case study
Case study: Apple iPhones - Not "Made in America"
1. What is meant by the globalization of human capital? Is this inevitable as firms increase their global operations?
The globalization of human capital refers to the fact that employees are now spread out across the world by their employers. This including, the companies, employed, unemployed, stockholders, consumers, contractors, supply chain, firms and economies. Companies branch out because labor costs are cheaper and productivity is faster.
It is inevitable if firms increase their global operations because every country has something different to offer, something new, and without the current innovation being promoted to the market, the company will start to lose its edge on competition.
2. How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
Cost and Human Capital is the most important consideration for Global Companies. When President Obama’s inquired about Apple brining the job back to US, it was practically not possible for Apple. The break down in the case study was that it cost a total of $179 to produce an IPhone and it retailed at $500 leaving a profit of $321. This would mean more profit for the global company.
For Global company price and profit is the most important consideration to stay competitive. They can use the cheap labor in other countries to be price competitive
This gave the perception that Apple did not care about its country. It also gives the perception of greed which a global company can face.
3. Comment on the Apple executive's assertion that the company's only obligation is making the best product possible. "We don't have an obligation to solve America's problems."
All though it is a harsh comment but I think it makes sense. Apple is a Global company with its offices around the world. It is in business to make money. It is not possible for Apple to solve America’s problem. Apple is just trying to be the
1. What is meant by the globalization of human capital? Is this inevitable as firms increase their global operations?
The globalization of human capital refers to the fact that employees are now spread out across the world by their employers. This including, the companies, employed, unemployed, stockholders, consumers, contractors, supply chain, firms and economies. Companies branch out because labor costs are cheaper and productivity is faster.
It is inevitable if firms increase their global operations because every country has something different to offer, something new, and without the current innovation being promoted to the market, the company will start to lose its edge on competition.
2. How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
Cost and Human Capital is the most important consideration for Global Companies. When President Obama’s inquired about Apple brining the job back to US, it was practically not possible for Apple. The break down in the case study was that it cost a total of $179 to produce an IPhone and it retailed at $500 leaving a profit of $321. This would mean more profit for the global company.
For Global company price and profit is the most important consideration to stay competitive. They can use the cheap labor in other countries to be price competitive
This gave the perception that Apple did not care about its country. It also gives the perception of greed which a global company can face.
3. Comment on the Apple executive's assertion that the company's only obligation is making the best product possible. "We don't have an obligation to solve America's problems."
All though it is a harsh comment but I think it makes sense. Apple is a Global company with its offices around the world. It is in business to make money. It is not possible for Apple to solve America’s problem. Apple is just trying to be the
References: Deresky, H. International management: managing borders and cultures, New Jersey: Prentice Hall