Apple’s Inventory: A Bad Sign for its Competitors

Apple’s inventory levels have decreased significantly since Tim Cook, labelled an “operational genius”, became their CEO and started managing their supply chains. This is interesting because it shows how important operations can be towards the success of a business, especially in the case of Apple where their low turn-over rate meant less expenses and more cash to spend elsewhere. Unfortunately, this means more difficult competition for companies like Samsung, as Charmian mentions the ongoing rivalry between it and Apple, especially with its new product the iPhone 6 so recently out.

Source: http://www.activebeergeek.com/wp-content/uploads/2011/05/apple-products.jpg?w=300

A high inventory turnover rate can be a key factor for success, and this may be the concern of Sony, who seems to be struggling with the mobile phone market whilst competing against strong competition like Apple, just as Neysa mentions. Perhaps the only method left for them to close the gap is to find an “operational genius” for themselves, just as Apple had. Nevertheless, none can say how long Apple can maintain their low inventory turnover and overwhelming success, as their popular new iPhone 6 finds itself in the midst of much criticism.

reference: http://seekingalpha.com/article/2046823-apples-inventory-the-sum-of-all-fears

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Small Firms: Success or Bankruptcy?

Source: http://blogs-images.forbes.com/deborahsweeney/files/2013/01/small-business-saturday.jpg

NBC News discusses the 5 issues that small businesses face in the year 2013. Every firm faces problems, especially small firms as they first enter the market. I have learned from my class prep 4 that there are several ways to identify these problems, such as using the fish bone diagram to identify the causes of a problem. In this case, we can put in what the bases of the problems are, such as health care, taxes and competition.

A good example of a small or failing business is in Candy Liu’s blog about Moblicity falling into bankruptcy, where they would need to find the cause of the problem and solve it by level of urgency if they ever want to recover. A contrary example would be from Shannon’s blog, where she talks about Apple as a prime example of success. Comparing these two blogs/articles, we can see that organization is a key factor in success or failure and the application of things like a fish-bone diagram can be vital in finding the root of a problem.

So what can a small firm like Moblicity do to achieve success and someday become as large and successful as Apple?

Reference: http://www.nbcnews.com/business/economy/5-issues-facing-small-businesses-2013-f1C7660251

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“Food Giants not Acting Ethically”

Ethics have a large impact upon the brand image of a firm, and ultimately their profits. BBC’s article gives a prime example of industries facing difficulty in following the ethical methods expected by their consumers. It’s not easy for companies like Kellog’s or General Mill’s to maintain low prices and still follow the expected ethical production methods. For example, it is easy to take advantage of poorer countries’ low costs.

However, I see from this article that concealing information about how food is produced leads to low ratings and a bad public image, which may impact their sales. Companies like Coca-cola or Nestle, who produce their goods with more ethical methods, have better public image as they are highlighted in the article for using proper production methods. This may lead them to higher sales and more loyal customers. This is also illustrated in Calen’s blog with his example of Fifa and Shuhan’s blog about McDonald’s, where both their unfair treatment to workers lowered their reputation. Therefore, I think it is important to follow certain ethics expected by the public to maintain a good company image and earn loyal supporters for their brand.