Apple Inc.

Brief History 1975- Steve Jobs drops out of Reed college,

founds Apple computers 1980- Apple launches IPO of its stock to

public 1984- Launches legendary “1984” commercial

in preparation for Macintosh launch 1985- Jobs fired after internal power struggle 1997- Jobs returns as CEO, legendary success

ever since

Corporate Structure

• Apple Inc. has a “family culture” feel with a strong emphasis on hierarchy and orientation to the person.

Headed by a leader (Steve Jobs) who is seen as a “caring parent”

Very bottom-heavy, about 20 designers are the brains behind almost every Apple innovation since iMac

These designers work in conjunction with engineers

A success story not without faults

• Apple Inc. is a textbook success story, but it comes with both successes and failures in international management.

– China

– Foxconn Technology Group

Apple in China

• Apple is already facing problems from Chinese counterfeiters. What will the future hold for Apple Inc. in the east?– Fake Apple Store in China

– Apple Secures Patents

– Chinese Police Crack Down

– Apple Opening Stores in China

– Further Mobile Expansion in China?

– Official List of Stores in China

Apples component producer, Foxconn

Apple is currently using Foxconn to make iPhones, iPads, and iPods. What kind of conditions do these workers face?

• Suicides Swell at Foxconn• Three Dead in Foxconn Exp

losion• The Dark Side of Apple (Fo

xconn Conditions)• Brazil, The Next Frontier of

Foxconn?

What Steps are Apple Taking?

• Apple is addressing issues at Foxconn– Apple Responds to Foxconn

– “We’re in direct contact with Foxconn senior management and we believe they are taking this matter very seriously. A team from Apple is independently evaluating the steps they are taking to address these tragic events and we will continue our ongoing inspections of the facilities where our products are made. [Apple is] saddened and upset by the recent suicides at Foxconn.”

The Truth at Foxconn?

• Foxconn suicide rates may not be what the media has portrayed.– Did The Media Get it Wrong?

Class Discussion

• Do you think Apple’s expansion into China will pose further problems?

Class Discussion

• Is Apple’s hesitation in China due to piracy issues?

Class Discussion

• Do you think Apple is effectively combating piracy?

– How does this approach differ from Microsoft's?

Class Discussion

• Do you think China will continue to work with Apple in fighting piracy?

– Will these efforts be effective?

Class Discussion

• Do you think Foxconn conditions in Brazil will be better or worse than in China?

Class Discussion

• What general advice might you give Apple in specific about dealing with China?

– What specific advice could you give Apple when dealing with Foxconn?

– What specific advice could you give Apple when dealing with the Chinese Government regarding piracy?