Apple Inc.: Managing a Global Supply Chain Essay

11083 Words May 10th, 2016 45 Pages
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W14161

APPLE INC.: MANAGING A GLOBAL SUPPLY CHAIN 1

Ken Mark wrote this case under the supervision of Professor P. Fraser Johnson solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.

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Nevertheless, it was clear to Jessica that Apple’s product range would get more complex in the next few years. As part of her analysis of Apple’s stock, she wanted to take a look at the company’s supply chain to see if she could gain some insight into whether to continue with Apple as a key holding in BXE’s fund.
APPLE INC.

op yo Apple Computer was founded on April 1, 1976, by Steve Jobs, Steve Wozniak and Mike Markkula to manufacture and distribute desktop computers. Both Jobs and Wozniak started tinkering with computing devices in a time when enthusiasts who wanted a fully functioning computer had to assemble the parts by themselves from individual components. They struck a deal to sell an initial order of 50 units of their
“Apple I” computer to a local computer shop, and negotiated a 30-day credit term to pay for the parts, effectively using their suppliers to fund the startup. After selling 200 units of the Apple I, Wozniak improved the design and showcased the Apple II in April 1977. Needing capital for the next phase of their company, they brought on Markkula, a marketing manager at Intel who had retired after making millions on his stock options. The company became the largest private manufacturer of personal computers in the
United

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