...Analysis of Foxconn Introduction Foxconn, or Hon Hai Precision Industry Co, was founded 37 years ago in Taiwan by Terry Gou. The company initially started as a local computer component manufacturer. Over the past decades, Foxconn had been continuously growing to become the world’s largest electronic components manufacturers with the consolidated revenue of 59.32 billion US dollars in 2010. As the largest electronic manufactures, Foxconn provides electronic components to major electronic devices manufacturers across the world. Its clients include Apple, Amazon, Sony, Nintendo, Microsoft, Dell and HP. Broad Environment Sociocultural: In the past year, Foxconn’s image has been tarnished by reports of labor protests and employee suicides. These were the result of harsh working conditions, unfair wages and a lack of communication with the media. The sociocultural trend has driven Foxconn to improve its working surroundings and its impeccable image in society. In addition, Foxconn has remained highly confidential on its internal information. Today’s society has required the company to communicate frequently with external stakeholders. This foreseeable trend will require Foxconn to become a more transparent company in the future. Political: Foxconn’s manufacture sites are located in developing countries. These countries have the trend to change in laws and regulations frequently. For example, China has changed its labor regulations in recent years. In addition, Foxconn...
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...can implement to allow them to squeeze even further profit out of their current systems. * APPLE | IPHONE 5 – SIPOC : Companies introducing Lean Six Sigma for process improvement in its organization, demand a clear understanding of its current processes. SIPOC is an effective tool used in the initial Define stage of the DMAIC life cycle for high-level process mapping of key processes. SIPOC is an acronym for Supplier, Inputs, Process, Outputs and Customers. Each of these terms are explained in detail as follows: * Suppliers are the significant internal/external providers of material/input data to the process. * Inputs are significant physical/data inputs provided by the suppliers to undergo a process. * Process is the current method used in sequence of four to seven steps that add value to the Inputs. * Outputs are significant process results delivered to customers. * Customers are the internal/external recipients of the Outputs. A team of 3-9 stakeholders or team members, who have knowledge of the process, typically develops SIPOC. A facilitated brain storming session is conducted by a certified facilitator to identity the five key components (SIPOC). A consensus is reached so that all the members view a particular process in the same way. [1] A SIPOC process map can be created during two stages in the Lean Six Sigma Deployment Life Cycle as follows. 1. Pre-Project Selection Stage SIPOC of the company's key processes provides a comparable...
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...different knowledge acquired (Hatch & Cunliffe 2006). Globalisation has enable organisations to enter new markets and reduce business cost. These organisations are known as transnationals because their routine activities have crossed borders. They are able to exert control through ownership and/or through operations (eds. Alvesson, Bridgman & Willmott 2009). In this essay, I will be using modernist and critical theory perspective and related theories to analyse how Apple as a capitalist, exercise power and over its organisation network and external environment. The first section of the essay includes the meta-theoretical frame work of the two perspectives. It also includes how the two different perspectives view power in the organisation and the environment. The second section will be my analysis of Apple using control theories and the resource dependency theory to analyse how Apple has the power over Apple’s own employees, Foxconn and the workers. Section 1: Theoretical Framework To make comparison between modernism and critical theory, it is essential to know the assumptions of these perspective using...
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...Organization Paper When looking at how a company is arranged, it is important to see how they are utilizing some key organizational resources. At Foxconn, a manufacturer who is known for making and distributing certain parts for Apple and other companies; use three important organizational functions. These are monetary, knowledge and human resources. These resources are highly intertwined and have a strong impact the organization’s success. The organizing functions of management relates to the structure of a company. It consists of the flow of authority and communication between position and levels within the organization. In any organizational structure, with every stage in the corporate ladder comes more responsibility and accountability. Usually an increase in monetary compensation comes with the accountability rather than with that of responsibility. For example, if a business goes under, the blame is never on an administrator or a sales representative, but lies with the CEO of the company. Regardless that the sales representative’s inefficiencies to meet quota or produce enough revenue could be the downfall of the organization, the CEO still has to answer for his or her employees. The same occurs at Foxconn, if sales do not meet quota the sales manager needs to provide an explanation to the sales director of what happened. Then the sales director goes to the CEO with that answer and the CEO gets to make the decision of what is the best course of action to take. In the...
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...The Operations of the Apple Company Name Institution Specify the nature, structure, and types of products or services of Apple, and identify two (2) key factors in the organization’s external environment that can affect itssuccess. Provide explanation to support the rationale. Apple remains as an American multinational organization which operates in assembling, designing, and showcasing PCs, advanced music players that are compact, versatile specialized gadgets, media specialized gadgets and programming nearby alternate administrations and application. The fundamental items that are offered by the Apple incorporate the Apple TV, the OS X, and the iOS working systems, iPod iPhone, and the Mac among others. The Apple items and services are thought to be novel and of high caliber. The interesting components of the items and administrations of the Apple make it favored by numerous purchasers (Apple Inc., 2014). Apple products are normally one of a kind in nature and offer a special utility to the clients. The Apples I Phone is a master-piece one and works and IOS which is regularly an in-house Apple's OS of the cell phones. There are no different cell phones that make use this OS consequently making the i Phones remarkable. Then again, Apples PCs utilize the Mac OS that is again is an in-house OS. Chemicals utilized as a part of the generation of the IPads and the IPhones have been observed to be a wellbeing risk (Apple Inc, 2014). Apple gets its supplies from outside...
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...technology companies in the world. In the mobile phone market, Apple now occupies the third place after Samsung and Nokia (Gartner, 2012). However, from 2006, it has been reported that the employees assembling iPhones, iPads and other devices in contract manufacturers, such as Foxconn and Inventec often work in harsh conditions. Thus, a question has been arisen that whether Apple should be responsible for the actions of Foxconn. According to the case study, this essay will argue that Apple is partially accountable for the actions of Foxconn through analyzing the theory of organizational culture and organizational structure. Analysis of Apple’s influence on Foxconn in terms of organizational culture will be demonstrated firstly. The second part will examine the reasons why Apple will be responsible for the behavior of Foxconn according to the theory of organizational structure. Finally the conclusion will be drawn. Organizational culture Apple is partially responsible for the misbehavior of Foxconn because the culture of Foxconn is partially determined by Apple. Furthermore, social responsibility could be part of Apple’s organizational culture, making Apple want to change the current situation of Foxconn. Organizational culture has become an essential element in our understanding of organizations. It is a complicated theory related to share value and shared meanings in an organization (Linstead, Fulop and Lilley). Myriad attempts have been made to define culture. Schwartz...
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...Business Analysis Part 1: Apple, Inc. Apple is a highly innovated business that entered the business world making computers back in the 1980s. They ventured out in the 2000s making non-PC devices and by the spring of 2010 had a market capitalization of $220 billion dollars. As a mutual fund manager, I have performed a SWOT analysis to determine whether or not to invest in this company. I will identify internal and external stakeholders, evaluate their needs and see how the organization measures up when it comes to satisfying those needs. Strengths Apple Inc. has been ranked number one on Fortune Magazine’s Most Admired list for the fourth year in a row according to CNNMoney (DuBois, 2011). The "The American Customer Satisfaction Index" (2012) website shows Apple with a score of 87 out of 100 points on a scale of 0-100 at the national level, this was a 13% increase from the first year in 1995. Personal Computers and HP both came in second with a score of 78 out of 100. Apple has intensive employee training in order to provide exemplementry customer service. They focus on understanding what the customer needs and provide a solution, which may be their key to innovating new products. They have an extensive beautifully designed product line that shares functionality. The Apple trademark, apple with a piece missing illuminates when the computer is on which makes it stand out as an apple product. There is a light under the keyboard making it easy to type in the...
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...Compensation Practice Pansy Hobbs Strayer University Compensation Practice Introduction Compensation Strategy is the plan set by the employer to reward the employee based on the position and the type of work among other determinant company specific factors. It spans from direct to indirect compensation. Direct compensation entails monetary reward for the work done while indirect is simply the benefits that accrue from the employment for instance health and insurance. However, it varies from company to company depending on its main activity, culture and philosophy. I set out to research about Apple Inc. This research focuses on the compensation strategies and practices, best practices applied, compensation related challenges, an analysis on how compensation is applied and the negative and positive impacts on shareholders, how labor laws, unions, and market factors impact on compensation practice and the traditional bases of pay at the company. Apple Inc is a technology company located in Cupertino, California, United U.S. The branches are spread all over the world. The founders were Steve Jobs, Steve Wozniak and Ronald Wayne. It had been incorporated in 1977. It deals with the design, manufacture and marketing of personal computers, digital music players, software’s, networking services and third party contents and applications. It's notable for its (i) radical technology. Some of its merchandise are; iPhones, iPads, iPods, Mac, Apple TV and iOS operating system...
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...Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. 3 Question 2. What are the general operational / supply chain issues in using a Chinese supplier 6 Question 3. Identify and briefly explain the specific risks / rewards in selecting Foxconn as a key subcontractor. 9 Question 4. Recommend, detail and justify operational and supply chain strategies for Cisco. 11 Question 5. Research and reference Cisco's subsequent actions using publically available material and comment briefly 13 Appendices 16 Appendix A 16 Appendix B 17 Appendix C 18 References 20 Project Diary: 26 Table of Figures Figure 2.1 Chinese Traditional Values (Jin et al., 2013). 17 Figure 2.2 Global Rate, Labour and Freight (Kumar et al., 2009). 18 Figure 4.1 Competitive Advantages. (Christopher, M., & Peck, H, 2003)…………...….….....18 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. Erhun, Gonclaves and Hopman (2007) state that risk during new product introduction (NPI) process can stem from either an internal or external source, and more critically from either a supply or a demand prospective. The challenge for Cisco during the NPI phase is to utilise an operational framework to clearly define where in the supply chain the risk is and what strategies can be applied to reduce these risks. Various operational frameworks are used...
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...Group Case Group #8 The Information Technology Industry MAN4720-011 GLOBAL STRATEGY AND POLICY Fall 2014 CRITICAL CASE ISSUES: (CI #1) INTERNAL ENVIRONMENT: Leadership The change in leadership led to changes in the internal environment and marketing strategies. (CI #2) ECONOMIC: Domestic Market Apple (iOS capable) phones are losing market share to Android capable phones. (CI #3) EXTERNAL ENVIRONMENT: Foreign Markets The Apple Corporation is criticized for manufacture issues and the lack of ability to acquire market share from foreign competitors overseas. (CI #4) SOCIAL ENVIRONMENT: Technological The Apple Corporation constantly faces criticism for various technological and security issues. I. CURRENT SITUATION A. CURRENT PERFORMANCE 2013 was a rough year for the Apple Corporation, closing the fiscal year down 29.1%. Despite the record breaking release of the iPhone 5S and 5C and a total revenue of $170 Billion, up 9.55%, net income was only $37 Billion, down 11.25% from the previous year. The Apple Corporation’s market share in smartphones was only 12.9% and 18% in application downloads. The Apple Corporation controls only a relatively small section of the computer market, but its market share has grown with the decrease in sale of windows machines. B. STRATEGIC POSTURE 1. Mission a. As of 2013: “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software...
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...Apple Inc. External Analysis Asia Think Different. OVERVIEW Goals of an external analysis to help a company better understand its position against the other players in the industry. An external audit is not to create a laundry list, but to help identify key variables that offer actionable responses (Fred David), and further eliminate surprises by anticipating such opportunities and threats. Apple Inc., is an American multinational corporation that designs, develops, manufactures and sells consumer electronics, computer software and personal computers. The company’s best-known hardware products include Macintosh computers, iPod, iPhone and the iPad. Apple Software includes the OSX system, iTunes media player and multiple creativity software. The company’s brand is known for its high level of design, ease of use, and now iCloud, operating in nearly 400 retail stores in 14 countries (apple.com). To better understand Apple’s positioning against the other players, our team has divided Apple Inc.’s line of business into regions and retail: Asia, Europe, Americas, Japan and Retail. PORTER’S FIVE FORCES Porter’s Five (some may argue 6+) model is an analysis tool that helps “determine industry profitability because they influence the price, cost and required investment of firms in an industry” (M. Porter). Rothaermal further argues that the model reflects the industry’s attractiveness. First image below shows the traditional Porter’s model with the 5 forces, where...
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...week's Discussion link in the left navigation: 1. Change Rationales Find two articles about organizations going through change. Provide a complete APA citation for each article. Answer the following questions and respond to at least two of your classmates’ postings. • What is the rationale presented for the changes? What are the internal and external pressures considered in the change? • Compare and contrast the rationales from each article. What are the commonalities presented? Are some presented as more legitimate than others? • To what extent are single versus multiple rationales utilized? What conclusions do you draw from this? 2. Force Field Analysis Find at least one significant article related to either downsizing, implementation of a new technology, or a merger or acquisition. Provide a complete APA citation of the article. • What are the key driving forces? What are the key restraining forces? • Prepare a force field analysis graph (see Figure 5.9 from your text). • Think about how to implement the change by increasing drivers or reducing restraints. • Describe and discuss the change in terms of the force field analysis in 200 words or less. Respond to at least two of your classmates’ postings. ________________________________________ Assignments To complete this assignment, go to this week's Assignment link in the left navigation:...
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...week's Discussion link in the left navigation: 1. Change Rationales Find two articles about organizations going through change. Provide a complete APA citation for each article. Answer the following questions and respond to at least two of your classmates’ postings. • What is the rationale presented for the changes? What are the internal and external pressures considered in the change? • Compare and contrast the rationales from each article. What are the commonalities presented? Are some presented as more legitimate than others? • To what extent are single versus multiple rationales utilized? What conclusions do you draw from this? 2. Force Field Analysis Find at least one significant article related to either downsizing, implementation of a new technology, or a merger or acquisition. Provide a complete APA citation of the article. • What are the key driving forces? What are the key restraining forces? • Prepare a force field analysis graph (see Figure 5.9 from your text). • Think about how to implement the change by increasing drivers or reducing restraints. • Describe and discuss the change in terms of the force field analysis in 200 words or less. Respond to at least two of your classmates’ postings. ________________________________________ Assignments To complete this assignment, go to this week's Assignment link in the left navigation:...
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...roots somewhere during the second world’s war, when Coase (1937) was trying to find some practical explanations related to the economic theory existing at that time. The differences between the perception of a firm or company and its correspondence in the real world have been assessed, making an empirical analysis of possible attributes that can influence their development in close relation to its internal factors and, and the market interactions as well. Following Coase’s study “The Nature of The Firm”, many other economic papers and theories have emerged in the next decades, leading to the development of different concepts like TCE, vertical boundaries of a company, interactions between company and market and optimal decision for the “make or buy” dilemma as it is mentioned also by (Lafontaine and Slade 2007). Contributions of Coase and Williamson The basics for TCE development have been defined by Coase (1937), making an argumentation in favor of lower possible cost of assessing some activities within a company rather than acquiring them from the market by a set of more costly transaction. Also, he has argued that preferential treatments a firm can get from external environments (like governments), combined with the possibility of reducing the market exchange transaction costs (by directing some resources through a defined organization) can be seen as the main reason for a firm to exist and grow. The dilemma of efficiency versus variable size of a company was also mentioned...
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...is the industry like? The video games industry in essence has brought arcade video games to the home of the user. Firms involved in the games console industry design, manufacture and bring to the market a host of video games consoles and games software. The introduction of the video game console in the early eighties allowed users to play video games at home by connecting the console to the users TV as opposed to traditional coin operated video games machines found in arcade centers. This innovation allowed the video game console industry to grow as the size of the potential market increased. The industry has seen periods of growth and decline over these past few decades with record sales of $23.1 billion in 2008. External factors are those factors relating to and impacting on business growth over which a firm has no direct influence or control. Such factors affecting growth within the video games console industry include advances in technological factors. These relate to not only how the games console looks and performs (graphics and speed) but also in the processes and operations involved in bringing the console to market (R&D and value chain). Increasing internet availability and trends towards online gaming will also impact heavily on the console market. Societal factors have also had a huge impact on industry growth. In recent decades society has become more health conscious and parents are more aware of the negative impacts that hours of...
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