Apple TNC Flashcards
Scale
98,000 full time employees.
450 retail stores in 16 different countries .
What time of products?
High tech .
iPhone
iMac
Apple is the worlds…
2nd largest IT company by revenue.
Largest music retailer.
No1 global brand by value.
Why is Apple successful?
Stylish / well designed.
Slick marketing.
Innovative.
Sell in stores / on line
Who is apples target market?
Richer counties.
Young , educated , wealthy.
2011 44% sales in USA
Increasing demand now in Asia
About Foxconn
?
Manufactures Sony/ dell.
High security as workers live there.
400,000 workers employee.
Wage in Foxconn ?
$150-200 a month.
Above average.
Increase in inequality l.
Products designed?
California
HIC
Products made
Mainland China
Lic
Sold ?
Globally
Primarily in developed world.
3 data centres??
2 California.
1 n . Carolina
European headquarters?
HIC
Cork Ireland
How many stores in Europe ?
110
How many stores in China?
25
Why does production occur in China?
Large work force and highly skilled workers.
Lower costs - lower wages.
Shenzhen
China’s most successful special economic zone.
Incentives attracting foreign companies.
Why did Apple set up in Ireland?
Government incentive.
12.5% corporation tax
Positive impacts on cork ??
4,000 workers directly employed in iMac production.
Attracted other high tech firms.
Workers highly skilled.
Infrastructure improved.
Negative impacts in cork
Many employees are foreign.
But this has created vibrant city.
Tax practices?
Accused of tax avoidance.
They can declare profits and pay lower rate of tax.
Owes USA and EU tax on their profits.
Negatives in China??
Working conditions.
Health and safety.
Child labour.
Suicide.
What are Working conditions like ?
Sweatshop conditions.
2006 - 200,000 workers lived and worked in Shenzhen we were 60+ hours a week for $10” a month.
What is health and safety like ?
No ventilation - reduce costs.
2010 50 workers were poisoned by toxic chemicals to clean iPad screens.
Why do Apple use students and child labour?
Low cost and flexible work force.
Under 18s are subject to same working conditions as adults.
Suicides??
2009 factory worker committed suicide after coming under pressure following a disappearance of prototype model of iPhone 4.
End of 2010 14 suicides.
What have these negative impacts done to Apple ?
Enormous strain.
Bad media representation.
How has Apple responded?
By implementing supplier code or consist and audits regularly.
What organisation criticised Apple ?
Greenpeace.
They rank companies environmental performance.
Why was Apple criticised by greenpeace?
Reliance on non-renewables to supply electricity.
Toxic chemicals -PVC.
Pollutants into local water supplies.
No recyclability.
How did Apple respond to greenpeace criticisms?
Green my Apple campaign. To improve green credentials. 75% renewable energy. Large solar farms. Remove PVC plastics. Promote recyclability
Evidence of green my Apple campaign?
Moved up the green electronics ranking from 11th In 2006 to 6 in 2012.
Positives overall
Employment.
Economic development .
Willingness to respond.
Negatives overall
Working conditions.
Bad negative press.
Environmental issues.
