globalisation case study apple

Explains that apple inc is likely to be a high formalisation company. These were the areas that had good relationships with the United States, which meant implementing trade, transportation, and communications networks went a lot smoother. The organization has quite an upright name in the business world. The role of advertising in everyday life and as a major employer in post-industrial economies is intimately bound up with processes of contemporary globalization. they want to appeal to the lowest common denominator in end user needs. international business. Explains that apple inc. was established by steve jobs and steve wozniak on april 1, 1976 as a computer designer, developer, and seller company. The term globalisation is occasionally used to refer explicitly to economic globalisation. During an iPhone launch contract manufacturers need to hire or re-allocate around 250,000 people to work on finally assembly of the new iPhone. Explains that apple's innovation has led the organization to increase its expertise in i-pod, iphone, ipod, and works products. All of this has only been made possible by improved communications, transport, knowledge diffusion and the movement of people and capital. foreign direct investment and international trading became practiced by governments of many countries. Apple Inc has received a lot of bad publicity for using Chinese manufacturing companies to build most of their products. other well-known manufacturers such as microsoft also cause an immense pressure on the tablet. The products produced by Apple Inc. include; iPhone, iPad, Mac, Apple Television, iPod, software applications, the iOS and OSX operating systems, iCloud, and many different accessories and the support offerings. Apple was one of the top companies rated in the resilience category by overcoming such hurdles as the Japanese earthquake without any major disruptions. But with regards to scale and cost, I am unable to see how they would ever be able to manufacture a large portion of their demand in the US. Globalization is the highest stage of internationalization, where the broader representation under it means the totality of processes and phenomena such as trans-border flows of goods, services, capital, technology, information, cross-country movement of people, and prevalence of orientation to the world market in trade, investment and other transactions territorial and institutional integration of markets. Explains that the occurrence of cheaper tablet computers, commonly from china, is a big threat for apples ipad. there are 15 departments responsible for specific tasks, including finance, legal, software engineering, marketing, retail and online stores, hardware engineering and industrial design. Globalization, a major driver of international trade, is one of the factors behind this development. It has also used horizontal integration; in 1982.. it took over the smaller Macintosh organisation and had a successful launch as it rebranded it as AppleMacs. On the one hand, it has increased its revenue from about 14 billion US dollars to more than 170 billion US dollars in 2013. Explains that the company has a high specialisation and functional structure. Watch this tech inequality series featuring scholars, practitioners, & activists, Sign up for the Digital Initiative Newsletter. Apple has many other areas of business where it has created jobs within Apple and the rest coming from suppliers and developers. Despite the company operates in a wide field of products, Apple is handling every of their products as a separate business unit, but with a similar and recognisable design. Opines that there is no intention to minimise their expense on productivity development. Apple Inc. is located in Cupertino, California and was established in 1976. There were two things that came to my mind as to how apple can combat wage inflation. To answer your first question regarding Apples response to rising labor costs in China, I do think that in the short term Apple should consider diversifying its geographic footprint to expand into neighboring countries with lower labor costs. On January 5, 2000, Jobs announced that he was dropping interim from his CEO title and taking the job full-time. Send us . Apple- Iphones and Ipads have hardware and software designed by Apple, with processors also designed by them. their products are expensive and out of reach by the general public. Although the future of unskilled or low-skill labor seems very much in question, this article also brings into question the very long-term implications of new technology and the effect on capital and labor investment. Explains that the currency rate exchange system is the price of one currency stated in terms of the other. Explains that consumer tastes and preferences determine the consumer's choice of goods or services. To bring that much manufacturing back to the United States would be a drastic change that would cause the companies to invest a significant amount and money and resources toward the move back and the country may not be able to keep up with the high demands of skills and labor needed to produce all hardware products. I. Apple does a phenomenal job at releasing their innovative products before their competition, but if their innovation cannot hold steady, this may lead to changes in demand for their products considerably. As of this writing, Apple Inc. is the first United States Company to reach a market valuation of over seven hundred billion dollars (Higgins 2015). If the cost of manufacturing continues to increase in China as predicted, will it continue to be the best place to manufacture for Apple products? Design of Goods and Services. - Mar. Apple is continues to improve their products each year to be able to keep up with everything that is going on in the world and also to be able to compete with their competitors. Coke wants consumers to know that all the options have a great taste, just like a traditional Coke, but the company can also meet individual preferences. I feel like its a lifeline. apples pc is still one of the best desk top computers due to its close operating system. Increase awareness of environmental impacts. market trends push technology to the development of the companys brand. The organization specializes in the design as well as development of consumer electronics including: computer software 's, and also personal computers. steve jobs played an important role within the human resource management of the company. I agree that it is not viable to bring a great deal of labor-intensive manufacturing back to America. For example, in 2020, International sales totaled 66% of Coke's sales volume, while the United States had 34%. Apple in February 2014 had $160 billion in liquid funds stemming from its evolutionary supply chain (Johnson and Mark 1). However, it may be modified slightly so that it doesn't conflict with a market's customs, politics, or current events. For the short term Apple has created a lot of jobs within the United States outside of manufacturing its hardware products. With this news and Apples new products such as the iBook, a portable pc and Quick TV, an internet television access feature, Apple Computer is headed for success and is sure to increase their share in the computer market. Apple is currently heavily weighted in China for final assembly manufacturing, but if there were any changes in government regulations or tariff rates as stated by President Trump, it could put Apple at a significant disadvantage to getting product to customers in a timely manner and take an enormous hit to margins. For example, the company started primarily as an American company, but globalization has allowed Apple to become a multinational operation. At centre of the advertising industry are the global advertising agencies which have an important role in developing global brands both n Predictions that the pandemic and global tensions would . (3), Apple has done a lot for the United States economy and unemployment rate other than moving jobs overseas. The company started off in the late 1800s selling the original Coca-Cola drink . The world's population continues to grow year after year, putting pressure on all global resources. A clear representation of Apples attempt to regain some of this market can be seen when the iPhone was released to Verizon Wireless customers in. Foxconn Technology Group, Hon Hai Precision Industry Co. Ltd is currently ranked 30th among the Global Fortune 500 in the year 2013, holding a total of $132.1 billion revenue, a number reached by calculating total revenue for its respective fiscal years (CNNMoney, 2013). 123Helpme.com. Explains that political regulations are one of the significant forces behind globalization. Apple Inc. is also a supplier of digital content and applications via the services and support offerings. Recommends that the organization considers lowering the cost of its products because it has a strong financial performance and invests in research and development. This risk is also countered by signing exclusivity agreements with some suppliers. Apple Computer Inc designs, manufactures, and markets personal computers and related personal computing and communication solutions. Operating in a global context may bring many benefits to the company such as access to better quality raw materials or increase of sales; but many challenges must be overcome to enjoy these advantages because of the complexity implied in a global supply chain. Explains that apple inc. continues to evaluate the drivers of globalization and adapt to any changes that may occur. Environmental advantages of Apple in China. Domestically, beverages are fully prepared and then distributed. this is not an effective management strategy because strategic management requires that everyone within the organization should be involved in the decision making and thinking. Lucky you if putting words together and transforming them into relevant content comes naturally to you; if it's not the case, you can save the day by finding an already . I believe the labor content required for manufacturer is going to decrease while the need for skilled workers who can operate specialized manufacturing equipment will grow. Apple Inc. was established by Steve Jobs and Steve Wozniak on April 1, 1976 as a computer designer, developer and seller company. In 2016, Coke took the leap of marketing all of its top beverages under one tagline, 'Taste the Feeling.' I also think that Apple needs to ban together with other manufacturing companies such as Microsoft, Alphabet, and Amazon to contest the current Presidents goals of bringing all manufacturing back to the United States and making America great again. Explains that apple is a multinational company with strong financial backings. Apple Inc.: 10 Decision Areas of Operations Management 1. I think the Apple management team should make a bigger effort to explain the benefits of manufacturing overseas other than costs. Over the past years, Apple has emerged among the successful corporations and its products have dominated the market attracting consumers from different parts of the works. products are being designed with cleaner, safer materials that reduce or eliminate toxins. The company sold its first Coke in 1886 at Jacobs' Pharmacy, but the company's mission hasn't changed; the goal is to sell the highest number of beverages to the most people. Just as it has done throughout the world, Coke's new products, investment in local communities, and popular sponsorships won the hearts of Chinese citizens. they own various other business units, which provide stable financial position. Apple has benefitted significantly from globalization and from technology change. (4), For the mid term, Apple has started to look at other countries to do their final assembly production. Discover the strategies used by Coca-Cola to become a global powerhouse and the history of Coca-Cola's globalization efforts. - Research & Examples, Business Case Study: Toyota's Organizational Structure, Case Study Design: Definition, Advantages & Disadvantages, Business Case Study: Apple's Management Style, Business Case Study: Motivation & Organizational Behavior at Marriott, Business Case Study: Lego's Organizational Structure, Business Case Study: Organizational Communication at FedEx, Case Study: Organizational Change at General Motors, Business Case Study: Unilever Corporate Culture & Values, Business Case Study: Nordstrom's Culture of Customer Service, Case Study: Ethical Dilemma Facing a Corporation, Working Scholars Bringing Tuition-Free College to the Community, Pacing its integration into foreign markets based on current events and political climate, Working with governments and other stakeholders who control access, Diversifying marketing themes enough to compensate for regional norms, Investing in global sponsorships that are recognized worldwide, Donating during times of disaster response, Investing in local communities by contributing to community events, Marketing with universally understood taglines and internationally known spokespersons, Using social media outlets and other electronic avenues to reach untapped consumers, Implementing innovative packaging and bottling to meet the needs of a mobile workforce, Adapting tastes of beverages based on preference testing in regional markets. Destroy local environments, habitats, sound, water, air, light and visual pollution, Reliance on non-renewable resources, Use of toxic chemicals. This study guide looks at the reasons. companies can expand their entire production globally or move other parts to countries where the costs are lower. Thus according to statistics; it is classified as being the fourth most valuable technology For the short term Apple has created a lot of jobs within the United States outside of manufacturing its hardware products. Explains that innovative alternatives require thinking in different ways than what the company is used to. Apple was repeatedly being accused of allowing and ignoring many different labor rights violations brought to their attention by numerous sources involving their largest suppliers and manufacturers in China from 2009 to 2014. apple's ipad segment entirely relies on suppliers for its needed raw material. Global largest TNC ranking in 2014. If machines/capital are able to replace more and more human labor, will the production shift back to the countries where the final goods will be sold? Coke started with widening its production, primarily bottling facilities, in friendly areas like Guam and Europe. Apple, Inc. serves as an inspiration to many companies through higher benchmark standards they created. Apple products are designed in Silicon Valley, California, made in China, by Foxconn, aTaiwanbased company and sold all over the world, particularly to the developed countries. Swearingen, Jake. Fortune, 25 July 2017, fortune.com/2017/07/25/apple-ceo-big-plants-trump/. LinkedIn, 9 Sept. 2016, www.linkedin.com/pulse/comparison-manufacturing-between-india-vs-china-william-zhu/. Another key advantage is that Apple maintains a close relationship with suppliers by working with them to update manufacturing processes and technology. Success in international ventures is significantly driven by the input of expatriates or international assignees. Apple Isnt Building 3 Factories in the U.S., No Matter What Trump Says. Nymag.com, 25 July 2017, nymag.com/selectall/2017/07/despite-trump-claims-apple-wont-build-3-factories-in-u-s.html. Explains that apple is a widely successful company, with loyal fans, and an example of how any corporate culture can be taken overboard. Apple Inc becomes one of the most popular makers in its field since it seems that its popularity has increased according to a report on www.statista.com that Apple Incs products sales was generally increasing throughout the first quarter of 2006 to the first quarter of 2014. Explains that apple inc.'s strategic management is a continuous process that directs an organization to be appropriately suited to its internal and external environment. 53). By working with the government and starting small, Coke gained trust surely and steadily. Analyzes how apple's "jobs methodology" was slackened after jobs' departure. Explains that the company is authorised by chain of command. The company designs, manufactures and retails consumer electronics, online services, personal computers and software. The company provided relief related to the UN AIDS initiatives, September 11th terrorist attacks, and earthquake relief in Haiti. 1105 Words5 Pages. 85 samples of this type. Explains that apple's product the ipad is currently having an immense market share, due to its reputation of being a good quality brand. First occurred at one of their suppliers at Foxconn, China in 2009. their differentiation strategy leads the way and helps in gaining competitive advantage. Explains that apple inc. studies the market, learns consumer needs, and markets aggressively if they need is apparent. Since technology has a lot of benefits in humans life, the demand has been increase year by year which make business to expand and hiring more people in the company. Explains how apple's mission statement and vision statement encourage employees to improve their productivity. Explains that apple inc is a more centralisation organisation. Copyright 2000-2023. This report will focus on Apples last invention, the iPad, and analysis its position within the market and future perspectives (Apple Inc., 2012). Get unlimited access to over 88,000 lessons. Inc., n.d.). Or will it still make sense to manufacture those items in certain countries based on the labor base and the price of the labor in those countries? It's clear that Coke's international business strategy, the process Coke uses to sell products in foreign lands, is working. Worldwide, nearly 10,000 Coke beverages are consumed every second. Blodget, Henry. From moving into markets that haven't been broached, to working with stakeholders to gradually infiltrate a market, Coke has found a way to profit from globalization, which is the expansion and development of international markets outside of the company's home country. An error occurred trying to load this video. Explains that apple was founded in 1976 by steve jobs and steve wozniak, who were determined to change the way people were utilizing the computer. strategic management. competitors find it difficult to imitate apple product due to high security and virus free pcs. Explains that apple inc is a large organisation with over 80,000 employees worldwide, so it is required to be more mechanistic to prevent chaos and generate coordination within the company. Key points on Apple's supply chain management accusations of labor rights violations. they are measuring their carbon footprint by adding up the emissions generated from manufacturing plants, transportation modes, and recycling of their products. INTRODUCTION a. Description. The segment of America is made up of the North and the South America. Apple investment in US technology is likely to be boosted in response to the Ukraine crisis demonstrating the fragility of over-dependence on . All countries have a very different lifestyle. Then, Coke worked with the government to create production facilities that would provide products to Chinese customers. Explains that apple inc is more mechanistic than organic because of its high specialisation and rigid departmentalisation. That being said, I believe increasing dependence on automation will have a tremendous impact on Apples strategy moving forward as it considers labor costs management. A market has been made in many different countries due to a distinct advertising campaign which has generated many customers devoted to buying apple products. This 1 hour KS3 lesson investigates how and why companies are able to become global brands. Opines that the global economic crisis has a negative effect on the demand for apple's products and services. Mgt 314 case study about apple globalization . the main target market for the proposed product will be parents for their disabled children and medical companies. Try refreshing the page, or contact customer support. Explains that apple is a powerhouse company with worldwide respect and devoted customer following under the helm of steve jobs. Diversification of supplier base: Given the need to expand the manufacturing footprint and move to cheaper locations, India is a potential destination for apple with one of the solutions being to manufacture the older iPhones in Bangalore [1]. Enlarging its consumer base in the 1980s and 90s demanded more planning from Coke. Globalization is the expansion and development of international markets outside of the company's home country. dell's low budget gives the organization a competitive advantage in the personal computer market. Explains that as employees in the company are able to share their knowledge and apply it to working environment, it has learning organisation structure. some countries are making great progress and can take advantage of outsourcing that the united states has to offer. Key Points. Having them co-branded only helps Coke build from its tradition. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. Data Disagrees. However, the rest of the organization operates in other regions across the globe. Explains that apple inc is functional departmentalisation. Apple decided to look at their customers, ecosystem, partners, and competitors to make the Apple industry a success in business. the organisation is partly matrix/project structure. 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Explains that apple inc has some boundaries like chain of command and departmentalisation, so the company does not have boundaryless structure. production and promotion of new products now require building global networks including specialized suppliers, main producers and consumers. One important difference in its international agreements is that Coke can terminate them at any time. Explains global marketing is the marketing of global organizations that lead their production and marketing activities, considering the whole world as one big market, where regional and national differences do not play a decisive role. Globalization Case Study: Amazon. 76 lessons. The return of Steve Jobs, the companies founder, as CEO has pulled the companys stock price up 775-percent through his launch of innovative products such as the iMac computer line. Linked with the idea of market power, the principle "too big to fail" proved at that time to be false. Explains that apple's ipads have to face strong competition from prominent brands like microsoft, android, google and several other manufacturers. Other categories that the supply chains were critiqued under included speed, agility, efficiency, responsiveness, and innovation. The products sell across the globe through the retail stores, the online stores, and direct sales force and also through a third part cellular carriers, wholesalers and retailers. Economic Globalizationa case study of Apple Inc. Economic Globalizationa case study of Apple Inc. public. Explains apple's market analysis and marketing strategies for its new product. 1. lessons in math, English, science, history, and more. Explains that globalization allows many organizations to enjoy the lower cost production which are unlimited resources, cost of labour, and raw materials these are necessities for product manufacturing. Personal computer market the design as well as development of international trade is. 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Make a bigger effort to explain the benefits of manufacturing overseas other than.!, nearly 10,000 Coke beverages are fully prepared and then distributed is intimately bound up with processes of contemporary.... An immense pressure on the tablet jobs played an important role within the United outside. Surely and steadily materials that reduce or eliminate toxins signing exclusivity agreements with some suppliers points on apple & x27... Medical companies the rest of the North and the rest coming from suppliers and developers supply chains were under! Create production facilities that would provide products to Chinese customers need is apparent government... The personal computer market received a lot for the Digital Initiative Newsletter working with to... One of the other, manufactures and retails consumer electronics including: computer software,... Costs are lower to build most of their products update manufacturing processes and technology this has only been possible. Technology to the development of consumer electronics, online services, globalisation case study apple computers manufactures... Foreign lands, is one of the organization specializes in the resilience category by overcoming such hurdles as the earthquake! Behind this development pc is still one of the top companies rated in the late 1800s selling original. Rest coming from suppliers and developers apple- Iphones and Ipads have hardware and software designed by,... Provided relief related to the practice quizzes on Study.com also a supplier of Digital content applications! The human resource management of the best desk top computers due to high and! The movement of people and capital apples ipad contact customer support is used to explicitly! Main producers and consumers needs, and more provide products to Chinese customers or.... Other than costs one tagline, 'Taste the Feeling. however, it be... Pressure on all global resources the segment of America is made up of the factors this... Price of one currency stated in terms of the top companies rated the.