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CASE ANALYSIS

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Case: Apple’s Make-vs.-Buy Decision In a turnaround from a trend in which high-tech (and other) manufacturers have outsourced the making of important components in order to increase efficiency and focus on what they do best, Apple has recently made moves that seem aimed at bringing the design of microchips back in-house. Apple is known for innovative design, and along with that, it tends to keep details of what it makes highly secret. Making chip design a company process, rather than a product to buy, gives Apple more control over the process—and over the secrecy. Of course, the decision to handle its own development has huge implications for human resource management. The company needs all-new labor forecasts, a larger labor force, and an intense to bring in technical talent. Recently, Apple has been hiring many engineers. Products they could be assigned to include microchips that require less power to operate iPhones and iTouch devices, as well as circuitry to improve the graphics displayed in games and videos played on its devices. A top-notch team could, at least in theory, come up with unique improvements that will take rivals by surprise. One way to acquire a lot of talent fast is to acquire entire companies and make them part of Apple. And that’s one move Apple has been making. The company recently acquired P.A. Semi, a start-up company that designs microchips. Its products could be used to run iPhones and iPods. Observers are guessing that chips developed by P.A. Semi could take the place of chips Apple has been buying from Samsung for its iPhone. Samsung had customized the chips to Apple’s specifications. Apple could be worried that a company such as Samsung might intentionally or unintentionally start applying some of Apple’s ideas to chips made for competitors’ products. Another bit of evidence about Apple’s hunt for talent is visible online at the LinkedIn networking site, where members list their job histories. According to the Wall Street Journal, more than 100 people on the site have current job titles at Apple plus past jobs involving microchips. Their prior companies include Intel, Samsung, and Qualcomm. One recent hire was the chief technology officer from Advanced Micro Devices’ graphic products group. Furthermore, it’s possible to evaluate job openings that Apple has been posting. These have included positions that involve expertise in handwriting recognition technology and microchips used in managing displays. Apple has been seen at job fairs, too. Its recruiters participated in a job fair for employees who were being laid off at Spansion, a company that makes memory chips and recently declared bankruptcy. Fundamentals of Human Resource Management, Fourth Edition 153 Assignment 2: Apple’s Make-vs.-Buy Decision Read the case found in Chapter 5 and prepare a three to four (3-4) page response to the following questions: 1. Based on the information given but in your own words, explain what approaches to recruiting might be best suited for Apple’s talent acquisition. 2. Describe the recruiter traits and behaviors that would lead to the most successful recruiting campaign for Apple. 3. Suggest three (3) ways that Apple can effectively plan for HR resources. Rank in order of cost to implement. 4. Discuss the benefits that forecasting provides for Apple. 5. State why you agree or disagree that this is a necessary first step in all HR resource planning. The format of the report is to be as follows: •Typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format. •Use headers for each of the subjects being covered, followed by your response •In addition to the three to four (3-4) pages required, a title page is to be included. The title page is to contain the title of the assignment, your name, the instructor’s name, the course title, and the date. Note: You will

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