TNC case study Flashcards
features of the company
transnational technological corporation - produces range of high-tech products and services (e.g., Iphone and Apple Watch)
Company HQs based in Apple Park in northern California
2019 - largest IT company by revenue
3rd largest phone manufacturer
137,000 full time employees
over 510 retail stores in 22 stories (over half in USA)
Apple success
due to many factors
stylish and well-designed products
successful marketing and branding - brand loyalty
regular updates and mobile - fitting customer’s needs
Organisation
main products designed in California, made in China by Taiwanese based company (Foxconn and Pegatron)
Most employees based in HQs - mainly USA (highest economic development)
reflecting high-tech, knowledge intensive nature
those manufactoring products employed by other comapnies - 2.5 million (nearly 20x more than thosee employed by Apple company)
Apple expansion in USA
now employes 90,000 in all 50 states
5 data centres
HQ in Ireland
European, middle eastern and African HQs in Cork, Ireland
employs 6000 on IMac production line
acts as global transport logistics hub for apple
Produced in China
low production costs
large, young, skilled, and non-unionised workforce willing to work long hours
special economic zone (SEZ) e.g., Shenzhen most successful in China offers incentives to attract foreign companies
Impacts of Apple in Ireland
lured to locate in 1980s with EUs second lowest corporation tax at a time of high unemployment
6000 employed
enhanced Ireland’s reputation and global connectivity
attracted other high-tech corporations in area
attracted highly skilled workforce and provided inspiration for local education, research and development
Apple impacts in China - working conditions
workers at Foxconn’s factory complexes mainly live on site
most young migrants working average 62 hours weekly around $300 monthly
half going towards living expenses
aim to reform conditions
China - health and safety
exposed to toxic chemicals
suggested earplugs and goggles not always available
China - student and child labour
2017 - student interns found to be working excessive hours against own policies
apple doesnt allow under 18s to be employed due to commitment to social responsibility
in response - apple demands limit of student interns to 10% of workforce
Apple and the environment
following criticisms following green peace talks in 2000s responded with ‘green my apple’ campaign
uses 100% renewable energy in US facilities (created apple energy copany mainly generating using solar panels)
removed all toxic chemicals from products
promotes recycling
ongoing commitment to tackle green issues
2016 - issues $1.6 billion green climate bond dedicated to financing environmental projects
