Considering the Coronavirus Impact on Apple’s Supply Chain

Considering the Coronavirus Impact on Apple’s Supply Chain

February 7, 2020

The deadly coronavirus that started in Wuhan, China in December of 2019 may negatively impact Apple’s business. China is Apple’s supplier as well as a strong retail market.

Apple has to prepare for disrupted operations in manufacturing, retail businesses and iCloud data centers as Chinese employees and consumers choose to stay away – or are required to – in order to avoid spreading the virus.

This is the first in a series of posts on OM in the News looking at how supply chains are affected by the coronavirus. 


Video Spotlight: How the coronavirus outbreak could affect the economy


This post is based on the IB Times article, Here’s How Coronavirus In China Could Impact Apple’s Business, by Julio Cachila, January 28, 2020, and the YouTube video, How the coronavirus outbreak could affect the economy by CNBC Television, January 22, 2020. Image source: lzf/Getty Images

Discussion Questions:

1. What are the challenges of managing global operations for Apple as a result of the outbreak of coronavirus in China?

Guidance: The challenges include labor unavailability, reduced sales, production halts, product shortages, and new product delays.

2. How does the coronavirus outbreak affect Apple’s supply chain?

Guidance Continue reading

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Thailand Makes Its Move in the Trade War

Thailand Makes Its Move in the Trade War

November 22, 2019

The continuing tariff war between China and the United States has forced companies to reconsider their reliance on Chinese sourcing.  Other countries throughout Southeast Asia are taking advantage of this opportunity to promote their own attractions as a base of operations.

Thailand is long experienced with foreign (in particular, U.S.) investment, but has taken further steps to attract new entrants.  It now takes only 4-1/2 days to set up a business.  Established sectors with long experience in Thailand include automotive and electronics.

New incentives over and above tax relief target “strategic investments toward future sectors” with additional concessions based on workforce and productivity investments.  FDI is already high for Southeast Asia at $227 billion in 2018, but this expanded incentive targets mid-size projects of $32 million + for near-term implementation (plans must be submitted by 2020).

One particular sector of interest is aerospace, which particularly targets U.S. investment.  Besides incentives, Thailand is promoting its central location in the region and 13 free trade agreements.  The commitment goes deeper with active involvement of the government, right up to the Prime Minister, as part of a long term approach to economic growth.

Our Video Spotlight is Continue reading

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