Question

CASE STUDY Apple's iPhones-Not "Made in America" and most Apple has become one of the best- h, al operation in part ahrough The globalization of human c There are risks and rewards for all in a global economy in a range of contractors, firms winners and losers around the world companies and their stockholders, res · s up and down the supply chain, employed people, and unemployed people tie In February 2011, President Obama asked Apple's Steve Jobs(nowdee why Apple could not bring back all the jobs it used to provide in the United States. The jobs most high-tech products made by companies such as Dell, HP, and Apple have now c examplepple Watches. Time broke down a retail price of $500 for Apple's on ple, and estimated that $61 worth of value comes from Japan, with its high-end tech manufacturing: $30 of value is added from Germany: $23 from South Korea; 57 from Chinese overveas, including those for Apple's 700 million iPhones (as of March 2015) as well as iPads and now issue then l from the United States. Those inputs total s 179 sembly lines; $48 from unspecified sources; and S11 for parts and assembly abroad, leaving Apple, the inventor in the United States, a profit of $3212 the first quarter of 2012, Apple made $13 billion in Although Apple directly em and 20,00 ploys an estimated 43,000 in the United States overseas, an additional 700,000 people engineer build, and assemble iPads, Apple's other products in Asia and Europe. Sophisticated component parts outsourced in countries are assembled in China. Some of those are contracted to the Taiwanese-headquarte company Foxconn's Longhua factory campus in Shenzhen, for example, where more Ou employees live in dorms, eat on site, and churn out iPhones, Sony PlayStations, ané Dell computers. Foxconn Technology, with 1.2 million employees in plants throughout country, is China's largest exporter and assembles an estimated 40 percent of the world's con mer electronics, including for customers such as Amazon, Dell, Hewlett-Packard, Ninten Ser Bal Blo Nokia, and Samsung. No other factories in the world have the manufacturing scale of Foxconn answer to President Obama's question is not as simple as the ability to acquire cheape overseas; Apple's executives and those at other high-tech firms claim that "Made in Sa Po labor U.S.A" is not a competitive strategy for them because America does not compare favorably with the industrial skills, hard work, and flexibility that can be found in companies such a Foxconn. Questions about what corporate America owes to Americans are met with the example of thousands of Chinese workers being roused in the night to accommodate a redesigned iPhone screen and, within a few days, being able to produce 10,000 iPhones a day- a feat not possible in U.S. factories. Although the cost of labor is a small percentage of an iPhone's cost, the major advantage and cost saving in China is in the management of supply chains and rapid access to component parts and manufacturing supplies from various factories in close proximity. In addi- tion, Apple maintains that the large number of engineers and other skilled workers who could be accessed on short notice in China simply are not readily available in the United States; nor are the ries with the scale, speed, and flexibility that such a high-tech company needs. Apple exec- tives give the example of visiting a factory to consider whether it could do the necessary work to cut the glass for the iPhone's touchscreen. Upon their arrival, a new wing of the plant was already being built "in case you give us the contract." Fareed Zakaria, in Time, maintains that this con- petitive edge is gained largely through Chinese government subsidies and to boost domestic manufacturing. In the end, however, Apple maintains that: We don't have an obligation to solve America's problems. Our only obligation is making the 1. best product possible. However, after a number of suicides at Foxconn in 2010, reportedly attributable to the poor working conditions and excessive hours for very low pay, Apple was under some pressure from negative publicity; subsequently, Foxconn raised wages, retained counselors, and liter ally strung nets from its highest buildings (to catch people). Apple does have a supplier

Answer 1

Answer 13:- In the views of Apple, the main responsibility of the company is towards the customer and the shareholders by earning maximum profits. This results in the brand image of the company of producing the best products in the industry. In the opinion, it is the responsibility of the government rather than the company to generate the employment opportunities in the industry.

Answer 14:- The main obligation of the company towards the shareholders is to provide hem the maximum return on their investments and facilitating greater satisfaction to the customers.

Answer 15 & 16:-  If the iPhone is assembled in the USA, I can pay up to $ 20, at the same time if the iPhone is produced in China under the better working condition to the workers, I can up to $25

While buying any smartphone, the most important factor to consider is its price. In the industry where there is a lot of competition, the competitive pricing can result in competitive advantage for the producer of the smartphones. If the Apple iPhone offer greater product differentiation and the latest technology, customers will pay more price. The main tradeoff in this situation will be to pay more for better service and product quality.

                                                     

Answer 17:-There is a greater impact on the decision made by Apple due to a negative reaction. The importance of sustainable business practice has been identified by many firms. The more attention is paid towards the fair employee treatment which is even given higher priority by the shareholders and the customers. This can be done by paying more to the customers. We can expect that in the case of outsourcing, Apple will promote fair treatment of employees with their contract with Foxconn.