Production and Operations Management
How the U.S. Lost Out in iPhone Work
New York Times January 21, 2012
The subject of this work is evaluation of the article from the New York Times, dedicated to the peculiarities of the production processes of iProducts by Apple Inc. This article is a result of interviewing of dozens of people related to the company or experts sharing their personal view on the subject, including economists, manufacturing experts, technology analysts, academic researchers, competitors and corporate partners, government officials. The main aim of the article is to evaluate reasons and consequences of a decision of Apple Inc. to move the production of its products abroad. The decision was taken in and implemented in common in 2004 and was in line with exodus strategies of other hi-tech companies. What makes the article being of value for the present work is that the decision of foreign manufacturing is a result of processes management. Despite common point of view, production in China or Taiwan is not only a question of low labour costs causing extreme profits, in Apple’s case production in Asia was the only solution. At the same time the article is not only about the production and operations, being a more complex investigation, it also describes social consequences of distribution of business processes between the USA and Asia, trying to announce a new topic to discuss for all of the involved parties: companies, governments and workers. Nevertheless, we will skip the social focusing of the article, and evaluate it from the Production and Operation Management point of view. The article demonstrates how the strategy of the company was realized through selecting of certain production and operational solutions and how the strategy demands made the decision to move the production of iPhones and iPads to Asia unavoidable. In Apple's case compliance of the...
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