How Apple Incs Strategy Is Affected After Globalization Economics Essay

How Apple Incs Strategy Is Affected After Globalization Economics Essay In this twenty first century, globalisation has an impact in every economy. World of today is considered to be united as a bunch countries with no boundaries. Raw materials from different countries are being processed in another country to manufacture goods products are being marketed in another country. It is the modern concept of the globalisation. A company goes international for so many reasons like, small domestic market, adverse government policy in home country, high demand of the product in foreign market etc. FDI across the globe had a fixed upswing with a sharp growth in the second quarter of 2008. Even it was not affected so much by financial crisis during recession in 2008. FDI is mainly originated from the advanced economy like USA.[ Peter Dicken] In this essay we have chosen famous electronic gadget manufacturer APPLE as our company, which is mainly based in USA, has expanded its production unit in EUROPE and ASIA. It is manly famous for introduction of a new age in mobile phone industry by brining iPHONE MACBOOK in pc section. Recently they have launched iPAD in the market which turn to be a great success. How their strategy has been affected when they go global by the main three factors (1.Technology.2.geography.3.goverment policies ) has been described below. TECHNOLOGY: For a product to become more acceptable by quality, implied technology of production plays an important role. Foreign direct investment prospects can be propelled to a new level if the quality of production can be retained in a cost effective manner. Hence, investment opportunity of a country is significantly influenced by its internal development, technology and growth. These intrinsic developments are always in the lamplight of MNCs and are effectively made use by them. Apple has met its investment prospects in China as this country maintains the unique work quality in assembling the inputs for final production. As a part of corporate global strategy, company has given outsourcing more importance at the same time imparting mandate high control over product integrity. When apple produce iPods in China, it is not produced in a factory owned by Apple. It is been contracted with third party to produce IPods with the specifications Apple provides. Moreover from outsourcing, Apple is sourcing quality products for assemblage from foreign countries and some even from China itself by fragmenting its supply chain very effectively. The standard of factors of production is set to meet the requirements set by Apple Inc. If the company is not successful in monitoring the strategy which is being implemented in a country, it will eventually destroy companys reputation. The subtle implementation of internationalisation strategy is been spawned in such a way that Apple products are leveraged to its maximum utility. For leveraging the products to its maximum levels, sophisticated research and development is being carried out through international investments and intrinsic ground-breaking technologies. Trade theory gives light by how much proportions the various factors of inputs needed at each stage of a production process, together with various inputs at comparative costs, influencing the investment proposal. As technology is one of the important input of production, while framing up an international strategy it has to be dealt well while investing in a foreign country. The comparative cost of the technology brought forth for production is very significant as it contributes to the international pricing strategy. The quality technology which is been generated in China holds cost advantage when it is compared to the same technology implemented in US. Advanced technology is pioneer to production of any innovative products but this technology has to be accessed in a cost effective manner to produce competitively priced product. Skilled labour is another requisite which should be considered in quality production. High cost of labour in United States of America can be a down beating fa ctor in home country which can be eliminated through foreign direct investment. Hence, advantage is been derived in the host country in terms of technology implementation through skilled labour force at low cost. Apple Incs business establishment in China is a subtle example for their tactical part in internationalisation strategy. GEOGRAPHY: The geographical dispersion means that companys activities are not concentrated to a single country rather it is dispersed between different countries. The production in foreign country can be commenced in two ways namely Merges acquisition and Greenfield investment. Greenfield investment means setting up a new plant and physical assets in the foreign country whereas Merges acquisition means merging with a foreign firm or buying existing assets in a foreign country. The cost of geographical dispersion can be of three types which is firm level, plant level and the economies of integration foregone. Almost 54% companys geographical market place is situated in United States. Final assembly of companys product is mainly done in Ireland by external vendors in California, Texas, China, Korea, etc. Manufacturing supply of many critical components is executed by sole sourced third party vendors from Taiwan, Germany, US, Germany, Korea, Netherlands etc. But main assembly part is done in China by sole sourced third party vendors. That means its production input has been divided into sub category situated in different countries. So it is an example of centralized vertical Foreign Direct investment by apple where its headquartering is situated in US. The benefit of geographical dispersion for the company is that, it is able to reduce the cost of primary input as the price for inputs varies in different locations. It also helps the company to lower operating cost and reduces the companys direct control over the production and distribution. This also helps in lowering the trade cost and enables it to capture the markets. For example, the investment decision to manufacture the products from China helps the company to have a better control over the Asian markets. Also the cost incurred in exporting the products from United States to Asian market is much lower when it is from China. The firm also enjoys economies of scale as the cost of production is less due the dispersion and the company is able to employ skilled and cheap labor. In spite of its benefits, its uncertain what negative effects will this have on the company. The diminished operational control may have an effect on the quality of the products or services or its flexibility to respond to changes. This may adversely affect the reputation of the company. Another problem is that, if the manufacturing or providing logistical services in the other country is disturbed for any causes like natural disaster, war, political issues, public health, failure in information technology system, financial crises may materially affect the companys financial condition and operation. GOVERNMENT POLICIES: The vertical foreign direct investment strategy of Apple is advantageously and manifestly framed up by the influence of political environment or trade policies that operate within the country. The supply chain is fragmented and for assemblage, the Apples input commodities are sourced from special enterprise zones of China where much of import duties and taxes are waived. The government trade policy influences the intricate supply chain management and outsourcing of the company. Apple being an American multinational propels a strategy that insulates itself from foreign exchange risks. The price the company has to pay for a specific input item in a specific country is influenced by the exchange rates of currencies at the time. The company exhibits a pattern of a good net receiver of currencies except the American dollar. As the US dollars gains strength, it will negatively affect the Apples net sales and gross margin articulated in American dollars. Financial innovations are spawned by the international financial flows. The financial innovations are greatly influenced by the monetary and fiscal policy of a government. This level of influence determines the stability of economic performance. As US government tends to maintain very low interest rates to support the demand for housing and promoting the revival of building industry, international capital flows are possible. It may result in more capital outflows and a weaker dollar. An immediate effect can be not iced in the US output as a result of more US exports. Thus for Apple, weaker dollar gives more euro earning and allows it to state an elevated profit rate to it stakeholders. [Linden 2008] Many financial innovations are spawned out from the introduction of capital flows. There is an economic significance of international financial instruments like forwards or options when Apple deals with it. July 2008 Company reports stated that the Apple inc was willing to enter into forward and option dealings of foreign currencies. This also included some strategically committed transactions, the investment company possessed in foreign subsidiaries, forecasted future cash flows etc. Evidently, practice of the company was to hedge a large number of its material foreign exchange exposures for some months. [Apple inc, 2008] The progression of this model imparts light into the strategy framed up by Apple in tackling the effect of rising prices too. A developing country like China has remarkable success in controlling the inflation. Apple has a peculiar stake in China where country exhibits success in managing its economy from extreme pressures and creating higher inflation rates. Chinese central bank put forward a straight policy in framing up the exchange rates. Till July 2005, the policy upheld was to fix the rate it levied to exchange Chinese currencies for American dollars. In this context, Apple could assertively forecast the exchange rates weeks in advance. [Apple inc, 2005] Apple endeavours to do outsourcing in the country where there is minimal legal regulations as they can maximise their profits. As the operations are mainly concentrated in China, Apple Company has got relaxation from heavy tax burdens. Vertical specialisation with internalisation keeps the production cost low at the same time company benefits from low trade cost. The company is getting more and more innovative by research and development. Proper caution is taken as the economy breeds the risk of a global financial downturn that could have disastrous effect in their business. At last , after analysing the all the factors that affects companys internationalisation foreign direct investment we can conclude Apple is truly globalised . That means it has stretched its corporate arms in such a way that we can say that for Apple the difference across countries does not matter. They have fragmented their production parts across countries sell its products all most around the world just to take the benefit of the internationalisation globalised concept. Their main strategy is to take advantage from different counties favourable condition that helps their business to gain more revenue using economics of scale. As we have discussed the main reason of their expansion of business in China are cheap labour costs, higher productivity of Chinese labour output huge demand of Asian market. They also want to take benefit from the exchange rate investment friendly government policy. It is proved from their establishment of unit in China Ireland. Their well organized gl obalised business strategy has helped them to spread their products world wide almost in every country, which is much more appreciated from the point of view of internationalisation of a company. In every of their business strategy the concept of true globalised company can be visualised.[ Peter Dicken]

Outline and evaluate psychological explanations for OCD Essay

The cognitive approach assumes that OCD is a consequence of faulty and irrational ways of thinking taken to an extreme. Patients with OCD have different thinking patterns and more intrusive thoughts. The cognitive explanation stresses that everyone has unwanted thoughts from time to time, but OCD sufferers cannot ignore these thoughts and they are often misinterpreted, leading to self-blame and the obsessive symptoms of OCD. So that the negative thoughts and concerns associated with a particular anxiety do not come to pass, compulsions arise in an attempt to ‘neutralise’ the anxiety. The sufferer becomes more wary of having intrusive thoughts and their fear of them increases. As these ideas are constantly thought about, they become obsessive and a pattern of ritualistic, repetitive behaviour begins. A strength of this theory is that there is supporting evidence. For example, Wegner found that a group of students asked not to think of a white bear were more likely to do so than a group allowed to think about it. Salkoius found that when asking participants to suppress thoughts and on other days not to, the participants kept a diary of more intrusive thoughts when they had to be suppressed these findings support the idea that a deliberate attempt to suppress thoughts leads to an increase in these thoughts; supporting the main ideas of the approach. This is a strength because the two studies have found similar findings and are therefore externally reliable. This makes the cognitive approach reliable as a whole because it can be checked and verified and the theory has sound foundations for further research. However, a weakness of this theory is that there are problems with the evidence. For example, Salkoius used self-report methodologies in order to measure the thoughts of the participants. This means that the results may have been subjected to social desirability bias. For example, the amount of intrusive thoughts may not have all been recorded in the diaries in order to please the experimenter; they may not want them to know how bad their symptoms are due to feelings of embarrassment. This is an issue because it means the study lacks internal validity; the intrusive thoughts in the diary are not caused solely by supressing them, but there are other extraneous variables such as embarrassment. We therefore cannot prove cause and effect to show that suppressing thoughts lead to symptoms in OCD, so there are other factors the cognitive approach needs to consider in order to offer a causal explanation. However, although there are issues with self-report methodologies, they can provide a greater insight into the participant’s thoughts and a greater level of detail. They are allowing the participants to describe their own experiences rather than inferring this from observing participants. It therefore provides access to a high level of quantitative data.

Oxidation of Benzoin and Rearrangement of Benzil to Produce Benzilic Acid Essay

The objective of the lab was to produce benzilic acid from benzoin. Benzoin was successfully oxidized with nitric acid to form benzil. The percent yield of benzil was 59.26% and the melting point range was 94.1-95.5Â °C. The literature melting point of pure benzil is 95Â °C, which indicates the correct product was obtained. Benzil was then rearranged using potassium hydroxide to form benzilic acid. The percent yield of benzilic acid was 57.94% and the melting point range was 147.9-149.8Â °C. The literature melting point of pure benzilic acid is 150Â °C; this also indicates that the correct product was isolated. Crude products were formed through crystallization and then recrystallized to obtain pure products. Melting points were taken of each product to prove its identity. Introduction The purpose of the experiment was to create benzilic acid from benzoin. This reaction would occur in a two-step process of oxidation of a ÃŽ ±-hydroxyketone to form the ÃŽ ±-diketone, benzil. Then, a rearrangement would occur to form the ÃŽ ±-hydroxyacid, benzilic acid. Benzoin is an organic compound consisting of an ethylene bridge bound to phenyl groups and with hydroxyl and ketone functional groups. The nitric acid would readily oxidize benzoin to benzil, a diketone, itself would reduced to nitrous acid, which would decompose to oxides of nitrogen and water. Additional water was added after the initial reaction to act as a base and facilitate removal of the hydrogen on the carbon that initially held the hydroxyl functional group. This indicated the removal of NO2, and generated the carbonyl to complete the oxidation. The conversion of benzil, an ÃŽ ±-diketone, into the salt of ÃŽ ±-hydroxyacid by means of base treatment is generally referred to as the benzilic acid rearrangement. As potassium hydroxide was added to benzil, the stable salt, potassium benzilate, was formed. The salt was acidified by the addition of hydrochloric acid until the pH of the solution became acidic and solid benzilic acid precipitated. The ability to be able to produce benzilic acid is vital. Benzilic acid is used in organic synthesis as a base point for preparation of glycolate pharmaceuticals. After the oxidation of benzoin, the melting point characteristic of the product would prove that the benzil was produced. If the melting point range were narrow, it would indicate that few impurities existed in the benzil product. Again, after the rearrangement of benzil, a melting point would be taken to prove that benzilic acid was produced and how pure the final product was. Crystallization through ice bath is important in this process, so that the solid crystal product could be obtained as a precipitate from the reaction solution. After the crystals are obtained, it is important to recrystallize to remove impurities. This allows the most accurate and precise melting point to be taken of the product and also gives the most accurate percent yield of the product, without impurity being weighed into the final product. To avoid errors, it would be best to make sure the benzil produced in the first step had a narrow melting point range. If the benzil contained many impurities, it would most likely produce inaccuracies in the next step of the process when benzil was rearranged to benzilic acid. Procedure 0.30 grams benzoin, 1.5 mL of concentrated nitric acid, and a spin vane were placed into a 5-mL conical vial with an attached air condenser. The mixture was heated in a 70Â °C water bath for approximately 90 minutes, while being stirred, until the red nitrogen oxide gases were no longer present in the air condenser. Afterwards, the mixture was removed from heat and transferred into a beaker that contained 4 mL of ice-cold water. The mixture was cooled in an ice bath and then crystals were collected by vacuum filtration using a Hirsch funnel and rinsed with cold nitric acid. The dried crystals were then recrystallized using 95% ethanol. The pure benzil product was weighed and a melting point was taken. Then, 0.100 grams of pure benzil, 0.30 mL of 95% ethanol, and a spin vane was placed into a 3-mL conical vial with an attached air condenser. The mixture was heated with an aluminum block at 100Â °C, while being stirred, until all the benzil had dissolved. Using a pipet, 0.25 mL of an aqueous potassium hydroxide solution was added drop wise into the conical vial through the air condenser. The mixture was boiled at 110Â °C while being stirred for approximately 15 minutes and the reaction mixture changed from deep blue-black to brown in color. The vial was removed from heat and allowed to cool to room temperature. The mixture was crystallized in an ice bath and the crystals were collected over a Hirsch funnel using vacuum filtration and rinsed with ice-cold 95% ethanol. The solid crystals were transferred to a 10-mL Erlenmeyer flask that contained 3 mL of 70Â °C water. The flask was swirled while 0.50 mL of 1 M hydrochloric acid was added to the flask. With each drop added a white precipitate formed immediately. The solution was checked to have a pH of 2, if it was not, more acid was added to the flask. The mixture was cooled to room temperature and then cooled in an ice bath. The crystals were collected by vacuum filtration using a Hirsch funnel and rinsed with ice-cold water. The pure benzilic acid crystals were weighed and a melting point was obtained.

Child Suffering From An Anxiety Disorder - 882 Words

The client, Janine, is a 28 year old woman suffering from an anxiety disorder. She finds herself constantly worrying about the status of her home, being late to work despite waking up an hour before departure, any possible accidents which may lead to her death, and various scenarios which lead to unfortunate events. She states that she has been married for about 10 years to her college sweetheart. She has no children due to her worries of complications during childbearing and raising children. She explains that she worries whether her children will be considered normal, pretty, or crazy. She describes her marriage as ‘hell’ because she feels like her husband does not support her. She does not mention any other family member besides her husband when asked about her family. Janine holds a job as a tax accountant. She works from 6am to 11pm, and recently she has been bringing her work home. This is due to her thoughts constantly interfering with her concentration on tasks. Recently work has been overwhelming for her since there is no method for reliev ing stress. She states that her husband does not help her with housework, which adds to the stress from work. In fact, she does not see her husband often which prompts her to worry if her husband is having an affair. She is not on medication at the moment; however, she used to take Xanax once every morning for 2 years. As for meals, she states that she only eats quarry, animals hunted for food, and that she does not eat vegetables.Show MoreRelatedSeparation Anxiety As A Medical Condition1143 Words   |  5 Pagescould this be separation anxiety. Separation Anxiety Disorder is a medical condition were children usually ranging in ages from 8 months to 14 years of age have distress when they are away from their parents and/or caregiver. Separation Anxiety can affect a person’s life dramatically by limiting them from engaging in ordinary day-to-day activities. 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