Apple TNC Flashcards

1
Q

Scale

A

98,000 full time employees.

450 retail stores in 16 different countries .

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2
Q

What time of products?

A

High tech .
iPhone
iMac

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3
Q

Apple is the worlds…

A

2nd largest IT company by revenue.
Largest music retailer.
No1 global brand by value.

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4
Q

Why is Apple successful?

A

Stylish / well designed.
Slick marketing.
Innovative.
Sell in stores / on line

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5
Q

Who is apples target market?

A

Richer counties.
Young , educated , wealthy.
2011 44% sales in USA
Increasing demand now in Asia

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6
Q

About Foxconn

?

A

Manufactures Sony/ dell.
High security as workers live there.
400,000 workers employee.

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7
Q

Wage in Foxconn ?

A

$150-200 a month.
Above average.
Increase in inequality l.

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8
Q

Products designed?

A

California

HIC

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9
Q

Products made

A

Mainland China

Lic

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10
Q

Sold ?

A

Globally

Primarily in developed world.

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11
Q

3 data centres??

A

2 California.

1 n . Carolina

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12
Q

European headquarters?

A

HIC

Cork Ireland

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13
Q

How many stores in Europe ?

A

110

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14
Q

How many stores in China?

A

25

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15
Q

Why does production occur in China?

A

Large work force and highly skilled workers.

Lower costs - lower wages.

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16
Q

Shenzhen

A

China’s most successful special economic zone.

Incentives attracting foreign companies.

17
Q

Why did Apple set up in Ireland?

A

Government incentive.

12.5% corporation tax

18
Q

Positive impacts on cork ??

A

4,000 workers directly employed in iMac production.
Attracted other high tech firms.
Workers highly skilled.
Infrastructure improved.

19
Q

Negative impacts in cork

A

Many employees are foreign.

But this has created vibrant city.

20
Q

Tax practices?

A

Accused of tax avoidance.
They can declare profits and pay lower rate of tax.
Owes USA and EU tax on their profits.

21
Q

Negatives in China??

A

Working conditions.
Health and safety.
Child labour.
Suicide.

22
Q

What are Working conditions like ?

A

Sweatshop conditions.

2006 - 200,000 workers lived and worked in Shenzhen we were 60+ hours a week for $10” a month.

23
Q

What is health and safety like ?

A

No ventilation - reduce costs.

2010 50 workers were poisoned by toxic chemicals to clean iPad screens.

24
Q

Why do Apple use students and child labour?

A

Low cost and flexible work force.

Under 18s are subject to same working conditions as adults.

25
Q

Suicides??

A

2009 factory worker committed suicide after coming under pressure following a disappearance of prototype model of iPhone 4.
End of 2010 14 suicides.

26
Q

What have these negative impacts done to Apple ?

A

Enormous strain.

Bad media representation.

27
Q

How has Apple responded?

A

By implementing supplier code or consist and audits regularly.

28
Q

What organisation criticised Apple ?

A

Greenpeace.

They rank companies environmental performance.

29
Q

Why was Apple criticised by greenpeace?

A

Reliance on non-renewables to supply electricity.
Toxic chemicals -PVC.
Pollutants into local water supplies.
No recyclability.

30
Q

How did Apple respond to greenpeace criticisms?

A
Green my Apple campaign.
To improve green credentials.
75% renewable energy.
Large solar farms.
Remove PVC plastics.
Promote recyclability
31
Q

Evidence of green my Apple campaign?

A

Moved up the green electronics ranking from 11th In 2006 to 6 in 2012.

32
Q

Positives overall

A

Employment.
Economic development .
Willingness to respond.

33
Q

Negatives overall

A

Working conditions.
Bad negative press.
Environmental issues.