TNC case study

Question 1

features of the company

Answer 1

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)

Question 2

Apple success

Answer 2

due to many factors
stylish and well-designed products
successful marketing and branding - brand loyalty
regular updates and mobile - fitting customer’s needs

Question 3

Organisation

Answer 3

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)

Question 4

Apple expansion in USA

Answer 4

now employes 90,000 in all 50 states
5 data centres

Question 5

HQ in Ireland

Answer 5

European, middle eastern and African HQs in Cork, Ireland
employs 6000 on IMac production line
acts as global transport logistics hub for apple

Question 6

Produced in China

Answer 6

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

Question 7

Impacts of Apple in Ireland

Answer 7

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

Question 8

Apple impacts in China - working conditions

Answer 8

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

Question 9

China - health and safety

Answer 9

exposed to toxic chemicals
suggested earplugs and goggles not always available

Question 10

China - student and child labour

Answer 10

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

Question 11

Apple and the environment

Answer 11

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