R&D: Apple is known for its innovative products and that has a majority to do with its CEO Steve Jobs. Power of suppliers – Strong From the company history perspective and the product industry perspective. Threat of potential entry – Weak ASSIGNMENT 2 The relationship between Apple and Foxconn is that Apple outsources the production activity of its products to Foxconn. Definition, Summary Assessment 2 – Case Synthesis: Apple and Foxconn Introduction The consumer electronics magnate Apple Inc. has been accused of labor abuse in its Asian supply chain. This study used an international perspective to analyze how newspapers in the United States and China framed a specific global sweatshop issue: a continuous spate of suicides at the Foxconn Technology Group, a major supplier to Apple, Dell, and Current Position: Internal Analysis April fool’s Day of 1976 would mark the start date of the very powerful Apple Inc. Steve Jobs and Steve Wozniak, two college dropouts, began creating a computer circuit board in a garage. Focus will then be paid on the study of organizational social responsiveness, which includes two basic processes, namely first monitoring external social demands and expectations and then developing internal social mechanisms (Bartol, 2011). The low marginal revenue compels Foxconn to minimize its production cost by cutting wages. Foxconn is the, supply chains. Apple is responsible for this mismanagement, as it is encompassed within Apple’s immediate suppliers. Unit 1: Strategic Management The $600 million factory itself was largely financed by the government, and taxes were eliminated for Foxconn for five years, 20501210 What is meant by the globalization of human capital? Apple has acknowledged that one of its supplier's factories in China violated some of its rules on working conditions, and says it's trying to correct those infractions. Jobs left Apple to find a new company NeXT. The historical perspective of Apple Inc. shows us that they were an innovative company that started the industries of successful computers, music players, phones and many other electronic items we have used over the past thirty years. Growth: Unfortunately, as a response to the IBM PC, Apple introduced the Macintosh in 1984, which proved to be harmful to the company. Mission: Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. If I fulfill my part of the contract, they have to fulfill theirs. For instance, iPhones and iPads. Apple, Foxconn & Manufacturing Strategy Steve Jobs and Apple Computer once built a "factory of the future" in Fremont, California. The company believes that it has treated all its workers equally with, government; the Foxconn factory there provides a case study of exclusive economic incentives provided by the government to the company. PART TWO SUPPORTING CASE Will Foxconn Remain Apple's Top Supplier of iGadgets? The purpose of this paper is to review Apple Inc.’s complete story and to define strategic management as to why it is critical to the success of an organization in meeting its goals and mission. 1. Apple’s challenge With the first manufacturing plant established in Shenzhen, China in 1988, around 450,000 workers are now employed at the Foxconn City, which intends to act as both working and leisure place to the employees. Assessment 2 – Case Synthesis: Apple and Foxconn Introduction The consumer electronics magnate Apple Inc. has been accused of labor abuse in its Asian supply chain. To this, Apple responded in agreement that Foxconns temporary staff number exceeds the standard amount. □ Competitive (Cost/Differentiation) Stated/Implied Strategies It was the latest incident in a long-running series of labor troubles at the company, which supplies popular goods like the Apple iPhone, the Amazon Kindle and the Microsoft Xbox. Strengths ...changes in business models that took place over these periods. The Problem. Read Article Key Apple supplier Foxconn has said that internet connection in its facility in the US has gradually returned to normal after it was attacked by some ransomware. Collective Strength of Five Forces on Profitability: Starting School Age In The Academic Performance At A Tertiary Level Case Study. Apple believes in keeping a place in customer’s heart, the customer loyalty is a great strength to the company. From the case, Foxconn’s workers have been attempted to commit suicide because the work condition in the factories is very terrible. HR: Recruit, train, motivate,... ...UNIT IV A case study of the Foxconn suicides: An international perspective to framing the sweatshop issue ... a major supplier to Apple, Dell, and Hewlett-Packard. On the product industry side, Article dig into the field of personal computer with macintosh, mp3 industry with ipod, music industry with itunes, mobile industry with iphone and app store, tablet industry with ipad. The credit for such a strong relationship between the company and its customers goes to company’s customer service and the nature of products which fulfills the need of today’s stylish people. Protest over their working conditions (low wages, long working hours, inhuman treatment) Apple faced with ethical dilemma. Product innovation is key in competition Product innovation Unique attributes & designs Foxconn founder Terry Gou said that Apple should move its manufacturing out of China. In the span of a year, there were at least 18 attempted suicides, resulting in at least 14 deaths. Television commercials, Print Advertisements, Posters in Public areas and wrap advertisement campaigns have been successful ways of outshining the new product. The main ethical dilemma about the Foxconn is that whether it’s ethical for the company to place the firm’s benefit ahead of employee’s value. Cruz (2013) stated that “poor CSR performance, at any stage of the supply chain process, may damage a company’s most important asset–its reputation” (p. 3995). * Close platform and share between all apple products retains customers to other apple product line. Case Study Foxconn Technology Group. It is impossible to meet such urgent demand which exceeds Foxconn’s regular productivity, so the underpaid employees are forced to, Immigration: Pros And Cons Of Immigration, The Five Idea Of Critical Success Factors In ATP Life Assurance. Apple, Inc. cost of keeping up to date with technology This statement had an immense impact on his company, Apple. In this Apple case study, the aim is to identify the internal as well as the external factors that have an impact on obtaining achieving high performances by Apple. Sculley allowed Apple to recover and gain 8% of the market share, as well as becoming the most profitable in the industry. When Foxconn decided to raise the basic wage of its employees, workers said that they noticed a clear increase in production and their workload, most likely to offset the costs. Apple Incorporation is an American multinational corporation located in California, USA. However, Apple denied the other accusations. Trading as Foxconn Technology Group, Hon Hai Precision Industry Co., Ltd., is a multinational company that manufactures electronics and a major equipment manufacturer supplier to electronics giants like Apple, Sony PlayStation, Blackberry, Microsoft Xbox, and the Nintendo Wii . Not easily copied To ensure the study, according to take advantage of corporate social web on economictimes. Diffusion of technical know-how across more companies and countries Based upon a case study on the outsourcing of production activities by Apple Inc. to the controversial contract manufacturer Foxconn, this paper will discuss whether or not firms have responsibility for the supply chains they choose to utilize. Will Foxconn Remain Apple’s Top Supplier of iGadgets 1 Will Foxconn Remain Apple’s Top Supplier of iGadgets? They have also increased their sales in portable computers for all walks of life due... StudyMode - Premium and Free Essays, Term Papers & Book Notes. Despite this, Foxconn ultimately faced many ethical issues as a supply chain of Apple’s products. Attitudes and lifestyles SWOT analysis for Apple: Apple continues to command a market premium for producing a “better mousetrap” throughout its history. Apple & Foxconn Case Study 2511 Words | 11 Pages. The problem is evaluated based on the Utilitarian theory below - Even though Apple is Foxconn’s biggest buyer, I would try to involve other multinationals and combine our forces to meet the demands of the workers. Apple experienced increased distribution and sales with a creative retail strategy to include online retail sales, allowing tremendous growth in becoming one of the top three PC makers in in the US, yet they consistently were unable to grow their worldwide market share above 3% (Delong, 2006). The Beginning years, 1976 – 1985: The ethical issues that are presented are low working conditions, low, Introduction Acer, apple foxconn was described as it unloaded the impacts on cnn. My core argument is that Foxconn's factory relocations are driven by a set of social relationships created by the multifaceted interactions between the company's industrial organization and China's governance structure. In today’s society, we cannot live without Apple products such as the Pad or IPhone. Product... ...Objectives (Stated & Implied) Complementary strategies Competition is fierce Steve Jobs, a significant stakeholder of the company, claimed that the company was not a sweatshop. X Diversification (Related/Unrelated) 1st to market But the problems still continue. Olive. The forces behind Foxconn's factory relocations can be understood through an analytical study that connects Foxconn's industrial organization to the Chinese governance structure. November 26, 2014 Steady Growth Rate Foxconn: Impact of globalization on labor conditions. To maintain its share in the ever-changing consumer electronics market, Apple has to frequently revise its production forecasts and consequently its orders for widgets. In the past few years Apple and other electronics manufacturers have been in the news for alleged unethical practices carried out by some of their suppliers. □ Retrenchment Apple & Foxconn Case Study 2511 Words | 11 Pages. Stated and Implied Strategies: However, Chinese law does not permit a temporary workforce above 10%. 1. The globalization of human capital refers to the fact that employees are now spread out across the world by their employers. Dominant Economic Characteristics □ Horizontal Integration Pages: 5 (1154 words) Published: August 29, 2017. Broad differentiation strategy Is this inevitable as firms increase their global operations? Apple history is explained in the case history from 1972 – 2006. 1. This paper will examine the case study for Apple, Inc. and provide Strategic Management recommendations of how Apple, Inc. can effectively meet its objective of maintaining a viable corporate strategy that results in steady industry success in worldwide PC markets. Apple was founded in 1976 and they built a computer circuit board named the Apple I. The ransomware attack occurred over the Thanksgiving weekend and the attackers managed to steal unencrypted files from the company before encrypting its devices, reports BleepingComputer. ...It's only a PowerPoint Outline, sorry we didn't actually write a paper, should still be of some help though. Hon Hai Precision Industry Co., Ltd which trades as Foxconn Technology group or as the media calls it Foxconn has been in media limelight recently due to labor problems that have surfaced from the organization. Apple 's success has come at a high cost with regards to safety to the workers of Foxconn, a supplier which makes products for Apple and plenty of other tech giants. "I am urging Apple to move to Taiwan," Gou said in response to a question about whether Apple … Strategic Management Case Study Analysis: Apple, Inc. * Future role as maintaining a innovative leader. Apple And Foxconn Case Study 778 Words | 4 Pages. ), and aggressively pursuing hardware and software updates. The product range includes from I pod, I phone, Mac computers and various services. Due to employees who worked and lived in the manufactory in Shenzhen the working conditions were inhumane. Number of rivals is constant/low Till 1997, Apple brought back Jobs and became the most valuable company in the world in 2012. To be fair, there are Important differences between the two. Strategic Human Resource Management To be more precise, the author would like to study the social responsiveness from a CSR perspective. The group has said that Foxconn has made progress at reducing workers' hours and improving conditions, and that Foxconn and Apple do make an effort to let students know they can resign from Foxconn and still graduate, and link the jobs they do at Apple with their studies” (Adams, 2012). Foxconn: Impact of globalization on labor conditions. Hon Hai Precision Industry Co., Ltd which trades as Foxconn Technology group or as the media calls it Foxconn has been in media limelight recently due to labor problems that have surfaced from the organization. This adds to better targeting to the market and consequently, it is a special concern of company’s CEO. Apple is famous for its attractive and highly prized electronics, including iPhone and iTouch portable devices, iPod and iTunes for music, and iMac and iPad computers. 2) Will Apple get good publicity? The main business of Apple includes designing, development and sales of consumer electronics that includes computer software and electronic hardware. Hon Hai Precision Industry Co., Ltd which trades as Foxconn Technology group or as the media calls it Foxconn has been in media limelight recently due to labor problems that have surfaced from the organization. The ethical issue encompassed in this case is the working environment that Foxconn was subjecting to its employees. Apple Inc.’s competitors were highly successful in the early 1990’s with their mass market in businesses, schools and homes around the world and the ease of communicating across cultures with their computer technologies. The ethical breach had direct or indirect impacts on various stakeholders. Management: Apple Inc. have had their ups and downs to include in depth software/hardware which was difficult for competitors and users to understand and mimic as well as holding face on their computer background with their innovative technologies of the iPod, iPad and iPhone which sparked interest once these innovations took a hold on the market we have seen over the past 10 years or so. Case Study #1: Foxconn & Apple 1. Case Study Analysis * Focused R&D driving innovation & consolidating its market position * Marketing. Based on documents obtained by the New York Times, these benefits are unlike anything else in the world. Marketing 1900 words Implications for functional areas: Apple is perceived as one of the dominant technological and innovative company providing the world with its technology. Foxconn said the protest had involved about 150 of the 32,000 employees at its campus in the city of Wuhan. Foxconn: Impact of globalization on labor conditions. Hit was Foxconn’s manufacturing facility located in Chihuahua, Mexico. They spent $20,000,000 and then closed it after just two years. Profit: Case Study: Harbour City Dim Sum House Inc. Activists in China and the United States revealed that the company was a sweatshop. Android on Mobile OS, Samsung on phone and tablet, Spotify on music, Microsoft on PCs, Amazon on ebooks and tablet. Its original business model was based on selling a computer that could be used straight out of the box with a closed platform. The internet has several articles and controversies regarding the deplorable worker, society are unaware about the rising ethical issues that are presented behind the production of different technologies. PHIL215 Apple Inc.’s current strengths include the highest market share and industry selling percentage of digital music (iTunes), music players (iPod & iPod Touch), smart phones (iPhone) and tablet computers (iPad) all over the globe. A spate of suicides in one of Foxconn’s factories shocked the public in 2010. Customer Service Production: The bundled packages of solely Apple developed hardware and software during the production process became the identity of the products it released. Low differentiation of products Unfortunately, many employees committed … Also mentions ebook industry and icloud. Steve Jobs was removed from his operational role by the board. Part of the Foxconn case study reveals the excessive number of temporary workers the company has. According to the text Strategic Human Resource Management, the concept of Strategic Management is defined as, “the process by which organizations attempt to determine what needs to be done to achieve corporate objectives and, more important, how these objective are to be met” (Mello, 2011, pg.104). Similarly, Apple agreed to help Foxconn develop a counseling center so that workers could vent and express themselves (Weir). [pic] Father Ma Zishan and sister Ma Liqun mourn the death of Ma Xiangqian outside a Foxconn factory in Longhua. Foxconn Technology Group is a subsidiary of Hon Hai Precision Industry Company Ltd, a Taiwanese company which is a major electronics manufacturer catering to famous-name brands including Sony, Apple and Nokia. Foxconn, the Chinese maker of Apple's iPhone, is investigating the death of a packaging plant worker, following a string of 13 staff suicides at its factories earlier this year. Rivalry among competitors – Strong This study used an international perspective to analyze how newspapers in the United States and China framed a specific global sweatshop issue: a continuous spate of suicides at the Foxconn Technology Group, a major supplier to Apple, Dell, and Hewlett-Packard. Case Study: Apple . No surplus of supply as it relates to demand Although it made a breakthrough in the technical design, ease-of-use, and technical elegance, it’s processing speed and lack of compatible software limited sales, lowering income by 62%, and eventually pushing Jobs out of Apple. In 1990 Scully changed the business model to sell their computers at lower prices to get more market share,... ...Apple inc. The […] High profit margins Marketing innovation The paper will also highlight some of the advantages and disadvantages of Apple’s, Assessment 2 – Case Synthesis: Apple and Foxconn, Exploiting Foxconn’s fear of contract termination, Apple offers low prices for widgets which reduce its own expenditure but slash Foxconn’s profit margin. * Patent suits from Samsung, HTC, Android and so on. They constantly gave Apple Inc. a run for their money with their innovative/similar music players, portable computers, smart phones and desktop operating systems. This case study on Foxconn Factory’s Business Model was written and submitted by your fellow student. Apple Inc. (hereafter Apple) was established in 1977 and is registered on the NASDAQ Global Select Market exchange. The Washington D.C.-based Fair Labor Association is currently carrying out an Apple-sanctioned extensive study of work conditions at Apple's top eight suppliers in China, including Foxconn, the world's largest manufacturer with close to 1.2 million workers in China alone. Apple, an American multinational corporation, better known for iphone and ipad, is facing an ethical dilemma having involvement of its biggest supplier, Foxconn, who is china’s leading employer with 1 million employees. Apple board later fired Jobs and gradually went near bankruptcy. 1) Will the problem of suicide threats be gone? Criminals reportedly encrypted 1,200 servers, downloaded 100GB of data and deleted between 20-to-30TB backups. Changing societal concerns Scully was an operations and marketing expert from Pepsi. Apple supplier Foxconn has reportedly fallen victim to a ransomware attack, with hackers demanding $34 million (£25.5 million) in Bitcoin from the manufacturing giant, according to BleepingComputer. ... Apple’s issues with Foxing haven’t received coverage either of the scale or the Intensity that Nikkei dealt with at the height of the sweatshop scandal. Companies branch out because labor costs are cheaper and productivity is faster, For such a dedicated staff as the one at Foxconn, its employees have been taken advantage of by management. In 1981 IBM introduced a Microsoft's DOS operating system and it’s an open system and easily cloned, whilst a lack of compatible software on Macintosh (Mac) made net income fall 17%. “Value Creation.” Apple has participated in ethically-motivated measures to fix these cases of mismanagement while improving working conditions, but it still, reviewing its development history. From the above-mentioned cases, the case of Foxconn the primary contractor of Apple got more attention in the media because of the harsh conditions faced by the employees working for the contractor. As a result, some workers have committed suicide, Case study: Apple iPhones - Not "Made in America" Both Foxconn and Apple have expressed condolences about last week's deaths, but the former has yet to respond to an email for further comment. For instance, the Zhengzhou government spent $1 billion dollars on housing for “iPhone City’s” six million people, most of them Foxconn workers. The main goal was to bring an easy-to-use computer to the market. So, what went wrong in 1984? Overall Attractiveness &Competitive Environment Citizenship: The ethical issues were concerning the 2010 suicides in the Chinese Foxconn factories, which are the main suppliers for Apple, and the IPhone5 strikes that occurred in the beginning of October. Apple, Inc. Case StudyBUSI 400-003September 24, 2008 Buyer loyalty The current working conditions, low wages, and protest in term of committing suicide put the company into ethical dilemma. Offensive 5) Will Apple lose profit? In 1985 John Scully was appointed as CEO. Please join StudyMode to read the full document. Apple has evolved from a leading developer of personal computers to the leader in innovative technology by expanding its business model to include digital music, digital TV and mobile phone platforms. Southwestern Vermont Health Care Case Analysis. With workers conditions in developing country, workers are working without break for long hours and overload task with lower wage. Current Situation: * Labor issue in China Foxconn has been involved in several controversies, relating to how it manage… Industry unattractiveness The following part of this research will make two case studies to further explain the theory abovementioned. 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