads to the entire production facility's lower average cost. Likewise, high production leads to an increase in customer loyalty within time, and it also helps in gaining efficiency overproduction. The high production and loyalty to apple company customers trace back to the execution of total quality management.
Implementation of TQM has enabled apple to adopt a quality-driven strategy. Many competing companies of Apple are trying to snatch the entire market share from the company through some segments, apple adopted TQM, and a competing advantage based on their products' quality. TQM allowed the company to acquire high buyer interference and assist as a competitive advantage above its opponents. This strategy also enabled Apple to have proper staff management. It enabled the company's staff to effort more energetically to attain reliable
activities linked to the organization's exploit purposes as this strategy eradicates destructing the dedication of company employees.
Entire quality supervision supports the concept of rent less improvement. In this strategy, training is an important factor as it develops the workers' performance, and it also necessitates training employees about investments. Providing conducive working environments has enabled the workers to offer quality services and solve problems they encounter through effective communication with their staff.
SWOT analysis of Apple Inc.
The SWOT analysis revealed how Apple utilized its competitive advantage to dominate the tech industry. According to the SWOT analysis of 2019, Apple has utilized its competitive advantage created by its effective TQM use. They made a profit of $55, which was a 7 percent increase from 2018 income. The management strategy has built the business through their selling and manufacturing of computer software and hardware. It has also experienced greater growth and success after entering consumer electronics with iPad, iPhone, and iPod products. In a highly competitive market, performing has forced Apple to continuously perform its bests always to stay ahead of the competition. Under the leadership of Steve Jobs, the company realized that the only way they can ensure they remain at the top is by ensuring that they offer the highest quality products available in the market. This was only able to be done through the implementation of TQM in their management.
Strengths of Apple Inc.
The greatest strength of Apple Company is its ability to design and develop unique products under the management of total quality management. Through this strategy, the firm can present
total quality management, which has facilitated good date recording and communication. Recently the company has focused on their in-house advertising as they want to strengthen it, and this will be done through attracting new talented people to their internal agency. This will lower costs and increase marketing and advertising capabilities. With the help of their TQM management, the company has a spectacular marketing campaign, premium quality products, advertising power, and its ability to deliver a superb customer experience that has allowed them to build a strong brand.
Apple Inc. also has one of the most loyal customer bases within major markets of products whey they operate. One of TQM principles is to increase the customer's experience and operate based on their needs. Apple has achieved this as it enjoys a loyal customer base without even owning a devotion program. Clients compliment the business's merchandises for their invention, easy to use consistency, plus the quality that the company conveys. This has made them always buy and use commodities even when there are other better or even cheaper options. This is why the retention rates of the companies' smartphones within the market are highest. A report from BankMyCell indicates that Apple has retained its customers at 74 as compared to their competitors.
Apple Decision Tree Analysis.
The apple company has a non-programmed decision that is meant not to license their operation and software systems. The company decided to use a non-programmed decision because the company realized that they had created their software and a system of operation that would eventually ensure them a good leadership status in the market courtesy of TQM. In 1985, Bill Gates had suggested to the company to license its software. The company responded that it would not license their operating system, but instead, they focused on creating software that
consisted of specific hardware that integrated better. The company's acquisition of total quality management helped them create such systems, and this is why the MacBook has a good battery life and better trackpads.
On the contrary, Microsoft, one of Apple's biggest competitors, chose to license its operating system. This made their operating system and their software available to the other computer companies. The company has only built its business by selling the operating system to the other computer companies, so OS has a 5percent of the market share. In contrast, Microsoft has a market share of 90percent (Magwizi and Christina Nyaradzai, 70). Through programmed decisions, licensing of apple software would have made their software and operating system available to the third party, affecting their products. First, licensing would affect their products' pricing and compete with other cheaper computer companies like Dell, HP, and others. This will have made them lower the prices of MacBook, and this would have forced them to lower its quality to match the price.
Apple Inc. pricing Strategy
Apple's goal is to sell products that provide a great customer experience, and through the use of TQM, Apple has been able to produce products that match this quality with low cost. Bloomberg inherited the strategies of Steve Jobs, which comprises four pillars; focusing on the high end, great halo effect makes customers eager for new products, offering a small number of products and prioritizing profits over the market share.
Differentiation
The company of apple tries to increase its demand in the market through the differentiation of their products. This strategy entails the making of products unique and more attractive to
Through the MAP policy, apple has prevented its retailers from competing with the company's entire stores. The strategy also helps the company to prevent the advantage of one reseller to another. This makes the company keep its distribution channels clean as they also make money from their direct sales.
Sales Increase
The price of smartphones has fallen significantly, and it has boosted the sale of apple for the last few years. The development of technology has led to many smartphone companies reducing their handsets' cost more, so the Chinese companies have made the price of smartphones go down and make them easily accessible in the mass market. Android has permitted many new manufacturers to enter the smartphone market as various turnkey processing solutions support them. Most of the vendors of android smartphones have focused on producing low-cost products to build brand awareness. This has affected the sales of apple as people need to change their phone frequently. However, the launch of Apple's iPhone 11 and 11 pro have led to a sales increase.
Recommendations
Based on the SWOT analysis, the apple firm has an inadequate dissemination due to their strategy of uniqueness. For example, the business selects the lawful vendors of its merchandises like Macs and iPhones. SWOT investigation deliberates this as a feature that confines their influence to the market. Although the firm has exclusive benefits, like the company's control of the distribution still, this weakness exists. Additionally, the premium pricing strategy, the company needs to establish sales dependence. The expensive products only entice consumers from the central to great-revenue braces, averting consumers of little salary from buying their
products. This is a section where they need to improve so that they can attain customers from all levels.
From the above-identified strengths identified by SWOT, apple Inc. can use these strengths to address these weaknesses effectively. Through these strengths, the company can also exploit its opportunities like expanding its electronic distribution to its customers. Also, with a strong brand image, the company can successfully launch and develop new technology lines. However, the company needs to be more careful with the competition and imitation as it is a challenge that has affected players in the international market. The company should therefore continue with its innovation in the creation of its products. This will help in reducing imitation. It should also enhance further automation of its course of manufacture and also provide the mechanization process of their ideal producers so that they can discourse the accumulating employment expenses.
Total quality management of apple
Course: BUSINESS MANAGEMENT (BB232)
University: Kenyatta University
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