Can American Society Demand that Apple create more factory jobs in the U.S.?

Now that Apple has become at least temporarily the most valuable company in the U.S and the American workers are hurting it is not surprising that the press is focusing on Apple outsourcing all it manufacturing overseas. This article brings into focus the question that we will discuss in session 4 of the class, namely what is or should be the fundamental objective of a particular firm. Who should decided this? It is possible to have many different fundamental objectives. If “yes”, how and who decides what trade-offs are to be be made.

Apple, America, and a Squeezed Middle Class: How U.S. Lost Out on iPhone Work in NY Times.

Fundamental Objective for Founder of HTC is making unique products rather than margin

Chou [CEO of HTC] said he cares more about making unique products than making good profit margins. He listens and acts quickly. Often, when Beats co-founder and music producer Jimmy Iovine calls with an idea, Chou will have sent off an e-mail about it before the conversation is over, Iovine said. Chou said he tests the music himself. A $300 million controlling stake in Beats Electronics LLC, the headphones maker backed by rapper Dr. Dre, was part of a strategy to lure music enthusiasts with a marketing plan that included bringing singer Lady Gaga to an Oct. 6 audio party in London to release the HTC Sensation XL, its first handset featuring Beats audio technology and headphones.

Source: Bloomberg BusinessWeek

Lehman Brothers’ did not Walk to Talk of its Mission Statement

BRW reports:  “Lehman Brothers’ mission statement nodded in all the right directions. It told employees and investors that

We are one firm, defined by our unwavering commitment to our clients, our shareholders, and each other. Our mission is to build unrivalled partnerships with, and value for, our clients, through knowledge, creativity, and dedication of our people, leading to superior returns to our shareholders.

However, the investment bank did exactly the opposite, gorging on low-quality mortgages and nearly felling the global financial system. Rather than ‘set and forget’,  [mission statements] should be part of a conversation between staff and management.”

(BRW August 26-October 6, 2010, p. 78)

Richard Branson’s Fundamental Objective

The Financial Times posed twenty questions to Richard Branson. Here are the two important ones that touch upon the idea of a fundamental objective.

How important is money?
My priority is learning and trying to improve the world – not being rich.

How do you want to be remembered?
That I have made a difference.

Read full interview.