Essay about Apple Inc Case Study

2862 Words Nov 28th, 2011 12 Pages
Apple, Inc.
a) Operational Balanced Scorecard: Apple, Inc.
Increasing customer expectations and a rapidly changing market are continually putting pressure on Apple to maintain a balanced scorecard. From the information reviewed, it is evident both financial and non-financial measures of Apple operations constitute the management of their strategic decisions and evaluations of the cost of quality measures.
Using the balanced scorecard approach to define the financial positioning of Apple creates a clear picture as to what they can and should measure to balance the financials accordingly. It is a management system that enables them to illuminate their corporate strategy, mission, and vision—and put them into action, while providing
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Looking ahead to the fourth fiscal quarter of 2011, we expect revenue of about $25 billion and we expect diluted earnings per share of about $5.50.”
Increases in operating income from productivity gain, operating income from growth and revenue growth allow Apple Inc. to manage their costs and unused capacity and build strong customer relationships, resulting in increased shareholder value.

b) Costs of Controlling Quality vs. Costs of not Controlling Quality
According to the text from class, “The American Society for Quality defines quality as the total features and characteristics of a product or service made or performed according to specifications to satisfy customers at the time of purchase and during use.”
There is no doubt that Apple is a successful company. From reviewing the Apples’ financial statements, it is clear Apple has cornered the market on “cool”. Apple has bravely marketed themselves as a company that makes products that “just work.” However, this success does come at a cost.
Costs of Controlling Quality
Prevention Cost: Apple, Inc.
According to AppleMatters.com, “In terms of hardware, Apple's success is overloading its own Quality Control. With manufacturers that need to produce a record number of Macs, iPods, iPhones, and accessories, it is without a doubt that some testers overlook several tests in order to ship out as many Apple products as possible to the world.

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