Case study: Apple iPhones – Not “Made in America”

What is meant by the orbicularization of human capital? Is this inevitable as firms accession their global operations? The globalization of human capital refers to the fact that employees be right off spread out across the world by their employers. This including, the companies, employed, unemployed, stockholders, consumers, contractors, supply chain, firms and economies. Companies grow out because labor comprises be 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 concept being promoted to the market, the association 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? bell and Human Capital is the most important consideration for Global Companies. When death chair Obamas inquired or so apple brining the job back to US, it w as practically non possible for orchard apple tree.The break down in the case study was that it cost a total of $179 to produce an IPh mavin and it retailed at $500 leaving a profit of $321. This would mean more profit for the global comp both. For Global alliance harm and profit is the most important consideration to stay competitive. They fire use the cheap labor in other countries to be monetary value competitive This gave the perception that Apple did not care about its country. It overly gives the perception of greed which a global company ass present. 3. causerie on the Apple executives assertion that the companys only obligation is making the high hat product possible.We dont bugger off an obligation to solve Americas problems. All though it is a harsh comment but I think it chance upons instinct. 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 Americas problem. Apple is scantily trying to be the best company out there in order to be on top with innovation and success. It is not Apples duty to solve Americas problems with employment their responsibility is to form the best product. 4. Who are the stakeholders in this situation and what, if any, obligations do they feature?There are two stakeholders in this situation and they are the companies Apple and Foxconn as well as the Chinese government. Apple has obligations to their employees both interior(prenominal) and global. They pauperisation to be cognizant that a corporation is only as good as its products as well as, its image. They need to be mindful that since its headquarters are in the United States, it should do all that it can to maintain a positive image. It is too important to make accepted that the products they sell are quality products while keeping the price as low as possible. Foxconn has a stake in its people and the products they export.The dirty and inhumane working(a) conditions for ced the government to step in. Foxconn also involve to be mindful of the issues presented previously for Apple (the difference they are headquartered in China). The fact that labor violations were taking place, Chinas government had an obligations to its people. They need to protect their citizens from hazardous work conditions and hold Foxconn accountable for their actions. 5. How much superfluous are you prepared to pay for an IPhone if assembled in the United States? Personally I feel that the IPhone is already over price as is. The fact that they make $321 of profit off each phone is ridiculous.If the phone is fully assembled in the United State I do not feel the price of the phone should increase at all. There are many products that are specifically made in America that cost the same tote up as their global counterparts. Clothes are an example, all things being equal, a t-shirt made overseas cost relatively the same as a t-shirt made in the US. Why should an IPhone be any di fferent? I feel that although the profit from each phone would be decreased, they would sell the same amount of phones if not more. 6. How much extra are you prepared to pay for an IPhone assembled in China but under bankrupt labor conditions or pay?What kind of trade-off would you make? This also deals with the question previously asked. I have not changed my stance on IPhone however, if they were to charge more to have it assembled in China, why couldnt or wouldnt they just produce it in America. It would not make sense if they had to increase cost to better working conditions in another country. I believe it would be cheaper to bring some of the laborers here to the US and bluff a plant here. 7. To what extent do you think the dis concede media insurance coverage has affected Apples recent decision to ask the FLA to do an assessment and the subsequent decision by Foxconn to raise some salaries?What do you think will happen now? I believe that the negative media coverage has i nspired Apple to be more cautious about their corporate image. Subsequently, it affected their way of thinking so that they had to ask for an FLA assessment. They could ill-afford to hold to be seen in a negative light and heartless. They already verbalize that They dont have an obligation to solve Americas problems, only to make the best product possible, after the unfair working conditions and labor violations were discovered it only added to the idea that the company was stingy and didnt care about their employees.Foxconn took pride in being one of the countrys most effective and efficient manufacturers. It could not allow the perception that they were running a sweat shop in which their employees were working 60 hours a week for little pay. The employee suicides did not help companys image. They had to raise some salaries in order to save face in the public eye. Also, both companies had to show that although mistakes happened, once they were discovered they were better quic kly. I believe now that the story is out they will have many follow up inspections to insure that both companies never keep an eye on under scrutiny again.