1. 1
Student’s name
Instructor’s name
Course date
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.
2. 2
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
3. 3
The company of Apple Inc. was launched in 1976, where it worked as a computer company by
Steve Jobs and his partner Steve Wozniak. It is a prime American multinational software and
electronics company. The company has become a leader in the market within its trade through
providing worth-while commodities that are of great worth in terms of the true high-tech policy
starting with I-pod, I-phones all the way to MacBook and its extended software I-tunes as well as
playoffs of sensible price. The company faces competition from other companies like Sony,
DELL, Nokia, LG, Blackberry, Microsoft, Nintendo, Rhapsody Samsung, and Hp.
The company is known for its innovation with technology and also its supply chain. The
company has become a world leader in selling peculiar electronic entertainment commerce. It
leads with their numeral music uprising over their iPods and iTunes wired supplies. The
company reinvented the movable phone over their innovatory iPhone and presentation stores. It
has launched its enchanted iPad, which describes the upcoming mobile media and computing
diplomacies. By December 2009, the apple store, a retail store owned by Apple Inc., opened 203
stores within ten countries (Ewing, Brianna L., et al, 145). The business vends its merchandises
globally over its online provisions, straight sales, and merchandise in third-party traders, value-
added retailers as well as resellers. Their iTunes, iPhone, iPod Touch and Mac offer their
customers a chance to download movies, music videos, TV programs, games, music, and books
online.
Apple Inc. is a big business that bears all stages of organization from higher to inferior levels.
The cooperate has all kinds of directors, comprising line directors whose mandate openly donates
to producing their goods and services. Staff managers use their practices to proficiency provision
line employees. Apple also has practical managers whose mandate is to oversee one activity area,
and they also have general managers responsible for complex areas. The company's founder is
4. 4
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
5. 5
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
6. 6
improved talent for occupations and others to labor well with every worker in the firm. With a
few threats of losing a job and intimidation in an organization, they will improve work-life
quality. Through the strategy of TQM, the sales associates of Apple Company are not only
trained to sell, but they are trained to help their customers find solutions to their problems.
In the Apple company, employees no longer receive any sales commissions, nor do they have
sales quotas, which epitomizes the principle of total quality management taught in operation
management classes. Workers working under total quality management mainly focus on the
satisfaction of their customers. The mission statement of Apple Inc. is to make a trade that offers
safe conditions for working, treat their employees with high levels of dignity and respect, use an
environmentally friendly process, integrate the safety and health management practices, commit
to a comprehensive supplier code of conduct and offer innovative technology services and
products and also convey the finest individual figuring skill to the instructors, customers, and
students worldwide.
Before apple implemented TQM, it faced the challenge of variation in a product they could not
control. But after implementing TQM, they were able to define that feebleness instantly. The
company prioritized identity and their actions, and also it kept information regarding the core
performed by their employees, which is crucial. One of this strategy's functions emphasizes
collecting information, which has helped Apple focus their concentration on the customer's
responses. TQM tracks data linked with the importance of any job that helps prioritize the things
performed first by the company's workers. It also selects the effective actions in regards to the
object. Total quality management emphasizes the entire communication systems, which has
helped the apple company in its communication model.
7. 7
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
8. 8
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 $55.256, which was a 7.2 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
9. 9
exclusive, easy-to-use merchandises in addition to innovative resolutions to its consumers.
Innovative, exclusive, and easy to use produces are the greatest factors why most customers
prefer apple's products over the other companies. In other words, the uniqueness in their quality
offers the company a competitive advantage that no other company can match. The ecosystem of
apple comprises hardware products, software, services, and application software due to the
company's ability to develop a wide variety of integrated properties. Most competitors of apple-
like, Google, LG, Samsung, and Nokia have tried to imitate Apple products' success. Still, their
quality is no match, and therefore due to a lack of strong manufacturing capabilities, designing
and developing both software and hardware, services, and applications, the companies fail. For
instance, Samsung Electronics, which are the biggest competitor of apple, do not have an OS,
and they possess few services and apps (Lockamy III and Archie, 45). Google, the second-largest
competitor of apple, has very good software, services, and application software. Due to their
poor management, they have developed some hardware products that did not succeed in the
market.
Apple has powerful brand and marketing and advertising capabilities, all courtesy of their TQM.
The company has the realm's most identifiable and cherished marque. Conferring to Forbes and
Interbrand, the apple brands are valued at $205.50billion and $234.241 billion. The brand's high
value is attributed to the company's popularity, which means that it is among the top recognized
companies in the world. The vast and quality ecosystem has supported the recognition of the
brand. The company is known for evolving extremely pioneering, well planned, and good
operative commodities as well as delivering superb consumer involvement and complete
economic presentation. Also, its marketing and publicizing competences have gained the firm a
lot of popularity (Marrero and Alberto Garcia, 67). This has been facilitated by implementing
10. 10
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 74.6percent 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
11. 11
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
12. 12
customers. The company of Apple Inc. offers products designed with the highest quality ever
ahead of their competitors. Despite the high market competition, Apple has been able to succeed
by creating demand for their products. Due to its products' quality, the company has power over
prices by differentiating their products, innovative advertising, the hype of launching their new
products, and ensuring brand loyalty. By focusing on the customer's wellness to pay more, the
company maintains its finest rates at the price of entity volume. They also establish up an
synthetic access obstruction to its contestants.
The business also vends its commodities and also resells third-party products in most of its
marketplaces. It sells straight to its customers and also in small-size markets through its online
and retail stores. They also employ various distribution channels like third-party cellular network
carriers, retailers, resellers, and wholesalers.
Retail valuing
The business customs the minimum advertising price (MAP) selling policy. This policy forbids
merchants from advertising the merchandises from the manufactures beneath a definite least
price. The policy of MAP is employed through selling grants presented by the manufacturers to
their resellers. The company upholds the reputation of its expensive products by posing vendors
like Best Buy a discount. This makes customers pay a price e relatively close to the retail price
suggested by the manufacturer. Also, retailers can give up the small margin profit and consider
selling the merchandise at a reduced price to fascinate more consumers. To avert this situation,
apple bids inducements in terms of money to their retailers to vend products at the MAPs,
secured by the firm.
13. 13
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
14. 14
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.
15. 15
Works cited
Ewing, Brianna L., et al. "Management of apple maturity and postharvest storage conditions to
increase polyphenols in cider." HortScience 54.1 (2019): 143-148.
Lockamy III, Archie. "An examination of external risk factors in Apple Inc.’s supply
chain." Supply Chain Forum: An International Journal. Vol. 18. No. 3. Taylor & Francis,
2017.
Magwizi, Christina Nyaradzai. An investigation of operational management in the organization,
on the example of the Apple Computer, Inc. MS thesis. Тернопільський національний
технічний університет імені Івана Пулюя, 2020.
Marrero, Alberto Garcia. "The Rise of Apple Inc." Journal for Global Business and
Community 9.1 (2018).
Ng, E. H., et al. "TOTAL QUALITY MANAGEMENT & APPLE SUCCESS." (2018).
Porcel, Mario, et al. "Organic management in apple orchards: higher impacts on biological
control than on pollination." Journal of Applied Ecology 55.6 (2018): 2779-2789.
Yang, Ziyi. "The Impact of Brand Innovativeness on Customer Loyalty—Take Apple Inc. as an
Example." 2020 4th International Seminar on Education, Management and Social
Sciences (ISEMSS 2020). Atlantis Press, 2020.