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Question: Use the Internet and/or Strayer Learning Resource Center to research a U.S.-based company that ma...

Use the Internet and/or Strayer Learning Resource Center to research a U.S.-based company that manufactures technology products. Recommend one (1) approach that your selected company can take in order to lower the direct labor costs of technology products while remaining competitive with global markets. Provide a rationale for your recommended approach. Imagine that you are a Chief Financial Officer (CFO) of a company. Recommend two (2) actions that you could take regarding the company’s supply chain to reduce manufacturing costs of direct materials.

Answer 1

The company I'd use as an example would be Apple Inc.; with the iPhone 7 being released this year, Apple wants to return back to prominence in the market as sales dropped a bit in 2015. Most companies would increase sales by launching a huge promotional campaign for their new item, or cutting some of their employees, but a different route for Apple would be to drop the labor cost of Apple's products. " Apple is requesting its suppliers produce as many as 78 million new iPhones this year, according to a report by Taiwan’s Economic Daily News. The company typically refreshes its flagship smartphones once a year, with the 2016 models expected in September and likely to be called the iPhone 7 and iPhone 7 Plus. Based on conversations with sources at Apple’s main suppliers, the report indicated the company will keep Taiwanese contract manufacturer Hon Hai Precision Industry, also known as Foxconn, as its main supplier, while it also boosts its demand at Foxconn’s compatriot firm, Pegatron. The report came a week after it was revealed that both Foxconn and Pegatron began hiring extra workers a month earlier than it has in previous years (Gilbert, 2016.) A measure to lower labor costs would be to cut some workers and slightly increase the workhour around an additional hour or two. The downside is the potential for the public to view this as tough and laborious on the workers as they are not the most well-paid employees in the world. Another approach would be to purchase slightly cheaper good to mass produce the iPhones with, but you run the risk of numerous faulty equipment and malfunctions that would lead to lawsuits and refunds.

A measure I'd use as CFO would be to order the goods in bulk; having loads of goods and items in storage to produce and create products is valuable as I the company wouldn't have to constantly order and pay for the shipments on a weekly basis. Costs are lower and profits will increase and the supplies will increase with more goods to produce. Another idea is working trade deals and partnerships with other corporations; while the profits may not be the most, this will give the company additional goods and a possible parter to purchase items at a lower price. At a cheaper price, the saving costs could be used to give an extra raise to employees or improve conditions in the corporations.

Refernece: http://www.ibtimes.com/iphone-7-apple-inc-looking-produce-almost-80-million-new-smartphones-despite-2372866