Risk Management and Ethical Analysis

Final Project II: Risk Management and Ethical Analysis
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Final Project II: Risk Management and Ethical Analysis
I. Corporate Overview
Apple is in the computer hardware, computer software, and consumer electronics industries, and therefore, product sales are dictated by emerging technology trends. One of the most advantageous trends for the company has been the proliferation of laptops as hardware devices oriented for daily usage. The new laptops have a better CPU, longer battery life, and flawless camera. Another trend is the expansion of 5G network and high-speed connectivity, which means that future smartphones must have this improved type of connection (Grin, 2018). Moreover, the emergence of IoT solutions means that the future generation of consumer electronics must integrate seamlessly. Other critical trends that Apple must be aware of are the heightened importance of cyber security and the integration of AI into everyday life.
II. (A) Risks and Challenges: WCM (Working Capital Management)
Apple's working capital management has been relatively successful, although its current working capital is much lower than in previous years. The company has seen its networking capital decrease over the years since 2013, peaking in 2020 because of the devastating impacts of Covid-19. Still, Apple can run normal operations without incurring extra debt obligations. Fortunately, Apple's working capital for 2021 was significantly better than last year (-36.143 versus -37.393 billion) (Finbox, 2021). The company needs to work harder towards shoring its ability to conduct day-to-day operations by improving its ability to collect cash from sales quicker than how vendors require payment.
II. (B) Risks and Challenges: Economic and Political
The most significant economic and political risks and challenges Apple faces relate to the ongoing trade wars between America and China. Most of the company's manufacturing plants are in China, and the economic and political conflict between the two countries could disrupt both profitability and operations. For instance, higher tariffs in China threaten the company's continued profitability levels. At the same time, political crackdowns in arbitrary laws such as minimum wage laws could force the abrupt shutting down of Apple's flagship Foxconn factory.
II. (C) Risks and Challenges: Industry-Specific
One industry-specific risk and challenge Apple faces is maintaining an effective global manufacturing and distribution chain while ensuring a steady supply of new products. (Gaus, 2019) Ensuring that all components are sourced, assembled, and distributed in mass-market quantities and on a global scale regularly is a big challenge. There is also the challenge of adjusting to rapid technological change in a highly competitive industry where the winner takes all. There is no assurance that the company can continue staying ahead of the curve, and this presents both a risk and a challenge.
II. (D) Risks and Challenges: Company-Specific
One of the most significant risks and challenges that Apple is produc...