Case Study on Apple's Global Expansion: Pros & Cons

Introduction

The Apple Company has been on a steady growth for the longest time now. The decision to go overseas has however, drawn mixed reactions from many quarters citing its benefits as well as demerits in equal measures. The most affected re the labor forces both locally and overseas. Whereas the local workers see the decision to go overseas as the greatest blow to their earning, the overseas workforce has benefitted largely from the increased job creation with the fight against unemployment given a stronger shot in the arm. The manufacturing of the iPhones overseas is known to make the iPhones cheaper by $65. The U.S wages are relatively higher than the ones paid overseas. On the other fronts, the delocalization of the iPhone manufacturing plants has presented the opportunity to the labor forces overseas to learn better and improved technology (Stephen & Timothy, 2019). The labor skill overseas like China is higher than the one available locally. The manufacturing process overseas is shorter than in the U.S. as such, and the Company benefits more by going global than remaining local.

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On the contrary, there is a wide cry over the loss of jobs locally, with more than 700,000 jobs lost permanently by local staff overseas. The job losses are a greater concern to the local laborers with the desperation more evident than before. The knowledge transfer to the overseas markets only means that the local workers will no longer enjoy the monopoly of knowledge; as such, they are open to competition (Stephen & Timothy, 2019). The less motivated local workforce as a result of the overseas growth of the Apple Company is a threat to the future of the American workforce.

Reflection on the Case Study

The case study provides deeper insight into the many organizations that have chosen to go global and delocalize their operations. Such decisions have sets of casualties including job losses and the revenue and tax losses by the government. However, in support of the observations put forth by apple leadership and management, it is clear that there is cheap competent labor available overseas which in the end increases the net profit that the company accrues. Also, the production process is quite efficient and more transparent overseas as compared to the local scale (Porter & Kramer, 2019). Therefore, it is only beneficial for the Company to move fast to tap into these available resources.

The fact that the company executives voiced their opinion could see a backlash by the local consumers. At times organizations should make their moves discreetly and without attracting the public and the government's attention (Stephen & Timothy, 2019). The strong opinions for the preferences of the overseas workforce, as opposed to local ones, can mess the local production process by attracting go-slow by the local workers.

How to Use Increased Worker Flexibility to Increase the Competitiveness of Their Manufacturing Sites

The worker flexibility means increased motivation, determination, and focus. Managers can tap into the worker flexibility to push for innovation and creativity in service delivery and manufacturing (Porter & Kramer, 2019). In the Apple case, worker flexibility in the manufacturing site can lead to workforce rotation, which, in the end, helps in beating monotony and fatigue. At some point, it is important to ensure that the organization incorporates job redesigning which can assist with the growth and motivation of the workers in the manufacturing site.

References

Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable business (pp. 323-346). Springer, Dordrecht. Retrieved from https://link.springer.com/chapter/10.1007/978-94-024-1144-7_16

Stephen, P. R., & Timothy, A. J. (2019). Organizational Behavior (18th Edition). Pearson Education, United States of America.