. Analyze supply chains and working capital management:
• Describe the company’s supply chain management strategy.
• Analyze the financing policies used by the MNC for its current assets.
• Analyze the goals of the company’s inventory management.
2. Examine multinational financial management:
• Discuss recent stock distributions through dividends or repurchases.
• Enumerate reasons why the MNC decided to go global.
• Illustrate any significant transactions the MNC has had between countries with different currencies.
• Discuss challenges the MNC faces with floating exchange rates and its management strategies.
• Analyze the relationships the MNC has with inflation, interest rates, and exchange rates.
Sample Answer
Supply Chain and Working Capital Management
Supply Chain Management Strategy
Apple’s strategy is built on vertical integration and outsourced manufacturing.
Vertical Integration: Apple designs its own silicon (A-series and M-series chips), operating systems, and software. This gives them total control over the user experience and component specifications.
Vertical Integration: Apple designs its own silicon (A-series and M-series chips), operating systems, and software. This gives them total control over the user experience and component specifications.
Outsourced Manufacturing: While Apple owns the designs, it outsources the assembly to partners like Foxconn and Pegatron. This keeps Apple "asset-light," avoiding the costs of owning factories while maintaining high production scalability.
Geographic Diversification: As of 2025, Apple is aggressively pursuing a "China Plus One" strategy, shifting significant production to India (aiming for 25% of iPhone production by 2027) and Vietnam to mitigate geopolitical risks and tariffs.