PROCUREMENT MANAGEMENT

UFA 1005

TITLE:
CASE STUDY

DATE:
18TH JULY 2021

LECTURER:
MR. WAN ZAMRI

NAME OF CANDIDATES:
WONG LI MIN

NUMBER OF MATRIX:
UFA 200092
Question 1
Major contributor to Apple's success as one of the world's biggest technology
company is its robust supply chain network. Explain Kraljic Model for supplier
relationship management by using Foxconn and Pegatron as examples. (5 marks)

Long term operational relationship

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Question 2
Apple is known for its innovation, unique designs, creativity in products, and quality
of the products. The company sells smartphones, tablets, music players, digital media
players, wireless earbuds, operating systems, and various other hardware and
software. The company continues to lead the technology market in terms of revenues
and sales. The company has faced various allegations and lawsuits over the years but
has managed to come out of them without having its brand reputation tarnished.
Discuss four dimensions of Ansoff Matrix for Apple. (10 marks)
a) Market Penetration
Apple uses this technique to try to sell its current goods in its current markets. Apple's
current markets include several countries where it sells its goods. Apple-operated retail
stores and authorized dealers sell the goods. They're also available from third-party
sellers that buy and sell Apple devices. The goal is to gain market share. The firm also
sells its items through a variety of channels other than retail locations, such as its online
store. To further penetrate the market, the firm reduces its pricing and gives discounts
on items after its first debut. Software upgrades and other accessories are also available
to attract new consumers and maintain existing ones. To further penetrate the industry,
the firm establishes strategic alliances with telecom giants such as Verizon and AT&T.
It participates in technology exhibits and supports different events to market its
products. Consequently, the firm will be able to expand sales in its current areas.

b) Market Development
Market development is the act of selling current items in new markets. Apple does this
through building retail shops in new geographic regions to provide customers with
direct access to the company's products. Apple had its first overseas expansion in 1980,
when it built a plant in Ireland. It has continued to grow since then, with retail locations
in 24 countries. In order to meet the demands of local consumers, the firm also
develops new distribution methods for each new region. It has also expanded into
several emerging nations, rather than sticking to important areas like India and
Indonesia. This helps Apple to achieve higher sales since its goods quickly become
saturated in a single market.

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c) Product Development
Product development is the process of creating new items and selling them in current
markets. Apple is the product development king. It frequently develops and introduces
new versions of smartphones, tablets, laptops, and other electronic products in its
existing markets. The most well-known example is the iPhone smartphone, which is
updated on a regular basis, the most recent being iPhone 11. Not only that, but Apple
also releases multiple variations of the same goods to add to the variety and appeal to
customers with varying technological demands. This is a current requirement since
buyers demand new items after a period of time to take advantage of technology
advancements. This also helps Apple to get new consumers and provide new goods to
existing customers. The items are first introduced in the United States and Europe,
followed by other markets. Apple CEOs have been known to introduce new goods to
assist people better grasp the technological advancements that have been integrated.

d) Diversification
Diversification is launching new items in new markets. Apple has introduced a number
of new items that are unconnected to its previous offerings, such as the Apple Watch,
Apple Card, and Apple Pay. In addition to the areas it already serves, the firm has
introduced these new goods in a variety of new markets. This is a hazardous strategy
that necessitates the most money spent on advertising and promotions to get the items
on the market. Apple is continuing to take this method to generate new income and
sales streams in order to boost its profits. Diversification is less of a risk for Apple
because it has robust cash flows and can handle hazards..

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Question 3
Choosing the best smartphone for your enterprise can be tricky. With many models
available from a variety of manufacturers, it can be difficult to find the right device
to fit your business needs. By choosing the right smartphone, you benefit from
increased productivity and improved operational efficiency. Your company have
assigned you to procure 5 units of smartphone for middle management level, discuss
five (5) most important factors to be considered in making your purchasing decision.
(5 marks)
Functions associated with buying goods and services
Straightforward process of purchasing commodities
Used in a wholesale environment (external process)
Tends to focus more on the item’s price than its value
Refers to the specific task of committing expenditure
Includes ordering, expediting, and payment fulfilment
Follows a reactive approach to satisfy internal needs
Transactional–focuses on transactions than vendor relationships

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