As we discussed in COMM 101, supply chains are extremely important in the success of a brand. It’s the process in which their products go from the factory to consumers hands, hopefully within the shortest and most effective amount of time. The effectiveness of a supply chain can be a measuring stick for investors when appraising the managerial components of a company.
Since the death of co-founder Steve Jobs, Apple management has come under intense scrutiny from investors as well as the general public. In past years, Chief Operations Officer, Tim Cook’s “fantastic attention to detail” has provided apple with a reliable and effective supply chain. However, now that Cook has taken over as CEO of Apple, issues in the supply chain have surfaced. Cook can no longer focus on optimizing the supply chain, thus raising managerial questions amongst investors.
Apple latest products, including: iPad Mini, iPhone, and the iMac are all expected to have major shipping delays, with the iMac shipping dates pushed back to after the holiday season, resulting in a huge loss of potential revenue.
These issues could be one of the contributing factors to the constant “roller coaster” tendencies of Apple’s stock, with investors losing faith in the effectiveness of management.
Spence, Ewan 11/18/12, “Apple’s Supply Chain Issues Reflected In Stock Pricing”. http://www.forbes.com/sites/ewanspence/2012/11/18/apples-supply-chain-issues-reflected-in-stock-pricing/