1. Read the closing case from Chapter 15 "Apple: The Best Supply Chain in the World?" from the textbook and answer the following question:

"Apple products have usually been priced above their competition and sold for their value, intrigue, and market leadership. Some would say Samsung is catching up on many of these fronts and even passing Apple perhaps. Do you think Apple can charge a price premium for its products much longer?"

O LIL UM findings companies trying to build a cup network? QUICU Chain U.S. Department of Labor's Bureau of I Affairs publishes the Chartbook of International Labor Comparisons. Locate the latest edition of this report, and identify the hourly compensation costs for manufacturing workers in China, Brazil, Mexico, Turkey, Germany, and the United States. Apple: The Best Supply Chains in the World? case inciples to drive it consistently brings both For eight straight years, Apple has been recognized as having the best worldwide supply chains in the "Gartner Global Supply Chain Top 25" rank- ing. In the most recent ranking. Apple was actually classified above the ranking as a "Master" (Amazon.com was the listed the number one com- pany. The Master status recognizes the accomplishments and capabilities of long-term global supply chain leaders in the Gartner Global Supply Chain Top 25. Companies qualify for the Masters category if their score places them in the top five rankings for at least seven out of the past 10 years. Numerous accolades have also been made about Apple's supply chain strategy, operations, and results. For example, Apple's supply chains "best demonstrate leadership in applying demand drive incin business results. "Apple dominates because it consistently operational and innovation excellence to bear it some of competitive markets in the world. Basically, Apple gets a lot the supply chain profession for being able to ramp up volume hardware and software while also uniquely helping redefine the electronics market (e.g., iPhone, iPad, MacBook). Apple gets a lot of credit in up volumes both in a redefine the consumer D. Hofman, "The Gartner Supply Chain Top 25, 2013, www.gartner.com technology #30 Part Six International Business Functions is the world arer Samsung stor Samsung We most valuab or the number Cology company loyees at Porton in m o w See on his stayed at the top brand value of me y people to do so ond-largest and the scen In Interbrand's able brand in one positional nale con every yeat more than much so easy These "fans" or custom s Joriy fans. The electronica Co un alto OWNEVI pleasant wiw they lavor Apolo ented as consoladership in both dons for degree the future The company's general De mutational com exames to cultivate rty needed for fut waiting research, peypicaly does a of sourcing commitme The product launc downloaden de and best global supply onic gadgets more than online Challenges are clear to hu n dry beral Supply Cha H as to succeed in slowing Samsung moment s ne path of most rporations' supply chains. They do research and de taoming Chinese mobile phone phone market is always with Apple, as set in our expectations over the years by Steve Jobs "one more thing and ate new technologies and or to acquire intellectual inents CEO Tim Cock and the the new Apple leadership team must keep com Apple loves or future products. They test the product concepts via nating to the arch, product testing, and total cost analysis. After that that their vision ng to the market that their vision, Innovations, and leadership can a to o drive the idea that ople's best days are ahead. As One way to a prelaunch of new products, where global produc- Apple is on a hiring binge in Asia, adding hundreds binge in Asia, adding hundreds of engineers and sup- mitments, inventory management, and so on are evalu ers to its staff in Shangal and Taipei as it seeks to increase ply chain managers to its staff in Shangai and Taipei launch involves doing demand forecasts, resolving at which it introduces new products. Plus, with Cook as the CEO, the spred at which it introduces new products. Plus. backlogs, and ensuring that the products are in to e in the hands of its Apple has an ahal nortinn and unply chain management expert otte fast a cycle time as possible. Alter the launch, monitoring heim who constantly scrutinizes Apple's supply chains reviews of inventory, demand, life cycle status, and tions, and fair labor practices. of its ted bound a Antal bachia sumers in as fast arts with periodic review onent cost forecasts A number of factors First, early on an Is global supply providers within the acus vity in Supp ply chain infrastructuur or of factors make Apple s global supply chains world lead arly on. Apple took steps to manage the total value created bal supply chains by managing its suppliers and all other ance nal act to Moscatel Apple incoats Caracolas World's No. 1 Brand of Magazine, September 30, 2013 http://in.pcmag.com Apple Reports Fourth Quarter Results www.apple.com Sources Hofman The Gartner Supply Chain Top 25. 2013, www.gartner.com technology, "interbrand's Best Global Brands 2013. www.interbrand.com; "Apple is the World's Most Valuable Brand at $98 Pullion. The Huffington Post, September 30.2013. Apple Reports Fourth Quarter Results Apple Press Info October 2008: E. Doe "Auple Goes On Hirinn Binge in Asia to Speed Product Releases. The Wall Street Journal, March 3, 2014 http://www.wsi.com/articles/SB100014240527 02304360704579416660215507816, American Customer Satisfaction index hithesesio ing Apple's Supoly Chains. The New York Times. And 2, 2012 http://query.nytimes.com/gst/fullpage html?res-9COSEED91F3FF931A357 57C0A9649D8B63) ao a strength that has helpe I for within the chains. Predetermined expectations of sunnere in supplier arrangements, and volume guarantees ensured a chain infrastructure that could support Apple's aggressive mar Leadership Apple's relationship building with its network partners is path that has helped with increased scaling of production and din improved quality in the manufacturing processes. Plus, and s to be underestimated, Apple has amassed lots of cash! The avail le cash funds have partially been used to place high-volume orders, which strengthen supplier relationships, and in other ways maintain gobal supply chain leadership. Using its supply chain infrastructure, Apple has managed to solve most of the challenges it has faced. For example, while the global eco nomic downturn in 2008 presented problems for virtually all companies, ople came through it in great shape. At the time, CEO Steve Jobs said, We're armed with the strongest product line in our history, the most tal- ented employees and the best customers in our industry. ... Apple just reported one of the best quarters in its history.". Other challenges that Apple is facing include obtaining enough quality components for its con- sumer electronics, potential for supply chain disruptions (natural and People created), dependence on third-party logistics providers, and in- cory management issues. In each case, so far, Apple has strategically ved major issues to the satisfaction of the marketplace (the company stently ranks at the top in "customer satisfaction in the American Customer Satisfaction Index). ver, everything is not all rosy or positive about Apple. The com- eputation has taken a few hits recently. For example, Apple was ily by a U.S. court of conspiring with publishers to set the price S that were bought using iTunes. The ongoing feud with se CASE DISCUSSION QUESTIONS 1. According to interbrand's analysis, Apple's brand is valued at more than $170 billion, while Google in second place is valued at $120 billion and Coca-Cola in third is at $78 billion (2015). Do you agree that Apple should be so far ahead of its nearest brand competition? What about Samsung, which is larger in size (Samsung is valued at $45 bilion)? 2. With Steve Jobs, Apple's legendary founder and CEO, passing away in 2011, what can we expect from Apple in the future? Will they be as innovative? Will they maintain brand value leadership? Will they run the top global supply chains in the world? 3. Apple products have usually been priced above their competition and sold for their value, intrigue, and market leadership. Some would say Samsung is catching up on many of these fronts and even passing Apple perhaps. Do you think Apple can charge a price premium for their products much longer? 4. Apple's global supply chains make their business thrive. There is secrecy among suppliers, superior quality standards by every party Involved in Apple's supply chains, and a total value focus that ultimately makes the customers happy. Is this a sustainable business model for their global supply chains? drive both most dit in th in umer pany's reputation has taken at found guilty by a U.S. of e-books that were Samsung regarding variou egarding various patents keeps lingering year-byyear, and mers are almost fanatically taking sides for or against ere have also been allegations about the treatment of Global Production and Supply Chain Management 431 Chapter Fifteen Global Production Apple. There have also