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Brexit and
Apple Inc.

NAME XXXX
ID XXXXX
I) Apple’s Adaptation to the changing economic climate:

The exit of United Kingdom from European Union (Brexit) in January 2020 has drastically

changed the economic environment which has changed the ways in which the businesses will

operate globally. The businesses that are affected most by the Brexit are of multinational

companies. They are struggling to figure out how they will operate their businesses.

Apple Inc. London, UK. being the “technology giant” is an important talk of the subject. There

is no framework for how companies must change or adapt in response to Brexit. The information

about the topic is limited and the point of views differ and contradict with each other. Apple UK

has warned that the UK operations may be disrupted by the export and import restrictions which

have been imposed as a result of Brexit negotiations. When it comes to planning regarding

Brexit, companies are making some serious mistakes. Some companies are adopting wait and

watch strategy. They are using historical data to set targets. They are not considering Brexit

spillover effects which can influence their businesses. All these approaches are very risky as

when the companies might get sufficient information, it may be too late. Therefore, the

companies need to take a planned approach (McNamee & Kokkinogeni, 2018).

Apple,UK needs to do planning in advance. So far, the only logical explanation is that Apple,UK

should be ready for the worst case scenario. Plan for this. This requires huge investment but this

is not a problem for a multinational company like Apple. (Reuters, 2020). Currently, Apple,UK

is planning to raise the price of its apps in UK so it can control Brexit’s impact on the business.

In UK, there not much physical stock of Apple. Their warehouses are located in Ireland. To

solve this issue, the distribution channels in UK have increased their stock. This is not helpful for
the CTO products which are Chinese assembled. They will be shipped to Ireland and then UK.

This means delayed deliveries (Sharons, 2019).

The supply chains of the businesses are likely to suffer post Brexit. There are some measures

which the companies can take to reduce the impact of Brexit on businesses. Apple,UK can

identify the items in inventory which are most likely to be affected by Brexit. The order quantity

can be increased to reduce the chances of shortages. It is uncertain what will be the economic

conditions of UK in 2k21. Therefore the demand can not be forecasted. The government might

make investment in some industries for economy boost or there maybe a recession. Either way,

the demand will change. Apple,UK needs to keep track of its sales regularly so it does not miss

growth opportunities,. The company should do Stockpiling very carefully. Although stockpiling

prevents shortages, it can limit high working capital It can impact cash flow and lead to obsolete

stock. So Apple,UK should analyze regularly if its stockpiling is healthy (Baker, 2020).

The companies don’t know exactly, what will Brexit’s negotiations lead to. It is important for the

companies to understand the risk scenarios. The root causes of the risks and their implications

should be anticipated. It is important to look at the short-term and long-term uncertainties related

to Brexit. All the risks including financial, supply chain, environmental, technological and

regulatory should be considered. Apple,UK should plan how to cope up with the trade war

between European Union and United Kingdom. (Herzog et al., n.d.).

Apple,UK might face procurement difficulties. The raw materials and components might

become expensive. The current sourcing mechanisms must be evaluated. It should be ensured

that the company has spare supplying source which provides at a competitive cost. The

manufacturing footprints must be optimized. UK based production units might be moved to

Europe to protect margins from export and import duties. (Herzog et al., n.d.).
The above discussion shows that Apple,UK might have to go through multiple financial and

economical challenges post Brexit. However, the effects on Brexit will largely depend on what

final deal is made between the European Union and United Kingdom. A no-deal Brexit would

lead to chaos and economic pressure for many companies. The short term consequences are not

so good but the long-term consequences depend on the actions and views of politicians.

II) How I as an HR manager can support the planned/unplanned

approach:

HR department at Apple,UK cannot be too prepared for the influence of Brexit on the company.

MHR has predicted these scenarios post Brexit:

 War of talent in United Kingdom

 Pressure to cope up with legislative changes

We need to do a thorough planning to be vaguely preparred at least. The checklist for Apple Inc

UK. Includes the following :

 Understand the impact of Brexit on all company area like business and external market.

Finally coomunicating these findings.

 HR technology must be in place which will give workforce visibility.

 HR technology must allow to picture scenarios and determine areas of concern. This will

drive value of business from HR.

I as an HR manager has a significant role to play in Apple Inc., UK Brexit Journey.

  Create positive mindset for business: We develop strong communication and employee

engagement strategies which will ensure the workforce that business and HR are ready

to deal with Brexit repurcussions. The employees will then voice their opinions and stay

connected (Kerridge, 2019).

 Address “current issues”: Analyze how economic unpredictability is affecting bonus

pools and targets and what actions should be taken for this purpose.

 Long-term Planning: HR should participate in the Apple’s scenario planning after

learning Brexit’s implications (Wilkins & O’Connor, n.d.).

HR strategies to help Apple Inc. UK deal with Brexit after analyis of external

environment (SWOT analysis and PESTEL analysis).

APPLE Inc. SWOT Analysis

 Apple

Inc. PEST Analysis

SWOT and PEST analysis is a key to success for the corporations post Brexit. So is the case with

Apple Inc UK. HR management at Apple Inc. UK should develop the following capabilites:

1) Business Acumen:

HR shuold become familer with the balance sheet of the company. It should see in which areas

the company makes money. The aim is to understand how these metrics lead to an improve

performance of the organization. It should also understand how the financial constraimts affect

the worforce talent.

2) Economist Mindset:
The daily metrics should be balanced with the big picture trends by the HR leaders. Successful

HR management understands and analyzes how the factors like techonological, legal, political,

environmental and economic affect their business.

3) Scenario Planning based on Data Collection:

If the HR management anticipates issues and plans for them suggesting the possible solutions, it

will be in a better position to deal with economic climate changes. HR should take Brexit as a

catalyst to step up and help shape the business along with functional peers. (Cook, n.d.).

Planning for Brexit:

Determine how exposed Apple Inc. UK Is:

HR should understand the affect of Brexit on Apple Inc HR in terms of supply chain, demand,

competition, exchamge rate, It is an important concern for the companies because:

 have presence and manufacturing facility in UK

 EU workforce in UK

 same distributors in Europe and UK

 products must comply with UK rules and regulations

 raw material export method

Form a Brexit Strategic Team:

HR should form a team for the strategic planning. The team should be cross functional and

belong to various departments. Marketing, procurement, sales, finance, channel manager, supply

chains.People from all the departement should work collaboratively. They should align strategies

according to priority area.

Learn Possible Scenarios:

After learning possible outcomes, the team should make plans around the Brexit negotiations and

economic conditions.

Conduct Thourough Analysis:

Evaluate nature, timing and level of impact in detail. The area or operation which is most prone

to risk should be addressed first. For example, if supply chain is in danger, it should be worked

upon. And EU nationals staffing don’t seem to be such important can be addressed later.

Model Costs and Demands:

It involves analyzing how cost and sales are affected by Brexit. This evolvement should be

incorporated in strategic planning. Some scenarios will incur. Examples would include tariff

barries, regulations etc. Demand will diifer. Sales graph might fall. Consumer preference can

chane. They can become price sensitive. Resultantly, companies might have to rethink goods

portfolio and target market.

Evaluation of value proposition :

The companies will adapt to operation disruptions due to Brexit. There will be evolvement of

value proposition to assist marketing strategy. Now when the effects and value proposition has

been identified, the company can start making decisions about supply chain, pricing people etc.
Lastly, it is very important to keep track of the economic indicators and other events which

would predict negotiations. The management should see if they are on track or the strategic

planning needs adjustment.

Brexit will create many challenges for businesses and organizations all across the globe.

Companies who will adopt a planned approach will be able to stay in market and utilize

opportunities to grow. Companies might lag behind if they adopt wait and see policy.
References:

 McNamee, M & Kokkinogeni,a. (2018). How Multinationals Should Be Planning for

Brexit. Retrieved from: https://hbr.org/2018/05/how-multinationals-should-be-planning-

for-brexit

 Reuters, T. (2020). Brexit—pitfalls and opportunities for multinational companies—part

two. Retrieved from: https://blogs.thomsonreuters.com/legal-uk/2020/02/05/brexit-

pitfalls-and-opportunities-for-multinational-companies-part-two/

 Sharons. S. (2019). Brexit: as we Head for a ‘No Deal’ Brexit what our customers need to

know. Retrieved from: https://www.hardsoftcomputers.co.uk/blog/leasing/brexit-as-we-

head-for-a-no-deal-brexit-what-our-customers-need-to-know/

 Baker,T. (2020). How to reduce Brexit’s impact on your supply chain. Retrieved from:

https://www.eazystock.com/uk/blog-uk/how-to-improve-inventory-management-brexit-

supply-chain/?cn-reloaded=1

 Herzog.C, Zollneritsch.M, Groth.M. (n.d.). THE BREXIT SUPPLY CHAIN

CHECKLIST. Retrieved from: https://www.oliverwyman.com/our-

expertise/insights/2020/oct/the-brexit-supply-chain-checklist.html

 Kerridge,C .(2019). How will Brexit change the game for Human Resources? Retrieved

from: https://www.openaccessgovernment.org/brexit-change-the-game/58873/

 Wilkins & O’Connor . (n.d.). Brexit: what are the implications for HR?. Retrieved from:

https://www.pwc.co.uk/the-eu-referendum/brexit-what-are-implications-for-hr.html
 Cook,I . (n.d.). Post-Brexit Workforce Challenges: How to Strategically Plan Through

Ambiguity. Retrieved from: https://www.visier.com/clarity/post-brexit-workforce-

challenges-strategically-plan/