The Apple company comprises one of the most influential corporations in the global business scene. The company produces its products in California America but assembles its products in China. The majority of the work is seen in the American region while the casing and packaging initiatives are undertaken in the Chinese region. The company produces in the two key locations.
The company has not changed its production policy with regards to outsourcing the assembly to China. It continues to outsource several jobs to China. The initiative allows them access to cheaper labor and further allows it time to oversee the production of other products in the country. According to Kabin (2013), the main goal that influence’s Apple’s commitment to the outsourcing of jobs to China comprises the need to save time rather than money.
There are several factors that a company should consider before deciding to move manufacturing abroad. To begin with, there is need for the consideration of the cost of production in the target country. Factors that need to be addressed with regards to the cost include the cost of labor, the facility costs in the target and the other resource costs such as transportation costs. The company should further determine the use of tariffs in the subject region. Tax laws may work against a company’s move when the tax tariffs are inclined against imports into the target country (Reyhle, 2016). Lastly, the company ought to examine the standards of production in the given regions.
The influence of technology on outsourcing cannot be overstated. Through technology, companies are allowed access to myriad professionals on the freelancing websites. Additionally, company officials are no longer compelled to move from one region to another to facilitate outsourcing. Instead, they can engage readily with professionals over the online social platforms.
Quality control (QC) plays an immense role in addressing the needs of companies that are service-oriented such as Sprint Nexel. To begin, QC ensures that the standards of service delivery are streamlined to prevent the occurrence of poor quality service. Thus, in the case of Sprint Nexel, it ensures that all of its competitors are adjudged based on collective standardized metric. Adherence to the QC further augments a company’s reputation which results in increased flow of customers and revenue from the services that are offered within the institution (SIX SIGMA ONLINE). Alternatively, a service company that commits itself to the QC framework is more likely to secure financers during the turbulent times. Essentially, given that Sprint Nexel has committed itself to the QC, it is more likely to secure loans from banks and financial institutions.
An improved reputation, as a result of adherence to QC, inspires increased following among the clients which in turn translated to even more revenue for the subject company. Additionally, such a company will be empowered to acquire funds from banks and financial institutions. Some of the methods that can be engaged by companies to control quality include failure testing. Failure testing involves testing the produced product until it is verified to withstand adverse conditions. The next quality control method is provided for by quality assurance which is a commitment by the company to assess the development, designing, production and the servicing of a given product.