External and Internal Analysis of Foxconn
External and Internal Analysis of Foxconn
Introduction
Foxconn, or Hon Hai Precision Industry Co, was founded 37 years ago in Taiwan by Terry Gou. The company initially started as a local computer component manufacturer. Over the past decades, Foxconn had been continuously growing to become the world’s largest electronic components manufacturers with the consolidated revenue of 59.32 billion US dollars in 2010.
As the largest electronic manufactures, Foxconn provides electronic components to major electronic devices manufacturers across the world. Its clients include Apple, Amazon, Sony, Nintendo, Microsoft, Dell and HP. Since 2011, Foxconn has been expanding its operations in Brazil to increase its supply of Apple products. It has also announced that the company will increase the wage of employees working at the Apple manufacturing sites in China by 16 to 25 percent and opened itself up for further inspection.
Broad Environment
Sociocultural: During the course of a society transition all over the global developing countries, the current working class will grow and evolve into the middle class. Those workers who, once forced by circumstance to stand for fourteen hours a day, are the workers that no longer need or want what seemly meager financial benefits employer has to offer. In the past year, Foxconn’s image has been tarnished by reports of labor protests and employee suicides. These were the result of harsh working conditions, unfair wages and a lack of communication with the media. The sociocultural trend has driven Foxconn to improve its working surroundings and its impeccable image in society.
Political: Foxconn’s manufacture sites are located in developing countries. These countries have the trend to change in laws and regulations frequently. It therefore becomes important for the company to foresee the trend and be ready to adjust its business when necessary. The purchasing countries are too sensitive to the work conditions of the manufacturing
Introduction
Foxconn, or Hon Hai Precision Industry Co, was founded 37 years ago in Taiwan by Terry Gou. The company initially started as a local computer component manufacturer. Over the past decades, Foxconn had been continuously growing to become the world’s largest electronic components manufacturers with the consolidated revenue of 59.32 billion US dollars in 2010.
As the largest electronic manufactures, Foxconn provides electronic components to major electronic devices manufacturers across the world. Its clients include Apple, Amazon, Sony, Nintendo, Microsoft, Dell and HP. Since 2011, Foxconn has been expanding its operations in Brazil to increase its supply of Apple products. It has also announced that the company will increase the wage of employees working at the Apple manufacturing sites in China by 16 to 25 percent and opened itself up for further inspection.
Broad Environment
Sociocultural: During the course of a society transition all over the global developing countries, the current working class will grow and evolve into the middle class. Those workers who, once forced by circumstance to stand for fourteen hours a day, are the workers that no longer need or want what seemly meager financial benefits employer has to offer. In the past year, Foxconn’s image has been tarnished by reports of labor protests and employee suicides. These were the result of harsh working conditions, unfair wages and a lack of communication with the media. The sociocultural trend has driven Foxconn to improve its working surroundings and its impeccable image in society.
Political: Foxconn’s manufacture sites are located in developing countries. These countries have the trend to change in laws and regulations frequently. It therefore becomes important for the company to foresee the trend and be ready to adjust its business when necessary. The purchasing countries are too sensitive to the work conditions of the manufacturing
Cited: “Foxconn International Hldgs .” Bloomberg . BusinessWeek, 2012. Web. 13 Mar. 2012. <http://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=2038:HK>.