01. What is meant by globalization of human
capital? Is this inevitable as firm increase their global operations?
Globalization of the human capital is one of the most
inevitable and a most dynamic factor in the globalization trends. Whether it is
low cost and skilled manufacturing people in China, well specialized IT and
customer service workers in India, or highly intelligent and competent workers
in US, companies now have the ability to access new pools of human capital
across the globe that can have a profound influence on their strategy and
structure and the entire business as a whole. In past most of the companies
were started within the boundary of the country’s land. But now days in general
the companies are trying their best to move forward out of the boundary as much
as they can. Mostly the companies go out of the county in order to get supplied
some most important resources specially the labor. Low cost labor will help the
companies to control their overall cost and that will enhances the productivity
of the company. Mostly when some companies start their businesses in global
scale by developing innovative features. Here, Globalization of human capital means
that globally sourcing the human needs of the company. Companies can get
supplied law cost and skilled laborers from China, mostly the companies are outsourcing by making contracts with the
local companies and then in to their global supply chain. Large number of firms
has been producing and assembling many of their products in many countries,
that is outsourcing by contracting with a local firm and then intergrates them
in to the global supply chain. Numerous firms supply many white collar jobs to
India, Philippine, China, Mexico and etc for the vocations like IT sector
related jobs, Customer support, technical work and health sector related work.
Basically these are the jobs now moving around the globe.
02. How this case does illustrate the threats
and opportunities facing by the global companies, in developing their
There are number of threats that the global companies are
facing, and due to that problem there can be many jobless people leaving
throughout the county. And basically many companies specially the international
companies and not treating their employees with fairly in relation to the
payment and the working hours that they are working for. So there is a legal
threat as well. And because of the opportunities that the companies are facing
and their ability to obtain low cost as well as skilled employees from the
global economy they can do their productions effectively and they can sell them
at a higher price by earning a higher profit.
In here, we can clearly identify the opportunity that the
Apple has basically because of this global economy. Because it case clearly
mentioned the profit margin that that Apple is entitled to. Breaking down the
retail price for Apple’s iPhone, for an example as Time Magazine estimations, $61$
worth comes from japan, $30 value comes from Germany , $23 of its value comes
from South Korea, and $7 from Chinese assembly lines, $48 from unspecified
activities and $11 from US. So the overall total is $179.their retail price of $500.
It is so clear that their earning $321 of profit from one of their
products. And the case study also
mentioned that only in first quarter in 2012, they earned $12 billion profits.
This is kind of a huge profit for them as a global company. Mostly the Apple
can obtain many high-tech company facilities and the other needing parts,
technology, the workers including high skilled engineers and the other workers
from all over the world which are not readily available in US.
And when we turn in to the treats that the company is facing, when it comes to the
Appel’s point, because of the President Obama’s inquiry on outsourced jobs, it
create a kind of negative image for the company as a whole. Labors in
developing countries face terrible working conditions. And all what he said was
“why the company cannot bring back all the jobs that it used to provide in US.
When the political threats and the influential statements like this will leads
to damage the company’s reputation. And
these low cost assembly workers get injured in the assembly lines. And
breaching the US laws by using the toxic chemicals. So there are number of
barriers for companies who are operating in the global scale.
03. Comment of Apple’s executives assertions
that the company’s only obligation is making the best product possible. “We
don’t have an obligation to solve America’s Problems”.
This is a very influential statement at a glance but we have
to agree with this statement. Since he
is representing his firm and this company’s main objective is to make profits,
their main objective is to deliver a super quality product for its consumers
and position it as the best product in the consumers mind. They have a primary
obligation only for its customers and the shareholders. In order to do so the company has to make its
products in that expected quality there has to produce them in a lowest cost. So
they create a quality product and they sell it at a reasonable price. So they
do fulfill the need of their customers and the shareholders. But if on the
other hand, Apple were a political company or non-profit organization, then
they have a responsibility to fulfill the requirements of the above mentioned
statements. And the company is not responsible to solve the Americas problem of
increasing their employment rate by giving up one of those interested parties’
needs. So we agree with this statement. Because the only objective of Apple is
to produce the best quality and an excellent product to its customers, so there
is a need to obtain the best resources from the places in the world. They do
not responsible to create many job opportunities to USA.
04. Who are the stakeholders in this situation
and, what if, any obligation do they have?
In this case study we can identify that there are two stake
holders in this company. The stakeholders are the companies Apple & Foxconn
and the Chinese government. They need to
be more conscious that since its headquarters are in the US it should do all
that it can to maintain a positive image. And since it’s a company which
maintaining a high quality and a huge brand everyone expect the best from them
and it is their obligation to be more faithful and the best quality good
provider to the customers and the workers who work 24/7 for them. This is
applicable for the foxconn to. They have a responsibility to provide an
adequate payment and a time to rest. And the governments also have a
responsibility to ensure the safety of the people from any time of pressure