🌍Case Study - Apple as a TNC Flashcards
Where are Apple’s headquarters?
Cupertino, northern California
When did Apple launch?
1976
When did Apple first start seeing big growth?
2000 with mobile and WiFi devices
Where does Apple stand in global IT company rankings?
2nd, behind Samsung
Where does Apple stand in global mobile phone manufacturing rankings?
3rd
Apple is the number one…
…global brand by value
How much is Apple worth?
$145 billion
How many full time retail employees does Apple have?
98,000
Where does Apple stand in the global TNC rankings?
11th
What is Apples market predominantly aimed at?
Richer, developed countries
What percentage of sales are in the USA?
44%
Where has the most rapid growth been in recent years?
Asia Pacific region
Where are most of Apple’s employees based?
In the developed world, mainly USA
Where are its US offices located?
Cupertino, Newark and Santa Clara, CA and Maiden, North Carolina
Where are Apple’s European headquarters?
Cork, Ireland
How many people are employed in Cork?
4000
What is manufactured in Cork?
iMacs
What services are based in Cork?
Customer support and online call centres
Which company is manufacture of iPhones, iPods and iPads outsourced to?
Foxconn
Where is Foxconn city?
Shenzen, Guangdong Province, China
Which other city does Foxconn have a factory in?
Chengdu, Sichuan Province
How many retail stores does Apple have?
453
Where are the retail stores located?
110 in Europe and Middle East
25 in China
Why are Apple’s products made in China?
Large source of skilled, hard working, low paid workers
A number of companies competed for the Apple contract, forcing down costs
Shenzen was the location of China’s first Special Economic Zone, attracting many foreign companies
What is Foxconn city?
A business park with a number of factories belonging to different manufacturers of high tech products
How many people are employed in Foxconn city?
40,000
How do people live in Foxconn city?
It is self contained and high security, and most workers live on site where there are shops, dormitories and cafes
What are wages like in Foxconn city?
$150-200 a month, above minimum wage and above average for China
Why was Apple attracted to Ireland?
It has low corporation tax, 12.5%, second lowest in the EU
How many jobs have been generated in Cork?
2500
How has the company’s presence benefited Cork?
It has attracted other large firms to operate there too as well as a highly skilled workforce
How has Apple negatively impacted Cork?
Much of the workforce are foreign EU nationals, and Apple was accused of not creating enough work for locals
Why has Apple been criticised for tax practices?
It has used subsidiary firms in other countries to declare profits and pay lower tax rates
How has Apple cuased tension between the US and EU?
Both claimed that Apple owed then tax on their profits which exposed a flaw in the globalised world
What was reported about Apple’s Chinese factories in 2006?
That 200,000 workers were regularly working more than 60 hours a week for around $100 a month, half of which was taken up by living costs
Why was Apple sued by Chinese workers in 2010?
Fifty workers were poisoned by a toxic chemical used to clean iPad screens, as adequate ventilation had not been installed to reduce costs
How are children treated in Apple factories?
The same as adults, with same hours and working conditions but called ‘trainees’ or ‘interns’ to avoid prosecution
How have suicides affected Apple’s reputation?
In 2009, a Foxconn worker committed suicide after coming under pressure following the disappearance of an iPhone 4 prototype. By the end of 2010, 14 suicides had occurred largely due to working conditions
How has Apple responded to the issues in China?
It now has a Supplier Code of Conduct to audit its supplier factories regularly
Which NGO has criticised Apple’s environmental practices?
Greenpeace
What 4 environmental issues were Apple criticised on?
Reliance on non-renewable resources to supply electricity
Use of toxic chemicals in manufacturing
Factories in China discharge pollutants into water supplies, threatening public health
Lack of recyclability of many Apple products
How has Apple changed its environmental practices?
It now uses 75% renewable energy from solar farms
It removed toxic chemicals from production
Promotes recycling of products
