You have just been hired as Apple’s SVP of Operations, replacing Sabih Khan. On your first day on the job, your boss, Chief Operations Officer Jeff Williams, walks into your office and places this article on your desk. The article discusses the most important supply chain ethics and Jeff is eager to see how these ethics can and should be applied to Apple’s vast supply chain. They have already made significant progress in this area. However, they are still a target for extensive criticism. In particular, Apple’s relationships with manufacturers in China have been particularly challenging.

Jeff has been trying to manage this challenge for years: On the one hand, the Chinese manufacturers do a good job for a very low cost. On the other hand, they present many ethical dilemmas and expose Apple to criticism. Now that he has read the ethics article, he wants to get your fresh perspective on this decision. Jeff wants to know: Should we stay in China? Or should we leave? If we stay, what are some things we can be doing to address some of these ethical challenges? If we leave, what criteria should we look at for where to relocate?

In the end, the final decision would rest with you. Based on your knowledge of Operations Management and Strategy, and in particular your knowledge of Supply Chain Management, Location Strategy, and Sustainability, what should Apple do?

Regardless of your decision, it must be presented to the CEO in a 4 pages paper, in 12 point, Times New Roman font, double spaced,