APPLE RISK MANAGEMENT
Aims of Apple Inc. Endeavor to design and produce products of high quality, new and exciting to the targeted consumers. Innovate as well as dictate the movement for future technology 4 1. To expand the distribution chain of Apple stores in the entire world. Risks Management Practices at Apple Company 5 2. For that reason, the following work strives at exploring the aims of Apple Company, threats and opportunities facing the Apple Company, measures implemented to mitigate the identified threats. Introduction to the Organization Apple Company is a global organization based in the United States, and it designs and manufactures electronics as well as computer software items. The most widely known hardware products produced by Apple Company include Macintosh computers, the iPod as well as the iPhone.
Besides the hardware products, Apple Company produces software products which include the Mac Operating System, creativity software, the iTunes media software and several other types of software that has earned Apple Company a favorable reputation among its targeted consumers. Apple Inc. The following are the key aims of Apple Company. Product. The Company offers its products at premium prices while at the same time striving to maintain significant market share. Endeavor to design and produce products of high quality, new and exciting to the targeted consumers. Strategy: Establish an innovative culture among the employees to enhance design and production of products that are of high quality. Strategy: The top management level of Apple Inc. has intensified the number of stores available in the market.
The stores are established based on the market demand. The modern market is characterized by stiff competition, and therefore, it necessitates the organization to frequently review its strategic mission goals and objectives. Apple Company's objectives are very flexible, and for that reason, they are frequently revised so that to meet the ever-changing market demands in the technology market. Identifying as well as managing Risks-Risk Register In Apple Company, risks are identified through environmental scanning to identify the potential threat that facing the organization. Identification also entails formulation of processes, assessment of the nature of risks and assessing the possible mitigation actions to be implemented. The managers at Apple Company are obligated to identify risks, their causes as well as the impacts (Hofmann et al.
The sources of risks and their implications of the products are assessed to determine the magnitude of the threat posed by the identified risk. Implications of the risks identified are analyzed based on the following considerations: a) Health and Safety of employees. c) Assessing the effectiveness of mitigation measures in place. To enhance risks identification and mitigation, the Risk Summary Report is reviewed and availed to the top management level at least annually to enhance in sound decision making. Moreover, the risks rating scale is adjusted frequently depending on the environmental risks. The following figure 1 is an example of a risk levels approaches employed by Apple Company. Table 1: Risk assessment levels (Source: Turner & Gelles, 2012). There is tough competition from other developed technology companies such as Samsung that are also thriving on innovation.
Most of the products that are a substitute for the Apple products cost less in other companies such as Samsung. The company has managed to be more innovative than Apple in product design and its innovation making its products to be more preferred in some parts of the world. It has invested in several measures and controls to enhance its growth and development. It is utilizing the ability to design unique software and hardware products as compared to other technology companies What is the point here? (McNeil et al. What products are you talking about? The top management of the company led by the Chief Executive Officer is enhancing the relationship with the governments that have prohibiting policies such as china and India.
The effects of the engagement though minimal as it has been allowed to continually increase the market base in the countriesExcellent customer experience is another control measure that is meant to maintain its loyal customers (Giarola et al. The company offers gifts to its loyal customers and also encourage new customers by offering gift hampers once they buy goods from Apple. How does this control risk? The maintenance of the company's reputation to the loyal customers and the new ones is also a measure to ensure that there is an assured market for the company's product. This ensures the Company will have a ready market despite the unfavourable policies enacted by the government 4 4 16 Liaise with the government officials to formulate policies that will provide conducive environment for all business organizations.
How? What do they plan to do? 5 4 20 Staff training Proper remuneration of the employees. Says who? Conduct promotion of employees based on creativity and merit. Says who? Provide incentives and several benefits to enhance employee satisfaction. Reputation The frequent battles that Apple Company engage with its rivals have tarnished the reputation of Apple Company. Apple has established a culture of innovation and creativity among its employees in order to create a favourable reputation among its employee. In addition to the distribution channel, the company has also maintained a sound financial base (Hitt et al. It is utilizing the finances to improve the innovation in the company that is meant to create a more competitive advantage (Hofmann et al. The focus on innovation is a measure that is meant to ensure that its product is at par with the developing technology.
Innovate efficient supply chains that will earn Apple Company a competitive advantage over its competitors. Upgrade its security measures so that the consumers can protected against the rampant security threats. According to the paper described above the major risks are about the market and the regulation in the countries that the company is establishing itself. The paper also describes the mitigation plan, the existing controls and the opportunities that the company has to improve its functionality. Some of the mitigation actions include the expansion of the market base, the involvement of the governments that have limited the development of the company's market such as India and China. Apple should also reduce the minimum level best the engagement with the legal processes to avoid tarnishing the name and the brand of the company and its products.
It is commendable that the company has made a tremendous step towards the improvement of its services and the products. Busse, C. Bode, C. Henke, M. Sustainability‐related supply chain risks: conceptualization and management. Business Strategy and the Environment, 23(3), 160-172. J. Frey, R. Embrechts, P. Quantitative risk management: Concepts, techniques and tools. Princeton university press. Advertising capabilities, which enhances brand awareness and create stronger demand for Apple’s products. Apple Company’s advertising budget is one of the most effective strategy that has earned the company a favorable among its competitors. It is estimated its annual advertising expenditure reached $1. million and hence it is able to employ the best advertising capabilities to promote products exposure among the consumers. Strong and effective U.
There is a high overreliance in the selling of iPhones by the company that can sometimes be unpopular with some users. The resulting effect is the vulnerability in the ever-developing field. There is a very weak distribution in parts of the world that has potential clients such as India 3. There is low expenditure on research in the development of the company and it can lead to manufacturing of technology products that are not accepted in the market. Opportunities 1.
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