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The contractual relationship between apple and foxconn
Foxconn and apple case study
Foxconn and apple case study
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If you keep up with the news, then you probably have heard of Foxconn and the controversy that has surrounded the company over the last five years or so. If you have not, more than likely you are very familiar with Apple products such as the iPod, iPhone, and iPad among others. Although Apple Inc., is one Foxconn’s most popular customers, it is certainly not the only one. Foxconn manufactures products for Acer, Amazon, Dell, IBM, Ericsson, Phillips, Microsoft, HP, Nokia, Sony, and many more. A quick Google search for Foxconn will direct you to their official website. Hai Hon/Foxconn Technology Group boasts to be “the most dependable partner for joint-design, joint-development, manufacturing, assembly, and after-sales services to the global …show more content…
Once again, Foxconn was under scrutiny for their lack of negligence. The blast was caused due to aluminum dust in the polishing department. The Students & Scholars Against Corporate Misbehavior denounced Foxconn for failing to provide a safe working environment after a report from SACOM in early May brought to light concerns about the aluminum dust in the polishing department, as well as the milling machine department. The report stated that “even though [workers] have worn gloves, their hands are still covered by dust and so as their face and clothes.” Although Foxconn promised to improve these conditions and even compensate its employees, SACOM findings proved otherwise. SACOM went as far as to single out Apple for not ensuring that Foxconn put their promise into …show more content…
Foxconn admitted to using interns in their manufacturing plants, but claimed they were free to leave whenever they wanted. However, in an interview with The New York Times, Li Qiang, founder of China Labor Watch, said that “his staff had spoken with multiple workers and students who, as recently as Sunday, said that 10 of 87 workers on an iPhone assembly line were students.” The students allegedly were told if they did not work at the plant, they would not be able to graduate. Foxconn shot back at these allegations stating that only 2.7% of its workers were students. Additional reports from the Chinese press claimed that schools in Huai’an had closed order to send its students to work at Foxconn. It was believed that with the new iPhone 5 so close to being released, Foxconn was understaffed and needed as many workers as possible in order to fulfill that order. Due to these claims, the local officials in Hua’ian issued a statement ordering schools to follow policies and refrain from further
On January 1st, 1994, a treaty that created the largest free trade area were signed into place by the trilateral of United States, Canada, and Mexico. NAFTA is a promise made by world’s most significant corporations claiming to create many high paying jobs and raise the standard of living in the US, Canada and Mexico. As we approach its 21st birthday, NAFTA now links 450 million people producing trillion dollars’ worth of goods and services each year. However, behind this seemingly good deal, it also created many underlying issues. Beginning with NAFTA giving corporation opportunities to move factories aboard to the lower-cost Mexico. Manufacturing aboard did not only outsourced American jobs, it also caused manufacturers that remained to lower
The U.S and China relations has intend become very well known in the international scene. There are some many good things about trade and the economy such as competition, security, wealth, fairness, globalization interdependence and domination and strength for all countries that open their border to trade and influence between other countries. It is also a great thing to bash in politics in the U.S. There are benefits to trade to each country as wells as what are the disadvantages of the trade deals and are there certain agreements that are being manipulated and the manufacturing sector in the U.S. economy and the reason why China and the U.S. behave they say it does with each other (Mearsheimer) in the international
After Apple released the details of the new iPhone 5 on September 12, 2012, the world learned that the phone would be available just nine days later. Apple had only created a relatively few amount of iPhone 5 before the unveiling on September 12. Pressure on suppliers, such as Flextronics, caused an immediate need for manpower. Through respectable hiring agencies, Flextronics was able to hire new employees, but it was not enough. This led to hiring agencies contracting out to sub agencies, which led to bonded labor. The sub agencies would reach deep into the continent to find able bodies. The demand for the job was so high amongst the indigenous, impoverished people that the subagents placed a price on the jobs. These prices left Flextronics employees owing money to creditors even after the jobs were terminated months later. Although Apple claims they had no direct connection to this bonded labor, they eventually paid close to $16 million to reimburse the excessive labor
Free trade is a policy that lifts all trade tariffs and barriers and thus encouraging the free movement of goods (imports and exports) between nations. Agreements to free trade establish free markets where countries can engage in trade in a free and conducive environment. This type of trade is made possible by free trade agreements made between countries. According to the International Trade Administration, these agreements help minimize barriers to exports form the US, protect their interests as well as enhance the rule of law in member countries. NAFTA is one of such agreements.
I believe that one of the best investments I could make would be an FPI (foreign portfolio investment) into state-owned industries in China. Announced on April 23rd, the government has opened 8 state-controlled industries to investment. I’d recommend FPI (as opposed to FDI) in this venture because, while China is opening these industries up, they are not opening them up for control. Still, companies like Sinopec Ltd., a large oil company, are up to selling about 30% of the SBU that controls its filling stations, a unit valued at over $20 billion. As the middle class continues to grow and be able to purchase more items (like cars), the huge population’s demand for necessary products like these will continue to grow. Companies like Sinopec are adamant that they will not give up any control, and that’s why FPI would be preferable to FDI when it comes to these industries. Another significant reason that I’d prefer FPI over FDI in China is due to risk (political, socioeconomic, etc.) These companies say the reason they won’t lose control is because they don’t want to have to change their operational practices. With FPI, these companies won’t get paranoid that investors are trying to change them. The previous reasons are very specific, but China has general policies, procedures, and trends in place (good or bad) that make it plain for investors to see that they are wanted, and business is a priority. China has an autocratic government, which is very efficient in getting things done, so it is more conducive for companies to work in. China also has very low wage costs ($1.74 per hour). Also, China has some of the least progressive environmental regulations laws, which lowers costs. China’s GDP growth rate is still at 7.5% (14th in the wor...
Globalization has caused the world to change. Our country, China has been dramatically changed by globalization. Our people have moved to cities, and our industry has exploded. We have had huge advances in technology along with education improvement. Despite the fact that China has changed so much, there are still many issues that plague it. China faces serious environmental concerns. New diseases and viruses that are not indigenous to China can cause a wide range of sickness in the new area. Despite some of the the improvements in China that are a result of globalization, the negatives that globalization has brought to China are more than the benefits.
Apple Inc. headquartered in Cupertino, California was founded in 1976 by three men named Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple Inc. has a strong presence worldwide; the company currently has 478 Apple retail stores in 17 different countries. The company focuses primarily on designing, developing, and selling electronics, computer software, and online services. Some of the hardware products are; iPhone, Mac laptop, the Apple watch, and the iPad tablet. Apple Inc. has become one of the most important American companies due to its innovative skills. According to a Forbes article, “The Boston Consulting Group ranks Apple as the world’s most innovative company. Apple has topped BCG’s list of 50 companies every year since 2005.”(Adams,
Apple Inc. originated out of California in 1976. Steve Jobs and Steve Wozniak dropped out of college together to begin making technology in their garage. Apple’s technology skyrocketed becoming one of the top technology producing companies. They fell short in the nineties though, companies began to catch up and now there was more competition than before. Apple released their ipod in 2001, putting them back in the leadof the technology industry (The History of Apple). Presently, Apple is still exceeding other companies in the technology industry, such as Microsoft, Blackberry, Google and Hewlett Packard. Microsoft is Apple’s largest competitor, which is revealed through the Dupont analysis and other activity ratios, these particular ratios also make known that Apple’s numbers are not all accurate.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
Organisation Analysis Apple - Value proposition and Culture Apple - Company Description Apple Inc., was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on 1976, is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Its consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites. Apple is the world's second-largest information technology company by revenue and the world's third-largest mobile phone maker. “Fortune” magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012.
The central facts for Foxconn involved protest by 150 of the 32,000 employees at its campus in the city of Wuhan in China and suicides by 18...
The major competitors of Apple are Dell and Samsung out of which Samsung is the
Apple Inc is a multinational organization in America and has its headquarters in California. The organization specializes in the design as well as development of consumer electronics including: computer software 's, and also personal computers. The organization has for long been offering a broad range of communication mobile communication as well as its own company software’s. The organization has quite an upright name in the business world. For a long period it has been producing quality product and their designers really bring out uniqueness in their products (Linzmayer, 2004). Apple Inc has established itself as being the world’s leader in innovation. Thus according to statistics; it is classified as being the fourth most valuable technology
Having poor working conditions impacts the society in such a way that workers are depressed and do not work in peace. Apple should look for ways in which their suppliers can offer working conditions that are humane. If the current suppliers do not improve their working conditions, then Apple should consider looking for other suppliers since the working conditions of their workers should be of most priority (Apple Inc. 2016). Moreover, having good working conditions will attract more qualified personnel into the company, thus increasing the quality of their products. However, the main problem in Apple making sure that their suppliers offer better working conditions is that Apple has no legal liability in any operation that happens in China factories since their ownership is by separate manufacturers. It, therefore, gives Apple the dilemma of choosing between what is correct morally and what is correct legally. It also represents situations that are unfortunate since an action of being socially responsible is not what is best for the running of the business as using cheap labour to minimise cost has led to Apple to achieve margins that are spectacular and profits on its products (Dhaliwal 2011, 59-100). Apple should keep in mind that the aim of business is not always based on making profits since long-term goals are
Further investigations revealed Foxconn had been guilty of unsafe and unfair working environments long before the incidents, which included the employment of extended working hours, discrimination, and military management techniques (Xu & Li, 2013). Due to Foxconn’s sole focus on maintaining businesses relationships by fulfilling Apple’s demand of technical products, their subsequent mistreatment of employees was exacerbated and generated 80-100 hours of forced overtime per week (Xu & Li, 2013). However, in an attempt to combat the negative publicity, each firm denied responsibility for the incidents, which ultimately added fuel to the media fire (Xu & Li, 2013). Since then, each firm has enacted superior regulations designed to maintain efficiency while recognizing limitations on labor hours and increased spending on compliance audits (Chandler & Werther, 2014). Yet, as Foxconn continues to sustain their global leadership and Apple’s profits remain unaffected, the disadvantages associated with the incidents at Foxconn have not transcended the outcomes. From a profit standpoint, the increase in spending and subsequent alterations of labor methods serve as the biggest disadvantage to each company’s bottom line. However, after both companies attempted to negate blame, their ensuing developments indicate assuming responsibility was the best avenue to recoup reputation issues and focus on long-term growth. Therefore, the greatest advantage for both companies was their heightened reputation resulting from increased transparency and the employment of business models focused on the welfare of all supply chain