Academic 1 case study based assigment done

CASE STUDY APPLE GOES GLOBAL

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Table of Contents Introduction:....................................................................................................................................3 1. Advantage and disadvantage of using overseas employees when company goes global:...........3 2. Apple’s justification in drawing the observation and conclusion expressed in case:..................5 3. Proposition that United States has a skills deficits:.....................................................................8 4. Apple’s business philosophy and practices and recommendation for developing competitive advantage in marketplace:.............................................................................................................10 Conclusion:....................................................................................................................................12 Reference list.................................................................................................................................13

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Introduction: The current study deals with the “Case of Apple Goes Global�. The primary of focus of this particular study is to understand the advantage and disadvantage of using overseas employees and Apple’s justification in drawing the observation in the case study. On the other hand, the study also paid much attention on proposition that U.S. has a skill deficit. The study also deals with business philosophy and practices of Apple in marketplace.

Apple Inc is addressed by Apple, is one of the leading American Multinational Technology Companies. The company was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Apple is primarily concerned in providing computer hardware and software, electronic gadgets and digital distribution. The company has more than 455 Apple stores located at different parts of countries across the world. Mac, iPad, iPhone, iOS and many more are the products of the Apple. The company has more than 98,000 employees and operating income of the company measured by the years of 2014 is US$52.502 billion (Apple, 2015).

Figure 1: Logo of Apple Inc (Source: Apple, 2015)

1. Advantage and disadvantage of using overseas employees when company goes global: Watson (2009, pp-57) stated that different types of business firms adopt different types of staffing strategy in global market. It has been seen that three types of the staffing strategies implemented by the company when entering in the overseas market. These all staffing strategies have their own advantage and disadvantages. Home-country national strategy is considered as 3

the first staffing strategy adopted by the company. In this strategy, company generally uses employees from the home country to live and work in the country. Czinkota et al. (2009, pp-89) opined that the individuals are generally called expatriates.

According to Daniels and Radebaugh (2009, pp-68), host country national strategy is also considered as one of the effective staffing strategies that a company adopts when entering into global market. In this strategy, the employees were generally born from the country in which company is operating its business. Hill (2011, pp-78) argued that third country national strategy is also regarded as a kind of staffing strategy in which employees are generally belong to entire world, host and home countries. From the case study, it has been noticed that more than 70 millions iPhones, 30 million iPods and 59 millions Apple others products sold yearly are manufactured in the others countries like China. It has been also seen that more than more than 20,000 jobs are also lost by the U.S. workers due to many reasons.

Apple has adopted third country national strategy while entering in global market. The company has faced different types of advantage and disadvantage of using overseas employees in its global business operation. It has been noted that for the global business, using host country national staffing strategy is considered to be very effective for gaining more and more competitive advantage in market place.

Advantages: Chowdhury (2012, pp-89) opined that there are so many advantages associated with using overseas employees by the company when entering in the global market. One of the major benefits is that languages barrier is eliminated to great extent. From the case study, it has been that Apple has used employees from China to great extent in order to make communication effective within the country. It has been also noted that majority of the Apple’s products are now manufactured in China. The company has recruited Chinese employees as they are good at their own culture and also for increasing the productivity at workplace.

One of the other hand, Filippetti (2011, pp-79) opined that using overseas employee is also very effective in understanding local rule and regulations. It goes without saying the understanding the rule and regulation of the local market is very essential for operating the business in the market. Apple for its global business operations uses host country employees as they are well known about the rules and regulation of the market. On the other hand, Fulmer (2012, pp-46) 4

argued that using overseas employees for the global operation also reduces costs of visas and hiring. It is noted the company has to pay huge of amount of visas changes for the home employees sent to the host countries for the business perspective. As per the comprehensive of understanding of the case study, it has been figured out that Apple generally uses the employees of host countries in order to increasing the profitability and reducing the extra expense like hiring cost of visas.

Disadvantages: Hitchner (2009, pp-873) stated that there are so many disadvantages of using overseas employee while entering in global market. One of the major problems and issues are mainly associated with management of the company. It is a considerable fact that managers of host country cannot understand the business goals and objectives as well without the proper training. Mehanna (2009, pp-57) opined that social and cultural values of different countries are different as per the people life and living standard. The management of the company in the host country must have to understand social and cultural values in order to create goals and objectives of the company. Stuenkel (2015, pp-256) commented that one of the major and considerable disadvantages of using overseas employees lies in fact of the creating a perception of “us versus them”. The conflict rises among the employees on the basis of countries and these conflicts results in less productivity at workplace.

From this above discussion, it is concluded that that using overseas employees by the company at the time of entering in the global market have both advantage and disadvantages. It has also been seen that Apple has mainly adopted third country national strategy as a staffing strategy for dealing its business in the global market. On the other hand, it is also figured that Apple’s use of the staffing strategy also impact on the profitability of company. It is clearly mentioned in the case study, paying Unites States wages would add $65 to each and every iPhone product expense. On the other hand, average profit of Apple is considered as hundred dollars per phone.

2. Apple’s justification in drawing the observation and conclusion expressed in case: Brenda M. and Hy (2009, pp-57) stated that business firms generally needs skills and competent employees in order to contest with its competitors in global market. The given case study is mainly based on the significance of the skilled and industrious employees and their contribution to the development of the business globally. The justification of the Apple lies in a fact of the 5

adopting overseas employees for its business operations. In the case study, it is clearly discussed that Apple is considered to be one of the famous manufacturing companies of the electronics in United States. Due to the passage of time, when company continued to enter into the global market, majority of the Apple’s products sold yearly are generally manufactured in the overseas country. It is mentioned that case study, more than 70 millions iPhones, 30 millions iPhods and 59 millions Apple’s products were manufactured in host country.

It has been also seen that, overseas business of the Apple has major impact of economical development of United States and reduction of employment in the home country. As per the record of the case study, more than 20, 000 jobs are directly lost by United States due to the global business of the Apple. On the other hand, more than 700,000 others jobs are given into the other countries such as Asia, Europe and others countries. As per the deep understanding of the case study, this total loss of jobs is not temporary; it is process of the continuation and will also happen for this future perspective. The late Steve, the co-founder of Apple Inc clearly mentioned in the case study, “Those jobs are not coming back”.

Carl (2009, pp-47) pointed that the transfer of jobs from United States to others countries is measured due to the difference of wages. Most of thinkers and analysts have given critical perception towards the reason of this transformation of jobs. Chorng et al. (2010, pp-89) argued that how wages was the primary reasons for Apple to transformation of jobs to the overseas market, but skill and competency of employees are also considered to be the major one. In the case study, it is cleared said that most of the executive of the Apple said that Chinese employees are pretty much skilled and competent at work and they are more innovative in making innovation in product. One of the executive told that “there is not American plant that can match to the skills of China”.

On the other hand, leader of Apple had a prior consideration that real value of labor force available in China. The leader of Apple also believed that people of China are pretty much skilled, flexible and industrious. They are also competent at innovation of products. On the other hand, different types of the executive of the Apple have presented different types of thoughts and ideology. One of the executive told a story of “faster manufacturing process of China”. Just because of Apple is regarded as one of the most of imitated companied across the world. This classic perception provides a comprehensive ideas and knowledge about the skills and 6

competency development of the United States. Apart from that, leader of the Apple also pointed out that United States has skills deficit.

United States must think about development of skills and ability of people for increasing the jobs and reducing the rate of unemployment. In the case study, it is stated that majority of Apple’s products are manufactured in China as the country is pretty much aware about the quality development of individuals. On the other hand, it is also figured out from the given case study, people of United States are less motivated towards the works. They are also regarded as less adaptable. As per the knowledge and ideas gained from the case study, it is noted that American workforce is under the trouble for the future perspective.

Chun and Soo (2009, pp-67) figured out that Apple has switched its 100% business into the overseas market. However, it is a considerable fact that Apple has designed its iPhone products for people of United States., but now the product is sold out across the world. The products manufacturing units or plants are also established into the different parts of the country across the world. This perception of Apple has major on the business scenario of United States.

Brenda and Hy (2009, pp-89) pointed out that Apple has more than 43,000 employees in United States, but the company is dealing its business across the world with large numbers of the employees. Due to global business, Apple has adopted host country national staffing strategy in order to increasing the profits margin on products and to under the local rule and regulation of the country in best proper ways.

Conclusion of Apple’s justification must be made as per considering value of skills and competency of employees in the country. It is noted that Apple is mainly considered as one of the leading brand name in the manufacturing of electronic products and service. The leader of the Apple appreciated that workers and employees of China as they are pretty much skilled and industrious at workplace. They are really very innovative and their skills and potentiality meet to the demand and needs of Apple in global market. United Stated must think about people and their skills and ability for the industrial growth within the country.

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3. Proposition that United States has skills deficits: Stuenkel (2015, pp-69) opined that skills and competency of employees do make a great sense to the creating of innovation. In the case study, it is mentioned that Apple is generally known as innovation electronic product. Since long time, Apple is mainly recognized as one of the greatest electronics manufacturing company in the United States. Daniels and Radebaugh (2009, pp-56) argued that there are so many criticism and arguments made over the subject of skills deficit of United States. Most of the thinkers and authors have stated that due to transfer of the jobs from one place to another place are the major issues and challenges for Apple.

In the initial stages, it is mainly recognized that transfer of jobs or manufacturing of products of Apple in the overseas countries took place due to wages of employees. But in the later phase, it is seen that skills and competency become the major threats for Apple in United States. The leader of Apple generally believed that intrinsic values and characteristics labor forces are available in China. In the case study, it is also mentioned that flexible and industrial skills are superior to the United States in China. On the other hand, majority of the Apple’s executives in China used to tell a story regarding the fastest manufacturing process of the products in China, which is becoming the stuff of legend of the company.

Apart from that, there are so many quotes mentioned in the case study, which provide comprehensive ideas and knowledge about skills deficit in United States. So many workers in China have given different type of perception about the skills deficit in U.S. One of the workers has stated that there is not any American plant that can match to the productivity of China. On the other hand, other worker said “The speed and flexibility is breathtaking”. Apart from that, leader of the Apple also commented that “We should not be criticized for using Chinese workers”. Watson (2009, pp-457) opined that skilled and competent employees are supposed to be more productive at workplace and are also able to deal different types of issues and challenges as per their own understanding and comprehensives.

Apple has found bulk of skilled and highly qualified employees in China, which meet to the goals and objects of the company in real sense. It is clearly mentioned in the case study, the United States has stopped producing people will competencies and skills that Apple actually needs for achieving its goals and objectives. On the other hand, Apple is considered as one of the most famous companies in United States. However, the company has expanded its business in 8

the overseas market due to reducing the market competition in global market. The concept of skills deficit in United States was generally measured in term of ability to work efficiently and make an innovation. The leader of Apple of clearly stated that U.S. has not productive and skilled employees, which meet to the demand and objectives of the company.

The leader of Apple was pretty much scarified with the skills and competencies of Chinese employees. They proved to be very keen and innovative in expanding the business of the Apple globally and giving a distinctive shape of development of the company in the overseas market.

Daniels and Radebaugh (2009, pp-890) opined that argued that productivity of Chinese employees generally depends upon their culture values. It has been pointed out that China’s culture values are mainly based on the collectivism and individualism. People are pretty much supportive to each other and like to share their knowledge to their subordinates for increasing their skills and competencies.

As per the comprehensive understanding of given case study that says “Apple Goes Global�, it is cleared that there is lack of the skills and abilities in employees in United States. On the other hand, leader of Apple admitted that employees of the Chinese are supposed to be pretty much productivity and they have keen imagination for developing in electronics products. As Apple is well known brand for the products innovation, employees or works of Chinese have given a new dimensions to Apple in the area of the information technology. Czinkota et al. (2009, pp-45) argued that proposition of skills deficit in United Sates proved to right as per doing the detailed study of case of global Apple.

Most of the thinkers and authors have presented varieties of the ideas and conception about the proposition of the skills deficits in United States. Daniels and Radebaugh (2009, pp-67) commented that although U.S. has skilled and highly qualified people, but their competencies failed to draw the attention of the leader of Apple to a great extent. On the other hand, Hill (2011, pp-56) argued that employees from U.S. are pretty much productive and skilled, but the wages that they demand for works cannot be afforded by the management of the Apple. Apart from that, Daniels and Radebaug (2009, pp-784) pointed out that using of overseas employees like Chinese employees proved to be good for the profitability of company and increasing the competitiveness in the current business market environment. The utilization of human resource of China by Apple for the global business perspective was considered to be very effective.

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From the above discussion, it is cleared skills and competency of Chinese employees are much better than United States. In this case study, it is mentioned that employees from China were pretty much productive and innovative at workplace and they are also more competent in compression to United States.

4. Apple’s business philosophy and practices and recommendation for developing competitive advantage in marketplace: From the case study, it is clear that Apple has adopted unique and simple philosophy for increasing their brand value in the global market. The company has generally focused on the skilled and competent employees in order to make a something different in products with its competitors in marketplace. Daniels and Radebaugh (2009, pp-78) stated that Apple stands at top in the manufacturing of electronics products across the world. The company has occupied this dignified place in the overseas market due to its unique and simple philosophies and practices.

Apple has adopted different types of philosophies and practices for increasing its brand value in global market. From the case study, it has been noticed that making innovation in products as per the needs and demands of the consumers in marketplace is considered as one of the best marketing philosophies and practices of Apple for the global business (Daniels and Radebaugh, 2009, pp-48).

Jones et al. (2010, pp-87) stated that one of the major philosophies that Apple adopted is that the company generally ignore the critics and argument made over the brand. The company generally focuses on what they want to innovate in market. The company tried their best to fulfill the needs and demand of the consumers in marketplace. Filippetti (2011, pp-46) argued that most of the critics said that iPad has failed in market place. Majority of the customers are not pretty much happy with iPad. It has been also figured out that Apple generally tries to innovate something new in products in market. Apart from that, turning the ordinary things into something beautiful is also regarded as one of the classic philosophy of Apple. iMac, Macbook Air are the suitable examples of the Apple’s philosophy in developing products.

Brenda and Hy (2009, pp-67) opined that justification of price for the products is also considered as one of the unique philosophies of Apple. However, price of Apple’s products is supposed to be very high in the market, but it provides more technology based device to consumer in 10

comparison to their competitors. For example, iTunes software is something, which cannot be matched with any others software available in IT world. However, there are so many critics and argument made that core feature of this software is same. Chun and Soo (2009, pp-65) argued that Apple is mainly considered as Rolls Royce of the technology and design world.

Brenda and Hy (2009) opined that Apple tries its best to communicate in the language of the audiences in the market. It is noted that Apple presents its product in the market with proper specification and details of the products. The company has managed its product content in very easy language, which is very comprehensible to target audiences. For example, Apple generally presents the display resolution of products in term of “edge to edge glass� for giving comprehensive ideas and knowledge about products. Stuenkel (2015, pp-57) stated that extending the experiences of the consumers is also considered as one of the most effective philosophy and practices of Apple in overseas market. Apple does not like to end the experience at the money counter only. The company always seeks to bring something new and crazy that consumer like at a glance.

Daniels and Radebaugh (2009, pp-57) stated that building a tribe in the market is one of the considerable philosophy of Apple in overseas market. It is noted that Apple has made hardcore bases of any products and services in the market. On the other hand, Watson (2009, pp-48) opined that most of the chatter made different types of comments and also jealous of the name of Apple in the market. From the comprehensive and detailed understanding of the case study, it has have seen that USP of Apple mainly lies in a fact of differentiating its product in a way that generally makes consumer wish it were first. For example, iPhone was not the first phone, but the way it is engineered, the consumer cannot deny that it is a new one. This is well the established philosophies and practices adopted by Apple for dealing their business in global market.

As per the understanding given case study, it is figured out that there are so many issue and challenges faced by United Stated. It is noted that the country has skills deficit and this resulted in the lack of jobs of Apple in the overseas country. It has been noted that leader of Apple has noticed that employees from China are more skilled and competent at workplace. They are really pretty much skilled, industrious and flexible and American plant cannot match with that of fastest manufacturing process in China. The country needs to think about the value of skilled and 11

competent employees for developing business industry in market. United States should have to produce skilled and flexible employees that meet to the needs and demands of Apple.

There are also so many recommendations for Apple in order to increase competitive advantage in marketplace. The company can think on the price of the products and value of services. On the other hand, Apple can also focus on consumer satisfaction for increasing the competitiveness in marketplace. For global market of Apple, the company must adopted host country national staffing strategy for increasing the profitability and eliminating languages barriers. Apart from that, Apple can also focus on the new technology for making proper innovation in products.

Daniels and Radebaugh (2009, pp-123) opined that awareness of the consumer is must for increasing the sale of the products and services. The company needs to think about market and trend and to what extent consumers can afford for the products. The company should have to focus on the requirement of the consumers in order to make an innovation in products and services.

Conclusion: From the above discussion, it is concluded that Apple is regarded as one of the leading electronics manufacturing companies in United States. The company has contributed to its huge part to the economy development of United States. From the case study that says “Apple Goes Global�, it is cleared that United States has lost large amount of jobs in country. It has been seen that Apple’s majority of the products are manufactured in overseas country such as China due to many reasons. Apart from that, it has also been seen that there are so many workers become jobs less due to the transformation of jobs offered by Apple in United States due to skills deficits.

It is concluded that skills deficit in United States is considered as one of the most primary reasons for manufacturing of the products of Apple in overseas country like China. The leader of Apple admitted that China has skilled and competent employees and their flexibility and industrious meet to the demands and needs of Apple.

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Reference list Books Watson, S. (2009). Making global connections. North Mankato, Minn.: Smart Apple Media.

Czinkota, M., Rivoli, P. and Ronkainen, I. (2009). International business. Chicago: Dryden Press.

Daniels, J. and Radebaugh, L. (2009). International business. Apple business review.: AddisonWesley.

Hill, C. (2011). International business. Boston: McGraw-Hill/Irwin.

Jones, L., Alexander, R. and Jones, L. (2010). New international business English. Cambridge: Cambridge University Press.

Journals: Chowdhury, R. (2012). “Book Review: case study of apple. Global Business Review, 13(2), pp.353-355.

Filippetti, A. (2011). “The Global Environment of Business”. Global Policy, 2(3), pp.354-354.

Fulmer, T. (2012). “Genomics in the Big Apple”. Science-Business eXchange, 5(47).

Hitchner, E. (2009). “Apple to the core. Apple: The Inside Story of Intrigue, Egomania, and Business Blundrs Jim Carlton. New York: Times Business/Random House”,. Natl. Prod. Rev., 17(2), pp.89-92.

Mehanna, R. (2009). “A strategic matrix model for the apple industry in Lebanon”. Global Business and Economics Review, 11(1), pp-90-123 Stuenkel, O. (2015). “Maxwell's demon and the golden apple: global discord in the new millennium”. Global Affairs, 1(1), pp.102-104.

Brenda, L. M. and Hy, S. (2009) “A confirmatory factor analysis of IS employee motivation and retention”. Information & 569 Management, 38(4), pp. 265-276 13

Carl, F. F. (2009). “Opening the black box of motivation: A cross-cultural comparison of Sweden and Russia”, International Business Review, 14(6), pp. 345–367 Chorng, G. W., James, H. G. and Clifford, E. Y. (2010). “An empirical analysis of open source software developers’ motivations and continuance intentions”. Information & Management, 44(7), pp. 253–262.

Chun, F. C. and Soo, C.S. J. (2009). “An expectancy theory model for hotel employee motivation”. International Journal of Hospitality Management, 27(8), pp. 313–322.

Website: Apple, (2015). Apple. [online] Available at: https://www.apple.com/ [Accessed 19 Jul. 2015].

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