Smartphone and Globalization

This study discusses the impact of globalization on the smartphone industry, with a focus on Apple's HR response to paradoxes. It covers the manufacturing process, globalization impacts, and future changes. The HR response section discusses Apple's non-egalitarian approach to deploying star talent and its efforts to reduce cultural friction. The study concludes with recommendations for Apple's HRM and implications for end-users.

Running head: SMARTPHONE AND GLOBALIZATION
International Human Resource Management
[Smartphone]
Name of the student:
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Executive summary
The study is aimed at discussing about the smartphones. The discussion covers a brief overview
of the smartphone industry. It is followed by how globalization has impacted the industry. It also
covers a brief of the Apple Company and how it has managed the impact of globalization. It
specifically covers the paradoxes and HR response in regards to Apple. In the end, it speaks of
the future changes and the impacts on the smartphone industry.

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Table of Contents
1. Product introduction....................................................................................................................3
2. Globalization impact....................................................................................................................3
3. Paradoxes and HR response.........................................................................................................4
3.1 HR response............................................................................................................................6
4. Future changes and impact..........................................................................................................7
References........................................................................................................................................9

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1. Product introduction
The chosen product is the "Smartphone". It has a significant meaning to it for a reason
that most of the manufacturing nowadays is being done alone in China (Lee, Kim & Lim, 2016).
During the times when simpler phones were being used, the scenario was not the same. However,
the scenarios have changed and so the manufacturing strategies like manufacturing in the
offshore locations (Lin & Chen, 2015). Outsourcing has boosted the manufacturing efficiency
and has enlarged the possibility to meet the rising demands for a mass production.
Manufacturing of smartphones goes through six different steps. The first step is
‘making of prototype’ when the idea is generated in the board meeting and then an affirmation is
passed to the R&D lab. The first thing they do is considering the aesthetics. Once the model is
ready, it is being passed to several people to get their opinions. Once one of the models is
approved, the hardware part is worked upon. It is then handed over to the group of electronic
engineers who take care of processor, memory, battery, display, cameras and others aspects of a
phone. It follows an approval on the product from the concerned authorities (Zink et al., 2014).
Software installation is the next step during which the software team checks for the
compatibility of the software. Before the designs process, the product is rigorously checked for a
number of times to detect whether any further work is required. It is followed by a mass
production of phones. Few of the components are outsourced where the original equipment
manufacturers (OEM) follow the manufacturing instructions of the Smartphone brand. When the
product has met all the parameters of satisfaction, it is then sent for the packaging. The last
stage is the shipment through which products are distributed to the global retailers. Product
marketing is also the part of the entire phone making journey (Suh & Kim, 2015).
Few of the most famous independently operating phone brands are Apple, Samsung,
Lenovo, Sony, LG, Asus, Xiomi, Oppo, Huawei and others. Motorola is now being acquired by
Lenovo whereas Nokia by Microsoft (Singh, 2015).
2. Globalization impact
The phone features are adjusted to meet the needs and demands of people belonging to the
different regions. Phone manufacturers are not now just confined to the domestic circuits but

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have moved to the global countries. International treaties for addressing environmental impacts
such as air pollution, wastes, resource depletion and climate change are also the impact of
globalization. Multinational companies see environmental impacts as an opportunity to constantly
improve their worldwide reputation (Epstein, 2018). They get recognized for their work by the
governments, NGOs, public bodies and the people.
The inflow of raw materials from various parts of the world is also an impact of
globalization. Manufacturers can also go for the global suppliers who are certified from
internationally acclaimed bodies (Kannan, de Sousa Jabbour & Jabbour, 2014). Globalization is
helping to access the likes of technologies, raw materials and labor force in the various parts of
the world. Strategic alliances by means of merger & acquisition (M&A), joint venturing, strategic
partnership and outsourcing are the globalization impacts (Choi & Contractor, 2016). For
example, Apple manufactures its phones in two phases such as assembling and manufacturing.
Most of the assembling is done in China. Foxconn in China has been its longest running partner.
On the other hand, components of phones are made from specialists in the various parts of the
world. As for example, Camera is manufactured by Sony in Japan and dozens of other countries
in the world whereas flash memory, battery and A-series processor are manufactured by Samsung
in South Korea and more other locations in the world (Khan, Alam & Alam, 2015). The reason
for such arrangements is to access the core competency of globalized companies. It shows how
Apple and the likes are getting benefitted from going global.
3. Paradoxes and HR response
Apple is one of the most widely recognized mobile phone brands in the world. The two
globalization paradoxes that the company as of now has faced are as follows:
1. International trading
2. Understanding the culture
1. International trading:
Apple like other manufacturers outsources manufacturing to take the advantage of
reduced labor cost and improve the efficiency by facilitating a mass production. Until recently,
the decision has paid off and had constantly fulfilled the needs for a mass production. It also

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helped Apple in avoiding the excessive logistics costs needed to import the manufactured
components from China. They did it by assembling the phones in China itself (Pun et al., 2016).
This is indeed a remarkable achievement that customers are paying huge money for a
prime product which is manufactured and assembled in China. Customers have liked it for its
premium qualities. It was truly a paradox for Apple while they intended to enter China for both
manufacturing and assembling. However, the way Apple has managed it so far is just remarkable.
The ability to outsource manufacturing and assembling to a number of countries and controlling
it effectively just speak of its intelligence Apple has delivered so far (Serra & Kunc, 2015).
Customers in India are different than those in China in many regards. Indian customers
are more price sensitive than the Chinese. A large population of Indian customers wants the
budget phones. This is also why budget phones from Lenovo, Xiaomi and Vivo have done
stupendously well in recent times. These brands had offered specs and features which premium
brands would offer at a relatively higher cost. Few premium brands have tried to occupy the mid-
budget segment; however, they failed to create the similar impact as that of budget phones in
terms of specs and features. Premium brands such as Samsung and Sony witnessed the huge sales
drop in recent times and were the brands largely affected by the changing trend (Sujata et al.,
2015). Apple is the one exception of premium brands which was able to manage its sales. More
customers than ever are now buying the Apple phones. They respond to every latest flagship
offering from Apple (Siddiqui & Mishra, 2016). It is just amazing how Apple being highly priced
has managed to make its own category. Customers are finding it worth a buy.
2. Understanding the culture:
The way Apple deals with the international culture it appears as if it does not work on it.
However, it is not true. It does not adapt to customers but rather customers do it. Apple is not on
the social media. It also does not advertise rather its customers do it for Apple. Apple does not
believe in customizing the features and specs to suit the global needs. It rather comes as ‘one size
fits for all’ approach. Despite these hard to believe facts, Apple convincingly manages to behave
locally. The customer service protocol is different for different regions and suits the local
customs. In fact, the building layout is also designed in a way that it appeals to the architectural
culture of the local. Once a location is finalized, they ensure every bit and work hard to make the

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people feel local. The standardization approach allows Apple to launch its phones in so many
regions. Apple’s phones are now available in more than 115 countries (Gehani, 2016).
Apple's e-commerce website does also create the same impact throughout the world. The
only changes being made to it is the inclusion of a feature which can customize the contents of
the different regional languages. Apple creates the demands and solidifies its image this way
only. They understand the culture so beautifully that people wait in line to embrace this culture
when they can just manage it from online. The culture is to bring uniqueness in terms of designs,
qualities and creativity (Gupta & Dhillon, 2014).
3.1 HR response
The HRM at Apple has different working philosophy than the others in context to the
retention of its start talents. Normally, unintentional egalitarianism is followed in other
companies which mean using the start talent in every possible zone. On the other hand, Apple
follows a non-egalitarian method by which the HRM deploys its star talent at the most critical
works. A close to 95% of such cases is fulfilled by A-level talent which also affects the success
rate of its business strategies and the execution (Chen & Ann, 2016). Hence, task distribution
done in such a way ensures that the employees have little or less challenge in coping up with their
tasks. According to Chen & Ann (2016), firms that can appropriately utilize its workforce will
have a fewer complaints only coming from employees. The rate of attrition will also reduce.
The HRM at apple did recognize the importance to reduce or destroy a negative publicity
of the reward system. The HRM did not reward an individual with a unique performance
appraisal until and unless the team has performed (Khan, Alam & Alam, 2015). By doing so, the
HRM elaborates on the importance of having the ‘teamwork’.
Organizational drag is a chronic friction which can potentially impact the productivity.
Various factors can act as the friction. One of such factors is ‘cultural diversity’ which can also
be intolerant to people. Apple has its stores in many countries supported by both local and the
migrant professionals. Those migrant workers can be racially assaulted on a number of times
from the native people. After a number of times of constant racist activities, it becomes a chronic
friction leading the migrant workers to look for other options (Ozdemir, 2015). Apple has

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successfully managed the cultural differences by encouraging employees for doing their best and
not creating any distraction for others.
Apple is also working on virtual reality plans. The aim is to provide an enhanced camera
experience to customers. The HRM was able to identify that the trend is picking up and also
being adopted by some big names in the industry such as Samsung, Facebook and Google. It
responded to it and started to hire some ex-professionals of Microsoft. Fresh recruitments were
also being done to have a sufficient number of skilled professionals. Ex-professionals of
Microsoft were experienced in working with the virtual reality (Fortune, 2018).
4. Future changes and impact
Future prediction:
Augmented Reality (AR) is one of the futures for smartphones which would enable
customers to know the exact information of anything they select in real-time. They can do it by
pointing their camera towards the thing they want to know about. Flexible screens will also be the
future which would allow customers to fold and unfold multiple screens at their wish. Organic
Light-Emitting Diode (OLED) technology will be making this thing possible. In built-Digital
Light Projection (DLP) will add more features to the smartphones. TV screens will no longer be
required to play games. Only a flat surface will do the thing. Seamless Voice Control, 3D Screens
and Holograms will also be the future of smartphones.
Globalization will continue to impact the manufacturers and the smartphone brands.
Apple would probably be shifting its manufacturing facilities to India due to reducing sales and
incrementing labor cost in China.
The HRM will come with effective strategies to attract and retain the talents to maintain a
diverse workforce. A lot of emphasis would be on productivity rather on promoting the racism.
Work-engagement will become a prime focus.
Recommendations:
The HRM at Apple needs to follow the footsteps of successful companies which have
effectively maintained its talents. The one area needed to work upon is to reduce the racism. It

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can follow “Netflix” for how it manages the culturally diverse workforce. Netflix promotes to act
in the best interest of the firm.
Implications:
The end-users will get to see a lot of technological advancements some of which can
really be a delighting experience to them. AR, Flexible Screens, In-Built Projector, Holograms &
3D Screens and Flawless Voice Control would be a few changes to watch out for.

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