Hey I have a discussion it is about Strategy and
Globalization. There is a scenario for Apple, read it and the discuss it. It
has two parts part1 where you are going to read the discussion scenario and the
discussion questions and then write your point of view. Part2 where are you
going to rad one of the students view and the reply and comment on the student’s
view.
Instructions:
(1 and half page long)
The Discussions are forums where you can give
your view on the proposed topic, and even respond to posts made by other
students. To be effective a Discussion should be done in depth stating both
pros and cons and giving the rationale for both sides of the question. To some
extent grading is competitive, meaning that if some posts are excellent and
deserving of all 10 points, some other inadequate posts will get less.
discussion_1.docx

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Part 1:
The Discussion:
Strategy and Globalization (Due 09/10/2016)
Apple is a huge American company with cash reserves larger than those of the US Federal
Government. From a strategy perspective, Apple products are differentiated. They are
usually higher priced. Apple users will tell you that they specifically chose a Mac, or
an iPhone, or anything else.
Apple products are renowned globally for quality and innovative design. The iPhoneis
holding strong even though Samsung has gained market share with their
Galaxysmartphones and aggressive marketing. The Queen of England has been asking for
an iPad. I hope she got it before her diamond jubilee next week. Although some components
are US-made, the products are all made in China. It would cost a little more to produce in the
US and that would cut into the profit margin.
Cash makes Apple a powerhouse in the supply chain. After the tsunami in Japan when
production was limited for many items, Apple executives traveled to Japan with millions of
USD in cash to ensure supply priority.
Discuss the operational aspects of the above. Should Apple diversify their production base, or
move some production to the US?
Part 2:
Here is one of the students view on the same discussion. I want you to reply to his view
either agreeing or not and to add some comments.
Here is one of the students view:
“I do not think that there would be a benefit to Apple if they diversified their production
base. If they began producing their products in other countries such as the United States, it
would be much more expensive than where they are currently. For example, they would
have to pay their workers much more. This would lead to an increase in price for their
products which could decrease their sales and ultimately hurt their own business.
Although it can be risky to stay in Japan due to natural disasters, Apple should take this
chance and continue to produce there. Since the company is a powerhouse in the supply
chain because of how much cash they have, ultimately, taking risks like this outweigh the
cost of an increase in production if they began producing in the United States.”

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