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Global Governance > Apple Case Study > Flashcards

Apple Case Study Flashcards

1
Q

Why are Apple’s mainstream products produced in China?

A

China has a large young, skilled, ununionised workforce who are willing to work long hours.

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2
Q

What type of workforce does China have which attracted Apple to produce there?

A

A large young, skilled, ununionised workforce who are willing to work long hours.

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3
Q

Why does Apple outsource to Foxconn?

A

Foxconn competed for Apple’s manufacturing contract on the basis of low production costs.

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4
Q

Which production system does Apple use?

A

Lean production

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5
Q

What are the benefits of Apple using lean produciton?

A

Reduces stock piling.
Reduces Costs which generates profits

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6
Q

Since 2018, where has Apple notably expanded within?

A

The USA, mainly Austin, Texas where it manufactures the MacPro.

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7
Q

Where are components shipped from to manufacture the MacPro in Austin?

A

Around the world, inluding China.

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8
Q

Where is Apple’s Middle Eastern, Europe and African headquarters?

A

Cork, Ireland.

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9
Q

How many workers are employed in Corks iMac production line?

A

6,000

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10
Q

What other reason places importance to Cork’s role in Apple?

A

Cork acts as the global transport linguistics hub for Apple, where they organise shipments.

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11
Q

How many people are indirectly employed by Apple in manufacturing?

A

Around 2.5 million people.

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12
Q

How many times more people are indirectly employed by Apple than are directly employed by Apple?

A

Nearly 20 times more.

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13
Q

Spatial Organisation and Linkages: Where are Apple’s main products designed?

A

In Sillicon Valley, California.

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14
Q

Where are Apple’s main products made?

A

In mainland China, by Foxconn.

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15
Q

How many data centres does Apple have in the USA?

A

Five.

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16
Q

Where are Apple’s five data centres in the USA located?

A

Two in California in Newark and Santa Clara
Another two in west USA
One in North Carolina

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17
Q

Where is there another data centre being planned to be built in the USA and why?

A

In Iowa, for the mid 2020s in order to better serve North American users of siri and iMessage.

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18
Q

How many people does Apple employ over all 50 states of the USA?

A

90,000

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19
Q

How many retail stores does Apple have?

A

511

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20
Q

How many of Apple’s retail stores are in the USA?

A

Over half.

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21
Q

How many of Apple’s retail stores are in Europe and the Middle East?

A

115

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22
Q

How many of Apple’s retail stores are in China?

A

42.

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23
Q

Where is Foxconn’s main assemby point?

A

Shenzen.

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24
Q

Where else in China does Foxconn have large assemby points?

A

Zhengzhou, CHengdu, Sichuan province, Henan province.

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25
Q

How many people does Foxconn employ in their assembly plants for Apple?

A

Nearly 1 million.

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26
Q

What is the average time Foxconn employees work and for how much money?

A

Average 62 hours a week for $300 a month, half of which is spent on rent.

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27
Q

Where do Foxconn employees live?

A

On site, where there are shops, cafes and dormitories.

28
Q

What is the danger of working an an assembly point for Foxconn?

A

Workers are exposed to toxic chemicals which are used to clean the products.

29
Q

What has been suggested about safety equipment for workers at Foxconn?

A

Safety equipment has not been available such as earplugs and goggles.

30
Q

In 2017, what news came out about Foxconn employees?

A

Student interns were working excessive hours against company policy.

31
Q

What are the laws for under 18s working in China?

A

They are allowed to be employed as interns or as trainees.

32
Q

Why does Apple not hold the same employment rights as China for under 18s?

A

Because Apple has a social responsibility commitment.

33
Q

What does Apple demand of employers in Foxconn regarding u18 interns and trainees?

A

Employers must limit student interns and trainees to 10% of their workforce.

34
Q

How has Apple responded to ensure student intern or trainee workforce is kept below 10% in Foxconn?

A

They have a Supplier Code of Conduct and audits thier supplier factories regularly.

35
Q

How many jobs has Apple’s presence in Cork generated for ancillary work?

A

3,000 jobs.

36
Q

Where is the European headquarters in Cork?

A

Hollyhill Campus.

37
Q

How many workers does Hollyhill Campus employ? And in what field of work?

A

6,000 workers in the production line or in customer service/support.

38
Q

When was Apple lured to Ireland?

A

In 1980.

39
Q

Why was Apple lured to Ireland when it was?

A

Ireland was going through a time of high unemployment and so had set a 12.5% corporation tax (2nd lowest in the EU) in order to attract FDI to create jobs in the area.

40
Q

How does Apple being in Cork enhance Ireland’s global connectivity?

A

They employ over 100 people in the logistics team, organising shipping to over 50 countries.

41
Q

Why has Apple’s presence in Cork been ciritisised?

A

Because alot of the workers are foreign nationals and Apple has been critisised for not creating jobs for locals.

42
Q

How many different nationalities work for Apple in Cork?

A

90.

43
Q

What percentage of Apple in Cork’s employees are Irish?

A

60%

44
Q

What was Apple’s ‘Green My Apple’ campaign a result of?

A

Criticisms from Greenpeace in the 2000s.

45
Q

What did the ‘Green My Apple’ campaign consist of?

A

Using 100% renewable energy, using Apple Energy which is mostly solar power.
Removing all PVC plastics and toxic chemicals from its products.
Promoting recycling of all of its products.

46
Q

What has been the backlash to the campaign of promoting recycling of all Apple products?

A

The lack of repairability of Apple products is still and issue and people feel as though it is a tactic to surge money from consumers.

47
Q

What did Apple issue in 2016 regarding environmental projects?

A

Apple issued a $1.5 billion green climate bond to which proceeds are dedicated to the financing of environmental projects.

48
Q

Between 2006 and 2017, where did Apple move to and from in Greenpeace’s ‘Green Electronics’ ranking?

A

11th to 2nd.

49
Q

How much has service revenue for Apple increased between 2013 and 2020?

A

More than threefold, from $13.5 billion in 2013 to more than $50 billion in 2020.

50
Q

What is the main country market Apple supplies it’s products to?

A

Richer, more developed countries.

51
Q

In 2019, what percentage of Apple’s product sales were to the USA?

A

45%

52
Q

Which nation became Apple’s second largest market temporarily in 2015-16? And who re-established themselves in 2017?

A

China. Europe re-established itself.

53
Q

Why is Apple facing high tariffs to imports to the USA?

A

USA has implemented high tariffs on Chinese imports in order to promote domestic markets. This means Apple has to pay to import their manufactured products back to the USA.

54
Q

What is the result of Apple paying high tariffs on their imports to the USA?

A

This increases the costs of their product and will likely increase the sales cost on the shelf for the consumer.

55
Q

How is Apple trying to combat high tariffs?

A

By establishing manufacturing plants in the USA. Despite this, costs may still be high because of higher labour costs and more expensive materials.

56
Q

How many jobs has Apple pledged to create in the USA to promote domestic markets?

A

20,000.

57
Q

How much has Apple pledged to invest between 2018 and 2023? And why?

A

$5 billion in order to support innovation among USA manufacturers.

58
Q

What has encouraged domestic manufacturing of Apple goods in the USA?

A

Federal tariff exclusion zones in Austin, Texas. This means they do not have to pay taxes on imported goods there.

59
Q

Why was Apple’s attempt to enter the Indian market a fail?

A

Because the phone and tablet market is led by cheaper cmopetitors.

60
Q

What has happened to the Apple market in China following its peak in 2016-17?

A

It has plateaued and potentially met maturity.

61
Q

Why does China remain a strong potential market for Apple?

A

Because of China’s large iPhone user base.

62
Q

Which smartphone manufacturer is Apple facing comeptition from in China?

A

Huawei.

63
Q

What does Apple’s role as a TNC tell us about the company?

A

Apple is quick in demonstrating how it can respond to chances in markets, geopolotics and incentives by redirecting investment.

64
Q

What does Apple’s well-organised supply chain tell us about the company?

A

Apple can reduce costs and inrease profits in a way which is beneficial to all.

65
Q
A

Global Governance (2 decks)

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