Organizational behavior

Case study :1- Apple Goes Global

Question answers 1-15:
Apple’s decision to manufacture its products in China using inputs sourced from
multiple countries is beneficial for the overseas labor force where new jobs are
created and spillover effects can generate other benefits for the local economy.
Local low skilled labor forces will suffer from a loss of jobs, however higher
skilled labor involved with product development could benefit it Apple’s products
continue to be in high demand. While the “export of jobs” can create tension
between China and the United State, U.S. companies could stand to benefit if
China’s now wealthier labor force increases its demand for U.S made or designed
products. When the electronic appliance giant decided to move globally, it was the
high time for the economy to expect a growth, but the manufacturer, led to the
increase in the unemployment rate in the country as most of the employees were
laid off. The reasons given were that the labor cost in the developing countries is
cheap as compared to the United States. The labor cost was making a lot of saving
for the company. The additional cost of labor was adding money to the overall cost
of the appliances. The pros for overseas workforce were to get more opportunities.
This had boosted their economy. It led to the reduction of the unemployment rate.
The cons for the local workforce were that the unemployment rate increased. This
led to the increase in pressure to train more workforces and create more work
opportunities. The potential relationships between the two countries may get
spoiled because one country is getting an advantage of the local country.

Question answers 1-16:

Apple has a responsibility to its shareholders to maximize sales revenue
at the lowest possible cost, and in order to do that they need to recruit
talented people of any nationality and pay them as little as possible. So
that means that they should seek for talent throughout the world, and if
they have to choose between two candidates of equal ability, they should
pick the one who comes from a low-cost country so that the salary cost
will be lower. Not to mention the fact that many Americans expect to get
medical insurance and other high-cost fringe benefits, effectively pricing
themselves out of the game. It is depending on the personal ethics and
attitude of individual students. Many students will agree with Apple
executives, others will suggest that the Apple executives were too quick
to move production overseas. Others still will state that Apple should
support the U.S. workforce and keep its manufacturing at home. The
truth lies somewhere in between. If the U.S. workforce can be deployed
to produce higher-value skill such as idea generation and development,
then lower-level assembly skills should be moved abroad. It is certainly
true that many global organizations will reduce employee numbers
abroad first rather than home-based employee numbers. Every company
seeks for increasing its profit, so if the case of that would be by
employing an overseas labor, so from a business overview this would be
the ultimate solution for them to increase their profit, but from a moral
point of view yes, the company should provide jobs for the local citizens
first as I believe that most of the top management in the company are US
citizens, I don’t think that this would put the international employees at
any distinct disadvantage.
Question answers 1-17:
No, because the political and social system in China was quite same as
U.S. it can be see, in China workers cannot form independent trade
unions in the labor market which affect wage level. Besides that, in
China the government allows the foreign manufacturing to do their
business in China. It is important for Apple executives to ensure that the
Chinese factories embrace its corporate values and approach. This mean
that training, communication, and leadership are all important
developmental factors. It is already known that the Chinese employees
are more flexible and diligence also their payment are low, so by
conducting some strict items in their contracts they will be able to
manage them better.