Essay Week 1 Case Study Dodd Vernon - 955 Words

1. Read the case entitled â€Å"Who Makes the Apple iPhone?† on page 33. 2. Answer the following questions in three pages. 1. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? What are the potential costs and risks to Apple? Lower labor cost is one of the most basic reasons but as the case points out, that was only a small consideration. Apples ability to scale production up/down very quickly and even with short based on demand and based on product cycles seems to be one of the greatest benefits. China has more capacity, flexibility and seems to be willing to take larger risk to win business. This is evident in the article with the plants willingness to begin scaling†¦show more content†¦China Tech and manufacturing industries are benefiting because of the need to use highly skilled workers for research and development and to be innovative as they produce products for Apple. In doing this, it raises their competency levels and ability to remain technically competitive. China in general benefits as they develop a good reputation as a provider of goods and services for major companies such as Apple. 3. What are the potential ethical problems associated with outsourcing assembly jobs to Foxconn in China? How might Apple deal with these? Reputation damage for Apple is the largest issue in my opinion. Apple needs to be careful to not partner with an organization that treats their workers poorly, underpays them or takes advantage of their economic situation. If this were to happen, Apples reputation would be in jeopardy just like other companies have struggled with in the past (such as Nike and Martha Stewart). To prevent this, Apple simply needs to monitor and manage the relationship with Foxconn to ensure that they maintain good, safe and ethical work operations. The perception may be that outsourcing the work to China is taking advantage of the poor economic conditions where Chinese employees mistreat employees with low pay, long hours, mandatory overtime (often for little or no extra pay) and subject them to poor working conditions that can lead toShow MoreRelatedMerger and Acquisition: Current Issues115629 Words   |  463 PagesData Mergers and acquisitions : current issues / edited by Greg N. Gregoriou and Karyn L. Neuhauser. p. cm. Includes index. ISBN 0-230-55379-6 (alk. paper) 1. Consolidation and merger of corporations. I. Gregoriou, Greg N., 1956– II. Neuhauser, Karyn L. HD2746. 5. M4365 2007 338.8’3—dc22 2007021799 10 16 9 15 8 14 7 13 6 12 5 11 4 10 3 09 2 08 1 07 Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham and Eastbourne To my mother Evangelia and in loving memory of my father NicholasRead MoreDamodaran Book on Investment Valuation, 2nd Edition398423 Words   |  1594 Pagesthough, that you can do me a favor as you go through the manuscript. If you find any mistakes - mathematical or grammatical - could you please let me know? It would help me ensure that the typos do not find their way into the final version. Chapter 1: Introduction to Valuation Chapter 2: Approaches to Valuation Chapter 3: Understanding Financial Statements Chapter 4: The Basics of Risk Chapter 5: Option Pricing Theory and Models Chapter 6: Market Efficiency: Theory and Models Chapter 7: Riskless