Development of Operational Strategies for Global Companies - Paper Example

1-11 Globalization of Human Capital

With the globalization of businesses, employees are found all over the globe. Globalization of human capital thus refers to the ability of firms to reach out to more employees across the world despite the location of their business. Currently, employers are taking advantage of this fact to access more skilled, experienced and low-cost workers. Through globalization, US based firms such as Apple Inc. can source cheaper and experienced engineers and technicians from China, India and other countries.

Inevitability of Globalization of Human Capital

As companies expand their scope of operation, globalization of human capital becomes more inevitable. It is due to their demands for more skilled and cheap labor forces. Multinationals regularly send some of their staff to oversee their businesses abroad and thus the growth of the globalization.

1-12 Opportunities and Threats Facing the Development of Operational Strategies for Global Companies

From the case of Apple, the main threat facing Apple is its image in the local economy. Americans and even president Obama have a negative attitude towards Apple whom they view as less concerned about the local economy. The case illustrates that Apple outsources most of its workforce. The firm employs about 700,000 engineers from Europe and Asia and another 20,000 foreigners. The company employs approximately 43,000 Americans only. Therefore the company does not participate in growing the domestic economy and curbing the rates of unemployment in the country. Further, most of the final Apple products are sold outside the United States. However, according to the company, the strategies to outsource the manufacture of the Apple products to China is a marketing strategy since the made in USA products do not sell as compared to those from China and other Asian countries.

1-13 Apples Obligation

Apple's only obligation is to develop the best possible products and has no responsibility to solve the problems affecting the United States. From this case, the country is facing problems relating to the high rates of unemployment. As a local company, Apple should have employed the local people to reduce this issue. The executive notes that this is not their responsibility and that they are into the business to increase their profits and maximize their wealth. However, by producing quality products for its worldwide consumers and growing their sales, they would have contributed to the economy of their country by offering quality and low-cost products into the market. Therefore, the statements of the executive are justifiable.

1-14 Stakeholders

The stakeholders, in this case, are the owners of the companies that are going global. This is the people who have invested in the business and have a critical interest in their wealth. Stakeholders have an obligation in their business as they are interested in the growth of their shareholding in the firm. They should, therefore, take a critical step that would ensure that they protect the business from any undue influence such as the negative influences of the state. If the company seeks to make drastic changes that are capital intensive, the stakeholders will fund the firm by making contributions. Further, they must ensure that the business operates and is managed by its best interests and renders a profit.

1-17 Effects of the Media Coverage

Even though Apple and Foxconn had taken the right steps about its human resource management, the negative publicity perpetrated by the media has affected the reputation and image of the two companies. The media have portrayed the companies as unfriendly to its employees and that it does not treat them well. They have shown that even though the companies are highly profitable, they still under pay their staff. Further, the firms mistreat their employees by making them work long hours under unfavorable terms. The media has, therefore, demeans the image of the business in its ability to go global and source more global employees.