Apple Inc - Quality Control and Demands Forecasts – Case Study Example

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The paper “ Apple Inc - Quality Control and Demands Forecasts" is a meaty example of a case study on management. Over the years, Apple Company has been regarded as one of the market leaders in its industry. The company is a global electronic organization which majors in the production of telecommunication and electric gadgets. Since its inception, the organization has invested massively in the creation of a brand based on the quality of its products. In an argument by Hoyle (2007) an organization is set to highly benefit from the creation of a brand as described by product and service quality.

The author further asserts that effective quality control strategies ensure the organization provides the market with products and services of the required standards (Hoyle, 2007). In regards to Apple, the company’ s main responsibility to the market is the provision of quality products. In addition, this requirement functions as a strategy to acquire a competitive advantage. The first step used by the company is to carry out market research to determine market preferences. In this approach, Apple considers the provisions of the competitors to the market.

The company then strive to provide a more developed and unique product from its competitors. In an example, Apple manufacture the iPhone Series. Each iPhone produced to the market has unique features from existing products. This ensures the product provided is of top quality and preferred by the market. Another significant strategy used by Apple Company is increasing supplier responsibility. Across the globe, there are numerous people provided with the responsibility of creating Apple products (Apple, Inc. , 2010). This is based on that the organization has a huge market that cannot be sustained by the mother company.

To ensure that the supplier maintains quality in product development and production, Apple educates all its employees on its quality requirements. Across the globe, the organization has employees that strive to ensure equality, respect and human rights to all the chains of the supply chain (Apple, Inc. , 2010)Apple also uses the strategy of proving safe and standardized working environments. Apple, Inc. (2010) is of the assumption that to ensure employee oblige to quality requirements is by proving workers with proper working environments.

Apple uses develops and use internal project aimed at evaluating the safety environments and working conditions (Apple, Inc. , 2010). The project also provides recommendations on how to improve working conditions. Demand Forecasts The success of an organization is solely based on its ability to convert inventory into sales. The sales of an organization are based on how effective the approaches to sales are developed and implemented. Kotler & Keller (2012) assert that an organization should ensure the sales made are in line with both its financial and market requirements.

The authors further assert that for this reason, an organization should invest heavily in understanding the demand trends forecasts (Kotler & Keller, 2012). This knowledge minimizes the risks of over and under production by an organization. To effectively understand these trends, an organization should develop accurate and effective demand forecast mechanisms. This refers to the ability to understand the market preference on a product and expected market purchasing will and power. Over the years, Apple has been able to record massive profit after the launch of a new product.

Firstly, the organization understands the performance of its product. The performance is determined by the comparison of a competitor’ s products. If their product is highly trendy and unique from related products in the market, the company understand that the demand would be high. From this knowledge, the company then develops an effective pricing strategy to capitalize on the expected trend. The combination of performance analysis and effective price development, the company is able to forecast how the product would perform in the market (Cusumano, 2010). This would then dictate the production level based on demand forecasts.

The most common used demand forecast used by Apple is an analysis of the sales data from previous products and the current market. Cusumano (2010) points out that past sales figures may reflect the accurate forecast expected from new market entrant from the same organization. Apple then understands the factors that may affect the demand power of the market. These factors are then compared to the previous sales performance in the same environment. This knowledge enables the company to understand the market factors that may affect the consumer purchasing power in regards to their product.

This approach also includes an analysis of the general performance of Apple products. For instance, the company evaluates the sales of other Apple products and whether the consumer has increased preference for Apple products. This increases the ability to understand the demand levels of its products.

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