Question

In: Operations Management

DO YOU THINK APPLE IS JUSTIFIED IN DRAWING THE OBSERVATIONS AND CONCLUSIONS EXPRESSED IN THE CASE?...

DO YOU THINK APPLE IS JUSTIFIED IN DRAWING THE OBSERVATIONS AND CONCLUSIONS EXPRESSED IN THE CASE? WHY OR WHY NOT? DO YOU THINK IT IS GOOD OR HARMFUL TO THE COMPANY THAT ITS EXECUTIVES HAVE VOICED THESE OPINIONS

IT WASN’T LONG AGO THAT PRODUCTS FROM APPLE, PERHAPS THE MOST RECOGNIZABLE NAME IN ELECTRONICS MANUFACTURING AROUND THE WORLD, WERE MADE ENTIRELY IN AMERICA. THIS IS NOT SO ANYMORE. NOW, ALMOST ALL OF THE APPROXIMATELY 70 MILLION IPHONES, 30 MILLION IPADS, AND 59 MILLION OTHER APPLE PRODUCTS SOLD YEARLY ARE MANUFACTURED OVERSEAS. THIS CHANGE REPRESENTS MORE THAN 20,000 JOBS DIRECTLY LOST BY U.S. WORKERS, NOT TO MENTION MORE THAN 700,000 OTHER JOBS AND BUSINESS GIVEN TO FOREIGN COMPANIES IN ASIA, EUROPE, AND ELSEWHERE. THE LOSS IS NOT TEMPORARY. AS THE LATE STEVEN P. JOBS, APPLE’S ICONIC CO-FOUNDER, TOLD PRESIDENT OBAMA, “THOSE JOBS AREN’T COMING BACK.”
AT FIRST GLANCE, THE TRANSFER OF JOBS FROM ONE WORKFORCE TO ANOTHER WOULD SEEM TO HINGE ON A DIFFERENCE IN WAGES, BUT APPLE SHOWS THIS IS AN OVERSIMPLIFICATION. IN FACT, PAYING U.S. WAGES WOULD ADD ONLY $65 TO EACH IPHONE’S EXPENSE, WHILE APPLE’S PROFITS AVERAGE HUNDREDS OF DOLLARS PER PHONE. RATHER, AND OF MORE CONCERN, APPLE’S LEADERS BELIEVE THE INTRINSIC CHARACTERISTICS OF THE LABOR FORCE AVAILABLE TO THEM IN CHINA—WHICH THEY IDENTIFY AS FLEXIBILITY, DILIGENCE, AND INDUSTRIAL SKILLS—ARE SUPERIOR TO THOSE OF THE U.S. LABOR FORCE. APPLE EXECUTIVES TELL STORIES OF SHORTER LEAD TIMES AND FASTER MANUFACTURING PROCESSES IN CHINA THAT ARE BECOMING THE STUFF OF COMPANY LEGEND. “THE SPEED AND FLEXIBILITY IS BREATHTAKING,” ONE EXECUTIVE SAID. “THERE’S NO AMERICAN PLANT THAT CAN MATCH THAT.” ANOTHER SAID, “WE SHOULDN’T BE CRITICIZED FOR USING CHINESE WORKERS. THE U.S. HAS STOPPED PRODUCING PEOPLE WITH THE SKILLS WE NEED.”
BECAUSE APPLE IS ONE OF THE MOST IMITATED COMPANIES IN THE WORLD, THIS PERCEPTION OF AN OVERSEAS ADVANTAGE MIGHT SUGGEST THAT THE U.S. WORKFORCE NEEDS TO BE BETTER LED, BETTER TRAINED, MORE EFFECTIVELY MANAGED, AND MORE MOTIVATED TO BE PROACTIVE AND FLEXIBLE. IF U.S. AND WESTERN EUROPEAN WORKERS ARE LESS MOTIVATED AND LESS ADAPTABLE, IT’S HARD TO IMAGINE THAT DOES NOT SPELL TROUBLE FOR THE FUTURE OF THE AMERICAN WORKFORCE. PERHAPS, THOUGH, APPLE’S SWITCH FROM “100% MADE IN THE U.S.A.” TO “10% MADE IN THE U.S.A.” REPRESENTS THE NATURAL GROWTH PATTERN OF A COMPANY GOING GLOBAL. AT THIS POINT, THE IPHONE IS LARGELY DESIGNED IN THE UNITED STATES (WHERE APPLE HAS 43,000 EMPLOYEES), PARTS ARE MADE IN SOUTH KOREA, TAIWAN, SINGAPORE, MALAYSIA, JAPAN, EUROPE AND ELSEWHERE, AND PRODUCTS ARE ASSEMBLED IN CHINA. THE FUTURE OF AT LEAST 247 SUPPLIERS WORLDWIDE DEPENDS ON APPLE’S APPROXIMATELY $30.1 BILLION IN ORDERS PER QUARTER. AND WE CAN’T FORGET THAT APPLE POSTED $16.1 BILLION IN REVENUE FROM THE FIRST QUARTER OF 2014, PERHAPS IN PART BECAUSE ITS MANUFACTURING IN CHINA BUILDS SUPPORT FOR THE BRAND THERE.
AS MAKERS OF SOME OF THE MOST CUTTING-EDGE, REVERED PRODUCTS IN THE ELECTRONICS MARKETPLACE, PERHAPS APPLE SERVES NOT AS A FAILURE OF ONE COUNTRY TO HOLD ONTO A COMPANY COMPLETELY, BUT AS ONE OF THE BEST EXAMPLES OF GLOBAL INGENUITY.

Solutions

Expert Solution

Q1.

ANS: The given case study is mainly based on the significance of skills and industrious employees and their contribution to the development in the business gobally.

The justification of the Apple lies in a fact of adopting overseas employees for their operation rather than depending upon their home market. In the case study it is clearly stated that Apple is considered to be one of the famous manufacturing companies of the electronics in USA. Due to the passage of time, the company expanded gobally to fuilfill the huge demand generated acroos the globe. It is mentioned in the case study, more than 70 million I-phones, 30 million iPads and 59 million other Apple products were manufactured in host country. It has also been that global operation has significant impact on the economical development in the United states and significant job loss by US workers. It can be also assumed that the major shift in job transfer from the United states to other countries is measured due to the difference of wages. Moreover, it is true skills and employees competance cannot be neglected for Apple being transforming jobs from their home country to other parts of the world. On the other hand, the leader of the Apple and their executive believed that the real value of workforce were available in China with required employees competance and skills.

Yes I beleive the Apple's justification in drawing the observation and conclusions were based on skills and competancy of employees in other country. It is beleived that Apple is considered as one of the leading brand in manufacturing of electronic goods and services. I recommend United states must think about people and their skills and ability for the industrial growth within their country.

Concerning, the opinion of Apple's Executives and leaders I believe it Highlights a clear picture considering the real value of workforce avaiable in china. They have higlighted United states skills defecit that made them to expand their operation outside their home country. It is importatnt that United states should focus on developing skills and ability of their workforce to be in competitive position in the global market. The opinion of their Executives should be taken in a postive manner rather to improve their position in the global market.


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