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Apple Goes Global CASE STUDY
Apple Goes Global CASE STUDY
GLOBAL
“case study”
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BRIEF SUMMARY
• Apple, the most famous brand in electronics production worldwide-were wholly created in in the Unites States.
• According to statistics roughly 70 million iPhone, 30 million iPad, and 59 million other Apple devices sold annually are now nearly
entirely produced internationally apart from U.S.
• Some claim that while Apple makes hundreds of dollars each iPhone, paying U.S. employees would only add $65 to each iPhone’s
expense.
• Apples executives feel that the labour force they may access in China has outstanding unique traits compared to those employed in
United States.
• The notion of an edge from abroad can signify that the American worker requires greater leadership, better training, more proper
management, and more motivation.
• The survival of the American worker may be in peril as a result of Apple's reduction of "100% Made in the United States to 10%.”
• Despite having pieces built in South Korea, Taiwan, Singapore, Malaysia, Japan, Europe, and other places, the majority of the
iPhone's design is conducted in the United States.
• The $30 billion in quarterly orders Apple receives from suppliers throughout the world determines their future.
• Apple reported $16.1 billion in revenue during the first quarter of 2014, which may have been influenced by the country's production.
• Perhaps Apple stands as one of the best examples of digital innovations rather than a failure of one country to entirely latch onto a
corporation because it produces some of the most inventive, highly regarded items in the electronics industry.
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Q1: What are the pros and cons for local and overseas labour forces of Apple's
going global? What are the potential political implications for country
relationships?
- One of the most dominant and powerful businesses today is Apple. Like China, the
United States, and other nations. The Apple Company initially operated its operations
in America or the USA.
- A company's decision to relocate jobs from one workforce to another would seem to
depend on a difference in low salaries, however Apple Company shows that this is
overstated at this moment.
- In actuality, paying American salaries would only increase each iPhone's cost by $65
whereas Apple's earnings are typically hundreds of dollars per phone annually.
- The leaders of Apple feel that the inherent qualities of the labour force in China-
which they characterise as flexibility, diligence, and industrial skills--are superior to
those of the labour force in the United States.
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• However, the political ties between the two nations will be ruined for
international trade.
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Q2: As a U.S. corporation, does Apple and its management have a moral
obligation to provide jobs for U.S. employees first? If this is the case, then does
this put international employees at a distinct disadvantage?
• Yes. Since Apple decided to move factories abroad, I believe they are acceptable in
coming to the conclusions and conclusions expressed in the case.
• By doing so, they will gain many advantages, including greater flexibility, more efficient
time management, and better skill expertise.
Moving production abroad, as they noted in the case, was advantageous to them for a
variety of reasons:
- Increased gross earnings and profit margins through lower cost of goods sold.
- Greater or better time management and mobility.
- Increased specialisation among workers.
- Strong technical skills.
- Reduced market labour costs.
- Expertise and resources readily for manufacturing.
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• Given that Apple is one of the most imitated firms in the world, this notion
of a competitive advantage abroad would indicate that the American
workforce requires greater leadership, training, management, and
motivation to be proactive and adaptable.
• It's difficult to conceive that the fact that Western European and
American workers are less adaptive and motivated will not have negative
effects on the future of the American labour force.
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• Strong form efficiency can boost productivity and effectiveness to make their production
plants more efficient.
• The creation of a timeframe and agenda for the employees is suggestion we would
make. It ought to be adaptable and enable minor modifying without harming the producer.
• There are several methods that managers can develop the talent of new hires. The
corporation can utilise the new hires' services more effectively because they are more
adaptable and hardworking than the local workforce.