intro to business apple

Pham Hung Thinh – 1258076Nguyen Tan Huy – 1258023

Dang Vo Kim Hieu – 1258020Huynh Thanh Nguyen - 1258042

Content 1. How apple get into the dynamic

business environment. 2. How economics and Apple

Company affect each other. 3. Apple Doing Business in Global

Markets. 4. Demanding Ethical And Socially

Responsible Behavior.

Introduction American multinational technology

company.

Product

Service

Apple Revenue and Profit(in Billions)

2011 2012 2013 2014020406080

100120140160180200

108.25

156.51170.91

182.8

43.8264.3 68.66 70.54

Revenue Profit

Outsourcing

Factors of Production

StrengthsReputation Customer loyalty and expanding close ecosystem Marketing and advertising capabilities

Weakness High price Weak direct distribution channel in China and India

Threats Competition Rapid technological change

Opportunities Acquisition of valuable company Growth of tablet and smartphone markets

SWOT

HOW ECONOMICS AND APPLE COMPANY AFFECT EACH OTHER Microeconomic analysis Macroeconomic analysis

Microeconomic analysis

Demand and Supply factors of company’s sales and profitability.

Microeconomic analysis

Microeconomic analysis The market structure of the company:

oligopoly (IPhone), monopoly (IPad). Elasticity concepts of the company. Efficiency of the Apple’s Inc resources.

Macroeconomic analysis

How economic growth influences Apple Inc.

The connection between the unemployment and Apple Inc.

The impact of inflation on Apple Inc. Balance of payment.

Business Cycle Expansion Phase Prosperity Phase Contraction Phase Recession Phase Expansion Phase begins again.

APPLE DOING BUSINESS IN GLOBAL

MARKETS

Apple with the Dynamic Global Market

Apple dominates the tablet segment and is the No.2 smartphone manufacturers in the world

Does Apple have a franchise?

Apple Inc. utilizes some global strategies

Foreign Outsourcing China and India are two main countries

At the moment, China is Apple’s focus for global expansion

Cooperate with Suppliers and distributors

Moblie Network: AT&T Verizon Communications T-Mobile

Electronic components Foxconn TPK Holdings Quanta Computer

International Barriers FinancialPolitical

CULTURAL DIFFERENCES

DEMANDING ETHICAL AND SOCIALLY RESPONSIBLE

BEHAVIOR

Apple Company’s Reputation

Apple Social Responsibility Community Environmental Ethical Sourcing

Code Of Ethics• Suppliers must treat workers fairly and

ethically at all times Building environmental responsibility into products and processes Going deep into supply chain to enforce the standards and correct problems

Community Involvement Minimization on Apple’s carbon foot-print

and restricted use of harmful materials Doing different special events to increase

public awareness about issues

CSR Projects and Programmes in India (private)

• Promoting education, including special education and employment enhancing vocational skills and livelihood enhancement projects

• Ensuring environmental sustainability• Promoting gender equality and women’s empowerment• Promoting healthcare including preventive healthcare • Contributing to – or funding – technology incubators located

within academic institutions which are approved by the central government of India from time to time

• Providing disaster relief under applicable items in Schedule VII of the CSR Requirements

• Providing financial assistance to reputable non-governmental organisations (“NGOs”) working in any of the above indicated areas.

Apple recycling programs

Environmental highlights in 2014

Apple runs 100 percent of its U.S. offices, data centers, and retail stores with renewable energy.

Apple designed iPhone 6, iPhone 6 Plus, and iPad Air 2 to be free of beryllium.

Apple grew its Clean Water Program from 13 supplier facilities to 49, covering 59 billion gallons of freshwater usage per year — the equivalent of about 89,000 Olympic‑size swimming pools.

Every Apple Retail Store in the world began taking back Apple products for free, environmentally responsible recycling.

Apple enrolled 392 additional supplier facility managers in its Environment, Health, and Safety Academy. The academy now includes over 216 supplier sites representing 900,000 workers.

Apple began construction on its micro‑hydro facility in Prineville, Oregon, and its solar plant in Yerington, Nevada, to provide renewable energy for its data centers.

Scandal of Apple and Foxconn

Three workers at Foxconn Technology Co Ltd died in a blast when dust from polishing iPads ignited, and labor rights groups have said 18 workers at Foxconn sites killed themselves, or tried to, in 2010.

Scandal of Apple and Foxconn

Allegations of poor working conditions have been made on several occasions.

News reports highlight the long working hours

Discrimination against mainland Chinese workers by their Taiwanese co-workers, and lack of working relationships at the company

A series of suicides linked to low pay in 2010

Improvement and solutions

Foxconn installed suicide-prevention netting at some facilities

Promised to offer substantially higher wages at its Shenzhen production bases.

Workers were also forced to sign a legally binding document

Improvement and solutions

Apple Supplier Code of Conduct

References http://www.cbsnews.com/news/apples-tim

-cook-visits-foxconn-in-china-speculation-ensues/

http://www.theguardian.com/technology/2013/jul/29/apple-investugates-claims-china-factory

https://www.apple.com/in/legal/policies/Apple_India_2015_CSR.pdf

https://www.apple.com