Circular Economic Report: Apple Company
ASSESSMENT INFORMATION
1. Choose a company and a product and explore its value chain to write a report focussing on the four issues: 1.1 Discuss the sustainability problem associated with the wider sector linking to the company and a product. In this section, discuss in detail, the social, environmental, and economic challenges associated with the sector that your company belongs to. Provide evidence, data and examples to illustrate the extent of challenges. 1.2 Explain the product value chain identifying materials and waste flows in each process from extraction, manufacturing, distribution, consumption and disposal. In explaining the value chain, use a value chain diagram showing materials used in the process and the type of waste generated at different stages from extraction to disposal (e.g. see the value chain diagram 4.1). Where you cannot find a complete information, make assumptions; but state clearly the assumptions you have made and the basis of assumptions. This is mostly associated with raw materials. 1.3 Propose three or more circular strategies/approaches and relevant circular business models the company could adopt. In proposing the CE approaches, revisit the value chain diagram and show at which stage the suggested CE approaches could be implemented (e.g. see the value chain diagram 4.2). In proposing CE approaches, look at circular design, inputs, circular business models, reverse logistics and enablers) and R-frameworks, refer to examples of companies to consider which aspects of CE have already been implemented to gain insight on the proposed approaches. 1.4 Evaluation of the most favourable circular strategy and circular business model for the chosen product from your perspective. Based on the proposed circular strategies/approaches and circular business models, make an overall evaluation about the circular strategy and circular business model you see as most favourable for the chosen product. Justify with evidence in what ways and how the most favourable strategy and circular business models can create higher social, economic and environmental value. If you have proposed any design and input choices, also clarify which you would see to increase the feasibility and viability for circularity. Feasibility is about the ease in implementing circular strategies. Here, you can mention what might be required or what factors may facilitate implementation of circular actions. Viability is the potential to succeed in creating social, environmental and economic value through the proposed strategies. Here, you can mention what t factors may hinder the implementation of circular actions. 2. The report should include the following four sections: 2.1 Introduction - The chosen company and the product and sustainability problem associated with the wider sector (1.1 above) 2.2 Current value chain of the product – Discuss of value chain identifying materials and waste flows and value loss (1.2 above) 2.3 Proposed circular solutions– Discussion of the proposed circular approaches (1.3 above). 2.4 Conclusions – Summary identifying challenges to the implementation of the proposed ideas (1.4 above)
CIRCULAR ECONOMY REPORT
Student's Name
Course
Professor's Name
University
City (State)
Date
Circular Economic Report
Apple Company
1 Introduction
Steve Wozniak and Steve Jobs in1975 started Apple Company. Since then, the company has attained success. It is the leading manufacturer of computer software, peripherals, tablets, smartphones, and personal computers. Apple Company is widely known as the best tech business. It is among the most significant five technological companies and has continued to invent consumer technologies. Apple has also attained success in business as it made significant acquisitions and investments over the years. For instance, in 1996, the company acquired NeXT Computer. In 2014, the company acquired Beats Electronics, and in 2017 and 2018, the company received Shazam and Texture syndicates, respectively. Apple Company has been driven by innovation, portrayed by its ability to invest in trusts that have advanced their technology catalogs.
Apple has attained significant success through the sale of its iPhone product. However, it has experienced sustainability problems in the production process. Although the company has discussed its environmental initiatives in the past few years and focused on minimizing its overall carbon footprint, Apple's Production has significantly increased ecological degradation. The company claims that 70% of its carbon emissions are contributed by Production alone. Conversely, the environmental effect of the Production of the iPhone starts at the assembly line. Components such as lithium and cobalt, essential for electronic devices, adversely affect the environment. According to researchers, more than 2.2 million liters of water are required to generate one ton of lithium (Newman, 2022). The water is usually diverted from households and communities that need it the most, causing challenges to the communities in the neighborhood.
2 Value Chain of the Product
The value chain analysis of the Apple iPhone is a systematic framework that helps identify the business activities that generate value and the firm's competitive advantage. It also helps in the identification of materials and waste flows.
Identifying the Materials and Waste Flow in the Production of iPhones
iPhones have a complex supply chain that includes the extraction of raw materials, component manufacture, and assembly. A smartphone is made of natural materials that contain 25%, 23%, 20%, 14%, 7%, 6%, 2%, 1%, and 0.03% silicon, plastics, iron, aluminum, copper, lead, zinc, tin, nickel, and barium respectively. At the bottom of the supply chain, raw materials such as metals and metal ores are used to make the essential elements of the phone. Raw materials are from mines with poor environmental records (Heather, 2022). Although China is the largest supplier of raw materials, it does not have social and environmental regulations causing the mining industry to experience poor working conditions and environmental degradation. Mining metal and metal ores in China has resulted in the formation of toxic lakes, leading to increased air pollution and farmland contamination that have resulted in adverse public health risks such as cancer, skin diseases, and respiratory diseases.
The Primary and Support Activities in the Value Chain Analysis of Apple Products
The primary activities in Apple's iPhone value chain analysis include inbound logistics, operations, outbound logistics, marketing and sales, and services. The secondary activities include firm infrastructure, human resources, technology development, and procurement.
* The Primary Activities
The primary activities in the value chain analysis of iPhone products in Apple Company refer to acquiring and storing raw materials for their usage in Production. Apple Company has incorporated numerous suppliers across the globe. The figure below shows that the syndicate maintains more complex supply-chain management. The company's raw materials are sourced from countries such as the United States, China, other Asian Countries, and Europe (Dudovskiy, 2021). The iPhone products are assembled in China and stored in intermediate warehouses through Fedex/UPS or warehouse facilities in California or Elk Grove. IPhoe products are distributed through online stores, retail stores, direct sales forces, wholesalers, retailers, and network carriers. The company provides its buyers with return policies, trade-in programs, and recycle/reuse programs.
The supply chain practices of Apple Company, therefore, serve as a benchmark for the effectiveness of international businesses. The primary sources of value in the company's inbound logistics are associated with the economies of scale because of the large scale and scope of business operations.
In Apple Company, the inbound logistics consist of a team that focuses on receiving and arranging the raw materials to produce the company goods. Inbound logistics ensures that the quality of products is guaranteed and is responsible for fast Production in a minimum period. The company obtains its raw materials from China, America, Europe, and different Asian counties. After that, it assembles its products in China. Apple Company, through differentiating its market into five small sectors, as discussed below.
* America: Apple Company sells most of its products in America, comprising both South and North America. In 2020, Apple Company experienced a 7% increase in sales in both South and North America compared with the year prior.
* Europe: The Europe sector comprises countries such as Africa, Europe, the Middle East, and India. The company's sales in this sector are dynamic because they can increase or decrease depending on people's willingness to purchase the company's products at a specific time.
* Greater China: This segment has not been promising for Apple Company. For instance, the company's sales in greater China have decreased significantly in the last four years. Such has been attributed to the fact the Greater China segment has local competitors with low price ranges.
* Japan: the Japan sector has been constant regarding the number of sales made by the company. For instance, in the past three years, the company's sales have been steady in the country.
* Rest of Asia Pacific: The region has been realized as a new po...