International Management

Case Study

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CASE STUDY Apple iPhones-Not "Made in America Apple of the land.com There are and rewards for anyone. The local is a range of women and lonen wieder der Confirm pand down the supply chain.mpled up and deli their comme la Fuary 2011, sem w Apple Store Why Apple could not being lock all the next to pride in the United States The to high-tech practs made bych Agile including the for Apple 200 million iPhone of M2015 as well as of Pahadow Apple Watches mer bruke dwa rail of Applies the emple, and time the sale comes from hendes facturing: 530 ofis and from Germany SSS from Chi semiyle, Sciedad Il from the Thai for parts and assembly brat leaving Apple, the more Linaod Sute press For the first quarter of 2012. Apude 513 hii pot Although Apple directly employs ant 4330s the Land Suites and 2.000 ovencar an additional 700.000 people to build and head Apple's other products in Asia and Sophisticated Consemed in Che Son of the are.com to the web company Foc'Longhy campus Shoes for sample who 300.000 employees in der and churs Soy Pass Del componer Force Technology is largo de country, China's largest esporter les an estimated to be de mer electronics, incluing forces och A Dell Heren Packard Nie Nokia, and Samom. No nither factories in the world have the acturing sec The answer to President Obama ample as the cheaper labor over Apple's sectes de recht Make USA competitie wey for them bec America de come with the industrial i hand and flexibility that can be found in Foxconn about what corporate American to me the of thousands of Chinese werkers being used in the gardened her ces and within a few days being able to padece 10 hay for p in US stories. Although the cost of the percentage of an iPhone advantage and cost saving in China is in the management of glycandal component parts and manufacturing from a factores de primary tion Apple maintains that the large number of ander skilled whole aced on short notice in China simply not madily avbe in the edhe factories with the cale speed and flexibility to cha big ch.com Auge tives per the example of visiting a factory to consider the could do they cut the glass for the ice's creen. Upon their wing the way new the contract. Fareed Zadar, in Timisht peller Chinese government des sere cung the down, Apple macht: An Ambro How where Fisco 3010, reportedly amable to the din bed hours for very low pes Apple was der some pres the policy. Foscommend and ully ring utilpatch people Apple does have app code of conduct. In January 2012. Apple joined the Fair Labor Association (FLA), the first technol- ogy company to do so, and asked the group to do an independent assessment of conditions at its major factories. This move followed the company's own report that documented numerous labor violations, including employees working 60-hour workweeks and not being paid proper overtime. A few days after the FLA started its investigation, Foxconn said that it would in- crease salaries for some workers by 16 percent to 20 percent-to about $400 a month before overtimeand that it would reduce overtime. Although this is encouraging news for workers' rights, it should be noted that Apple and other contractors are known to allow only the slim- mest of profits to its suppliers, which encourages the suppliers to try anything to reduce their costs, such as using cheaper and more toxic chemicals or making their employees work faster and longer "The only way you make money working for Apple is figuring out how to do things more efficiently or cheaper," said an executive at one company that helped bring the iPad to market. "And then they'll come back the next year and force a 10 percent price cut." China is being forced to take notice of such problems, and labor is gaining some ground; the issue then is that firms have already started to move jobs to other countries with lower wages. SEVEN 1-15. How much extra are you prepared to pay for an iPhone if assembled in the United States? 1-16. How much extra are you prepared to pay for an iPhone assembled in China but under better labor conditions or pay? What kind of trade-off would you make? 1-17. To what extent do you think the negative media coverage has affected Apple's recent decision to ask the FLA to do an independent assessment and the subsequent decision by Foxconn to raise some salaries