Global Corporate Strategy

GLOBAL CORPORATE STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Question 1: Innovation by Apple and factor endowment as well as business strategy of Apple....3
Question 2 Global and local demand...............................................................................................7
Question 3: Evaluation of the senior management and CSR practices of MNC's...........................8
Question 4........................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Figure 1Apple product sales........................................................................................................................5

INTRODUCTION
Global strategy is means a course of action that is chosen by an entity for competing and
expanding its business into global market. It refers to the plan that an enterprise needs to develop
target growth across is its borders. It acts as the strategic guide for the corporation towards
globalization. Such connected world, provides business revenue that need not be confined by the
borders. Company employs the global business strategy for recapping rewards of the trading in
the worldwide market. The present report is based on Apple, an American multinational
corporation headquartered in Cupertino, California which designs, sells, develops consumer
electronics, online services and computer software. The company's online services of this
company involves iTunes stores, Mac App, Apple music, iOS store, iCloud etc. Furthermore, it
the study provides deeper insights in relation to the strategies adopted by the company at a global
level with difference between open and the closed innovation. Moreover, the report also
highlights the benefits and the limitation of an internationalization and the CSR practices
adopted by the company with evaluation of the role of management authorities.
Question 1: Innovation by Apple and factor endowment as well as
business strategy of Apple
Innovation is the one of the 21st century buzzing word as most of the business firms
whether they are small, large or medium in size are focusing on innovation of their business.
Some business firms innovate their product line and some innovate their business operations. In
past few years it is observed that those firms whose product are not innovated legged behind in
the competition and failed to survive in the market. For example Nokia once had leading position
in the mobile sales but it does not innovate its operating system and due to this reason its
products sale decline (Heracleous and Papachroni., 2016). Ultimately, market was takeover by
another players. Kodak camera is another example of business failure where main reason behind
business failure was non innovation of the business operations.
There are two types of innovation namely open and closed innovation, as both are
opposite to each other. Open innovation refers to the situation where business firm does not
depended on internal resources like technology, infrastructure and human resources. In this sort
of innovation business firms usually make use of both internal and external resources so as to do

innovation in best manner. As part of external resources firm take feedback from the customer,
purchase technology from other firm and hire experts that acts as freelancer or working in any
other business firm. It can be said that such kind of innovation is highly used by the firm. This is
because business firm can never have all of the required resources and intellectual property at the
workplace. It is the open innovation that provide access to the business firm to outside resources
and conduct innovation in better manner. Joint venture many times is determined by the business
firms to innovate their existing product line and increase market share (Pisano, 2015). Thus, it
can be said that there is huge importance of the open innovation in today era.
Closed innovation is the inverse of the open innovation and under this one does not make
use of external resources to do innovation in the business. In this company prepare alternatives
and evaluate all of them. After evaluation of alternatives best one is selected by the company. In
this regard multiple tools and techniques are used by the business firms and best one is chosen by
the manager. There is difference between open and closed innovation. One of the major
differences is that in case of closed innovation idea, inventions and investigations as well as
development required to place a product in the market. Usually, in close innovation business
firms share technology with each other. This is done because firm is specialized in the specific
technology and in same way other firm is specialized in another technology. Thus, by sharing
technology one obtain new infrastructure that promote business growth in the future time period.
Apple is following strategy of the closed innovation in its business. Under this strategy
company basically using its internal resources. Over last couple of year’s firm do lots of
innovation with limited resources. Company has expert intellectuals which are highly talented
and paid professionals (Gehani, 2016). Earning of higher amount of profit assist business firm in
making huge investment on its innovation project. Hence, it can be said that firm already have
excellent advanced technology infrastructure with high standard intellectual property and due to
this reason company is doing closed innovation.
Factor endowment is the one of the most important term that is used by the business
firms. In context of Apple this thing apply as it can be seen that on large scale firm produce it
Smartphone and I pods in the China. It can be observed that labor cost in China is 10 to 60 USD
cheaper then USA. Moreover, Apple get more workforce easily in China then USA. When
Apple needed 8700 engineers to look after workforce of size 200000 that are involved in making