[go: up one dir, main page]

0% found this document useful (0 votes)
98 views6 pages

Apple Case Study

This document contains a summary of a course on corporate social responsibility and Apple's approach to CSR. It discusses how Apple uses offshore outsourcing to reduce costs but also lose some control over production standards. While this strategy cuts expenses significantly, it introduces cultural and regulatory challenges. The document also examines labor issues at Apple's supplier Foxconn, including excessive overtime and poor working conditions. It suggests Apple could do more to address these complex CSR problems in its supply chain.

Uploaded by

Kanchan Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
98 views6 pages

Apple Case Study

This document contains a summary of a course on corporate social responsibility and Apple's approach to CSR. It discusses how Apple uses offshore outsourcing to reduce costs but also lose some control over production standards. While this strategy cuts expenses significantly, it introduces cultural and regulatory challenges. The document also examines labor issues at Apple's supplier Foxconn, including excessive overtime and poor working conditions. It suggests Apple could do more to address these complex CSR problems in its supply chain.

Uploaded by

Kanchan Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Course Code: BUS4004

Table of Contents
Ans .1.........................................................................................................................................3

A.............................................................................................................................................3

B.............................................................................................................................................3

Ans .2.........................................................................................................................................4

A.............................................................................................................................................4

B.............................................................................................................................................4

References..................................................................................................................................6
Ans .1
A
The idea behind corporate social responsibility is to analyze and amplify the beneficial
effects of businesses on society. Many governments, businesses, and NGOs in low- and
middle-income countries have increased their active participation with the process of
adapting the CSR agenda set by wealthy nations.

activities of CSR detailed in the case study

1) Apple was not simply the most valuable firm in the world, but also a symbol of the
transformative power of information technology. However, Apple's biggest success
(as of the time of this case's writing) came from the company's introduction to the
smartphone industry. Since the launch of the first iPhone in 2007, Apple has
dominated the smartphone market with its innovative products and practices, allowing
it to command a premium price and generate a substantial profit. Net profits for Apple
were almost $37 billion last year on sales of $170 billion. The company's net profit
for the year was $39.51 billion, while its sales was over $183 billion (Kamel Mellahi
et al., 2016). So yet, the CSR mishaps don't seem to have hurt Apple's bottom line.
The company placed number one on Forbes' list of "The World's Most Valuable
Brands" in 2015, as well as number 12 on the "Global 2000" list, and number 55 on
the list of America's Best Employers.
2) It seems that Foxconn has made an attempt to bring their workplace up to the needed
labor regulations and enhance the environment for its employees. The Fair Labor
Organization has publicly acknowledged Foxconn's efforts and reported on the
company's improved treatment of factory workers. Foxconn upgraded its labor
conditions about the same time it began losing orders from Apple, probably as a result
of the higher per-unit prices. Over time, Apple started shifting more production to
Pegatron, a competitor in the industry. Perhaps the corporation had gone above and
above in its efforts to address CSR issues within its supplier chain. However, maybe
Apple could and should do more to address what had become a complicated matter.

B
Apple is using OFFSHORE OUTSOURCING CSR Approach as
Apple's products were set apart from the competition by their use of a custom operating
system (iOS) and their integration with the company's wildly popular iTunes website, where
users could download music, movies, TV shows, and other forms of digital media to play on
their iPhones and other Apple devices. All of Apple's manufacturing and assembly was being
handled by third-party companies across the world, mostly in China. Apple has previously
taken great pride in the fact that its goods were made in the United States. However, Apple,
like many Western businesses, struggled to resist the allure of overseas outsourcing (Kamel
Mellahi et al., 2016). Most of the components used to assemble the iPhone were likely made
in other countries. Advanced semiconductors were supplied by German and Taiwanese
vendors, with memory and display panels coming from Korean manufacturers. It's possible
that Apple might have drastically cut their operational expenses by exporting work to other
countries. However, it also reduced Apple's ability to keep tabs on and influence production
methods and procedures.

importance and benefits of the approach

It may reduce operational expenses by as much as 70 percent, giving firms a leg up in their
markets. However, it may also provide difficulties due to time zone variations, cultural
differences, and unfamiliar laws and regulations. To the tune of 70%, outsourcing may reduce
a company's payroll expenses. When outsourcing, most companies save enough money to
really succeed. As a result, the company's bottom line improves, which in turn has a "ripple
effect" on other parts of the regional economy. Offshoring and outsourcing, when used
together, may help businesses save money by taking advantage of cheaper overseas expenses
and reduced overhead. Know-how of the area.

Ans .2
A
Apple may have wished to simplify difficult issues, but the company could not alter the
wildly varying national settings to its liking. Apple and its suppliers dealt with a wide variety
of stakeholders, each with their own priorities and standards. Apple had to manage the
disparity between the high expectations of customers, workers, investors, NGOs, and
governments in the West and the far lower expectations and distinct societal values and
conventions of its suppliers in developing nations.

The employee's attempt at suicide was attributed in large part to the poor labor practices and
working conditions at the company (Kamel Mellahi et al., 2016). Since the occurrences in
2010, the business has been under heightened scrutiny and pressure to improve its working
conditions from a wide range of stakeholders including non-governmental organizations
(NGOs), the media, and clients like Apple.

The research claims that three Pegatron facilities in China broke 86 Chinese rules, including
36 legal and 50 ethical ones, ranging from the employment of minors to the infringement of
women's rights, long hours at work, and environmental damage. After the study was made
public, Apple reiterated its commitment to fixing the problems it identified. Employees were
required to turn up their identity cards upon entering the facility, had no health and safety
training beyond the bare minimum, and were often required to work up to 16 hours per day
for as long as 18 days at a stretch.

B
Apple Inc. is widely recognized as a global leader in its industry and is often cited as an
example of corporate success. Its financial success has been exceptional, and people all
around the globe eagerly await the introduction of its new items (Dudovskiy, 2021). The
company's immediate past CEO, Steve Job, provided visionary leadership, and the
company's strategic aim of placing an emphasis on design and the willingness to create new
products by taking risks in the face of market uncertainty contributed to the company's
eventual success.

It should switch to Disney strategy

Everything from personal computing in a user's pocket to controlling house electronics to


serving as a friendly reminder of one's calorie count or where to park has been brought
together, integrated, and packaged in a single, easily accessible ecosystem of supplementary
things. It makes sense for Apple to ditch Apple TV+ and move its content to Disney's
existing streaming portfolio if the company is serious about becoming a significant SVOD
player, which they may not be. Disney is the only major studio with the resources to catapult
Apple into streaming domination, and it also happens to align with Apple's public image as a
company that favors family-friendly entertainment (Dudovskiy, 2021). It's becoming more
difficult to deny that Apple has achieved unparalleled success and renown throughout the
globe. The key to Apple's long-term success has been the company's ability to keep
customers happy inside its ecosystem.
References
Dudovskiy, J. (2021, February 1). Apple Business Strategy - Product Differentiation in
Design and Functionality - Research-Methodology. Research-Methodology.
https://research-methodology.net/apple-business-strategy/
Kamel Mellahi, Michael Mol, & Sun Hye Lee,. (2016, March 22). Harvard Business
Publishing Education. Hbsp.harvard.edu; IVEY PUBLISHING.
https://hbsp.harvard.edu/product/W16147-PDF-ENG

You might also like